Cigna Corporation

Cigna Corporation delivered a mixed performance in the last quarter with below-par revenues but an earnings beat. The company’s full-year revenue increased to almost $181 billion. Through a mix of dividends and share repurchases, Cigna returned $9 billion to shareholders. They also tightened the international business’s emphasis on health services by selling its life accident and supplemental benefits operations in seven regions. Besides that, Evernorth produced significant top-and-bottom-line growth and expanded as well as renewed a number of significant multiyear client partnerships. Evernorth continued to broaden the scope and impact of its health services, while Cigna Healthcare displayed outstanding resiliency in the volatile market. The company also experienced excellent selling seasons in all market categories and across all funding options, including self-funded risk and shared return agreements. Furthermore, in Evernorth Care Services, Cigna enhanced and expanded its care management and care delivery skills portfolio. The number of MDLIVE virtual patient visits significantly increased, with primary care visits accounting for a sizable portion of this growth. Through VillageMD, Evernorth Care Services is also expanding its capacity for value-based care. Given these strong results, the company anticipates delivering solid growth. We give Cigna Corporation a ‘Hold’ rating with a revised target price.