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Cigna Reports Drop in Profit for Quarter

November 03, 2000|Bloomberg News

Cigna Corp. said third-quarter profit from continuing operations fell 1.7% to $281 million, or $1.76 a share, as investment services and retirement-benefits income declined while its health-care business improved. The health insurer's revenue rose 7.2% to $5.03 billion. The results exceeded analyst expectations of $1.68 a share. Profit from Cigna's health-care business rose 17% as the company boosted premium revenue 12% by adding 1 million customers and raising rates. The medical loss ratio--the share of every premium dollar that pays for medical costs--narrowed to 83.8% from 85.5% a year earlier for Cigna's health-maintenance organizations. Cigna's investment services lost $1 million, versus a profit of $8 million a year earlier, and profit from retirement benefits fell 4.5%. Shares of Philadelphia-based Cigna, which had risen 43% this year, closed off $4.57 at $115.43 on the NYSE.

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