Cigna Corp., Philadelphia, posted a second-quarter net profit, reversing a year-earlier loss, as it contained medical cost increases and reaped a big one-time gain from selling its retirement business in April. In the three months ended June 30, the insurer reported net income of $515 million, or $3.67 per share, compared with a net loss of $53 million, or 38 cents per share, in the year-ago quarter. Excluding special items and realized investment results in both quarters, Cigna earned $246 million, or $1.75 per share, up from $158 million, or $1.13 per share, in the year-ago quarter. Revenue remained unchanged at $4.63 billion, while enrollment fell 17% year over year to 10 million. Cigna had previously predicted a decline in membership as it proceeded with its turnaround and projected continued enrollment declines into 2005. The company has been working to regain its financial footing after posting losses in 2002 and 2003. Cigna boosted its full-year, per-share earnings forecast to between $5.95 and $6.25, up from its April estimate of $5.15 to $5.55. -- by Laura B. Benko
Cigna profits from cost containment, unit sale
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