Health insurer Cigna Corp.'s revenue and profit soared in its first full quarter since completing its takeover of pharmacy benefit manager Express Scripts.
Hartford, Conn.-based Cigna's revenue more than tripled to $37.9 billion from $11.4 billion in the three months ended March 31 over the same quarter a year ago, bolstered by the Express Scripts acquisition that closed in the December and revenue growth in Cigna's insurance business.
Its net income grew 49.6% to $1.4 billion in the quarter.
"Cigna's first quarter performance reflects focused execution of our proven growth strategy and positions us well to achieve our increased outlook for 2019," Cigna CEO David Cordani said in a statement Thursday. "Our combination with Express Scripts is fueling additional innovative programs for the benefit of our customers and patients, as we accelerate our efforts to improve the affordability of healthcare."
Cigna rearranged its business segments following the close of the $67 billion Express Scripts deal. Its integrated medical business, consisting mostly of employer-sponsored medical coverage and Medicare, grew revenue 12.8% to $9.2 billion. Cigna attributed the higher revenue commercial and specialty product customer growth, as well as premium increases.
Medical membership totaled 17 million at the quarter's end, an increase of 224,000 people or 1.3%, as it grew membership in its small and middle market employer segments, but lost customers among large, national employers.
Cigna medical care ratio, which represents the amount of premiums spent on medical claims and quality improvement, was 78.9% compared with 77.5% at the same time last year.
Most new revenue was concentrated in Cigna's health services segment, which consists of Express Scripts' PBM services and Cigna's legacy home delivery pharmacy operations. Revenue in that segment totaled $26.9 billion compared with $1.1 billion a year ago.