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Print FormatHealth insurer Cigna boosts forecast as COVID costs recede
By Mrinalika Roy
Shares of the company shot up nearly 5% to
Health insurers came under pressure from volatile medical costs during the pandemic, but some of that was offset by people postponing non-urgent medical procedures.
"We are not seeing any acuity spikes or pent-up demand
emerge for things like blood screenings, preventive exams,
mammograms, colonoscopy," Chief Financial Officer
"Non-COVID shaping up very much in line with what we had been expecting this year."
A drop in COVID testing and treatment costs also helped Cigna (CI) report a lower-than-expected medical care ratio (MCR), the amount spent on medical claims versus income from premiums.
Total medical customers of its health plans rose to 17.8 million in the quarter, boosted by growth in U.S. commercial membership.
"Cigna (CI) turned in better-than-anticipated operating results
for Q1 that allowed management to boost its 2022 outlook a bit,
primarily due to strength in its medical insurance operations
where its commercial operations really shined for the first time
since the pandemic began," said Morningstar analyst
The company moderately raised its forecast for 2022 adjusted
profit from operations to at least
"Company offers attractive value, especially if
COVID-related pressures continue to improve in 2022,"
Oppenheimer analyst
Excluding special items, Cigna's (CI) income from operations was
