BLOOMFIELD, Conn., May 7, 2021 /PRNewswire/ --
- Total revenues in the first quarter were $41.0 billion, and adjusted revenues1
were $41.0 billion
- Shareholders' net income for the first quarter was
$1.2 billion, or $3.30 per share
- Adjusted income from operations2 for the first
quarter was $1.7 billion, or
$4.73 per share
- Adjusted income from operations2,3 is now
projected to be at least $7.0 billion
in 2021, or at least $20.20 per
share3
Global health services company Cigna Corporation (NYSE: CI)
today reported strong first quarter 2021 results driven by focused
execution across its businesses.
"Cigna remains dedicated to supporting our customers, clients,
and communities through the disruption of the COVID-19 pandemic,
while also delivering strong financial results, as demonstrated
through our first quarter performance," said David M. Cordani, President and Chief Executive
Officer. "As we continue to execute against our three-pronged
growth framework – delivering differentiated value, partnering and
innovating, and expanding our addressable markets – we are well
positioned to meet the most pressing needs of those we serve as we
make health care more affordable, predictable, and simple, even in
a dynamic environment."
Total revenues for first quarter 2021 were $41.0 billion. Adjusted revenues1 were
$41.0 billion and reflect strong
contributions from each of Cigna's ongoing
businesses.
Shareholders' net income for first quarter 2021 was $1.2 billion, or $3.30 per share compared with $1.2 billion, or $3.15 per share, for first quarter 2020.
Cigna's adjusted income from operations2 for first
quarter 2021 was $1.7 billion, or
$4.73 per share, compared with
$1.8 billion, or $4.69 per share, for first quarter 2020
reflecting focused execution across the ongoing businesses, led by
Evernorth.
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
|
|
March
31,
|
December
31,
|
|
2021
|
2020
|
2020
|
|
|
|
|
Total
Revenues
|
$
|
40,971
|
|
$
|
38,469
|
|
$
|
41,712
|
|
Net Realized Investment
Losses (Gains) from Equity Method
Investments1
|
14
|
|
10
|
|
(43)
|
|
Special
Items1
|
—
|
|
(87)
|
|
—
|
|
Adjusted
Revenues1
|
$
|
40,985
|
|
$
|
38,392
|
|
$
|
41,669
|
|
|
|
|
|
Consolidated
Earnings, net of taxes
|
|
|
|
Shareholders' Net
Income
|
$
|
1,161
|
|
$
|
1,181
|
|
$
|
4,135
|
|
Net Realized Investment
Losses (Gains)2
|
13
|
|
77
|
|
(169)
|
|
Amortization of Other
Acquired Intangible Assets2
|
388
|
|
309
|
|
370
|
|
Special
Items2
|
102
|
|
191
|
|
(3,069)
|
|
Adjusted Income from
Operations2
|
$
|
1,664
|
|
$
|
1,758
|
|
$
|
1,267
|
|
|
|
|
|
Shareholders' Net
Income, per share
|
$
|
3.30
|
|
$
|
3.15
|
|
$
|
11.45
|
|
Adjusted Income from
Operations2, per share
|
$
|
4.73
|
|
$
|
4.69
|
|
$
|
3.51
|
|
- Through the end of the first quarter, the Company repurchased
12.7 million shares of common stock for approximately $2.8 billion. Year to date through May 6, 2021, the Company repurchased 14.4 million
shares of common stock for approximately $3.2 billion.
- The debt-to-capitalization ratio was 39.9% at March 31, 2021, in line with our long term target
of approximately 40%.
- The SG&A expense ratio4 was 8.0% for first
quarter 2021, a decrease from 8.5% for first quarter 2020, driven
by revenue growth, continued expense efficiency, and the repeal of
the health insurance industry tax.
CUSTOMER RELATIONSHIPS
The following table summarizes Cigna's medical customers and
overall customer relationships:
Customer
Relationships (in thousands):
|
|
|
As of the Periods
Ended
|
|
March
31,
|
December
31,
|
|
2021
|
2020
|
2020
|
|
|
|
|
Total Customer
Relationships5
|
189,929
|
|
167,019
|
|
185,375
|
|
|
|
|
|
Total Pharmacy
Customers5
|
101,002
|
|
78,804
|
|
98,850
|
|
|
|
|
|
U.S. Commercial6
|
13,552
|
|
14,140
|
|
13,626
|
|
U.S. Government6
|
1,464
|
|
1,412
|
|
1,387
|
|
International
Markets
|
1,687
|
|
1,666
|
|
1,660
|
|
Total Medical
Customers5
|
16,703
|
|
17,218
|
|
16,673
|
|
|
|
|
|
Behavioral
Care
|
38,950
|
|
37,231
|
|
36,908
|
|
Dental
|
17,800
|
|
18,018
|
|
17,542
|
|
Medicare Part
D
|
3,184
|
|
3,295
|
|
3,291
|
|
International Markets
Supplemental Policies5,7
|
12,290
|
|
12,453
|
|
12,111
|
|
- The pharmacy customer base5 at first quarter 2021
grew to 101.0 million, an organic increase of 2.2 million year to
date, driven by strong ongoing retention and new sales.
- The total medical customer base5 at first quarter
2021 was 16.7 million, an increase of 30,000 customers year to
date, driven by growth in the Individual business, Select segment,
and Medicare Advantage, partially offset by Commercial
disenrollment throughout the quarter.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 1 for a reconciliation of adjusted income (loss)
from operations2 to shareholders' net income.
Evernorth6
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
|
|
March
31,
|
December
31,
|
|
2021
|
2020
|
2020
|
|
|
|
|
Adjusted
Revenues1
|
$
|
30,620
|
|
$
|
27,168
|
|
$
|
30,533
|
|
Adjusted Income from
Operations, Pre-Tax2
|
$
|
1,223
|
|
$
|
1,082
|
|
$
|
1,589
|
|
Adjusted Margin,
Pre-Tax8
|
4.0%
|
|
4.0%
|
|
5.2%
|
|
- First quarter 2021 adjusted revenues1 increased 13%
relative to first quarter 2020 driven by strong organic growth,
including growth in retail network and specialty pharmacy
services.
- First quarter 2021 adjusted income from operations,
pre-tax2 increased 13% relative to first quarter 2020,
reflecting benefits from the effective management of the supply
chain, business growth, and strong performance in specialty
pharmacy services.
- Evernorth fulfilled 393 million adjusted pharmacy
scripts9 in first quarter 2021, an increase of 9% over
first quarter 2020 driven by strong organic growth.
U.S. Medical6
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
|
|
March
31,
|
December
31,
|
|
2021
|
2020
|
2020
|
|
|
|
|
Adjusted
Revenues1
|
$
|
10,362
|
|
$
|
9,860
|
|
$
|
9,725
|
|
Adjusted Income from
Operations, Pre-Tax2
|
$
|
987
|
|
$
|
1,199
|
|
$
|
328
|
|
Adjusted Margin,
Pre-Tax8
|
9.5%
|
|
12.2%
|
|
3.4%
|
|
- First quarter 2021 adjusted revenues1 grew 5% over
first quarter 2020, reflecting customer growth in Medicare
Advantage, the Individual business and the Select Segment, as well
as premium increases and favorable net investment income.
- First quarter 2021 adjusted income from operations, pre-tax²
and adjusted margin, pre-tax8 decreased relative to
first quarter 2020 reflecting COVID-19 related impacts and the net
impact of non-recurring items, partially offset by favorable net
investment income and the repeal of the health insurance industry
tax. COVID-19 related impacts include the direct costs of COVID-19
testing, treatment and vaccines, lower Medicare Advantage risk
adjustment revenues, decreased contributions from specialty
products, and increased disenrollment resulting from the economic
impacts of the pandemic, partially offset by a reduction in
non-COVID utilization.
- The medical care ratio4 ("MCR") of 81.8% for first
quarter 2021 compares to 78.3% for first quarter 2020 and reflects
COVID-19 related impacts and the pricing effect of the repeal of
the health insurance industry tax, partially offset by one fewer
calendar day in the first quarter of 2021.
- U.S. Medical net medical costs payable10 was
$3.32 billion at March 31, 2021, $2.80
billion at March 31, 2020, and
$2.96 billion at December 31, 2020. Favorable prior year reserve
development on a gross pre-tax basis was $185 million and $152
million through first quarter 2021 and 2020,
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
|
|
March
31,
|
December
31,
|
|
2021
|
2020
|
2020
|
|
|
|
|
Adjusted
Revenues1,7
|
$
|
1,572
|
|
$
|
1,470
|
|
$
|
1,535
|
|
Adjusted Income from
Operations, Pre-Tax2
|
$
|
262
|
|
$
|
282
|
|
$
|
91
|
|
Adjusted Margin,
Pre-Tax8
|
16.7%
|
|
19.2%
|
|
5.9%
|
|
- First quarter 2021 adjusted revenues1,7 grew 7% over
first quarter 2020, reflecting favorable foreign currency movements
and continued business growth.
- First quarter 2021 adjusted income from operations,
pre-tax2 and adjusted margin, pre-tax8
decreased relative to first quarter 2020 reflecting the absence of
a favorable impact from a refinement to the accounting for
acquisition costs in first quarter 2020 as well as higher claims
costs, partially offset by favorable net investment income,
favorable foreign currency movements, and ongoing business
growth.
Corporate and Other
Operations6
Corporate reflects interest expense, as well as amounts not
allocated to operating segments and includes intersegment
eliminations. Additionally, this discussion includes items reported
in our Other Operations segment which is primarily comprised of
Corporate Owned Life Insurance ("COLI") and the company's run-off
operations.
Financial Results
(dollars in millions):
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
December
31,
|
|
2021
|
2020
|
2020
|
|
|
|
|
Adjusted (Loss) from
Operations, Pre-Tax2
|
$
|
(330)
|
|
$
|
(328)
|
|
$
|
(370)
|
|
|
|
|
|
|
|
|
|
|
|
- First quarter 2021 adjusted loss from operations,
pre-tax2 was in line with first quarter 2020 reflecting
lower interest expense due to lower levels of outstanding debt,
offset by the absence of contributions from the Group Disability
and Life business which was divested on December 31, 2020.
2021 OUTLOOK
Cigna's outlook for full year 2021 adjusted
revenues1,3 is projected to be at least $166 billion. Cigna's outlook for full year 2021
consolidated adjusted income from operations2,3 is at
least $7.0 billion, or at least
$20.20 per share. This outlook
includes approximately $1.25 per
share in net unfavorable impacts of COVID-19. Additionally, this
outlook includes the impact of expected future share repurchases
and anticipated 2021 dividends.
(dollars in
millions, except where noted and per share amounts)
|
|
2021 Consolidated
Metrics
|
Projection for
Full Year Ending
December 31,
2021
|
Change from
Prior Projection
|
Adjusted
Revenues1,3
|
at least
$166,000
|
+$1,000
|
Adjusted Income from
Operations2,3
|
at least
$7,000
|
+$50
|
Adjusted Income from
Operations, per share2,3
|
at least
$20.20
|
+$0.20
|
SG&A Expense
Ratio3,4
|
7.5% to
8.0%
|
|
Adjusted Margin,
After-Tax3,8
|
~4.2%
|
|
Cash Flow from
Operations3
|
at least
$7,500
|
|
Weighted Average
Shares Outstanding (millions)3
|
346 to
348
|
-0.5 at the
midpoint
|
|
|
|
2021 Evernorth
Metrics
|
|
|
Adjusted Income from
Operations, Pre-Tax2,3
|
at least
$5,650
|
+$50
|
|
|
|
2021 U.S. Medical
Metrics
|
|
|
Adjusted Income from
Operations, Pre-Tax2,3
|
at least
$3,800
|
|
Medical Care
Ratio4
|
81.0% to
82.0%
|
|
|
|
|
Total Medical
Customer Growth (lives)5
|
at least
350,000
|
+25,000
|
The foregoing statements represent the Company's current
estimates of Cigna's 2021 consolidated and segment adjusted income
from operations2,3 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
(https://investors.cigna.com/home/default.aspx). Management
will be hosting a conference call to review first quarter 2021
results and discuss full year 2021 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://investors.cigna.com/events-and-presentations/default.aspx.
The call-in numbers for the conference call are as follows:
Live Call
(800) 857-1657 (Domestic)
(773) 799-3811 (International)
Passcode: 572021
Replay
(800) 551-8152 (Domestic)
(203) 369-3810 (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,
Connecticut General Life Insurance Company, Evernorth companies or
their affiliates, and Express Scripts companies or their
affiliates. 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.
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 special items and Cigna's share of certain realized
investment results of its joint ventures reported in the
International Markets segment using the equity method of
accounting. Special items are identified in Exhibit 1 of this
earnings release. 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
from operations is defined as shareholders' net income (or income
before income taxes for the segment metric) excluding the following
adjustments: net realized investment results, amortization of
acquired intangible assets and special items. Cigna's share of
certain realized investment results of its joint ventures reported
in the International Markets segment using the equity method of
accounting are also excluded. 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.
|
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 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 2021 dividends.
|
|
|
|
As announced in
January 2021, Cigna currently intends to pay regular quarterly
dividends, with future declarations subject to approval by its
Board of Directors and the Board's determination that the
declaration of dividends remains in the best interests of Cigna and
its shareholders. The decision of whether to pay future dividends
and the amount of any such dividends will be based on the Company's
financial position, results of operations, cash flows, capital
requirements, the requirements of applicable law and any other
factors the Board of Directors may deem relevant.
|
|
|
|
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.
|
|
|
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 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. Effective January 1, 2021, Pharmacy lives have been
updated to reflect actual eligibility data for benefits provided to
Prime Therapeutics. Previously these lives had been estimated based
on prescriptions filled during the period. Pharmacy lives as of
December 31, 2020 have been restated to reflect this
change.
|
|
•
|
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.
|
|
•
|
Total customer
relationships excludes covered lives associated with the Group
Disability and Life business that was sold on December 31,
2020.
|
|
|
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.
|
|
|
|
Beginning first
quarter 2021, in our earnings release and quarterly financial
supplement "Corporate and Other Operations" combines the results
previously reported as "Corporate" and the segment previously
reported as "Group Disability and Other", which is now reported as
"Other Operations" in our securities filings. This change to
simplify reporting was enabled by the sale of the Group Disability
and Life business.
|
|
|
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 $3.55 billion as of March 31, 2021, $3.18 billion
as of December 31, 2020, and $3.00 billion as of
March 31, 2020.
|
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 from operations outlook
for 2021 on a consolidated per share, and segment basis; projected
adjusted revenue outlook for 2021; projected total medical customer
growth over year end 2020; projected medical care and SG&A
expense ratios; projected adjusted margin; projected cash flow from
operations; projected weighted average shares outstanding; future
financial or operating performance, including our ability to
deliver affordable, personalized and innovative solutions for our
customers and clients, including in light of the challenges
presented by the COVID-19 pandemic; 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; strategic
transactions; and other statements regarding Cigna'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," "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; the scale, scope and
duration of the COVID-19 pandemic and its potential impact on our
business, operating results, cash flows or financial condition, our
ability to compete effectively, differentiate our products and
services from those of our competitors and maintain or increase
market share; price competition and other pressures that could
compress our margins or result in premiums that are insufficient to
cover the cost of services delivered to our customers; the
potential for actual claims to exceed our estimates related to
expected medical claims; our ability to develop and maintain
satisfactory relationships with 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; political,
legal, operational, regulatory, economic and other risks that could
affect our multinational operations; risks related to strategic
transactions and realization of the expected benefits of such
transactions, as well as integration 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; our
ability to invest in and properly maintain our information
technology and other business systems; our ability to prevent or
contain effects of a potential cyberattack or other privacy or data
security incident; 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, 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, stock
market or interest rate declines, 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; unfavorable industry, economic
or political conditions; 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.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
|
Three Months
Ended
|
|
March
31,
|
December
31,
|
|
2021
|
2020
|
2020
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Pharmacy
revenues
|
$
|
28,025
|
|
$
|
25,098
|
|
$
|
28,305
|
|
Premiums
|
10,214
|
|
10,840
|
|
10,699
|
|
Fees and other
revenues
|
2,341
|
|
2,178
|
|
2,337
|
|
Net investment
income
|
391
|
|
353
|
|
371
|
|
Total
Revenues
|
40,971
|
|
38,469
|
|
41,712
|
|
Net realized
investment results from certain equity method
investments
|
14
|
|
10
|
|
(43)
|
|
Special item related
to contractual adjustment for a former client
|
—
|
|
(87)
|
|
—
|
|
Adjusted revenues
(1)
|
$
|
40,985
|
|
$
|
38,392
|
|
$
|
41,669
|
|
|
|
|
|
SHAREHOLDERS' NET
INCOME
|
|
|
|
|
|
|
|
Shareholders' net
income
|
$
|
1,161
|
|
$
|
1,181
|
|
$
|
4,135
|
|
After-tax adjustments
to reconcile adjusted income from operations
|
|
|
|
Net realized
investment (gains) losses (2)
|
13
|
|
77
|
|
(169)
|
|
Amortization of
acquired intangible assets
|
388
|
|
309
|
|
370
|
|
Special
Items
|
|
|
|
Debt extinguishment
costs
|
101
|
|
140
|
|
—
|
|
Integration and
transaction-related costs
|
22
|
|
74
|
|
148
|
|
Charges associated
with litigation matters
|
(21)
|
|
19
|
|
—
|
|
Charge for
organizational efficiency plan
|
—
|
|
24
|
|
—
|
|
Contractual adjustment
for a former client
|
—
|
|
(66)
|
|
—
|
|
(Gain) on sale of
business
|
—
|
|
—
|
|
(3,217)
|
|
Adjusted income from
operations
|
$
|
1,664
|
|
$
|
1,758
|
|
$
|
1,267
|
|
|
|
|
|
Pre-tax adjusted
income (loss) from operations by segment
|
|
|
|
Evernorth
|
$
|
1,223
|
|
$
|
1,082
|
|
$
|
1,589
|
|
U.S. Medical
|
987
|
|
1,199
|
|
328
|
|
International
Markets
|
262
|
|
282
|
|
91
|
|
Corporate and Other
Operations
|
(330)
|
|
(328)
|
|
(370)
|
|
Consolidated pre-tax
adjusted income from operations
|
2,142
|
|
2,235
|
|
1,638
|
|
Adjusted income tax expense
|
(478)
|
|
(477)
|
|
(371)
|
|
Consolidated after-tax
adjusted income from operations
|
$
|
1,664
|
|
$
|
1,758
|
|
$
|
1,267
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
Shareholders' net
income
|
$
|
3.30
|
|
$
|
3.15
|
|
$
|
11.45
|
|
After-tax adjustments
to reconcile to adjusted income from operations
|
|
|
|
Net realized
investment (gains) losses (2)
|
0.04
|
|
0.21
|
|
(0.47)
|
|
Amortization of
acquired intangible assets
|
1.10
|
|
0.82
|
|
1.03
|
|
Special
items
|
|
|
|
Debt extinguishment
costs
|
0.29
|
|
0.38
|
|
—
|
|
Integration and
transaction-related costs
|
0.06
|
|
0.20
|
|
0.41
|
|
Charges associated
with litigation matters
|
(0.06)
|
|
0.05
|
|
—
|
|
Charge for
organizational efficiency plan
|
—
|
|
0.06
|
|
—
|
|
Contractual adjustment
for a former client
|
—
|
|
(0.18)
|
|
—
|
|
(Gain) on sale of
business
|
—
|
|
—
|
|
(8.91)
|
|
Adjusted income from
operations (3)
|
$
|
4.73
|
|
$
|
4.69
|
|
$
|
3.51
|
|
Weighted average
shares (in thousands)
|
351,976
|
|
374,639
|
|
361,115
|
|
Common shares
outstanding (in thousands)
|
344,454
|
|
369,317
|
|
354,771
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY at March 31,
|
$
|
48,149
|
|
$
|
45,079
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY PER SHARE at March 31,
|
$
|
139.78
|
|
$
|
122.06
|
|
|
|
(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 in the
International Markets segment using the equity method of
accounting. These items are excluded because they are not
indicative of past or future underlying performance of our
businesses.
|
|
(2) Includes the
Company's share of certain realized investments results of its
joint ventures reported in the International Markets segment using
the equity method of accounting.
|
|
(3) Adjusted
income from operations is defined as shareholders' net income (or
income before income taxes for the segment metric) excluding the
following adjustments: net realized investment results,
amortization of acquired intangible assets and special items.
Cigna's share of certain realized investment results of its joint
ventures reported in the International Markets segment using the
equity method of accounting are also excluded.
|
INVESTOR RELATIONS CONTACT:
Alexis Jones
215-761-3637
Alexis.Jones@cigna.com
MEDIA CONTACT:
Justine Sessions
860-810-6523
Justine.Sessions@cigna.com
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SOURCE Cigna