The Cigna Group (CI) Q4 2024 earnings summary

Executive summary

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

• Evernorth Health Services contributed approximately 60% of earnings, Cigna Healthcare 40%.

• Adjusted income from operations for 2024 was $7.7 billion ($27.33 per share), up 4% from 2023.

• Board increased quarterly dividend by 8% to $1.51 per share and expanded 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.

Financial highlights

• Q4 2024 total revenues increased 28% year-over-year to $65.7 billion; full-year revenues were $247.1 billion.

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

• Adjusted income from operations for Q4 2024 was $1.8 billion, down 8% year-over-year, mainly due to higher stop-loss medical costs.

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

• Full-year cash flow from operations reached $10.4 billion, down 12% from FY23.

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; adjusted SG&A expense ratio ~5.4%.

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

• Outlook assumes Medicare business divestiture closes in Q1 2025.