Cigna squeezes higher profit from fewer customers
Membership in Cigna health insurance plans fell to 11.2 million, from 11.4 million in the first quarter, and 12.1 million a year ago.
Cigna Inc. profits from health insurance, the Philadelphia company's biggest business, rose to $177 million for the second quarter, from $154 million in the first quarter, even though premiums and fees slipped to $2.86 billion, from $2.91 billion, as membership in Cigna plans fell to 11.2 million, from 11.4 million in the first quarter. Also down from 12.1 million a year ago.
That means an after-tax profit margin on health insurance of 5.4%, up for the quarter and for the year. How do you get more from less? By laying off workers (Cigna announced cuts in January), jawing down vendor prices, and cutting real estate costs, said spokesman Chris Curran. More on Cigna corporate earnings, which rose overall thanks mostly to favorable interest-rate movements, in the company's reports here.