Beating analysts’ expectations, the Cigna Group reported strong profits of $1.4 billion and revenues of $49 billion for the third quarter of 2023. Through the first nine months of the year, Cigna reported $4.1 billion in profit and $144.2 billion in revenue.
Cigna’s revenue growth was particularly strong in its health insurance business, Cigna Healthcare. Cigna Healthcare’s third quarter revenues of $12.8 billion were up 14% year-over-year. Cigna’s third quarter profits were driven, in part, by a low medical cost ratio (“MCR”) of 80.5%, down from 80.8% in the prior year quarter. Cigna attributed the decrease in its MCR to “affordability initiatives,” meaning lower payments to providers. A health insurer’s MCR represents the insurer’s spending on claims compared with its earnings from premiums. Cigna’s MCR is one of the lowest in the industry.
Cigna Healthcare’s medical membership increased 9% from December 31, 2022 to 19.6 million members, primarily in its commercial, individual, and Medicare Advantage products.
As a result of its strong earnings, Cigna increased its annual profit forecast to at least $24.75 a share.
Cigna’s press release announcing its earnings is linked here.