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Investing.com -- The Cigna (NYSE:CI) Group reported stronger-than-expected first quarter results on Friday, as the health insurer saw growth across its diversified portfolio of businesses. The company also raised its full-year earnings guidance, sending shares up 1.4% in early trading.
The Bloomfield, Connecticut-based company reported adjusted earnings of $6.74 per share for the first quarter of 2025, surpassing analyst estimates of $6.35 per share. Revenue for the quarter came in at $65.5 billion, significantly above the consensus estimate of $60.38 billion and up 14% YoY.
Cigna’s Evernorth Health Services segment, which includes pharmacy benefit management and specialty pharmacy services, was a key driver of growth. The segment’s adjusted revenues increased 16% YoY to $53.7 billion, reflecting strong specialty pharmacy growth and expansion of existing client relationships.
The Cigna Healthcare segment, which provides medical benefits, saw adjusted revenues rise 9% YoY to $14.5 billion, primarily due to premium rate increases to cover expected rises in underlying medical costs.
"Our strong first quarter results and increase in outlook for full-year earnings reflects the strength of our Evernorth Health Services and Cigna Healthcare growth platforms in a dynamic environment," said David M. Cordani, chairman and CEO of The Cigna Group.
Looking ahead, Cigna raised its full-year 2025 adjusted income from operations guidance to at least $29.60 per share, up from its previous forecast and in line with analyst expectations.
The company’s medical care ratio, which measures medical costs as a percentage of premium revenue, increased to 82.2% from 79.9% a year earlier, primarily driven by expected higher stop loss medical costs.