Cigna Group stock was falling sharply after the health insurer missed quarterly earnings estimates and issued light guidance amid higher medical costs. Cigna stock dropped 9% to $276 in premarket trading Thursday.

Shares of Cigna ( CI -8.00%) were dropping Thursday. The stock was down 8.4% as of 1:20 p.m. ET but had lost as much as 11.3% earlier in the day. The leg down comes as the S&P 500 gained 0.2% and the Nasdaq Composite lost 0.2%.

What Happened? Shares of health insurance company Cigna (NYSE:CI) fell 8.5% in the afternoon session after the company reported underwhelming fourth quarter earnings. EPS in the quarter missed and its full-year EPS guidance missed significantly.

Cigna forecast annual profit below Wall Street expectations on Thursday and missed estimates for the fourth quarter, as high-cost claims in employer-sponsored plans drove up expenses in its backup insurance product.

Cigna Group shares fell sharply after the health insurer reported fourth-quarter profit that was dragged down by medical costs, a trend that’s concerned investors in the sector for months.

Cigna (CI) stock falls as the managed care company's Q4 2024 earnings miss the consensus due to an unexpected rise in medical costs. Read more here.