Cigna profits rise as earnings fall short 

Bloomfield-based Cigna reported profits of $4.14 billion, or $3.51 per diluted share, in the fourth quarter of 2020, compared to $977 million, or $4.31 per diluted share, in the same period of 2019.
 
The results did not meet Wall Street expectations. Zacks Investment Research surveyed six analysts and said it expected fourth-quarter earnings of $3.66 per share.
 
Cigna recognized a gain of $4.2 billion pre-tax due to the sale of New York Life in the fourth quarter. 
 
Fourth-quarter revenue was reported at $41.71 billion, surpassing Street forecasts; Zacks expected $40 billion.
 
“Our fourth quarter results were in line with expectations, as we continued to make investments in our customers, capabilities, and co-workers — all while covering elevated COVID-related costs,” Cigna President and CEO David Cordani said. 
 
Total revenues for 2020 were reported at $160.4 billion, with shareholders’ net income for the year totaling $8.5 billion, or $22.96 per share. Adjusted income from operations in 2020 was $6.8 billion, or $18.45 per share
 
Cigna’s earnings report also highlighted changes in its customer base in 2020, with pharmacy customers growing by 13.2 million in 2020 to 89.2 million, “driven by strong new health plan sales.”
 
The company’s medical customers dropped by 472,000 to 16.7 million at the end of 2020.
 
Cigna said the drop was a result of “increased disenrollment resulting from the economic impacts of the COVID-19 pandemic, and in the fourth quarter, the loss of approximately 240,000 customers associated with one client, as expected. These declines were partially offset by growth in the Select segment and Medicare Advantage.”