The Cigna Group Reports Strong Second Quarter 2024 Results
The Cigna Group (NYSE: CI) reported strong Q2 2024 results with total revenues increasing 25% to $60.5 billion. Shareholders' net income was $1.5 billion or $5.45 per share, compared to $4.92 per share in Q2 2023. Adjusted income from operations rose to $1.9 billion or $6.72 per share, up from $6.13 per share last year.
The company projects 2024 adjusted income from operations of at least $28.40 per share. Evernorth Health Services and Cigna Healthcare contributed significantly to these results.
Q2 highlights include:
- 25% increase in total revenues to $60.5 billion
- 5% rise in adjusted income from operations to $1.9 billion
- Evernorth Health Services saw 30% revenue growth
- Cigna Healthcare increased revenues by 3%
- Year-to-date stock repurchases of 14.7 million shares for $5 billion
Il Gruppo Cigna (NYSE: CI) ha riportato risultati solidi per il secondo trimestre del 2024, con entrate totali in aumento del 25% a 60,5 miliardi di dollari. Il reddito netto per gli azionisti è stato di 1,5 miliardi di dollari, ovvero 5,45 dollari per azione, rispetto ai 4,92 dollari per azione del secondo trimestre del 2023. Il reddito rettificato dalle operazioni è salito a 1,9 miliardi di dollari, ovvero 6,72 dollari per azione, in aumento rispetto ai 6,13 dollari per azione dell'anno scorso.
La società prevede un reddito rettificato dalle operazioni per il 2024 di almeno 28,40 dollari per azione. Evernorth Health Services e Cigna Healthcare hanno contribuito in modo significativo a questi risultati.
I punti salienti del secondo trimestre includono:
- Aumento del 25% delle entrate totali a 60,5 miliardi di dollari
- Incremento del 5% nel reddito rettificato dalle operazioni a 1,9 miliardi di dollari
- Evernorth Health Services ha visto una crescita del fatturato del 30%
- Cigna Healthcare ha aumentato le entrate del 3%
- Riacquisti di azioni da inizio anno per 14,7 milioni di azioni per 5 miliardi di dollari
El Grupo Cigna (NYSE: CI) reportó resultados sólidos para el segundo trimestre de 2024, con ingresos totales aumentando un 25% a 60,5 mil millones de dólares. El ingreso neto para los accionistas fue de 1,5 mil millones de dólares, es decir, 5,45 dólares por acción, en comparación con los 4,92 dólares por acción en el segundo trimestre de 2023. El ingreso ajustado de las operaciones ascendió a 1,9 mil millones de dólares o 6,72 dólares por acción, en aumento respecto a los 6,13 dólares por acción del año pasado.
La empresa proyecta un ingreso ajustado de las operaciones para 2024 de al menos 28,40 dólares por acción. Evernorth Health Services y Cigna Healthcare contribuyeron significativamente a estos resultados.
Los aspectos destacados del segundo trimestre incluyen:
- Aumento del 25% en los ingresos totales a 60,5 mil millones de dólares
- Incremento del 5% en el ingreso ajustado de las operaciones a 1,9 mil millones de dólares
- Evernorth Health Services experimentó un crecimiento del 30% en ingresos
- Cigna Healthcare aumentó sus ingresos en un 3%
- Recompras de acciones hasta la fecha de 14,7 millones de acciones por 5 mil millones de dólares
시그나 그룹 (NYSE: CI)는 2024년 2분기 실적을 발표하며 총 수익이 25% 증가한 605억 달러에 달했다고 보고했습니다. 주주 순이익은 15억 달러, 즉 주당 5.45 달러로, 2023년 2분기의 4.92 달러와 비교됩니다. 조정 운영 수익은 19억 달러로, 주당 6.72 달러로 증가했으며, 작년의 주당 6.13 달러에서 상승했습니다.
회사는 2024년 조정 운영 수익이 주당 최소 28.40 달러에 이를 것으로 예상하고 있습니다. Evernorth Health Services와 Cigna Healthcare가 이러한 실적에 크게 기여했습니다.
2분기의 주요 사항은 다음과 같습니다:
- 총 수익이 605억 달러로 25% 증가
- 조정 운영 수익이 19억 달러로 5% 상승
- Evernorth Health Services가 30%의 수익 성장
- Cigna Healthcare는 3%의 수익 증가
- 올해 누적 재매입 주식 1470만 주, 50억 달러 사용
Le Groupe Cigna (NYSE: CI) a annoncé des résultats solides pour le deuxième trimestre de 2024, avec des revenus totaux en hausse de 25 % à 60,5 milliards de dollars. Le revenu net des actionnaires s'est élevé à 1,5 milliard de dollars, soit 5,45 dollars par action, contre 4,92 dollars par action au deuxième trimestre 2023. Le revenu ajusté d'exploitation a augmenté pour atteindre 1,9 milliard de dollars ou 6,72 dollars par action, contre 6,13 dollars par action l'année dernière.
L'entreprise projette un revenu ajusté d'exploitation pour 2024 d'au moins 28,40 dollars par action. Evernorth Health Services et Cigna Healthcare ont contribué de manière significative à ces résultats.
Les faits marquants du deuxième trimestre incluent :
- Augmentation de 25 % des revenus totaux à 60,5 milliards de dollars
- Augmentation de 5 % du revenu ajusté d'exploitation à 1,9 milliard de dollars
- Evernorth Health Services a connu une croissance des revenus de 30 %
- Cigna Healthcare a augmenté ses revenus de 3 %
- Rachats d'actions depuis le début de l'année de 14,7 millions d'actions pour 5 milliards de dollars
Die Cigna Gruppe (NYSE: CI) hat für das zweite Quartal 2024 starke Ergebnisse gemeldet, mit einem Umsatz, der um 25% auf 60,5 Milliarden Dollar gestiegen ist. Der Nettoeinkommen der Aktionäre betrug 1,5 Milliarden Dollar oder 5,45 Dollar pro Aktie, verglichen mit 4,92 Dollar pro Aktie im zweiten Quartal 2023. Der bereinigte Betriebsertrag stieg auf 1,9 Milliarden Dollar oder 6,72 Dollar pro Aktie, ein Anstieg von 6,13 Dollar pro Aktie im letzten Jahr.
Das Unternehmen projiziert einen bereinigten Betriebsertrag für 2024 von mindestens 28,40 Dollar pro Aktie. Evernorth Health Services und Cigna Healthcare trugen erheblich zu diesen Ergebnissen bei.
Die Höhepunkte des zweiten Quartals umfassen:
- 25% Anstieg der Gesamterlöse auf 60,5 Milliarden Dollar
- 5% Anstieg des bereinigten Betriebsertrags auf 1,9 Milliarden Dollar
- Evernorth Health Services verzeichnete ein Umsatzwachstum von 30%
- Cigna Healthcare steigerte die Einnahmen um 3%
- Rückkäufe von Aktien seit Jahresbeginn in Höhe von 14,7 Millionen Aktien für 5 Milliarden Dollar
- Total revenues increased 25% to $60.5 billion.
- Shareholders' net income per share rose from $4.92 to $5.45.
- Adjusted income from operations increased 5% to $1.9 billion.
- Evernorth Health Services revenues grew by 30%.
- Year-to-date stock repurchases of 14.7 million shares for $5 billion.
- Total medical customers decreased year-to-date.
- Behavioral Care customers decreased due to non-renewal of contracts.
Insights
The Cigna Group's Q2 2024 results demonstrate robust performance across key financial metrics. Total revenues increased by an impressive
Adjusted income from operations grew by
Particularly noteworthy is the performance of the Evernorth Health Services segment, which saw a
The company's financial position remains solid, with a slight improvement in the debt-to-capitalization ratio from
Looking ahead, Cigna has raised its full-year 2024 outlook, projecting adjusted revenues of at least
Cigna's Q2 2024 results reveal significant shifts in the healthcare landscape and the company's strategic positioning. The standout performer is the Evernorth Health Services segment, which encompasses pharmacy benefits, specialty pharmacy and care delivery solutions. This segment's substantial growth (
The Pharmacy Benefit Services subsegment's
In the Cigna Healthcare segment, the medical care ratio (MCR) increased from
The decrease in total medical customers from 19.5 million to 19.0 million, primarily due to a reduction in Individual and Family Plans customers, warrants attention. This decline, driven by targeted pricing actions in certain geographies, suggests that Cigna is prioritizing profitability over market share in this segment. This strategic decision could lead to improved financial performance in the long run, but it's important to monitor its impact on overall growth and market position.
Cigna's focus on behavioral health, with 23.8 million behavioral care customers, aligns with the growing recognition of mental health's importance in overall well-being. However, the year-over-year decrease in this customer base due to non-renewal of certain contracts indicates a need to closely watch this segment's evolution and Cigna's ability to retain and grow its behavioral health business.
- Total revenues for the second quarter 2024 increased
25% to$60.5 billion - Shareholders' net income for the second quarter 2024 was
$1.5 billion $5.45 - Adjusted income from operations1 for the second quarter 2024 was
$1.9 billion $6.72 - 2024 outlook2 for adjusted income from operations1,2 is at least
$28.40
"Our second quarter results underscore the strength of our diversified portfolio. We continue to deliver innovative solutions to meet the evolving needs of those we serve," said David M. Cordani, chairman and CEO of The Cigna Group. "We remain disciplined in our approach to executing our strategy, enabling us to consistently deliver value and sustain our growth in a dynamic environment."
Shareholders' net income for second quarter 2024 was
The Cigna Group's adjusted income from operations1 for second quarter 2024 was
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 (loss) to adjusted income from operations1:
Consolidated Financial Results (dollars in millions): | |||||
Three Months Ended | Six Months Ended | ||||
June 30, | March 31, | June 30, | |||
2024 | 2023 | 2024 | 2024 | ||
Total Revenues | $ 60,523 | $ 48,586 | $ 57,255 | 117,778 | |
Net Realized Investment Results from Equity Method Investments3 | (53) | 30 | (8) | (61) | |
Adjusted Revenues3 | $ 60,470 | $ 48,616 | $ 57,247 | $ 117,717 | |
Consolidated Earnings, net of taxes | |||||
Shareholders' Net Income (Loss) | $ 1,548 | $ 1,460 | $ (277) | $ 1,271 | |
Net Realized Investment (Gains) Losses1 | (20) | 9 | 1,827 | 1,807 | |
Amortization of Acquired Intangible Assets1 | 317 | 346 | 322 | 639 | |
Special Items1 | 64 | 5 | 3 | 67 | |
Adjusted Income from Operations1 | $ 1,909 | $ 1,820 | $ 1,875 | $ 3,784 | |
Shareholders' Net Income (Loss), per share | $ 5.45 | $ 4.92 | $ (0.97) | $ 4.43 | |
Adjusted Income from Operations1, per share | $ 6.72 | $ 6.13 | $ 6.47 | $ 13.19 | |
- Total revenues for second quarter 2024 increased
25% from second quarter 2023, primarily driven by significant growth in Evernorth Health Services, reflecting large client wins. - Adjusted income from operations1 for second quarter 2024 increased
5% from second quarter 2023, reflecting strong contributions from Evernorth Health Services and Cigna Healthcare. - The SG&A expense ratio4 and adjusted SG&A expense ratio4 were
6.1% and6.0% , respectively, for second quarter 2024, compared to7.1% for both ratios in second quarter 2023, reflecting business mix shift and continued operating efficiency. - The debt-to-capitalization ratio was
43.6% at June 30, 2024 compared to44.3% at March 31, 2024. - Year to date through July 31, 2024, the company purchased 14.7 million shares of common stock for approximately
$5.0 billion $3.2 billion
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 | |||||
June 30, | March 31, | December 31, | |||
2024 | 2023 | 2024 | 2023 | ||
Total Pharmacy Customers5 | 122,470 | 98,638 | 122,767 | 98,570 | |
17,404 | 17,882 | 17,562 | 18,170 | ||
International Health | 1,639 | 1,624 | 1,622 | 1,610 | |
Total Medical Customers5 | 19,043 | 19,506 | 19,184 | 19,780 | |
Behavioral Care | 23,816 | 26,383 | 23,801 | 24,956 | |
Dental | 18,339 | 18,634 | 18,443 | 18,543 | |
Medicare Part D | 2,564 | 2,542 | 2,558 | 2,550 | |
Total Customer Relationships5 | 186,232 | 165,703 | 186,753 | 164,399 | |
- Total customer relationships5 at June 30, 2024 increased
13% from December 31, 2023 to 186.2 million. - Total pharmacy customers5 at June 30, 2024 increased
24% from December 31, 2023 to 122.5 million due to new sales and the continued expansion of relationships. - Total medical customers5 at June 30, 2024 were 19.0 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 June 30, 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 from operations1 to shareholders' net income.
Evernorth Health Services
This segment includes the Pharmacy Benefit Services and the Specialty and Care Services operating segments, which partner 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 | Six Months Ended | ||||
June 30, | March 31, | June 30, | |||
2024 | 2023 | 2024 | 2024 | ||
Total adjusted revenues | |||||
Pharmacy Benefit Services | $ 26,612 | $ 18,819 | $ 26,095 | $ 52,707 | |
Specialty and Care Services | $ 22,871 | $ 19,324 | $ 20,072 | $ 42,943 | |
Net investment income | $ 65 | $ 62 | $ 59 | $ 124 | |
Adjusted Revenues3 | $ 49,548 | $ 38,205 | $ 46,226 | $ 95,774 | |
Adjusted Income from Operations, Pre-Tax | |||||
Pharmacy Benefit Services | $ 798 | $ 777 | $ 513 | $ 1,311 | |
Specialty and Care Services | $ 756 | $ 677 | $ 788 | $ 1,544 | |
Net investment income | $ 65 | $ 62 | $ 59 | $ 124 | |
Adjusted Income from Operations, Pre-Tax1 | $ 1,619 | $ 1,516 | $ 1,360 | $ 2,979 | |
Adjusted Margin, Pre-Tax6 | 3.3 % | 4.0 % | 2.9 % | 3.1 % | |
- Evernorth Health Services second quarter 2024 adjusted revenues3 and adjusted income from operations, pre-tax1, increased
30% and7% , respectively, relative to second quarter 2023. - For Pharmacy Benefit Services second quarter 2024 relative to second quarter 2023:
- Adjusted revenues3 increased
41% , reflecting client wins and organic growth. - Adjusted income from operations, pre-tax1, increased
3% , reflecting continued affordability improvements, partially offset by planned investments to support new and existing client growth.
- Adjusted revenues3 increased
- For Specialty and Care Services second quarter 2024 relative to second quarter 2023:
- Adjusted revenues3 increased
18% , reflecting client wins and organic growth in specialty businesses. - Adjusted income from operations, pre-tax1, increased
12% , reflecting organic growth in specialty businesses and clinical care services, partially offset by increased investments to support business growth and the continued advancement of our digital capabilities and solutions.
- Adjusted revenues3 increased
Cigna Healthcare
This segment includes the
Financial Results (dollars in millions): | |||||
Three Months Ended | Six Months | ||||
June 30, | March 31, | June 30, | |||
2024 | 2023 | 2024 | 2024 | ||
Adjusted Revenues3,7 | $ 13,143 | $ 12,714 | $ 13,277 | $ 26,420 | |
Adjusted Income from Operations, Pre-Tax1 | $ 1,204 | $ 1,172 | $ 1,340 | $ 2,544 | |
Adjusted Margin, Pre-Tax6 | 9.2 % | 9.2 % | 10.1 % | 9.6 % | |
- Second quarter 2024 adjusted revenues3,7 increased
3% relative to second quarter 2023, reflecting premium rate increases to cover expected increases in underlying medical costs, partially offset by business mix. - Second quarter 2024 adjusted income from operations, pre-tax1, increased
3% relative to second quarter 2023, primarily driven by continued operating efficiency and higher net investment income, partially offset by a higher MCR4. - The Cigna Healthcare MCR4 was
82.3% for second quarter 2024 and includes approximately$50 million 81.2% for second quarter 2023, reflecting business mix and the aforementioned prior year revenue adjustments, partially offset by effective pricing execution and affordability initiatives. - Cigna Healthcare net medical costs payable8 was
$5.04 billion $5.66 billion $5.12 billion $284 million $202 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 | Six Months Ended | ||||
June 30, | March 31, | June 30, | |||
2024 | 2023 | 2024 | 2024 | ||
Adjusted (Loss) from Operations, Pre-Tax1 | $ (451) | $ (394) | $ (391) | $ (842) | |
- Second quarter 2024 adjusted loss from operations, pre-tax1, was
$451 million $394 million
2024 OUTLOOK2
The Cigna Group's outlook2 for full year 2024 adjusted revenues2,3 is at least
(dollars in millions, except where noted and per share amounts)
| |||||
2024 Consolidated Metrics | Projection for Full Year Ending December 31, 2024 | ||||
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 | at least | ||||
Weighted Average Shares Outstanding (millions)2 | 282 to 286 | ||||
2024 Evernorth Metrics | |||||
Adjusted Income from Operations, Pre-Tax1,2 | at least | ||||
2024 Cigna Healthcare Metrics | |||||
Adjusted Income from Operations, Pre-Tax1,2 | at least | ||||
Medical Care Ratio2,4 | |||||
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 second 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: 8028932
Replay
(800) 839-1190 (Domestic)
(203) 369-3031 (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 186 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 (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). 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), 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. Changes in percentages may be expressed in basis points ("bps").
- SG&A expense ratio on a GAAP basis for the second quarter 2024 represents enterprise selling, general and administrative expenses of
$3,684 million $60.5 billion $3,434 million $48.6 billion - Adjusted SG&A expense ratio for the second quarter 2024 represents enterprise selling, general and administrative expenses of
$3,621 million $63 million $3,428 million $6 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.
- During the fourth quarter of 2023, the
U.S. Commercial andU.S. Government operating segments combined to form theU.S. Healthcare operating segment. Information presented for three months ended June 30, 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
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 customers for 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; 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 | Six Months Ended | Three Months Ended | ||||||||||||
June 30, | June 30, | March 31, | ||||||||||||
(Dollars in millions, except per share amounts) | 2024 | 2023 | 2024 | 2023 | 2024 | |||||||||
REVENUES | ||||||||||||||
Pharmacy revenues | ||||||||||||||
Premiums | 11,454 | 11,039 | 23,057 | 22,064 | 11,603 | |||||||||
Fees and other revenues | 3,647 | 3,305 | 6,973 | 6,376 | 3,326 | |||||||||
Net investment income | 321 | 278 | 611 | 555 | 290 | |||||||||
Total revenues | 60,523 | 48,586 | 117,778 | 95,103 | 57,255 | |||||||||
Net realized investment results from certain equity method investments | (53) | 30 | (61) | (8) | (8) | |||||||||
Adjusted revenues (1) | $ 117,717 | |||||||||||||
Shareholders' net income (loss) | $ 1,548 | $ 1,460 | $ 1,271 | $ 2,727 | $ (277) | |||||||||
Pre-tax adjusted income (loss) from operations by segment | ||||||||||||||
Evernorth Health Services | $ 1,619 | $ 1,516 | $ 2,979 | $ 2,836 | $ 1,360 | |||||||||
Cigna Healthcare | 1,204 | 1,172 | 2,544 | 2,287 | 1,340 | |||||||||
Corporate and Other Operations | (451) | (394) | (842) | (793) | (391) | |||||||||
Consolidated pre-tax adjusted income from operations | 2,372 | 2,294 | 4,681 | 4,330 | 2,309 | |||||||||
Adjusted income tax expense | (463) | (474) | (897) | (892) | (434) | |||||||||
Consolidated after-tax adjusted income from operations | $ 1,909 | $ 1,820 | $ 3,784 | $ 3,438 | $ 1,875 | |||||||||
Weighted average shares (in thousands) (2) | 284,052 | 296,879 | 286,884 | 297,936 | 289,717 | |||||||||
Common shares outstanding (in thousands) | 279,520 | 295,830 | 284,014 | |||||||||||
SHAREHOLDERS' EQUITY at June 30, | ||||||||||||||
SHAREHOLDERS' EQUITY PER SHARE at June 30, | ||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||
June 30, | June 30, | March 31, | ||||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | ||||||||||
(Dollars in millions, except per share amounts) | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | Pre-tax | After-tax | ||||
SHAREHOLDERS' NET INCOME (LOSS) | ||||||||||||||
Shareholders' net income (loss) | $ 1,548 | $ 1,460 | $ 1,271 | $ 2,727 | $ (277) | |||||||||
Adjustments to reconcile adjusted income from operations | ||||||||||||||
Net realized investment (gains) losses (3) | $ (5) | (20) | $ 4 | 9 | $ 1,823 | 1,807 | $ 22 | 15 | $ 1,828 | 1,827 | ||||
Amortization of acquired intangible assets | 420 | 317 | 455 | 346 | 843 | 639 | 914 | 690 | 423 | 322 | ||||
Special Items | ||||||||||||||
Integration and transaction-related costs | 63 | 47 | 6 | 5 | 100 | 76 | 7 | 6 | 37 | 29 | ||||
Loss (gain) on sale of businesses | — | — | — | — | 19 | (43) | — | — | 19 | (43) | ||||
Deferred tax expenses, net | — | 17 | — | — | — | 34 | — | — | — | 17 | ||||
Adjusted income from operations (4) | $ 1,909 | $ 1,820 | $ 3,784 | $ 3,438 | $ 1,875 | |||||||||
DILUTED EARNINGS PER SHARE | ||||||||||||||
Shareholders' net income (loss) (5) | $ 5.45 | $ 4.92 | $ 4.43 | $ 9.15 | $ (0.97) | |||||||||
Adjustments to reconcile to adjusted income from operations | ||||||||||||||
Net realized investment (gains) losses (3) | $ (0.02) | (0.07) | $ 0.01 | 0.03 | $ 6.36 | 6.30 | $ 0.07 | 0.05 | $ 6.31 | 6.31 | ||||
Amortization of acquired intangible assets | 1.48 | 1.11 | 1.53 | 1.17 | 2.94 | 2.23 | 3.07 | 2.32 | 1.46 | 1.10 | ||||
Special Items | ||||||||||||||
Integration and transaction-related costs | 0.22 | 0.17 | 0.02 | 0.01 | 0.34 | 0.26 | 0.02 | 0.02 | 0.12 | 0.10 | ||||
Loss (gain) on sale of businesses | — | — | — | — | 0.07 | (0.15) | — | — | 0.07 | (0.15) | ||||
Deferred tax expenses, net | — | 0.06 | — | — | — | 0.12 | — | — | — | 0.06 | ||||
Adjusted income from operations (2) (5) | $ 6.72 | $ 6.13 | $ 13.19 | $ 11.54 | $ 6.47 | |||||||||
(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/gains 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) 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. |
(5) 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 and six months ended June 30, 2024 and 2023, the calculation of weighted average shares includes the impact of potentially dilutive securities for the calculation of Shareholders net income. |
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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