10-QPeriod: Q2 FY2022

Cigna Group Quarterly Report for Q2 Ended Jun 30, 2022

Filed August 4, 2022For Securities:CI

Summary

Cigna Group (CI) reported strong financial results for the second quarter and first half of 2022, demonstrating robust revenue and profit growth across its key segments. Total revenues increased by 5% and 6% for the three and six months ended June 30, 2022, respectively, driven by growth in both its Evernorth and Cigna Healthcare segments. Shareholders' net income saw a notable increase of 7% for the quarter and 5% for the first half, reflecting improved operational performance and the absence of certain one-time charges seen in the prior year. Adjusted income from operations, a key non-GAAP metric, showed even stronger growth, rising 10% for the quarter and 13% for the first half, underscoring the company's underlying business strength. The company also highlighted significant strategic developments, including the completion of the sale of its international life, accident, and supplemental benefits businesses for approximately $5.4 billion, which is expected to be utilized primarily for share repurchases. Furthermore, Cigna announced a new five-year agreement with Kaiser Permanente to provide access to its PPO provider network and specialty pharmacy services, indicating strategic expansion and partnership opportunities. The company continues to manage its capital effectively, repurchasing shares and maintaining a strong liquidity position.

Financial Highlights

48 data points
Beta

Revenue

$45.48B

31.5% Gross Margin

Net Income

$1.56B

3.4% Net Margin

EPS (Diluted)

$4.89

Total Assets

$152.63B

Cash & Equivalents

$4.47B

Free Cash Flow

$1.24B

Financial Statements
Beta
Revenue$45.48B
Cost of Revenue$31.15B
Gross Profit$14.33B
SG&A Expenses$3.26B
Operating Income$2.37B
Interest Expense$316.00M
Net Income$1.56B
EPS (Basic)$4.94
EPS (Diluted)$4.89
Shares Outstanding (Diluted)318.30M

Key Highlights

  • 1Total revenues grew to $45.5 billion for the quarter and $89.5 billion for the first half of 2022, up 5% and 6% year-over-year, respectively.
  • 2Shareholders' net income increased by 7% to $1.56 billion for the quarter and 5% to $2.74 billion for the first half.
  • 3Adjusted income from operations, a key non-GAAP measure, showed significant increases of 10% for the quarter and 13% for the first half, indicating strong underlying business performance.
  • 4The company successfully completed the sale of its international life, accident, and supplemental benefits businesses for approximately $5.4 billion in cash.
  • 5A new strategic agreement was entered into with Kaiser Permanente to provide access to Cigna's network and specialty pharmacy services.
  • 6Medical customers grew by 5% to 17.8 million as of June 30, 2022, driven by growth in U.S. Commercial and International Health segments.
  • 7The company repurchased approximately $2.3 billion of its common stock in the first half of 2022 and entered into accelerated share repurchase agreements for an additional $3.5 billion.

Frequently Asked Questions

Cigna reported total revenues of $45.48 billion for the second quarter of 2022, a 5% increase compared to the prior year. Shareholders' net income rose by 7% to $1.56 billion, and adjusted income from operations, a key non-GAAP metric, increased by 10% to $1.98 billion. These results reflect growth across its major segments, particularly Evernorth and Cigna Healthcare.

The most significant strategic development was the completion of the sale of Cigna's international life, accident, and supplemental benefits businesses for approximately $5.4 billion in cash. The company also announced a new five-year agreement with Kaiser Permanente to leverage Cigna's PPO network and specialty pharmacy services. Additionally, Cigna continued its capital return program through significant share repurchases.

The Evernorth segment saw adjusted revenues increase by 7% to $34.9 billion and pre-tax adjusted income from operations grow by 4% to $1.48 billion. The Cigna Healthcare segment reported a 2% increase in adjusted revenues to $11.3 billion and a strong 18% rise in pre-tax adjusted income from operations to $1.24 billion, driven by lower medical care ratios and improved specialty contributions.

Cigna demonstrated a commitment to returning capital to shareholders through share repurchases. In the first half of 2022, the company repurchased approximately $2.3 billion of its common stock and entered into accelerated share repurchase agreements for an additional $3.5 billion, funded in part by proceeds from the sale of its international businesses. The company also continues to pay regular quarterly dividends.