Thomson Reuters
(Reuters) – Cigna Corp reported a better-than-expected quarterly profit on Friday as the health insurer saw customer growth in its commercial business.
The U.S. House of Representatives on Thursday narrowly approved a bill to repeal and replace Obamacare, handing Republican President Donald Trump a victory that could prove short-lived as the healthcare legislation heads for a likely battle in the Senate.
The company’s net income rose to $ 598 million, or $ 2.30 per share, in the first quarter ended March 31, from $ 519 million, or $ 2.00 per share, a year earlier.
Excluding items, Cigna earned $ 2.77 per share, well above the analysts’ average estimate of $ 2.45, according to Thomson Reuters I/B/E/S.
Medical customers totaled 15.7 million at the end of the first quarter, an increase of 537,000, driven by organic growth in Cigna’s commercial unit.
Consolidated operating revenue rose 5 percent to $ 10.34 billion, ahead of estimates of about $ 10.10 billion. (Reporting by Ankur Banerjee in Bengaluru; Editing by Shounak Dasgupta)
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