The Cigna Group (CI) Q4 2024 earnings summary

Executive summary

• Achieved 27% year-over-year revenue growth in 2024 to $247.1 billion, with adjusted EPS up 9% to $27.33, driven by Evernorth Health Services.

• Adjusted income from operations for 2024 was $7.7 billion, up 4% from 2023, while net income was $3.4 billion, impacted by a $2.7 billion after-tax impairment loss on VillageMD equity.

• Returned $8.6 billion to shareholders via dividends and share repurchases; board increased quarterly dividend by 8% to $1.51 per share and share repurchase authorization to $10.3 billion.

• Sale of Medicare business to HCSC is expected to close in Q1 2025, with proceeds primarily allocated to share repurchases.

• Evernorth segment delivered strong results, especially in specialty and care services, with biosimilar adoption reaching nearly 50% for Humira by year-end.

Financial highlights

• Full-year 2024 consolidated adjusted revenues were $247.1 billion; adjusted after-tax earnings were $7.7 billion.

• Q4 2024 total revenues increased 28% year-over-year to $65.7 billion; adjusted EPS was $6.64, down 2% year-over-year.

• Evernorth Health Services FY24 adjusted revenues grew 32% to $202.2 billion; Cigna Healthcare FY24 adjusted revenues up 3% to $52.9 billion.

• Full-year cash flow from operations reached $10.4 billion, down 12% from 2023.

• SG&A expense ratio for 2024 improved to 6.0% (adjusted 5.9%), reflecting business mix shift and operating efficiency.

Outlook and guidance

• 2025 consolidated adjusted revenues expected to be at least $252 billion; adjusted income from operations at least $7.9 billion, or $29.50 per share.

• Evernorth 2025 adjusted earnings expected to be at least $7.2 billion; Cigna Healthcare at least $4.1 billion.

• Cigna Healthcare MCR projected at 83.2%-84.2% for 2025, reflecting continued stop-loss pressure.

• 2025 cash flow from operations projected at $10 billion; $1.4 billion for capital expenditures and $1.6 billion for dividends.

• Outlook assumes Medicare business divestiture closes in Q1 2025.