Cigna Corp., Philadelphia, saw its net income rise 8% to $236 million, or $1.68 per share, in the first quarter, reflecting a $32 million after-tax gain from the sale of Lovelace Health Systems, Albuquerque. In Cigna's struggling healthcare business, earnings were down 28% from the year-ago period, to $155 million, but up 27% from the fourth quarter of 2002. Cigna suffered a disastrous 2002 in which it drastically underestimated medical costs, priced accounts too low and took almost $1 billion in charges for its now-defunct reinsurance business. First-quarter revenue rose 2.5% to $4.9 billion, as year-over-year enrollment fell 6% to 12.3 million. Earlier this year, the company said it would cut its workforce by 3,250, or 8.4%, in a move expected to save about $100 million this year. Cigna projects full-year earnings of between $6.25 and $6.50 per share. -- by Laura B. Benko
Cigna struggles to recover from 2002
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