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Key Takeaways
- Cigna beat profit and sales estimates, posted strong guidance and raised its dividend as it added pharmacy and medical plan customers.
- The insurer boosted its quarterly dividend by 14%.
- Shares of Cigna were trading at their highest level since late 2022.
Shares of The Cigna Group ( CI ) rose to their highest level in more than a year after the health insurance company posted better-than-expected results, raised its earnings guidance and boosted its dividend as it added pharmacy and medical plan customers.
Cigna reported fourth-quarter earnings per share (EPS) of $6.79, with revenue increasing 11.7% to $51.11 billion. Both were above forecasts.
The company noted that sales at its pharmacy benefits division was up 12% to $40.52 billion, and sales at its health insurance unit gained 17% to $13.01 billion. The number of customers for its pharmacy benefits increased 5% to 98.6 million, while health insurance customers climbed 10% to 19.8 million.
Cigna’s medical care ratio, which measures the percentage of premiums spent on insurance payouts, was 82.2%, less than anticipated.
The company now predicts full-year revenue of at least $235 billion, exceeding estimates. It sees EPS of at least $28.25, more than its earlier prediction of $28, although still slightly below analysts’ expectations.
Cigna also announced it was raising its quarterly dividend from $1.23 to $1.40 per share to be paid March 21 to shareholders of record on March 6.
Cigna shares were 5.8% higher at $325.27 at 11:50 a.m. ET, trading just below their all-time high set in December 2022.