- Total revenues for the first quarter 2024 were $57.3 billion
- Shareholders' net loss for the first quarter 2024 was
$0.3 billion, or $0.97 per share
- Adjusted income from operations1 for the first
quarter 2024 was $1.9 billion,
or $6.47 per share
- 2024 outlook2 for adjusted income from
operations1,2 increased to at least $28.40 per share
BLOOMFIELD, Conn., May 2,
2024 /PRNewswire/ -- Global health company The Cigna
Group (NYSE: CI) today reported strong first quarter 2024 results
reflecting growth across its diversified portfolio of
businesses.
"Our strong first quarter results reflect the performance of our
Evernorth and Cigna Healthcare businesses, as well as our
leadership in addressing the evolving needs of those we serve with
the breadth of our differentiated capabilities," said David M. Cordani, chairman and CEO of The Cigna
Group. "Building on our track record of growth and continued
momentum in 2024, we are pleased to increase our outlook for
full-year earnings."
Shareholders' net loss for first quarter 2024 was $0.3 billion, or $0.97 per share, including a non-cash after-tax
investment loss of $1.8 billion, or
$6.31 per share, related to the
impairment of VillageMD equity securities. This compares with
shareholders' net income of $1.3
billion, or $4.24 per share,
for first quarter 2023.
The Cigna Group's adjusted income from operations1
for first quarter 2024 was $1.9
billion, or $6.47 per share,
compared with $1.6 billion, or
$5.41 per share, for first quarter
2023, reflecting strong contributions from both Cigna Healthcare
and Evernorth Health Services.
The sale of our Medicare businesses to HCSC remains on track
with the expiration of the waiting period under the Hart-Scott
Rodino Act having occurred on April
17. The transaction is expected to close in the first
quarter of 2025.
A reconciliation of shareholders' net (loss) income to adjusted
income from operations1 is provided on the following
page and on Exhibit 1 of this earnings release.
CONSOLIDATED HIGHLIGHTS
The following table includes highlights of results
and reconciliations of total revenues to adjusted
revenues3 and shareholders' net (loss) income to
adjusted income from operations1:
Consolidated
Financial Results (dollars in millions):
|
|
Three Months
Ended
|
|
March
31,
|
December
31,
|
|
2024
|
2023
|
2023
|
|
|
|
|
Total
Revenues
|
$
57,255
|
$
46,517
|
$
51,114
|
Net Realized Investment
Results from Equity Method Investments3
|
(8)
|
(38)
|
35
|
Adjusted
Revenues3
|
$
57,247
|
$
46,479
|
$
51,149
|
|
|
|
|
Consolidated
Earnings, net of taxes
|
|
|
|
Shareholders' Net
(Loss) Income
|
$
(277)
|
$
1,267
|
$
1,029
|
Net Realized Investment
Losses1
|
1,827
|
6
|
58
|
Amortization of
Acquired Intangible Assets1
|
322
|
344
|
360
|
Special
Items1
|
3
|
1
|
552
|
Adjusted Income from
Operations1
|
$
1,875
|
$
1,618
|
$
1,999
|
|
|
|
|
Shareholders' Net
(Loss) Income, per share
|
$
(0.97)
|
$
4.24
|
$
3.49
|
Adjusted Income from
Operations1, per share
|
$
6.47
|
$
5.41
|
$
6.79
|
- Total revenues for first quarter 2024 increased 23% from first
quarter 2023, primarily driven by significant growth in Evernorth
Health Services, reflecting several large client wins.
- Adjusted income from operations1 for first quarter
2024 increased 16% from first quarter 2023, reflecting strong
contributions from Cigna Healthcare and Evernorth Health
Services.
- The SG&A expense ratio4 and adjusted SG&A
expense ratio4 were 6.5% and 6.4%, respectively, for
first quarter 2024, compared to 7.6% for both ratios in first
quarter 2023, reflecting business mix shift and continued operating
efficiency.
- The debt-to-capitalization ratio was 44.3% at March 31, 2024 compared to 40.1% at December 31, 2023, primarily reflecting timing of
debt issuance, in part due to the Accelerated Share Repurchase
Agreements (ASR Agreements).
- Year to date through May 1, 2024,
the company purchased 10.1 million shares of common stock for
approximately $3.4 billion. This
includes the initial delivery of 7.6 million shares of common stock
in accordance with the ASR Agreements. Final settlement under the
ASR Agreements is expected to occur in second quarter 2024.
CUSTOMER RELATIONSHIPS
The following table summarizes The Cigna Group's medical
customers and overall customer relationships:
Customer
Relationships (in thousands):
|
|
|
|
|
|
As of the Periods
Ended
|
|
|
|
|
|
March
31,
|
December
31,
|
|
|
|
|
|
2024
|
|
|
|
|
|
2023
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Pharmacy
Customers5
|
|
|
|
|
122,767
|
|
|
|
|
|
98,749
|
98,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Healthcare
|
|
|
|
|
17,562
|
|
|
|
|
|
17,869
|
18,170
|
International
Health
|
|
|
|
|
1,622
|
|
|
|
|
|
1,604
|
1,610
|
Total Medical
Customers5
|
|
|
|
|
19,184
|
|
|
|
|
|
19,473
|
19,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Behavioral
Care
|
|
|
|
|
23,801
|
|
|
|
|
|
26,890
|
24,956
|
Dental
|
|
|
|
|
18,443
|
|
|
|
|
|
18,731
|
18,543
|
Medicare Part
D
|
|
|
|
|
2,558
|
|
|
|
|
|
2,541
|
2,550
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Customer
Relationships5
|
|
|
|
|
186,753
|
|
|
|
|
|
166,384
|
164,399
|
- Total pharmacy customers5 at March 31, 2024 increased 25% from December 31, 2023 to 122.8 million due to new
sales and the continued expansion of relationships.
- Total medical customers5 at March 31, 2024 were 19.2 million, primarily
reflecting a year-to-date decrease in Individual and Family Plans
customers, driven by targeted pricing actions in certain
geographies.
- Behavioral Care customers5 at March 31, 2024 were 23.8 million. The
year-over-year decrease was primarily due to known non-renewal of
supplemental behavioral coverage contracts, which were
insignificant to total revenues and adjusted income from
operations.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 1 for a reconciliation of adjusted income (loss)
from operations1 to shareholders' net (loss)
income.
Evernorth Health Services
This segment partners with health plans, employers, governmental
organizations and health care providers to solve challenges in the
areas of pharmacy benefits, home delivery pharmacy, specialty
pharmacy, specialty distribution, and care delivery and management
solutions.
Pharmacy Benefit Services drives high-quality, cost-effective
pharmacy care through various services such as drug claim
adjudication, retail pharmacy network administration, benefit
design consultation, drug utilization review, drug formulary
management and access to our home delivery pharmacy. Specialty and
Care Services provides specialty drugs for the treatment of complex
and rare diseases, specialty distribution of pharmaceuticals and
medical supplies, as well as clinical programs to help our clients
drive better whole-person health outcomes through Care Delivery and
Management Solutions.
Financial Results
(dollars in millions):
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
December
31,
|
|
2024
|
2023
|
2023
|
|
|
|
|
Adjusted
Revenues3
|
$
46,226
|
$
36,179
|
$
40,519
|
Adjusted Income from
Operations, Pre-Tax1
|
$
1,360
|
$
1,320
|
$
1,890
|
Adjusted Margin,
Pre-Tax6
|
2.9 %
|
3.6 %
|
4.7 %
|
- First quarter 2024 adjusted revenues3 increased 28%
relative to first quarter 2023, reflecting several large client
wins and continued expansion of existing relationships as well as
strong organic growth in Specialty and Care Services
businesses.
- First quarter 2024 adjusted income from operations,
pre-tax1, increased 3% relative to first quarter 2023,
reflecting growth in Specialty and Care Services businesses and
continued affordability improvements, partially offset by planned
investments related to the onboarding costs of new clients and
continued advancement of our digital capabilities and care
solutions.
- First quarter 2024 adjusted margin, pre-tax6, was
2.9% compared to 3.6% for first quarter 2023, reflecting several
large client wins and business mix.
Cigna Healthcare
This segment includes the U.S. Healthcare and International
Health operating segments, which provide comprehensive medical and
coordinated solutions to clients and customers. U.S. Healthcare
provides commercial medical plans and specialty benefits and
solutions for insured and self-insured clients, Medicare Advantage,
Medicare Supplement and Medicare Part D plans for seniors and
individual health insurance plans. International Health solutions
include health care coverage in our international markets, as well
as health care benefits for globally mobile individuals and
employees of multinational organizations.
Financial Results
(dollars in millions):
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
December
31,
|
|
2024
|
2023
|
2023
|
|
|
|
|
Adjusted
Revenues3,7
|
$
13,277
|
$
12,718
|
$
13,005
|
Adjusted Income from
Operations, Pre-Tax1
|
$
1,340
|
$
1,115
|
$
969
|
Adjusted Margin,
Pre-Tax6
|
10.1 %
|
8.8 %
|
7.5 %
|
- First quarter 2024 adjusted revenues3,7 grew 4%,
over first quarter 2023, reflecting premium rate increases to cover
expected increases in underlying medical costs, and business
mix.
- First quarter 2024 adjusted income from operations,
pre-tax1, increased 20% relative to first quarter 2023,
primarily driven by a lower MCR4 and continued operating
efficiency.
- The Cigna Healthcare MCR4 was 79.9% for first
quarter 2024 compared to 81.3% for first quarter 2023, reflecting
continued strong performance across our U.S. Healthcare businesses
driven by effective pricing execution, affordability initiatives,
and business mix, including within the Individual and Family Plans
business.
- Cigna Healthcare net medical costs payable8 was
$5.66 billion at March 31, 2024, $4.74
billion at March 31, 2023, and
$4.86 billion at December 31, 2023. The increase was primarily
driven by claims submission and payment process disruptions related
to a third-party cyber incident. Favorable prior year reserve
development on a gross pre-tax basis was $226 million and $144
million for the three months ended March 31, 2024 and 2023, respectively.
Corporate and Other Operations
Corporate reflects interest expense, amounts not allocated to
operating segments and includes intersegment eliminations.
Additionally, this discussion includes items reported in Other
Operations, which is comprised of Corporate Owned Life Insurance
("COLI"), the Company's run-off operations and other non-strategic
businesses.
Financial Results
(dollars in millions):
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
December
31,
|
|
2024
|
2023
|
2023
|
|
|
|
|
Adjusted (Loss) from
Operations, Pre-Tax1
|
$
(391)
|
$
(399)
|
$
(400)
|
2024 OUTLOOK2
The Cigna Group's outlook2 for full year 2024
adjusted revenues2,3 is at least $235.0 billion. The Cigna Group's
outlook2 for full year 2024 consolidated adjusted income
from operations1,2 is at least $8.065 billion, or at least $28.40 per share2. Additionally, this
outlook includes the impact of expected future share repurchases
and anticipated 2024 dividends.
(dollars in
millions, except where noted and per share amounts)
|
|
2024 Consolidated
Metrics
|
Projection for Full
Year Ending
December 31,
2024
|
Change from Prior
Projection
|
Adjusted
Revenues2,3
|
at least
$235,000
|
|
Adjusted Income from
Operations1,2
|
at least
$8,065
|
+$40
|
Adjusted Income from
Operations, per share1,2
|
at least
$28.40
|
+$0.15
|
Adjusted SG&A
Expense Ratio2,4
|
~6.1%
|
|
Adjusted Effective Tax
Rate2,9
|
20.5% to
21.0%
|
|
Cash Flow from
Operations2
|
at least
$11,000
|
|
Weighted Average Shares
Outstanding (millions)2
|
282 to
286
|
|
|
|
|
2024 Evernorth
Metrics
|
|
|
Adjusted Income from
Operations, Pre-Tax1,2
|
at least
$7,000
|
|
|
|
|
2024 Cigna
Healthcare Metrics
|
|
|
Adjusted Income from
Operations, Pre-Tax1,2
|
at least
$4,775
|
+$25
|
Medical Care
Ratio2,4
|
81.7% to
82.5%
|
-10 bps at the
midpoint
|
Total Medical
Customers2,5
|
~19.3M
|
|
The foregoing statements represent the Company's current
estimates of The Cigna Group's 2024 consolidated and segment
adjusted income from operations1,2 and other key metrics
as of the date of this release. Actual results may differ
materially depending on a number of factors. Investors are
urged to read the Cautionary Note Regarding Forward-Looking
Statements included in this release. Management does not
assume any obligation to update these estimates.
This quarterly earnings release and the Quarterly Financial
Supplement are available on The Cigna Group's website in the
Investor Relations section
(https://investors.thecignagroup.com/overview/default.aspx).
Management will be hosting a conference call to review first
quarter 2024 results and discuss full year 2024 outlook beginning
today at 8:30 a.m. ET. A link
to the conference call is available in the Investor Relations
section of The Cigna Group's website located at
https://investors.thecignagroup.com/events-and-presentations/default.aspx.
The call-in numbers for the conference call are as follows:
Live Call
(888) 566-1889 (Domestic)
(773) 799-3989 (International)
Passcode: 05022024
Replay
(866) 407-9272 (Domestic)
(203) 369-0617 (International)
It is strongly suggested you dial in to the conference call by
8:15 a.m. ET.
About The Cigna Group
The Cigna Group (NYSE: CI) is a global health company committed
to creating a better future built on the vitality of every
individual and every community. We relentlessly challenge ourselves
to partner and innovate solutions for better health. The Cigna
Group includes products and services marketed under Evernorth
Health Services, Cigna Healthcare, or its subsidiaries. The Cigna
Group maintains sales capabilities in more than 30 markets and
jurisdictions, and has approximately 187 million customer
relationships around the world. Learn more at
thecignagroup.com.
Notes:
1. Adjusted income (loss) from operations is a principal
financial measure of profitability used by The Cigna Group's
management because it presents the underlying results of operations
of the Company's businesses and permits analysis of trends in
underlying revenue, expenses and shareholders' net income (loss).
Adjusted income from operations is defined as shareholders' net
income (loss) (or income (loss) before income taxes less pre-tax
income (loss) attributable to noncontrolling interests for the
segment metric) excluding net realized investment results,
amortization of acquired intangible assets and special items. The
Cigna Group's share of certain realized investment results of its
joint ventures reported in the Cigna Healthcare segment using the
equity method of accounting are also excluded. Special items are
matters that management believes are not representative of the
underlying results of operations due to their nature or size.
Adjusted income (loss) from operations is measured on an after-tax
basis for consolidated results and on a pre-tax basis for segment
results. Consolidated adjusted income (loss) from operations is not
determined in accordance with GAAP and should not be viewed as a
substitute for the most directly comparable GAAP measure,
shareholders' net income (loss). See Exhibit 1 for a reconciliation
of consolidated adjusted income from operations to shareholders'
net income (loss).
2. Management is not able to provide a reconciliation of
adjusted income from operations to shareholders' net (loss) income,
adjusted revenues to total revenues, adjusted SG&A expense
ratio to SG&A expense ratio, or adjusted effective tax rate to
effective tax rate, on a forward-looking basis because it is unable
to predict, without unreasonable effort, certain components thereof
including (i) future net realized investment results (from
equity method investments with respect to adjusted revenues) and
(ii) future special items. These items are inherently
uncertain and depend on various factors, many of which are beyond
The Cigna Group's control. As such, any associated estimate and its
impact on shareholders' net income and total revenues could vary
materially.
The Company's outlook excludes the potential effects of any
other business combinations that may occur after the date of this
earnings release. The Company's outlook includes the potential
effects of expected future share repurchases and anticipated 2024
dividends.
The timing and actual number of shares repurchased will
depend on a variety of factors, including price, general business
and market conditions, and alternate uses of capital. The share
repurchase program may be effected through open market purchases in
compliance with Rule 10b-18 under the
Securities Exchange Act of 1934, as amended, including through Rule
10b5-1 trading plans, or privately negotiated transactions. The
program may be suspended or discontinued at any time.
3. Adjusted revenues is used by The Cigna Group's
management because it permits analysis of trends in underlying
revenue. The Company defines adjusted revenues as total revenues
excluding the following adjustments: special items and The Cigna
Group's share of certain realized investment results of its joint
ventures reported in the Cigna Healthcare segment using the equity
method of accounting. Special items are matters that management
believes are not representative of the underlying results of
operations due to their nature or size. We exclude these items from
this measure because management believes they are not indicative of
past or future underlying performance of the business. Adjusted
revenues is not determined in accordance with GAAP and should not
be viewed as a substitute for the most directly comparable GAAP
measure, total revenues. See Exhibit 1 for a reconciliation of
consolidated adjusted revenues to total revenues.
4. Operating ratios are defined as follows:
- The Cigna Healthcare medical care ratio ("MCR") represents
medical costs as a percentage of premiums for all Cigna Healthcare
risk products provided through guaranteed cost or experience-rated
funding arrangements.
- SG&A expense ratio on a GAAP basis for the first quarter
2024 represents enterprise selling, general and administrative
expenses of $3,705 million as a
percentage of total revenue of $57.3
billion at a consolidated level. SG&A expense ratio on a
GAAP basis for the first quarter 2023 represents enterprise
selling, general and administrative expenses of $3,538 million as a percentage of total revenue
of $46.5 billion at a consolidated
level.
- Adjusted SG&A expense ratio for the first quarter 2024
represents enterprise selling, general and administrative expenses
of $3,668 million excluding special
items of $37 million as a percentage
of adjusted revenue at a consolidated level. Adjusted SG&A
expense ratio for the first quarter 2023 represents enterprise
selling, general and administrative expenses of $3,537 million excluding special items of
$1 million as a percentage of
adjusted revenue at a consolidated level.
5. Customer relationships are defined as follows:
- Total medical customers includes individuals who meet any
one of the following criteria: are covered under a medical
insurance policy, managed care arrangement, or service agreement
issued by Cigna Healthcare; have access to Cigna Healthcare's
provider network for covered services under their medical plan; or
have medical claims that are administered by Cigna
Healthcare.
- During the fourth quarter of 2023, the U.S. Commercial and
U.S. Government operating segments combined to form the U.S.
Healthcare operating segment. Information presented for three
months ended March 31, 2023 has been
restated to conform to the new operating segment
presentation.
6. Adjusted margin, pre-tax, is calculated by dividing
adjusted income (loss) from operations, pre-tax by adjusted
revenues for each segment.
7. The Cigna Group owns noncontrolling interests in
certain operating joint ventures. As such, the adjusted revenues
for the Cigna Healthcare segment only include the Company's share
of the joint ventures' earnings reported in Fees and Other Revenues
using the equity method of accounting under GAAP.
8. Medical costs payable within the Cigna Healthcare
segment are presented net of reinsurance and other recoverables.
The gross medical costs payable balance was $5.86 billion as of March 31, 2024,
$5.09 billion as of December 31,
2023, and $4.96 billion as of
March 31, 2023.
9. The measure "adjusted effective tax rate" is not
determined in accordance with GAAP and should not be viewed as a
substitute for the most directly comparable GAAP measure,
"consolidated effective tax rate". We define adjusted effective tax
rate as the consolidated income tax rate applicable to the
Company's pre-tax income excluding pre-tax income (loss)
attributable to noncontrolling interests, net realized investment
results, amortization of acquired intangible assets, and special
items. The Cigna Group's share of certain realized investment
results of its joint ventures reported in the Cigna Healthcare
segment using the equity method of accounting are also excluded.
Management is not able to provide a reconciliation to the
consolidated effective tax rate on a forward-looking basis because
we are unable to predict, without unreasonable effort, certain
components thereof including (i) future net realized investment
results and (ii) future special items.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release, and oral statements made in connection with
this release, may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on The Cigna Group's current
expectations and projections about future trends, events and
uncertainties. These statements are not historical facts.
Forward-looking statements may include, among others, statements
concerning our projected adjusted income from operations outlook
for 2024 on a consolidated, per share, and segment basis; projected
adjusted revenue outlook for 2024; projected total medical customer
growth over year end 2024; projected medical care and adjusted
SG&A expense ratios; projected consolidated adjusted effective
tax rate; projected cash flow from operations; future dividends,
including projected shareholder dividends for 2024; projected
weighted average shares outstanding; future financial or operating
performance, including our ability to improve the health and
vitality of those we serve; future growth, business strategy and
strategic or operational initiatives; economic, regulatory or
competitive environments, particularly with respect to the pace and
extent of change in these areas and the impact of the developing
inflationary and interest rate pressures; capital deployment plans
and amounts available for future deployment; our prospects for
growth in the coming years; the impact of revised accounting rules
related to accounting for long-duration contracts; and other
statements regarding The Cigna Group's future beliefs,
expectations, plans, intentions, liquidity, cash flows, financial
condition or performance. You may identify forward-looking
statements by the use of words such as "believe," "expect,"
"project," "plan," "intend," "anticipate," "estimate," "predict,"
"potential," "may," "should," "will" or other words or expressions
of similar meaning, although not all forward-looking statements
contain such terms.
Forward-looking statements are subject to risks and
uncertainties, both known and unknown, that could cause actual
results to differ materially from those expressed or implied in
forward-looking statements. Such risks and uncertainties include,
but are not limited to: our ability to achieve our strategic and
operational initiatives; our ability to adapt to changes in an
evolving and rapidly changing industry; our ability to compete
effectively, differentiate our products and services from those of
our competitors and maintain or increase market share; price
competition, inflation and other pressures that could compress our
margins or result in premiums that are insufficient to cover the
cost of services delivered to our customers; the potential for
actual claims to exceed our estimates related to expected medical
claims; our ability to develop and maintain satisfactory
relationships with physicians, hospitals, other health service
providers and with producers and consultants; our ability to
maintain relationships with one or more key pharmaceutical
manufacturers or if payments made or discounts provided decline;
changes in the pharmacy provider marketplace or pharmacy networks;
changes in drug pricing or industry pricing benchmarks; our ability
to invest in and properly maintain our information technology and
other business systems; our ability to prevent or contain effects
of potential cyberattack or other privacy or data security
incidents; risks related to our use of artificial intelligence and
machine learning; political, legal, operational, regulatory,
economic and other risks that could affect our multinational
operations, including currency exchange rates; risks related to
strategic transactions and realization of the expected benefits of
such transactions, as well as integration or separation
difficulties or underperformance relative to expectations;
dependence on success of relationships with third parties; risk of
significant disruption within our operations or among key suppliers
or third parties; potential liability in connection with managing
medical practices and operating pharmacies, onsite clinics and
other types of medical facilities; the substantial level of
government regulation over our business and the potential effects
of new laws or regulations or changes in existing laws or
regulations; uncertainties surrounding participation in
government-sponsored programs such as Medicare; the outcome of
litigation, regulatory audits and investigations; compliance with
applicable privacy, security and data laws, regulations and
standards; potential failure of our prevention, detection and
control systems; unfavorable economic and market conditions, the
risk of a recession or other economic downturn and resulting impact
on employment metrics, stock market or changes in interest rates
and risks related to a downgrade in financial strength ratings of
our insurance subsidiaries; the impact of our significant
indebtedness and the potential for further indebtedness in the
future; credit risk related to our reinsurers; as well as more
specific risks and uncertainties discussed in our most recent
report on Form 10-K and subsequent reports on Forms 10-Q and 8-K
available through the Investor Relations section of
www.thecignagroup.com. You should not place undue reliance on
forward-looking statements, which speak only as of the date they
are made, are not guarantees of future performance or results, and
are subject to risks, uncertainties and assumptions that are
difficult to predict or quantify. The Cigna Group undertakes no
obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as may be required by law.
THE CIGNA
GROUP
|
|
Exhibit
1
|
COMPARATIVE SUMMARY
OF FINANCIAL RESULTS (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
(Dollars in
millions, except per share amounts)
|
|
2024
|
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmacy
revenues
|
|
$ 42,036
|
|
|
$ 32,144
|
|
|
$ 36,604
|
Premiums
|
|
11,603
|
|
|
11,025
|
|
|
11,175
|
Fees and other
revenues
|
|
3,326
|
|
|
3,071
|
|
|
3,045
|
Net investment
income
|
|
290
|
|
|
277
|
|
|
290
|
Total
Revenues
|
|
57,255
|
|
|
46,517
|
|
|
51,114
|
Net realized
investment results from certain equity method
investments
|
|
(8)
|
|
|
(38)
|
|
|
35
|
Adjusted revenues
(1)
|
|
$ 57,247
|
|
|
$ 46,479
|
|
|
$ 51,149
|
|
|
|
|
|
|
|
|
|
Shareholders' net
(loss) income
|
|
$
(277)
|
|
|
$
1,267
|
|
|
$
1,029
|
Pre-tax adjusted income
(loss) from operations by segment
|
|
|
|
|
|
|
|
|
Evernorth Health
Services
|
|
$
1,360
|
|
|
$
1,320
|
|
|
$
1,890
|
Cigna
Healthcare
|
|
1,340
|
|
|
1,115
|
|
|
969
|
Corporate and Other
Operations
|
|
(391)
|
|
|
(399)
|
|
|
(400)
|
Consolidated pre-tax
adjusted income from operations
|
|
2,309
|
|
|
2,036
|
|
|
2,459
|
Adjusted income tax expense
|
|
(434)
|
|
|
(418)
|
|
|
(460)
|
Consolidated after-tax
adjusted income from operations
|
|
$
1,875
|
|
|
$
1,618
|
|
|
$
1,999
|
|
|
|
|
|
|
|
|
|
Weighted average shares
(in thousands) (2)
|
|
289,717
|
|
|
298,999
|
|
|
294,565
|
Common shares
outstanding (in thousands)
|
|
284,014
|
|
|
296,249
|
|
|
292,504
|
SHAREHOLDERS' EQUITY
at March 31,
|
|
$ 41,181
|
|
|
$ 44,502
|
|
|
|
SHAREHOLDERS' EQUITY
PER SHARE at March 31,
|
|
$ 145.00
|
|
|
$ 150.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
2024
|
|
2023
|
|
2023
|
(Dollars in
millions, except per share amounts)
|
Pre-tax
|
After-tax
|
|
Pre-tax
|
After-tax
|
|
Pre-tax
|
After-tax
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' NET
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net
(loss) income
|
|
$
(277)
|
|
|
$
1,267
|
|
|
$
1,029
|
Adjustments to
reconcile adjusted income from operations
|
|
|
|
|
|
|
|
|
Net realized
investment losses (3)
|
$
1,828
|
1,827
|
|
$ 18
|
6
|
|
$ 69
|
58
|
Amortization of
acquired intangible assets
|
423
|
322
|
|
459
|
344
|
|
451
|
360
|
Special
Items
|
|
|
|
|
|
|
|
|
Integration and
transaction-related costs
|
37
|
29
|
|
1
|
1
|
|
25
|
20
|
Loss (gain) on sale of
businesses
|
19
|
(43)
|
|
—
|
—
|
|
1,478
|
1,410
|
Deferred tax expenses
(benefits), net
|
—
|
17
|
|
—
|
—
|
|
—
|
(1,071)
|
Charge for
organizational efficiency plan
|
—
|
—
|
|
—
|
—
|
|
252
|
193
|
Adjusted income from
operations (5)
|
|
$
1,875
|
|
|
$
1,618
|
|
|
$
1,999
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net
(loss) income (4)
|
|
$
(0.97)
|
|
|
$
4.24
|
|
|
$
3.49
|
Adjustments to
reconcile to adjusted income from operations
|
|
|
|
|
|
|
|
|
Net realized
investment losses (3)
|
$
6.31
|
6.31
|
|
$
0.06
|
0.02
|
|
$
0.23
|
0.20
|
Amortization of
acquired intangible assets
|
1.46
|
1.10
|
|
1.54
|
1.15
|
|
1.53
|
1.22
|
Special
Items
|
|
|
|
|
|
|
|
|
Integration and
transaction-related costs
|
0.12
|
0.10
|
|
—
|
—
|
|
0.08
|
0.07
|
Loss (gain) on sale of
businesses
|
0.07
|
(0.15)
|
|
—
|
—
|
|
5.02
|
4.79
|
Deferred tax expenses
(benefits), net
|
—
|
0.06
|
|
—
|
—
|
|
—
|
(3.64)
|
Charge for
organizational efficiency plan
|
—
|
—
|
|
—
|
—
|
|
0.86
|
0.66
|
Adjusted income from
operations (2)
(5)
|
|
$
6.47
|
|
|
$
5.41
|
|
|
$
6.79
|
|
(1) Adjusted
revenues is defined as total revenues excluding the following
adjustments: special items and The Cigna Group's share of certain
realized investment results of its joint ventures reported in the
Cigna Healthcare segment using the equity method of accounting.
These items are excluded because they are not indicative of past or
future underlying performance of our businesses.
|
(2) The calculation
of weighted average shares includes the impact of potentially
dilutive securities for the calculation of Adjusted income from
operations per share.
|
(3) Includes Net
realized investment losses as presented in our Consolidated
Statements of Income, as well as the Company's share of certain
realized investment results of its joint ventures reported in the
Cigna Healthcare segment using the equity method of accounting,
which are presented within Fees and other revenues in our
Consolidated Statements of Income.
|
(4) For the three
months ended March 31, 2024, due to the anti-dilutive effect
resulting from the Shareholders' net loss for the period, the
impact of potentially dilutive securities has been excluded from
the calculation of weighted average shares for the calculation of
diluted Shareholders' net loss per share. Weighted average shares
used to calculate diluted Shareholders' net loss per share for the
three months ended March 31, 2024 were 286,465 thousand. For the
three months ended March 31, 2023 and December 31, 2023, the
calculation of weighted average shares includes the impact of
potentially dilutive securities for the calculation of Shareholders
net income.
|
(5) Adjusted income
(loss) from operations is defined as shareholders' net income
(loss) (or income (loss) before income taxes less pre-tax income
(loss) attributable to noncontrolling interests for the segment
metric) excluding the following adjustments: net realized
investment results, amortization of acquired intangible assets and
special items. The Cigna Group's share of certain realized
investment results of its joint ventures reported in the Cigna
Healthcare segment using the equity method of accounting are also
excluded.
|
INVESTOR RELATIONS CONTACT:
Ralph Giacobbe
860-787-7968
Ralph.Giacobbe@TheCignaGroup.com
MEDIA CONTACT:
Justine Sessions
860-810-6523
Justine.Sessions@Evernorth.com
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SOURCE The Cigna Group