Cigna Corporation (NYSE: CI) today reported second quarter 2012 consolidated revenues of $7.5 billion, an increase of 35% over the second quarter of 2011. Revenues reflect growth in premiums and fees of 52% in Health Care, 22% in International and 4% in Disability and Life, driven by contributions from the HealthSpring acquisition in the first quarter and continued growth in our targeted customer segments.
Cigna’s adjusted income from operations 1,2 for the second quarter of 2012 was $444 million, or $1.52 per share, excluding the after-tax loss of $10 million, or $0.03 per share, from results of the VADBe 2 business. This result compares with $401 million, or $1.47 per share, for the second quarter of 2011. Adjusted income from operations 1 in the second quarter of 2012 included favorable prior year claim development in the Health Care business of $17 million after-tax, or $0.06 per share, compared to $25 million after-tax, or $0.09 per share, in the second quarter of 2011.
Cigna reported shareholders’ net income 1 of $380 million, or $1.31 per share, for the second quarter of 2012, compared with shareholders’ net income 1 of $391 million, or $1.43 per share, for the second quarter of 2011. Shareholders’ net income 1 included losses of $0.17 per share in the second quarter of 2012 and $0.08 per share for the same period last year related to the Guaranteed Minimum Income Benefits (GMIB) 2 business.
“Our second quarter 2012 results are strong and driven by our continued focus on delivering a superior customer experience and partnering with health care professionals, while also continuing to make targeted strategic investments to position Cigna to deliver long-term value for our customers and shareholders,” said David M. Cordani, President and Chief Executive Officer. “We continue to be pleased with the contributions from HealthSpring and the effective execution of our global growth strategy, which continues to yield strong revenue and earnings contributions from each of our ongoing businesses.”
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