CIGNA Corp.’s second-quarter 2010 earnings fell 32% to $294 million, or $1.06 per share, compared to $435 million, or $1.58 per share, a year ago, the insurer reported Thursday, August 5.
Shareholders’ net income included a loss of $0.37 per share in second-quarter 2010 compared to income of $0.40 per share in second-quarter 2009 from results for the guaranteed minimum income benefits and death benefits businesses, also known as variable annuity death benefits, which have been included in CIGNA’s run-off reinsurance operations since 2000.
To support its stock price, the company has repurchased approximately 6.2 million shares for approximately $200 million through August 4.
Despite the variable-annuity loss, CIGNA’s results beat analyst expectations for earnings of $1.01. The company now estimates full-year 2010 earnings per share, on an adjusted basis, to be in the range of $4.10 to $4.40 per share compared to its earlier forecast of $3.75 to $4.15. The new estimate would put adjusted income from operations in the range of $1.13 billion to $1.21 billion.
CIGNA (CI) stock after the earnings release was up $1.35 per share, or 4.2%, in early trading, at $33.50 versus yesterday’s close of $32.15.