Health insurer Cigna saw its earnings slip during the second quarter of 2021 as claims and health benefit utilization rates made an unexpectedly sharp rebound following the height of the COVID-19 pandemic last year.
The Bloomfield-based conglomerate reported net income of $1.46 billion, or $4.25 per share, down from $1.75 billion, or $4.73 per share, in the corresponding period one year prior. Total revenues rose from $39.26 billion in the second quarter of 2020 to $43.13 billion in the April-June period of 2021, fueled mainly by strong performance from Evernorth, Cigna’s health services arm.
During a conference call with analysts Thursday, President and CEO David Cordani attributed the quarter-to-quarter decline in profits to the near-historic surge in Americans seeking out medical care after keeping away from doctors’ offices and hospitals for more than a year. The company is also bearing the direct cost of COVID-19 testing and treatment efforts, Cordani said.
Still, Cigna saw some upside during the second quarter, including favorable net investment income and the price effect of the repeal of the health insurance industry tax.
Cordani told analysts the company remains well-positioned, pointing to growth across Cigna’s business segments. He also said Cigna would continue patient-centered initiatives begun before the pandemic, including expanded mental health resources and programs aimed at steering customers away from prohibitively expensive name brand drugs and toward more affordable biosimilars.
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