What were the main drivers of Cigna's revenue growth in 2019?

Cigna's revenue growth in 2019 was primarily driven by the full-year inclusion of Express Scripts' operations following its acquisition in December 2018. The Integrated Medical segment also contributed positively with customer growth and premium rate increases.

How did the Express Scripts acquisition impact Cigna's financial performance?

The acquisition of Express Scripts significantly boosted Cigna's total revenues, contributing substantially to the Health Services segment. While the acquisition increased debt and related interest expenses, the overall financial performance, including net income and earnings per share, showed substantial improvement in 2019 compared to 2018.

What is Cigna's strategy for future growth and operations?

Cigna's strategy revolves around 'Go Deeper, Go Local, Go Beyond' to improve health, well-being, and peace of mind. This includes expanding and deepening customer relationships, tailoring solutions to local market needs, and innovating to differentiate its offerings. The company is also focused on leveraging advanced analytics and technology to enhance customer experience and health outcomes.

What significant divestitures did Cigna announce in 2019?

In December 2019, Cigna announced a definitive agreement to sell its Group Disability and Life business to New York Life Insurance Company for $6.3 billion. This sale is expected to be completed in the third quarter of 2020, subject to regulatory approvals. The net proceeds are intended to be used for share repurchases and debt repayment.

CI 10-K FY2019 Annual Report — Revenue, Net Income, EPS

Summary

Cigna Group (CI) reported strong financial performance for the fiscal year ended December 31, 2019, driven by the acquisition of Express Scripts and growth in its Integrated Medical segment. Total revenues surged by 216% to $153.6 billion, largely due to the inclusion of Express Scripts' pharmacy benefit management and health services. Shareholders' net income increased by 94% to $5.1 billion, with diluted earnings per share rising to $13.44. The company's strategic focus remains on improving health, well-being, and peace of mind through its Go Deeper, Go Local, Go Beyond strategy. Key business segments include Health Services, Integrated Medical, International Markets, and Group Disability and Other. Cigna also announced its intent to sell its Group Disability and Life business in December 2019, a transaction expected to close in the third quarter of 2020. Looking ahead, Cigna is focused on continued integration of Express Scripts, driving innovation in health solutions, and managing costs effectively amidst a dynamic healthcare landscape. The company maintains a strong liquidity position and is actively managing its capital resources.

Financial Highlights

54 data points

Beta

Revenue

$153.57B

0.4% Gross Margin

Net Income

$5.10B

0.0% Net Margin

EPS (Diluted)

$13.44

Total Assets

$155.77B

Cash & Equivalents

$4.62B

Free Cash Flow

$8.44B

Financial Statements

Beta

Revenue	$153.57B
Cost of Revenue	$97.67B
Gross Profit	$55.90B
SG&A Expenses	$14.05B
Operating Income	$8.08B
Interest Expense	$1.60B
Net Income	$5.10B
EPS (Basic)	$13.58
EPS (Diluted)	$13.44
Shares Outstanding (Diluted)	379.82M

Key Highlights

1Total revenues increased by 216% to $153.6 billion in 2019, primarily driven by the Express Scripts acquisition.
2Shareholders' net income grew by 94% to $5.1 billion in 2019.
3Diluted earnings per share increased to $13.44 in 2019 from $10.54 in 2018.
4The Health Services segment, including Express Scripts, reported adjusted revenues of $96.4 billion.
5The Integrated Medical segment saw adjusted revenues of $36.5 billion, with growth in both Commercial and Government offerings.
6Cigna entered into an agreement to sell its Group Disability and Life business for $6.3 billion, expected to close in Q3 2020.
7The company is focused on realizing synergies from the Express Scripts integration and driving innovation in its health services.

Cigna Group Annual Report, Year Ended Dec 31, 2019

Summary

Financial Highlights

Key Highlights

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