Cigna Shares Drop on Earnings News

Shares of Cigna Corp., the third-largest U.S. health insurer, dropped 7.8% after the company said second-quarter profit declined more than was forecast and full-year earnings would fall short.

Second-quarter earnings were $1 to $1.15 a share, compared with expectations Cigna would earn $1.48, the insurer said after regular trading ended Friday. Profit this year will be $5 to $5.25 a share, compared with a previous forecast of $6.01, the company said.

Chief Executive Ed Hanway is battling rising medical costs and a declining customer base as Cigna loses market share to UnitedHealth Group Inc. and Aetna Inc.

Cigna shares fell $3.45 to close at $41.04 on the NYSE.