Cigna Group boosted its full-year outlook and reported third-quarter profits just above Wall Street estimates, driven by strong performance in its insurance and specialty pharmacy services. The company now sees adjusted earnings of at least $30.60 per share, up from a previous outlook of at least $30.45. Quarter profit reached $7.98, exceeding analyst estimates.
A key care spending gauge came in slightly ahead of views. Across Cigna's major segments -- the Evernorth health services division and its insurance unit -- revenue and profit came in slightly ahead of estimates. Cigna's shares rose 3.3% before regular trading in New York.
The insurer operates the country's largest pharmacy benefits manager and a top commercial health insurer. The company said it is transforming the PBM model with a more transparent approach, temporarily squeezing margins. New federal rules aim to force more transparency into the business.
Cigna has divested non-healthcare assets and does not have a retail drugstore chain. A chief rival, CVS Health Corp., this week said it would separate its retail pharmacy business in a historic unwinding of a vertically integrated healthcare giant. Politicians have criticized the strategy adopted by Cigna and its competitors for concentrating power in large corporate healthcare entities.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing