[November 02, 2017] |
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Cigna Reports Strong Third Quarter 2017 Results, Raises Outlook
Cigna Corporation (NYSE: CI) today reported third quarter 2017 results
with strong performance across the company's Global Health Care, Global
Supplemental Benefits and Group Disability & Life segments.
"Cigna's third quarter results are driven by consistent, strong
execution of our strategy to provide affordable and personalized
solutions for our customers and clients around the globe," said David M.
Cordani, President and Chief Executive Officer. "As we look ahead to
2018, we expect to drive continued innovation and growth as we deliver
sustained value in a rapidly changing and dynamic environment."
Total revenues in the quarter were $10.4 billion, an increase of 5% over
third quarter 2016, driven by continued growth in Cigna's targeted
customer segments.
For the third quarter of 2017, shareholders' net income was $560
million, or $2.21 per share, compared with $456 million, or $1.76 per
share, for the third quarter of 2016.
Cigna's adjusted income from operations1 for the third
quarter of 2017 was $716 million, or $2.83 per share, compared with $503
million, or $1.94 per share, for the third quarter of 2016. This
reflects significantly increased earnings contributions from each of our
business segments.
Reconciliations of shareholders' net income to adjusted income from
operations1 are provided on the following page, and on
Exhibit 2 of this earnings release.
CONSOLIDATED HIGHLIGHTS
The following table includes highlights of results and reconciliations
of consolidated operating revenues5 to total revenues and
adjusted income from operations1 to shareholders' net income:
Consolidated Financial Results (dollars in millions, customers in
thousands):
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Nine Months
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Three Months Ended
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Ended
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September 30,
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June 30,
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September 30,
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2017
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2016
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2017
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2017
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Total Revenues
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$
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10,382
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$
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9,880
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$
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10,318
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$
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31,085
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Net Realized Investment (Gains)
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(117)
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(75)
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(51)
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(214)
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Consolidated Operating Revenues5
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$
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10,265
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$
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9,805
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$
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10,267
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$
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30,871
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Consolidated Earnings, net of taxes
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Shareholders' Net Income
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$
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560
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$
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456
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$
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813
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$
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1,971
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Net Realized Investment (Gains)
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(75)
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(48)
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(34)
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(140)
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Amortization of Other Acquired Intangible Assets
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16
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24
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18
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54
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Special Items1
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215
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71
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(47)
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300
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Adjusted Income from Operations1
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$
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716
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$
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503
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$
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750
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$
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2,185
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Shareholders' Net Income, per share
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$
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2.21
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$
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1.76
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$
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3.15
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$
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7.67
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Adjusted Income from Operations1, per share
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$
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2.83
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$
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1.94
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$
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2.91
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$
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8.50
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Third quarter 2017 shareholders' net income included special item1
charges of $215 million after-tax, or $0.85 per share, predominantly
associated with the previously disclosed early extinguishment of debt,
compared with special item1 charges in third quarter 2016
of $71 million after-tax, or $0.28 per share, for merger-related
transaction costs and a litigation matter.
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Cash and marketable investments at the parent company were $1.7
billion at September 30, 2017 and $2.8 billion at December 31, 2016.
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Year to date, as of November 1, 2017, the Company repurchased 13.2
million shares of common stock for approximately $2.3 billion.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 2 for a reconciliation of adjusted income (loss) from
operations1 to shareholders' net income.
Global Health Care
This segment includes Cigna's Commercial and Government businesses that
deliver medical and specialty health care products and services to
domestic and multi-national clients and customers using guaranteed cost,
retrospectively experience-rated and administrative services only
("ASO") funding arrangements. Specialty health care includes behavioral,
dental, disease and medical management, stop loss and pharmacy-related
products and services.
Financial Results (dollars in millions, customers in thousands):
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Nine Months
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Three Months Ended
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Ended
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September 30,
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June 30,
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September 30,
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2017
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2016
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2017
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2017
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Premiums and Fees
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$
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7,197
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$
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6,807
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$
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7,179
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$
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21,715
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Adjusted Income from Operations1
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$
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575
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$
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416
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$
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591
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$
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1,776
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Adjusted Margin, After-Tax6
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7.1%
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5.4%
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7.3%
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7.3%
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As of the Periods Ended
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September 30,
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June 30,
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December 31,
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Customers:
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2017
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2016
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2017
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2016
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Commercial
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15,332
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14,594
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15,163
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14,631
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Government
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484
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583
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491
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566
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Medical2
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15,816
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15,177
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15,654
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15,197
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Behavioral Care7
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26,636
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25,643
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26,014
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25,790
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Dental
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15,776
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14,960
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15,760
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14,981
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Pharmacy
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8,959
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8,370
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8,902
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8,461
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Medicare Part D
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812
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999
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823
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972
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Global Health Care results in the third quarter reflect strong
performance led by our Commercial business.
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Third quarter 2017 premiums and fees increased 6% relative to third
quarter 2016, driven by customer growth and specialty contributions in
our Commercial business, partially offset by lower enrollment in our
Government business, as expected.
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The medical customer base2 at the end of the third quarter
2017 totaled 15.8 million, an increase of 619,000 customers year to
date, driven by organic growth across our Commercial market segments.
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Third quarter 2017 adjusted income from operations1 and
adjusted margin, after-tax6 reflect strong medical and
specialty results, continued effective medical cost management and
operating expense discipline.
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Adjusted income from operations1 for third quarter 2017 and
second quarter 2017 included favorable prior year reserve development
on an after-tax basis of $19 million and $36 million, respectively.
Third quarter of 2016 did not have a meaningful amount of net prior
year reserve development. Year-to-date 2017 adjusted income from
operations1 includes favorable prior year reserve
development on an after-tax basis of $116 million.
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The Total Commercial medical care ratio8 ("MCR") of 78.6%
for third quarter 2017 reflects strong performance and effective
medical cost management in both our Employer and Individual books of
business, as well as the impact of the health insurance tax moratorium.
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The Total Government MCR8 of 84.0% for third quarter 2017
reflects solid performance in our Medicare Advantage and Medicare Part
D businesses.
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The third quarter 2017 Global Health Care operating expense ratio8
of 21.1% reflects the impact of the health insurance tax moratorium,
business mix changes and continued effective expense management.
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Global Health Care net medical costs payable9 was
approximately $2.52 billion at September 30, 2017 and $2.26 billion at
December 31, 2016.
Global Supplemental Benefits
This segment includes Cigna's global individual supplemental health,
life and accident insurance business, primarily in Asia, and Medicare
supplement coverage in the United States.
Financial Results (dollars in millions, policies in thousands):
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Nine Months
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Three Months Ended
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Ended
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September 30,
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June 30,
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September 30,
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2017
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2016
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2017
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2017
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Premiums and Fees10
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$
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937
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$
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833
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$
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914
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$
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2,720
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Adjusted Income from Operations1
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$
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109
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$
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81
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$
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105
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$
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288
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Adjusted Margin, After-Tax6
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11.1%
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9.4%
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11.0%
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10.1%
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As of the Periods Ended
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September 30,
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June 30,
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December 31,
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2017
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2016
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2017
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2016
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Policies10
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13,087
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12,069
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13,058
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12,151
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Global Supplemental Benefits results continue to reflect the value
created by affordable and personalized solutions delivered directly to
individual consumers through a diversified set of distribution
channels.
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Third quarter 2017 premiums and fees10 grew 12% over third
quarter 2016, reflecting continued business growth.
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Third quarter 2017 adjusted income from operations1 and
adjusted margin, after-tax6 reflect business growth,
favorable claims experience, particularly in South Korea, and
effective operating expense management.
Group Disability and Life
This segment includes Cigna's group disability, life and accident
insurance operations.
Financial Results (dollars in millions):
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Nine Months
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Three Months Ended
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Ended
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September 30,
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June 30,
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September 30,
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2017
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2016
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2017
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2017
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Premiums and Fees
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$
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1,015
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$
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1,024
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$
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1,022
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$
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3,068
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Adjusted Income (Loss) from Operations1
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$
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73
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$
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53
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$
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83
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$
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224
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Adjusted Margin, After-Tax6
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6.6%
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4.8%
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7.5%
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6.7%
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Group Disability and Life results reflect the value created for our
customers and clients through differentiated solutions that enhance
health, productivity and sense of security.
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Third quarter 2017 adjusted income from operations1 and
adjusted margin, after-tax6 reflect favorable claims
experience in our life business, and disability results consistent
with our expectations.
Corporate & Other Operations
Adjusted loss from operations1 for Cigna's remaining
operations is presented below:
Financial Results (dollars in millions):
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Nine Months
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Three Months Ended
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Ended
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September 30,
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June 30,
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September 30,
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2017
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2016
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2017
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2017
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Corporate & Other Operations
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$
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(41)
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$
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(47)
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$
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(29)
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$
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(103)
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2017 OUTLOOK
Cigna's outlook for full year 2017 consolidated adjusted income from
operations1,3 is in the range of $2.60 billion to $2.65
billion, or $10.20 to $10.40 per share. Cigna's outlook excludes the
impact of additional prior year reserve development and potential
effects of any future capital deployment.4
(dollars in millions, except where noted and per share amounts)
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Projection for Full-Year Ending
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December 31, 2017
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Adjusted Income (Loss) from Operations1,3
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Global Health Care
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$
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2,140 to 2,170
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Global Supplemental Benefits
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$
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345 to 355
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Group Disability and Life
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$
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275 to 285
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Ongoing Businesses
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$
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2,760 to 2,810
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Corporate & Other Operations
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$
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(160)
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Consolidated Adjusted Income from Operations1,3
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$
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2,600 to 2,650
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Consolidated Adjusted Income from Operations, per share1,3,4
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$
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10.20 to 10.40
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2017 Operating Metrics and Ratios Outlook
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Total Revenue Growth
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Approximately 4%
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Full Year Total Commercial Medical Care Ratio8
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80% to 81%
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Full Year Total Government Medical Care Ratio8
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84.5% to 85.5%
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Full Year Global Health Care Operating Expense Ratio8
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Approximately 21%
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Global Medical Customer Growth2
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Approximately 650,000 customers
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The foregoing statements represent the Company's current estimates of
Cigna's 2017 consolidated and segment adjusted income from operations1,3
and other key metrics as of the date of this release. Actual results may
differ materially depending on a number of factors. Investors are urged
to read the Cautionary Note Regarding Forward-Looking Statements
included in this release. Management does not assume any obligation to
update these estimates.
This quarterly earnings release and the Quarterly Financial Supplement
are available on Cigna's website in the Investor Relations section (http://www.cigna.com/aboutcigna/investors).
Management will be hosting a conference call to review third quarter
2017 results and discuss full year 2017 outlook beginning today at 8:30
a.m. EDT. A link to the conference call is available in the Investor
Relations section of Cigna's website located at http://www.cigna.com/cignadotcom/aboutcigna/investors/events/index.page.
The call-in numbers for the conference call are as follows:
Live Call (800) 369-1781 (Domestic) (210) 234-0090
(International) Passcode: 11022017
Replay (800) 945-7247 (Domestic) (203) 369-3951 (International)
It is strongly suggested you dial in to the conference call by 8:15 a.m.
EDT.
Notes:
1.
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Adjusted income (loss) from operations is defined as
shareholders' net income (loss) excluding the following after-tax
adjustments: net realized investment results, net amortization of
other acquired intangible assets and special items. Special items
are identified in Exhibit 2 of this earnings release.
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Adjusted income (loss) from operations is a measure of
profitability used by Cigna's management because it presents the
underlying results of operations of Cigna's businesses and permits
analysis of trends in underlying revenue, expenses and
shareholders' net income. This consolidated measure is not
determined in accordance with accounting principles generally
accepted in the United States (GAAP) and should not be viewed as a
substitute for the most directly comparable GAAP measure,
shareholders' net income. See Exhibits 1 and 2 for a
reconciliation of adjusted income from operations to shareholders'
net income.
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2.
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Global medical customers include individuals who meet any one
of the following criteria: are covered under a medical insurance
policy, managed care arrangement, or service agreement issued by
Cigna; have access to Cigna's provider network for covered
services under their medical plan; or have medical claims and
services that are administered by Cigna.
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3.
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Management is not able to provide a reconciliation to
shareholders' net income (loss) on a forward-looking basis because
we are unable to predict, without unreasonable effort, certain
components thereof including (i) future net realized investment
results and (ii) future special items. These items are inherently
uncertain and depend on various factors, many of which are beyond
our control. As such, any associated estimate and its impact on
shareholders' net income could vary materially.
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4.
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The Company's outlook excludes the potential effects of any
share repurchases or business combinations that may occur after
the date of this earnings release.
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5.
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The measure "consolidated operating revenues" is not determined
in accordance with GAAP and should not be viewed as a substitute
for the most directly comparable GAAP measure, "total revenues."
We define consolidated operating revenues as total revenues
excluding realized investment results. We exclude realized
investment results from this measure because our portfolio
managers may sell investments based on factors largely unrelated
to the underlying business purposes of each segment. As a result,
gains or losses created in this process may not be indicative of
past or future underlying performance of the business. See Exhibit
1 for a reconciliation of consolidated operating revenues to total
revenues.
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6.
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Adjusted margin, after-tax, is calculated by dividing adjusted
income (loss) from operations by operating revenues for each
segment.
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7.
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Prior period behavioral care customers have been revised to
conform to current presentation.
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8.
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Operating ratios are defined as follows:
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•
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Total Commercial medical care ratio represents medical costs as
a percentage of premiums for all commercial risk products,
including medical, pharmacy, dental, stop loss and behavioral
products provided through guaranteed cost or experience-rated
funding arrangements in both the United States and internationally.
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•
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Total Government medical care ratio represents medical costs as
a percentage of premiums for Medicare Advantage, Medicare Part D,
and Medicaid products.
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•
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Global Health Care operating expense ratio represents operating
expenses excluding acquisition related amortization expense as a
percentage of operating revenue in the Global Health Care segment.
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9.
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Global Health Care medical costs payable are presented net of
reinsurance and other recoverables. The gross Global Health Care
medical costs payable balance was $2.78 billion as of September
30, 2017 and $2.53 billion as of December 31, 2016.
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10.
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Cigna owns a 50% noncontrolling interest in its China joint
venture. Cigna's 50% share of the joint venture's earnings is
reported in Other Revenues using the equity method of accounting
under GAAP. As such, the premiums and fees and policy counts for
the Global Supplemental Benefits segment do not include the China
joint venture.
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release, and oral statements made with respect to information
contained in this release, may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on Cigna's current expectations and
projections about future trends, events and uncertainties. These
statements are not historical facts. Forward-looking statements may
include, among others, statements concerning our projected adjusted
income (loss) from operations outlook for 2017, on both a consolidated
and segment basis; projected total revenue growth and global medical
customer growth, each over year end 2016; projected growth in 2018 and
beyond; projected medical care and operating expense ratios and medical
cost trends; future financial or operating performance, including our
ability to deliver personalized and innovative solutions for our
customers and clients; future growth, business strategy, strategic or
operational initiatives; economic, regulatory or competitive
environments, particularly with respect to the pace and extent of change
in these areas; financing or capital deployment plans and amounts
available for future deployment; our prospects for growth in the coming
years; and other statements regarding Cigna's future beliefs,
expectations, plans, intentions, financial condition or performance. You
may identify forward-looking statements by the use of words such as
"believe," "expect," "plan," "intend," "anticipate," "estimate,"
"predict," "potential," "may," "should," "will" or other words or
expressions of similar meaning, although not all forward-looking
statements contain such terms.
Forward-looking statements are subject to risks and uncertainties, both
known and unknown, that could cause actual results to differ materially
from those expressed or implied in forward-looking statements. Such
risks and uncertainties include, but are not limited to: our ability to
achieve our financial, strategic and operational plans or initiatives;
our ability to predict and manage medical costs and price effectively
and develop and maintain good relationships with physicians, hospitals
and other health care providers; the impact of modifications to our
operations and processes, including those in our disability business;
our ability to identify potential strategic acquisitions or transactions
and realize the expected benefits of such transactions; the substantial
level of government regulation over our business and the potential
effects of new laws or regulations or changes in existing laws or
regulations; the outcome of litigation, regulatory audits,
investigations, actions and/or guaranty fund assessments; uncertainties
surrounding participation in government-sponsored programs such as
Medicare; the effectiveness and security of our information technology
and other business systems; unfavorable industry, economic or political
conditions including foreign currency movements; acts of war, terrorism,
natural disasters or pandemics; uncertainty as to the outcome of the
litigation between Cigna and Anthem, Inc. with respect to the
termination of the merger agreement, the reverse termination fee and/or
contract and non-contract damages for claims each party has filed
against the other, including the risk that a court finds that Cigna has
not complied with its obligations under the merger agreement, is not
entitled to receive the reverse termination fee or is liable for breach
of the merger agreement;, as well as more specific risks and
uncertainties discussed in our most recent report on Form 10-K and
subsequent reports on Forms 10-Q and 8-K available on the Investor
Relations section of www.cigna.com.
You should not place undue reliance on forward-looking statements, which
speak only as of the date they are made, are not guarantees of future
performance or results, and are subject to risks, uncertainties and
assumptions that are difficult to predict or quantify. Cigna undertakes
no obligation to update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise, except as
may be required by law.
CIGNA CORPORATION
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COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited)
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Exhibit 1
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(Dollars in millions, except per share amounts)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
|
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2017
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2016
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2017
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2016
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REVENUES
|
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Premiums
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|
$
|
8,030
|
|
$
|
7,605
|
|
|
|
$
|
24,143
|
|
$
|
23,005
|
Fees
|
|
|
1,137
|
|
|
1,086
|
|
|
|
|
3,417
|
|
|
3,346
|
Net investment income
|
|
|
298
|
|
|
282
|
|
|
|
|
909
|
|
|
848
|
Mail order pharmacy revenues
|
|
|
733
|
|
|
762
|
|
|
|
|
2,200
|
|
|
2,207
|
Other revenues
|
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|
67
|
|
|
70
|
|
|
|
|
202
|
|
|
208
|
Consolidated operating revenues
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|
10,265
|
|
|
9,805
|
|
|
|
|
30,871
|
|
|
29,614
|
Net realized investment gains
|
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|
117
|
|
|
75
|
|
|
|
|
214
|
|
|
110
|
|
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|
|
|
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Total revenues
|
|
$
|
10,382
|
|
$
|
9,880
|
|
|
|
$
|
31,085
|
|
$
|
29,724
|
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SHAREHOLDERS' NET INCOME (LOSS)
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Shareholders' net income
|
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$
|
560
|
|
$
|
456
|
|
|
|
$
|
1,971
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$
|
1,485
|
After-tax adjustments to reconcile to adjusted income from
operations:
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|
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|
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Realized investment (gains)
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(75)
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|
(48)
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(140)
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(71)
|
Amortization of other acquired intangible assets, net
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16
|
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|
24
|
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|
54
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|
72
|
Special items
|
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|
215
|
|
|
71
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|
300
|
|
|
133
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Adjusted income from operations (1)
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|
$
|
716
|
|
$
|
503
|
|
|
|
$
|
2,185
|
|
$
|
1,619
|
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|
|
|
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Adjusted income (loss) from operations by
segment
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Global Health Care
|
|
$
|
575
|
|
$
|
416
|
|
|
|
$
|
1,776
|
|
$
|
1,446
|
Global Supplemental Benefits
|
|
|
109
|
|
|
81
|
|
|
|
|
288
|
|
|
231
|
Group Disability and Life
|
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|
73
|
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|
53
|
|
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|
|
224
|
|
|
56
|
Ongoing Operations
|
|
|
757
|
|
|
550
|
|
|
|
|
2,288
|
|
|
1,733
|
Corporate and Other
|
|
|
(41)
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|
(47)
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|
(103)
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|
(114)
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Total adjusted income from operations
|
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$
|
716
|
|
$
|
503
|
|
|
|
$
|
2,185
|
|
$
|
1,619
|
|
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DILUTED EARNINGS PER SHARE
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Shareholders' net income
|
|
$
|
2.21
|
|
$
|
1.76
|
|
|
|
$
|
7.67
|
|
$
|
5.72
|
After-tax adjustments to reconcile to adjusted income from
operations:
|
|
|
|
|
|
|
|
|
|
|
Realized investment (gains)
|
|
|
(0.29)
|
|
|
(0.19)
|
|
|
|
|
(0.54)
|
|
|
(0.27)
|
Amortization of other acquired intangible assets, net
|
|
|
0.06
|
|
|
0.09
|
|
|
|
|
0.21
|
|
|
0.28
|
Special items
|
|
|
0.85
|
|
|
0.28
|
|
|
|
|
1.16
|
|
|
0.51
|
Adjusted income from operations (1)
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|
$
|
2.83
|
|
$
|
1.94
|
|
|
|
$
|
8.50
|
|
$
|
6.24
|
Weighted average shares (in thousands)
|
|
|
253,410
|
|
|
259,754
|
|
|
|
|
257,058
|
|
|
259,568
|
Common shares outstanding (in thousands)
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|
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|
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|
|
247,573
|
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|
256,720
|
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|
SHAREHOLDERS' EQUITY at September 30
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|
|
|
$
|
14,145
|
|
$
|
13,974
|
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SHAREHOLDERS' EQUITY PER SHARE at September 30
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|
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|
$
|
57.13
|
|
$
|
54.43
|
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(1) Adjusted income (loss) from operations is defined as
shareholders' net income (loss) excluding the following after-tax
adjustments: realized investment results; net amortization of other
acquired intangible assets; and special items (identified and quantified
on Exhibit 2).
CIGNA CORPORATION
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RECONCILIATION OF SHAREHOLDERS' NET INCOME (LOSS) TO ADJUSTED
INCOME FROM OPERATIONS
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Exhibit 2
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(Dollars in millions, except per share amounts)
|
|
Diluted
|
|
|
|
|
|
Global
|
|
Group
|
|
Corporate
|
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|
Earnings
|
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|
Global
|
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Supplemental
|
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Disability
|
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and
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Per Share
|
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Consolidated
|
|
Health Care
|
|
Benefits
|
|
and Life
|
|
Other
|
Three Months Ended,
|
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3Q17
|
|
3Q16
|
|
2Q17
|
|
3Q17
|
|
3Q16
|
|
2Q17
|
|
3Q17
|
|
3Q16
|
|
2Q17
|
|
3Q17
|
|
3Q16
|
|
2Q17
|
|
3Q17
|
|
3Q16
|
|
2Q17
|
|
3Q17
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|
3Q16
|
|
2Q17
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Shareholders' net income (loss)
|
|
$
|
2.21
|
|
$
|
1.76
|
|
$
|
3.15
|
|
$
|
560
|
|
$
|
456
|
|
$
|
813
|
|
$
|
610
|
|
$
|
413
|
|
$
|
599
|
|
$
|
105
|
|
$
|
77
|
|
$
|
101
|
|
$
|
97
|
|
$
|
65
|
|
$
|
97
|
|
$
|
(252)
|
|
$
|
(99)
|
|
$
|
16
|
After-tax adjustments to reconcile to adjusted income (loss) from
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized investment (gains) losses
|
|
|
(0.29)
|
|
|
(0.19)
|
|
|
(0.13)
|
|
|
(75)
|
|
|
(48)
|
|
|
(34)
|
|
|
(47)
|
|
|
(42)
|
|
|
(22)
|
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|
-
|
|
|
-
|
|
|
-
|
|
|
(24)
|
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|
(12)
|
|
|
(14)
|
|
|
(4)
|
|
|
6
|
|
|
2
|
Amortization of other acquired intangible assets, net
|
|
|
0.06
|
|
|
0.09
|
|
|
0.07
|
|
|
16
|
|
|
24
|
|
|
18
|
|
|
12
|
|
|
20
|
|
|
14
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Special items:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment costs
|
|
|
0.82
|
|
|
-
|
|
|
-
|
|
|
209
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
209
|
|
|
-
|
|
|
-
|
Merger-related transaction costs
|
|
|
0.03
|
|
|
0.18
|
|
|
(0.18)
|
|
|
6
|
|
|
46
|
|
|
(47)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6
|
|
|
46
|
|
|
(47)
|
Charges associated with litigation matters
|
|
|
-
|
|
|
0.10
|
|
|
-
|
|
|
-
|
|
|
25
|
|
|
-
|
|
|
-
|
|
|
25
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Adjusted income (loss) from operations
|
|
$
|
2.83
|
|
$
|
1.94
|
|
$
|
2.91
|
|
$
|
716
|
|
$
|
503
|
|
$
|
750
|
|
$
|
575
|
|
$
|
416
|
|
$
|
591
|
|
$
|
109
|
|
$
|
81
|
|
$
|
105
|
|
$
|
73
|
|
$
|
53
|
|
$
|
83
|
|
$
|
(41)
|
|
$
|
(47)
|
|
$
|
(29)
|
Weighted average shares (in thousands)
|
|
|
253,410
|
|
|
259,754
|
|
|
258,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment costs
|
|
|
|
|
|
|
|
$
|
321
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
321
|
|
$
|
-
|
|
$
|
-
|
Merger-related transaction costs
|
|
|
|
|
|
|
|
|
9
|
|
|
49
|
|
|
16
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9
|
|
|
49
|
|
|
16
|
Charges associated with litigation matters
|
|
|
|
|
|
|
|
|
-
|
|
|
40
|
|
|
-
|
|
|
-
|
|
|
40
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Total
|
|
|
|
|
|
|
|
$
|
330
|
|
$
|
89
|
|
$
|
16
|
|
$
|
-
|
|
$
|
40
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
330
|
|
$
|
49
|
|
$
|
16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share amounts)
|
|
Diluted
|
|
|
|
|
|
Global
|
|
Group
|
|
Corporate
|
|
|
Earnings
|
|
|
|
Global
|
|
Supplemental
|
|
Disability
|
|
and
|
|
|
Per Share
|
|
Consolidated
|
|
Health Care
|
|
Benefits
|
|
and Life
|
|
Other
|
Nine Months Ended September 30,
|
|
3Q17
|
|
|
|
3Q16
|
|
3Q17
|
|
|
|
3Q16
|
|
3Q17
|
|
|
|
3Q16
|
|
3Q17
|
|
|
|
3Q16
|
|
3Q17
|
|
|
|
3Q16
|
|
3Q17
|
|
3Q16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net income (loss)
|
|
$
|
7.67
|
|
|
|
$
|
5.72
|
|
$
|
1,971
|
|
|
|
$
|
1,485
|
|
$
|
1,753
|
|
|
|
$
|
1,414
|
|
$
|
283
|
|
|
|
$
|
214
|
|
$
|
253
|
|
|
|
$
|
81
|
|
$
|
(318)
|
|
|
|
$
|
(224)
|
After-tax adjustments to reconcile to adjusted income (loss) from
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized investment (gains) losses
|
|
|
(0.54)
|
|
|
|
|
(0.27)
|
|
|
(140)
|
|
|
|
|
(71)
|
|
|
(85)
|
|
|
|
|
(49)
|
|
|
(9)
|
|
|
|
|
1
|
|
|
(44)
|
|
|
|
|
(25)
|
|
|
(2)
|
|
|
|
|
2
|
Amortization of other acquired intangible assets, net
|
|
|
0.21
|
|
|
|
|
0.28
|
|
|
54
|
|
|
|
|
72
|
|
|
40
|
|
|
|
|
56
|
|
|
14
|
|
|
|
|
16
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment costs
|
|
|
0.81
|
|
|
|
|
-
|
|
|
209
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
209
|
|
|
|
|
-
|
Merger-related transaction costs (1)
|
|
|
0.03
|
|
|
|
|
0.41
|
|
|
8
|
|
|
|
|
108
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
8
|
|
|
|
|
108
|
Long-term care guaranty fund assessment
|
|
|
0.32
|
|
|
|
|
-
|
|
|
83
|
|
|
|
|
-
|
|
|
68
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
15
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
Charges associated with litigation matters
|
|
|
-
|
|
|
|
|
0.10
|
|
|
-
|
|
|
|
|
25
|
|
|
-
|
|
|
|
|
25
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
Adjusted income (loss) from operations
|
|
$
|
8.50
|
|
|
|
$
|
6.24
|
|
$
|
2,185
|
|
|
|
$
|
1,619
|
|
$
|
1,776
|
|
|
|
$
|
1,446
|
|
$
|
288
|
|
|
|
$
|
231
|
|
$
|
224
|
|
|
|
$
|
56
|
|
$
|
(103)
|
|
|
|
$
|
(114)
|
Weighted average shares (in thousands)
|
|
|
257,058
|
|
|
|
|
259,568
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding as of September 30, (in thousands)
|
|
|
247,573
|
|
|
|
|
256,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt extinguishment costs
|
|
|
|
|
|
|
|
$
|
321
|
|
|
|
$
|
-
|
|
$
|
-
|
|
|
|
$
|
-
|
|
$
|
-
|
|
|
|
$
|
-
|
|
$
|
-
|
|
|
|
$
|
-
|
|
$
|
321
|
|
|
|
$
|
-
|
Merger-related transaction costs (1)
|
|
|
|
|
|
|
|
|
88
|
|
|
|
|
123
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
88
|
|
|
|
|
123
|
Long-term care guaranty fund assessment
|
|
|
|
|
|
|
|
|
129
|
|
|
|
|
-
|
|
|
106
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
23
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
Charges associated with litigation matters
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
40
|
|
|
-
|
|
|
|
|
40
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
|
|
|
-
|
Total
|
|
|
|
|
|
|
|
$
|
538
|
|
|
|
$
|
163
|
|
$
|
106
|
|
|
|
$
|
40
|
|
$
|
-
|
|
|
|
$
|
-
|
|
$
|
23
|
|
|
|
$
|
-
|
|
$
|
409
|
|
|
|
$
|
123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) For additional information related to a one-time tax benefit of
approximately $60 million recorded in the second quarter of 2017, please
refer to Note 3 to the Consolidated Financial Statements in Cigna's Form
10-Q for the period ended September 30, 2017 expected to be filed on
November 2, 2017.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171102005313/en/
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