Summary
Cigna Group (CI) reported solid revenue growth for the nine months ending September 30, 2021, with total revenues increasing by 8% year-over-year to $128.4 billion. This growth was primarily driven by a strong performance in the Evernorth segment, which saw a 13% increase in adjusted revenues, and continued growth in U.S. Medical premiums. Despite overall revenue growth, shareholders' net income saw a slight decrease of 2% for the nine-month period, mainly due to a decline in adjusted income from operations, impacted by unfavorable COVID-19 related costs and the absence of earnings from the divested Group Disability and Life business. However, diluted earnings per share saw a 6% increase due to a favorable effect of share repurchases. The company continues to strategically manage its portfolio, evidenced by the announced sale of its international life, accident, and supplemental benefits businesses for $5.75 billion and the acquisition of MDLIVE for $2.0 billion, which will bolster its virtual care offerings. Cigna's balance sheet remains robust, with total assets of $154.3 billion and shareholders' equity of $47.4 billion. The company is actively returning capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value. Investors should monitor the ongoing integration of MDLIVE and the successful execution of the international divestiture, as well as the continued impact of COVID-19 on medical costs and utilization.
Financial Highlights
48 data points| Revenue | $44.29B |
| Cost of Revenue | $30.07B |
| Gross Profit | $14.22B |
| SG&A Expenses | $3.09B |
| Operating Income | $2.29B |
| Interest Expense | $312.00M |
| Net Income | $1.62B |
| EPS (Basic) | $4.84 |
| EPS (Diluted) | $4.80 |
| Shares Outstanding (Diluted) | 337.58M |
Key Highlights
- 1Total revenues increased by 8% to $128.4 billion for the nine months ended September 30, 2021, compared to the prior year period, driven by strong performance in the Evernorth segment and U.S. Medical.
- 2Shareholders' net income for the nine months ended September 30, 2021, slightly decreased by 2% to $4.25 billion, while diluted EPS increased by 6% to $12.32 due to share repurchases.
- 3The company announced the sale of its international life, accident, and supplemental benefits businesses to Chubb for $5.75 billion, expected to close in 2022.
- 4Cigna completed the acquisition of MDLIVE, Inc. for $2.0 billion on April 19, 2021, enhancing its virtual care capabilities within the Evernorth segment.
- 5Adjusted income from operations increased by 20% for the three months ended September 30, 2021, but decreased by 2% for the nine-month period, impacted by COVID-19 costs and divestitures.
- 6The U.S. Medical segment experienced higher medical care ratios (MCR) due to COVID-19 impacts and increased utilization, while the expense ratio decreased.
- 7The company generated strong operating cash flows of $2.9 billion for the nine months ended September 30, 2021, while investing activities showed a net cash use of $3.7 billion, largely due to acquisitions.