Summary
Cigna Group (CI) reported a net loss of $277 million, or -$0.97 per diluted share, for the first quarter of 2024, a significant decline from a net income of $1.3 billion, or $4.24 per diluted share, in the same period last year. This net loss was primarily driven by a substantial $1.8 billion net realized investment loss, largely due to an impairment of equity securities, specifically its investment in VillageMD. Despite the GAAP net loss, the company's adjusted income from operations, a non-GAAP measure, increased by 16% to $1.875 billion, or $6.47 per diluted share, reflecting the underlying operational strength of its Evernorth Health Services and Cigna Healthcare segments. Total revenues saw a significant increase of 23% to $57.3 billion, driven by a 31% surge in pharmacy revenues, largely attributed to the onboarding of Centene. The Cigna Healthcare segment's adjusted revenues grew 4%, supported by higher premium rates. The company also announced its agreement to sell its Medicare Advantage, Medicare Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits, and CareAllies businesses to Health Care Service Corporation (HCSC) for approximately $3.3 billion, expected to close in Q1 2025. This strategic divestiture, coupled with robust operational performance in its core segments, positions Cigna for future focus and potential capital deployment.
Financial Highlights
47 data points| Revenue | $57.26B |
| Cost of Revenue | $41.43B |
| Gross Profit | $15.82B |
| SG&A Expenses | $3.71B |
| Operating Income | $2.26B |
| Interest Expense | $369.00M |
| Net Income | -$277.00M |
| EPS (Basic) | $-0.97 |
| EPS (Diluted) | $-0.97 |
| Shares Outstanding (Diluted) | 286.46M |
Key Highlights
- 1Reported a GAAP net loss of $277 million ($0.97 per share) for Q1 2024, compared to net income of $1.3 billion ($4.24 per share) in Q1 2023, largely due to a significant $1.8 billion realized investment loss from equity security impairments.
- 2Adjusted income from operations increased 16% to $1.875 billion ($6.47 per share), indicating strong underlying business performance, driven by growth in both Evernorth Health Services and Cigna Healthcare segments.
- 3Total revenues surged 23% to $57.3 billion, primarily fueled by a 31% increase in pharmacy revenues, notably from onboarding Centene.
- 4Agreed to sell its Medicare Advantage and related businesses to HCSC for approximately $3.3 billion, expected to close in Q1 2025, streamlining its business portfolio.
- 5Cigna Healthcare segment saw adjusted revenues grow 4% and pre-tax adjusted income from operations increase 20%, driven by higher premium rates and a lower medical care ratio.
- 6Evernorth Health Services segment's adjusted revenues increased 28% and pre-tax adjusted income from operations grew 3%, benefiting from higher claims volume and specialty services growth.
- 7The company repurchased approximately $3.4 billion of common stock in Q1 2024, including initial deliveries under accelerated share repurchase agreements, demonstrating a commitment to returning capital to shareholders.