Cigna (NYSE:CI) gained Friday after beating top- and bottom-line estimates for its latest quarter and raising its full-year forecast. Cigna’s results got a boost from lower medical costs and strong growth at its health insurance unit.
Cigna Friday said net income increased more than 6% to $1.267 billion, or $4.24 per share, compared to $1.197 billion, or $3.73 per share, in the first quarter of 2022. Revenues, meanwhile, also rose by 6% to $46.5 billion compared to $44 billion a yaer ago as the company added new business across its portfolio of medical and pharmacy benefits and Evernorth Health Services.
“(Cigna’s) total medical customer base at first quarter 2023 grew 8% to 19.5 million, an increase of 1.5 million customers from December 31, 2022, primarily driven by growth in fee-based customers as well as growth in Individual and Medicare Advantage customers,” the company announced in its first quarter earnings report.
In particular, Cigna doubled the number of customers buying individual coverage under the Affordable Care Act, also known as Obamacare, to 786,000 compared to 337,000 at the end of 2022. Cigna also reported 10% growth in the number of seniors buying its Medicare Advantage plans to 584,000 compared to 529,000 at the end of 2022.
CI shares gained $17.08, or 7%, to $260.77.
