Dive Brief:
- It's celebration time at CIGNA, where first-quarter net income rose more than 800%, from $57 million in 2013 to $528 million this year.
- CIGNA reported total revenue of about $8.5 billion for the first three months ending March 31, climbing 3.8% from $8.18 billion the previous year. It attributed the increase in revenue growth to premiums and fees.
- CIGNA reported the massive growth in net income despite a drop in earnings on its $781 million transaction with Berkshire-Hathaway to exit its reinsurance business.
Dive Insight:
According to Forbes, CIGNA's results are 20 cents per share higher than previously anticipated. That puts CIGNA squarely in the camp of major health insurers who are seeing a surge of money thanks to a surge of younger customers signing up for ACA coverage, writes Forbes' Bruce Japsen. It remains to be seen how many more younger consumers sign up through the health insurance marketplace, but it appears that it's already ahead of where some health insurers had feared.