BLOOMFIELD, Conn. (AP) — Cigna’s first quarter earnings topped analyst expectations, as a major acquisition helped push the health insurer’s net income past $1 billion.
Cigna closed its $52 billion purchase of pharmacy benefit manager Express Scripts late last December. The addition helped the insurer’s total revenue more than triple to $37.95 billion in this year’s first quarter. Adjusted revenue totaled $33.43 billion, which did not meet Wall Street forecasts.
Net income grew nearly 50% to $1.37 billion. Earnings, adjusted for non-recurring costs and amortization, came to $3.90 per share.
The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $3.74 per share.
Cigna executives have touted the Express Scripts deal as a way to give the company better financial flexibility and improve its free cash flow, among other advantages. They also say the combination will improve service and give doctors a more complete picture of patients.
Pharmacy benefit managers, or PBMs like Express Scripts, run prescription drug coverage for big employer and insurers, among other clients.