07-02-2020

Cigna reveals strong 2019 results

Insurance Alertss
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07-02-2020
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Cigna reveals strong 2019 results

Global health service company Cigna Corporation, is the latest to reveal its 2019 results, reporting that its total revenues were US$153.6 billion (around £118.5 billion), and adjusted revenues were US$140.2 billion (around £108.17 billion) in 2019. In a strong year for the company, shareholders’ net income was US$5.1 billion, or US$13.44 per share, representing a per share growth of 28% over 2018. Adjusted income from operations for 2019 also outstripped the previous year, with a per share growth of 20% since 2018.

Meanwhile, the debt to capitalisation ratio of Cigna decreased to 45.2% at December 31, 2019, from 50.9% at December 31, 2018. Speaking on these results, David M. Cordani, president and chief executive officer at Cigna, said: “In the first year of our combination, as a result of our focus on execution, partnering, and ongoing innovation, Cigna delivered on our commitments to customers, clients, and shareholders.”

The results released today are attributed to focused execution across its businesses and the creation of meaningful value in the first year of the Cigna and Express Scripts combination. Business mix changes resulting from the Express Scripts combination and the health insurance tax suspension were credited with reducing the SG&A expense ration from 23.2% for full year 2018 to 9.3% for full year 2019. Within the business international markets, which include supplemental health, life and accident insurance products and healthcare coverage, the fourth quarter 2019 adjusted revenues showed a 6% growth over fourth quarter 2018.

Within Cigna’s group disability and life businesses, which offers group long-term and short-term disability, and group life, accident, voluntary and specialty insurance products and services, fourth quarter 2019 adjusted income from operations pre-tax and adjusted margin, pre-tax reflected claims favourability in the life business.

Looking to 2020, Cordani said: “Our strong momentum going into 2020 positions us for continued growth, and to deliver sustained value for our customers and clients, as we create greater affordability, predictability and simplicity for their benefit.” Adjusted revenues are projected to be in the range of between US$154 billion to US$156 billion in 2020, representing growth of between 10% to 11% over 2019. Meanwhile adjusted income from operations is projected to be in the range of US$6.8 billion to US$7.0 billion in 2020, or US$18.00 to US$18.60 per share.

Source: Insurance Business Uk