Driven by an increase in enrollment in the commercial sector and premium increases, Cigna on Thursday reported a 5-percent increase in revenues for the year and more than a 15 percent increase in net income.
Cigna on Thursday reported net income of $2.2 billion for 2017, compared to $1.9 billion in 2016.
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Total revenues for 2017 were $41.6 billion
However, profits for the quarter were down from $382 million in 2016 to $266 million in 2017.
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In its earnings report, Cigna said its attractive year-over-year results were led by organic growth and strong margins in the commercial business.
Enrollment increased by 700,000 consumers to 15.9 million at the end of 2017.
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Fourth quarter 2017 premiums and fees increased 7 percent over the fourth quarter of 2016, numbers that were partially offset by expected lower enrollment in Cigna's government business.
Cigna said its outlook for full year 2018 income from operations is in the range of $3.08 billion to $3.20 billion.
The strong 2017 results are from growth across the company's global healthcare, global supplemental benefits and group disability and life segments, Cigna said.
"Cigna's exceptionally strong 2017 performance reflects our team's dedication to delivering innovative solutions aligned to the evolving needs of our customers and clients around the world," CEO David M. Cordani said. "We've entered 2018 with considerable momentum for growth in each of our businesses, as we continue to invest in market-leading capabilities to create differentiated value for our stakeholders."
The earnings report was released the day after Cigna announced it was raising its minimum wage to $16 an hour, based on the financial benefit of tax reform.
The U.S. minimum wage is $7.25 an hour.
Employee wage investments will total more than $15 million. Additionally, Cigna said it is adding $30 million to its 401K program to match an additional 1 percent of employee compensation for the retirement accounts of over 30,000 employees.
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com