Summary
Cigna Group's (CI) first quarter 2022 filing showcases solid revenue growth and improved profitability, driven by strong performance in its Evernorth and Cigna Healthcare segments. Total revenues increased by 7% year-over-year to $44.0 billion, with adjusted revenues up 8% to $44.1 billion, reflecting growth in pharmacy, premiums, and fees. Net income attributable to shareholders rose slightly to $1.183 billion, or $3.68 per diluted share, compared to $1.161 billion, or $3.30 per diluted share, in the prior year's quarter. The company's adjusted income from operations saw a significant increase of 16% to $1.931 billion, with diluted EPS on this basis growing by 27% to $6.01, underscoring operational improvements and effective cost management. Operationally, Cigna Healthcare experienced a 3% increase in adjusted revenues, boosted by specialty contributions and higher premium rates, alongside a notable 23% rise in pre-tax adjusted income from operations. The Evernorth segment also demonstrated strength with a 10% increase in adjusted revenues, driven by specialty claims volume and price increases, leading to a 6% growth in pre-tax adjusted income from operations. The company is progressing with its strategic divestiture of international life, accident, and supplemental benefits businesses, expected to close in the second quarter of 2022, and continues to focus on operational efficiency and capital return to shareholders through dividends and share repurchases.
Financial Highlights
47 data points| Revenue | $44.01B |
| Cost of Revenue | $29.81B |
| Gross Profit | $14.19B |
| SG&A Expenses | $3.27B |
| Operating Income | $2.19B |
| Interest Expense | $314.00M |
| Net Income | $1.20B |
| EPS (Basic) | $3.76 |
| EPS (Diluted) | $3.73 |
| Shares Outstanding (Diluted) | 321.28M |
Key Highlights
- 1Total revenues increased 7% to $44.0 billion, with adjusted revenues growing 8% to $44.1 billion, driven by Cigna Healthcare and Evernorth segments.
- 2Shareholders' net income rose 2% to $1.183 billion, or $3.68 per diluted share.
- 3Adjusted income from operations increased significantly by 16% to $1.931 billion, with diluted EPS on this basis up 27% to $6.01.
- 4Evernorth segment revenues grew 10% to $33.6 billion, and pre-tax adjusted income from operations increased 6% to $1.3 billion.
- 5Cigna Healthcare segment revenues increased 3% to $11.4 billion, with pre-tax adjusted income from operations up 23% to $1.3 billion.
- 6The company repurchased $1.3 billion of common stock in the first quarter of 2022.
- 7Cigna is on track to complete the sale of its international life, accident and supplemental benefits businesses to Chubb in Q2 2022 for $5.72 billion.