Cigna says it will back 2012-13 outlooks

Cigna says it expects to back 2012 and 2013 forecasts in investor meetings this week

Associated Press

BLOOMFIELD, Conn. (AP) -- Health insurer Cigna Corp. said Monday it plans to reaffirm its 2012 and 2013 financial guidance in discussions with investors and analysts this week.

Cigna said it should maintain its forecasts for consolidated adjusted income from operations and medical membership for each year.

The company said it expects to report $1.66 billion to $1.71 billion in adjusted income from operations in 2012, which equates to $5.70 to $5.90 per share. The estimate excludes one-time charges related to Cigna's purchase of HealthSpring Inc. and other items. It includes year-to-date results from the company's variable annuity death benefits business but does not estimate future results for that unit.

Cigna expects $1.69 billion to $1.82 billion in consolidated adjusted income from operations in 2013.

Analysts expect Cigna to report adjusted net income of $1.69 billion in 2012 and $1.82 billion in 2013, according to FactSet. On a per-share basis analysts expect the company to earn $5.89 in the current year and $6.34 per share in 2013.

Cigna discontinued the variable annuity death benefits business year ago and does not seek new business for it, but its liabilities toward past members increase, which affects the company's results.

Cigna Corp., based in Bloomfield, Conn., is the fourth-largest commercial health insurer based on enrollment. Its shares rose 3 cents to $52.93 in morning trading.

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