Cigna raises full-year profit forecast, latest to beat medical cost estimates

May 2 (Reuters) - Cigna CI.N on Friday raised its full-year earnings forecast and beat estimates for quarterly profit, helped by strong performance in its pharmacy benefit management business and lower-than-expected medical costs in its insurance arm.

The company is the latest insurer to outperform estimates, days after industry bellwether UnitedHealth UNH.N rattled investor confidence in the sector as it missed quarterly estimates for the first time since 2008, and lowered its outlook for the full year, in part due to high medical costs in its Medicare Advantage plans.

Cigna, however, is insulated from higher costs in MA plans, as it relies more on its pharmacy benefit management and commercial health insurance businesses. Last year, it signed a $3.3 billion deal to sell its Medicare business to Health Care Service Corp.

The company's medical care ratio - the percentage of premiums spent on medical care - rose to 82.2% in the reported quarter from 79.9% a year earlier - but was lower than analysts' average expectation of 82.63%, according to data compiled by LSEG.

Cigna has, however, said it expects costs in its stop-loss insurance plans -- which help protect health plan sponsors, typically an employer, when medical claims pass a pre-designated threshold -- to be higher in 2025.

The health insurer forecast an annual profit of at least $29.60 per share, compared with its previous estimate of $29.50 and analysts' estimate of $29.61.

On an adjusted basis, the company's adjusted income from operations rose to $6.74 per share in the first quarter from $6.47 per share a year earlier, and came in above analysts' average estimate of $6.35.

The company benefited from increased adoption of biosimilars of AbbVie's ABBV.N blockbuster arthritis drug, Humira. Biosimilars are cheaper versions of biologic drugs.

Adjusted revenue from Cigna's Evernorth healthcare services unit, which includes its pharmacy benefit management business, jumped 16% to $53.68 billion for the quarter.