Cigna Profits Hit $1.5 Billion Despite Higher Costs

The Cigna Group reported a second quarter profit of $1.5 billion as its Evernorth health service business performs well and despite rising costs in its employer health benefits business, the company said July 31, 2025. Pictured here is the Cigna Group headquarters in Bloomfield, Connecticut, US, on Friday, Oct. 27, 2023. Photographer: Joe Buglewicz/Bloomberg

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The Cigna Group Thursday reported a second quarter profit of $1.5 billion as its Evernorth health service business performs well and despite rising costs in its employer health benefits business.

Cigna, which includes Evernorth and one of the nation’s largest pharmacy benefit management companies, said net income was $1.5 billion, or $5.71 per share in the second quarter of this year. That compares with $1.5 billion, or $5.45 per share, in the second quarter 2024. Meanwhile, total revenues for the second quarter 2025 rose 11% to $67.2 billion.

“Adjusted income from operations for second quarter 2025 increased 1% relative to second quarter 2024, reflecting strong growth in Evernorth Health Services and improvement in Corporate, partially offset by expected higher stop loss medical costs in Cigna Healthcare,” the company said.

Cigna’s medical cost issues are different than those of health insurance industry rivals that have struggled largely in their businesses providing government-subsidized health insurance coverage such as Medicaid benefits for the poor and Medicare Advantage for the elderly. Cigna earlier this year completed the sale of its Medicare businesses to Health Care Service Corp., an operator of Blue Cross and Blue Shield plans in five states.

In Cigna’s case, the company Thursday said its results were impacted by higher “stop loss medical costs.”

Under such policies, Cigna becomes liable for losses that exceed certain limits set up between the insurer and an employer’s self-funded policy. Cigna didn’t disclose the specific reason for the higher cost in its stop loss offering.

But the stop loss offering impacted Cigna’s medical cost ratio, which is the percentage of premium revenue that goes toward medical costs. Cigna’s medical cost ratio increased in the second quarter to 83.2% compared to 82.3% in the year-ago period.

Despite the stop loss issue, Cigna reaffirmed its 2025 outlook for adjusted income from operations of “at least $29.60 per share.”

“Listening, adapting, and innovating to meet the evolving needs of our patients, customers, and clients enables us to deliver meaningful value,” David M. Cordani, chairman and CEO of The Cigna Group said in a statement accompanying the company’s second quarter earnings report. “Our performance in the second quarter reflects our disciplined execution and the strength of our business mix.”

Cigna’s Evernorth health services business, which includes one of the nation’s largest pharmacy benefit management companies in Express Scripts, grew “existing client relationships” and experienced “strong specialty pharmacy growth,” the company said. “Total pharmacy customers at June 30, 2025 increased 3% from December 31, 2024 to 121.9 million due to new sales and the continued expansion of relationships,” Cigna said.