Health plan membership continued to drop at CIGNA Corp. in the second quarter, but the company still produced a big increase in profits.[@@]

CIGNA, Philadelphia, is reporting $720 million in net income for the latest quarter on $4.1 billion in billion, compared with $504 million in net income on $4.6 billion in revenue for the second quarter of 2004.

A sharp decrease in investments sold, written down or written off during the quarter cut $413 million from net income, and health plan enrollment fell 10%, to 9 million, CIGNA says.

The premium increases helped stabilize revenue, and membership performance “was slightly better than projected,” says David Cordani, president of CIGNA’s health care unit.

“Job one for us is to get the membership stabilized and growing organically,” says CIGNA Chief Executive H. Edward Hanway.