Cigna Reports Third Quarter 2020 Performance, Raises Revenue Guidance
BLOOMFIELD, Conn., Nov. 5, 2020 /PRNewswire/ --
-- Total revenues in the third quarter were $41.0 billion. Adjusted
revenues(1) were $40.8 billion.
-- Shareholders' net income for the third quarter was $1.4 billion, or
$3.78 per share
-- Adjusted income from operations(2) for the third quarter was $1.6
billion, or $4.41 per share
-- Adjusted income from operations(2,3) is projected to be in the range of
$18.30 to $18.60 per share in 2020(3)
Global health services company Cigna Corporation (NYSE: CI) today reported solid third quarter 2020 performance led by strong execution by its Evernorth segment.
"In these dynamic and challenging times, we at Cigna continue to act as champions for our customers, clients, and communities as we deliver on our promises to make health care more affordable, predictable and simple," said David M. Cordani, President and Chief Executive Officer. "We delivered attractive revenue growth and strong earnings, while further improving our capital position, driving strategic flexibility. Additionally, our launch of Evernorth accelerates our strategy, broadens our reach and expands our opportunities for growth, further enhancing the value we deliver to the marketplace each and every day."
Total revenues for third quarter 2020 were $41.0 billion. Adjusted revenues(1) were $40.8 billion and reflect strong contributions from each of Cigna's ongoing businesses.
Shareholders' net income for third quarter 2020 was $1.4 billion, or $3.78 per share, compared with $1.4 billion, or $3.57 per share, for third quarter 2019.
Cigna's adjusted income from operations(2) for third quarter 2020 was $1.6 billion, or $4.41 per share, compared with $1.7 billion, or $4.54 per share, for third quarter 2019 reflecting strong fundamental performance across our businesses as well as the return of medical utilization to more typical levels and COVID-19 related impacts.
Reconciliations of total revenues to adjusted revenues(1) and of shareholders' net income to adjusted income from operations(2) are 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 revenues(1) and shareholders' net income to adjusted income from operations(2):
Consolidated Financial Results (dollars in millions):
Three Months Ended Nine Months
Ended
September 30, June 30, September 30,
2020 2019 2020 2020
Total Revenues $
40,955 $
38,556 $
39,265 $
118,689
Net Realized Investment
(Gains) Losses from Equity
Method Investments(1) (37) (5) (60) (87)
Special Items(1) (117) (204)
Transitioning Client
Contributions(1) (2,718)
Adjusted Revenues(1) $
40,801 $
35,833 $
39,205 $
118,398
Consolidated Earnings, net
of taxes
Shareholders' Net Income $
1,388 $
1,351 $
1,754 $
4,323
Net Realized Investment
(Gains) Losses(2) (64) (49) (88) (75)
Amortization of Other
Acquired Intangible
Assets(2) 376 558 376 1,061
Special Items(2) (82) 65 110 219
Transitioning Client
Contributions1,2 (207)
Adjusted Income from
Operations(2) $
1,618 $
1,718 $
2,152 $
5,528
Shareholders' Net Income,
per share $
3.78 $
3.57 $
4.73 $
11.66
Adjusted Income from
Operations(2), per share $
4.41 $
4.54 $
5.81 $
14.91
-- Cigna's third quarter results reflect revenue growth driven by strong
fundamental performance across our businesses led by our Evernorth
segment. Third quarter earnings reflect the return of medical
utilization to more typical levels and COVID-19 related impacts, as well
as focused execution in our businesses.
-- Year to date through November 4, 2020, the Company repurchased 16.0
million shares of common stock for approximately $2.9 billion.
-- The debt to capitalization ratio decreased to 42.8% at September 30,
2020 from 45.2% at December 31, 2019.
-- The SG&A expense ratio(4) was 8.1% for third quarter 2020, a decrease
from 9.2% for third quarter 2019, driven by significant revenue growth
and continued expense efficiency.
CUSTOMER RELATIONSHIPS
The following table summarizes Cigna's medical customers and overall customer relationships:
Customer Relationships (in thousands):
As of the Periods Ended
September 30, June 30, December 31,
2020 2019 2020 2019
Total Customer Relationships 189,702 169,712 188,211 171,760
Total Pharmacy Customers5 86,604 75,663 84,919 75,903
U.S. Commercial6 13,901 14,121 14,000 14,187
U.S. Government6 1,413 1,374 1,415 1,361
International Markets 1,668 1,576 1,668 1,597
Total Medical Customers5 16,982 17,071 17,083 17,145
Behavioral Care 37,236 28,744 37,061 30,361
Dental 17,671 17,079 17,850 17,231
Medicare Part D 3,296 3,269 3,300 3,276
International Markets Supplemental Policies5,7 12,013 12,486 12,098 12,444
Group Disability and Life Covered Lives5 15,900 15,400 15,900 15,400
-- The pharmacy customer base(5) at third quarter 2020 grew to 86.6
million, an organic increase of 10.7 million customers year to date,
driven by strong new health plan sales.
-- The total medical customer base(5) at third quarter 2020 was 17.0
million, a decrease of 163,000 customers year to date, driven by a
decline in National Accounts, partially offset by growth in the Select
and International Markets segments and in Medicare Advantage.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 1 for a reconciliation of adjusted income (loss) from operations(2) to shareholders' net income.
Evernorth(6)
This segment includes a broad range of coordinated and point solution health services, including pharmacy services, benefits management, care solutions and data and analytics, which are provided to health plans, employers, government organizations, and health care providers.
Financial Results (dollars in millions):
Three Months Ended Nine Months
Ended
September 30, June 30, September 30,
2020 2019 2020 2020
Adjusted Revenues1 $
29,827 $
24,880 $
28,602 $
85,597
Adjusted Income from
Operations, Pre-Tax2 $
1,443 $
1,399 $
1,249 $
3,774
Adjusted Margin, Pre-
Tax8 4.8% 5.6% 4.4% 4.4%
-- Third quarter 2020 adjusted revenues(1) increased 20% relative to third
quarter 2019 driven by the insourcing of U.S. Medical pharmacy volumes
and strong organic growth, including growth in retail network and
specialty pharmacy services.
-- Third quarter adjusted income from operations, pre-tax(2) increased 3%
relative to third quarter 2019, reflecting customer growth, higher
adjusted pharmacy scripts volumes, benefits from the effective
management of the supply chain, and continued strong performance in
specialty pharmacy services, partially offset by increased operating
expenses to support growth.
-- Evernorth fulfilled 381 million adjusted pharmacy scripts(9) in third
quarter 2020, an increase of 22% over third quarter 2019 driven by the
insourcing of U.S. Medical pharmacy volumes and strong organic growth.
U.S. Medical(6)
This segment includes Cigna's U.S. Commercial and U.S. Government businesses that provide comprehensive medical and coordinated solutions to clients and customers. U.S. Commercial products and services include medical, pharmacy, behavioral health, dental, vision, health advocacy programs and other products and services for insured and self-insured customers. U.S. Government solutions include Medicare Advantage, Medicare Supplement, and Medicare Part D plans for seniors, Medicaid plans, and individual health insurance plans both on and off the public exchanges.
Financial Results (dollars in millions):
Three Months Ended Nine Months
Ended
September 30, June 30, September 30,
2020 2019 2020 2020
Adjusted Revenues(1) $
9,629 $
9,148 $
9,237 $
28,726
Adjusted Income from Operations, Pre-Tax(2) $
757 $
953 $
1,523 $
3,479
Adjusted Margin, Pre-Tax8 7.9% 10.4% 16.5% 12.1%
-- Third quarter 2020 adjusted revenues(1) grew 5% over third quarter 2019,
reflecting customer growth in the Select segment and Medicare Advantage,
as well as premium increases.
-- Third quarter 2020 adjusted income from operations, pre-tax² and
adjusted margin, pre-tax(8) reflect unfavorable prior period development
primarily related to second quarter 2020, COVID-19 related impacts, and
the return of the health insurance tax. COVID-19 related impacts include
the net impact of the return of medical utilization to more typical
levels and direct COVID-19 costs as well as the costs of actions we have
taken to support customers and providers, decreased specialty
contributions, and lower net investment income.
-- The medical care ratio(4 )("MCR") of 82.6% for third quarter 2020
reflects continued effective execution in our U.S. Commercial and U.S.
Government segments. The third quarter 2020 MCR increased relative to
third quarter 2019 due to unfavorable prior period development primarily
related to second quarter 2020 and COVID-19 related impacts, partially
offset by the pricing effect of the health insurance tax.
-- U.S. Medical net medical costs payable(10) was $2.97 billion at
September 30, 2020, $2.73 billion at September 30, 2019, and $2.59
billion at December 31, 2019. Favorable prior year reserve development
on a gross pre-tax basis was $126 million and $159 million through third
quarter 2020 and 2019, respectively.
International Markets
This segment includes supplemental health, life and accident insurance products and health care coverage in Cigna's international markets, as well as health care benefits for globally mobile individuals and employees of multinational organizations.
Financial Results (dollars in millions):
Three Months Ended Nine Months
Ended
September 30, June 30, September 30,
2020 2019 2020 2020
Adjusted Revenues1,7 $
1,440 $
1,402 $
1,432 $
4,342
Adjusted Income from
Operations, Pre-
Tax(2) $
208 $
194 $
319 $
809
Adjusted Margin,
Pre-Tax8 14.4% 13.8% 22.3% 18.6%
-- Third quarter 2020 adjusted revenues(1,7) grew 3% over third quarter
2019, reflecting continued business growth.
-- Third quarter 2020 adjusted income from operations, pre-tax(2) and
adjusted margin, pre-tax(8) reflect continued operational efficiency,
lower claim levels driven by the effects of the COVID-19 pandemic, and
business growth.
Group Disability and Other Operations
This segment includes Cigna's Group Disability and Life business which offers group long-term and short-term disability, and group life, accident, voluntary and specialty insurance products and services. Additionally, this segment includes Corporate Owned Life Insurance ("COLI") and the Company's run-off operations.
Financial Results (dollars in millions):
Three Months Ended Nine Months
Ended
September 30, June 30, September 30,
2020 2019 2020 2020
Adjusted Revenues(1) $
1,314 $
1,284 $
1,328 $
3,981
Adjusted Income from
Operations, Pre-Tax2 $
70 $
143 $
132 $
279
Adjusted Margin, Pre-
Tax8 5.3% 11.1% 9.9% 7.0%
-- Third quarter 2020 adjusted income from operations, pre-tax(2) and
adjusted margin, pre-tax(8) reflect elevated claims in Cigna's Life
business primarily related to the COVID-19 pandemic.
-- On December 18, 2019, Cigna announced a definitive agreement whereby New
York Life will acquire Cigna's Group Disability and Life business for
$6.3 billion. Cigna continues to expect the transaction to close in the
fourth quarter of 2020, subject to applicable regulatory approvals and
other customary closing conditions.
Corporate
Corporate reflects interest expense, as well as amounts not allocated to operating segments and includes intersegment eliminations.
Financial Results (dollars in millions):
Three Months Ended Nine Months
Ended
September 30, June 30, September 30,
2020 2019 2020 2020
Adjusted (Loss) from
Operations, Pre-
Tax(2) $
(366) $
(442) $
(400) $
(1,171)
-- Third quarter 2020 adjusted loss from operations, pre-tax(2) decreased
relative to third quarter 2019 as a result of lower interest expense.
2020 OUTLOOK
Cigna's outlook for full year 2020 adjusted revenues(1,3) is approximately $158 billion. Cigna's outlook for full year 2020 consolidated adjusted income from operations(2,3) on a per share basis is in the range of $18.30 to $18.60 per share. Cigna's outlook excludes potential effects of any future share repurchase(3). Also, while Cigna continues to expect to close the sale of Cigna's Group Disability and Life business in the fourth quarter of 2020, Cigna's outlook assumes a full year of contributions from the Group Disability and Life business.( )
The foregoing statements represent the Company's current estimates of Cigna's 2020 consolidated adjusted revenues(1,3) and adjusted income from operations(2,3) on a per share basis 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 Cigna's website in the Investor Relations section (https://www.cigna.com/aboutcigna/investors). Management will be hosting a conference call to review third quarter 2020 results and discuss full year 2020 outlook beginning today at 8:30 a.m. ET. A link to the conference call is available in the Investor Relations section of Cigna's website located at https://www.cigna.com/aboutcigna/investors/events/index.page.
The call-in numbers for the conference call are as follows:
Live Call
(800) 857-1657 (Domestic)
(773) 799-3811 (International)
Passcode: 1152020
Replay
(800) 839-8789 (Domestic)
(203) 369-3037 (International)
It is strongly suggested you dial in to the conference call by 8:15 a.m. ET.
About Cigna
Cigna Corporation (NYSE: CI) is a global health service company dedicated to improving the health, well-being and peace of mind of those we serve. Cigna delivers choice, predictability, affordability and access to quality care through integrated capabilities and connected, personalized solutions that advance whole person health. All products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance Company, Cigna Life Insurance Company of New York, Connecticut General Life Insurance Company, Evernorth companies or their affiliates, Express Scripts companies or their affiliates, and Life Insurance Company of North America. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products including group life, accident and disability insurance.
Cigna maintains sales capability in over 30 countries and jurisdictions, and has approximately 190 million customer relationships throughout the world. To learn more about Cigna(®), including links to follow us on Facebook or Twitter, visit www.cigna.com.
Notes:
1. At the
consolidated
level, the
measure "adjusted
revenues" is not
determined in
accordance with
accounting
principles
generally
accepted in the
United States
(GAAP) and should
not be viewed as
a substitute for
the most directly
comparable GAAP
measure, "total
revenues." Cigna
defines adjusted
revenues as total
revenues
excluding net
realized
investment
results from
equity method
investments and
special items.
Special items are
identified in
Exhibit 1 of this
earnings release.
For periods
prior to 2020,
Cigna also
excludes revenue
contributions
from
transitioning
pharmacy benefit
management
clients, Anthem
Inc. and Coventry
Health Care, Inc.
(the
"transitioning
clients"). Cigna
excludes these
items from this
measure because
they are not
indicative of
past or future
underlying
performance of
the business.
See Exhibit 1 for
a reconciliation
of consolidated
adjusted revenues
to total
revenues.
2. Adjusted income
(loss) from
operations is
defined as
shareholders' net
income (loss)
excluding the
following
adjustments: net
realized
investment
results,
amortization of
acquired
intangible
assets, and
special items.
For periods prior
to 2020, Cigna
also excludes
earnings
contributions
from
transitioning
clients. Adjusted
income (loss)
from operations
is measured on an
after-tax basis
for consolidated
results and on a
pre-tax basis
for segment
results.
Adjusted income
(loss) from
operations is a
measure of
profitability
used by Cigna's
management
because it
presents the
underlying
results of
operations of
Cigna's
businesses and
permits analysis
of trends in
underlying
revenue, expenses
and shareholders'
net income. This
consolidated
measure 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. See
Exhibit 1 for a
reconciliation of
consolidated
adjusted income
from operations
to shareholders'
net income.
3. Certain adjusted
metrics presented
for 2019 exclude
contributions
from
transitioning
clients. As
previously
disclosed,
beginning in
2020, Cigna no
longer excludes
contributions
from
transitioning
clients from its
adjusted metrics,
as the transition
for those clients
was substantially
complete as of
December 31,
2019.
Management is not
able to provide a
reconciliation of
adjusted income
from operations
to shareholders'
net income (loss)
or adjusted
revenues to total
revenues 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
Cigna'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
share repurchases
or business
combinations that
may occur after
the date of this
earnings release.
Additionally,
the Company's
outlook assumes a
full year of
contributions
from Cigna's
Group Disability
and Life
business.
4. Operating ratios
are defined as
follows:
-- Medical care ratio represents medical
costs as a percentage of premiums for
all U.S. commercial risk products,
including medical, pharmacy, dental,
stop loss and behavioral products
provided through guaranteed cost or
experience-rated funding
arrangements, as well as Medicare
Advantage, Medicare Part D, Medicare
Supplement, Medicaid, and individual
on and off-exchange products, within
Cigna's U.S. Medical segment.
-- SG&A expense ratio represents
enterprise selling, general and
administrative expenses excluding
special items and, prior to 2020,
expenses from transitioning clients,
as a percentage of adjusted revenue
at a consolidated level.
5. Customer
relationships are
defined as
follows:
-- Total medical customers includes
individuals in Cigna's U.S. Medical
and International Markets segments
who meet any one of the following
criteria: are covered under a medical
insurance policy, managed care
arrangement, or service agreement
issued by Cigna; have access to
Cigna's provider network for covered
services under their medical plan; or
have medical claims and services that
are administered by Cigna.
-- Pharmacy customer relationships for
periods prior to 2020 excludes
transitioning clients.
-- International Markets medical
customers excludes medical customers
served by less than 100% owned
subsidiaries.
-- International Markets supplemental
policies exclude International
Markets medical customers included in
total medical customers.
-- Group Disability and Life covered
lives are estimated.
6. As of the third
quarter 2020, the
segment
previously
reported as
"Health Services"
is reported as
"Evernorth", and
the segment
previously
reported as
"Integrated
Medical" is
reported as "U.S.
Medical".
Additionally,
U.S. Medical's
two operating
segments
previously
reported as
"Commercial" and
"Government" are
now reported as
"U.S. Commercial"
and "U.S.
Government".
There are no
changes to the
underlying
businesses
reported in any
of these
segments.
7. Cigna owns a 50%
non-controlling
interest in its
China joint
venture. Cigna's
50% share of the
joint venture's
earnings is
reported in Fees
and Other
Revenues using
the equity method
of accounting
under GAAP. As
such, the
adjusted revenues
and policy counts
for the
International
Markets segment
do not include
the China joint
venture.
8. Adjusted margin,
pre-tax, is
calculated by
dividing adjusted
income (loss)
from operations,
pre-tax by
adjusted revenues
for each segment.
Adjusted margin,
after-tax, is
calculated by
dividing
consolidated
adjusted income
(loss) from
operations by
consolidated
adjusted
revenues.
Adjusted income
(loss) from
operations is
measured on an
after-tax basis
for consolidated
results.
9. For Evernorth
adjusted pharmacy
scripts, non-
specialty network
scripts filled
through 90-day
programs and home
delivery scripts
are multiplied by
three. All other
network and
specialty scripts
are counted as
one script.
10. Medical costs
payable within
the U.S. Medical
segment are
presented net of
reinsurance and
other
recoverables.
The gross medical
costs payable
balance was $3.20
billion as of
September 30,
2020, $2.89
billion as of
December 31,
2019, and $3.06
billion as of
September 30,
2019.
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 Cigna'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 consolidated adjusted income from operations outlook for 2020 on a per share basis; projected adjusted revenue outlook for 2020; future financial or operating performance, including our ability to deliver affordable, personalized and innovative solutions for our customers and clients, in light of the challenges presented by the COVID-19 pandemic; future growth, business strategy, strategic or operational initiatives, including our organizational efficiency plan; economic, regulatory or competitive environments, particularly with respect to the pace and extent of change in these areas; financing or capital deployment plans and amounts available for future deployment; our prospects for growth in the coming years; strategic transactions, including the merger (the "Merger") with Express Scripts Holding Company and the sale of our U.S. Group Disability and Life business; our ongoing operational response to the COVID-19 pandemic; and other statements regarding Cigna's future beliefs, expectations, plans, intentions, financial condition or performance. You may identify forward-looking statements by the use of words such as "believe," "expect," "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 financial, strategic and operational plans or initiatives; our ability to predict and manage medical and pharmacy costs and price effectively; our ability to adapt to changes or trends in an evolving and rapidly changing industry; our ability to effectively differentiate our products and services from those of our competitors and maintain or increase market share; our ability to develop and maintain good relationships with physicians, hospitals, other health care providers, producers, consultants, and pharmaceutical manufacturers; changes in the pharmacy provider marketplace or pharmacy networks; changes in drug pricing; the impact of modifications to our operations and processes; our ability to identify potential strategic transactions and realize the expected benefits (including anticipated synergies) of such transactions in full or within the anticipated time frame, including with respect to the Merger and the sale of our Group Disability and Life business, as well as our ability to integrate or separate operations, resources and systems; 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; the outcome of litigation, regulatory audits, investigations, actions or guaranty fund assessments; uncertainties surrounding participation in government-sponsored programs such as Medicare; the effectiveness and security of our information technology and other business systems and those of our key suppliers or other third parties; the impact of our debt service obligations on the availability of funds for other business purposes; unfavorable industry, economic or political conditions, including foreign currency movements; acts of civil unrest, war, terrorism, natural disasters or pandemics; reinsurance credit risk; the scale and scope of the COVID-19 pandemic and its potential impact on our business, operating results, cash flows and financial condition, as well as on our employees, clients, customers, suppliers and partners and on the U.S. and global economies; as well as more specific risks and uncertainties discussed in our most recent report on Form 10-K, as supplemented by our Form 10-Q for the quarter ended March 31, 2020, and subsequent reports on Forms 10-Q and 8-K available through the Investor Relations section of www.cigna.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. Cigna 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.
CIGNA CORPORATION Exhibit 1
COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited)
(Dollars in millions, except per share amounts)
Three Months Ended Nine Months Ended Three Months
Ended
September 30, September 30, June 30,
2020 2019 2020 2019 2020
---
REVENUES
Pharmacy revenues $
27,802 $
25,987 $
79,464 $
77,454 $
26,564
Premiums 10,682 9,935 31,928 29,709 10,406
Fees and other revenues 2,174 2,285 6,424 7,123 2,072
Net investment income 297 349 873 1,035 223
---
Total Revenues 40,955 38,556 118,689 115,321 39,265
---
Revenue contributions from
transitioning clients - (2,718) (11,657)
Net realized investment results
from certain equity method
investments (37) (5) (87) (27) (60)
Special item related to contractual
adjustment for a former client (117) (204)
---
Adjusted revenues (1) $
40,801 $
35,833 $
118,398 $
103,637 $
39,205
---
SHAREHOLDERS' NET INCOME
Shareholders' net income $
1,388 $
1,351 $
4,323 $
4,127 $
1,754
After-tax adjustments to reconcile adjusted income
from operations
Net realized investment (gains)
losses (64) (49) (75) (100) (88)
Amortization of acquired intangible
assets 376 558 1,061 1,694 376
Adjustment for transitioning
clients - (207) (1,217)
Special Items
Integration and transaction-
related costs 83 88 256 311 99
Debt extinguishment costs - 151 11
Charge for organizational
efficiency plan - 24
(Benefits) charges associated with
litigation matters - (23) 19 41
Risk corridors recovery (76) (76)
Contractual adjustment for a former
client (89) (155)
---
Adjusted income from operations $
1,618 $
1,718 $
5,528 $
4,856 $
2,152
---
Pre-tax adjusted income (loss) from operations by
segment
---
Evernorth $
1,443 $
1,399 $
3,774 $
3,555 $
1,249
U.S. Medical 757 953 3,479 3,113 1,523
International Markets 208 194 809 607 319
Group Disability and Other 70 143 279 376 132
Corporate (366) (442) (1,171) (1,385) (400)
---
Consolidated pre-tax adjusted
income from operations 2,112 2,247 7,170 6,266 2,823
---
Adjusted income tax expense (494) (529) (1,642) (1,410) (671)
---
Consolidated after-tax adjusted
income from operations $
1,618 $
1,718 $
5,528 $
4,856 $
2,152
---
DILUTED EARNINGS PER SHARE
Shareholders' net income $
3.78 $
3.57 $
11.66 $
10.83 $
4.73
After-tax adjustments to reconcile to adjusted
income from operations
Net realized investment (gains)
losses (0.17) (0.13) (0.20) (0.26) (0.24)
Amortization of acquired intangible
assets 1.02 1.47 2.86 4.43 1.02
Adjustment for transitioning
clients - (0.55) (3.19)
Special items
Integration and transaction-
related costs 0.23 0.24 0.69 0.82 0.27
Debt extinguishment costs - 0.41 0.03
Charge for organizational
efficiency plan - 0.06
(Benefits) charges associated with
litigation matters - (0.06) 0.05 0.11
Risk corridors recovery (0.21) (0.20)
Contractual adjustment for a former
client (0.24) (0.42)
---
Adjusted income from operations(2) $
4.41 $
4.54 $
14.91 $
12.74 $
5.81
---
Weighted average shares (in
thousands) 367,190 378,321 370,831 381,091 370,697
---
Common shares outstanding (in thousands) 362,403 373,978 368,258
---
SHAREHOLDERS' EQUITY at September 30, $
48,032 $
44,696
---
SHAREHOLDERS' EQUITY PER SHARE at September 30, $
132.54 $
119.52
---
(1) Adjusted revenues is defined as
total revenues excluding the
following adjustments: special
items and Cigna's share of certain
realized investment results of its
joint ventures reported using the
equity method. For periods prior
to 2020, we also excluded revenue
contributions from transitioning
clients. These items are excluded
because they are not indicative of
past or future underlying
performance of our businesses.
(2) Adjusted income (loss) from
operations is defined as
shareholders' net income (loss)
excluding the following after-tax
adjustments: realized investment
results, amortization of acquired
intangible assets and special
items. For periods prior to 2020,
we also excluded earnings
contributions from transitioning
clients.
INVESTOR RELATIONS CONTACT:
Alexis Jones
215-761-3637
alexis.jones@cigna.com
MEDIA CONTACT:
Ellie Polack
860-902-4906
elinor.polack@cigna.com
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SOURCE Cigna
