10-QPeriod: Q3 FY2022

Cigna Group Quarterly Report for Q3 Ended Sep 30, 2022

Filed November 3, 2022For Securities:CI

Summary

Cigna Group (CI) reported solid financial results for the nine months ended September 30, 2022. Total revenues increased by 5% to $134.765 billion. Shareholders' net income saw a significant increase of 29% to $5.499 billion, driven largely by a substantial gain on the sale of international businesses and improved adjusted income from operations. The company demonstrated strong operational performance, with adjusted income from operations rising by 7% to $5.770 billion. This growth was supported by expansion in its Evernorth segment and improved medical cost ratios in the Cigna Healthcare segment. The sale of international businesses provided a significant boost to net income, while the company continued its capital return strategy through share repurchases and dividends.

Financial Highlights

48 data points
Beta

Revenue

$45.28B

29.8% Gross Margin

Net Income

$2.76B

6.1% Net Margin

EPS (Diluted)

$8.97

Total Assets

$144.21B

Cash & Equivalents

$7.12B

Free Cash Flow

$3.28B

Financial Statements
Beta
Revenue$45.28B
Cost of Revenue$31.78B
Gross Profit$13.50B
SG&A Expenses$3.15B
Operating Income$2.14B
Interest Expense$317.00M
Net Income$2.76B
EPS (Basic)$9.07
EPS (Diluted)$8.97
Shares Outstanding (Diluted)307.52M

Key Highlights

  • 1Total revenues increased by 5% to $134.765 billion for the nine months ended September 30, 2022.
  • 2Shareholders' net income rose by 29% to $5.499 billion for the nine months ended September 30, 2022.
  • 3Adjusted income from operations increased by 7% to $5.770 billion for the nine months ended September 30, 2022.
  • 4A significant gain of $1.735 billion was recognized from the sale of international life, accident, and supplemental benefits businesses.
  • 5Evernorth segment revenues grew by 8%, demonstrating continued business expansion.
  • 6Cigna Healthcare segment saw improved medical care ratios, contributing to a 14% increase in pre-tax adjusted income from operations.
  • 7The company returned capital to shareholders through share repurchases totaling $5.8 billion and dividend payments.

Frequently Asked Questions

The primary driver for the significant increase in Shareholders' Net Income was the gain of $1.735 billion recognized from the sale of Cigna's international life, accident, and supplemental benefits businesses to Chubb. This was complemented by growth in adjusted income from operations.

The Evernorth segment showed strong performance with adjusted revenues increasing by 8%, driven by business growth and contract affordability improvements. The Cigna Healthcare segment experienced a 1% increase in adjusted revenues, with improved medical care ratios and increased specialty contributions leading to a 14% rise in pre-tax adjusted income from operations.

Cigna continues to focus on returning capital to shareholders. During the nine months ended September 30, 2022, the company repurchased approximately $5.8 billion of its common stock and paid quarterly cash dividends. The company intends to continue paying regular quarterly dividends, subject to board approval and financial performance.

Yes, Cigna completed the sale of its life, accident, and supplemental benefits businesses in six countries to Chubb for approximately $5.4 billion in cash on July 1, 2022. This divestiture significantly impacted the reported financial results.