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Item 7.01
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Regulation FD Disclosure.
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2021 Outlook Affirmation and Investor Day Information
As previously disclosed,
on March 8, 2021, Cigna Corporation (“Cigna” or the “Company”) will host its virtual Investor Day beginning
at approximately 8:30 a.m. eastern time. During Investor Day, as well as in meetings with investors and analysts over
the next several weeks, Cigna officials expect to reaffirm projected full year 2021 consolidated adjusted revenues of at
least $165 billion, projected full year 2021 consolidated adjusted income from operations of at least $6.95 billion, projected
full year 2021 consolidated adjusted income from operations on a per share basis of at least $20.00 per share, and projected 2021
weighted average shares outstanding in the range of 346 million to 349 million. This outlook includes approximately $1.25 per share
in net unfavorable impacts of COVID-19, as well as the impact of future share repurchases and anticipated 2021 dividends. The outlook
also includes anticipated impacts from the agreement to acquire MDLive, Inc., as announced on February 26, 2021.
Cigna previously discussed its full year 2021 outlook in
its press release and investor presentation dated February 4, 2021 and during the related investor conference call. The press release,
presentation and the conference call transcript are available on the Investor Relations page of Cigna’s website located at
www.cigna.com. Forward-looking statements in these documents and the related call speak only as of the date they were made.
The virtual Investor
Day is expected to begin at approximately 8:30 a.m. eastern time and conclude by 11:30 a.m. eastern time. Investors
and analysts are invited to listen to the presentation free over the Internet via webcast by visiting the Investor Relations
page of Cigna’s website located at www.cigna.com. The Investor Relations section of
the Company’s website also contains materials relating to the Investor Day presentations, including definitions of certain
metrics not determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”)
and reconciliations of certain historic non-GAAP metrics to the most directly comparable GAAP measures.
Definitions and Financial Information
Adjusted revenues is defined as total revenues excluding
net realized investment results from equity method investments and special items. Cigna excludes these items because management
believes they are not indicative of past or future underlying performance of the business. Adjusted income (loss) from operations
is defined as shareholders’ net income (loss) excluding the following adjustments: net realized investment results, amortization
of acquired intangible assets and special items. 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. These consolidated measures are not determined in accordance
with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measure, total revenues and shareholders’
net income, respectively. Management is not able to provide a reconciliation to total revenues or shareholders’ net income
(loss) on a forward-looking basis because we are unable to predict certain components thereof including (i) future net realized
investment results 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 total revenues and shareholders’ net income could
vary materially.
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.
This information shall not be deemed “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated
by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act whether made before or after the date
of this report, except as shall be expressly set forth by specific reference in such a filing.
CAUTIONARY STATEMENT FOR PURPOSES
OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Current Report on Form 8-K (the “Report”),
and oral statements made with respect to information contained in this Report, 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 and per share basis, projected adjusted revenue outlook for 2021, and projected weighted average shares outstanding
included in Item 7.01 of this Report; as well as statements concerning future financial or operating performance, including our
ability to deliver affordable, predictable and simple 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, including
the pending acquisition of MDLive, Inc.; 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,
including with respect to the pending acquisition of MDLive, Inc., 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 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.