Cigna Corp., Philadelphia, saw its fourth-quarter profits plunge 75% to $47 million, or 33 cents per share, from $191 million, or $1.32 per share, in the year-ago quarter, largely because of charges related to job cuts. Revenue slipped 1.3% to $4.8 billion. Cigna recorded $143 million in charges, including $97 million for its recently announced plan to cut 3,250 jobs, or 7.7%, of its workforce. Medical costs climbed to 86.4% of commercial HMO revenue, from 85.5% a year earlier. For the full year, Cigna posted a net loss of $398 million, or $2.83 per share, compared with 2001 net income of $989 million, or $6.59 per share. Annual revenue rose 4% to $19.4 billion. Results include $1.2 billion in previously announced charges, stemming partly from the company's now-defunct reinsurance business. Cigna expects to post a first-quarter profit of $30 million, related to the January sale of its Lovelace Health Systems unit, Albuquerque, to Ardent Health Services, Nashville, for $211 million. -- by Laura B. Benko
Cigna posts fourth-quarter, year-end loss
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.