Q4 2024 Cigna Group Earnings Call Transcript
Key Points
- The Cigna Group (CI) delivered full-year revenue growth of 27% to approximately $247 billion in 2024.
- Full-year adjusted earnings per share increased by 9% year over year to $27.33.
- The company returned $8.6 billion to shareholders through dividends and share repurchase.
- Evernorth, a segment of The Cigna Group (CI), continues to drive strong results, particularly in Specialty and Care Services.
- The Cigna Group (CI) announced initiatives to lower out-of-pocket costs for patients and improve transparency in their pharmacy benefit services.
- Fourth-quarter results were below expectations due to higher-than-expected medical costs in the stop-loss product within Cigna Healthcare.
- The full-year medical care ratio was 83.2%, above the guidance range, indicating higher medical costs.
- The stop-loss product experienced a significant increase in high-cost claimants, impacting margins.
- The company expects a slightly higher medical care ratio for stop-loss in 2025, indicating ongoing cost pressures.
- The divestiture of the Medicare business is expected to impact revenue, with $12 billion removed from 2024 figures.
Ladies, and gentlemen, thank you for standing by for the Cigna Group fourth-quarter 2024 results review. (Operator Instructions) As a reminder, ladies and gentlemen, this conference, including the Q&A session, is being recorded.
We'll begin by turning the conference over to Ralph Giacobbe. Please go ahead.
Thank you. Good morning, everyone. Thanks for joining today's call. I'm Ralph Giacobbe, Senior Vice President of Investor Relations. With me on the line this morning are David Cordani, the Cigna Group's Chairman and Chief Executive Officer; Brian Evanko, Financial Officer of the Cigna Group and President and Chief Executive Officer of Cigna Health Care; and Eric Palmer, President and Chief Executive Officer of Evernorth Health Services.
In our remarks today, David and Brian will cover a number of topics, including our fourth-quarter and full-year 2024 financial results and our financial outlook for 2025. Following their prepared remarks, David, Brian and Eric will be available for Q&A
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