Global health services company Cigna Corporation reported third-quarter 2021 results with strong revenue and earnings growth across its businesses. Total revenues in the third quarter were $44.3 billion, and adjusted revenues1 were $44.3 billion, whereas shareholders’ net income for the third quarter was $1.6 billion, or $4.80 per share.
- Adjusted income: Cigna’s adjusted income from operations for the third quarter of 2021 was $1.9 billion, or $5.73 per share, compared with $1.6 billion, or $4.41 per share, for third-quarter 2020 reflecting strong earnings contributions across its businesses. Shareholders’ net income for third-quarter 2021 was $1.6 billion, or $4.80 per share compared with $1.4 billion, or $3.78 per share, for third-quarter 2020.
- Expense rate ratio: The SG&A expense ratio was 7.0% for third quarter 2021, a decrease from 8.1% for third quarter 2020, driven by revenue growth, the repeal of the health insurance industry tax, and continued expense efficiency. Third-quarter 2021 adjusted revenues1 increased 13% relative to third quarter 2020 driven by strong organic growth, including growth in retail network and specialty pharmacy services.
- Income from operations: Third quarter 2021 adjusted income from operations, pre-tax and adjusted margin, pre-tax7 increased relative to third quarter 2020 primarily due to favorable net investment income, increased specialty contributions, and the repeal of the health insurance industry tax, partially offset by the net impact of COVID-19 on medical costs and higher medical costs for customers in our Individual business who enrolled during the Special Enrollment Period.
- MCR: The medical care ratio of 84.4% for third quarter 2021 compares to 82.6% for the third quarter 2020, reflecting COVID-19 related impacts, the pricing effect of the repeal of the health insurance industry tax, and higher medical costs for customers in our Individual business who enrolled during the Special Enrollment Period.
- Sustained achievement: “Our strong results from the quarter demonstrate how we are advancing our growth strategy and delivering for our customers, patients, clients, and provider partners,” said David M. Cordani, president and chief executive officer. “The balanced profile of our business, our sustained investments in innovation, and our capital flexibility position us well for continued growth the rest of this year and over the long-term.”