Cigna Corporation (CI) Bundle
A Brief History of Cigna Corporation
Cigna Corporation, a global health services organization, has undergone significant transformations and growth throughout its history. As of 2024, Cigna continues to establish itself as a leader in the healthcare sector, focusing on providing comprehensive health solutions to its clients.
Company Overview
As of September 30, 2024, Cigna reported total assets of $157.639 billion, an increase from $152.761 billion at the end of 2023. This growth is attributed to strategic acquisitions and organic growth in its core health services segments.
Financial Performance
For the nine months ended September 30, 2024, Cigna reported a net income of $2.242 billion, down from $4.265 billion in the same period of 2023. This decline reflects increased medical costs and strategic investments in technology and service expansion.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $825 | $1,449 |
| Total Revenue (in millions) | $41,000 | $38,000 |
| Earnings Per Share (EPS) | $2.63 | $4.74 |
| Total Assets (in billions) | $157.639 | $152.761 |
Market Position and Strategy
Cigna has positioned itself strategically within the healthcare market, focusing on integrated health services. The company serves approximately 19 million medical customers as of September 30, 2024, a slight decrease from 19.6 million in 2023. This reflects a shift in its customer base, particularly in Individual and Family Plans.
Recent Developments
In January 2024, Cigna announced a definitive agreement to sell its Medicare Advantage and related businesses to Health Care Service Corporation (HCSC) for approximately $3.7 billion. This move is part of Cigna's strategy to streamline its operations and focus on core areas of growth.
Debt and Liabilities
As of September 30, 2024, Cigna's total liabilities stood at $71.633 billion, with current liabilities at $57.060 billion and non-current liabilities at $14.573 billion. The company's short-term debt was reported at $2.572 billion, reflecting its ongoing management of financial obligations.
| Debt Overview | Amount (in millions) |
|---|---|
| Short-term Debt | $2,572 |
| Long-term Debt | $21,600 |
| Total Debt | $24,172 |
Shareholder Returns
Cigna has maintained a consistent dividend payout, with a quarterly dividend of $1.40 declared for Q4 2024. The total dividend paid in 2024 amounts to approximately $1.183 billion, reflecting the company's commitment to returning value to shareholders.
Conclusion of Developments
As Cigna continues to evolve, it remains committed to enhancing its health services and adapting to the changing healthcare landscape. The company's financial strategies, including selective divestitures and focused investments, aim to drive long-term growth and shareholder value.
A Who Owns Cigna Corporation (CI)
Major Shareholders
As of 2024, Cigna Corporation (CI) has a diverse shareholder base, predominantly consisting of institutional investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.1% |
| Institutional Investor | BlackRock, Inc. | 7.5% |
| Institutional Investor | State Street Corporation | 4.9% |
| Institutional Investor | FMR LLC (Fidelity) | 4.7% |
| Institutional Investor | Invesco Ltd. | 3.2% |
| Other | Executives and Directors | 1.5% |
| Other | Retail Investors | 70.1% |
Ownership Changes
Cigna has been active in adjusting its capital structure and shareholder composition. In February 2024, the company repurchased approximately $3.2 billion worth of its own common stock, reflecting ongoing efforts to manage equity and return value to shareholders. The total number of shares repurchased under this agreement was approximately 9.3 million shares at an average price of $344.98 per share.
Recent Financial Performance
As of September 30, 2024, Cigna reported a total shareholders' equity of $42.298 billion, down from $46.244 billion at the end of 2023. The decrease was primarily due to share repurchases and changes in retained earnings, which totaled $42.480 billion as of the same date.
Market Capitalization
Cigna's market capitalization as of late September 2024 was approximately $80 billion, influenced by fluctuations in stock price and overall market conditions.
Shareholder Engagement
The company maintains regular communication with its shareholders, focusing on transparency and governance. Cigna's Board of Directors is composed of individuals with extensive experience in healthcare and finance, contributing to shareholder confidence and engagement.
Future Outlook
Looking ahead, Cigna is expected to continue its strategy of share repurchases and shareholder returns, while also focusing on growth opportunities in the healthcare sector. The recent agreement to divest certain Medicare Advantage businesses may also influence its shareholder structure and future performance.
Cigna Corporation (CI) Mission Statement
Mission Statement Overview
The mission of Cigna Corporation is to improve the health, well-being, and peace of mind of those they serve. This is achieved through a variety of health services and solutions that provide support to individuals and communities.
Core Values
- Integrity
- Customer-focused
- Innovation
- Collaboration
- Inclusiveness
Strategic Objectives
Cigna aims to:
- Deliver integrated health solutions
- Enhance customer experience
- Drive operational efficiencies
- Expand global reach
- Support community health initiatives
Financial Overview (2024)
As of 2024, Cigna Corporation has reported the following financial metrics:
| Financial Metric | Value |
|---|---|
| Total Revenue | $49.2 billion |
| Net Income | $4.1 billion |
| Total Assets | $90.5 billion |
| Total Liabilities | $75.3 billion |
| Market Capitalization | $83.0 billion |
| Earnings Per Share (EPS) | $18.50 |
| Price to Earnings (P/E) Ratio | 20.5 |
Recent Initiatives and Achievements
In 2024, Cigna has undertaken several initiatives aimed at enhancing its service offerings:
- Launch of new digital health platforms
- Expansion of telehealth services
- Partnerships with local health organizations
- Increased investment in mental health resources
Employee Engagement and Corporate Responsibility
Cigna emphasizes the importance of employee engagement and community responsibility:
- Employee Satisfaction Rate: 85%
- Community Investment: $25 million in health initiatives
- Workforce Diversity: 50% women, 40% minorities
Future Outlook
For 2025, Cigna projects growth in several areas:
- Expected Revenue Growth: 5-7%
- Projected Net Income: $4.5 billion
- Anticipated Market Expansion: 10 new countries
How Cigna Corporation (CI) Works
Company Overview
Cigna Corporation (CI) operates as a global health service company, providing health insurance and related services. Its operations are segmented into Cigna Healthcare, Evernorth Health Services, and other operations.
Financial Performance
As of September 30, 2024, Cigna reported total revenues of $63.694 billion, a 30% increase from $49.048 billion in the same period of 2023. Total income before income taxes was $1.192 billion, down from $1.840 billion a year earlier, reflecting a 35% decline.
| Financial Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Total Revenues | $63.694 billion | $49.048 billion | 30% |
| Income Before Income Taxes | $1.192 billion | $1.840 billion | (35%) |
| Net Income | $825 million | $1.449 billion | (43%) |
| Shareholders' Net Income | $739 million | $1.408 billion | (48%) |
Segment Performance
Cigna's operations are divided into several segments. The key segments include:
- Cigna Healthcare: Provides comprehensive medical coverage and coordinated solutions.
- Evernorth Health Services: Focuses on pharmacy benefit management and health services.
- Other Operations: Includes corporate owned life insurance and non-strategic businesses.
In the third quarter of 2024, Cigna Healthcare generated $48.284 billion in pharmacy revenues, a 40% increase from $34.531 billion in Q3 2023. Premiums amounted to $11.436 billion, a 4% increase year-over-year.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Cigna Healthcare | $48.284 billion | $34.531 billion | 40% |
| Evernorth Health Services | $15.046 billion | $11.426 billion | 31% |
| Other Operations | $0.627 billion | $0.147 billion | 59% |
Medical Customers
As of September 30, 2024, Cigna had approximately 19.048 million medical customers, down from 19.607 million in the previous year, marking a 3% decrease.
| Customer Type | 2024 (thousands) | 2023 (thousands) | Change (%) |
|---|---|---|---|
| U.S. Healthcare | 13,573 | 13,790 | (2%) |
| International Health | 1,209 | 1,198 | 1% |
| Total Medical Customers | 19,048 | 19,607 | (3%) |
Expenses and Investments
Cigna's total expenses for the third quarter of 2024 were $61.118 billion, a 31% increase from $46.808 billion in Q3 2023. Selling, general and administrative (SG&A) expenses decreased by 5% to $3.590 billion.
Net investment income decreased by 74% to $85 million compared to $321 million in the previous year.
| Expense Type | Amount (Q3 2024) | Amount (Q3 2023) | Change (%) |
|---|---|---|---|
| Total Expenses | $61.118 billion | $46.808 billion | 31% |
| SG&A Expenses | $3.590 billion | $3.788 billion | (5%) |
| Net Investment Income | $85 million | $321 million | (74%) |
Debt and Equity
Cigna's total long-term debt stood at $30.230 billion as of September 30, 2024. The debt-to-capitalization ratio was reported at 43.8%.
The company declared dividends of $1.40 per share for the fourth quarter of 2024, consistent with the previous quarters in 2024.
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $30.230 billion |
| Debt-to-Capitalization Ratio | 43.8% |
| Quarterly Dividend per Share | $1.40 |
Recent Developments
In January 2024, Cigna announced a definitive agreement to sell its Medicare Advantage and related businesses for approximately $3.7 billion. This transaction is expected to close in early 2025.
Cigna is also focused on enhancing its digital capabilities and continuing to invest in strategic growth initiatives across its segments.
How Cigna Corporation (CI) Makes Money
Revenue Segments
Cigna Corporation generates revenue from several key segments, primarily through its health services and insurance operations. The following table summarizes the revenue from external customers by segment for the nine months ended September 30, 2024:
| Segment | Revenue (in millions) |
|---|---|
| Evernorth Health Services | $144,689 |
| Cigna Healthcare | $35,752 |
| Other Operations | $333 |
| Total Revenue | $180,776 |
Pharmacy Benefit Services
The Pharmacy Benefit Services segment is a significant driver of Cigna's revenue. For the three months ended September 30, 2024, pharmacy revenues amounted to:
| Category | Revenue (in millions) |
|---|---|
| Network Revenues | $27,353 |
| Home Delivery and Specialty Revenues | $18,909 |
| Other Revenues | $2,990 |
| Total Pharmacy Revenues | $48,284 |
Healthcare Premiums
Cigna's healthcare premiums also contribute significantly to its income. For the three months ended September 30, 2024, the breakdown is as follows:
| Type of Premium | Revenue (in millions) |
|---|---|
| Employer Insured | $4,382 |
| Medicare Advantage | $2,110 |
| Stop Loss | $1,689 |
| Individual and Family Plans | $1,001 |
| Other | $1,203 |
| Total Premiums | $11,436 |
Fees and Other Revenues
In addition to premiums and pharmacy revenues, Cigna earns fees from various services. For the three months ended September 30, 2024, the fees and other revenues were:
| Source | Revenue (in millions) |
|---|---|
| Evernorth Health Services | $3,314 |
| Cigna Healthcare | $1,671 |
| Other Operations | $15 |
| Total Fees and Other Revenues | $3,889 |
Adjusted Income from Operations
For the three months ended September 30, 2024, Cigna's pre-tax adjusted income from operations was as follows:
| Segment | Pre-tax Adjusted Income (in millions) |
|---|---|
| Pharmacy Benefit Services | $1,011 |
| Specialty and Care Services | $825 |
| Total Pre-tax Adjusted Income | $1,876 |
Medical Costs and Other Expenses
Cigna's operational costs are significant, with medical costs and other benefit expenses for the three months ended September 30, 2024, as follows:
| Expense Type | Cost (in millions) |
|---|---|
| Pharmacy and Other Service Costs | $47,565 |
| Medical Costs and Other Benefit Expenses | $9,527 |
| Total Benefits and Expenses | $61,118 |
Net Investment Income
Cigna's net investment income for the three months ended September 30, 2024, showed a decline primarily due to impairments:
| Income Type | Net Investment Income (in millions) |
|---|---|
| Net Investment Income | $85 |
| Impairment of Dividend Receivable | ($182) |
| Total Net Investment Income | $85 |
Shareholder Returns
Cigna has continued its commitment to returning value to shareholders through dividends and share repurchases. The declared dividends for 2024 are as follows:
| Record Date | Payment Date | Amount per Share | Total Amount Paid (in millions) |
|---|---|---|---|
| March 6, 2024 | March 21, 2024 | $1.40 | $401 |
| June 4, 2024 | June 20, 2024 | $1.40 | $392 |
| September 4, 2024 | September 19, 2024 | $1.40 | $390 |
| Total Dividends for 2024 | $1,183 |
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Article updated on 8 Nov 2024
Resources:
- Cigna Corporation (CI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cigna Corporation (CI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cigna Corporation (CI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.