Health insurer CIGNA says it saw a rise in fourth quarter profits last year, despite a fall in membership. WNPR’s Harriet Jones reports.
Philadelphia-based CIGNA has its healthcare headquarters in Bloomfield. In the last three months of 2009, the company reported net income of $330 million, or $1.19 per share, up from 77 cents a share in the same quarter of 2008. The improved results were boosted by better investment returns, after the disastrous markets of late 2008.
New CEO David Cordani described last year as challenging both because of the recession and because of uncertainty over health reform, and he said he regarded the results as a good outcome. Cigna’s medical membership went down 5.5% in the quarter, but the rate of decline slowed, compared with previous quarters of 2009. Health insurers have all seen a fall off in membership, as the recession-hit client companies lay off employees. By contrast, Cigna said its international sales are on the rise.
For WNPR, I'm Harriet Jones.