May 2 (Reuters) - Cigna ( CI ) 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 ) 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 ( CI ), 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 ( CI ) 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 ) blockbuster arthritis drug, Humira.

Biosimilars are cheaper versions of biologic drugs.

Adjusted revenue from Cigna's ( CI ) Evernorth healthcare services

unit, which includes its pharmacy benefit management business,

jumped 16% to $53.68 billion for the quarter.