Cigna Corp increased its 2019 profit target after reporting its third quarter earnings, which showed to be higher than predicted. The rise in profit was attributed to a jump in revenue from the company s health insurance unit and Express Scripts pharmacy benefits business.

Cigna Corp s US health insurance business revenue rose to almost 12%, or $9.15 billion in the third quarter as the company added even more customers and raised premiums on health plans that were sold to big employers and self-insured customers. Overall, it brought in $24.88 billion revenue.

The company adjusted its 2019 forecast, from the range $16.60 to $16.90, to $16.80 to $17.00 per share. Analysts predicted a $16.81 per share.

The medical care ratio, or the medical claims versus income from premiums, was 80.5% in the third quarter, beating the 80.86% estimate.

Net income surged to $5.57 per share, or $1.35 billion, from $3.14 per share, or $722 million the previous year.

In total Cigna earned $4.54 per share excluding items, beating the average estimate of analysts $4.36, according to IBES data from Refinitiv.

Cigna Corp s total revenue tripled to $38.56 billion.

http://lexatrade.com/news/cigna-reports-higher-than-predicted-third-quarter-earnings-raises-2019-profit-estimate

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Cigna reports higher-than-predicted third quarter earnings, raises 2019 profit estimate