Earlier today United Heathcare announce their results. Both segments reported better than expected. I’m a shareholder of Cigna and i closely follow all health insurance companies.
The health insurance segment got a better medical care ratio. Part of that are a reversal of previous provision, but it’s still a good signal for Cigna results in the end of the month. Cigna medical care ratio has been consistenly lower than peers (79% for Q1 2026), mainly because they have all their focus in commercial insurance, and they are very discipline in underwritting business. The optum segment had a very good development, with only their PBM business suffering. My particular take in PBM is that this is more smoke than fire.
Overall, the result is quite positive for Cigna. and we should see good results next couple of weeks.
Stephen Hemsley return to United seems to be giving returns, and the company looks back on track.
For Cigna, Bryan became the CEO in the first of this month. He has been with Cigna for more than 22 years. I have him in high regard, looking forward to hear from him in the next conference call.
UNH shares are up 8% today while Cigna is down 4%, which makes little sense to me. Why the market continues to value one company at roughly 22x earnings while valuing the the better-managed business at only 9x is beyond my comprehension
Diogo Gonçalves — Investing, Software, Essays & Projects 
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