By the numbers
Cigna’s internet revenue climbed 6% 12 months over 12 months within the second quarter
Income elevated 5% because the insurer coated extra members
The medical loss ratio fell from the prior-year interval due partially to decrease utilization of medical companies
Cigna reported internet revenue elevated 6% 12 months over 12 months to $1.6 billion throughout the second quarter as fewer individuals have been admitted to the hospital, had fewer surgical procedures and visited the emergency room much less.
The Connecticut-based insurer mentioned medical prices for each COVID-19 and non-COVID-19 care have been decrease than projected. The insurer’s medical loss ratio, an necessary measure of how a lot is spent on medical care, fell to 80.7% for the second quarter. Analysts mentioned worth hikes helped the MLR, too.
On account of the quarterly efficiency, Cigna raised monetary targets for the 12 months for income and revenue from operations.
Cigna’s second quarter efficiency beat Wall Road expectations. Shares have been buying and selling up greater than 3% following the Thursday morning name with traders.
One analyst characterised the quarter as “robust broad-based” outcomes, in keeping with a word from SVB Securities.
Medical prices have been well-controlled within the quarter, SVB Securities mentioned, and added that the MLR was “driving the majority of the outperformance.”
Complete medical membership elevated 4% to 17.8 million members. The expansion was pushed by industrial membership as Cigna insured fewer individuals in government-sponsored applications like Medicare Benefit.
Though Cigna reported decrease utilization for the quarter, preventative screenings have been reportedly in keeping with 2019 pre-pandemic developments.