Cigna Corporation (NYSE: CI) today reported second quarter 2016 results with solid performance in the Global Health Care segment and lower than expected results in the Group Disability & Life segment.
Total revenues in the quarter were $10.0 billion, an increase of 5% over second quarter 2015, driven by continued growth in Cigna’s targeted customer segments.
For the second quarter of 2016, shareholders’ net income was $510 million, or $1.97 per share, compared with $588 million, or $2.26 per share, for the second quarter of 2015. Second quarter 2016 shareholders’ net income included a special item charge of $26 million after-tax, or $0.10 per share, for transaction costs related to Cigna’s proposed combination with Anthem, while second quarter 2015 shareholders’ net income included a special item charge of $65 million after-tax, or $0.25 per share, related to costs associated with the early redemption of long term debt.
Cigna’s adjusted income from operations for second quarter of 2016 was $515 million, or $1.98 per share, compared with $664 million, or $2.55 per share, for second quarter of 2015.
“Cigna’s second quarter financial results reflect solid performance in Global Health Care and Global Supplemental Benefits, with a current headwind in Group Disability and Life that pressured overall results,” said David M. Cordani, President and Chief Executive Officer. “We are taking a series of corrective actions to stabilize and improve Group Disability and Life results while we continue to focus on driving innovation and enhancing value for our customers and clients around the globe, and remain fully committed to our long-term growth objective.”
- Total revenues increased 5% to $10.0 billion in the second quarter
- Shareholders’ net income for the second quarter was $510 million, or $1.97 per share
- Adjusted income from operations in second quarter was $515 million, or $1.98 per share
- Strong free cash flow provides ongoing financial flexibility
- Projected adjusted income from operations per share is now estimated to be in the range of $7.75 to $8.10 in 2016