Cigna Corp. reported lower net income due to losses in a discontinued business, though the company had greater revenue, membership and adjusted income from operations, all helped by its acquisition last year of HealthSpring.

Cigna reported shareholders' net income of $380 million, or $1.31 per share, compared with $391 million, or $1.43 per share.

The company's discontinued reinsurance business that has been in run-off since 2000, covering guaranteed-income and variable-annuity products, accounted for a $51 million loss during the quarter, or 17 cents per share, compared with a $21 million loss, or 8 cents per share, during the same quarter a year before. The challenge with these investment products is that minimum benefits are guaranteed for customers regardless of the markets' performance, or if the annuitant dies before the annuity starts to pay benefits.

Cigna's second-quarter adjusted income from operations was $434 million, or $1.49 per share, compared with $401 million, or $1.47 per share, in 2011. Analysts polled by Thomson Reuters were expecting, on average, $1.42 per share.

The company reported revenue of $7.46 billion for the quarter, up from $5.5 billion during the same period a year before, as Cigna added raised rates, added customers and included HealthSpring's operations.

Cigna acquired Nashville-based HealthSpring last year for $3.8 billion.

"We continue to be pleased with the contributions from HealthSpring and the effective execution of our global growth strategy, which continues to yield strong revenue and earnings contributions from each of our ongoing businesses," said Cigna CEO David M. Cordani.

Bloomfield-based Cigna grew its medical membership to 13.8 million people as of June 30, up from 12.6 million a year before. The boost includes the addition of HealthSpring customers, accounting for a large jump in Medicare and Medicaid customers to 437,000 from 44,000, and in Medicare Part D, the prescription-drug plans, to 1.26 million from 537,000.

Cordani spoke to analysts during an investor call Thursday about HealthSpring's measured approach to adding Medicare Advantage customers. Rather than adding groups of people 65 and older, the insurer markets to individuals and brings them into a sophisticated partnership between the insurer and doctors that manages medical costs carefully.

When asked whether the November elections will have a significant affect on the Medicare Advantage market, Cordani told The Courant that the bigger issue is Baby Boomers coming into Medicare eligibility age of 65 during the next 15-to-20 years, adding about 10,000 people each day.

"It actually will come down what happens, if anything, around evolving the design of, and the payment for, retiree solutions," Cordani told The Courant in a phone interview. "Because current course and speed, growing at that level in terms of Medicare lives, at the current cost, the federal government cannot afford it, and I think that's well understood. Private solutions, like Medicare Advantage, and well-run Medicare Advantage programs, like HealthSpring delivers, actually are part of the solution going forward. We will, and have been, actively working with Congressional leaders on both sides to illuminate how those programs work. But I think this is a longer issue to unfold as opposed to a November issue from our point of view."

Membership in dental health plans increased from 10.8 million to 11.2 million between June 30, 2011 and a year later. Membership in pharmacy benefits increased from 6.28 million to 6.6 million during the same period, and behavioral care membership was up from 17.78 million to 21.2 million.

The company's medical loss ratio, a percentage of premium dollars spent on medical expenses for customers, was about 80-to-81 percent in commercial accounts and 81-to-82 percent in Medicare Advantage accounts.

At the end of the year, the company expects to have about $800 million cash available, of which $350 million could be used to make strategic acquisitions to expand its global operations, to expand services to the elderly, or to add to the company's retail capabilities, Cordani said. The rest will be retained as a financial cushion for 2013.

Shares of Cigna's stock were up $1.62 to $41.86 on Thursday.