Cigna Group Reports Strong 2024 Financial Results, Sets 2025 Outlook, and Announces Dividend Increase
Global health company The Cigna Group (NYSE: CI) has released its financial results for the fourth quarter and full year 2024, demonstrating continued strength in Evernorth Health Services despite higher stop loss medical costs affecting Cigna Healthcare. The company also outlined its 2025 outlook and announced an increase in its quarterly dividend.
Financial Performance Overviw
Cigna reported total revenues of $65.6 billion for the fourth quarter of 2024, a significant 28% increase from the $51.1 billion reported in the fourth quarter of 2023. For the full year, total revenues reached $247.1 billion, marking a 27% increase from $195.3 billion in 2023. This growth was driven primarily by Evernorth Health Services, which saw substantial client expansion and volume growth, particularly within Specialty and Care Services.
Earnings Summary
Fourth Quarter:
- Shareholders’ net income for Q4 2024 was $1.4 billion ($5.13 per share), an increase from $1.0 billion ($3.49 per share) in Q4 2023.
- Adjusted income from operations1 was $1.8 billion ($6.64 per share), down from $2.0 billion ($6.79 per share) in the previous year, due to increased stop loss medical costs in Cigna Healthcare.
Full Year:
- Shareholders’ net income for 2024 was $3.4 billion ($12.12 per share), including a non-cash after-tax investment loss of $2.7 billion ($9.53 per share) related to VillageMD equity securities impairment. This compares with $5.2 billion ($17.39 per share) in 2023.
- Adjusted income from operations1 for 2024 was $7.7 billion ($27.33 per share), up from $7.4 billion ($25.09 per share) in 2023, driven by Evernorth Health Services’ strong performance.
Segment Performance
Evernorth Health Services
Evernorth, which includes Pharmacy Benefit Services and Specialty and Care Services, delivered strong results in Q4 and full-year 2024:
- Fourth Quarter Adjusted Revenues: $53.7 billion, up 33% from Q4 2023.
- Full Year Adjusted Revenues: $202.2 billion, a 32% increase from 2023.
- Fourth Quarter Adjusted Income from Operations: $2.1 billion, up 14% year-over-year.
- Full Year Adjusted Income from Operations: $7.0 billion, a 9% increase from 2023.
Cigna Healthcare
The Cigna Healthcare segment, which provides U.S. and international health plans, saw mixed performance:
- Fourth Quarter Adjusted Revenues: $13.3 billion, up 3% year-over-year.
- Full Year Adjusted Revenues: $52.9 billion, a 3% increase from 2023.
- Fourth Quarter Adjusted Income from Operations: $511 million, a 47% decline from Q4 2023.
- Full Year Adjusted Income from Operations: $4.2 billion, down 6% from 2023.
- The Medical Care Ratio (MCR) rose to 87.9% in Q4 2024 from 82.2% in Q4 2023 due to higher stop loss medical costs.
Share Repurchase and Dividend Increase
Cigna repurchased 20.9 million shares of common stock in 2024, amounting to approximately $7.0 billion. The Board of Directors has approved an additional $6.0 billion in share repurchase authorization, increasing total share repurchase authority to $10.3 billion as of December 31, 2024.
Additionally, the Board declared a quarterly cash dividend of $1.51 per share, an 8% increase from the previous dividend of $1.40 per share. The dividend is payable on March 20, 2025, to shareholders of record as of March 5, 2025.
Customer Growth
Cigna Group continues to expand its customer base, reaching 182.2 million total customer relationships by the end of 2024, an 11% increase from 164.4 million in 2023.
- Pharmacy Customers: Increased by 20% to 118.3 million.
- Total Medical Customers: Declined slightly to 19.1 million due to targeted pricing adjustments in certain geographies.
2025 Outlook
Cigna projects continued strong performance in 2025, setting ambitious financial goals:
- Total Adjusted Revenues: At least $252 billion.
- Adjusted Income from Operations: At least $7.9 billion.
- Adjusted Income from Operations per Share: At least $29.50.
- Cash Flow from Operations: Approximately $10 billion.
- Capital Expenditures: Approximately $1.4 billion.
- Shareholder Dividends: Around $1.6 billion.
For Evernorth, the company anticipates pre-tax adjusted income from operations of at least $7.2 billion. For Cigna Healthcare, the company expects at least $4.1 billion in pre-tax adjusted income from operations, with a projected medical care ratio between 83.2% and 84.2%.
About The Cigna Group
The Cigna Group (NYSE: CI) is a global health company committed to creating a better future built on the vitality of every individual and every community. We relentlessly challenge ourselves to partner and innovate solutions for better health. The Cigna Group includes products and services marketed under Evernorth Health Services, Cigna Healthcare, or its subsidiaries. The Cigna Group maintains sales capabilities in more than 30 markets and jurisdictions, and has approximately 182 million customer relationships around the world. Learn more at thecignagroup.comThis link will open in a new tab..
