Let’s dig into the relative performance of Cigna (NYSE: CI) and its peers as we unravel the now-completed Q4 health insurance providers earnings season.

Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.

The 11 health insurance providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

While some health insurance providers stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.

Cigna (NYSE: CI)

Serving both corporate clients and individual customers, Cigna (NYSE: CI) offers health insurance and pharmacy benefit management services that cover medical, dental, behavioral health, and vision needs.

Cigna reported revenues of $65.65 billion, up 28.4% year on year. This print exceeded analysts’ expectations by 4.5%. Despite the top-line beat, it was still a slower quarter for the company with full-year operating income guidance missing analysts’ expectations.

"While higher medical costs in our stop loss product impacted fourth quarter earnings, we are taking corrective actions to address these near-term pressures and we are simultaneously taking steps to further advance our long-term growth strategy," said David M. Cordani, chairman and CEO of The Cigna Group.

Cigna delivered the weakest full-year guidance update of the whole group. The company added 96,000 customers to reach a total of 17.5 million. Interestingly, the stock is up 1.9% since reporting and currently trades at $309.05.

Is now the time to buy Cigna? Access our full analysis of the earnings results here, it’s free.

Best Q4: Progyny (NASDAQ: PGNY)

Founded in 2008, Progyny (NASDAQ: PGNY) provides fertility and family-building benefits solutions, integrating technology and personalized care to support individuals and employers in managing reproductive healthcare.

Progyny reported revenues of $298.4 million, up 10.6% year on year, outperforming analysts’ expectations by 7.6%. The business had a very strong quarter with a solid beat of analysts’ sales volume estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

Progyny achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 16.8% since reporting. It currently trades at $19.01.

Is now the time to buy Progyny? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Molina Healthcare (NYSE: MOH)

Founded in 1980 as a clinic for underserved California residents, Molina Healthcare (NYSE: MOH) provides health insurance to individuals and families who are eligible for government-sponsored programs such as Medicare (elderly) and Medicaid (low-income).

Molina Healthcare reported revenues of $10.5 billion, up 16% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.

The stock is flat since the results and currently trades at $314.21.

Read our full analysis of Molina Healthcare’s results here.

Clover Health (NASDAQ: CLOV)

Founded in 2014, Clover Health (NASDAQ: CLOV) is a tech-driven health insurance company that offers Medicare Advantage plans to seniors, focusing on improving health outcomes through data analytics and a unique care model.

Clover Health reported revenues of $337 million, up 7.9% year on year. This print came in 3.4% below analysts' expectations. Zooming out, it was actually a strong quarter as it recorded a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.

Clover Health had the weakest performance against analyst estimates among its peers. The company added 1,554 customers to reach a total of 82,664. The stock is down 10.7% since reporting and currently trades at $3.69.

Read our full, actionable report on Clover Health here, it’s free.

Cencora (NYSE: COR)

The result of the 2001 merger between AmeriSource Health and Bergen Brunswig, Cencora (NYSE: COR) supplies pharmaceuticals and healthcare services to hospitals, pharmacies, clinics, and other facilities.

Cencora reported revenues of $81.49 billion, up 12.8% year on year. This result surpassed analysts’ expectations by 5.2%. Overall, it was a very strong quarter as it also produced a narrow beat of analysts’ full-year EPS guidance estimates.

The stock is flat since reporting and currently trades at $252.11.

Read our full, actionable report on Cencora here, it’s free.

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