Cigna posts sharply lower 1Q profit on hefty losses, charges

PHILADELPHIA (AP) - Health insurer Cigna says first-quarter profit dropped 80 percent due to hefty reinsurance losses and litigation charges, and says full-year earnings may miss expectations amid challenges in its health care segment.

Philadelphia-based Cigna Corp. says earnings fell to $58 million, or 21 cents per share, from year-ago profit of $289 million, or 98 cents. Excluding losses on reinsurance accounting changes and litigation, earnings would have been 94 cents per share in the latest period.

Revenue rose to $4.57 billion from $4.37 billion a year ago.

Analysts surveyed by Thomson Financial expected slightly higher profit of 95 cents per share on revenue of $4.55 billion.

Looking ahead, Cigna forecast full-year adjusted earnings per share of $4.05 to $4.25, compared with analysts' average estimate of $4.25.

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AP Business Writer Jennifer Malloy