Cigna reports lower profit, higher revenue expectations for 2017

Cigna corporate headquarters, Bloomfield, Connecticut

Cigna on Thursday announced lower profit for both the last quarter and for the year, but projected attractive earnings growth for 2017.

Profit for the last three months of 2016 was $485 million, down from $486 million in 2015.

Full-year profit for 2016 was $1.9 billion, compared to $2.1 billion,  in 2015.

Revenue grew by 5 percent over 2015, and this growth is expected to continue, Cigna said.

[Also: Following Cigna, Anthem changes preauthorization policy for medication-assisted therapy treatment]

Profit from operations is projected to grow 12 to 18 percent in 2017 to $2.3 to $2.4 billion, according to President and CEO David Cordani.

"We concluded 2016 with strong momentum that positions the company for attractive earnings and customer growth in 2017," Cordani said.

Cigna is still awaiting a ruling on its $54 billion merger deal with Anthem.

During a December court trial on antitrust grounds, documents revealed a rift between the two insurers.

If the deal doesn't go through, Anthem will owe Cigna a $1.8 billion breakup fee.

Cordani told Forbes the insurer has $7 to $14 billion available for mergers and acquisitions if it is unable to complete its sale to Anthem.

Anthem recently filed its intent to move the merger deadline from the end of January to the end of April.

[Also: Anthem extends termination date of deal with Cigna to April 30]

However, in a Jan. 31 report to the Securities and Exchange Commission, Cigna said it has made no determination on Anthem's notice seeking to extend the termination date, including whether it would seek to terminate the merger agreement.

"As previously disclosed, on January 18, 2017, Cigna received a written notice from Anthem seeking to extend the termination date of the Merger Agreement from January 31, 2017, to April 30, 2017," Cigna said in a Securities and Exchange Commission filing. "As Cigna previously disclosed, Cigna still intends to evaluate its options in accordance with the Merger Agreement once the Court issues its opinion in the pending civil antitrust lawsuit."

Twitter: @SusanJMorse