Cigna Corp. Profit Tops Expectations

Cigna Corp., which last week agreed to sell itself to Anthem Inc. for $48 billion, logged better-than-expected profit in its second quarter amid medical cost management and customer growth.

The Bloomfield, Conn., insurer said it had 14.77 million total medical customers at the end of the quarter, compared with 14.25 million a year earlier and 14.65 million in the previous quarter.

In Cigna's global health-care business, premiums and fees revenue grew 10% to $6.73 billion, driven by customer growth in its commercial and government businesses and rate actions.

Overall, Cigna reported earnings of $588 million, or $2.26 a share, up from from $573 million, or $2.12 a share, a year earlier. Excluding certain items, per-share earnings from operations grew to $2.55 a share from $2.07 a share a year ago.

The results topped analysts' expectations for $2.31 a share in profit and were above the preliminary forecast Cigna gave last week.

The company's total revenue grew 8.7% to $9.49 billion. Excluding net realized investment gains, operating revenue was $9.47 billion, up 9.3% from a year earlier.

Analysts polled by Thomson Reuters had forecast $9.53 billion in revenue.

Excluding net realized investment gains, operating revenue was $8.67 billion, up 9.3% from a year earlier.

The Bloomfield, Conn., company's deal with Anthem would combine the second- and fifth-largest health insurers by revenue, creating a company with a huge footprint in commercial insurance, the type of coverage provided to employers and consumers.

The deal capped months of merger frenzy among top U.S. health insurers that could result in a dramatic reshaping of the industry. Aetna Inc. has also agreed to buy Humana Inc. for $34 billion.

The biggest companies are seeking more cost efficiency and scale as the health-care landscape changes because of the Affordable Care Act and other factors. Of the current major health insurers, only UnitedHealth Group Inc., the largest by revenue, is sitting out the merger wave, at least so far.

Write to Chelsey Dulaney at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires