Friday, Cigna Corporation (NYSE:CI) reported fourth-quarter 2023 sales of $ 51.15 billion, up 12% Y/Y, beating the consensus of $48.89 billion, reflecting strong growth across Evernorth Health Services and Cigna Healthcare.
Cigna Healthcare’s fourth quarter adjusted sales increased 17% Y/Y to $13 billion, reflecting customer growth and premium rate increases to cover underlying medical cost trends.
Cigna’s medical cost ratio – or spending on claims as a percentage of premiums – was 82.2% compared to 83.8% a year ago, benefitting from strong performance in the U.S. Healthcare business, including affordability initiatives, effective pricing execution, and favorable stop loss results.
Total premiums during the quarter rose 17% to $11.18 billion.
Also Read: Cigna’s Medicare Business Sale: Health Care Service Could Scoop The Business.
The total number of medical customers grew 10% from December 31, 2022, to 19.78 million, primarily driven by growth in U.S. Healthcare, including fee-based customers, Individual and Family Plans, and Medicare Advantage customers.
Total pharmacy customers increased 5% to 98.57 million.
Revenue from Cigna’s Evernorth unit, engaged in the pharmacy benefit management business, rose 12% to $40.52 billion, reflecting strong organic growth in specialty pharmacy and care solutions.
The adjusted EPS of $6.79, up from $5.02 a year ago, beat the Wall Street estimate of $6.53.
Cigna declared a cash quarterly dividend of $1.40 per share to be paid on March 21, 2024, to shareholders of record as of the close of trading on March 6, 2024. This reflects a 14% increase from the 2023 cash quarterly dividend of $1.23 per share.
Guidance: Cigna forecasts fiscal year 2024 revenues of at least $235 billion and adjusted EPS of at least $28.25 versus consensus of $229.24 billion and $28.26, respectively.
For fiscal year 2024, the company expects around 19.3 million medical customers.
Cigna sees a fiscal year 2024 medical cost ratio of 81.7%-82.7%.
Price Action:Â CI shares are up 4.16% at $320.11 during the premarket session on the last check Friday.
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