Summary
Cigna Group (CI) reported strong performance in its 2021 10-K filing, driven by its Evernorth health services segment which saw adjusted revenues increase by 14% year-over-year to $131.9 billion. The Cigna Healthcare segment also showed growth, with adjusted revenues up 9% to $44.7 billion, supported by an expanding customer base in Medicare Advantage and individual plans. The company completed significant strategic actions, including the acquisition of MDLIVE to enhance its virtual care capabilities and the agreement to sell its international life, accident, and supplemental benefits businesses to Chubb. These moves underscore Cigna's strategy to focus on its core health services offerings. Financially, the company demonstrated robust cash flow from operations, which supported significant capital deployment through share repurchases totaling $7.7 billion in 2021 and an increased quarterly dividend. While the company faced some headwinds, such as the ongoing impacts of COVID-19 on healthcare utilization and costs, it maintained effective cost management and operational efficiencies, leading to a 3% increase in adjusted income from operations. Investors can look to Cigna's continued focus on integrating digital capabilities, expanding its Evernorth platform, and disciplined capital allocation as key drivers for future value.
Financial Highlights
52 data points| Revenue | $174.07B |
| Cost of Revenue | $117.55B |
| Gross Profit | $56.52B |
| SG&A Expenses | $13.01B |
| Operating Income | $7.94B |
| Interest Expense | $1.30B |
| Net Income | $5.37B |
| EPS (Basic) | $15.89 |
| EPS (Diluted) | $15.75 |
| Shares Outstanding (Diluted) | 340.97M |
Key Highlights
- 1Evernorth segment delivered strong growth with adjusted revenues up 14% to $131.9 billion, driven by pharmacy and benefits management solutions.
- 2Cigna Healthcare segment saw adjusted revenues increase by 9% to $44.7 billion, benefiting from customer growth in U.S. Government (Medicare Advantage) and Individual segments.
- 3Completed the acquisition of MDLIVE to expand virtual care offerings, integrating it into the Evernorth segment.
- 4Entered into a definitive agreement to sell its international life, accident, and supplemental benefits businesses for $5.75 billion, subject to regulatory approvals.
- 5Generated $7.19 billion in cash from operating activities in 2021.
- 6Returned $7.7 billion to shareholders through share repurchases and initiated/increased quarterly dividends.
- 7Announced and began executing an organizational efficiency plan expected to yield annualized after-tax savings of approximately $180 million.