- Total revenues in the first quarter were $44.0 billion, and adjusted revenues1
were $44.1 billion
- Shareholders' net income for the first quarter was
$1.2 billion, or $3.68 per share
- Adjusted income from operations2 for the first
quarter was $1.9 billion, or
$6.01 per share
- Adjusted income from operations2,3 for 2022 is
now projected to be at least $22.60
per share3
BLOOMFIELD, Conn., May 6, 2022
/PRNewswire/ -- Global health services company Cigna Corporation
(NYSE: CI) today reported strong first quarter 2022 results
reflecting revenue and earnings growth across its businesses.
"We've had a strong start to the year as we advance our growth
strategy and support the health and well-being of our clients and
customers," said David M. Cordani,
chairman and chief executive officer. "We're taking decisive steps
forward with innovation, new partnerships and re-investing in our
company so we can achieve greater impact for the customers and
communities we're privileged to serve."
Total revenues for first quarter 2022 were $44.0 billion. Adjusted revenues1 were
$44.1 billion and reflect strong
contributions from each of Cigna's ongoing
businesses.
Shareholders' net income for first quarter 2022 was $1.2 billion, or $3.68 per share, compared with $1.2 billion, or $3.30 per share, for first quarter 2021.
Cigna's adjusted income from operations2 for first
quarter 2022 was $1.9 billion, or
$6.01 per share, compared with
$1.7 billion, or $4.73 per share, for first quarter 2021
reflecting strong earnings contributions across the Company's
businesses.
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,
|
|
2022
|
|
2021
|
|
2021
|
|
|
|
|
|
|
Total
Revenues
|
$
44,005
|
|
$
40,971
|
|
$
45,688
|
Net Realized Investment
(Gains) Losses from
Equity Method Investments1
|
103
|
|
14
|
|
(12)
|
Adjusted
Revenues1
|
$
44,108
|
|
$
40,985
|
|
$
45,676
|
|
|
|
|
|
|
Consolidated Earnings, net of
taxes
|
|
|
|
|
|
Shareholders' Net
Income
|
$
1,183
|
|
$
1,161
|
|
$
1,116
|
Net Realized Investment
(Gains) Losses2
|
355
|
|
13
|
|
(59)
|
Amortization of
Acquired Intangible Assets2
|
356
|
|
388
|
|
326
|
Special
Items2
|
37
|
|
102
|
|
189
|
Adjusted Income from
Operations2
|
$
1,931
|
|
$
1,664
|
|
$
1,572
|
|
|
|
|
|
|
Shareholders' Net
Income, per share
|
$
3.68
|
|
$
3.30
|
|
$
3.39
|
Adjusted Income from
Operations2, per share
|
$
6.01
|
|
$
4.73
|
|
$
4.77
|
- Year to date through May 5, 2022,
the Company repurchased 7.6 million shares of common stock for
approximately $1.8 billion.
- The debt-to-capitalization ratio was 41.9% at March 31,
2022, in line with fourth quarter 2021.
- The adjusted SG&A expense ratio4 was 7.4% for
first quarter 2022 compared to 8.0% for first quarter 2021, driven
by 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
|
|
|
|
March 31,
|
December 31,
|
|
|
|
2022
|
|
|
|
2021
|
2021
|
|
|
|
|
|
|
|
|
|
Total Customer
Relationships5
|
|
|
190,370
|
|
|
|
177,607
|
185,672
|
|
|
|
|
|
|
|
|
|
Total Pharmacy Customers
|
|
|
107,440
|
|
|
|
101,002
|
107,298
|
|
|
|
|
|
|
|
|
|
U.S.
Commercial
|
|
|
14,621
|
|
|
|
13,552
|
13,854
|
U.S.
Government
|
|
|
1,402
|
|
|
|
1,464
|
1,510
|
International
Health
|
|
|
1,756
|
|
|
|
1,655
|
1,717
|
Total Medical
Customers5,6
|
|
|
17,779
|
|
|
|
16,671
|
17,081
|
|
|
|
|
|
|
|
|
|
Behavioral
Care
|
|
|
44,078
|
|
|
|
38,950
|
40,380
|
Dental
|
|
|
18,169
|
|
|
|
17,800
|
17,731
|
Medicare Part
D
|
|
|
2,904
|
|
|
|
3,184
|
3,182
|
- Total customer relationships5 at first quarter 2022
grew by 3% year to date to 190.4 million.
- The total medical customer base5,6 at first quarter
2022 grew to 17.8 million, an increase of 698,000 customers year to
date, driven by growth in U.S. Commercial fee-based client
relationships, partially offset by a decrease in U.S. Government
inclusive of the divestiture of the Medicaid business.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 1 for a reconciliation of adjusted income (loss)
from operations2 to shareholders' net income.
Evernorth
This segment includes a broad range of coordinated and point
solution health services and capabilities, including pharmacy
solutions, benefits management solutions, care delivery and care
management solutions, and intelligence solutions, 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,
|
|
|
|
2022
|
2021
|
2021
|
|
|
|
|
|
|
Adjusted
Revenues1
|
|
|
$
33,586
|
$
30,620
|
$
35,086
|
Adjusted Income from
Operations, Pre-Tax2
|
|
|
$
1,302
|
$
1,223
|
$
1,634
|
Adjusted Margin,
Pre-Tax7
|
|
|
3.9%
|
4.0%
|
4.7%
|
- First quarter 2022 adjusted revenues1 increased 10%
relative to first quarter 2021 reflecting strong organic growth in
specialty pharmacy services.
- First quarter 2022 adjusted income from operations,
pre-tax2 increased 6% relative to first quarter 2021,
reflecting continued affordability improvements and business
growth, partially offset by strategic investments in expanding our
services portfolio and digital capabilities.
Cigna Healthcare6
This segment includes Cigna's U.S. Commercial, U.S. Government,
and International Health 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, and individual
health insurance plans both on and off the public exchanges.
International Health solutions include 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):
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
December 31,
|
|
|
|
2022
|
2021
|
2021
|
|
|
|
|
|
|
Adjusted
Revenues1,8
|
|
|
$
11,392
|
$
11,067
|
$
11,214
|
Adjusted Income from
Operations, Pre-Tax2
|
|
|
$
1,279
|
$
1,042
|
$
472
|
Adjusted Margin,
Pre-Tax7
|
|
|
11.2%
|
9.4%
|
4.2%
|
- First quarter 2022 adjusted revenues1,8 grew 3% over
first quarter 2021, reflecting increased specialty contributions
and premium increases to cover underlying cost trends, partially
offset by the divestiture of the Medicaid business.
- First quarter 2022 adjusted income from operations,
pre-tax2 and adjusted margin, pre-tax7
increased relative to first quarter 2021 primarily due to increased
specialty contributions.
- The Cigna Healthcare MCR4 of 81.5% for first quarter
2022 compares to 80.9% for first quarter 2021, reflecting risk
adjustment updates related to prior years and higher medical costs
in the Individual business, partially offset by lower direct
COVID-19 costs.
- Cigna Healthcare net medical costs payable9 was
$4.29 billion at March 31, 2022,
$3.79 billion at March 31, 2021,
and $4.00 billion at
December 31, 2021. Favorable prior year reserve development on
a gross pre-tax basis was $276
million and $233 million
through first quarter 2022 and 2021, respectively.
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 Other Operations which is comprised of the international life,
accident, and supplemental benefits businesses held for sale
pending divestiture6, Corporate Owned Life Insurance
("COLI"), our interest in a joint venture in Turkey and the Company's run-off
operations.
Financial Results (dollars in
millions):
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
December 31,
|
|
|
|
2022
|
2021
|
2021
|
|
|
|
|
|
|
Adjusted (Loss) from
Operations, Pre-Tax2
|
|
|
$
(117)
|
$
(123)
|
$
(115)
|
- First quarter 2022 adjusted loss from operations,
pre-tax2 was favorable to first quarter 2021 primarily
reflecting lower interest expense.
2022 OUTLOOK
Cigna's outlook for full year 2022 adjusted
revenues1,3 is projected to be at least $177 billion. Cigna's outlook for full year 2022
consolidated adjusted income from operations2,3 is
projected to be at least $7.05
billion, or at least $22.60
per share3. Additionally, this outlook includes the
impact of expected future share repurchases, anticipated 2022
dividends, and assumes that the previously announced divestiture of
our international life, accident, and supplemental benefits
businesses6 will close in the second quarter of
2022.
(dollars in millions, except where noted and per
share amounts)
|
|
2022 Consolidated Metrics
|
Projection for Full Year Ending
December 31, 2022
|
Change from
Prior Projection
|
Adjusted
Revenues1,3
|
at least $177,000
|
|
Adjusted Income from
Operations2,3
|
at least $7,050
|
+$100
|
Adjusted Income from
Operations, per share2,3
|
at least $22.60
|
+$0.20
|
Adjusted SG&A
Expense Ratio3,4
|
6.9% to 7.3%
|
|
Adjusted Tax
Rate3,10
|
22.0% to 22.5%
|
|
Cash Flow from
Operations3
|
at least $8,250
|
|
Weighted Average Shares
Outstanding (millions)3
|
310 to 314
|
+2.0 at the midpoint
|
|
|
|
2022 Evernorth Metrics
|
|
|
Adjusted Income from
Operations, Pre-Tax2,3
|
~$6,100
|
|
|
|
|
2022 Cigna Healthcare Metrics
|
|
|
Adjusted Income from
Operations, Pre-Tax2,3
|
~$3,950
|
+$50
|
Medical Care
Ratio3,4
|
82.0% to 83.5%
|
|
Total Medical Customer
Growth (lives)3,5
|
at least 725,000
|
+150,000
|
The foregoing statements represent the Company's current
estimates of Cigna's 2022 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 2022
results and discuss full year 2022 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
(888)
455-5036 (Domestic)
(773)
799-3981 (International)
Passcode: 562022
Replay
(866)
357-1405 (Domestic)
(203)
369-0111 (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 services 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 over 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.
|
Adjusted revenues is used by Cigna's management
because it permits analysis of trends in underlying revenue. The
Company defines adjusted revenues as total revenues excluding the
following adjustments: special items and Cigna's share of certain
realized investment results of its joint ventures reported in the
Cigna Healthcare segment using the equity method of accounting.
Special items are matters that management believes are not
representative of the underlying results of operations due to their
nature or size. We exclude these items from this measure because
management believes they are not indicative of past or future
underlying performance of the business. Adjusted revenues is not
determined in accordance with GAAP and should not be viewed as a
substitute for the most directly comparable GAAP measure, total
revenues. See Exhibit 1 for a reconciliation of consolidated
adjusted revenues to total revenues.
|
|
|
2.
|
Adjusted income (loss) from operations is a principal
financial 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. Adjusted income from
operations is defined as shareholders' net income (or income before
income taxes less pre-tax income/loss attributable to
noncontrolling interests for the segment metric) excluding net
realized investment results, amortization of acquired intangible
assets and special items. Cigna's share of certain realized
investment results of its joint ventures reported in the Cigna
Healthcare segment using the equity method of accounting are also
excluded. Special items are matters that management believes are
not representative of the underlying results of operations due to
their nature or size. Adjusted income (loss) from operations is
measured on an after-tax basis for consolidated results and on a
pre-tax basis for segment results. Consolidated adjusted income
(loss) from operations is not determined in accordance with GAAP
and should not be viewed as a substitute for the most directly
comparable GAAP measure, shareholders' net income. 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 assumes that the previously
announced divestiture of the international life, accident, and
supplemental benefits businesses6 will close in the
second quarter of 2022 but excludes the potential effects of any
other business combinations that may occur after the date of this
earnings release. The Company's outlook includes the potential
effects of expected future share repurchases and anticipated 2022
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:
|
|
•
|
The Cigna Healthcare 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, individual on and
off-exchange products, and health care products within our
International Health business, within the Cigna Healthcare
segment.
|
|
•
|
Adjusted 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 the
Cigna Healthcare segment 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.
|
|
•
|
Prior year lives include the Medicaid customers which
was divested on January 1, 2022.
|
|
•
|
International Health medical customers excludes
medical customers served by less than 100% owned subsidiaries and
customers that are part of the businesses to be sold pursuant to
the previously announced divestiture of the international life,
accident, and supplemental benefits businesses6. Prior
year lives have been restated to conform to this
presentation.
|
|
•
|
Policies issued by the businesses subject to the
definitive agreement to sell certain of our international life,
accident, and supplemental benefits businesses6 and our
joint venture in Turkey have been excluded from customer
relationships.
|
|
|
6.
|
We entered into a definitive agreement in October
2021 to sell our life, accident, and supplemental benefits
businesses in several countries to Chubb INA Holdings, Inc.
("Chubb"). As of March 31, 2022 we now expect to sell our life,
accident, and supplemental benefits businesses in six countries
(Hong Kong, Indonesia, New Zealand, South Korea, Taiwan and
Thailand) to Chubb for $5.72 billion in cash (the "Chubb
Transaction"); we no longer expect to sell our interest in a joint
venture in Turkey as part of the Chubb Transaction. Subject to
applicable regulatory approvals and customary closing conditions,
we expect to complete this transaction in the second quarter of
2022.
|
|
|
|
In connection with the pending Chubb Transaction, we
revised our business reporting structure. As such we adjusted our
segment reporting effective in the fourth quarter of 2021 and
segment results for the three months ended March 31, 2021 have been
restated to conform to the new segment presentation. See Cigna's
Current Report on Form 8-K filed on January 24, 2022 for additional
information.
|
|
|
7.
|
Adjusted margin, pre-tax, is calculated by dividing
adjusted income (loss) from operations, pre-tax by adjusted
revenues for each segment.
|
|
|
8.
|
Cigna owns a 50% noncontrolling interest in its China
joint venture. As such, the adjusted revenues for the Cigna
Healthcare segment only include Cigna's 50% share of the joint
venture's earnings reported in Fees and Other Revenues using the
equity method of accounting under GAAP.
|
|
|
9.
|
Medical costs payable within the Cigna Healthcare
segment are presented net of reinsurance and other recoverables.
The gross medical costs payable balance was $4.49 billion as of
March 31, 2022, $4.26 billion as of December 31, 2021,
and $4.03 billion as of March 31,
2021.
|
|
|
10.
|
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
pre-tax income/loss attributable to noncontrolling interests, 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 Cigna
Healthcare segment using the equity method of accounting are also
excluded. Management is not able to provide a reconciliation to the
consolidated effective tax rate on a forward-looking basis because
we are unable to predict, without unreasonable effort, certain
components thereof include (i) future net realized investment
results and (ii) future special items.
|
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release, and oral statements made in connection with
this release, may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on 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 2022 on a consolidated, per share, and segment basis; projected
adjusted revenue outlook for 2022; projected total medical customer
growth over year end 2021; projected medical care and adjusted
SG&A expense ratios; projected consolidated adjusted tax rate;
projected cash flow from operations; future dividends; 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 and the impact of the developing inflationary
pressures; the ongoing Russia-Ukraine conflict; financing or capital
deployment plans and amounts available for future deployment; our
prospects for growth in the coming years; strategic transactions,
including the sale of our international life, accident and
supplemental benefits businesses; 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," "project," "plan," "intend," "anticipate," "estimate,"
"predict," "potential," "may," "should," "will" or other words or
expressions of similar meaning, although not all forward-looking
statements contain such terms.
Forward-looking statements are subject to risks and
uncertainties, both known and unknown, that could cause actual
results to differ materially from those expressed or implied in
forward-looking statements. Such risks and uncertainties include,
but are not limited to: our ability to achieve our strategic and
operational initiatives; our ability to adapt to changes in an
evolving and rapidly changing industry; 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, inflation and other pressures that
could compress our margins or result in premiums that are
insufficient to cover the cost of services delivered to our
customers; the potential for actual claims to exceed our estimates
related to expected medical claims; our ability to develop and
maintain satisfactory relationships with physicians, hospitals,
other health service providers and with producers and consultants;
our ability to maintain relationships with one or more key
pharmaceutical manufacturers or if payments made or discounts
provided decline; changes in the pharmacy provider marketplace or
pharmacy networks; changes in drug pricing or industry pricing
benchmarks; 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, including with respect to the sale
of our international life, accident and supplemental benefits
businesses, as well as integration or separation difficulties or
underperformance relative to expectations; dependence on success of
relationships with third parties; risk of significant disruption
within our operations or among key suppliers or third parties; 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 and investigations; compliance with
applicable privacy, security and data laws, regulations and
standards; potential failure of our prevention, detection and
control systems; unfavorable economic and market conditions, stock
market or interest rate declines and risks related to a downgrade
in financial strength ratings of our insurance subsidiaries; the
impact of our significant indebtedness and the potential for
further indebtedness in the future; 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-K,
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,
|
|
2022
|
2021
|
2021
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
Pharmacy revenues
|
$
30,697
|
$
28,025
|
$
32,328
|
Premiums
|
10,356
|
10,214
|
10,342
|
Fees and other revenues
|
2,538
|
2,341
|
2,638
|
Net
investment income
|
414
|
391
|
380
|
Total
Revenues
|
44,005
|
40,971
|
45,688
|
Net realized investment results
from certain equity method investments
|
103
|
14
|
(12)
|
Adjusted revenues
(1)
|
$
44,108
|
$
40,985
|
$
45,676
|
|
|
|
|
SHAREHOLDERS' NET INCOME
|
|
|
|
|
|
|
|
Shareholders' net income
|
$
1,183
|
$
1,161
|
$
1,116
|
After-tax adjustments
to reconcile adjusted income from operations
|
|
|
|
Net
realized investment (gains) losses (2)
|
355
|
13
|
(59)
|
Amortization of acquired intangible assets
|
356
|
388
|
326
|
Special
Items
|
|
|
|
Integration and
transaction-related costs
|
37
|
22
|
70
|
Debt extinguishment
costs
|
—
|
101
|
—
|
(Benefits) charges associated
with litigation matters
|
—
|
(21)
|
—
|
Charge for organizational
efficiency plan
|
—
|
—
|
119
|
Adjusted income from
operations
|
$
1,931
|
$
1,664
|
$
1,572
|
|
|
|
|
Pre-tax adjusted income (loss) from operations by
segment
|
|
|
|
Evernorth
|
$
1,302
|
$
1,223
|
$
1,634
|
Cigna Healthcare
|
1,279
|
1,042
|
472
|
Corporate and Other Operations
|
(117)
|
(123)
|
(115)
|
Consolidated pre-tax adjusted income from
operations
|
2,464
|
2,142
|
1,991
|
Adjusted income tax expense
|
(533)
|
(478)
|
(419)
|
Consolidated after-tax adjusted income from
operations
|
$
1,931
|
$
1,664
|
$
1,572
|
|
|
|
|
DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
Shareholders' net
income
|
$
3.68
|
$
3.30
|
$
3.39
|
After-tax adjustments
to reconcile to adjusted income from operations
|
|
|
|
Net
realized investment (gains) losses (2)
|
1.10
|
0.04
|
(0.18)
|
Amortization of acquired intangible assets
|
1.11
|
1.10
|
0.99
|
Special
items
|
|
|
|
Integration and
transaction-related costs
|
0.12
|
0.06
|
0.21
|
Debt extinguishment
costs
|
—
|
0.29
|
—
|
(Benefits) charges associated
with litigation matters
|
—
|
(0.06)
|
—
|
Charge for organizational
efficiency plan
|
—
|
—
|
0.36
|
Adjusted income from
operations (3)
|
$
6.01
|
$
4.73
|
$
4.77
|
Weighted average shares
(in thousands)
|
321,282
|
351,976
|
329,641
|
Common shares
outstanding (in thousands)
|
318,502
|
344,454
|
322,948
|
|
|
|
|
SHAREHOLDERS' EQUITY at March
31,
|
$
46,087
|
$
48,149
|
|
|
|
|
|
SHAREHOLDERS' EQUITY PER SHARE at March
31,
|
$
144.70
|
$
139.78
|
|
|
(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 Cigna
Healthcare segment using the equity method of accounting. These
items are excluded because they are not indicative of past or
future underlying performance of our businesses.
|
|
(2) Includes the
Company's share of certain realized investments results of its
joint ventures reported in the Cigna Healthcare segment using the
equity method of accounting.
|
|
(3) Adjusted income
(loss) from operations is defined as shareholders' net income (or
income before income taxes less pre-tax income/loss attributable to
noncontrolling interests for the segment metric) excluding the
following adjustments: net realized investment results,
amortization of acquired intangible assets and special items.
Cigna's share of certain realized investment results of its joint
ventures reported in the Cigna Healthcare segment using the equity
method of accounting are also excluded.
|
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