Adds comments on exiting Obamacare business in paragraphs 2-4

By Sriparna Roy and Sneha S K

April 30 (Reuters) - Cigna CI.N slightly raised its annual adjusted profit forecast on Thursday after beating first-quarter earnings estimates due to lower-than-expected medical costs and said it will stop offering subsidized Obamacare plans.

Brian Evanko, who is set to take over as top boss after longtime CEO David Cordani retires effective July 1, said the company would exit subsidized plans offered under the Affordable Care Act, also known as Obamacare, at the end of this year and focus on its traditional employer-sponsored healthcare business and pharmacy benefits management.

"We did not make this decision lightly, and appreciate the importance of ensuring patients have continuity through the transition," Evanko said in an earnings call.

"There are no changes to coverage or networks related to this announcement, and we will support members through their open enrollment transitions into 2027."

Cigna had exited government-backed Medicare Advantage health plans for Americans aged 65 and older and those with disabilities last year.

Financial expectations for the Obamacare business in 2026 were unchanged, the company said.

Cigna is also shifting some customers to ​a new model that excludes after-market discounts, known as rebates, a move it says ​will squeeze margins over the next two years.

SOLID QUARTER

Quarterly medical loss ratio, or the percentage of premiums spent on medical care, stood at 79.8% in the quarter. Analysts expected a ratio of 81.56%, according to LSEG data.

The lower costs were due to the company selling its Medicare business to Health Care Service Corp.

For the reported quarter, adjusted revenue at its Evernorth health services unit, which houses its pharmacy benefit management unit and specialty pharmacy, rose nearly 9% to $58.44 billion.

Pharmacy benefit managers help negotiate drug prices and coverage with manufacturers on behalf of employers and health plan clients.

"This was a solid quarter for Cigna driven by pricing discipline in Healthcare and PBM margins modestly better than expected, and in line with the guidance direction we had expected," said Bernstein analyst Lance Wilkes.

Cigna now sees 2026 adjusted profit per share to be $30.35, up 10 cents from its previous expectations. Analysts expected $30.33 per share.

The company earned adjusted quarterly profit of $7.79 per share, surpassing analysts' estimate of $7.61 per share.