10-KPeriod: FY2022

Cigna Group Annual Report, Year Ended Dec 31, 2022

Filed February 23, 2023For Securities:CI

Summary

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 billion, 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 billion, 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.

Financial Highlights

52 data points
Beta

Revenue

$180.52B

30.8% Gross Margin

Net Income

$6.70B

3.7% Net Margin

EPS (Diluted)

$21.41

Total Assets

$143.88B

Cash & Equivalents

$5.98B

Free Cash Flow

$8.66B

Financial Statements
Beta
Revenue$180.52B
Cost of Revenue$124.83B
Gross Profit$55.68B
SG&A Expenses$13.17B
Operating Income$8.45B
Interest Expense$1.30B
Net Income$6.70B
EPS (Basic)$21.66
EPS (Diluted)$21.41
Shares Outstanding (Diluted)313.06M

Key Highlights

  • 1Shareholders' net income increased by 24% to $6.7 billion, driven by operational improvements and a gain from divested businesses.
  • 2Adjusted income from operations grew 4% to $7.3 billion, demonstrating sustained profitability across key segments.
  • 3Evernorth Health Services reported a 6% increase in adjusted revenues to $140.3 billion, driven by specialty pharmacy and cost affordability improvements.
  • 4Cigna Healthcare's adjusted revenues grew 1% to $45 billion, supported by disciplined pricing and growth in U.S. Commercial and International Health segments.
  • 5The company returned approximately $7.6 billion to shareholders via share repurchases and $1.4 billion through dividends in 2022.
  • 6Capital expenditures focused on technology investments, with $1.3 billion allocated in 2022, expected to rise to $1.4 billion in 2023.
  • 7Strategic investment in VillageMD up to $2.7 billion demonstrates a commitment to primary care and value-based care models.

Frequently Asked Questions

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.

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.

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.

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.