Cigna closes 2Q with mixed results

Health insurer Cigna had some good news and some bad news at the end of the second quarter.

Quarterly earnings were down from the previous year’s, with the firm still chasing figures from discontinued operations in the second quarter of 2005 with a net income of $273 million, or $2.33 per share, in the second quarter of 2006, compared to $720 million, or $5.48 per share for the same quarter a year ago.

But the firm reported adjusted income from operations of $270 million, or $2.31 per share, for the second quarter of 2006, up from adjusted operations income of $260 million, or $1.98 per share for the same quarter last year beating analysts’ expectations of $1.93 per share.

Membership growth was flat with just over 9 million subscribers in the second quarter of 2006 – gain of 1,000 members from the first quarter of 2006 and only 5,000 compared to the same quarter a year ago.

The company also repurchased approximately 9 million shares of its stock on the open market for $876 million during the second quarter of 2006 as well as approximately 1.8 million shares for $178 million in July.

Philadelphia, Pa.-based Cigna has about 160,000 members in New Hampshire. — CINDY KIBBE