NU Online News Service, May 2, 4:03 p.m. – CIGNA Corp., Philadelphia, is reporting $218 million in net income for the first quarter in $4.8 billion in revenue, compared with $276 million in net income on $4.7 billion in revenue for the first quarter of 2001.
Net results for the latest quarter include $88 million in investment losses, compared with $8 million in losses for the comparable quarter in 2001. Most of the new investment losses were due to losses on bonds and other fixed-income securities, CIGNA says.
CIGNA sells health insurance, retirement and investment services, and international employee benefits.
The health care operation, which also sells life and disability benefits, provided major medical coverage for 14 million people at the end of the quarter, about as many as it covered a year earlier.
Average revenue per member increased 9% from the first quarter of 2001, to $638.
The entire employee health care, life and disability unit generated $216 million in operating income for the latest quarter, up from $198 million. The increase came as a result of an increase in premiums for the company’s indemnity health plans and related operations.
The retirement and investment services unit is reporting $57 million in operating income, down from $60 million.
The international benefits operation is reporting $198 million in operating income, up from $186 million.