The Cigna Group (CI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $60.5 billion, up 25% year-over-year, with strong contributions from Evernorth Health Services and Cigna Healthcare.

• Adjusted EPS for Q2 was $6.72, up 10% year-over-year; adjusted income from operations rose 5% to $1.91 billion.

• Shareholders' net income increased 6% to $1.55 billion, with diluted EPS at $5.45.

• Evernorth and Cigna Healthcare contributed approximately 60% and 40% of earnings, respectively.

• Announced sale of Medicare Advantage and related businesses for $3.7 billion, expected to close in Q1 2025.

Financial highlights

• Q2 2024 adjusted revenues: $60.5 billion (+25% year-over-year); six months: $117.8 billion (+24%).

• Evernorth Health Services Q2 adjusted revenues: $49.5 billion (+30%); Cigna Healthcare: $13.1 billion (+3%).

• Adjusted income from operations: $1.91 billion (+5%); shareholders' net income: $1.55 billion (+6%).

• Adjusted SG&A expense ratio improved to 6.0%-6.1%.

• Debt-to-capitalization ratio was 43.6% at June 30, 2024.

Outlook and guidance

• Full-year 2024 adjusted EPS guidance reaffirmed at at least $28.40; adjusted revenues projected at least $235 billion.

• Consolidated adjusted income from operations expected to be at least $8.065 billion.

• Evernorth full-year pre-tax adjusted earnings expected at least $7 billion; Cigna Healthcare at least $4.775 billion.

• Medical care ratio for 2024 guided to 81.7%-82.5%; total medical customers ~19.3 million.

• Cash flow from operations forecasted at least $11 billion.