Cigna Corp. fell the most in more than two years after the health insurer said first-quarter earnings probably will decline and provided a full-year forecast lower than analysts expected.
Shares of Bloomfield, Connecticut-based Cigna sank 9.3 percent to $77.47 at 4 p.m. New York time, the biggest single day decline since August, 2011.
Earnings for 2014 are forecast to be $6.80 to $7.20 a share, the company said in a statement today. The range was less than the $7.31 average of analyst estimates compiled by Bloomberg. Fourth-quarter profit declined to $1.39 a share, less than analysts estimated, as costs for medical services increased.
Medical costs were “higher than expected” for Medicare Advantage coverage, Chief Executive Officer David Cordani said on a conference call today. Medicare Advantage is insurers’ private version of the U.S. government program for the elderly.
First-quarter earnings are expected to fall from a year earlier, Cordani said.