- Total revenues in the second quarter were $38.8 billion.
Adjusted revenues1 were $34.4 billion.
- Shareholders’ net income for the second quarter was $1.41
billion, or $3.70 per share
- Adjusted income from operations2 for the second quarter was
$1.64 billion, or $4.30 per share
- Adjusted income from operations2,3,4 is now projected to be in
the range of $6.34 billion to $6.46 billion in 2019, or $16.60 to
$16.90 per share3, which represents per share growth of 17% to 19%
over 2018
Global health service company Cigna Corporation (NYSE: CI) today
reported strong second quarter 2019 results led by the Health
Services and Integrated Medical segments.
“As Cigna accelerates our focus on whole person health, our
strong second quarter results reflect the value we deliver to
customers and clients, and our consistent execution in a dynamic
environment,” said David M. Cordani, President and Chief Executive
Officer. “We continue to invest in innovative, customer-centric
solutions to improve affordability and personalization for those we
serve.”
Total revenues for second quarter 2019 were $38.8 billion.
Adjusted revenues1 were $34.4 billion and reflect strong
contributions from each of Cigna's ongoing businesses.
Shareholders’ net income for second quarter 2019 was $1.41
billion, or $3.70 per share, compared with $0.81 billion, or $3.29
per share, for second quarter 2018.
Cigna's adjusted income from operations2 for second quarter 2019
was $1.64 billion, or $4.30 per share, compared with $0.96 billion,
or $3.89 per share, for second 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
Six Months Ended
June 30,
March 31,
June 30,
2019
2018
2019
2019
Total Revenues
$
38,819
$
11,480
$
37,946
$
76,765
Net Realized Investment Losses (Gains)
from Equity Method Investments1
6
20
(28)
(22)
Special Items and Transitioning Client
Contributions1
(4,450)
(4,489)
(8,939)
Adjusted Revenues1
$
34,375
$
11,500
$
33,429
$
67,804
Consolidated Earnings, net of
taxes
Shareholders’ Net Income
$
1,408
$
806
$
1,368
$
2,776
Net Realized Investment (Gains)
Losses2
(13)
22
(38)
(51)
Amortization of Other Acquired Intangible
Assets2
572
18
564
1,136
Special Items and Transitioning Client
Contributions1,2
(327)
109
(396)
(723)
Adjusted Income from Operations2
$
1,640
$
955
$
1,498
$
3,138
Shareholders’ Net Income, per share
$
3.70
$
3.29
$
3.56
$
7.26
Adjusted Income from Operations2, per
share
$
4.30
$
3.89
$
3.90
$
8.20
- Cigna’s second quarter results reflect strong revenue and
earnings growth, as we deepened customer relationships, delivered
strong medical and pharmacy cost performance, and continued
innovation across our businesses. Second quarter 2019 adjusted
income from operations2 also included a $45 million benefit from
the favorable resolution of a tax matter.
- Year to date through July 31, 2019, the Company repurchased 6.2
million shares of common stock for approximately $1.1 billion.
- The debt to capitalization ratio decreased to 47.2% at June 30,
2019, from 50.9% at December 31, 2018.
- The SG&A expense ratio5 was 9.0% for second quarter 2019, a
significant decrease from 23.5% for second 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
June 30,
March 31,
December 31,
2019
2018
2019
2018
Commercial
14,026
13,850
14,016
13,982
Government
1,382
1,390
1,405
1,407
International Markets
1,589
1,550
1,572
1,572
Total Medical Customers6
16,997
16,790
16,993
16,961
Pharmacy6
75,171
8,794
74,935
73,230
Behavioral Care
28,577
27,069
28,046
27,215
Dental
17,077
16,506
17,122
16,544
Medicare Part D
3,266
771
3,302
3,295
International Markets Supplemental
Policies6,7
12,500
12,197
12,576
12,569
Group Disability and Life Covered
Lives6
15,400
15,300
15,200
14,800
Total Customer Relationships
168,988
97,427
168,174
164,614
- The total medical customer base6 at second quarter 2019 was 17
million, an organic increase of 36,000 customers year to date and
207,000 over second 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 second quarter 2019 was 75
million, an organic increase of 1.9 million customers year to date,
driven by strong new commercial sales.
- Pharmacy6 and Medicare Part D customers in the first and second
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
Six Months Ended
June 30,
March 31,
June 30,
2019
2018
2019
2019
Adjusted Revenues1
$
23,537
$
1,113
$
22,460
$
45,997
Adjusted Income from Operations,
Pre-Tax2
$
1,162
$
77
$
994
$
2,156
Adjusted Margin, Pre-Tax8
4.9%
6.9%
4.4%
4.7%
- 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 the first half of 2019, and are not reflected in second
quarter 2018 results.
- Growth in second quarter 2019 adjusted revenues1 and adjusted
income from operations, pre-tax2 over second quarter 2018 were
driven by the combination with Express Scripts.
- Second quarter 2019 adjusted income from operations, pre-tax2
and adjusted margin, pre-tax8 reflect organic growth in adjusted
pharmacy script volumes as well as strong performance in specialty
pharmacy care.
- Health Services fulfilled 294 million adjusted pharmacy
scripts9 in second quarter 2019, and 292 million adjusted pharmacy
scripts9 in first 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
Six Months Ended
June 30,
March 31,
June 30,
2019
2018
2019
2019
Adjusted Revenues1
$
8,968
$
8,170
$
9,195
$
18,163
Adjusted Income from Operations,
Pre-Tax2
$
990
$
915
$
1,170
$
2,160
Adjusted Margin, Pre-Tax8
11.0%
11.2%
12.7%
11.9%
- Second quarter 2019 adjusted revenues1 increased 10% relative
to second quarter 2018, driven by Commercial customer growth and
deepening of relationships, as well as premium increases consistent
with underlying cost trends.
- Second quarter 2019 adjusted income from operations, pre-tax2
and adjusted margin, pre-tax8 reflect strong medical and specialty
contributions and continued effective medical cost management.
- Adjusted income from operations, pre-tax2 for second quarter
2019, first quarter 2019, and second quarter 2018 included
favorable net prior year reserve development on a pre-tax basis of
$28 million, $50 million and $20 million, respectively.
- The medical care ratio5 (“MCR”) of 81.6% for second quarter
2019 reflects continued effective execution in our commercial and
government businesses. The second quarter 2019 MCR increased
relative to second quarter 2018, as expected, driven by the
inclusion of the Express Scripts Medicare Part D business, the
pricing effect of the health insurance tax suspension, and a higher
MCR in our individual medical business.
- Integrated Medical net medical costs payable10 was
approximately $2.64 billion at June 30, 2019, $2.51 billion at June
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
employees of multinational organizations.
Financial Results (dollars in millions,
policies and customers in thousands):
Three Months Ended
Six Months Ended
June 30,
March 31,
June 30,
2019
2018
2019
2019
Adjusted Revenues1,7
$
1,389
$
1,344
$
1,394
$
2,783
Adjusted Income from Operations,
Pre-Tax2
$
207
$
203
$
206
$
413
Adjusted Margin, Pre-Tax8
14.9%
15.1%
14.8%
14.8%
As of the Periods
Ended
June 30,
March 31,
December 31,
2019
2018
2019
2018
International Markets Supplemental
Policies6,7
12,500
12,197
12,576
12,569
International Markets Medical
Customers6
1,589
1,550
1,572
1,572
- Excluding the impact of foreign currency movements, second
quarter 2019 adjusted revenues1,7 grew 8% over second quarter 2018
reflecting continued business growth.
- Second quarter 2019 adjusted income from operations, pre-tax2
and adjusted margin, pre-tax8 reflect continued business growth and
a favorable loss ratio, 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
Six Months Ended
June 30,
March 31,
June 30,
2019
2018
2019
2019
Adjusted Revenues1
$
1,309
$
1,282
$
1,296
$
2,605
Adjusted Income from Operations,
Pre-Tax2
$
149
$
161
$
84
$
233
Adjusted Margin, Pre-Tax8
11.4%
12.6%
6.5%
8.9%
- Second quarter 2019 adjusted income from operations, pre-tax2
and adjusted margin, pre-tax8 reflect solid disability and life
performance as well as the impact of the run-off businesses.
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
Six Months Ended
June 30,
March 31,
June 30,
2019
2018
2019
2019
Adjusted (Loss) from Operations,
Pre-Tax2
$
(453)
$
(80)
$
(490)
$
(943)
- Second quarter 2019 adjusted loss from operations, pre-tax2
increased relative to second 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 $6.34 billion to $6.46
billion, or $16.60 to $16.90 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
$
6,340 to 6,460
$
+ 60 to 100
Adjusted Income from Operations, per
share2,3,4
$
16.60 to 16.90
$
+ 0.25 to 0.35
Adjusted Revenues1,3
$
136,000 to 137,000
$
+ 2,500 to 3,500
SG&A Expense Ratio5
less than 10%
improved > 25 bps at the
midpoint
Adjusted Tax Rate11
23% to 24%
- 50 bps
2019
Segment-Level Operating Metrics
Adjusted Income from Operations,
Pre-Tax2,3,4
Health Services
$
5,050 to 5,200
Integrated Medical
$
3,780 to 3,850
$
+ 50 to 80
Adjusted Pharmacy Scripts – Health
Services9
1.21 to 1.23 billion
+ 40 million
Medical Customer Growth6
~ 200,000 customers
- 150,000 customers at the
midpoint
Medical Care Ratio5
80.5% to 81.5%
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 now in the range of 97% to
98%, an increase of 50 bps from the midpoint of our previous
expectations. Health Services’ adjusted pharmacy scripts 9 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 second
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: 8012019
Replay (800) 272-5965 (Domestic)
(402) 220-9721 (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
$2.88 billion as of June 30, 2019, $2.70 billion as of December 31,
2018, and $2.75 billion as of June 30, 2018. The Integrated Medical
days claims payable was 40.1 days at June 30, 2019, 40.7 days at
December 31, 2018 and 43.4 days at June 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 with respect to
information contained in 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 Six Months
Ended Three Months Ended June 30, June 30,
March 31,
2019
2018
2019
2018
2019
REVENUES Pharmacy revenues
$
26,288
$
758
$
51,467
$
1,475
$
25,179
Premiums
9,803
9,012
19,774
18,011
9,971
Fees and other revenues
2,388
1,358
4,838
2,726
2,450
Net investment income including special items
340
352
686
681
346
Total revenues
38,819
11,480
76,765
22,893
37,946
Revenue contributions from transitioning clients
(4,450)
-
(8,939)
-
(4,489)
Net realized investment (gains) losses
from equity method subsidiaries
6
20
(22)
22
(28)
Adjusted revenues (1)
$
34,375
$
11,500
$
67,804
$
22,915
$
33,429
SHAREHOLDERS' NET INCOME Shareholders' net
income
$
1,408
$
806
$
2,776
$
1,721
$
1,368
After-tax adjustments to reconcile to adjusted income from
operations: Adjustment for transitioning clients
(506)
-
(1,010)
-
(504)
Net realized investment (gains) losses
(13)
22
(51)
47
(38)
Amortization of acquired intangible assets
572
18
1,136
38
564
Special items Integration and transaction-related costs
115
109
223
159
108
Charges associated with litigation matters
64
-
64
-
-
Adjusted income from operations (2)
$
1,640
$
955
$
3,138
$
1,965
$
1,498
Pre-tax adjusted income (loss) from
operations by segment Health Services
$
1,162
$
77
$
2,156
$
160
$
994
Integrated Medical
990
915
2,160
1,927
1,170
International Markets
207
203
413
420
206
Group Disability and Other
149
161
233
277
84
Corporate
(453)
(80)
(943)
(172)
(490)
Consolidated pre-tax adjusted income from operations (2)
2,055
1,276
4,019
2,612
1,964
Income tax expense
(415)
(321)
(881)
(647)
(466)
Consolidated after-tax adjusted income from operations (2)
$
1,640
$
955
$
3,138
$
1,965
$
1,498
DILUTED EARNINGS PER SHARE Shareholders' net
income
$
3.70
$
3.29
$
7.26
$
7.01
$
3.56
After-tax adjustments to reconcile to adjusted income from
operations: Adjustment for transitioning clients
(1.33)
-
(2.64)
-
(1.31)
Net realized investment (gains) losses
(0.03)
0.09
(0.13)
0.19
(0.10)
Amortization of other acquired intangible assets
1.49
0.07
2.96
0.15
1.47
Special items Integration and transaction-related costs
0.30
0.44
0.58
0.65
0.28
Charges associated with litigation matters
0.17
-
0.17
-
-
Adjusted income from operations (2)
$
4.30
$
3.89
$
8.20
$
8.00
$
3.90
Weighted average shares (in thousands)
380,969
245,339
382,496
245,564
384,024
Common shares outstanding (in thousands)
377,883
243,340
380,270
SHAREHOLDERS' EQUITY at June 30,
$
43,815
$
14,743
SHAREHOLDERS' EQUITY PER SHARE at June 30,
$
115.95
$
60.59
(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/20190801005203/en/
INVESTOR RELATIONS CONTACT: Will McDowell 215-761-4198
william.mcdowell2@cigna.com
MEDIA CONTACT: Ellie Polack 860-902-4906
elinor.polack@cigna.com
Cigna (NYSE:CI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Cigna (NYSE:CI)
Historical Stock Chart
From Apr 2023 to Apr 2024