We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Cigna Group | NYSE:CI | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.91 | 0.27% | 342.41 | 344.38 | 339.445 | 342.46 | 1,338,993 | 01:00:00 |
Cigna Corporation (NYSE: CI) today reported second quarter 2017 results with strong performance across the company’s Global Health Care, Global Supplemental Benefits and Group Disability & Life segments.
“Our strong second quarter results and significant growth across our diversified portfolio of businesses demonstrate the focused execution of our strategy,” said David M. Cordani, President and Chief Executive Officer. “We continue to drive differentiated value for our customers, clients and partners, and innovate in a rapidly changing and dynamic environment.”
Total revenues in the quarter were $10.3 billion, an increase of 4% over second quarter 2016, driven by continued growth in Cigna's targeted customer segments.
For the second quarter of 2017, shareholders’ net income was $813 million, or $3.15 per share, compared with $510 million, or $1.97 per share, for the second quarter of 2016.
Cigna's adjusted income from operations1 for the second quarter of 2017 was $750 million, or $2.91 per share, compared with $515 million, or $1.98 per share, for the second quarter of 2016. This reflects significantly increased earnings contributions from each of our business segments.
Reconciliations of shareholders’ net income to adjusted income from operations1 are provided on the following page, and on Exhibit 2 of this earnings release.
CONSOLIDATED HIGHLIGHTS
The following table includes highlights of results and reconciliations of consolidated operating revenues5 to total revenues and adjusted income from operations1 to shareholders’ net income:
Consolidated Financial Results (dollars in millions, customers in thousands): Six Months Three Months Ended Ended June 30, March 31, June 30, 2017 2016 2017 2017 Total Revenues $ 10,318 $ 9,960 $ 10,385 $ 20,703 Net Realized Investment Gains (51) (67) (46) (97) Consolidated Operating Revenues5 $ 10,267 $ 9,893 $ 10,339 $ 20,606 Consolidated Earnings, net of taxes Shareholders’ Net Income $ 813 $ 510 $ 598 $ 1,411 Net Realized Investment Gains (34) (44) (31) (65) Amortization of Other Acquired Intangible Assets 18 23 20 38 Special Items1 (47) 26 132 85 Adjusted Income from Operations1 $ 750 $ 515 $ 719 $ 1,469 Shareholders’ Net Income, per share $ 3.15 $ 1.97 $ 2.30 $ 5.45 Adjusted Income from Operations1, per share $ 2.91 $ 1.98 $ 2.77 $ 5.67HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 2 for a reconciliation of adjusted income (loss) from operations1 to shareholders’ net income.
Global Health Care
This segment includes Cigna’s Commercial and Government businesses that deliver medical and specialty health care products and services to domestic and multi-national clients and customers using guaranteed cost, retrospectively experience-rated and administrative services only (“ASO”) funding arrangements. Specialty health care includes behavioral, dental, disease and medical management, stop loss and pharmacy-related products and services.
Financial Results (dollars in millions, customers in thousands): Six Months Three Months Ended Ended June 30, March 31, June 30, 2017 2016 2017 2017 Premiums and Fees $ 7,179 $ 6,943 $ 7,339 $ 14,518 Adjusted Income from Operations1 $ 591 $ 486 $ 610 $ 1,201 Adjusted Margin, After-Tax6 7.3% 6.2% 7.4% 7.4% As of the Periods Ended June 30, March 31, December 31,Customers:
2017 2016 2017 2016 Commercial 15,163 14,543 15,232 14,631 Government 491 598 502 566 Medical2 15,654 15,141 15,734 15,197 Behavioral Care7 26,014 25,312 26,006 25,790 Dental 15,760 14,880 15,788 14,981 Pharmacy 8,902 8,302 8,910 8,461 Medicare Part D 823 1,037 853 972Global Supplemental Benefits
This segment includes Cigna’s global individual supplemental health, life and accident insurance business, primarily in Asia, and Medicare supplement coverage in the United States.
Financial Results (dollars in millions, policies in thousands):
Six Months Three Months Ended Ended June 30, March 31, June 30, 2017 2016 2017 2017 Premiums and Fees10 $ 914 $ 800 $ 869 $ 1,783 Adjusted Income from Operations1 $ 105 $ 83 $ 74 $ 179 Adjusted Margin, After-Tax6 11.0% 9.9% 8.1% 9.6% As of the Periods Ended June 30, March 31, December 31, 2017 2016 2017 2016 Policies10 13,058 11,965 12,611 12,151Group Disability and Life
This segment includes Cigna’s group disability, life and accident insurance operations.
Financial Results (dollars in millions):
Six Months Three Months Ended Ended June 30, March 31, June 30, 2017 2016 2017 2017 Premiums and Fees $ 1,022 $ 1,012 $ 1,031 $ 2,053 Adjusted Income (Loss) from Operations1 $ 83 $ (12) $ 68 $ 151 Adjusted Margin, After-Tax6 7.5% (1.1%) 6.1% 6.8%Corporate & Other Operations
Adjusted loss from operations1 for Cigna's remaining operations is presented below:
Financial Results (dollars in millions):
Six Months Three Months Ended Ended June 30, March 31, June 30, 2017 2016 2017 2017 Corporate & Other Operations $ (29) $ (42) $ (33) $ (62)2017 OUTLOOK
Cigna's outlook for full year 2017 consolidated adjusted income from operations1,3 is in the range of $2.50 billion to $2.58 billion, or $9.75 to $10.05 per share. Cigna’s outlook excludes the impact of additional prior year reserve development and potential effects of any future capital deployment.4
(dollars in millions, except where noted and per share amounts)
Projection for Full-Year Ending December 31, 2017 Adjusted Income (Loss) from Operations1,3 Global Health Care $ 2,100 to 2,140 Global Supplemental Benefits $ 310 to 330 Group Disability and Life $ 260 to 280 Ongoing Businesses $ 2,670 to 2,750 Corporate & Other Operations $ (170) Consolidated Adjusted Income from Operations1,3 $ 2,500 to 2,580 Consolidated Adjusted Income from Operations, per share1,3,4 $ 9.75 to 10.052017 Operating Metrics and Ratios Outlook
Total Revenue Growth
3% to 4%
Full Year Total Commercial Medical Care Ratio8 80.5% to 81.5%Full Year Total Government Medical Care Ratio8
84.5% to 85.5%Full Year Global Health Care Operating Expense Ratio8
20.5% to 21.5%Global Medical Customer Growth2
500,000 to 600,000 customers
The foregoing statements represent the Company’s current estimates of Cigna's 2017 consolidated and segment adjusted income from operations1,3 and other key metrics as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the Cautionary Note Regarding Forward-Looking Statements included in this release. Management does not assume any obligation to update these estimates.
This quarterly earnings release and the Quarterly Financial Supplement are available on Cigna’s website in the Investor Relations section (http://www.cigna.com/aboutcigna/investors). Management will be hosting a conference call to review second quarter 2017 results and discuss full year 2017 outlook beginning today at 8:00 a.m. EDT. A link to the conference call is available in the Investor Relations section of Cigna's website located at http://www.cigna.com/cignadotcom/aboutcigna/investors/events/index.page.
The call-in numbers for the conference call are as follows:
Live Call(888) 324-8113 (Domestic)(517) 308-9070 (International)Passcode: 8042017
Replay(800) 839-1117 (Domestic)(203) 369-3355 (International)
It is strongly suggested you dial in to the conference call by 7:45 a.m. EDT.
Notes:
1.
Adjusted income (loss) from operations is defined as shareholders’ net income (loss) excluding the following after-tax adjustments: net realized investment results, net amortization of other acquired intangible assets and special items. Special items are identified in Exhibit 2 of this earnings release.
Adjusted income (loss) from operations is a measure of profitability used by Cigna’s management because it presents the underlying results of operations of Cigna’s businesses and permits analysis of trends in underlying revenue, expenses and shareholders’ net income. This consolidated measure is not determined in accordance with accounting principles generally accepted in the United States (GAAP) and should not be viewed as a substitute for the most directly comparable GAAP measure, shareholders’ net income. See Exhibits 1 and 2 for a reconciliation of adjusted income from operations to shareholders’ net income.
2.
Global medical customers include individuals who meet any one of the following criteria: are covered under a medical insurance policy, managed care arrangement, or service agreement issued by Cigna; have access to Cigna's provider network for covered services under their medical plan; or have medical claims and services that are administered by Cigna.
3.
Management is not able to provide a reconciliation to shareholders’ net income (loss) on a forward-looking basis because we are unable to predict, without unreasonable effort, certain components thereof including (i) future net realized investment results and (ii) future special items. These items are inherently uncertain and depend on various factors, many of which are beyond our control. As such, any associated estimate and its impact on shareholders’ net income could vary materially.
4.
The Company’s outlook excludes the potential effects of any share repurchases or business combinations that may occur after the date of this earnings release.
5.
The measure “consolidated operating revenues” is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measure, “total revenues.” We define consolidated operating revenues as total revenues excluding realized investment results. We exclude realized investment results from this measure because our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment. As a result, gains or losses created in this process may not be indicative of past or future underlying performance of the business. See Exhibit 1 for a reconciliation of consolidated operating revenues to total revenues.
6.
Adjusted margin, after-tax, is calculated by dividing adjusted income (loss) from operations by operating revenues for each segment.
7.
Prior period behavioral care customers have been revised to conform to current presentation.
8.
Operating ratios are defined as follows:
•
Total Commercial medical care ratio represents medical costs as a percentage of premiums for all commercial risk products, including medical, pharmacy, dental, stop loss and behavioral products provided through guaranteed cost or experience-rated funding arrangements in both the United States and internationally.
•
Total Government medical care ratio represents medical costs as a percentage of premiums for Medicare Advantage, Medicare Part D, and Medicaid products.
•
Global Health Care operating expense ratio represents operating expenses excluding acquisition related amortization expense as a percentage of operating revenue in the Global Health Care segment.
9.
Global Health Care medical costs payable are presented net of reinsurance and other recoverables. The gross Global Health Care medical costs payable balance was $2.85 billion as of June 30, 2017 and $2.53 billion as of December 31, 2016.
10.
Cigna owns a 50% noncontrolling interest in its China joint venture. Cigna's 50% share of the joint venture’s earnings is reported in Other Revenues using the equity method of accounting under GAAP. As such, the premiums and fees and policy counts for the Global Supplemental Benefits segment do not include the China joint venture.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release, and oral statements made with respect to information contained in 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 Cigna'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 adjusted income (loss) from operations outlook for 2017, on both a consolidated and segment basis; projected total revenue growth and global medical customer growth, each over year end 2016; projected growth beyond 2017; projected medical care and operating expense ratios and medical cost trends; future financial or operating performance, including our ability to deliver personalized and innovative solutions for our customers and clients; future growth, business strategy, strategic or operational initiatives; economic, regulatory or competitive environments, particularly with respect to the pace and extent of change in these areas; financing or capital deployment plans and amounts available for future deployment; our prospects for growth in the coming years; and other statements regarding Cigna's future beliefs, expectations, plans, intentions, financial condition or performance. You may identify forward-looking statements by the use of words such as “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “may,” “should,” “will” or other words or expressions of similar meaning, although not all forward-looking statements contain such terms.
Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Such risks and uncertainties include, but are not limited to: our ability to achieve our financial, strategic and operational plans or initiatives; our ability to predict and manage medical costs and price effectively and develop and maintain good relationships with physicians, hospitals and other health care providers; the impact of modifications to our operations and processes, including those in our disability business; our ability to identify potential strategic acquisitions or transactions and realize the expected benefits of such transactions; the substantial level of government regulation over our business and the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of litigation, regulatory audits, investigations, actions and/or guaranty fund assessments; uncertainties surrounding participation in government-sponsored programs such as Medicare; the effectiveness and security of our information technology and other business systems; unfavorable industry, economic or political conditions including foreign currency movements; acts of war, terrorism, natural disasters or pandemics; uncertainty as to the outcome of the litigation between Cigna and Anthem, Inc. with respect to the termination of the merger agreement, the reverse termination fee and/or contract and non-contract damages for claims each party has filed against the other, including the risk that a court finds that Cigna has not complied with its obligations under the merger agreement, is not entitled to receive the reverse termination fee or is liable for breach of the merger agreement; as well as more specific risks and uncertainties discussed in our most recent report on Form 10-K and subsequent reports on Forms 10-Q and 8-K available on the Investor Relations section of www.cigna.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Cigna undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.
CIGNA CORPORATION COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited) Exhibit 1 (Dollars in millions, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 REVENUES Premiums $ 8,010 $ 7,654 $ 16,113 $ 15,400 Fees 1,124 1,127 2,280 2,260 Net investment income 308 294 611 566 Mail order pharmacy revenues 757 748 1,467 1,445 Other revenues 68 70 135 138 Consolidated operating revenues 10,267 9,893 20,606 19,809 Net realized investment gains (losses) 51 67 97 35 Total revenues $ 10,318 $ 9,960 $ 20,703 $ 19,844 SHAREHOLDERS' NET INCOME (LOSS) Shareholders' net income $ 813 $ 510 $ 1,411 $ 1,029 After-tax adjustments to reconcile to adjusted income from operations: Realized investment (gains) losses (34) (44) (65) (23) Amortization of other acquired intangible assets, net 18 23 38 48 Special items (47) 26 85 62 Adjusted income from operations (1)$
750$
515 $ 1,469 $ 1,116Adjusted income (loss) from operations by segment
Global Health Care $ 591 $ 486 $ 1,201 $ 1,030 Global Supplemental Benefits 105 83 179 150 Group Disability and Life 83 (12) 151 3 Ongoing Operations 779 557 1,531 1,183 Corporate and Other (29) (42) (62) (67) Total adjusted income from operations $ 750 $ 515 $ 1,469 $ 1,116 DILUTED EARNINGS PER SHARE Shareholders' net income $ 3.15 $ 1.97 $ 5.45 $ 3.97 After-tax adjustments to reconcile to adjusted income from operations: Realized investment (gains) losses (0.13) (0.18) (0.25) (0.09) Amortization of other acquired intangible assets, net 0.07 0.09 0.15 0.18 Special items (0.18) 0.10 0.32 0.24 Adjusted income from operations (1) $ 2.91 $ 1.98 $ 5.67 $ 4.30 Weighted average shares (in thousands) 258,061 259,500 258,913 259,473 Common shares outstanding (in thousands) 252,859 256,558 SHAREHOLDERS' EQUITY at June 30, $ 14,546 $ 13,356 SHAREHOLDERS' EQUITY PER SHARE at June 30, $ 57.53 $ 52.06 (1) Adjusted income (loss) from operations is defined as shareholders' net income (loss) excluding the following after-tax adjustments: realized investment results; net amortization of other acquired intangible assets; and special items (identified and quantified on Exhibit 2). CIGNA CORPORATION RECONCILIATION OF SHAREHOLDERS' NET INCOME (LOSS) TO ADJUSTED INCOME (LOSS) FROM OPERATIONS Exhibit 2 (Dollars in millions, except per share amounts) Diluted Global Group Corporate Earnings Global Supplemental Disability and Per Share Consolidated Health Care Benefits and Life Other Three Months Ended, 2Q17 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 2Q16 1Q17 2Q17 2Q16 1Q17 Shareholders' net income (loss) $ 3.15 $ 1.97 $ 2.30 $ 813 $ 510 $ 598 $ 599 $ 487 $ 544 $ 101 $ 78 $ 77 $ 97 $ 3 $ 59 $ 16 $ (58 ) $ (82 ) After-tax adjustments to reconcile to adjusted income (loss) from operations: Realized investment (gains) losses (0.13 ) (0.18 ) (0.12 ) (34 ) (44 ) (31 ) (22 ) (19 ) (16 ) - - (9 ) (14 ) (15 ) (6 ) 2 (10 ) - Amortization of other acquired intangible assets, net 0.07 0.09 0.08 18 23 20 14 18 14 4 5 6 - - - - - - Special items:Long-term care guaranty fund assessment
- -0.32
- -83
- -68
- - - - -15
- - - Merger-related transaction costs (1) (0.18 ) 0.10 0.19 (47 ) 26 49 - - - - - - - - - (47 ) 26 49 Adjusted income (loss) from operations $ 2.91 $ 1.98 $ 2.77 $ 750 $ 515 $ 719 $ 591 $ 486 $ 610 $ 105 $ 83 $ 74 $ 83 $ (12 ) $ 68 $ (29 ) $ (42 ) $ (33 ) Weighted average shares (in thousands) 258,061 259,500 259,774 Special items, pre-tax:Long-term care guaranty fund assessment
$ - $ - $ 129 $ - $ - $ 106 $ - $ - $ - $ - $ - $ 23 $ - $ - $ - Merger-related transaction costs (1) 16 34 63 - - - - - - - - - 16 34 63 Total $ 16 $ 34 $ 192 $ - $ - $ 106 $ - $ - $ - $ - $ - $ 23 $ 16 $ 34 $ 63 (Dollars in millions, except per share amounts) Diluted Global Group Corporate Earnings Global Supplemental Disability and Six Months Ended June 30, Per Share Consolidated Health Care Benefits and Life Other 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 Shareholders' net income (loss)$
5.45
$
3.97
$
1,411
$
1,029
$
1,143
$
1,001
$
178
$
137
$
156
$
16
$
(66
)
$
(125
)
After-tax adjustments to reconcile to adjusted income (loss) from operations:
Realized investment (gains) losses (0.25 ) (0.09 ) (65 ) (23 ) (38 ) (7 ) (9 ) 1 (20 ) (13 ) 2 (4 ) Amortization of other acquired intangible assets, net 0.15 0.18 38 48 28 36 10 12 - - - - Special items: Long-term care guaranty fund assessment 0.32 - 83 - 68 - - - 15 - - - Merger-related transaction costs (1) - 0.24 2 62 - - - - - - 2 62 Adjusted income (loss) from operations $ 5.67 $ 4.30 $ 1,469 $ 1,116 $ 1,201 $ 1,030 $ 179 $ 150 $ 151 $ 3 $ (62 ) $ (67 ) Weighted average shares (in thousands) 258,913 259,473 Common shares outstanding as of June 30, (in thousands) 252,859 256,558 Special items, pre-tax: Long-term care guaranty fund assessment $ 129 $ - $ 106 $ - $ - $ - $ 23 $ - $ - $ - Merger-related transaction costs (1) 79 74 - -
-
- - - 79 74 Total $ 208 $ 74 $ 106 $ - $ - $ - $ 23 $ - $ 79 $ 74(1)
For additional information related to a one-time tax benefit of approximately $60 million recorded in the second quarter of 2017, please refer to Note 3 to the Consolidated Financial Statements in Cigna's Form 10-Q for the period ended June 30, 2017 expected to be filed on August 4, 2017.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170804005123/en/
Cigna CorporationInvestor RelationsWill McDowell, 215-761-4198orMedia RelationsMatt Asensio, 860-226-2599
1 Year Cigna Chart |
1 Month Cigna Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions