Cigna’s growth plan for Evernorth and health pushes earnings to $1.6 billion

Cigna on Thursday reported quarterly earnings of $1.6 billion thanks to rising health plan membership and continued growth of the company’s Evernorth health services business.

Net income rose to $1.6 billion, or $4.90 per share, in the second quarter compared with $1.5 billion, or $4.25 per share, in last year’s second quarter. Revenue, meanwhile, rose nearly 6% to $45.5 billion compared to $43.1 billion in the prior period.

Cigna’s earnings and growing customer base contributed to the company’s decision to again raise its financial outlook for the remainder of 2022. Cigna now says that full-year 2022 consolidated adjusted revenue “is projected to be at least $7.165 billion, or at least $22.90 per share,” which is 30 cents more than a previous forecast, the company disclosed Thursday.

“Our focus on our customers, patients and clients continues to resonate in the market as our strong results and positive momentum reinforce the value we deliver,” said David Cordani, president and CEO. “Evernorth and Cigna Healthcare continue to drive our strong performance, and our focus on continuous innovation positions us for sustained, differentiated growth.”

Cigna said its total medical customer base grew by 725,000 customers to 17.8 million “led by growth in the U.S. fee-based customer business relationship,” the health insurer said in its earnings report released Thursday. Growth in commercial activity helped offset the decline in US government health clients, “including the divestiture of the Medicaid business.”

Meanwhile, the portfolio of businesses under Evernorth, which includes pharmacy benefit manager Cigna that it bought with its 2018 acquisition of Express Scripts, continues to perform well. Adjusted second-quarter revenue rose 7 percent to $34.8 billion due to growth in pharmacy services and in particular specialty pharmacies, the company said.