[May 03, 2018] |
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Cigna Reports Strong First Quarter 2018 Results, Raises Outlook
Cigna Corporation (NYSE: CI) today reported strong first quarter 2018
results, continuing the company's consistent track record of driving
attractive revenue and earnings growth through its differentiated
portfolio of businesses.
"Cigna's strong first quarter performance was driven by the continued,
effective execution of our proven growth strategy, which we expect to
further accelerate through our pending combination with Express
Scripts," said David M. Cordani, President and Chief Executive Officer.
"We continue to deliver exceptional value for our customers and clients
with market-leading solutions that provide greater affordability,
personalization and predictability."
Total revenues1 in the quarter were $11.4 billion, an
increase of 9% over first quarter 2017, led by continued strong business
growth in Cigna's Commercial Healthcare and Global Supplemental Benefits
segments.
For the first quarter of 2018, shareholders' net income was $915
million, or $3.72 per share, compared with $598 million, or $2.30 per
share, for the first quarter of 2017.
Cigna's adjusted income from operations2 for the first
quarter of 2018 was $1.0 billion, or $4.11 per share, compared with $719
million, or $2.77 per share, for the first quarter of 2017. This
represents per share growth of 48% and reflects continued strong
contributions from each of the company's growth platforms.
Reconciliations of shareholders' net income to adjusted income from
operations2 are provided on the following page, and on
Exhibit 2 of this earnings release.
CONSOLIDATED HIGHLIGHTS
The following table includes highlights of results and reconciliations
of total revenues to consolidated operating revenues6 and
shareholders' net income to adjusted income from operations2:
Consolidated Financial Results1 (dollars
in millions):
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Three Months Ended
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March 31,
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December 31,
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2018
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|
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2017
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|
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2017
|
|
|
|
|
|
|
|
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|
|
|
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Total Revenues
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$
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11,380
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|
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$
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10,474
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$
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10,656
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Net Realized Investment (Gains) Losses
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35
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|
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(46)
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|
|
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(23)
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Consolidated Operating Revenues6
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|
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$
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11,415
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|
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$
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10,428
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$
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10,633
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|
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Consolidated Earnings, Net of Taxes
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|
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Shareholders' Net Income
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$
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915
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$
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598
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$
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266
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Net Realized Investment (Gains) Losses
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25
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(31)
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(16)
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Amortization of Other Acquired Intangible Assets2
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20
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|
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20
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|
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12
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Special Items2
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50
|
|
|
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132
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|
|
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221
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Adjusted Income from Operations2
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$
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1,010
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$
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719
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$
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483
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Shareholders' Net Income, per share
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$
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3.72
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$
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2.30
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$
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1.07
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Adjusted Income from Operations2, per share
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$
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4.11
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$
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2.77
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$
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1.94
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Cash and marketable investments at the parent company were $1.0
billion at March 31, 2018 and $1.2 billion at December 31, 2017.
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Year to date, as of May 2, 2018, the Company repurchased 1.3 million
shares of common stock for approximately $275 million. The Company
does not expect to conduct additional share repurchases prior to
closing of the Express Scripts combination.
HIGHLIGHTS OF SEGMENT RESULTS
See Exhibit 2 for a reconciliation of shareholders' net income to
adjusted income (loss) from operations2.
Global Health Care
This segment includes Cigna's Commercial and Government businesses that
deliver medical and specialty health care products and services to
domestic and multi-national clients and customers using guaranteed cost,
retrospectively experience-rated and administrative services only
("ASO") funding arrangements. Specialty health care includes behavioral,
dental, disease and medical management, stop loss and pharmacy-related
products and services.
Financial Results1 (dollars in millions,
customers in thousands):
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Three Months Ended
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March 31,
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December 31,
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2018
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2017
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2017
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|
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Operating Revenues
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$
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9,089
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$
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8,287
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$
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8,390
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Adjusted Income from Operations2
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$
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871
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$
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610
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$
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397
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Adjusted Margin, After-Tax7
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9.6%
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7.4%
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4.7%
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As of the Periods Ended
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March 31,
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December 31,
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Customers:
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2018
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2017
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2017
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Commercial
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15,750
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15,232
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15,420
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Government
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484
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502
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487
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Medical3
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16,234
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15,734
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15,907
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Behavioral Care
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26,998
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26,006
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26,849
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Dental
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16,521
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15,788
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15,801
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Pharmacy
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8,796
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8,910
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8,960
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Medicare Part D
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784
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853
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821
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Global Health Care delivered strong revenue and earnings growth in the
first quarter, led by continued strong performance of the company's
Commercial Employer business in our targeted markets.
-
First quarter 2018 operating revenues increased 10% relative to first
quarter 2017, driven by Commercial customer growth, premium increases
consistent with underlying cost trends and specialty contributions.
-
Cigna's medical customer base3 grew by 327,000 customers in
first quarter 2018 to a total of 16.2 million customers, driven by
continued organic growth in our Select, Individual and Middle Market
segments.
-
First quarter 2018 adjusted income from operations2 and
adjusted margin, after-tax7 reflect medical and specialty
business growth, strong medical cost performance, a lower tax rate and
favorable prior year reserve development.
-
Adjusted income from operations2 for first quarter 2018 and
first quarter 2017 included favorable prior year reserve development
on an after-tax basis of $43 million and $61 million, respectively.
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The Total Commercial medical care ratio8 ("MCR") of 73.7%
for first quarter 2018 reflects the consistent strong performance of
our Commercial business, the pricing effect of the resumption of the
health insurance tax, and favorable prior year reserve development.
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The Total Government MCR8 of 84.5% for first quarter 2018
reflects strong performance in Medicare Advantage and the seasonal
impacts of Medicare Part D.
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First quarter 2018 Global Health Care operating expense ratio8
of 22.7% reflects the return of the health insurance tax, ongoing
investments in growth and innovation, and continued effective expense
management.
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Global Health Care net medical costs payable9 was
approximately $2.68 billion at March 31, 2018 and $2.45 billion at
December 31, 2017.
Global Supplemental Benefits
This segment includes Cigna's global individual supplemental health,
life and accident insurance business, primarily in Asia, and Medicare
supplement coverage in the United States.
Financial Results (dollars in millions, policies in thousands):
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Three Months Ended
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March 31,
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December 31,
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2018
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2017
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2017
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Operating Revenues10
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$
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1,102
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$
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909
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$
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1,023
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Adjusted Income from Operations2
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$
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112
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$
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74
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$
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81
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Adjusted Margin, After-Tax7
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10.2%
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8.1%
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7.9%
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As of the Periods Ended
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March 31,
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December 31,
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2018
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2017
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2017
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Policies10
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13,491
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12,611
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13,138
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-
Global Supplemental Benefits delivered outstanding top line and bottom
line results in first quarter 2018, continuing our long track record
of profitable growth through innovative product design and
distribution strategies tailored to the evolving needs of individual
consumers.
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First quarter 2018 operating revenues10 grew 21% over first
quarter 2017, primarily reflecting continued business growth and some
favorable impact from foreign currency movements.
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First quarter 2018 adjusted income from operations2 and
adjusted margin, after-tax7 reflect business growth and
strong 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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Three Months Ended
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March 31,
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December 31,
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2018
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2017
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2017
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Operating Revenues
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$
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1,116
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$
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1,121
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$
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1,109
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Adjusted Income from Operations2
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$
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67
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$
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68
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$
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61
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Adjusted Margin, After-Tax7
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6.0%
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6.1%
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5.5%
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-
Group Disability and Life continues to create value for our customers
and clients with customized solutions that improve health,
productivity and sense of security, particularly when integrated with
the company's medical and other specialty offerings.
-
First quarter 2018 adjusted income from operations2 and
adjusted margin, after-tax7 reflect solid performance of
our Disability business and modestly elevated life insurance claims.
Corporate & Other Operations
Adjusted loss from operations2 for Cigna's remaining
operations is presented below:
Financial Results (dollars in millions):
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Three Months Ended
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March 31,
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December 31,
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2018
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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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(40)
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$
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(33)
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$
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(56)
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-
First quarter 2018 adjusted loss from operations2 improved
sequentially primarily driven by favorable impacts on corporate income
taxes from stock-based compensation programs.
2018 OUTLOOK
Cigna's outlook for full year 2018 consolidated adjusted income from
operations2,4,5 is in the range of $3.17 billion to $3.27
billion, or $12.85 to $13.25 per share. Cigna's outlook excludes the
impact of additional prior year reserve development and potential
effects of any future capital deployment.5
(dollars in millions, except where noted and per share amounts)
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Projection for Full- Year Ending
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Change
from Prior
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December 31, 2018 2,4,5
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Projection
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Adjusted Income (Loss) from Operations
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Global Health Care
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$
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2,670 to 2,730
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$
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+ 50 to 70
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Global Supplemental Benefits
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$
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390 to 410
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$
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+ 10
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Group Disability and Life
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$
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330 to 350
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$
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Ongoing Businesses
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$
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3,390 to 3,490
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$
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+ 60 to 80
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Corporate & Other Operations
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$
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(220)
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$
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+ 10
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Consolidated Adjusted Income from Operations
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$
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3,170 to 3,270
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$
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+ 70 to 90
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Consolidated Adjusted Income from Operations, per share
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$
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12.85 to 13.25
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$
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+ 0.35 to 0.45
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2018 Operating Metrics and Ratios Outlook
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Total Revenue Growth
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7% to 8%
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Full Year Total Commercial Medical Care Ratio8
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77.5% to 78.5%
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Full Year Total Government Medical Care Ratio8
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83.5% to 84.5%
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|
|
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- 50 bps
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Full Year Global Health Care Operating Expense Ratio8
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22.5% to 23.5%
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|
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Global Medical Customer Growth3
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400,000 to 500,000
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+ 0 to 100,000
|
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Customers
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Customers
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Consolidated Adjusted Tax Rate11
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24% to 25%
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The foregoing statements represent the Company's current estimates of
Cigna's 2018 consolidated and segment adjusted income from operations2,4
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 first quarter
2018 results and discuss full year 2018 outlook beginning 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.
Earnings Conference Call
The call-in numbers for the conference call are as follows:
Live Call
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(888) 324-7575 (Domestic)
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(210) 234-0013 (International)
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Passcode: 5032018
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Replay
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(866) 484-6429 (Domestic)
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(203) 369-1603 (International)
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It is strongly suggested you dial in to the conference call by 8:15 a.m.
EDT.
About Cigna
Cigna Corporation (NYSE: CI) is a global health service company
dedicated to helping people improve their health, well-being and sense
of security. All products and services are provided exclusively by or
through operating subsidiaries of Cigna Corporation, including
Connecticut General Life Insurance Company, Cigna Health and Life
Insurance Company, Life Insurance Company of North America and Cigna
Life Insurance Company of New York. Such products and services include
an integrated suite of health services, such as medical, dental,
behavioral health, pharmacy, vision, supplemental benefits, and other
related products including group life, accident and disability
insurance. Cigna maintains sales capability in over 30 countries and
jurisdictions, and has more than 95 million customer relationships
throughout the world. To learn more about Cigna®, including links to
follow us on Facebook or Twitter, visit https://www.cigna.com.
For more information about Cigna's proposed acquisition of Express
Scripts, please visit http://www.makinghealthcaresimple.com.
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Notes:
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1.
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Effective January 1, 2018, the Company adopted Accounting
Standards Update 2014-09 "Revenue from Contracts with Customers"
through full retrospective restatement. The adoption of ASU
2014-09 had no impact to shareholders' net income, adjusted income
from operations or cash flows, however the adoption resulted in
certain reclassifications in the Consolidated and Global Health
Care Segment income statements. Additional information regarding
adoption of the new revenue accounting standard is available in
the Company's Form 10-Q expected to be filed on May 3, 2018.
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2.
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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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3.
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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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4.
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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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5.
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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. Also, the Company's outlook is
presented on the basis of the new revenue accounting standard (ASU
2014-09) adopted effective January 1, 2018.
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6.
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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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7.
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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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8.
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Operating ratios are defined as follows:
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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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• 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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• 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 $2.93 billion as of March 31,
2017 and $2.72 billion as of December 31, 2017.
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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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11.
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The measure "consolidated adjusted tax rate" is not determined
in accordance with GAAP and should not be viewed as a substitute
for the most directly comparable GAAP measure, "consolidated
effective tax rate." We define consolidated adjusted tax rate as
the income tax rate applicable to the Company's pre-tax income
excluding net realized investment results, net amortization of
other acquired intangible assets and special items. Management is
not able to provide a reconciliation to the consolidated effective
tax rate 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.
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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 2018, on both a consolidated
and segment basis; projected total revenue growth and global medical
customer growth, each over year end 2017; projected growth beyond 2018;
projected medical care and operating expense ratios and medical cost
trends; our projected consolidated adjusted tax rate; 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; the proposed merger (the
"Merger") with Express Scripts Holding Company ("Express Scripts") 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; our ability to identify potential strategic
acquisitions or transactions and realize the expected benefits of such
transactions, including with respect to the Merger; 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; our ability to obtain
shareholder or regulatory approvals required for the Merger or the
requirement to accept conditions that could reduce the anticipated
benefits of the Merger as a condition to obtaining regulatory approvals;
a longer time than anticipated to consummate the proposed Merger;
problems regarding the successful integration of the businesses of
Express Scripts and Cigna; unexpected costs regarding the proposed
Merger; diversion of management's attention from ongoing business
operations and opportunities during the pendency of the Merger;
potential litigation associated with the proposed Merger; the ability to
retain key personnel; the availability of financing, including relating
to the proposed Merger; effects on the businesses as a result of
uncertainty surrounding the proposed Merger; 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
as well as on Express Scripts' 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.express-scripts.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
|
|
|
|
|
|
|
|
|
COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited)
|
|
|
Exhibit 1
|
(Dollars in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
|
|
|
|
|
|
|
REVENUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Premiums
|
|
|
$
|
8,999
|
|
|
$
|
8,151
|
Fees
|
|
|
|
1,353
|
|
|
|
1,248
|
Net investment income
|
|
|
|
329
|
|
|
|
303
|
Mail order pharmacy revenues
|
|
|
|
717
|
|
|
|
710
|
Other revenues
|
|
|
|
15
|
|
|
|
16
|
Net realized investment gains (losses)
|
|
|
|
(33)
|
|
|
|
46
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
|
11,380
|
|
|
|
10,474
|
Less: Net realized investment gains (losses)
|
|
|
|
(33)
|
|
|
|
46
|
Less: Net realized investment (losses) from equity method
subsidiaries(1)
|
|
|
|
(2)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Consolidated operating revenues
|
|
|
$
|
11,415
|
|
|
$
|
10,428
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' NET INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net income (loss)
|
|
|
$
|
915
|
|
|
$
|
598
|
After-tax adjustments to reconcile to adjusted income from
operations:
|
|
|
|
|
|
|
|
|
Net realized investment (gains) losses(1)
|
|
|
|
25
|
|
|
|
(31)
|
Amortization of other acquired intangible assets
|
|
|
|
20
|
|
|
|
20
|
Special items
|
|
|
|
50
|
|
|
|
132
|
|
|
|
|
|
|
|
|
|
Adjusted income from operations(2)
|
|
|
$
|
1,010
|
|
|
$
|
719
|
|
|
|
|
|
|
|
|
|
Adjusted income (loss) from operations by
segment
|
|
|
|
|
|
|
|
|
Global Health Care
|
|
|
$
|
871
|
|
|
$
|
610
|
Global Supplemental Benefits
|
|
|
|
112
|
|
|
|
74
|
Group Disability and Life
|
|
|
|
67
|
|
|
|
68
|
Ongoing Operations
|
|
|
|
1,050
|
|
|
|
752
|
Corporate and Other
|
|
|
|
(40)
|
|
|
|
(33)
|
|
|
|
|
|
|
|
|
|
Total adjusted income from operations(2)
|
|
|
$
|
1,010
|
|
|
$
|
719
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net income (loss)
|
|
|
$
|
3.72
|
|
|
$
|
2.30
|
After-tax adjustments to reconcile to adjusted income from
operations:
|
|
|
|
|
|
|
|
|
Net realized investment (gains) losses(1)
|
|
|
|
0.10
|
|
|
|
(0.12)
|
Amortization of other acquired intangible assets
|
|
|
|
0.08
|
|
|
|
0.08
|
Special items
|
|
|
|
0.21
|
|
|
|
0.51
|
|
|
|
|
|
|
|
|
|
Adjusted income from operations(2)
|
|
|
$
|
4.11
|
|
|
$
|
2.77
|
Weighted average shares (in thousands)
|
|
|
|
245,788
|
|
|
|
259,774
|
Common shares outstanding (in thousands)
|
|
|
|
243,250
|
|
|
|
256,217
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY at March 31,
|
|
|
$
|
14,195
|
|
|
$
|
14,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY PER SHARE at March 31,
|
|
|
$
|
58.36
|
|
|
$
|
55.43
|
|
(1) Beginning in 2018, Cigna's share of the realized investment
results of its joint ventures in China and India that is reported
in other revenues is excluded from operating revenues and adjusted
income from operations.
|
(2) Adjusted income (loss) from operations is defined as
shareholders' net income (loss) excluding the following after-tax
adjustments: realized investment results; amortization of other
acquired intangible assets; and special items (identified and
quantified on Exhibit 2).
|
|
CIGNA CORPORATION
|
RECONCILIATION OF SHAREHOLDERS' NET INCOME (LOSS) TO ADJUSTED
INCOME FROM OPERATIONS
|
|
|
Exhibit 2
|
|
(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
|
Three Months Ended,
|
|
|
1Q18
|
|
|
1Q17
|
|
|
4Q17
|
|
|
1Q18
|
|
|
1Q17
|
|
|
4Q17
|
|
|
1Q18
|
|
|
1Q17
|
|
|
4Q17
|
|
|
1Q18
|
|
|
1Q17
|
|
|
4Q17
|
|
|
1Q18
|
|
|
1Q17
|
|
|
4Q17
|
|
|
1Q18
|
|
|
1Q17
|
|
|
4Q17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' net income (loss)
|
|
|
$
|
3.72
|
|
|
$
|
2.30
|
|
|
$
|
1.07
|
|
|
$
|
915
|
|
|
$
|
598
|
|
|
$
|
266
|
|
|
$
|
842
|
|
|
$
|
544
|
|
|
$
|
529
|
|
|
$
|
105
|
|
|
$
|
77
|
|
|
$
|
19
|
|
|
$
|
54
|
|
|
$
|
59
|
|
|
$
|
105
|
|
|
$
|
(86)
|
|
|
$
|
(82)
|
|
|
$
|
(387)
|
After-tax adjustments to reconcile to adjusted income (loss) from
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized investment (gains) losses(1)
|
|
|
|
0.10
|
|
|
|
(0.12)
|
|
|
|
(0.06)
|
|
|
|
25
|
|
|
|
(31)
|
|
|
|
(16)
|
|
|
|
15
|
|
|
|
(16)
|
|
|
|
(3)
|
|
|
|
1
|
|
|
|
(9)
|
|
|
|
(15)
|
|
|
|
13
|
|
|
|
(6)
|
|
|
|
(5)
|
|
|
|
(4)
|
|
|
|
-
|
|
|
|
7
|
Amortization of other acquired intangible assets
|
|
|
|
0.08
|
|
|
|
0.08
|
|
|
|
0.05
|
|
|
|
20
|
|
|
|
20
|
|
|
|
12
|
|
|
|
14
|
|
|
|
14
|
|
|
|
8
|
|
|
|
6
|
|
|
|
6
|
|
|
|
4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction-related costs
|
|
|
|
0.21
|
|
|
|
0.19
|
|
|
|
0.10
|
|
|
|
50
|
|
|
|
49
|
|
|
|
25
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
50
|
|
|
|
49
|
|
|
|
25
|
Long-term care guaranty fund assessment
|
|
|
|
-
|
|
|
|
0.32
|
|
|
|
-
|
|
|
|
-
|
|
|
|
83
|
|
|
|
-
|
|
|
|
-
|
|
|
|
68
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
U.S. tax reform
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.78
|
|
|
|
-
|
|
|
|
-
|
|
|
|
196
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(137)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
73
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(39)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
299
|
Adjusted income (loss) from operations
|
|
|
$
|
4.11
|
|
|
$
|
2.77
|
|
|
$
|
1.94
|
|
|
$
|
1,010
|
|
|
$
|
719
|
|
|
$
|
483
|
|
|
$
|
871
|
|
|
$
|
610
|
|
|
$
|
397
|
|
|
$
|
112
|
|
|
$
|
74
|
|
|
$
|
81
|
|
|
$
|
67
|
|
|
$
|
68
|
|
|
$
|
61
|
|
|
$
|
(40)
|
|
|
$
|
(33)
|
|
|
$
|
(56)
|
Weighted average shares (in thousands)
|
|
|
|
245,788
|
|
|
|
259,774
|
|
|
|
249,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items, pre-tax:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction-related costs
|
|
|
|
|
|
|
|
|
|
|
|
$
|
60
|
|
|
$
|
63
|
|
|
$
|
38
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
60
|
|
|
$
|
63
|
|
|
$
|
38
|
Long-term care guaranty fund assessment
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
129
|
|
|
|
-
|
|
|
|
-
|
|
|
|
106
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
23
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
U.S. tax reform
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(56)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(56)
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
$
|
60
|
|
|
$
|
192
|
|
|
$
|
(18)
|
|
|
$
|
-
|
|
|
$
|
106
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
23
|
|
|
$
|
-
|
|
|
$
|
60
|
|
|
$
|
63
|
|
|
$
|
(18)
|
|
(1) Beginning in 2018, includes Cigna's share of the realized
investment results of its joint ventures in China and India.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180503005319/en/
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