Cigna achieves $1.5 billion profit amid rising costs

In the United States, the Cigna Group announced a second quarter profit of $1.5 billion on July 31, 2025, largely driven by the strong performance of its Evernorth health service business. Cigna’s net income was reported at $1.5 billion, translating to $5.71 per share, reflecting a slight increase compared to $1.5 billion, or $5.45 per share, in the same period the previous year. Total revenues also surged by 11%, reaching $67.2 billion for the second quarter of 2025. Adjusted income from operations saw a modest growth of 1% compared to the second quarter of 2024, attributed mainly to robust growth in the Evernorth sector despite rising costs in employer health benefits. The company faced challenges regarding increased stop loss medical costs, which raised Cigna’s medical cost ratio to 83.2% from 82.3% in the prior year, marking a significant issue in its operational efficiency. This dilemma stems from stop loss policies that make Cigna liable for medical costs that exceed defined amounts in self-funded employer plans, though the specific factors leading to the increased costs were not disclosed. Cigna maintains a different landscape compared to its competitors, many of whom have struggled with government-subsidized health insurance programs like Medicaid and Medicare Advantage. Earlier this year, Cigna also completed the sale of its Medicare businesses, targeting improved operational focus and cost management. The Evernorth health services continue to exhibit growth, particularly in specialty pharmacy and expanding client relationships, illustrated by a 3% increase in pharmacy customers to 121.9 million by mid-2025. Cigna’s leadership highlighted their strategy of adaptability and innovation as central to their success, as expressed by David M. Cordani, the company’s chairman and CEO, emphasizing the importance of evolving to meet customer needs through strong execution and a diversified business model.