Cigna profit drops 53 percent, sees loss ahead

Source: Reuters

Date :30/10/2008 11:13:49

Health insurer Cigna Corp posted a 53 percent decline in third-quarter profit on Thursday, hurt by losses stemming from the market volatility, and said it expected to post a fourth-quarter loss related to its death benefits business.

Net income fell to $171 million, or 62 cents per share, from $365 million, or $1.28 per share, a year earlier.

The company reporting operating earnings of 89 cents per share, including 25 cents of losses from its death benefits business.

Revenue rose 10 percent to $4.9 billion.

The Philadelphia-based company said it expected to report a fourth-quarter loss of 45 cents per share.

Cigna, which in August cut the 2008 outlook for its main healthcare business on weaker enrollment and cost trends, has seen its stock fall some 63 percent this year, slightly worse than a 61 percent drop for the S&P Managed Health Care index.

(Reporting by Lewis Krauskopf; Editing by Lisa Von Ahn)

NEW YORK (Reuters)