Cigna 1st-Quarter Net Profit Falls 21%

Cigna Corp., the No. 3 health insurer, said its first-quarter net profit dropped 21%, hurt by higher investment losses.

But the Philadelphia-based company said operating earnings rose slightly as it raised premiums to stay ahead of escalating medical costs.

The company posted net income of $218 million, or $1.52 a share. Revenue for the quarter grew slightly to $4.83 billion from $4.73 billion.

Operating profit rose to $275million, or $1.92 a share, from $272 million, or $1.76 a share. Analysts’ consensus estimate was $1.88 a share.

Cigna shares fell $6.83, or 6.2%, to $104 on the NYSE.