Cigna posted lower net income in the fourth quarter of fiscal year 2017, but grew full-year profits by 19.8 percent year over year.
Here are four things to know about Cigna's results.
1. Cigna grew revenues by 5.9 percent to $10.5 billion in the fourth quarter ended Dec. 31. That's compared to $9.9 billion recorded in the same period a year prior. Cigna attributed the increase to membership growth across its commercial insurance segments and a 6.8 percent uptick in premiums.
2. At the same time, Cigna saw benefits and expenses increase in the fourth quarter of 2017 to $9.8 billion, up 4.6 percent from $9.3 billion in the same period a year before. Year-over-year growth in medical costs and operating expenses contributed to the increase.
3. Cigna saw profits dip 30.4 percent in the fourth quarter of 2017 to $266 million, compared to $382 million reported in the same period a year prior. Despite a decline in profits in the fourth quarter, Cigna saw full-year 2017 net income grow 19.8 percent to $2.2 billion. That's up from $1.9 billion in fiscal year 2016.
4. Due to net financial benefits of U.S. tax reform, Cigna raised minimum wage for its U.S. employees to $16 per hour and gave salary increases to employees above $16 an hour. Cigna anticipates the move will total $15 million-plus.
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