Market Overview

Cigna Reports Strong Second Quarter 2018 Results, Raises Outlook

Share:
  • Total revenues1 increased 10% to $11.5
    billion in the second quarter
  • Shareholders' net income for the second quarter was $806 million,
    or $3.29 per share
  • Adjusted income from operations2 in the
    second quarter was $955 million, or $3.89 per share
  • Adjusted income from operations2,3,4 is
    now projected to grow in the range of 25% to 28%, to $3.34 billion to
    $3.42 billion in 2018, or $13.60 to $13.90 per share
    4

Cigna Corporation (NYSE:CI) today reported second quarter 2018 results,
with strong performance across the company's Global Health Care, Global
Supplemental Benefits, and Group Disability and Life businesses.

"Cigna continues to deliver innovative solutions that expand choice,
transparency and quality for our customers and clients," said David M.
Cordani, President and Chief Executive Officer. "Our strong second
quarter results once again reflect the consistent effective execution of
our global strategy, which will be further enhanced through our pending
combination with Express Scripts."

Total revenues1 in the quarter were $11.5 billion, an
increase of 10% over second quarter 2017, led by continued strong
business growth in Cigna's Global Health Care and Global Supplemental
Benefits segments.

For the second quarter of 2018, shareholders' net income was $806
million, or $3.29 per share, compared with $813 million, or $3.15 per
share, for the second quarter of 2017.

Cigna's adjusted income from operations2 for the second
quarter of 2018 was $955 million, or $3.89 per share, compared with $750
million, or $2.91 per share, for the second quarter of 2017. This
represents per share growth of 34% 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 revenues5 and
shareholders' net income to adjusted income from operations2:

 
Consolidated Financial Results1 (dollars
in millions):
       
Six Months
Three Months Ended Ended
June 30, March 31, June 30,
2018   2017   2018   2018
 
Total Revenues $ 11,477 $ 10,425 $ 11,380 $ 22,857
Net Realized Investment (Gains) Losses   23     (51)     35     58
Consolidated Operating Revenues5 $ 11,500 $ 10,374 $ 11,415 $ 22,915
 
Consolidated Earnings, Net of Taxes
Shareholders' Net Income $ 806 $ 813 $ 915 $ 1,721
Net Realized Investment (Gains) Losses2 22 (34) 25 47
Amortization of Other Acquired Intangible Assets2 18 18 20 38
Special Items2   109     (47)     50     159
Adjusted Income from Operations2 $ 955   $ 750   $ 1,010   $ 1,965
 
Shareholders' Net Income, per share $ 3.29   $ 3.15   $ 3.72   $ 7.01
Adjusted Income from Operations2, per share $ 3.89   $ 2.91   $ 4.11   $ 8.00
 
  • Cash and marketable investments at the parent company were $1.2
    billion at June 30, 2018 and December 31, 2017.
  • Year to date, as of August 1, 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 Results (dollars in millions, customers in thousands):
 
        Six Months
Three Months Ended Ended

June 30,

March 31,

June 30,
2018   2017   2018   2018
 
Operating Revenues $ 9,150 $ 8,192 $ 9,089 $ 18,239
Adjusted Income from Operations2 $ 789 $ 591 $ 871 $ 1,660
Adjusted Margin, After-Tax6 8.6% 7.2% 9.6% 9.1%
 
As of the Periods Ended

June 30,

March 31,

December 31,

Customers:

2018   2017   2018   2017
Commercial 15,752 15,163 15,750 15,420
Government   484     491     484     487
Medical7 16,236 15,654 16,234 15,907
 
Behavioral Care 27,069 26,014 26,998 26,849
Dental 16,506 15,760 16,521 15,801
Pharmacy 8,794 8,902 8,796 8,960
Medicare Part D 771 823 784 821
 
  • Second quarter 2018 operating revenues increased 12% relative to
    second quarter 2017, driven by Commercial customer growth and
    expansion of specialty relationships, as well as premium increases
    consistent with underlying cost trends.
  • Cigna's medical customer base7 at the end of second quarter
    2018 totaled 16.2 million, an increase of 329,000 customers year to
    date, driven by continued organic growth in our Select, Middle Market,
    and Individual segments.
  • Second quarter 2018 adjusted income from operations2 and
    adjusted margin, after-tax6 reflect medical and specialty
    business growth, strong medical cost performance, a lower tax rate and
    favorable prior year reserve development. Prior year reserve
    development for second quarter 2018, first quarter 2018, and second
    quarter 2017 on an after-tax basis was $23 million, $43 million, and
    $36 million, respectively.
  • The Total Commercial medical care ratio8 ("MCR") of 76.3%
    for second quarter 2018 reflects the consistent strong performance of
    our Commercial Employer business, favorability in Individual, the
    pricing effect of the resumption of the health insurance tax, and
    favorable prior year reserve development.
  • The Total Government MCR8 of 83.7% for second quarter 2018
    reflects solid execution in both Medicare Advantage and Part D.
  • The second 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.
  • Global Health Care net medical costs payable9 was
    approximately $2.76 billion at June 30, 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):

       
Six Months
Three Months Ended Ended
June 30, March 31, June 30,
2018   2017   2018   2018
 
Operating Revenues10 $ 1,106 $ 955 $ 1,102 $ 2,208
Adjusted Income from Operations2 $ 118 $ 105 $ 112 $ 230
Adjusted Margin, After-Tax6 10.7% 11.0% 10.2% 10.4%
 
As of the Periods Ended
June 30, March 31, December 31,
2018   2017   2018   2017
 
Policies10 13,604 13,058 13,491 13,138
 
  • Global Supplemental Benefits delivered strong revenue growth and
    margins in second quarter 2018, as we further deepen our customer
    relationships and broaden our distribution capabilities in our
    targeted markets.
  • Second quarter 2018 operating revenues10 grew 16% over
    second quarter 2017, primarily reflecting continued business growth.
  • Second quarter 2018 adjusted income from operations2 and
    adjusted margin, after-tax6 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):

 
        Six Months
Three Months Ended Ended
June 30, March 31, June 30,
2018   2017   2018   2018
 
Operating Revenues $ 1,127 $ 1,112 $ 1,116 $ 2,243
Adjusted Income (Loss) from Operations2 $ 103 $ 83 $ 67 $ 170
Adjusted Margin, After-Tax6 9.1% 7.5% 6.0% 7.6%
 
  • Second quarter 2018 adjusted income from operations2 and
    adjusted margin, after-tax6 reflect solid disability
    performance and favorable life results.

Corporate & Other Operations

Adjusted loss from operations2 for Cigna's remaining
operations is presented below:

 

Financial Results (dollars in millions):

 
        Six Months
Three Months Ended Ended
June 30, March 31, June 30,
2018   2017   2018   2018
 
Corporate & Other Operations $ (55) $ (29) $ (40) $ (95)
 
  • Second quarter 2018 adjusted loss from operations2
    increased relative to second quarter 2017 primarily driven by lower
    corporate tax benefits.

2018 OUTLOOK

Cigna's outlook for full year 2018 consolidated adjusted income from
operations2,3,4 is in the range of $3.34 billion to $3.42
billion, or $13.60 to $13.90 per share. Cigna's outlook excludes the
impact of additional prior year reserve development and potential
effects of any future capital deployment4.

(dollars in millions, except where noted and per share amounts)

   

Projection for Full-
Year Ending
December
31, 2018
2,3,4

   

Change
from Prior
Projection

   
Adjusted Income (Loss) from Operations
Global Health Care $ 2,830 to 2,870 $ + 140 to 160
Global Supplemental Benefits $ 400 to 420 $ + 10
Group Disability and Life $ 330 to 350     $  
Ongoing Businesses $ 3,560 to 3,640     $ + 150 to 170
 
Corporate & Other Operations $ (220)     $  
Consolidated Adjusted Income from Operations $ 3,340 to 3,420     $ + 150 to 170
 
Consolidated Adjusted Income from Operations, per share $ 13.60 to 13.90     $ + 0.65 to 0.75
 

2018 Operating Metrics and Ratios Outlook

Total Revenue Growth

               

Approximately 8%

               

+ 50 bps

 
Full Year Total Commercial Medical Care Ratio8 77.0% to 78.0% - 50 bps

Full Year Total Government Medical Care Ratio8

83.0% to 84.0% - 50 bps

Full Year Global Health Care Operating Expense Ratio8

22.5% to 23.5%

Global Medical Customer Growth7

400,000 to 500,000

 

Customers
 

Full Year Medical Cost Trend11

3.5% to 4.5% - 50 bps
 

Consolidated Adjusted Tax Rate12

24% to 25%
 

The foregoing statements represent the company's current estimates of
Cigna's 2018 consolidated and segment adjusted income from operations2,3,4
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 second quarter
2018 results and discuss full year 2018 outlook beginning at 8:30 a.m.
EDT. A link to the conference call is available at www.cigna.com
under the About Cigna, Investor Relations section.

Earnings Conference Call

The call-in numbers for the conference call are as follows:

            Live Call

(888) 324-7575 (Domestic)

(210) 234-0013 (International)

Passcode: 8022018

 
Replay

(800) 391-9847 (Domestic)

(402) 220-3093 (International)

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 Cigna
Health and Life Insurance Company, Connecticut General Life Insurance
Company, Life Insurance Company of North America, Cigna Life Insurance
Company of New York, or their affiliates. 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 www.cigna.com.
For more information about Cigna's proposed acquisition of Express
Scripts, please visit www.advancinghealthcare.com.

         

Notes:

 

1.

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 August 2, 2018.

 

2.

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.

 

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.

 

3.

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.

 

4.

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.

 

5.

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. Investments gains or losses
are managed based on factors largely unrelated to the underlying
business purpose of each segment and are not indicative of the
underlying performance of our core business operations, so they
are excluded from consolidated operating revenues. See Exhibit 1
for a reconciliation of consolidated operating revenues to total
revenues.

 

6.

Adjusted margin, after-tax, is calculated by dividing adjusted
income (loss) from operations by operating revenues for each
segment.

 

7.

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.

 

8.

Operating ratios are defined as follows:

 

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.

 

Total Government medical care ratio represents medical costs as
a percentage of premiums for Medicare Advantage, Medicare Part D,
and Medicaid products.

 

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.

 

9.

Global Health Care medical costs payable are presented net of
reinsurance and other recoverables. The gross Global Health Care
medical costs payable balance was $3.01 billion as of June 30,
2018 and $2.72 billion as of December 31, 2017.

 

10.

Cigna owns a 50% noncontrolling interest in its China joint
venture and a 49% noncontrolling interest in its India joint
venture. Only Cigna's proportional share of these joint ventures'
earnings is reported in Operating Revenues using the equity method
of accounting under GAAP. The policy counts for the Global
Supplemental Benefits segment do not include the China and India
joint ventures.

 

11.

Medical cost trend includes all U.S. commercial employer
funding arrangements.

 

12.

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.

 

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;
the possibility that the anticipated benefits from the merger cannot be
realized in full, or at all or may take longer to realize than expected;
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 Six Months Ended
June 30, June 30,
          2018     2017         2018     2017
       
REVENUES
 
Premiums $ 9,012 $ 8,057 $ 18,011 $ 16,208
Fees 1,360 1,239 2,713 2,487
Net investment income 352 308 681 611
Mail order pharmacy revenues 758 757 1,475 1,467
Other revenues (2) 13 13 29
Net realized investment gains (losses)   (3)   51   (36)   97
 
Total revenues 11,477 10,425 22,857 20,899
Less: Net realized investment gains (losses) (3) 51 (36) 97
Less: Net realized investment (losses) from equity method
subsidiaries(1)
(20) - (22) -
                                 
Consolidated operating revenues           11,500       10,374         $ 22,915     $ 20,802
 
SHAREHOLDERS' NET INCOME (LOSS)
 
Shareholders' net income (loss) $ 806 $ 813 $ 1,721 $ 1,411
After-tax adjustments to reconcile to adjusted income from
operations:
Net realized investment (gains) losses(1) 22 (34) 47 (65)
Amortization of other acquired intangible assets 18 18 38 38
Special items 109 (47) 159 85
                                 
Adjusted income from operations(2)         $ 955     $ 750         $ 1,965     $ 1,469
 

Adjusted income (loss) from operations by
segment

Global Health Care $ 789 $ 591 $ 1,660 $ 1,201
Global Supplemental Benefits 118 105 230 179
Group Disability and Life   103   83   170   151
Ongoing Operations 1,010 779 2,060 1,531
Corporate and Other (55) (29) (95) (62)
                                 
Total adjusted income from operations(2)         $ 955     $ 750         $ 1,965     $ 1,469
 
DILUTED EARNINGS PER SHARE
 
Shareholders' net income (loss) $ 3.29 $ 3.15 $ 7.01 $ 5.45
After-tax adjustments to reconcile to adjusted income from
operations:
Net realized investment (gains) losses(1) 0.09 (0.13) 0.19 (0.25)
Amortization of other acquired intangible assets 0.07 0.07 0.15 0.15
Special items 0.44 (0.18) 0.65 0.32
                                 
Adjusted income from operations(2)         $ 3.89     $ 2.91         $ 8.00     $ 5.67
Weighted average shares (in thousands)           245,339       258,061           245,564       258,913
Common shares outstanding (in thousands)                           243,340       252,859
 
SHAREHOLDERS' EQUITY at June 30,                         $ 14,743     $ 14,522
 
 
SHAREHOLDERS' EQUITY PER SHARE at June 30,                         $ 60.59     $ 57.43
 
(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, 2Q18   2Q17   1Q18   2Q18   2Q17   1Q18   2Q18   2Q17   1Q18   2Q18   2Q17   1Q18   2Q18   2Q17   1Q18   2Q18   2Q17   1Q18
 
Shareholders' net income (loss) $ 3.29 $ 3.15 $ 3.72 $ 806 $ 813 $ 915 $ 780 $ 599 $ 842 $ 86 $ 101 $ 105 $ 107 $ 97 $ 54 $ (167) $ 16 $ (86)
After-tax adjustments to reconcile to adjusted income (loss) from
operations:
Net realized investment (gains) losses(1) 0.09 (0.13) 0.10 22 (34) 25 (4) (22) 15 27 - 1 (4) (14) 13 3 2 (4)
Amortization of other acquired intangible assets 0.07 0.07 0.08 18 18 20 13 14 14 5 4 6 - - - - - -
Special item:
Transaction-related costs(2)   0.44     (0.18)     0.21     109     (47)     50     -     -     -     -     -     -     -     -     -     109     (47)     50
Adjusted income (loss) from operations $ 3.89   $ 2.91   $ 4.11   $ 955   $ 750   $ 1,010   $ 789   $ 591   $ 871   $ 118   $ 105   $ 112   $ 103   $ 83   $ 67   $ (55)   $ (29)   $ (40)
Weighted average shares (in thousands) 245,339 258,061 245,788
 
Special item, pre-tax:
Transaction-related costs(2) $ 130   $ 16   $ 60   $ -   $ -   $ -   $ -   $ -   $ -   $ -   $ -   $ -   $ 130   $ 16   $ 60
Total $ 130   $ 16   $ 60   $ -   $ -   $ -   $ -   $ -   $ -   $ -   $ -   $ -   $ 130   $ 16   $ 60
 
 
 
(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
Six Months Ended June 30, 2Q18       2Q17   2Q18       2Q17  

2Q18

     

2Q17

  2Q18       2Q17   2Q18       2Q17   2Q18       2Q17
 
Shareholders' net income (loss) $ 7.01 $ 5.45 $ 1,721 $ 1,411 $ 1,622 $ 1,143 $ 191 $ 178 $ 161 $ 156 $ (253) $ (66)
After-tax adjustments to reconcile to adjusted income (loss) from
operations:
Net realized investment (gains) losses(1) 0.19 (0.25) 47 (65) 11 (38) 28 (9) 9 (20) (1) 2
Amortization of other acquired intangible assets 0.15 0.15 38 38 27 28 11 10 - - - -
Special items:
Transaction-related costs(2) 0.65 - 159 2 - - - - - - 159 2
Long-term care guaranty fund assessment   -         0.32     -         83     -         68     -         -     -         15     -         -
Adjusted income (loss) from operations $ 8.00       $ 5.67   $ 1,965       $ 1,469   $ 1,660       $ 1,201   $ 230       $ 179   $ 170       $ 151   $ (95)       $ (62)
Weighted average shares (in thousands) 245,564 258,913
Common shares outstanding as of June 30, (in thousands) 243,340 252,859
 
Special items, pre-tax:
Transaction-related costs(2) $ 190 $ 79 $ - $ - $ - $ - $ - $ - $ 190 $ 79
Long-term care guaranty fund assessment   -         129     -         106     -         -     -         23     -         -
Total $ 190       $ 208   $ -       $ 106   $ -       $ -   $ -       $ 23   $ 190       $ 79
 
(1) Beginning in 2018, includes Cigna's share of the realized
investment results of its joint ventures in China and India.

(2) 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
June 30, 2018 expected to be filed on August 2, 2018.

 

View Comments and Join the Discussion!