01—Abstract
Summary
Summary of the 10-K filed February 29, 2024. Cited figures are marked; the original filing is the authoritative source.
The Cigna Group (CI) reported robust financial performance in its 2023 10-K filing, demonstrating growth across its key segments.
The company's Evernorth Health Services segment showed significant revenue expansion, driven by strong performance in its pharmacy benefit services and specialty offerings. Cigna Healthcare also experienced revenue growth, largely due to an increase in medical customers and favorable premium rate adjustments. The company highlighted its strategic focus on innovation and digital capabilities to enhance customer experience and control costs.
Significant strategic moves were announced, including the definitive agreement to sell its Medicare Advantage and related businesses to Health Care Service Corporation (HCSC) for $3.3 billiona. This divestiture is expected to reshape the company's portfolio, allowing for a greater focus on its core Evernorth Health Services and evolving Cigna Healthcare offerings. The company also continued its commitment to returning capital to shareholders through share repurchases and dividends, signaling financial strength and confidence in its future prospects.
02—Key points
Key Highlights
- Evernorth Health Services delivered strong revenue growth of 9%, reaching $153.5 billion, indicating sustained demand for its pharmacy, specialty, and care solutions.
- Cigna Healthcare saw a significant 14% increase in adjusted revenue to $51.2 billion, supported by customer growth and favorable premium rate adjustments.
- The company announced the sale of its Medicare Advantage and related businesses to HCSC for $3.3 billion, a strategic move to streamline its portfolio.
- Adjusted income from operations grew 2% to $7.45 billion, demonstrating the company's ability to manage profitability alongside growth.
- The company repurchased approximately $2.3 billion of its common stock in 2023, underscoring its commitment to shareholder returns.
- Capital expenditures for technology investments increased to $1.6 billion, reflecting a strategic focus on digital capabilities and innovation.
- The company ended the year with strong liquidity, reporting $7.8 billion in cash and cash equivalents.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Cigna Group kept $0.03.
- Revenue$195.26B100.0%
- Cost of revenue−$133.80B68.5%
- Gross profit$61.46B31.5%
- Operating costs−$52.93B27.1%
- Operating income$8.54B4.4%
- Interest, other & tax−$3.37B1.7%
- Net income$5.16B2.6%
Where FY2023 revenue went
$195.26B- Cost of revenue: $133.80B, 69% of revenue
- Other operating costs: $38.11B, 20% of revenue
- Net income: $5.16B, 2.6% of revenue
- SG&A: $14.82B, 7.6% of revenue
- Interest, other & tax: $3.37B, 1.7% of revenue
Kept 2.6% as net incomeNet income $5.16B · 2.6%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 29, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $195.26B$180.52B | +8.2% |
| Cost of Revenue | $133.80B$124.83B | +7.2% |
| Gross Profit | $61.46B$55.68B | +10.4% |
| SG&A Expenses | $14.82B$13.17B | +12.5% |
| Operating Income | $8.54B$8.45B | +1.0% |
| Interest Expense | $1.40B$1.30B | +7.7% |
| Net Income | $5.16B$6.70B | −23.0% |
| EPS (Basic) | $17.57$21.66 | −18.9% |
| EPS (Diluted) | $17.39$21.41 | −18.8% |
| Shares Outstanding (Diluted) | 296.88M313.06M | −5.2% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of The Cigna Group in 2023?
The Cigna Group demonstrated solid financial performance in 2023, with total revenues increasing by 8% to $195.3 billion and adjusted income from operations growing by 2% to $7.45 billion. This growth was supported by strong performance in both the Evernorth Health Services and Cigna Healthcare segments.
What are the key strategic initiatives or developments highlighted in the 10-K?
A major strategic development is the announced sale of the Medicare Advantage and related businesses to HCSC for $3.3 billion, which is expected to close in the first quarter of 2025. The company also continues to invest heavily in technology and digital capabilities to drive innovation and operational efficiency across its segments.
How is The Cigna Group returning capital to shareholders?
The Cigna Group continues to return capital to shareholders through a combination of dividends and share repurchases. In 2023, the company paid dividends totaling $1.45 billion and repurchased approximately $2.3 billion of its common stock. The company also announced a significant share repurchase program, including accelerated share repurchase agreements totaling $3.2 billion in early 2024.
What is the outlook for the Evernorth Health Services segment?
Evernorth Health Services showed strong growth, with adjusted revenues increasing 9% to $153.5 billion. This growth was driven by its pharmacy benefit, specialty, and care delivery solutions, with a particular emphasis on expanding its Care Solutions businesses and leveraging cross-enterprise opportunities.
06—Continue