01—Abstract
Summary
Summary of the 10-K filed February 23, 2023. Cited figures are marked; the original filing is the authoritative source.
The Cigna Group's 2022 10-K filing reveals a robust financial performance, demonstrating resilience and strategic growth.
The company reported a 24% increase in shareholders' net income, reaching $6.7 billiona, driven by strong operational performance and the gain from the sale of international businesses. Adjusted income from operations saw a 4% increase to $7.3 billion, reflecting growth in both the Evernorth Health Services and Cigna Healthcare segments, supported by improved medical care ratios and cost management. Evernorth Health Services, the company's pharmacy and care solutions platform, experienced a 6% increase in adjusted revenues to $140.3 billion, fueled by strong specialty pharmacy performance and collaborative agreements.
Cigna Healthcare, encompassing medical benefits, saw a 1% rise in adjusted revenues to $45 billionb, benefiting from disciplined pricing and growth in specific market segments. The company also actively managed its capital, returning approximately $7.6 billion to shareholders through share repurchases and dividends, while maintaining a solid liquidity position. Strategic investments, including a significant commitment to VillageMD, highlight Cigna's focus on future growth and value-based care initiatives.
02—Key points
Key Highlights
- Shareholders' net income increased by 24% to $6.7 billion, driven by operational improvements and a gain from divested businesses.
- Adjusted income from operations grew 4% to $7.3 billion, demonstrating sustained profitability across key segments.
- Evernorth Health Services reported a 6% increase in adjusted revenues to $140.3 billion, driven by specialty pharmacy and cost affordability improvements.
- Cigna Healthcare's adjusted revenues grew 1% to $45 billion, supported by disciplined pricing and growth in U.S. Commercial and International Health segments.
- The company returned approximately $7.6 billion to shareholders via share repurchases and $1.4 billion through dividends in 2022.
- Capital expenditures focused on technology investments, with $1.3 billion allocated in 2022, expected to rise to $1.4 billion in 2023.
- Strategic investment in VillageMD up to $2.7 billion demonstrates a commitment to primary care and value-based care models.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2022, Cigna Group kept $0.04.
- Revenue$180.52B100.0%
- Cost of revenue−$124.83B69.2%
- Gross profit$55.68B30.8%
- Operating costs−$47.23B26.2%
- Operating income$8.45B4.7%
- Interest, other & tax−$1.75B1.0%
- Net income$6.70B3.7%
Where FY2022 revenue went
$180.52B- Cost of revenue: $124.83B, 69% of revenue
- Other operating costs: $34.06B, 19% of revenue
- Net income: $6.70B, 3.7% of revenue
- SG&A: $13.17B, 7.3% of revenue
- Interest, other & tax: $1.75B, 1.0% of revenue
Kept 3.7% as net incomeNet income $6.70B · 3.7%Interest, other & tax $1.75B · 1.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2022filed February 23, 2023Financial Statements
FY2022 against FY2021
| Line item | FY2022FY2021 | Change |
|---|---|---|
| Revenue | $180.52B$174.07B | +3.7% |
| Cost of Revenue | $124.83B$117.55B | +6.2% |
| Gross Profit | $55.68B$56.52B | −1.5% |
| SG&A Expenses | $13.17B$13.01B | +1.2% |
| Operating Income | $8.45B$7.94B | +6.4% |
| Interest Expense | $1.30B$1.30B | 0.0% |
| Net Income | $6.70B$5.37B | +24.8% |
| EPS (Basic) | $21.66$15.89 | +36.3% |
| EPS (Diluted) | $21.41$15.75 | +35.9% |
| Shares Outstanding (Diluted) | 313.06M340.97M | −8.2% |
05—Questions
Frequently Asked Questions
What were the key drivers of Cigna's revenue growth in 2022?
Cigna's revenue growth was primarily driven by the Evernorth Health Services segment, which saw a 6% increase in adjusted revenues to $140.3 billion, due to strong performance in specialty pharmacy and improved contract affordability. The Cigna Healthcare segment experienced a 1% increase in adjusted revenues to $45 billion, supported by higher specialty contributions, anticipated medical cost trends, and customer growth in certain segments.
How did Cigna manage its capital and return value to shareholders in 2022?
In 2022, Cigna significantly managed its capital by repurchasing approximately $7.6 billion of its common stock and paying $1.4 billion in dividends. The company also completed the sale of its international life, accident, and supplemental benefits businesses, generating substantial cash proceeds which were primarily used for share repurchases.
What is the significance of the investment in VillageMD?
The investment in VillageMD, up to $2.7 billion, signifies Cigna's strategic focus on expanding its presence in primary care and value-based care models. VillageMD's integrated approach to delivering high-quality, accessible primary care is expected to enhance patient outcomes and reduce overall healthcare costs, aligning with Cigna's mission to improve health and vitality.
How did the company's different business segments perform financially?
Evernorth Health Services showed strong revenue growth and a 5% increase in pre-tax adjusted income from operations. Cigna Healthcare demonstrated an increase in pre-tax adjusted income from operations by 13%, driven by lower medical care ratios and effective pricing. Other Operations saw a decrease in revenues and income, primarily due to divestitures, while Corporate segment results reflected increased operating expenses for enterprise-wide initiatives.
06—Continue