Cigna Reports Strong Second Quarter 2018 Results, Raises Outlook
- 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 share4
“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
For the second quarter of 2018, shareholders’ net income was
Cigna's adjusted income from operations2 for the second quarter of 2018 was
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 | |||||||||||
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2018 | 2017 | 2018 | 2018 | |||||||||
Total Revenues | $ | 11,477 | $ | 10,425 | $ | 11,380 | $ | 22,857 | ||||
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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 | ||||
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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 atJune 30, 2018 andDecember 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 | |||||||||||
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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 | ||||||||||||
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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 atJune 30, 2018 and$2.45 billion atDecember 31, 2017 .
Global Supplemental Benefits
This segment includes Cigna’s global individual supplemental health, life and accident insurance business, primarily in
Financial Results (dollars in millions, policies in thousands): |
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Six Months | ||||||||||||
Three Months Ended | Ended | |||||||||||
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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 | ||||||||||||
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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): |
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Six Months | ||||||||||||
Three Months Ended | Ended | |||||||||||
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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): |
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Six Months | ||||||||||||
Three Months Ended | Ended | |||||||||||
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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
(dollars in millions, except where noted and per share amounts) |
Projection for Full- |
Change |
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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 |
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Total Revenue Growth |
Approximately 8% |
+ 50 bps |
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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 |
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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
Earnings Conference Call
The call-in numbers for the conference call are as follows:
Live Call | ||||||
(888) 324-7575 (Domestic) |
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(210) 234-0013 (International) |
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Passcode: 8022018 |
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Replay | ||||||
(800) 391-9847 (Domestic) |
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(402) 220-3093 (International) |
It is strongly suggested you dial in to the conference call by
About Cigna
Notes: |
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1. |
Effective |
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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. |
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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 |
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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. |
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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 |
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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. |
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6. |
Adjusted margin, after-tax, is calculated by dividing adjusted income (loss) from operations by operating revenues for each segment. |
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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. |
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8. |
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 |
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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. |
Global Health Care medical costs payable are presented net of reinsurance and other recoverables. The gross Global Health Care medical costs payable balance was |
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10. |
Cigna owns a 50% noncontrolling interest in its |
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11. |
Medical cost trend includes all |
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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. |
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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; 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.
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COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited) | Exhibit 1 | |||||||||||||||||||
(Dollars in millions, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||
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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 |
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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 |
$ | 14,743 | $ | 14,522 | ||||||||||||||||
SHAREHOLDERS' EQUITY PER SHARE at |
$ | 60.59 | $ | 57.43 | ||||||||||||||||
(1) Beginning in 2018, Cigna's share of the realized investment results of its joint ventures in |
(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). |
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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 |
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 |
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 |
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(2) For additional information related to a one-time tax benefit of approximately |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20180802005132/en/
Source:
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