The Cigna Group Reports Fourth Quarter and Full Year 2024 Results, Establishes 2025 Outlook and Increases Dividend
The Cigna Group (NYSE: CI) reported strong financial results for 2024, with total revenues increasing 27% to $247.1 billion. Shareholders' net income was $3.4 billion ($12.12 per share), while adjusted income from operations reached $7.7 billion ($27.33 per share).
The company's performance showed continued strength in Evernorth Health Services, though Cigna Healthcare faced challenges from higher stop loss medical costs. Total customer relationships grew 11% to 182.2 million, with pharmacy customers increasing 20% to 118.3 million.
Looking ahead to 2025, Cigna projects adjusted income from operations of at least $7.9 billion ($29.50 per share). The Board approved an 8% increase in quarterly dividend to $1.51 per share and authorized an additional $6.0 billion for share repurchases, bringing total authorization to $10.3 billion.
Il Gruppo Cigna (NYSE: CI) ha riportato risultati finanziari solidi per il 2024, con ricavi totali in aumento del 27% a 247,1 miliardi di dollari. L'utile netto per gli azionisti è stato di 3,4 miliardi di dollari (12,12 dollari per azione), mentre l'utile operativo rettificato ha raggiunto i 7,7 miliardi di dollari (27,33 dollari per azione).
La performance dell'azienda ha mostrato una continua forza nei servizi sanitari di Evernorth, sebbene Cigna Healthcare abbia affrontato sfide dovute all'aumento dei costi medici di stop loss. Le relazioni totali con i clienti sono cresciute dell'11% a 182,2 milioni, con i clienti delle farmacie in aumento del 20% a 118,3 milioni.
Guardando avanti al 2025, Cigna prevede un utile operativo rettificato di almeno 7,9 miliardi di dollari (29,50 dollari per azione). Il Consiglio ha approvato un aumento dell'8% del dividendo trimestrale a 1,51 dollari per azione e ha autorizzato ulteriori 6,0 miliardi di dollari per il riacquisto di azioni, portando l'autorizzazione totale a 10,3 miliardi di dollari.
El Grupo Cigna (NYSE: CI) reportó resultados financieros sólidos para 2024, con ingresos totales que aumentaron un 27% a 247.1 mil millones de dólares. El ingreso neto de los accionistas fue de 3.4 mil millones de dólares (12.12 dólares por acción), mientras que el ingreso operativo ajustado alcanzó los 7.7 mil millones de dólares (27.33 dólares por acción).
El desempeño de la compañía mostró una continua fortaleza en los Servicios de salud de Evernorth, aunque Cigna Healthcare enfrentó desafíos debido al aumento de los costos médicos de stop loss. Las relaciones totales con los clientes crecieron un 11% a 182.2 millones, con los clientes de farmacias aumentando un 20% a 118.3 millones.
Mirando hacia 2025, Cigna proyecta un ingreso operativo ajustado de al menos 7.9 mil millones de dólares (29.50 dólares por acción). La Junta aprobó un aumento del 8% en el dividendo trimestral a 1.51 dólares por acción y autorizó 6.0 mil millones de dólares adicionales para la recompra de acciones, elevando la autorización total a 10.3 mil millones de dólares.
시그나 그룹 (NYSE: CI)는 2024년 강력한 재무 성과를 보고했으며, 총 수익은 27% 증가하여 2471억 달러에 이르렀습니다. 주주 당 순이익은 34억 달러(주당 12.12달러)였으며, 조정된 운영 수익은 77억 달러(주당 27.33달러)에 달했습니다.
회사의 성과는 에버노스 헬스 서비스의 지속적인 강세를 보여주었지만, 시그나 헬스케어는 증가하는 스탑 로스 의료 비용으로 어려움에 직면했습니다. 총 고객 관계는 11% 증가하여 1억 8220만 개에 이르렀고, 약국 고객은 20% 증가하여 1억 1830만 개에 달했습니다.
2025년을 바라보며 시그나는 조정된 운영 수익을 최소 79억 달러(주당 29.50달러)로 예상하고 있습니다. 이사회는 분기 배당금을 8% 증가시켜 주당 1.51달러로 결정했으며, 주식 재매입을 위해 추가로 60억 달러를 승인하여 총 승인 금액을 103억 달러로 늘렸습니다.
Le Groupe Cigna (NYSE: CI) a annoncé de solides résultats financiers pour 2024, avec des revenus totaux en hausse de 27 % à 247,1 milliards de dollars. Le bénéfice net des actionnaires s'élevait à 3,4 milliards de dollars (12,12 dollars par action), tandis que le bénéfice opérationnel ajusté a atteint 7,7 milliards de dollars (27,33 dollars par action).
La performance de l'entreprise a montré une force continue dans les services de santé d'Evernorth, bien que Cigna Healthcare ait été confronté à des défis liés à l'augmentation des coûts médicaux de stop loss. Le total des relations clients a augmenté de 11 % pour atteindre 182,2 millions, tandis que le nombre de clients en pharmacie a augmenté de 20 % pour atteindre 118,3 millions.
En prévision de 2025, Cigna projette un bénéfice opérationnel ajusté d'au moins 7,9 milliards de dollars (29,50 dollars par action). Le Conseil a approuvé une augmentation de 8 % du dividende trimestriel à 1,51 dollar par action et a autorisé 6,0 milliards de dollars supplémentaires pour le rachat d'actions, portant l'autorisation totale à 10,3 milliards de dollars.
Die Cigna Group (NYSE: CI) berichtete für 2024 über starke finanzielle Ergebnisse, mit einem Anstieg der Gesamteinnahmen um 27% auf 247,1 Milliarden US-Dollar. Das Nettoergebnis der Aktionäre betrug 3,4 Milliarden US-Dollar (12,12 US-Dollar pro Aktie), während das bereinigte Betriebsergebnis 7,7 Milliarden US-Dollar (27,33 US-Dollar pro Aktie) erreichte.
Die Leistung des Unternehmens zeigte eine anhaltende Stärke in den Evernorth Health Services, obwohl Cigna Healthcare mit höheren Stop-Loss-Gesundheitskosten konfrontiert war. Die Gesamtzahl der Kundenbeziehungen wuchs um 11% auf 182,2 Millionen, wobei die Zahl der Apothekenkunden um 20% auf 118,3 Millionen anstieg.
Für 2025 prognostiziert Cigna ein bereinigtes Betriebsergebnis von mindestens 7,9 Milliarden US-Dollar (29,50 US-Dollar pro Aktie). Der Vorstand genehmigte eine Erhöhung der vierteljährlichen Dividende um 8% auf 1,51 US-Dollar pro Aktie und genehmigte zusätzlich 6,0 Milliarden US-Dollar für den Aktienrückkauf, wodurch die Gesamtermächtigung auf 10,3 Milliarden US-Dollar erhöht wurde.
- Total revenues increased 27% to $247.1 billion in 2024
- Adjusted income from operations grew 4% to $7.7 billion in 2024
- Total customer relationships increased 11% to 182.2 million
- Pharmacy customers grew 20% to 118.3 million
- Board approved $6.0 billion additional share repurchase authorization
- Quarterly dividend increased 8% to $1.51 per share
- Higher stop loss medical costs impacted Cigna Healthcare performance
- Medical Care Ratio increased to 87.9% in Q4 2024 from 82.2% in Q4 2023
- $2.7 billion non-cash after-tax investment loss related to VillageMD equity securities
- Decrease in Individual and Family Plans customers
Insights
The financial results reveal a complex narrative of Cigna's operational transformation and challenges. The headline 27% revenue growth to
Evernorth's exceptional performance is driven by three key factors:
- Strategic client acquisitions in pharmacy benefit services, leading to 46% revenue growth
- Successful biosimilar adoption strategy, particularly with Humira alternatives
- 18% growth in specialty and care services, demonstrating successful market penetration
However, the core insurance business faces notable pressures:
- Medical Care Ratio deteriorated to
87.9% in Q4, up from82.2% year-over-year, primarily due to stop loss challenges - Operating efficiency improved with adjusted SG&A ratio declining to
5.7% from7.4%
The strategic outlook is bolstered by shareholder-friendly actions:
- Dividend increase of
8% to$1.51 per share quarterly - Expanded share repurchase authorization to
$10.3 billion - The pending Medicare business divestiture to HCSC should streamline operations and improve focus on core growth areas
The 2025 outlook of at least
- Total revenues for 2024 increased
27% to$247.1 billion - Shareholders' net income for 2024 was
$3.4 billion $12.12 - Adjusted income from operations1 for 2024 was
$7.7 billion $27.33 - 2025 adjusted income from operations1,2 is projected to be at least
$7.9 billion $29.50 - Board of Directors declared an
8% increase in the quarterly dividend to$1.51 $6.0 billion $10.3 billion
"While higher medical costs in our stop loss product impacted fourth quarter earnings, we are taking corrective actions to address these near-term pressures and we are simultaneously taking steps to further advance our long-term growth strategy," said David M. Cordani, chairman and CEO of The Cigna Group. "Through a dynamic environment, we are continuing to focus on building a sustainable model for healthcare by addressing the areas that matter most to our patients and clients, including greater transparency, support, and value."
Shareholders' net income for fourth quarter 2024 was
The Cigna Group's adjusted income from operations1 for fourth quarter 2024 was
Shareholders' net income for 2024 was
The Cigna Group's adjusted income from operations1 for 2024 was
The previously announced divestiture of the Company's Medicare businesses to HCSC is expected to close in the first quarter of 2025.
A reconciliation of shareholders' net 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 income to adjusted income from operations1:
Consolidated Financial Results (dollars in millions): | ||||
Three Months Ended | Year Ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Total Revenues | $ 65,649 | $ 51,114 | $ 247,121 | 195,265 |
Net Investment Results from Equity Method Investments3 | 34 | 35 | (204) | 57 |
Special Item related to Impairment of dividend receivable3 | — | — | 182 | — |
Adjusted Revenues3 | $ 65,683 | $ 51,149 | $ 247,099 | $ 195,322 |
Consolidated Earnings, net of taxes | ||||
Shareholders' Net Income | $ 1,424 | $ 1,029 | $ 3,434 | $ 5,164 |
Net Investment (Gains) Losses1 | (18) | 58 | 2,529 | 114 |
Amortization of Acquired Intangible Assets1 | 375 | 360 | 1,347 | 1,413 |
Special Items1 | 64 | 552 | 431 | 757 |
Adjusted Income from Operations1 | $ 1,845 | $ 1,999 | $ 7,741 | $ 7,448 |
Shareholders' Net Income, per share | $ 5.13 | $ 3.49 | $ 12.12 | $ 17.39 |
Adjusted Income from Operations1, per share | $ 6.64 | $ 6.79 | $ 27.33 | $ 25.09 |
- Total revenues for fourth quarter and full year 2024 increased
28% and27% , respectively, relative to fourth quarter and full year 2023, primarily driven by significant growth in Evernorth Health Services, reflecting large client wins and strong specialty volume growth. - Adjusted income from operations1 for fourth quarter 2024 decreased
8% from fourth quarter 2023, primarily driven by lower contributions from Cigna Healthcare due to higher stop loss medical costs, partially offset by strong contributions from Evernorth Health Services, particularly within Specialty and Care Services. - Adjusted income from operations1 for 2024 increased
4% from 2023, primarily reflecting strong contributions from Evernorth Health Services. - The SG&A expense ratio4 and adjusted SG&A expense ratio4 were
5.9% and5.7% , respectively, for fourth quarter 2024, compared to7.9% and7.4% , respectively, in fourth quarter 2023, reflecting business mix shift, strong revenue growth, and continued operating efficiency. The SG&A expense ratio4 and adjusted SG&A expense ratio4 were6.0% and5.9% , respectively, for 2024, compared to7.6% and7.3% , respectively, in 2023. - In 2024, the Company repurchased 20.9 million shares of common stock for approximately
$7.0 billion $6.0 billion $10.3 billion - On January 30, 2025, the Company's Board of Directors declared a cash quarterly dividend of
$1.51 8% increase from the 2024 cash quarterly dividend of$1.40
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 | ||
December 31, | ||
2024 | 2023 | |
Total Pharmacy Customers5 | 118,304 | 98,570 |
17,502 | 18,170 | |
International Health | 1,645 | 1,610 |
Total Medical Customers5 | 19,147 | 19,780 |
Behavioral Care | 23,932 | 24,956 |
Dental | 18,258 | 18,543 |
Medicare Part D | 2,571 | 2,550 |
Total Customer Relationships5 | 182,212 | 164,399 |
- Total customer relationships5 at December 31, 2024 increased
11% from December 31, 2023 to 182.2 million. - Total pharmacy customers5 at December 31, 2024 increased
20% from December 31, 2023 to 118.3 million due to new sales and the continued expansion of relationships. - Total medical customers5 at December 31, 2024 were 19.1 million, primarily reflecting a decrease in Individual and Family Plans customers, driven by targeted pricing actions in certain geographies.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 1 for a reconciliation of adjusted income from operations1 to shareholders' net income.
Evernorth Health Services
This segment includes the Pharmacy Benefit Services and Specialty and Care Services operating segments, which provide independent and coordinated health solutions and capabilities to enable the health care system to work better and help people live richer, healthier lives.
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 services.
Financial Results (dollars in millions): | ||||
Three Months Ended | Year Ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Total Adjusted Revenues | ||||
Pharmacy Benefit Services | $ 30,273 | $ 20,553 | $ 111,822 | $ 76,792 |
Specialty and Care Services | $ 23,471 | $ 19,966 | $ 90,333 | $ 76,707 |
Adjusted Revenues3 | $ 53,744 | $ 40,519 | $ 202,155 | $ 153,499 |
Adjusted Income from Operations, Pre-Tax | ||||
Pharmacy Benefit Services | $ 1,198 | $ 1,146 | $ 3,577 | $ 3,469 |
Specialty and Care Services | $ 948 | $ 744 | $ 3,424 | $ 2,973 |
Adjusted Income from Operations, Pre-Tax1 | $ 2,146 | $ 1,890 | $ 7,001 | $ 6,442 |
Margin, Pre-Tax6 | 4.0 % | 4.7 % | 3.5 % | 4.2 % |
- Evernorth Health Services fourth quarter 2024 adjusted revenues3 and adjusted income from operations, pre-tax1, increased
33% and14% , respectively, relative to fourth quarter 2023. For the full year, adjusted revenues3 and adjusted income from operations, pre-tax1, increased32% and9% , respectively, relative to 2023. - For Pharmacy Benefit Services:
- Fourth quarter and full year 2024 adjusted revenues3 increased
47% and46% , relative to fourth quarter and full year 2023, respectively, reflecting client wins and organic growth. - Fourth quarter and full year 2024, adjusted income from operations, pre-tax1, increased
5% and3% , relative to fourth quarter and full year 2023, reflecting continued affordability improvements, partially offset by planned investments to support future growth.
- Fourth quarter and full year 2024 adjusted revenues3 increased
- For Specialty and Care Services:
- Fourth quarter and full year 2024 adjusted revenues3 both increased
18% , relative to fourth quarter and full year 2023, reflecting client wins and strong specialty volume growth. - Fourth quarter and full year 2024 adjusted income from operations, pre-tax1, increased
27% and15% , respectively, relative to fourth quarter and full year 2023, reflecting strong organic growth in specialty businesses, including increased Humira biosimilar adoption, as well as growth in clinical care services, partially offset by strategic investments to support business growth and the continued advancement of our capabilities and solutions.
- Fourth quarter and full year 2024 adjusted revenues3 both increased
Cigna Healthcare
This segment includes the
Financial Results (dollars in millions): | ||||
Three Months Ended | Year Ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Adjusted Revenues3,7 | $ 13,331 | $ 13,005 | $ 52,914 | $ 51,205 |
Adjusted Income from Operations, Pre-Tax1 | $ 511 | $ 969 | $ 4,229 | $ 4,478 |
Margin, Pre-Tax6 | 3.8 % | 7.5 % | 8.0 % | 8.7 % |
- Fourth quarter and full year 2024 adjusted revenues3,7 both increased
3% relative to fourth quarter and full year 2023, reflecting premium rate increases, partially offset by a decrease in Individual and Family Plans customers. Excluding the impact of lower Individual and Family Plans premiums, adjusted revenues3,7 for both periods increased6% . - Fourth quarter and full year 2024 adjusted income from operations, pre-tax1, decreased
47% and6% , respectively, relative to fourth quarter and full year 2023, primarily driven by a higher MCR4, partially offset by continued operating efficiency. - The Cigna Healthcare MCR4 was
87.9% and83.2% for fourth quarter and full year 2024, respectively, compared to82.2% and81.3% for fourth quarter and full year 2023. The increases for both the fourth quarter and the full year were primarily driven by higher stop loss medical costs. - Cigna Healthcare net medical costs payable8 was
$4.86 billion $4.93 billion $4.86 billion $456 million $279 million
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 | Year Ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 20233 | |
Adjusted (Loss) from Operations, Pre-Tax1 | $ (424) | $ (400) | $ (1,697) | $ (1,602) |
- Fourth quarter and full year 2024 adjusted loss from operations, pre-tax1, was
$424 million $1,697 million $400 million $1,602 million
2025 OUTLOOK2
The Cigna Group's outlook2 for full year 2025 consolidated adjusted income from operations1,2 is at least
(dollars in millions, except where noted and per share amounts) | |
2025 Consolidated Metrics | Projection for Full Year Ending December 31, 2025 |
Adjusted Revenues2,3 | at least |
Adjusted Income from Operations1,2 | at least |
Adjusted Income from Operations, per share1,2 | at least |
Adjusted SG&A Expense Ratio2,4 | ~ |
Adjusted Effective Tax Rate2,9 | ~ |
Cash Flow from Operations2 | |
Capital Expenditures2 | |
Shareholder Dividends2 | |
Weighted Average Shares Outstanding (millions)2 | 266 to 270 |
2025 Evernorth Metrics | |
Evernorth Adjusted Income from Operations, Pre-Tax1,2 | at least |
2025 Cigna Healthcare Metrics | |
Cigna Healthcare Adjusted Income from Operations, Pre-Tax1,2 | at least |
Cigna Healthcare Medical Care Ratio2,4 | |
Total Medical Customers2,5 | ~18.1M |
The foregoing statements represent the Company's current estimates of The Cigna Group's 2025 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 fourth quarter and full year 2024 results and discuss full year 2025 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: 01302025
Replay
(800) 819-5739 (Domestic)
(203) 369-3350 (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 182 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 facilitates 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 investment gains/losses, amortization of acquired intangible assets and special items. The Cigna Group's share of certain 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 income (loss), on a forward-looking basis because it is unable to predict, without unreasonable effort, certain components thereof including (i) future net investment results 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 2025 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 facilitates 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 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. For the twelve months ended December 31, 2024, special items reflects an impairment of dividend receivable for VillageMD accrued dividends of
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. Changes in percentages may be expressed in basis points ("bps").
- SG&A expense ratio on a GAAP basis for the fourth quarter 2024 represents enterprise selling, general and administrative expenses of
$3,865 million $65.6 billion $4,062 million $51.1 billion - SG&A expense ratio on a GAAP basis for the full year 2024 represents enterprise selling, general and administrative expenses of
$14,844 million $247.1 billion $14,822 million $195.3 billion - Adjusted SG&A expense ratio for the fourth quarter 2024 represents enterprise selling, general and administrative expenses of
$3,767 million $98 million $3,785 million $277 million - Adjusted SG&A expense ratio for the full year 2024 represents enterprise selling, general and administrative expenses of
$14,569 million $275 million $14,324 million $498 million
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.
6. 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. Adjusted revenues excluding Individual and Family Plans premiums for fourth quarter 2024 and full year 2024 are
Financial Results (dollars in millions): | ||||
Three Months Ended | Year Ended | |||
December 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | |
Cigna Healthcare Adjusted Revenues3 | $ 13,331 | $ 13,005 | $ 52,914 | $ 51,205 |
Less: Individual and Family Plans premiums | 935 | 1,318 | 3,951 | 5,088 |
Cigna Healthcare Adjusted Revenues3 excluding Individual and Family Plans premiums | $ 12,396 | $ 11,687 | $ 48,963 | $ 46,117 |
8. Medical costs payable within the Cigna Healthcare segment are presented net of reinsurance and other recoverables. The gross medical costs payable balance was
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 investment results, amortization of acquired intangible assets, and special items. The Cigna Group's share of certain 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 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 outlook for 2025 (including adjusted revenues; adjusted income from operations, including on a per share, and segment basis; adjusted SG&A expense ratio; adjusted effective tax rate; cash flow from operations; capital expenditures; shareholder dividends; weight average shares outstanding; medical care ratio; and total medical customers); 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, including our ability to successfully implement actions across our business to strengthen our platform and build a more sustainable model for healthcare; economic, regulatory or competitive environments; capital deployment plans and amounts available for future deployment; our prospects for growth in the coming years; 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 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 health care payers, 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 incident; 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 which could lead to an impairment charge; 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; our ability to attract, develop, retain and manage the succession of key employees and executives; 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 | Years Ended | ||||||||||
December 31, | December 31, | ||||||||||
(Dollars in millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||
REVENUES | |||||||||||
Pharmacy revenues | $ 185,362 | $ 137,243 | |||||||||
Premiums | 11,503 | 11,175 | 45,996 | 44,237 | |||||||
Fees and other revenues | 3,928 | 3,045 | 14,790 | 12,619 | |||||||
Net investment income | 277 | 290 | 973 | 1,166 | |||||||
Total revenues | 65,649 | 51,114 | 247,121 | 195,265 | |||||||
Net investment results from certain equity method investments | 34 | 35 | (204) | 57 | |||||||
Special item related to impairment of dividend receivable | — | — | 182 | — | |||||||
Adjusted revenues (1) | $ 247,099 | $ 195,322 | |||||||||
Shareholders' net income | $ 1,424 | $ 1,029 | $ 3,434 | $ 5,164 | |||||||
Pre-tax adjusted income (loss) from operations by segment | |||||||||||
Evernorth Health Services | $ 2,146 | $ 1,890 | $ 7,001 | $ 6,442 | |||||||
Cigna Healthcare | 511 | 969 | 4,229 | 4,478 | |||||||
Corporate and Other Operations | (424) | (400) | (1,697) | (1,602) | |||||||
Adjusted income tax expense | (388) | (460) | (1,792) | (1,870) | |||||||
Consolidated after-tax adjusted income from operations | $ 1,845 | $ 1,999 | $ 7,741 | $ 7,448 | |||||||
Weighted average shares (in thousands) | 277,784 | 294,565 | 283,218 | 296,882 | |||||||
Common shares outstanding (in thousands) | 273,789 | 292,504 | |||||||||
SHAREHOLDERS' EQUITY at December 31, | |||||||||||
SHAREHOLDERS' EQUITY PER SHARE at December 31, | |||||||||||
Three Months Ended | Years Ended | ||||||||||
December 31, | December 31, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
(Dollars in millions, except per share amounts) | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | |||
SHAREHOLDERS' NET INCOME | |||||||||||
Shareholders' net income | $ 1,424 | $ 1,029 | $ 3,434 | $ 5,164 | |||||||
Adjustments to reconcile adjusted income from operations | |||||||||||
Net investment (gains) losses (2) | $ (34) | (18) | $ 69 | 58 | $ 2,533 | 2,529 | $ 135 | 114 | |||
Amortization of acquired intangible assets | 424 | 375 | 451 | 360 | 1,703 | 1,347 | 1,819 | 1,413 | |||
Special Items | |||||||||||
Integration and transaction-related costs | 98 | 76 | 25 | 20 | 275 | 211 | 45 | 35 | |||
Impairment of dividend receivable | — | — | — | — | 182 | 138 | — | — | |||
Deferred tax expenses (benefits), net | — | 9 | — | (1,071) | — | 84 | — | (1,071) | |||
Net (gain) loss on sale of businesses | (130) | (21) | 1,478 | 1,410 | (24) | (2) | 1,499 | 1,429 | |||
Charge for organizational efficiency plan | — | — | 252 | 193 | — | — | 252 | 193 | |||
Charges associated with litigation matters | — | — | — | — | — | — | 201 | 171 | |||
Adjusted income from operations (3) | $ 1,845 | $ 1,999 | $ 7,741 | $ 7,448 | |||||||
DILUTED EARNINGS PER SHARE | |||||||||||
Shareholders' net income | $ 5.13 | $ 3.49 | $ 12.12 | $ 17.39 | |||||||
Adjustments to reconcile to adjusted income from operations | |||||||||||
Net investment (gains) losses (2) | $ (0.12) | (0.06) | $ 0.23 | 0.20 | $ 8.95 | 8.93 | $ 0.45 | 0.38 | |||
Amortization of acquired intangible assets | 1.53 | 1.34 | 1.53 | 1.22 | 6.01 | 4.76 | 6.13 | 4.77 | |||
Special Items | |||||||||||
Integration and transaction-related costs | 0.35 | 0.27 | 0.08 | 0.07 | 0.97 | 0.75 | 0.15 | 0.12 | |||
Impairment of dividend receivable | — | — | — | — | 0.64 | 0.49 | — | — | |||
Deferred tax expenses (benefits), net | — | 0.03 | — | (3.64) | — | 0.30 | — | (3.61) | |||
Net (gain) loss on sale of businesses | (0.47) | (0.07) | 5.02 | 4.79 | (0.08) | (0.02) | 5.05 | 4.81 | |||
Charge for organizational efficiency plan | — | — | 0.86 | 0.66 | — | — | 0.85 | 0.65 | |||
Charges associated with litigation matters | — | — | — | — | — | — | 0.68 | 0.58 | |||
Adjusted income from operations | $ 6.64 | $ 6.79 | $ 27.33 | $ 25.09 | |||||||
(1) Adjusted revenues is defined as total revenues excluding the following adjustments: special items and The Cigna Group's share of certain 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) Includes Net investment gains/losses as presented in our Consolidated Statements of Income, as well as the Company's share of certain 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. |
(3) 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 investment gains/losses, amortization of acquired intangible assets and special items. The Cigna Group's share of certain 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
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