The Cigna Group · NYSE:CI
The Cigna — Q4 2023 Earnings Presentation
16 slides from The Cigna's earnings presentation, Feb 2, 2024
Slide 1: Connecting for a healthier future
Connecting for a healthier future T H E C I G N A G R O U P I N V E S TO R P R E S E N TAT I O N FEBRUARY 2, 2024 © 2024 2023 The Cigna Group
Slide 2: Forward-looking statements
Forward-looking statements CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation, and oral statements made in connection with this presentation, may contain forward-looking statements within the meaning of the Priv
Slide 3: Non-GAAP measures and other key financial information
Non-GAAP measures and other key financial information Throughout this presentation, the term “adjusted earnings” means adjusted income (loss) from operations, and “adjusted earnings per share” or “adjusted EPS” means adjusted income (loss) from operations on a diluted per share basis. Adjusted incom
Slide 4: Connecting for a healthier future
Connecting for a healthier future Purpose and mission Well-positioned growth platforms Long-term framework Quarter and full year results 2024 full year guidance 4 © 2024 2023 The Cigna Group
Slide 5: To improve the health and vitality of those we serve
OUR PURPOSE AND MISSION To improve the health and vitality of those we serve. 5 2023 The Cigna Group © 2024
Slide 6: Two well-positioned growth platforms
Two well-positioned growth platforms Portfolio of health services Suite of health benefits Provides coordinated and point solution health Provides comprehensive medical services and capabilities to health plans, employers, and coordinated solutions to clients government organizations and health care
Slide 7: Our pathways to growth
Our pathways to growth FOUNDATIONAL ACCELERATED CROSS-ENTERPRISE GROWTH GROWTH LEVERAGE Scaled businesses contributing High-growth businesses A focus on working together steady, predictable growth in very attractive markets to create even greater value 7 2023 The Cigna Group © 2024
Slide 8: Expected cash flow generation and capital deployment framework
Expected cash flow generation and capital deployment framework ~$10B ~40% long-term target debt-to-capitalization ratio capital expenditures and surplus ~$50B to fund growth 2022–2026 cash flow from operations ~$40B STRATEGIC M&A ~20% dividend Strategically aligned ~10% repay debt Financially attrac
Slide 9: Strong long-term shareholder value
Strong 6 – 8% long-term targeted average annual adjusted earnings growth long-term long-term targeted average shareholder + 4 – 5% annual contribution from accretive capital deployment value = 10 – 13% long-term targeted average annual adjusted EPS growth PLUS AN ATTRACTIVE DIVIDEND Dividends are su
Slide 10: 4Q23 Results
4Q23 Results EPS Revenue and medical customers Key ratios Adjusted EPS* $6.79 Total revenues $51.1B Medical care ratio 82.2% Total medical customers 19.8M Adjusted SG&A expense ratio 7.4% Medical customer Adjusted income from operations YTD growth 1.8M Debt-to-capitalization ratio 40.1% Enterprise,
Slide 11: FY23 Results
FY23 Results EPS Revenue and medical customers Key ratios Adjusted EPS* $25.09 Total revenues $195.3B Medical care ratio 81.3% Total medical customers 19.8M Adjusted SG&A expense ratio 7.3% Medical customer Adjusted income from operations YTD growth 1.8M Debt-to-capitalization ratio 40.1% Enterprise
Slide 12: 2024 Full year guidance
OPTION 2 2024 Full year guidance EPS Revenue and medical customers Key ratios At least 81.7% - Adjusted EPS At least $28.25 Adjusted revenues Medical care ratio $235.0B 82.7 % Total medical customers ~19.3M Adjusted SG&A expense ratio ~6.1% 20.5% - Adjusted income from operations Adjusted effective
Slide 13: Appendix
Appendix 13 © 2024 2023 The Cigna Group
Slide 14: Definitions of key financial and business terms
Definitions of key financial and business terms Medical care ratio represents medical costs as a percentage of premiums for all Cigna Healthcare risk products provided through guaranteed cost or experience-rated funding arrangements. SG&A expense ratio for fourth quarter 2023 on a GAAP basis represe
Slide 15: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures Shareholders’ net income and diluted earnings per share Three Months Ended December 31, 2023 Dollars in millions Diluted earnings per share Pre-Tax After-Tax Pre-Tax After-Tax Shareholders’ net income $1,029 $3.49 Adjustments to reconcile to adju
Slide 16: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures Shareholders’ net income and diluted earnings per share Year Ended December 31, 2023 Dollars in millions Diluted earnings per share Pre-Tax After-Tax Pre-Tax After-Tax Shareholders’ net income $5,164 $17.39 Adjustments to reconcile to adjusted in