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The Cigna Group Affirming Its Capital Priorities

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The Cigna Group has reaffirmed its capital priorities and financial outlook for full-year 2024 and 2025. The company expects to achieve a consolidated adjusted income from operations of at least $28.40 per share in 2024 and anticipates an adjusted EPS growth of at least 10% in 2025.

Additionally, Cigna confirmed it is not pursuing a combination with Humana Inc. Instead, it remains focused on strategic, financially attractive acquisitions with a high probability of closing.

Cigna continues to drive shareholder value through dividends and share repurchases. Year-to-date, the company has repurchased $6 billion of stock, including $1 billion in Q4. The company plans to use proceeds from the sale of its Medicare businesses, expected to close in Q1 2025, for further share repurchases and has $5.3 billion remaining on its authorization.

Il Gruppo Cigna ha riaffermato le sue priorità in materia di capitale e le previsioni finanziarie per l'intero anno 2024 e 2025. L'azienda prevede di raggiungere un reddito operativo consolidato rettificato di almeno 28,40 dollari per azione nel 2024 e anticipa una crescita dell'EPS rettificato di almeno il 10% nel 2025.

Inoltre, Cigna ha confermato di non perseguire una fusione con Humana Inc. Invece, rimane focalizzata su acquisizioni strategiche finanziariamente attraenti con un'alta probabilità di chiusura.

Cigna continua a generare valore per gli azionisti attraverso dividendi e riacquisti di azioni. Fino ad oggi, l'azienda ha riacquistato azioni per 6 miliardi di dollari, inclusi 1 miliardo nel quarto trimestre. L'azienda prevede di utilizzare i proventi dalla vendita delle sue attività Medicare, prevista per il primo trimestre del 2025, per ulteriori riacquisti di azioni e ha 5,3 miliardi di dollari rimanenti nella sua autorizzazione.

El Grupo Cigna ha reafirmado sus prioridades de capital y perspectivas financieras para todo el año 2024 y 2025. La compañía espera lograr un ingreso operativo ajustado consolidado de al menos 28,40 dólares por acción en 2024 y anticipa un crecimiento del EPS ajustado de al menos el 10% en 2025.

Además, Cigna confirmó que no está persiguiendo una combinación con Humana Inc. En cambio, se mantiene enfocada en adquisiciones estratégicas y financieramente atractivas con una alta probabilidad de cierre.

Cigna continúa generando valor para los accionistas a través de dividendos y recompras de acciones. Hasta la fecha, la compañía ha recomprado acciones por 6 mil millones de dólares, incluidos 1 mil millones en el cuarto trimestre. La empresa planea utilizar los ingresos de la venta de sus negocios de Medicare, que se espera cerrar en el primer trimestre de 2025, para más recompras de acciones y tiene 5,3 mil millones de dólares restantes en su autorización.

시그나 그룹은 2024년과 2025년 전체 연도에 대한 자본 우선사항과 재무 전망을 재확인했습니다. 이 회사는 2024년 주당 최소 28.40달러의 조정된 운영 수익을 달성할 것으로 예상하며, 2025년에는 조정된 EPS가 최소 10% 성장할 것으로 예상합니다.

또한, Cigna는 Humana Inc.와의 합병을 추진하지 않고 있다고 확인했습니다. 대신, Cigna는 높은 마감 확률을 가진 전략적이고 재정적으로 매력적인 인수에 집중하고 있습니다.

Cigna는 배당금과 자사주 매입을 통해 주주 가치를 지속적으로 높이고 있습니다. 올해 현재까지 이 회사는 60억 달러의 주식을 재매입했으며, 4분기에 10억 달러를 포함합니다. 이 회사는 2025년 1분기에 종료될 것으로 예상되는 Medicare 사업 매각에서 얻은 수익을 추가적인 자사주 매입에 사용할 계획이며, 53억 달러의 잔임 권한이 남아 있습니다.

Le Groupe Cigna a réaffirmé ses priorités en matière de capital et ses perspectives financières pour l'année 2024 et 2025. L'entreprise s'attend à atteindre un revenu d'exploitation ajusté consolidé d'au moins 28,40 dollars par action en 2024 et anticipe une croissance de l'EPS ajusté d'au moins 10% en 2025.

De plus, Cigna a confirmé qu'elle ne poursuivait pas de fusion avec Humana Inc. Au lieu de cela, elle reste concentrée sur des acquisitions stratégiques, financièrement attrayantes, avec une forte probabilité de conclusion.

Cigna continue de créer de la valeur pour les actionnaires par le biais de dividendes et de rachats d'actions. Depuis le début de l'année, l'entreprise a racheté des actions pour 6 milliards de dollars, dont 1 milliard au quatrième trimestre. L'entreprise envisage d'utiliser les produits de la vente de ses activités Medicare, prévue pour clôturer au premier trimestre de 2025, pour d'autres rachats d'actions et dispose de 5,3 milliards de dollars restants dans son autorisation.

Die Cigna-Gruppe hat ihre Kapitalprioritäten und finanziellen Aussichten für das gesamte Jahr 2024 und 2025 bestätigt. Das Unternehmen erwartet einen konsolidierten, bereinigten Ertrag aus dem operativen Geschäft von mindestens 28,40 US-Dollar pro Aktie im Jahr 2024 und antizipiert ein bereinigtes EPS-Wachstum von mindestens 10% im Jahr 2025.

Darüber hinaus bestätigte Cigna, dass es keine Fusion mit Humana Inc. anstrebt. Stattdessen konzentriert sich das Unternehmen auf strategisch und finanziell attraktive Übernahmen mit hoher Abschlusswahrscheinlichkeit.

Cigna treibt weiterhin den Shareholder-Value durch Dividenden und Aktienrückkäufe voran. Im laufenden Jahr hat das Unternehmen Aktien im Wert von 6 Milliarden US-Dollar zurückgekauft, darunter 1 Milliarde im 4. Quartal. Das Unternehmen plant, die Einnahmen aus dem Verkauf seiner Medicare-Geschäfte, die im 1. Quartal 2025 abgeschlossen werden sollen, für weitere Aktienrückkäufe zu verwenden, und verfügt über 5,3 Milliarden US-Dollar, die noch zur Verfügung stehen.

Positive
  • Reaffirmed full-year 2024 consolidated adjusted income from operations of at least $28.40 per share.
  • Projected adjusted EPS growth of at least 10% in 2025.
  • Year-to-date share repurchases totaling $6 billion, including $1 billion in Q4.
  • Plans to use proceeds from Medicare business sale for further share repurchases.
  • $5.3 billion remaining on share repurchase authorization.
Negative
  • None.

Insights

A significant development for Cigna as they officially end merger speculation with Humana and double down on their existing strategy. The company's robust $6 billion in year-to-date share repurchases, including $1 billion in Q4, signals strong confidence in their standalone value proposition. Their projected $28.40 EPS outlook for 2024 and commitment to 10% EPS growth in 2025 demonstrates solid financial fundamentals.

The confirmation of using Medicare business sale proceeds primarily for share repurchases, with $5.3 billion remaining in authorization, indicates a substantial near-term catalyst for shareholder value. This capital return strategy, combined with ongoing dividend payments, presents a clear path for value creation without the execution risks of a major merger.

The decision to remain independent rather than pursue a Humana merger reflects a strategic pivot that could benefit shareholders. The healthcare insurance market remains highly concentrated and a merger would have faced significant regulatory scrutiny. By focusing on organic growth and capital return, Cigna is taking a more predictable path that should reduce market uncertainty.

The commitment to aggressive share repurchases suggests management views the current stock valuation as attractive. The Medicare business divestiture proceeds will provide additional firepower for capital returns, potentially creating a sustained positive catalyst for the stock price throughout 2025.

  • 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

FAQ

What is Cigna's financial outlook for 2024?

Cigna expects a consolidated adjusted income from operations of at least $28.40 per share for full-year 2024.

What is Cigna's projected EPS growth for 2025?

Cigna anticipates an adjusted EPS growth of at least 10% in 2025.

Is Cigna pursuing a combination with Humana Inc.?

No, Cigna has confirmed it is not pursuing a combination with Humana Inc.

How much stock has Cigna repurchased in 2024?

Cigna has repurchased $6 billion of stock year-to-date, including $1 billion in the fourth quarter.

What will Cigna do with the proceeds from its Medicare business sale?

Cigna plans to use the majority of proceeds from the sale of its Medicare businesses for share repurchases.

The Cigna Group

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