The Cigna Group Reports Strong Third Quarter 2024 Results, Reaffirms 2024 Adjusted EPS Outlook

Core Insights - The Cigna Group reported a 30% increase in total revenues for Q3 2024, reaching $63.7 billion, driven by significant growth in Evernorth Health Services [1][2][18] - Shareholders' net income for Q3 2024 was $0.7 billion, or $2.63 per share, which includes a non-cash after-tax investment loss of $1.0 billion related to VillageMD [1][2][18] - Adjusted income from operations for Q3 2024 was $2.1 billion, or $7.51 per share, reflecting a 5% increase from Q3 2023 [1][2][18] - The company reaffirmed its 2024 outlook for adjusted income from operations of at least $28.40 per share [1][13] Financial Performance - Total revenues for Q3 2024 were $63.7 billion, up from $49.0 billion in Q3 2023 [2][18] - Adjusted revenues for Q3 2024 were $63.7 billion, compared to $49.1 billion in Q3 2023 [2][18] - Shareholders' net income decreased from $1.4 billion in Q3 2023 to $0.7 billion in Q3 2024 [2][18] - Adjusted income from operations increased from $2.0 billion in Q3 2023 to $2.1 billion in Q3 2024 [2][18] Segment Performance - Evernorth Health Services saw adjusted revenues increase by 36% and adjusted income from operations increase by 9% compared to Q3 2023 [7][8] - Pharmacy Benefit Services reported a 50% increase in adjusted revenues, while Specialty and Care Services reported a 23% increase [7][8] - Cigna Healthcare's adjusted revenues increased by 3% year-over-year, while adjusted income from operations decreased by 4% [9][18] Customer Relationships - Total customer relationships increased by 12% from December 31, 2023, to 183.5 million as of September 30, 2024 [4][5] - Total pharmacy customers increased by 22% from December 31, 2023, to 120.0 million [5][4] - Total medical customers were 19.0 million, reflecting a decrease in Individual and Family Plans customers [5][4] Operational Efficiency - The SG&A expense ratio for Q3 2024 was 5.6%, down from 7.7% in Q3 2023, indicating improved operational efficiency [2][18] - The adjusted SG&A expense ratio was 5.5% for Q3 2024, compared to 7.3% in Q3 2023 [2][18] Future Outlook - The Cigna Group projects adjusted income from operations for the full year 2024 to be at least $28.40 per share [1][13] - The company anticipates Evernorth adjusted income from operations to be at least $7,000 million and Cigna Healthcare adjusted income from operations to be at least $4,775 million [13]