The Cigna Group reported third quarter net income of nearly $2 billion despite rising costs in the health plans it sells., the company said October 30, 2025. In this photo 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 reported third quarter net income of nearly $2 billion despite rising costs in the health plans it sells.
Like many of its rival health insurers, Cigna has been battling rising medical expenses from customers in its health plans. And Thursday’s results reflected costs that are still rising compared to the year-ago period.
Cigna’s medical cost ratio, which is the percentage of premium revenue that goes toward medical costs, was 84.8% for third quarter 2025 compared to 82.8% for third quarter 2024, due to “individual and family plans business and higher stop loss medical costs relative to the prior year,” Cigna said in its third quarter earnings report.
Though Cigna’s costs rose in the third quarter, the percentage wasn’t as high as rivals in the health insurance industry that are seeing medical cost ratios at 90% or more. Then again, 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 older adults. 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.
Cigna reported net income of $1.9 billion, or $6.98 per share for the third quarter. “This compares with $0.7 billion, or $2.63 per share, for third quarter 2024, which included a one-time non-cash after-tax investment loss of $1.0 billion, or $3.69 per share,” the company disclosed in its earnings report.
“Our strong quarterly results reflect the breadth of our businesses and focused execution on our growth strategy, even in a dynamic environment,” David M. Cordani, chairman and CEO of The Cigna Group said in a statement accompanying third quarter earnings
Cigna reported total revenues were up 10% to $69.7 billion in the third quarter, “primarily driven by Evernorth Health Services and includes growth of existing client relationships and strong specialty pharmacy growth,” the company said. Evernorth operates the large pharmacy benefit management company Express Scripts and Accredo specialty pharmacy.
Source: https://www.forbes.com/sites/brucejapsen/2025/10/30/cigna-profits-hit-nearly-2-billion-despite-rising-costs/
