Company Performance - Cigna reported quarterly earnings of $6.64 per share, missing the Zacks Consensus Estimate of $7.83 per share, and down from $6.79 per share a year ago, representing an earnings surprise of -15.20% [1] - The company posted revenues of $65.68 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.85%, and up from $51.15 billion year-over-year [2] - Over the last four quarters, Cigna has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Cigna shares have increased approximately 9.8% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the coming quarter is $6.89 on revenues of $59.68 billion, and for the current fiscal year, it is $31.57 on revenues of $249.9 billion [7] - The estimate revisions trend for Cigna is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical - HMOs industry, to which Cigna belongs, is currently in the bottom 36% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Revenue Growth - Total revenues for 2024 increased 27% to $247.1 billion compared to 2023, driven by significant growth in Evernorth Health Services[7] - Total revenues for the year ended December 31, 2024, reached $247,121 million, compared to $195,265 million in 2023, marking an increase of 27%[46] - Pharmacy revenues increased to $49,941 million in Q4 2024, up from $36,604 million in Q4 2023, representing a growth of 36%[46] Shareholder Income - Shareholders' net income for 2024 was $3.4 billion, or $12.12 per share, down from $5.2 billion, or $17.39 per share in 2023[5] - Shareholders' net income for Q4 2024 was $1,424 million, up from $1,029 million in Q4 2023, reflecting a growth of 38%[47] Adjusted Income and Operations - Adjusted income from operations for 2024 was $7.7 billion, or $27.33 per share, an increase of 4% from $7.4 billion, or $25.09 per share in 2023[5] - Adjusted income from operations for the year ended December 31, 2024, was $7,741 million, compared to $7,448 million in 2023, indicating an increase of 4%[48] - Cigna Healthcare's adjusted income from operations for 2024 was $4.2 billion, down from $4.5 billion in 2023[23] - Cigna Healthcare's pre-tax adjusted income decreased to $511 million in Q4 2024 from $969 million in Q4 2023, a decline of 47%[46] Customer Growth - Total customer relationships increased by 11% to 182.2 million as of December 31, 2024, compared to 164.4 million in 2023[12] - Total pharmacy customers increased by 20% to 118.3 million, reflecting new sales and expanded relationships[13] - Total medical customers are projected to be around 18.1 million in 2025[30] Medical Care Ratio and Costs - Fourth quarter and full year 2024 adjusted income from operations decreased by 47% and 6%, respectively, primarily due to a higher medical care ratio (MCR) driven by increased stop loss medical costs[5] - Cigna Healthcare's MCR was 87.9% for the fourth quarter and 83.2% for the full year 2024, compared to 82.2% and 81.3% for the same periods in 2023[5] - Cigna Healthcare's net medical costs payable was $4.86 billion as of December 31, 2024, consistent with the previous quarter and the same date in 2023[5] Future Projections - 2025 adjusted income from operations is projected to be at least $7.9 billion, or at least $29.50 per share[7] - For 2025, consolidated adjusted revenues are projected to be at least $252 billion, with adjusted income from operations at least $7.9 billion[30] - The outlook for full year 2025 includes consolidated adjusted income from operations projected at least $29.50 per share[29] - The adjusted effective tax rate for 2025 is expected to be approximately 19.0%[30] - The adjusted SG&A expense ratio for 2025 is projected to be approximately 5.4%[30] Shareholder Returns - The Board of Directors declared an 8% increase in the quarterly dividend to $1.51 per share, effective March 20, 2025[7] - The company repurchased 20.9 million shares for approximately $7.0 billion in 2024, with total share repurchase authorization now at $10.3 billion[10] Challenges - The company anticipates continued challenges in maintaining relationships with key pharmaceutical manufacturers and adapting to industry changes[45]

Core Insights - The Cigna Group reported strong performance in Evernorth Health Services, while Cigna Healthcare faced challenges due to increased stop loss medical costs [1][2][3] Financial Performance - Shareholders' net income for Q4 2024 was $1.4 billion, or $5.13 per share, up from $1.0 billion, or $3.49 per share in Q4 2023 [2][8] - Adjusted income from operations for Q4 2024 was $1.8 billion, or $6.64 per share, down from $2.0 billion, or $6.79 per share in Q4 2023 [3][8] - Total revenues for 2024 increased by 27% to $247.1 billion, with adjusted income from operations rising to $7.7 billion, or $27.33 per share, compared to $7.4 billion, or $25.09 per share in 2023 [4][7] Segment Performance - Evernorth Health Services saw adjusted revenues increase by 33% in Q4 2024 and 32% for the full year compared to 2023, driven by client wins and specialty volume growth [17][19] - Cigna Healthcare's adjusted revenues for Q4 2024 were $13.3 billion, a slight increase from $13.0 billion in Q4 2023, but adjusted income from operations decreased to $511 million from $969 million [20][39] Customer Relationships - Total customer relationships increased by 11% to 182.2 million as of December 31, 2024, with pharmacy customers rising by 20% to 118.3 million [11][16] - Total medical customers decreased to 19.1 million, primarily due to a reduction in Individual and Family Plans customers [16][19] Shareholder Returns - The Board of Directors declared an 8% increase in the quarterly dividend to $1.51 per share and approved an additional $6.0 billion in share repurchase authorization, totaling $10.3 billion [7][10] 2025 Outlook - The Cigna Group projects adjusted income from operations for 2025 to be at least $7.9 billion, or at least $29.50 per share [7][26] - The anticipated 2025 medical care ratio for Cigna Healthcare is expected to be between 83.2% and 84.2% [26][23]

Core Insights - The Cigna Group reported over $3.4 billion in net income for 2024, including $1.4 billion in the fourth quarter, despite rising medical expenses from patients in its health plans [1][7] - The company is facing challenges similar to other health insurers in controlling costs due to an increase in patient claims, partly driven by pent-up demand from the Covid-19 pandemic [2][3] Financial Performance - Cigna's medical cost ratio (MCR) rose to 87.9% in Q4 2024 from 82.2% in Q4 2023, and for the full year 2024, the MCR was 83.2% compared to 81.3% in 2023 [4] - Total revenues for 2024 increased by 27% to $247.1 billion, primarily due to significant growth in Evernorth Health Services [7] - Net income for Q4 2024 was $1.4 billion, up from $1 billion in the same period last year, while total net income for 2024 was $3.4 billion, down from $5.1 billion in 2023 [7] Strategic Moves - Cigna is divesting its Medicare health benefits businesses and a medical care provider services operation for $3.3 billion to Health Care Service Corp, aiming to exit the government-subsidized health insurance market for seniors [5][6] - The deal includes the acquisition of Cigna's Medicare Advantage plans, supplemental benefits, and Medicare Part D drug benefits, expected to close in Q1 of the current year [6] Growth in Services - Evernorth, which includes the Express Scripts pharmacy benefit management company, saw a 20% increase in total pharmacy customers, reaching 118.3 million by the end of 2024 [8] - Adjusted revenues for the fourth quarter and full year 2024 increased by 47% and 46%, respectively, reflecting client wins and organic growth in pharmacy benefit services [8]

Core Insights - Cigna Healthcare and Providence are expanding their network in Los Angeles County, providing customers with additional care facilities and nearly 2,000 in-network providers and specialists [1][3]. Group 1: Network Expansion - The agreement allows Cigna Healthcare Select HMO customers to access more affordable, in-network care options [1]. - The expansion aims to enhance flexibility in benefit plans for employer clients, enabling employees and their families to receive quality care at Providence facilities [3]. Group 2: Leadership Statements - Tim Closson, Cigna Healthcare's general manager for Southern California, emphasized the importance of local healthcare and the increased access to care for customers [4]. - Laureen Driscoll, Chief Executive of Providence South Division, highlighted the commitment to high-quality, integrated health services and whole person care for new patients from Cigna [4]. Group 3: About Cigna Healthcare - Cigna Healthcare is a health benefits provider that offers a comprehensive suite of health services, including medical, dental, behavioral health, and pharmacy services [5]. - The company aims to empower customers with information to make informed health choices [5]. Group 4: About Providence - Providence operates an integrated delivery network with 17 hospitals in California, supported by over 35,000 caregivers and approximately 11,000 physicians [6]. - In 2023, Providence contributed $669 million in services, programs, and charity care to support the poor and vulnerable [8].

Core Insights - Evernorth Health Services, a subsidiary of The Cigna Group, is taking steps to improve costs and transparency around pharmacy benefits to help patients benefit from Express Scripts' negotiations for lower prescription drug costs [1][2] Group 1: Cost Reduction Initiatives - The company aims to protect patients from high list prices of medications by providing access to lower negotiated prices [4] - Patients in employer-sponsored plans will experience improved financial predictability, especially during the deductible phase when medication costs are highest [5] Group 2: Transparency Enhancements - Evernorth is introducing personalized summaries for patients detailing annual total prescription drug costs, including medication prices, negotiated savings, and total savings [5] - Plan sponsors will receive an annual standardized report disclosing costs and pharmacy claim-level reporting to enhance transparency [6] Group 3: Commitment to Patient Care - The leadership emphasizes the goal of exceeding patient expectations for better health and ensuring no surprises at the pharmacy counter [7] - The company is committed to leading change to make medications more affordable and understandable for patients [7]

BLOOMFIELD, Conn., Jan. 14, 2025 /PRNewswire/ -- Global health company The Cigna Group (NYSE:CI) will release its fourth quarter 2024 financial results on Thursday, January 30, 2025, and will host a conference call the same day. Fourth quarter 2024 financial results will be released no later than 6:30 a.m. Eastern Time (ET). Management will review these results on a conference call beginning at 8:30 a.m. ET. The call-in numbers are as follows: Live Call(888) 566-1889 (Domestic)(773) 799-3989 (International) ...

BLOOMFIELD, Conn., Jan. 13, 2025 /PRNewswire/ -- Cigna Healthcare, the health benefits division of The Cigna Group (NYSE: CI), today announced a new offering in collaboration with Progyny, Inc (Nasdaq: PGNY) that makes best-in-class fertility and family-building services accessible and equitable for more employers. This new and comprehensive benefit will enable employers to offer expanded coverage throughout the entire fertility journey, from pre-conception planning to postpartum care, along with coverage o ...

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