- Total revenues in the third quarter were $38.6 billion.
Adjusted revenues1 were $35.8 billion.
- Shareholders’ net income for the third quarter was $1.35
billion, or $3.57 per share
- Adjusted income from operations2 for the third quarter was
$1.72 billion, or $4.54 per share
- Adjusted income from operations2,3,4 is now projected to be in
the range of $6.38 billion to $6.46 billion in 2019, or $16.80 to
$17.00 per share3, which represents per share growth of 18% to 20%
over 2018
Global health service company Cigna Corporation (NYSE: CI) today
reported strong third quarter 2019 results led by the Health
Services and Integrated Medical segments.
“Cigna's strong results and continued momentum reflect the
differentiated value we create for our customers and clients,” said
David M. Cordani, President and Chief Executive Officer. “Our
combination with Express Scripts enables us to leverage industry
leading capabilities and more rapidly innovate to enhance clinical
and cost outcomes for those we serve.”
Total revenues for third quarter 2019 were $38.6 billion.
Adjusted revenues1 were $35.8 billion and reflect strong
contributions from each of Cigna's ongoing businesses.
Shareholders’ net income for third quarter 2019 was $1.35
billion, or $3.57 per share, compared with $0.77 billion, or $3.14
per share, for third quarter 2018.
Cigna's adjusted income from operations2 for third quarter 2019
was $1.72 billion, or $4.54 per share, compared with $0.95 billion,
or $3.84 per share, for third quarter 2018. This reflects strong
earnings contributions led by the Health Services and Integrated
Medical segments.
Reconciliations of total revenues to adjusted revenues1 and of
shareholders’ net income to adjusted income from operations2 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 revenues1 and
shareholders’ net income to adjusted income from operations2:
Consolidated Financial Results (dollars
in millions):
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
2019
2018
2019
2019
Total Revenues
$
38,556
$
11,457
$
38,819
$
115,321
Net Realized Investment Losses (Gains)
from Equity Method Investments1
(5)
1
6
(27)
Special Items and Transitioning Client
Contributions1
(2,718)
(13)
(4,450)
(11,657)
Adjusted Revenues1
$
35,833
$
11,445
$
34,375
$
103,637
Consolidated Earnings, net of
taxes
Shareholders’ Net Income
$
1,351
$
772
$
1,408
$
4,127
Net Realized Investment (Gains)
Losses2
(49)
(1)
(13)
(100)
Amortization of Other Acquired Intangible
Assets2
558
36
572
1,694
Special Items and Transitioning Client
Contributions1,2
(142)
138
(327)
(865)
Adjusted Income from Operations2
$
1,718
$
945
$
1,640
$
4,856
Shareholders’ Net Income, per share
$
3.57
$
3.14
$
3.70
$
10.83
Adjusted Income from Operations2, per
share
$
4.54
$
3.84
$
4.30
$
12.74
- Cigna’s third quarter results reflect strong revenue and
earnings growth, as we delivered strong medical and pharmacy cost
performance, and continue to create value through the integration
of the acquired Express Scripts business.
- Year to date through October 30, 2019, the Company repurchased
10.8 million shares of common stock for approximately $1.8
billion.
- The debt to capitalization ratio decreased to 46.4% at
September 30, 2019, from 50.9% at December 31, 2018.
- The SG&A expense ratio5 was 9.2% for third quarter 2019, a
significant decrease from 23.8% for third quarter 2018, driven by
business mix changes resulting from the Express Scripts combination
and the health insurance tax suspension.
CUSTOMER RELATIONSHIPS
The following table summarizes our medical customers and overall
customer relationships:
Customer Relationships (in thousands):
As of the Periods
Ended
September 30,
June 30,
December 31,
2019
2018
2019
2018
Commercial
14,121
13,899
14,026
13,982
Government
1,374
1,402
1,382
1,407
International Markets
1,576
1,558
1,589
1,572
Total Medical Customers6
17,071
16,859
16,997
16,961
Pharmacy6
75,663
8,819
75,171
73,230
Behavioral Care
28,744
27,113
28,577
27,215
Dental
17,079
16,518
17,077
16,544
Medicare Part D
3,269
767
3,266
3,295
International Markets Supplemental
Policies6,7
12,486
12,281
12,500
12,569
Group Disability and Life Covered
Lives6
15,400
15,300
15,400
14,800
Total Customer Relationships
169,712
97,657
168,988
164,614
- The total medical customer base6 at third quarter 2019 grew to
17.1 million, an organic increase of 110,000 customers year to date
and 212,000 over third quarter 2018 driven by growth in the Select
and Middle Market segments, partially offset by a decline in
National Accounts.
- The pharmacy customer base6 at third quarter 2019 grew to 75.7
million, an organic increase of 2.4 million customers year to date,
driven by strong new commercial sales.
- Pharmacy6 and Medicare Part D customers in the second and third
quarter 2019 and fourth quarter 2018 include customers gained
through the completion of the Express Scripts combination on
December 20, 2018.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 1 for a reconciliation of adjusted income (loss)
from operations2 to shareholders’ net income.
Health
Services
This segment includes a broad range of pharmacy services,
including benefits management, specialty pharmacy services,
clinical solutions, home delivery, and health management
services.
Financial Results (dollars in
millions):
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
2019
2018
2019
2019
Adjusted Revenues1
$
24,880
$
1,109
$
23,537
$
70,877
Adjusted Income from Operations,
Pre-Tax2
$
1,399
$
67
$
1,162
$
3,555
Adjusted Margin, Pre-Tax8
5.6%
6.0%
4.9%
5.0%
- Cigna completed the combination with Express Scripts on
December 20, 2018. Accordingly, contributions from the Express
Scripts business are reflected in the Health Services segment
results for 2019, and are not reflected in third quarter 2018
results.
- Growth in third quarter 2019 adjusted revenues1 and adjusted
income from operations, pre-tax2 over third quarter 2018 were
driven by the combination with Express Scripts.
- Third quarter 2019 adjusted income from operations, pre-tax2
and adjusted margin, pre-tax8 reflect organic growth in adjusted
pharmacy script volumes, strong performance in specialty pharmacy
care and effective execution of supply chain initiatives.
- Health Services fulfilled 312 million adjusted pharmacy
scripts9 in third quarter 2019, and 294 million adjusted pharmacy
scripts9 in second quarter 2019.
Integrated
Medical
This segment includes Cigna’s U.S. Commercial and Government
businesses that provide comprehensive medical 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 to insured and
self-insured customers. Government solutions include Medicare
Advantage, Medicare Supplement, and Medicare Part D plans for
seniors, Medicaid plans, and individual health insurance coverage
both on and off the public exchanges.
Financial Results (dollars in
millions):
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
2019
2018
2019
2019
Adjusted Revenues1
$
9,148
$
8,174
$
8,968
$
27,311
Adjusted Income from Operations,
Pre-Tax2
$
953
$
932
$
990
$
3,113
Adjusted Margin, Pre-Tax8
10.4%
11.4%
11.0%
11.4%
- Third quarter 2019 adjusted revenues1 increased 12% relative to
third quarter 2018, driven by Commercial customer growth and
deepening of relationships, as well as premium increases consistent
with underlying cost trends.
- Third quarter 2019 adjusted income from operations, pre-tax2
and adjusted margin, pre-tax8 reflect strong medical and specialty
contributions, continued effective medical cost management, as well
as investments to drive long-term growth.
- Adjusted income from operations, pre-tax2 for third quarter
2019, second quarter 2019, and third quarter 2018 included
favorable net prior year reserve development on a pre-tax basis of
$8 million, $28 million and $18 million, respectively.
- The medical care ratio5 (“MCR”) of 80.5% for third quarter 2019
reflects continued effective execution in our commercial and
government businesses. The third quarter 2019 MCR increased
relative to third quarter 2018, as expected, driven by the pricing
effect of the health insurance tax suspension, a higher MCR in our
individual medical business, and the effect on medical costs of one
additional business day in third quarter 2019.
- Integrated Medical net medical costs payable10 was
approximately $2.73 billion at September 30, 2019, $2.48 billion at
September 30, 2018 and $2.43 billion at December 31, 2018.
International
Markets
This segment includes supplemental health, life and accident
insurance products and health care coverage in our international
markets, as well as health care benefits for globally mobile
individuals and employees of multinational organizations.
Financial Results (dollars in millions, policies and
customers in thousands):
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
2019
2018
2019
2019
Adjusted Revenues1,7
$
1,402
$
1,326
$
1,389
$
4,185
Adjusted Income from Operations,
Pre-Tax2
$
194
$
195
$
207
$
607
Adjusted Margin, Pre-Tax8
13.8%
14.7%
14.9%
14.5%
As of the Periods
Ended
September 30,
June 30,
December 31,
2019
2018
2019
2018
International Markets Supplemental
Policies6,7
12,486
12,281
12,500
12,569
International Markets Medical
Customers6
1,576
1,558
1,589
1,572
- Excluding the impact of foreign currency movements, third
quarter 2019 adjusted revenues1,7 grew 9% over third quarter 2018
reflecting continued business growth.
- Third quarter 2019 adjusted income from operations, pre-tax2
and adjusted margin, pre-tax8 reflect continued business growth and
operational efficiency, partially offset by unfavorable foreign
currency impacts.
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,
2019
2018
2019
2019
Adjusted Revenues1
$
1,284
$
1,262
$
1,309
$
3,889
Adjusted Income from Operations,
Pre-Tax2
$
143
$
143
$
149
$
376
Adjusted Margin, Pre-Tax8
11.1%
11.3%
11.4%
9.7%
- Third quarter 2019 adjusted income from operations, pre-tax2
and adjusted margin, pre-tax8 reflect solid disability and life
performance.
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,
2019
2018
2019
2019
Adjusted (Loss) from Operations,
Pre-Tax2
$
(442)
$
(83)
$
(453)
$
(1,385)
- Third quarter 2019 adjusted loss from operations, pre-tax2
increased relative to third quarter 2018 as a result of higher
interest expense associated with the financing of the combination
with Express Scripts.
2019 OUTLOOK
Cigna's outlook for full year 2019 consolidated adjusted income
from operations2,3,4 is in the range of $6.38 billion to $6.46
billion, or $16.80 to $17.00 per share. Cigna’s outlook excludes
the impact of additional prior year reserve development of medical
costs and potential effects of any future share repurchase4.
(dollars in millions, except where noted
and per share amounts)
Projection for Full- Year
Ending
Change from Prior
December 31, 2019
Projection
2019 Consolidated
Operating Metrics
Adjusted Income from
Operations2,3,4
$
6,380 to 6,460
$
+ 0 to 40
Adjusted Income from Operations, per
share2,3,4
$
16.80 to 17.00
$
+ 0.10 to 0.20
Adjusted Revenues1,3
$
~ $138,000
$
+ 1,500
SG&A Expense Ratio5
less than 10%
Adjusted Tax Rate11
~ 23%
- 50 bps
2019
Segment-Level Operating Metrics
Adjusted Income from Operations,
Pre-Tax2,3,4
Health Services
$
5,075 to 5,175
No change at midpoint
Integrated Medical
$
3,800 to 3,850
$
+ 0 to 20
Adjusted Pharmacy Scripts – Health
Services9
~ 1.22 billion
No change at midpoint
Medical Customer Growth6
~ 200,000 Customers
Medical Care Ratio5
80.8% to 81.2%
No change at midpoint
Medical Cost Trend12
3.5% to 4.5%
2020 OUTLOOK
Health Services’ projected 2020 retention rate for the 2019
selling season for pharmacy services is 97%. Health Services’
adjusted pharmacy scripts9 are expected to grow 25 to 35 million
scripts organically in 2020.
The foregoing statements represent the Company’s current
estimates of Cigna's 2019 consolidated and segment adjusted income
from operations2,3,4 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 Cigna’s website in the Investor
Relations section (http://www.cigna.com/aboutcigna/investors).
Management will be hosting a conference call to review third
quarter 2019 results and discuss full year 2019 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
(888) 324-7575 (Domestic)
(210) 234-0013 (International)
Passcode: 10312019
Replay
(800) 518-0087 (Domestic)
(402) 998-0052 (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, 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 more than 165 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.” We define adjusted revenues as total revenues excluding
revenue contributions from transitioning pharmacy benefit
management clients, Anthem Inc. and Coventry Health Care, Inc. (the
“transitioning clients”), net realized investment results from
equity method investments, and special items. We exclude 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: earnings contributions from transitioning clients, net
realized investment results, amortization of acquired intangible
assets, and special items. Special items are identified in Exhibit
1 of this earnings release. 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
adjusted income from operations to shareholders’ net
income.
Effective in the fourth quarter of
2018, Cigna updated its segments. Refer to our Current Report on
Form 8-K filed with the Securities and Exchange Commission on
January 23, 2019 and our Annual Report on Form 10-K for the year
ended December 31, 2018 for additional information and prior period
results on the historic and new segment bases.
3.
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 we are unable to predict, without unreasonable effort,
certain components thereof including (i) future net realized
investment results (from equity method investments with respect to
adjusted revenues) and (ii) future special items. These items are
inherently uncertain and depend on various factors, many of which
are beyond our control. As such, any associated estimate and its
impact on shareholders’ net income could vary materially.
4.
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.
5.
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 our Integrated Medical segment.
- SG&A expense ratio represents enterprise selling,
general and administrative expenses excluding special items and
expenses from transitioning clients, as a percentage of adjusted
revenue at a consolidated level.
6.
Customer relationships are defined as follows:
- Total medical customers includes individuals in our
Integrated 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 excludes transitioning
clients.
- International Markets policies exclude International Markets
medical customers included in total medical customers.
- Group Disability and Life covered lives are
estimated.
7.
Cigna owns a 50% noncontrolling 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.
9.
For Health Services 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. Adjusted pharmacy scripts
guidance does not include script volumes associated with
transitioning clients. Outlook for organic adjusted pharmacy script
growth of 25 to 35 million scripts in 2020 excludes volumes
expected to be insourced from OptumRx under the terms of the
transition services agreement.
10.
Medical costs payable within the Integrated Medical segment
are presented net of reinsurance and other recoverables. The gross
medical costs payable balance was $3.06 billion as of September 30,
2019, $2.70 billion as of December 31, 2018, and $2.72 billion as
of September 30, 2018. The Integrated Medical days claims payable
was 41.6 days at September 30, 2019, 40.7 days at December 31, 2018
and 43.7 days at September 30, 2018.
11.
The measure “adjusted 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 tax rate as the consolidated income
tax rate applicable to the Company’s pre-tax income excluding net
realized investment results, amortization of acquired intangible
assets, special items, and transitioning clients. 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.
12.
Medical cost trend includes all U.S. commercial employer
funding arrangements.
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 adjusted income (loss) from operations
outlook for 2019, on a consolidated, per share, and segment basis;
projected adjusted revenue outlook for 2019; projected global
medical customer growth over year end 2018; projected client
retention; projected growth beyond 2019; statements concerning our
long-term projected adjusted income (loss) from operations outlook;
projected medical care and SG&A expense ratios and medical cost
trends; projected adjusted pharmacy scripts; our projected
consolidated adjusted tax rate; projected debt to capitalization
ratio; projected cash flow from operations; future financial or
operating performance, including our ability to deliver affordable,
personalized and innovative solutions for our customers and
clients; future growth, business strategy, strategic or operational
initiatives; 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; the merger (the “Merger”) with Express Scripts Holding
Company (“Express Scripts”) 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 and pharmaceutical manufacturers;
changes in drug pricing; the impact of modifications to our
operations and processes; our ability to identify potential
strategic acquisitions or 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, as well as our ability to integrate 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
and/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; 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 war, terrorism, natural
disasters or pandemics; 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 on 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,
2019
2018
2019
2018
2019
REVENUES
Pharmacy revenues
$
25,987
$
747
$
77,454
$
2,222
$
26,288
Premiums
9,935
8,994
29,709
27,005
9,803
Fees and other revenues
2,285
1,361
7,123
4,087
2,388
Net investment income including special items
349
355
1,035
1,036
340
Total revenues
38,556
11,457
115,321
34,350
38,819
Revenue contributions from transitioning clients
(2,718)
-
(11,657)
-
(4,450)
Net realized investment results from certain equity method
subsidiaries
(5)
1
(27)
23
6
Special items reported in integration and transaction-related costs
-
(13)
-
(13)
-
Adjusted revenues (1)
$
35,833
$
11,445
$
103,637
$
34,360
$
34,375
SHAREHOLDERS' NET INCOME
Shareholders' net income
$
1,351
$
772
$
4,127
$
2,493
$
1,408
After-tax adjustments to reconcile to adjusted income from
operations:
Adjustment for transitioning clients
(207)
-
(1,217)
-
(506)
Net realized investment (gains) losses
(49)
(1)
(100)
46
(13)
Amortization of acquired intangible assets
558
36
1,694
74
572
Special items
Integration and transaction-related costs
88
108
311
267
115
Charges associated with litigation matters
(23)
35
41
35
64
U.S. tax reform
-
(5)
-
(5)
-
Adjusted income from operations (2)
$
1,718
$
945
$
4,856
$
2,910
$
1,640
Pre-tax adjusted income (loss) from
operations by segment
Health Services
$
1,399
$
67
$
3,555
$
227
$
1,162
Integrated Medical
953
932
3,113
2,859
990
International Markets
194
195
607
615
207
Group Disability and Other
143
143
376
420
149
Corporate
(442)
(83)
(1,385)
(255)
(453)
Consolidated pre-tax adjusted income from operations (2)
2,247
1,254
6,266
3,866
2,055
Income tax expense
(529)
(309)
(1,410)
(956)
(415)
Consolidated after-tax adjusted income from operations (2)
$
1,718
$
945
$
4,856
$
2,910
$
1,640
DILUTED EARNINGS PER SHARE
Shareholders' net income
$
3.57
$
3.14
$
10.83
$
10.14
$
3.70
After-tax adjustments to reconcile to adjusted income from
operations:
Adjustment for transitioning clients
(0.55)
-
(3.19)
-
(1.33)
Net realized investment (gains) losses
(0.13)
-
(0.26)
0.19
(0.03)
Amortization of acquired intangible assets
1.47
0.15
4.43
0.30
1.49
Special items
Integration and transaction-related costs
0.24
0.43
0.82
1.09
0.30
Charges associated with litigation matters
(0.06)
0.14
0.11
0.14
0.17
U.S. tax reform
-
(0.02)
-
(0.02)
-
Adjusted income from operations (2)
$
4.54
$
3.84
$
12.74
$
11.84
$
4.30
Weighted average shares (in thousands)
378,321
246,112
381,091
245,747
380,969
Common shares outstanding (in thousands)
373,978
243,505
377,883
SHAREHOLDERS' EQUITY at September 30
$
44,696
$
15,555
SHAREHOLDERS' EQUITY PER SHARE at September 30
$
119.52
$
63.88
(1) Adjusted revenues is defined as total revenues excluding the
following adjustments: revenue contributions from transitioning
clients, special items and Cigna's share of certain realized
investment results of its joint ventures reported using the equity
method. 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, special items and earnings contributions from transitioning
clients.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191031005134/en/
INVESTOR RELATIONS: Will McDowell 215-761-4198
william.mcdowell2@cigna.com
MEDIA: Ellie Polack 860-902-4906 elinor.polack@cigna.com
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