What is the expected financial performance for Cigna in 2020 and 2021?

Cigna expects to report approximately $158 billion in consolidated adjusted revenues for the full year 2020. For consolidated adjusted income from operations per share, the company projects a range of $18.30 to $18.60 for 2020 and targets $20.00 to $21.00 for 2021.

What significant business divestiture is Cigna undertaking?

Cigna announced that the sale of its U.S. Group Disability and Life business to New York Life Insurance Company was expected to close on December 31, 2020.

What are 'Adjusted Revenues' and 'Adjusted Income from Operations' and why does Cigna use them?

These are non-GAAP financial measures used by Cigna's management. Adjusted Revenues exclude net realized investment results and special items, while Adjusted Income from Operations excludes net realized investment results, amortization of acquired intangible assets, and special items. Management believes these measures provide a better indication of the underlying performance and trends of the business.

Why can't Cigna provide a GAAP reconciliation for its forward-looking non-GAAP guidance?

Cigna states that it is unable to provide a reconciliation to the most comparable GAAP measures (total revenues and shareholders' net income) on a forward-looking basis because it cannot predict certain components like future net realized investment results and future special items. These items are inherently uncertain and could materially impact the actual results.

CI 8-K: Regulation FD — Dec 28, 2020

Summary

Cigna Corporation filed an 8-K on December 28, 2020, primarily to reaffirm its financial outlook and provide an update on a significant divestiture. The company anticipates approximately $158 billion in consolidated adjusted revenues for full-year 2020. Furthermore, Cigna reaffirmed its projected consolidated adjusted income from operations per share for 2020 to be in the range of $18.30 to $18.60, and reiterated its target for 2021 to achieve $20.00 to $21.00 per share.

Key Highlights

1Reaffirmed 2020 projected consolidated adjusted revenues of approximately $158 billion.
2Reaffirmed 2020 projected consolidated adjusted income from operations per share in the range of $18.30 to $18.60.
3Reiterated 2021 target for consolidated adjusted income from operations per share of $20.00 to $21.00.
4Expected closing of the sale of its U.S. Group Disability and Life business to New York Life Insurance Company on December 31, 2020.
5The company's management uses non-GAAP measures (Adjusted Revenues and Adjusted Income from Operations) to present underlying business performance.
6Management is unable to provide a GAAP reconciliation for forward-looking non-GAAP measures due to inherent uncertainties in predicting certain components.

Cigna Group 8-K Report, Regulation FD Disclosure (Dec 28, 2020)

Summary

Key Highlights

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