Core Insights - Children's Home Society of North Carolina (CHS) has achieved the Gold Level in the 2024 Cigna Healthy Workforce Designation™, highlighting its dedication to employee health and well-being [1][2][3] Employee Wellness Commitment - Cigna Healthcare awards this designation to organizations that show a strong commitment to employee wellness through comprehensive programs and leadership support [2][3] - CHS excelled in key areas such as strong leadership engagement, diverse well-being programs, and effective communication strategies [5] Organizational Culture - CHS emphasizes the importance of employee well-being as critical to its mission, aiming to create a supportive and healthy workplace [2][3] - The organization has a long history of providing services that foster healthy family relationships, which aligns with its commitment to employee wellness [4] Well-Being Programs - CHS offers a diverse range of well-being programs that address physical, mental, and social health [5] - The organization focuses on health equity and social determinants of health, ensuring comprehensive support for its employees [5] Measurement and Evaluation - CHS employs robust measurement and evaluation strategies, utilizing data-driven insights to enhance the effectiveness of its wellness programs [5]

Core Viewpoint - The Cigna Group is initiating a multi-year effort to transform health care experiences for its customers, focusing on systemic change and improved health outcomes [2][4]. Group 1: Key Areas of Focus - The company has identified five key areas to enhance customer health and value [2]. - Initial actions include tying leaders' compensation to customer satisfaction [3]. - An annual Customer Transparency Report will be published starting in early 2026 to track progress [4]. Group 2: Specific Actions - Evernorth Health Services will ensure patients benefit from lower negotiated prices for medications [5]. - The company aims to simplify access to care, provide better support, enhance value, ensure accountability, and maintain transparency [6]. - Cigna Healthcare will expand its team of advocates for patients with complex conditions and improve administrative processes [7]. Group 3: Governance and Executive Changes - The new Office of Excellence and Transformation will oversee the company's initiatives to improve customer health and accountability [9]. - Dr. David Brailer will lead this office, supported by Chris DeRosa, who will continue overseeing Medicare businesses [10]. - The company is committed to leading the health care industry in patient and clinician support [11]. Group 4: Company Overview - The Cigna Group operates globally, serving approximately 182 million customer relationships and offering products under Cigna Healthcare and Evernorth Health Services [12].

Core Viewpoint - Cigna's stock experienced a significant decline following disappointing earnings results and guidance, despite a mixed performance in the broader market [1] Financial Performance - Cigna reported Q4 revenue of $65.65 billion, surpassing Wall Street's estimate of $63.44 billion, but faced a notable earnings-per-share (EPS) miss, delivering $6.64 per share compared to the expected $7.82 [2] - The company's medical cost ratio was reported at 87.9%, exceeding the anticipated 84.7%, indicating higher medical expenses relative to premiums [2] Future Outlook - CEO David Cordani indicated that Cigna is implementing corrective actions to address short-term pressures and is focused on advancing its long-term growth strategy amid rising costs [3] - The company anticipates it will take two years to recover margins affected by higher-than-expected costs, forecasting EPS of $29.50 for 2025, lower than Wall Street's expectation of $31.50 [3] Shareholder Actions - In a positive development for shareholders, Cigna's board increased the quarterly dividend by 8% and authorized a $6 billion increase in share repurchases [4]

Core Viewpoint - Cigna Group reported mixed financial results for the fourth quarter of 2024, with adjusted earnings per share (EPS) missing estimates while revenues showed significant growth year over year [1][2]. Financial Performance - Adjusted EPS for Q4 2024 was $6.64, missing the Zacks Consensus Estimate by 15.2%, and declined 2.2% year over year [1]. - Adjusted revenues increased by 28.4% year over year to $65.7 billion, surpassing the consensus mark by 3.9% [2]. - Total benefits and expenses rose 29% year over year to $63.5 billion, driven by higher pharmacy and medical costs [4]. - Adjusted operating income fell 8% year over year to $1.8 billion, primarily due to reduced contributions from the Cigna Healthcare unit [4]. Customer Base and Segments - Cigna's medical customer base decreased by 3.2% year over year to 19.15 million, falling short of the consensus estimate [3]. - Evernorth Health Services segment reported adjusted revenues of $53.7 billion, a 33% increase year over year, exceeding the consensus estimate of $51.1 billion [5]. - Cigna Healthcare segment's adjusted revenues grew 3% year over year to $13.3 billion but missed the consensus estimate [7]. Cost and Margin Analysis - The adjusted pre-tax margin for operating income deteriorated by 70 basis points year over year to 4% [6]. - The medical care ratio (MCR) was reported at 87.9%, worsening by 570 basis points year over year due to increased stop-loss medical costs [8]. Financial Position - As of December 31, 2024, Cigna had cash and cash equivalents of $7.6 billion, a decrease of 3.5% from the previous year [9]. - Total assets increased by 2% to $155.9 billion, while total shareholders' equity decreased by 11.2% to $41 billion [9]. Capital Deployment - Cigna repurchased 20.9 million shares for approximately $7 billion in 2024 and increased its share repurchase authorization to $10.3 billion [12]. - An 8% increase in the quarterly cash dividend was approved, raising it to $1.51 per share [12]. 2025 Outlook - Adjusted revenues for 2025 are projected to be at least $252 billion, indicating a minimum growth of 2% from 2024 [13]. - Adjusted operating income is expected to be a minimum of $7.9 billion, reflecting a growth of at least 2.1% from 2024 [13]. - The forecasted adjusted EPS for 2025 is a minimum of $29.50, suggesting a growth of at least 7.9% from 2024 [13].

This press release, and oral statements made in connection with this release, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements are based on The Cigna Group's current expectations and projections about future trends, events and uncertainties. These statements are not historical facts. Forward-looking statements may include, among others, statements concerning our projected outlook for 2025 (including adjusted revenu ...

Core Insights - Cigna reported $65.68 billion in revenue for Q4 2024, a year-over-year increase of 28.4%, exceeding the Zacks Consensus Estimate by 3.85% [1] - The EPS for the quarter was $6.64, which is a decrease of 2.2% from $6.79 a year ago, falling short of the consensus estimate of $7.83 by 15.20% [1] Financial Performance Metrics - Medical Care Ratio was reported at 87.9%, higher than the estimated 84.5% [4] - Total Medical Customers reached 19.15 million, slightly below the average estimate of 19.17 million [4] - Revenues from Fees and Other amounted to $3.93 billion, surpassing the estimate of $3.73 billion, reflecting a year-over-year increase of 29% [4] - Premium revenues were $11.50 billion, exceeding the estimate of $11.45 billion, with a year-over-year growth of 2.9% [4] - Pharmacy revenues reached $49.94 billion, significantly above the estimate of $48.20 billion, marking a 36.4% year-over-year increase [4] - Revenues from Evernorth Health Services were $53.74 billion, compared to the estimate of $51.10 billion, representing a year-over-year change of 32.6% [4] - Cigna Healthcare Premium revenues were $11.38 billion, exceeding the estimate of $11.27 billion, with a year-over-year increase of 2.5% [4] - Net investment income was reported at $277 million, above the estimate of $254.43 million, but down 4.5% from the previous year [4] - Cigna Healthcare revenues were $13.30 billion, slightly below the estimate of $13.37 billion, reflecting a year-over-year increase of 2.5% [4] - Evernorth Health Services Pharmacy revenues were $50.75 billion, exceeding the estimate of $48.74 billion, with a year-over-year increase of 34.4% [4] Stock Performance - Cigna's shares have returned +9.8% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Company Performance - Cigna reported quarterly earnings of $6.64 per share, missing the Zacks Consensus Estimate of $7.83 per share, and down from $6.79 per share a year ago, representing an earnings surprise of -15.20% [1] - The company posted revenues of $65.68 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.85%, and up from $51.15 billion year-over-year [2] - Over the last four quarters, Cigna has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Outlook - Cigna shares have increased approximately 9.8% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the coming quarter is $6.89 on revenues of $59.68 billion, and for the current fiscal year, it is $31.57 on revenues of $249.9 billion [7] - The estimate revisions trend for Cigna is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical - HMOs industry, to which Cigna belongs, is currently in the bottom 36% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Revenue Growth - Total revenues for 2024 increased 27% to $247.1 billion compared to 2023, driven by significant growth in Evernorth Health Services[7] - Total revenues for the year ended December 31, 2024, reached $247,121 million, compared to $195,265 million in 2023, marking an increase of 27%[46] - Pharmacy revenues increased to $49,941 million in Q4 2024, up from $36,604 million in Q4 2023, representing a growth of 36%[46] Shareholder Income - Shareholders' net income for 2024 was $3.4 billion, or $12.12 per share, down from $5.2 billion, or $17.39 per share in 2023[5] - Shareholders' net income for Q4 2024 was $1,424 million, up from $1,029 million in Q4 2023, reflecting a growth of 38%[47] Adjusted Income and Operations - Adjusted income from operations for 2024 was $7.7 billion, or $27.33 per share, an increase of 4% from $7.4 billion, or $25.09 per share in 2023[5] - Adjusted income from operations for the year ended December 31, 2024, was $7,741 million, compared to $7,448 million in 2023, indicating an increase of 4%[48] - Cigna Healthcare's adjusted income from operations for 2024 was $4.2 billion, down from $4.5 billion in 2023[23] - Cigna Healthcare's pre-tax adjusted income decreased to $511 million in Q4 2024 from $969 million in Q4 2023, a decline of 47%[46] Customer Growth - Total customer relationships increased by 11% to 182.2 million as of December 31, 2024, compared to 164.4 million in 2023[12] - Total pharmacy customers increased by 20% to 118.3 million, reflecting new sales and expanded relationships[13] - Total medical customers are projected to be around 18.1 million in 2025[30] Medical Care Ratio and Costs - Fourth quarter and full year 2024 adjusted income from operations decreased by 47% and 6%, respectively, primarily due to a higher medical care ratio (MCR) driven by increased stop loss medical costs[5] - Cigna Healthcare's MCR was 87.9% for the fourth quarter and 83.2% for the full year 2024, compared to 82.2% and 81.3% for the same periods in 2023[5] - Cigna Healthcare's net medical costs payable was $4.86 billion as of December 31, 2024, consistent with the previous quarter and the same date in 2023[5] Future Projections - 2025 adjusted income from operations is projected to be at least $7.9 billion, or at least $29.50 per share[7] - For 2025, consolidated adjusted revenues are projected to be at least $252 billion, with adjusted income from operations at least $7.9 billion[30] - The outlook for full year 2025 includes consolidated adjusted income from operations projected at least $29.50 per share[29] - The adjusted effective tax rate for 2025 is expected to be approximately 19.0%[30] - The adjusted SG&A expense ratio for 2025 is projected to be approximately 5.4%[30] Shareholder Returns - The Board of Directors declared an 8% increase in the quarterly dividend to $1.51 per share, effective March 20, 2025[7] - The company repurchased 20.9 million shares for approximately $7.0 billion in 2024, with total share repurchase authorization now at $10.3 billion[10] Challenges - The company anticipates continued challenges in maintaining relationships with key pharmaceutical manufacturers and adapting to industry changes[45]

Core Insights - The Cigna Group reported strong performance in Evernorth Health Services, while Cigna Healthcare faced challenges due to increased stop loss medical costs [1][2][3] Financial Performance - Shareholders' net income for Q4 2024 was $1.4 billion, or $5.13 per share, up from $1.0 billion, or $3.49 per share in Q4 2023 [2][8] - Adjusted income from operations for Q4 2024 was $1.8 billion, or $6.64 per share, down from $2.0 billion, or $6.79 per share in Q4 2023 [3][8] - Total revenues for 2024 increased by 27% to $247.1 billion, with adjusted income from operations rising to $7.7 billion, or $27.33 per share, compared to $7.4 billion, or $25.09 per share in 2023 [4][7] Segment Performance - Evernorth Health Services saw adjusted revenues increase by 33% in Q4 2024 and 32% for the full year compared to 2023, driven by client wins and specialty volume growth [17][19] - Cigna Healthcare's adjusted revenues for Q4 2024 were $13.3 billion, a slight increase from $13.0 billion in Q4 2023, but adjusted income from operations decreased to $511 million from $969 million [20][39] Customer Relationships - Total customer relationships increased by 11% to 182.2 million as of December 31, 2024, with pharmacy customers rising by 20% to 118.3 million [11][16] - Total medical customers decreased to 19.1 million, primarily due to a reduction in Individual and Family Plans customers [16][19] Shareholder Returns - The Board of Directors declared an 8% increase in the quarterly dividend to $1.51 per share and approved an additional $6.0 billion in share repurchase authorization, totaling $10.3 billion [7][10] 2025 Outlook - The Cigna Group projects adjusted income from operations for 2025 to be at least $7.9 billion, or at least $29.50 per share [7][26] - The anticipated 2025 medical care ratio for Cigna Healthcare is expected to be between 83.2% and 84.2% [26][23]

Core Insights - The Cigna Group reported over $3.4 billion in net income for 2024, including $1.4 billion in the fourth quarter, despite rising medical expenses from patients in its health plans [1][7] - The company is facing challenges similar to other health insurers in controlling costs due to an increase in patient claims, partly driven by pent-up demand from the Covid-19 pandemic [2][3] Financial Performance - Cigna's medical cost ratio (MCR) rose to 87.9% in Q4 2024 from 82.2% in Q4 2023, and for the full year 2024, the MCR was 83.2% compared to 81.3% in 2023 [4] - Total revenues for 2024 increased by 27% to $247.1 billion, primarily due to significant growth in Evernorth Health Services [7] - Net income for Q4 2024 was $1.4 billion, up from $1 billion in the same period last year, while total net income for 2024 was $3.4 billion, down from $5.1 billion in 2023 [7] Strategic Moves - Cigna is divesting its Medicare health benefits businesses and a medical care provider services operation for $3.3 billion to Health Care Service Corp, aiming to exit the government-subsidized health insurance market for seniors [5][6] - The deal includes the acquisition of Cigna's Medicare Advantage plans, supplemental benefits, and Medicare Part D drug benefits, expected to close in Q1 of the current year [6] Growth in Services - Evernorth, which includes the Express Scripts pharmacy benefit management company, saw a 20% increase in total pharmacy customers, reaching 118.3 million by the end of 2024 [8] - Adjusted revenues for the fourth quarter and full year 2024 increased by 47% and 46%, respectively, reflecting client wins and organic growth in pharmacy benefit services [8]