Shares in Cigna are down 20% in midday trading today (and have fallen 72% from their 52-week high) after the company announced a 53% decline in third-quarter net income and a reduction in full-year 2008 earnings outlook. The decline was entirely related to losses in the company’s run-off reinsurance business. Membership, meanwhile, is expected to fall 1% in 2008 and another 2% in 2009. What’s it all add up to? Cigna is now the third worse performing managed care stock among 13 issues tracked by CRG, beating out only Health Net (down 77% from its 52-week high) and Coventry (down 80%). To which we can only say, “Ouch!”
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