01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
The Cigna Group's 2024 Form 10-K highlights a year of significant operational activity and strategic repositioning.
The company reported total revenues of $247.1 billiona, a substantial increase driven primarily by growth in its Evernorth Health Services segment, particularly in Pharmacy Benefit Services. This segment saw a 32% increase in adjusted revenues, fueled by higher utilization and customer growth. However, the Cigna Healthcare segment experienced a decrease in pre-tax adjusted income from operations due to higher medical costs, which are impacting its medical care ratio.
The company is in the process of divesting its Medicare Advantage and related businesses to HCSC, expected to close in early 2025, which will reshape its U.S. Healthcare segment. Financially, Cigna Group reported shareholders' net income of $3.4 billionb, a decrease from the prior year, largely due to increased net investment losses, notably an impairment related to its VillageMD investment.
Adjusted income from operations showed a modest 4% increase, reflecting the strength of Evernorth offsetting some of the pressures in Cigna Healthcare. The company continued its capital return strategy, repurchasing approximately $7 billionc of its common stock in 2024 and maintaining its dividend payments, demonstrating a commitment to shareholder value despite the ongoing healthcare industry dynamics and specific business transformations.
02—Key points
Key Highlights
- Total revenues reached $247.1 billion, driven by a 32% increase in adjusted revenues for Evernorth Health Services, primarily from pharmacy services.
- Shareholders' net income decreased by 34% to $3.4 billion, impacted by significant net investment losses, including a $2.7 billion impairment of its VillageMD equity securities.
- Adjusted income from operations increased by 4% to $7.7 billion, reflecting growth in Evernorth Health Services offsetting a decline in Cigna Healthcare's segment income.
- Cigna Healthcare's medical care ratio increased by 190 basis points, largely due to higher medical costs, particularly in its stop-loss business, while U.S. Healthcare customers declined by 10%.
- The company is progressing with the sale of its Medicare Advantage and related businesses to HCSC, expected to close in the first quarter of 2025.
- Cigna Group repurchased approximately $7.0 billion of its common stock in 2024 and maintained its quarterly dividend payments, signaling a continued focus on capital return to shareholders.
- The company maintained a strong liquidity position, with $7.6 billion in cash and short-term investments and $6.5 billion in undrawn committed capacity under its revolving credit agreements as of December 31, 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Cigna Group kept $0.01.
- Revenue$247.12B100.0%
- Cost of revenue−$182.51B73.9%
- Gross profit$64.61B26.1%
- Operating costs−$55.20B22.3%
- Operating income$9.42B3.8%
- Interest, other & tax−$5.98B2.4%
- Net income$3.43B1.4%
Where FY2024 revenue went
$247.12B- Cost of revenue: $182.51B, 74% of revenue
- Other operating costs: $40.35B, 16% of revenue
- Net income: $3.43B, 1.4% of revenue
- SG&A: $14.84B, 6.0% of revenue
- Interest, other & tax: $5.98B, 2.4% of revenue
Kept 1.4% as net incomeNet income $3.43B · 1.4%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $247.12B$195.26B | +26.6% |
| Cost of Revenue | $182.51B$133.80B | +36.4% |
| Gross Profit | $64.61B$61.46B | +5.1% |
| SG&A Expenses | $14.84B$14.82B | +0.1% |
| Operating Income | $9.42B$8.54B | +10.3% |
| Interest Expense | $1.50B$1.40B | +7.1% |
| Net Income | $3.43B$5.16B | −33.5% |
| EPS (Basic) | $12.25$17.57 | −30.3% |
| EPS (Diluted) | $12.12$17.39 | −30.3% |
| Shares Outstanding (Diluted) | 283.22M296.88M | −4.6% |
05—Questions
Frequently Asked Questions
What were the main drivers of Cigna's revenue growth in 2024?
Cigna's total revenues grew to $247.1 billion, primarily driven by the Evernorth Health Services segment, which experienced a 32% increase in adjusted revenues. This growth was largely attributed to higher utilization of prescription drugs and customer growth within its Pharmacy Benefit Services and Specialty and Care Services businesses.
How did the divestiture of the Medicare Advantage business impact the company's financial results?
While the sale of the Medicare Advantage and related businesses to HCSC is expected to close in early 2025, the ongoing process impacted the Cigna Healthcare segment. The segment saw a 6% decrease in pre-tax adjusted income from operations, partly due to higher medical costs, while customer numbers in the U.S. Healthcare business declined by 10%.
What is the outlook for Cigna's profitability given the reported investment losses?
Shareholders' net income was significantly impacted by $2.7 billion in investment losses, primarily from the impairment of its VillageMD equity securities. However, adjusted income from operations, which excludes such items, increased by 4%, demonstrating resilience in the core business operations. The company's strategic focus on Evernorth Health Services continues to be a key driver for profitability, while management navigates the challenges in the Cigna Healthcare segment.
How is Cigna managing its capital and returning value to shareholders?
Cigna Group remains committed to capital return through share repurchases and dividends. In 2024, the company repurchased approximately $7.0 billion of its common stock and continued its quarterly dividend payments. The company also maintains a strong liquidity position with significant cash reserves and available credit facilities, supporting its operational needs and strategic capital deployment priorities.
06—Continue