UPDATED: 2 p.m. ET
Cigna will exit the individual market for the 2027 plan year as the segment faces renewed instability.
Brian Evanko, Cigna's chief operating officer, told investors on Thursday morning during the company's earnings call that the market departure will not effect benefits or networks for individuals currently enrolled in Cigna's exchange plans.
The insurer will also support its existing members in transitioning to new coverage for 2027, he said.
"We did not make this decision lightly and appreciate the importance of ensuring patients have continuity through the transition," Evanko said.
Chief Financial Officer Ann Dennison said during the call that the exit "will allow us to focus on areas where we can best offer differentiated value to make a more meaningful difference in the health and experiences of those we serve." She said the decision comes as part of a broader effort to reshape the strategy around its plan portfolio.
Evanko said that the company is also exploring "strategic options" for eviCore, which manages medical claims and reviews prior authorization requests. He said that both of these steps were taken "proactively" as the team aims to position Cigna for the future.
He cited two key reasons why the insurer chose to fully exit the Affordable Care Act market. For one, Evanko said that the team did not see the potential to scale the marketplace business to make a significant impact in the broader enterprise.
In addition, he said that Cigna decided to rethink the management focus for this segment, given its size.
"This is small business for us today, and it’s been shrinking in recent years," Evanko said. "The decision will allow us to further intensify focus on our core growth platforms across The Cigna Group."
Similarly, Cigna is pursuing alternatives for eviCore as it is a relatively small asset within that company that occupies significant management time. And with ongoing progress and commitments from the industry to improve prior authorization, the team had a reason to step back and rethink eviCore's operations, Evanko said.
He stressed, though, that at present there is no transaction to discuss.
"This was a proactive step we took to shape the portfolio," Evanko said. "We look forward to providing more details on all of this in the coming months."
PUBLISHED: 7:30 a.m. ET
The Cigna Group beat the Street on both earnings and revenue in the first quarter of 2026, posting $1.65 billion in profit for Q1.
That's up from the $1.3 billion haul the company reported in Q1 2025, according to its earnings report released Thursday morning. Revenues in the quarter were $68.5 billion, also rising year over year from a $65.5 billion haul.
Both figures surpassed analysts' predictions, according to Zacks Investment Research.
Cigna attributed much of the revenue growth to expansion at its Evernorth Health Services unit, which houses multiple key businesses including Express Scripts, Accredo and EviCore. Growth was partially offset by the sale of its Medicare Advantage business to Health Care Service Corporation (HCSC), Cigna said in the report.
Shares in the company rose premarket on the revenue growth news.
"We continue to improve how people experience healthcare, leveraging innovation and technology to make it more personalized, more transparent and easier to navigate," said David Cordani, CEO of the Cigna Group, in the press release. "Our strong first quarter results were driven by disciplined execution, deliberate portfolio shaping and a continued focus on targeted innovation."
Revenues at Evernorth were $58.4 billion in Q1 2026 compared to $53.7 billion in the prior-year quarter. The company said this reflects growth at both the pharmacy services unit and the specialty and care services division.
The number of pharmacy customers slimmed in the first quarter to 121 million, down from 122.3 million in the prior-year quarter and 123.6 million at the end of 2025.
Revenue at Cigna Healthcare, meanwhile, was down to $11.5 billion from $14.5 billion in the prior-year quarter. Cigna said that again reflects the HCSC transaction. For comparison, revenue for this segment in Q4 2025 was $11.2 billion, according to the report.
The company reported a medical loss ratio of 79.8% in Q1, a favorable shift from the 82.2% posted a year ago. This decrease also reflects the sale of the MA business, Cigna said.
Medical membership in the quarter was 18.3 million, up from 18 million in the prior-year quarter.