- Reaffirming Previously Provided Outlook for Full-Year 2024,
and adjusted EPS growth of at least 10% in 2025
- Confirming it is not Pursuing a Combination with Humana
Inc.
- Confirming Continuing to Use Capital to Drive Shareholder
Value, including Share Repurchase and Dividends
BLOOMFIELD, Conn., Nov. 11,
2024 /PRNewswire/ -- Global health company The Cigna
Group (NYSE: CI) officials expect to participate in meetings with
investors and analysts over the next several weeks. During these
meetings, The Cigna Group expects to reaffirm projected full year
2024 consolidated adjusted income from operations of at least
$28.40 per share and adjusted EPS
growth of at least 10% in 2025. Additionally, in light of recent
and persistent speculation, The Cigna Group expects to communicate
that the company is not pursuing a combination with Humana Inc. The
Cigna Group remains committed to its established M&A criteria
and would only consider acquisitions that are strategically
aligned, financially attractive, and have a high probability to
close.
The Cigna Group continues to deliver shareholder value
through focused execution against stated operational and financial
targets, and via disciplined capital deployment including dividends
and share repurchase. Specific to share repurchase, year-to-date
the company has repurchased $6
billion of stock, including $1
billion thus far in the fourth quarter. The company expects
to continue actively repurchasing its shares in the fourth quarter
and in 2025. It will use the majority of proceeds from the sale of
its Medicare businesses expected to close in the first quarter of
2025 for share repurchase and has $5.3
billion remaining on its share repurchase
authorization.
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 184 million customer
relationships around the world. Learn more at
thecignagroup.com.
Disclosures
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 (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 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).
Management is not able to provide a reconciliation of adjusted
income from operations to shareholders' net income (loss)
(including on a per share basis) 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
our control. As such, any associated estimate and its impact on
shareholders' net income could vary materially.
The Company's outlook excludes the potential effects of any
other business combinations that may occur after the date of this
press 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.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release and oral statements made with respect to
information contained in this Report, 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 weighted average shares outstanding;
future dividends; 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 developing inflationary and
interest rate pressures; capital deployment plans and amounts
available for future deployment; our prospects for growth in the
coming years; strategic transactions; the anticipated closing of
the sale of the Medicare business; expectations related to our
Medicare Advantage Capitation Rates; 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 a 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 an
impairment of goodwill, intangible assets and/or investments
(including as a result of the failure to realize the expected
benefits of strategic transactions, as well as integration or
separation difficulties or underperformance of such transactions
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.
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