Beating analysts’ expectations, the Cigna Group reported strong profits of $1 billion and revenues of $51.1 billion for the fourth quarter of 2023. Fourth quarter revenues were up 12% from $45.8 billion in the prior year quarter. Growth was particularly strong at Cigna Healthcare. Cigna also reported full year 2023 profits of $5.2 billion and revenues of $195.3 billion. As a result of these strong earnings, Cigna announced a 14% increase in the quarterly cash dividend.
Cigna attributed its increased profits primarily to a lower Medical Cost Ratio (“MCR”) of 82.2% for the year and 81.3% for the fourth quarter. A health insurer’s MCR represents the insurer’s spending on claims compared with its earnings from premiums. When health insurers, such as Cigna Healthcare, deny providers’ claims for reimbursement, they increase their profits. Cigna’s MCR is one of the lowest in the industry.
In a press release announcing its earnings, Cigna Chairman and CEO stated: “2023 was another very strong year for our company with consistent execution and sustained growth.”
Cigna’s press release announcing its fourth quarter and full year 2023 earnings is linked here.