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Cigna(CI) - 2024 Q4 - Annual Results
CICigna(CI)2025-01-30 11:15

Revenue Growth - Total revenues for 2024 increased 27% to 247.1billioncomparedto2023,drivenbysignificantgrowthinEvernorthHealthServices[7]−TotalrevenuesfortheyearendedDecember31,2024,reached247.1 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 195,265millionin2023,markinganincreaseof27195,265 million in 2023, marking an increase of 27%[46] - Pharmacy revenues increased to 49,941 million in Q4 2024, up from 36,604millioninQ42023,representingagrowthof3636,604 million in Q4 2023, representing a growth of 36%[46] Shareholder Income - Shareholders' net income for 2024 was 3.4 billion, or 12.12pershare,downfrom12.12 per share, down from 5.2 billion, or 17.39persharein2023[5]−Shareholders′netincomeforQ42024was17.39 per share in 2023[5] - Shareholders' net income for Q4 2024 was 1,424 million, up from 1,029millioninQ42023,reflectingagrowthof381,029 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 27.33pershare,anincreaseof427.33 per share, an increase of 4% from 7.4 billion, or 25.09persharein2023[5]−AdjustedincomefromoperationsfortheyearendedDecember31,2024,was25.09 per share in 2023[5] - Adjusted income from operations for the year ended December 31, 2024, was 7,741 million, compared to 7,448millionin2023,indicatinganincreaseof47,448 million in 2023, indicating an increase of 4%[48] - Cigna Healthcare's adjusted income from operations for 2024 was 4.2 billion, down from 4.5billionin2023[23]−CignaHealthcare′spre−taxadjustedincomedecreasedto4.5 billion in 2023[23] - Cigna Healthcare's pre-tax adjusted income decreased to 511 million in Q4 2024 from 969millioninQ42023,adeclineof47969 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 7.9billion,oratleast7.9 billion, or at least 29.50 per share[7] - For 2025, consolidated adjusted revenues are projected to be at least 252billion,withadjustedincomefromoperationsatleast252 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 29.50pershare[29]−Theadjustedeffectivetaxratefor2025isexpectedtobeapproximately19.029.50 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 7.0billionin2024,withtotalsharerepurchaseauthorizationnowat7.0 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]