- Total revenues for 2022 were $180.5
billion
- Shareholders' net income for 2022 was $6.7 billion, or $21.30 per share
- Adjusted income from operations1 for 2022 was
$7.3 billion, or $23.27 per share
- Adjusted income from operations1,2 is projected
to be at least $7.33 billion in 2023,
or at least $24.60 per
share2
- Board of Directors declared a 10% increase in the quarterly
dividend rate, to $1.23 per
share
BLOOMFIELD, Conn., Feb. 3, 2023
/PRNewswire/ -- Global health services company Cigna
Corporation (NYSE: CI) today reported strong 2022 results
reflecting growth in both Evernorth and Cigna Healthcare.
"We are carrying great momentum into 2023," said David M. Cordani, chairman and chief executive
officer. "Last year was a pivotal year of performance and growth
for our company as individuals and employers around the world
counted on Cigna Healthcare in a dynamic time, and Evernorth
further expanded its health services reach and impact. We are well
positioned to continue innovating and growing as we work to improve
the health and vitality of all those we serve."
Shareholders' net income for 2022 was $6.7 billion, or $21.30 per share, including an after-tax gain of
$1.3 billion, or $4.26 per share, primarily from the Chubb
transaction3, and compares with $5.4 billion, or $15.73 per share, for 2021.
Cigna's adjusted income from operations1 for 2022 was
$7.3 billion, or $23.27 per share, compared with $7.0 billion, or $20.47 per share, for 2021, reflecting growth in
Evernorth and Cigna Healthcare more than outweighing the absence of
income from divested businesses3,4. The proceeds from
the Chubb transaction3 were primarily used for share
repurchase in 2022.
Reconciliations of total revenues to adjusted
revenues5 and of shareholders' net income to adjusted
income from operations1 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
revenues5 and shareholders' net income to adjusted
income from operations1:
Consolidated
Financial Results (dollars in millions):
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
December
31,
|
December
31,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Total
Revenues
|
$
45,751
|
$
45,688
|
$
180,516
|
$
174,078
|
Net Realized Investment
Losses (Gains) from
Equity Method Investments5
|
(8)
|
(12)
|
126
|
—
|
Adjusted
Revenues5
|
$
45,743
|
$
45,676
|
$
180,642
|
$
174,078
|
|
|
|
|
|
Consolidated
Earnings, net of taxes
|
|
|
|
|
Shareholders' Net
Income
|
$
1,169
|
$
1,116
|
$
6,668
|
$
5,365
|
Net Realized Investment
Losses (Gains)1
|
(12)
|
(59)
|
503
|
(158)
|
Amortization of
Acquired Intangible Assets1
|
284
|
326
|
1,345
|
1,494
|
Special
Items1
|
73
|
189
|
(1,232)
|
279
|
Adjusted Income from
Operations1
|
$
1,514
|
$
1,572
|
$
7,284
|
$
6,980
|
|
|
|
|
|
Shareholders' Net
Income, per share
|
$
3.83
|
$
3.39
|
$
21.30
|
$
15.73
|
Adjusted Income from
Operations1, per share
|
$
4.96
|
$
4.77
|
$
23.27
|
$
20.47
|
- The full year 2022 Shareholders' Net Income increased 24% from
full year 2021, reflecting the gain on the Chubb
transaction3 as well as continued growth from Evernorth
and Cigna Healthcare. Adjusted income from operations1
for full year 2022 increased 4% from full year 2021 with
contributions from both Evernorth and Cigna Healthcare. Excluding
the divested businesses3,4,6, adjusted income from
operations1 increased 9% for full year 2022 compared to
full year 2021.
- The SG&A expense ratio7 on a GAAP basis was 7.3%
for full year 2022 compared to 7.5% for full year 2021. The
adjusted SG&A expense ratio7 was 7.2% for full year
2022 compared to 7.3% for full year 2021 as revenue growth and
continued expense efficiencies were partially offset by strategic
investments.
- The effective tax rate on a GAAP basis for full year 2022 was
19.2% compared to 20.2% full year 2021. The adjusted effective tax
rate8 for full year 2022 was 21.1% compared to 22.2% for
full year 2021.
- The debt-to-capitalization ratio decreased to 40.9% at
December 31, 2022 compared to 41.7%
at December 31, 2021.
- In 2022, the Company repurchased 27.4 million shares of common
stock for $7.6 billion. Year to date
through February 2, 2023, the Company
repurchased 1.6 million shares of common stock for approximately
$510 million.
- On February 2, 2023, the
Company's Board of Directors declared a cash dividend of
$1.23 per share of Cigna common stock
to be paid on March 23, 2023 to
shareholders of record as of the close of trading on March 8, 2023. This reflects a 10% increase from
the 2022 cash dividend of $1.12 per
share.
CUSTOMER RELATIONSHIPS
The following table summarizes Cigna's medical customers and
overall customer relationships:
Customer
Relationships (in thousands):
|
|
As of the Periods
Ended
|
|
December
31,
|
|
2022
|
2021
|
|
|
|
Total Customer
Relationships9
|
189,683
|
185,672
|
|
|
|
Total Pharmacy
Customers
|
105,567
|
107,298
|
|
|
|
U.S.
Commercial
|
14,852
|
13,854
|
U.S.
Government
|
1,354
|
1,510
|
International
Health
|
1,798
|
1,717
|
Total Medical
Customers9
|
18,004
|
17,081
|
|
|
|
Behavioral
Care
|
44,841
|
40,380
|
Dental
|
18,397
|
17,731
|
Medicare Part
D
|
2,874
|
3,182
|
- Total customer relationships9 at the end of 2022
grew by 2% to 189.7 million.
- Total pharmacy customer base in 2022 decreased by 2% to 105.6
million due to client attrition in early 2022.
- The total medical customer base9 at the end of 2022
grew 5% to 18.0 million, an increase of 923,000 customers from
December 31, 2021, primarily driven
by growth in U.S. Commercial, partially offset by a decrease in
U.S. Government inclusive of the divestiture of the
Medicaid4 business.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 1 for a reconciliation of adjusted income (loss)
from operations1 to shareholders' net income.
Evernorth
This segment includes a broad range of coordinated and point
solution health services and capabilities, and partners with the
health care system to provide Pharmacy Benefits, Home Delivery
Pharmacy, Specialty Pharmacy, Distribution and Care Delivery and
Management Solutions to health plans, employers, government
organizations and health care providers.
Financial Results
(dollars in millions):
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
December
31,
|
December
31,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Adjusted
Revenues5
|
$
36,188
|
$
35,086
|
$
140,335
|
$
131,912
|
Adjusted Income from
Operations, Pre-Tax1
|
$
1,725
|
$
1,634
|
$
6,127
|
$
5,818
|
Adjusted Margin,
Pre-Tax10
|
4.8 %
|
4.7 %
|
4.4 %
|
4.4 %
|
- Fourth quarter 2022 adjusted revenues5 increased 3%
relative to fourth quarter 2021 reflecting strong organic growth in
specialty pharmacy services.
- Fourth quarter 2022 adjusted income from operations,
pre-tax1, increased 6% relative to fourth quarter 2021
reflecting business growth including affordability improvements
partially offset by strategic investments in expanding our services
portfolio and digital capabilities.
Cigna Healthcare
This segment includes U.S. Commercial, U.S. Government and
International Health businesses which provide comprehensive medical
benefits and coordinated solutions to clients and customers. U.S.
Commercial products and services include medical, pharmacy,
behavioral health, dental, and other products and services for
insured and self-insured clients. U.S. Government solutions include
Medicare Advantage, Medicare Supplement and Medicare Part D plans
for seniors, and individual health insurance plans. 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
|
Year
Ended
|
|
December
31,
|
December
31,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Adjusted
Revenues5,11
|
$
11,131
|
$
11,214
|
$
45,036
|
$
44,652
|
Adjusted Income from
Operations, Pre-Tax1
|
$
500
|
$
472
|
$
4,072
|
$
3,609
|
Adjusted Margin,
Pre-Tax10
|
4.5 %
|
4.2 %
|
9.0 %
|
8.1 %
|
- Fourth quarter 2022 adjusted revenues5,11 decreased
1% compared with fourth quarter 2021. Excluding the divested
Medicaid business4,6, fourth quarter 2022 adjusted
revenues5,11 grew 1%. This growth reflects increased
specialty contributions, premium increases to cover underlying cost
trends and U.S. Commercial and International Health customer
growth, partially offset by lower U.S. Government medical customers
and lower net investment income.
- Fourth quarter 2022 adjusted income from operations,
pre-tax1 increased 6% relative to fourth quarter 2021,
due to a lower MCR7, inclusive of effective execution of
pricing and affordability initiatives, partially offset by lower
net investment income.
- The Cigna Healthcare MCR7 of 84.0% for fourth
quarter 2022 compares to 87.0% for fourth quarter 2021, reflecting
lower direct COVID-19 costs and improved stop-loss results. The
fourth quarter 2022 MCR7 also benefited from effective
execution in pricing and affordability initiatives.
- The Cigna Healthcare MCR7 of 81.7% for full year
2022 compares to 84.0% for full year 2021, reflecting lower direct
COVID-19 costs. The full year 2022 MCR7 also benefited
from effective execution in pricing and affordability initiatives
in our U.S. Commercial business partially offset by U.S. Government
risk adjustment updates related to prior years.
- Cigna Healthcare net medical costs payable12 was
$3.96 billion at December 31, 2022, $4.05
billion at September 30, 2022,
and $4.00 billion at December 31, 2021. Favorable prior year reserve
development on a gross pre-tax basis was $259 million and $219
million for the full year 2022 and 2021, respectively.
Corporate and Other Operations
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 Corporate Owned Life
Insurance ("COLI") and the Company's run-off operations.
Financial Results
(dollars in millions):
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
December
31,
|
December
31,
|
|
2022
|
2021
|
2022
|
2021
|
|
|
|
|
|
Adjusted (Loss) from
Operations, Pre-Tax1
|
$
(382)
|
$
(115)
|
$
(966)
|
$
(450)
|
- Fourth quarter adjusted loss from operations,
pre-tax1 of $382 million
was greater than fourth quarter 2021 primarily due to the absence
of income from the businesses divested in the Chubb
transaction3.
2023 OUTLOOK2,13
Cigna's outlook2,13 for full year 2023 adjusted
revenues2,5 is projected to be at least $187.0 billion. Cigna's outlook2,13
for full year 2023 consolidated adjusted income from
operations1,2 is projected to be at least $7.33 billion, or at least $24.60 per share2. Additionally, this
outlook includes the impact of expected future share repurchases
and anticipated 2023 dividends.
(dollars in
millions, except where noted and per share amounts)
|
2023 Consolidated
Metrics
|
Projection for Full
Year Ending
December 31,
2023
|
Adjusted
Revenues2,5
|
at least
$187,000
|
Adjusted Income from
Operations1,2
|
at least
$7,330
|
Adjusted Income from
Operations, per share1,2
|
at least
$24.60
|
Adjusted SG&A
Expense Ratio2,7
|
~7.3%
|
Adjusted Effective Tax
Rate2,8
|
21.0% to
21.5%
|
Cash Flow from
Operations2
|
at least
$9,000
|
Capital
Expenditures2
|
~$1,400
|
Shareholder
Dividends2
|
~$1,450
|
Weighted Average Shares
Outstanding (millions)2
|
296 to
300
|
|
|
2023 Evernorth
Metrics
|
|
Adjusted Income from
Operations, Pre-Tax1,2
|
at least
$6,400
|
|
|
2023 Cigna
Healthcare Metrics
|
|
Adjusted Income from
Operations, Pre-Tax1,2
|
at least
$4,400
|
Medical Care
Ratio2,7
|
81.5% to
82.5%
|
Total Medical Customer
Growth (lives)2,9
|
at least
1,200,000
|
The foregoing statements represent the Company's current
estimates of Cigna's 2023 consolidated and segment adjusted income
from operations1,2 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 full year 2022 results
and discuss full year 2023 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: 2032023
Replay
(800) 839-2290 (Domestic)
(203) 369-3607 (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's global footprint spans approximately 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.
|
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.
|
|
|
2.
|
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 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 2023
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.
|
|
|
3.
|
On July 1, 2022, the
Company completed the sale of its life, accident and supplemental
benefits businesses in six countries (Hong Kong, Indonesia, New
Zealand, South Korea, Taiwan and Thailand) to Chubb INA Holdings,
Inc. ("Chubb") for approximately $5.4 billion in cash (the "Chubb
transaction"). In December 2022, the Company divested its ownership
interest in a joint venture in Türkiye.
|
|
|
4.
|
On January 1, 2022,
the Company completed the sale of its Texas Medicaid contracts to
Molina Healthcare, Inc.
|
|
|
5.
|
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.
|
|
|
6.
|
The divested
international3 and Medicaid4 businesses had
adjusted income from operations1, after-tax, of $1
million and $149 million in fourth quarter 2022 and fourth quarter
2021, respectively. Consolidated adjusted income from
operations1 in fourth quarter 2022 and fourth quarter
2021 excluding the adjusted income from operations1 of
the divested international3 and
Medicaid4 businesses was $1,513 million and $1,423
million, respectively. The divested international3 and
Medicaid4 businesses had adjusted income from
operations1, after tax, of $375 million and $622 million
in full year 2022 and full year 2021, respectively. Consolidated
adjusted income from operations1 in full year 2022 and
full year 2021 excluding the adjusted income from
operations1 of the divested international3
and Medicaid4 businesses was $6,909 million and $6,358
million, respectively.
|
|
|
Consolidated
Financial Results (dollars in millions):
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
December
31,
|
December
31,
|
|
2022
|
2021
|
2022
|
2021
|
Consolidated
Earnings, net of taxes
|
|
|
|
|
Shareholder's Net
Income
|
$
1,169
|
$
1,116
|
$
6,668
|
$
5,365
|
Net Realized Investment
(Gains) Losses1
|
(12)
|
(59)
|
503
|
(158)
|
Amortization of
Acquired Intangible Assets1
|
284
|
326
|
1,345
|
1,494
|
Special
Items1
|
73
|
189
|
(1,232)
|
279
|
Adjusted Income from
Operations1
|
$
1,514
|
$
1,572
|
$
7,284
|
$
6,980
|
Less: Adjusted
Income1 from Divested
International3 and Medicaid4
Businesses
|
1
|
149
|
375
|
622
|
Adjusted Income from
Operations1 excluding Divested
International3 and
Medicaid4 Businesses
|
$
1,513
|
$
1,423
|
$
6,909
|
$
6,358
|
|
|
|
The divested
Medicaid4 business had adjusted
revenues5 of $(2) million in fourth quarter 2022 and
$225 million in fourth quarter 2021. Cigna Healthcare adjusted
revenues5,11 in fourth quarter 2022 and fourth quarter
2021 excluding the adjusted revenues5 from the divested
Medicaid business4 were $11,133 million and $10,989
million, respectively. The divested Medicaid4 business
had adjusted revenues5 of $85 million in full year 2022
and $976 million in full year 2021. Cigna Healthcare adjusted
revenues5,11 in full year 2022 and full year 2021
excluding the adjusted revenues5 from the divested
Medicaid business4 were $44,951 million and $43,676
million, respectively.
|
|
|
|
|
|
Financial Results
(dollars in millions):
|
|
|
|
|
|
Three Months
Ended
|
Year
Ended
|
|
December
31,
|
December
31,
|
|
2022
|
2021
|
2022
|
2021
|
Cigna Healthcare
Adjusted Revenues5,11
|
$
11,131
|
$
11,214
|
$
45,036
|
$
44,652
|
Less: Adjusted
Revenues5 from Divested
Medicaid Business4
|
(2)
|
225
|
85
|
976
|
Cigna Healthcare
Adjusted Revenues5,11
excluding Divested Medicaid Business4
|
$
11,133
|
$
10,989
|
$
44,951
|
$
43,676
|
|
|
7.
|
Operating ratios are defined as
follows:
|
|
•
|
The Cigna Healthcare medical care ratio ("MCR")
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.
|
|
•
|
SG&A expense ratio on a GAAP basis for the full
year 2022 represents enterprise selling, general and administrative
expenses of $13,186 million as a percentage of total revenue of
$180.5 billion at a consolidated level. SG&A expense ratio on a
GAAP basis for the full year 2021 represents enterprise selling,
general and administrative expenses of $13,030 million as a
percentage of total revenue of $174.1 billion at a consolidated
level.
|
|
•
|
Adjusted SG&A expense ratio for the full year
2022 represents enterprise selling, general and administrative
expenses of $13,057 million excluding special items of $129 million
as a percentage of adjusted revenue at a consolidated level.
Adjusted SG&A expense ratio for the full year 2021 represents
enterprise selling, general and administrative expenses of $12,720
million excluding special items of $310 million as a percentage of
adjusted revenue at a consolidated level.
|
|
|
|
8.
|
|
The measure "adjusted effective 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 effective 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.
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|
|
|
9.
|
|
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
were divested on January 1, 2022.
|
|
•
|
International Health medical customers excludes
medical customers served by less than 100% owned
subsidiaries.
|
|
•
|
Policies issued by the sold international life,
accident, and supplemental benefits businesses3 and the
joint venture in Türkiye3 have been excluded from
customer relationships.
|
|
|
|
10.
|
|
Adjusted margin, pre-tax, is calculated by dividing
adjusted income (loss) from operations, pre-tax by adjusted
revenues for each segment.
|
|
|
|
11.
|
|
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.
|
|
|
|
12.
|
|
Medical costs payable within the Cigna Healthcare
segment are presented net of reinsurance and other recoverables.
The gross medical costs payable balance was $4.18 billion as of
December 31, 2022, $4.25 billion as of September 30,
2022, and $4.26 billion as of December 31,
2021.
|
|
|
|
13.
|
|
Cigna's outlook for full year 2023 includes the
expected impacts of the FASB's new accounting for Long-Duration
Insurance Contracts ("LDTI") that is required to be adopted on
January 1, 2023. The adoption of LDTI is not expected to result in
a material restatement of Cigna's results in prior
periods.
|
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 2023 on a consolidated, per share, and segment basis; projected
adjusted revenue outlook for 2023; projected total medical customer
growth over year end 2022; projected medical care and adjusted
SG&A expense ratios; projected consolidated adjusted effective
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,
predictable and simple solutions for our customers and clients;
future growth, business strategy and 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 and interest
rate pressures; capital deployment plans and amounts available for
future deployment; our prospects for growth in the coming years;
the impact of revised accounting rules related to accounting for
long-duration contracts; 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; 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, including currency exchange
rates; the scale, scope and duration of the COVID-19 pandemic and
its potential impact on our business, operating results, cash flows
or financial condition; risks related to strategic transactions and
realization of the expected benefits of such transactions, 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 including the risk of a
recession or other economic downturn and resulting impact on
employment metrics, stock market or changes in interest rates 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-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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Years
Ended
|
|
|
December
31,
|
|
|
December
31,
|
(Dollars in
millions, except per share amounts)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pharmacy
revenues
|
|
$
33,135
|
|
|
$
32,328
|
|
|
$
128,566
|
|
|
$
121,413
|
Premiums
|
|
9,547
|
|
|
10,342
|
|
|
39,915
|
|
|
41,154
|
Fees and other
revenues
|
|
2,857
|
|
|
2,638
|
|
|
10,880
|
|
|
9,962
|
Net investment
income
|
|
212
|
|
|
380
|
|
|
1,155
|
|
|
1,549
|
Total
Revenues
|
|
45,751
|
|
|
45,688
|
|
|
180,516
|
|
|
174,078
|
Net realized
investment results from certain equity method
investments
|
|
(8)
|
|
|
(12)
|
|
|
126
|
|
|
—
|
Adjusted revenues
(1)
|
|
$
45,743
|
|
|
$
45,676
|
|
|
$
180,642
|
|
|
$
174,078
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net
income
|
|
$
1,169
|
|
|
$
1,116
|
|
|
$
6,668
|
|
|
$
5,365
|
Pre-tax adjusted income
(loss) from operations by segment
|
|
|
|
|
|
|
|
|
|
|
|
Evernorth
|
|
$ 1,725
|
|
|
$ 1,634
|
|
|
$ 6,127
|
|
|
$ 5,818
|
Cigna
Healthcare
|
|
500
|
|
|
472
|
|
|
4,072
|
|
|
3,609
|
Corporate and Other
Operations
|
|
(382)
|
|
|
(115)
|
|
|
(966)
|
|
|
(450)
|
Consolidated pre-tax
adjusted income from operations
|
|
1,843
|
|
|
1,991
|
|
|
9,233
|
|
|
8,977
|
Adjusted income tax expense
|
|
(329)
|
|
|
(419)
|
|
|
(1,949)
|
|
|
(1,997)
|
Consolidated after-tax
adjusted income from operations
|
|
$ 1,514
|
|
|
$ 1,572
|
|
|
$ 7,284
|
|
|
$ 6,980
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
(in thousands)
|
|
305,413
|
|
|
329,641
|
|
|
313,065
|
|
|
340,966
|
Common shares
outstanding (in thousands)
|
|
|
|
|
|
|
|
298,676
|
|
|
322,948
|
SHAREHOLDERS' EQUITY
at December 31,
|
|
|
|
|
|
|
|
$
44,872
|
|
|
$
47,112
|
SHAREHOLDERS' EQUITY
PER SHARE at December 31,
|
|
|
|
|
|
|
|
$
150.24
|
|
|
$
145.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
December
31,
|
|
December
31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
(Dollars in
millions, except per share amounts)
|
Pre-tax
|
After-tax
|
|
Pre-tax
|
After-tax
|
|
Pre-tax
|
After-tax
|
|
Pre-tax
|
After-tax
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' NET
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net
income
|
|
$
1,169
|
|
|
$
1,116
|
|
|
$
6,668
|
|
|
$
5,365
|
Adjustments to
reconcile adjusted income from operations
|
|
|
|
|
|
|
|
|
|
|
|
Net realized
investment (gains) losses (2)
|
(8)
|
(12)
|
|
(80)
|
(59)
|
|
621
|
503
|
|
(196)
|
(158)
|
Amortization of
acquired intangible assets
|
457
|
284
|
|
499
|
326
|
|
1,876
|
1,345
|
|
1,998
|
1,494
|
Special
Items
|
|
|
|
|
|
|
|
|
|
|
|
Integration and
transaction-related costs
|
23
|
17
|
|
111
|
70
|
|
135
|
103
|
|
169
|
71
|
Charge for
organizational efficiency plan
|
—
|
—
|
|
168
|
119
|
|
22
|
17
|
|
168
|
119
|
(Benefits) associated
with litigation matters
|
—
|
—
|
|
—
|
—
|
|
(28)
|
(20)
|
|
(27)
|
(21)
|
Loss (gain) on sale of
businesses
|
73
|
56
|
|
—
|
—
|
|
(1,662)
|
(1,332)
|
|
—
|
—
|
Debt extinguishment
costs
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
141
|
110
|
Adjusted income from
operations (3)
|
|
$ 1,514
|
|
|
$ 1,572
|
|
|
$ 7,284
|
|
|
$ 6,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net
income
|
|
$
3.83
|
|
|
$
3.39
|
|
|
$ 21.30
|
|
|
$ 15.73
|
Adjustments to
reconcile to adjusted income from operations
|
|
|
|
|
|
|
|
|
|
|
|
Net realized
investment (gains) losses (2)
|
(0.03)
|
(0.04)
|
|
(0.24)
|
(0.18)
|
|
1.98
|
1.61
|
|
(0.57)
|
(0.46)
|
Amortization of
acquired intangible assets
|
1.50
|
0.93
|
|
1.51
|
0.99
|
|
5.99
|
4.30
|
|
5.86
|
4.38
|
Special
Items
|
|
|
|
|
|
|
|
|
|
|
|
Integration and
transaction-related costs
|
0.08
|
0.06
|
|
0.34
|
0.21
|
|
0.43
|
0.33
|
|
0.50
|
0.21
|
Charge for
organizational efficiency plan
|
—
|
—
|
|
0.51
|
0.36
|
|
0.07
|
0.05
|
|
0.49
|
0.35
|
(Benefits) associated
with litigation matters
|
—
|
—
|
|
—
|
—
|
|
(0.09)
|
(0.06)
|
|
(0.08)
|
(0.06)
|
Loss (gain) on sale of
businesses
|
0.23
|
0.18
|
|
—
|
—
|
|
(5.31)
|
(4.26)
|
|
—
|
—
|
Debt extinguishment
costs
|
—
|
—
|
|
—
|
—
|
|
—
|
—
|
|
0.41
|
0.32
|
Adjusted income from
operations (3)
|
|
$
4.96
|
|
|
$
4.77
|
|
|
$ 23.27
|
|
|
$ 20.47
|
(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 investment 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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SOURCE Cigna