The Cigna Group · NYSE:CI
The Cigna — Q2 2024 Earnings Presentation
19 slides from The Cigna's earnings presentation, Aug 1, 2024
Slide 1: The Cigna Group Investor Presentation
The Cigna Group Investor Presentation August 1, 2024 © 2024 The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 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 press release, and oral statements made in connection with this release, may contain forward-looking statements within the meaning of the Private
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: Our purpose and mission
To improve the Our purpose health and vitality and mission of those we serve 4 © 2024 The Cigna Group
Slide 5: Two high-performing growth platforms
Two high-performing growth platforms ~60% O F E A R N I N G S ~40% O F E A R N I N G S Cross-enterprise leverage is mutually beneficial. 5 © 2024 The Cigna Group
Slide 6: A decade of growth exceeding expectations
A decade of growth exceeding expectations 13%+ $25.09 annual Adj. EPS growth Adj. EPS $7.29 Adj. EPS 2013 2023 6 © 2024 The Cigna Group
Slide 7: Long-term average annual adjusted earnings growth algorithm
Long-term average annual adjusted earnings growth algorithm S P E C I A LT Y A N D C A R E S E R V I C E S ~30% OF EARNI NGS C I G N A H E A LT H C A RE 8–12% GROWTH ~40% OF EARNI NGS 7–10% GROWTH P H A R M A C Y B E N E F IT S E R V I C E S 6–9% GROWTH ~30% OF EARNI NGS 2–4% GROWTH 7 © 2024 The Cig
Slide 8: Capital deployment: ~$60B
~20–25% CAPITAL E X PE N DIT URE S AN D SUR PL US TO F UN D G R OW T H Capital deployment: ~$60B ~15% 4–5% cash flow over the DIVIDE N D EPS growth next five years ~60–65% ST R AT E G IC M& A, SH AR E R E PUR C HASE , R E PAY DE BT 8 © 2024 The Cigna Group
Slide 9: Strong long-term shareholder value
Strong long-term shareholder value LONG-TERM AVERAGE LONG-TERM AVERAGE ANNUAL ANNUAL CONTRIBUTI ON ADJUSTED INCOME GROWTH 6–9% + FROM CAPITAL DEPLOYMENT 4–5% ENTERPRI SE 10–14% long-term average annual adjusted EPS growth outlook PLUS AN ATTRACTI VE DIVIDEND 1–2% 9 © 2024 The Cigna Group
Slide 10: 2Q24 results – Consolidated
2Q24 results – Consolidated (Dollars in millions, except where noted and per-share amounts) 2Q24 2Q23 Change Adjusted revenues Adjusted revenues (1) $60,470 $48,616 24% Adjusted income (loss) from operations Evernorth Health Services, pre-tax $1,619 $1,516 7% Cigna Healthcare, pre-tax $1,204 $1,172
Slide 11: 2Q24 results – Evernorth Health Services
2Q24 results – Evernorth Health Services (Dollars in millions, except where noted) 2Q24 2Q23 Change Adjusted revenues Pharmacy Benefit Services $26,612 $18,819 41% Specialty and Care Services $22,871 $19,324 18% Net investment income $65 $62 5% Total adjusted revenues $49,548 $38,205 30% Adjusted in
Slide 12: 2Q24 results – Cigna Healthcare
2Q24 results – Cigna Healthcare (Dollars in millions, except where noted) 2Q24 2Q23 Change Adjusted revenues Total adjusted revenues $13,143 $12,714 3% Adjusted income from operations, pre-tax Total adjusted income from operations, pre-tax $1,204 $1,172 3% Key ratios Total adjusted margin, pre-tax 9
Slide 13: FY2024 guidance
FY2024 guidance (Dollars in millions, except where noted and per-share amounts) 2024 Guidance (Aug 2024) Adjusted revenue Adjusted revenues at least $235,000 Adjusted income from operations Consolidated, after-tax at least $8,065 Evernorth Health Services, pre-tax at least $7,000 Cigna Healthcare, p
Slide 14: Appendix
Appendix © 2024 The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 15: 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 on a GAAP basis for the second quarter 2024 rep
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 Three Months Ended June 30, 2024 Dollars in millions Diluted earnings per share Pre-Tax After-Tax Pre-Tax After-Tax Shareholders’ net income $1,548 $5.45 Adjustments to reconcile to adjusted
Slide 17: 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 June 30, 2023 Dollars in millions Diluted earnings per share Pre-Tax After-Tax Pre-Tax After-Tax Shareholders’ net income $1,460 $4.92 Adjustments to reconcile to adjusted
Slide 18: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures Adjusted Revenues Three Months Ended June 30 2024 2023 Total Revenues $60,523 $48,586 Net realized investment results from certain equity method investments ($53) $30 Adjusted Revenues $60,470 $48,616 Three Months Ended June 30 2024 2023 Adjusted
Slide 19: 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 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Shareholders’ net income $17.39 $21.41 $15.75 $22.96 $13.44 $10.54 $8.77 $7.19 $8.04 $7.83 $5.18 Adjustments to