The Cigna Group Reports Fourth Quarter and Full Year 2024 Results, Establishes 2025 Outlook and Increases Dividend

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]