Q2 2024 Cigna Group Earnings Call Transcript
Key Points
- The Cigna Group (CI) reported total revenue of $60.5 billion and adjusted earnings per share of $6.72 for the second quarter of 2024.
- Evernorth Health Services demonstrated continued strength with a 12% year-over-year growth in adjusted income.
- The company began dispensing an interchangeable biosimilar for Humira, offering significant cost savings for patients.
- Cigna Healthcare's US employer foundational growth business continues to perform in line with expectations, with strong client demand.
- The company remains on track to deliver full-year adjusted earnings per share of at least $28.40 for 2024, representing over 13% year-over-year growth.
- The Cigna Group (CI) recorded an after-tax net special item charge of $64 million or $0.23 per share in the second quarter.
- There is increased utilization in the book of business, particularly in facility-based services and mental health care, which could impact costs.
- The company faces challenges in the political and media landscape regarding the cost of pharmaceuticals and the role of pharmacy benefit managers.
- The Medicare Advantage business is in the process of being sold, with the transaction expected to close in the first quarter of 2025.
- The individual exchange business saw a reduction in customer volumes due to necessary pricing actions in certain geographies.
Ladies and gentlemen, thank you for standing by for the Cigna Group second-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 call 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, Chief Financial Officer of the Cigna Group and President and Chief Executive Officer of Cigna Healthcare; 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 second quarter financial results and our financial outlook for 2024. Following their prepared remarks, David, Brian and Eric will be available for Q&A.
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