What are 'adjusted revenues' and 'adjusted income from operations' and why does Cigna use these measures?

Cigna defines 'adjusted revenues' as total revenues excluding net realized investment results from equity method investments and special items. 'Adjusted income from operations' is defined as shareholders' net income (loss) excluding net realized investment results, amortization of acquired intangible assets, and special items. Cigna's management uses these non-GAAP measures because they believe they present the underlying results of operations and permit analysis of trends in underlying revenue, expenses, and profitability, excluding items they consider not indicative of past or future underlying performance.

Does this filing indicate any changes to Cigna's previously announced financial guidance?

No, this filing indicates that Cigna officials expect to reaffirm previously issued guidance. The company is reiterating its projected full year 2020 revenues and earnings per share, as well as its 2021 earnings per share targets. The press release and investor presentation from April 30, 2020, contain the details of this guidance.

What are the risks associated with Cigna's forward-looking statements?

The filing explicitly states that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These include, but are not limited to, the ability to achieve financial and strategic plans, managing costs, adapting to industry changes, competitive pressures, regulatory changes, litigation, and the impact of the COVID-19 pandemic. Investors are advised to review Cigna's most recent Form 10-K and subsequent filings for a comprehensive list of risks.

CI 8-K: Regulation FD — May 26, 2020

Q: What are Cigna's key financial projections for 2020 and 2021 that were reaffirmed in this filing?

Cigna reaffirmed its projected full year 2020 consolidated adjusted revenues in the range of $154 billion to $156 billion. For full year 2020, the company expects consolidated adjusted income from operations on a per share basis to be between $18.00 and $18.60. Cigna also reiterated its target for 2021, aiming for consolidated adjusted income from operations on a per share basis of $20.00 to $21.00.

Summary

Cigna Group (CI) filed an 8-K on May 26, 2020, to reaffirm its financial guidance for the full year 2020 and its outlook for 2021. The company expects full year 2020 consolidated adjusted revenues to be in the range of $154 billion to $156 billion. Furthermore, Cigna anticipates full year 2020 consolidated adjusted income from operations on a per share basis to be between $18.00 and $18.60. The company also reiterated its target to achieve consolidated adjusted income from operations on a per share basis of $20.00 to $21.00 in 2021. This filing serves as a reminder to investors of Cigna's previously communicated targets, indicating no changes to their forward-looking financial projections at that time. The company emphasized that these figures exclude certain items such as net realized investment results and special items, which management believes are not indicative of the underlying business performance. Investors are encouraged to review the company's website for further details and definitions of these non-GAAP measures, as well as to consider the comprehensive risk factors discussed in their SEC filings.

Key Highlights

1Reaffirmed full year 2020 consolidated adjusted revenue projection of $154 billion - $156 billion.
2Reaffirmed full year 2020 consolidated adjusted income from operations per share projection of $18.00 - $18.60.
3Reiterated 2021 target for consolidated adjusted income from operations per share of $20.00 - $21.00.
4Guidance provided pertains to meetings with investors and analysts scheduled over the coming weeks.
5The filing includes a standard disclaimer for forward-looking statements, detailing potential risks and uncertainties.
6Definitions for 'adjusted revenues' and 'adjusted income from operations' are provided, highlighting exclusions of net realized investment results and special items.
7Management asserts that these adjusted measures better reflect the underlying business performance and trends.

Cigna Group 8-K Report, Regulation FD Disclosure (May 26, 2020)

Summary

Key Highlights

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