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Cigna Reports Strong First Quarter 2022 Results, Raises 2022 Outlook

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Global health services company Cigna Corporation (NYSE: CI) today reported strong first quarter 2022 results reflecting revenue and earnings growth across its businesses.

“We’ve had a strong start to the year as we advance our growth strategy and support the health and well-being of our clients and customers,” said David M. Cordani, chairman and chief executive officer. “We’re taking decisive steps forward with innovation, new partnerships and re-investing in our company so we can achieve greater impact for the customers and communities we’re privileged to serve.”

Total revenues for first quarter 2022 were $44.0 billion. Adjusted revenues1 were $44.1 billion and reflect strong contributions from each of Cigna’s ongoing businesses.

Shareholders’ net income for first quarter 2022 was $1.2 billion, or $3.68 per share, compared with $1.2 billion, or $3.30 per share, for first quarter 2021.

Cigna’s adjusted income from operations2 for first quarter 2022 was $1.9 billion, or $6.01 per share, compared with $1.7 billion, or $4.73 per share, for first quarter 2021 reflecting strong earnings contributions across the Company’s businesses.

Reconciliations of total revenues to adjusted revenues1 and of shareholders’ net income to adjusted income from operations2 are provided on the following page and on Exhibit 1 of this earnings release.

CONSOLIDATED HIGHLIGHTS

The following table includes highlights of results and reconciliations of total revenues to adjusted revenues1 and shareholders’ net income to adjusted income from operations2:

Consolidated Financial Results (dollars in millions):

Three Months Ended

March 31,

December 31,

2022

2021

2021

Total Revenues

$           44,005

$           40,971

$           45,688

Net Realized Investment (Gains) Losses from
Equity Method Investments1

103

14

(12)

Adjusted Revenues1

$           44,108

$           40,985

$           45,676

Consolidated Earnings, net of taxes

Shareholders’ Net Income

$             1,183

$             1,161

$             1,116

Net Realized Investment (Gains) Losses2

355

13

(59)

Amortization of Acquired Intangible Assets2

356

388

326

Special Items2

37

102

189

Adjusted Income from Operations2

$             1,931

$             1,664

$             1,572

Shareholders’ Net Income, per share 

$               3.68

$               3.30

$               3.39

Adjusted Income from Operations2, per share 

$               6.01

$               4.73

$               4.77

  • Year to date through May 5, 2022, the Company repurchased 7.6 million shares of common stock for approximately $1.8 billion.
  • The debt-to-capitalization ratio was 41.9% at March 31, 2022, in line with fourth quarter 2021.
  • The adjusted SG&A expense ratio4 was 7.4% for first quarter 2022 compared to 8.0% for first quarter 2021, driven by revenue growth and continued expense efficiency.

CUSTOMER RELATIONSHIPS

The following table summarizes Cigna’s medical customers and overall customer relationships:

Customer Relationships (in thousands):

As of the Periods Ended

March 31,

December 31,

2022

2021

2021

Total Customer Relationships5

190,370

177,607

185,672

Total Pharmacy Customers

107,440

101,002

107,298

U.S. Commercial

14,621

13,552

13,854

U.S. Government

1,402

1,464

1,510

International Health

1,756

1,655

1,717

Total Medical Customers5,6

17,779

16,671

17,081

Behavioral Care

44,078

38,950

40,380

Dental

18,169

17,800

17,731

Medicare Part D

2,904

3,184

3,182

  • Total customer relationships5 at first quarter 2022 grew by 3% year to date to 190.4 million.
  • The total medical customer base5,6 at first quarter 2022 grew to 17.8 million, an increase of 698,000 customers year to date, driven by growth in U.S. Commercial fee-based client relationships, partially offset by a decrease in U.S. Government inclusive of the divestiture of the Medicaid business.

HIGHLIGHTS OF SEGMENT RESULTS

See Exhibit 1 for a reconciliation of adjusted income (loss) from operations2 to shareholders’ net income.

Evernorth

This segment includes a broad range of coordinated and point solution health services and capabilities, including pharmacy solutions, benefits management solutions, care delivery and care management solutions, and intelligence solutions, which are provided to health plans, employers, government organizations, and health care providers.

Financial Results (dollars in millions):

Three Months Ended

March 31,

December 31,  

2022

2021

2021

Adjusted Revenues1

$           33,586

$           30,620

$           35,086

Adjusted Income from Operations, Pre-Tax2

$             1,302

$             1,223

$             1,634

Adjusted Margin, Pre-Tax7

3.9%

4.0%

4.7%

  • First quarter 2022 adjusted revenues1 increased 10% relative to first quarter 2021 reflecting strong organic growth in specialty pharmacy services.
  • First quarter 2022 adjusted income from operations, pre-tax2 increased 6% relative to first quarter 2021, reflecting continued affordability improvements and business growth, partially offset by strategic investments in expanding our services portfolio and digital capabilities.

Cigna Healthcare6

This segment includes Cigna’s U.S. Commercial, U.S. Government, and International Health businesses that provide comprehensive medical and coordinated solutions to clients and customers. U.S. Commercial products and services include medical, pharmacy, behavioral health, dental, vision, health advocacy programs and other products and services for insured and self-insured customers. U.S. Government solutions include Medicare Advantage, Medicare Supplement, and Medicare Part D plans for seniors, and individual health insurance plans both on and off the public exchanges. International Health solutions include health care coverage in our international markets, as well as health care benefits for globally mobile individuals and employees of multinational organizations.

Financial Results (dollars in millions):

Three Months Ended

March 31,

December 31,  

2022

2021

2021

Adjusted Revenues1,8

$            11,392

$            11,067

$            11,214

Adjusted Income from Operations, Pre-Tax2

$              1,279

$              1,042

$                472

Adjusted Margin, Pre-Tax7

11.2%

9.4%

4.2%

  • First quarter 2022 adjusted revenues1,8 grew 3% over first quarter 2021, reflecting increased specialty contributions and premium increases to cover underlying cost trends, partially offset by the divestiture of the Medicaid business.
  • First quarter 2022 adjusted income from operations, pre-tax2 and adjusted margin, pre-tax7 increased relative to first quarter 2021 primarily due to increased specialty contributions.
  • The Cigna Healthcare MCR4 of 81.5% for first quarter 2022 compares to 80.9% for first quarter 2021, reflecting risk adjustment updates related to prior years and higher medical costs in the Individual business, partially offset by lower direct COVID-19 costs.
  • Cigna Healthcare net medical costs payable9 was $4.29 billion at March 31, 2022, $3.79 billion at March 31, 2021, and $4.00 billion at December 31, 2021. Favorable prior year reserve development on a gross pre-tax basis was $276 million and $233 million through first quarter 2022 and 2021, respectively.

Corporate and Other Operations6

Corporate reflects interest expense, as well as amounts not allocated to operating segments and includes intersegment eliminations. Additionally, this discussion includes items reported in Other Operations which is comprised of the international life, accident, and supplemental benefits businesses held for sale pending divestiture6, Corporate Owned Life Insurance (“COLI”), our interest in a joint venture in Turkey and the Company’s run-off operations.

Financial Results (dollars in millions):

Three Months Ended

March 31,

December 31,

2022

2021

2021

Adjusted (Loss) from Operations, Pre-Tax2

$              (117)

$              (123)

$              (115)

  • First quarter 2022 adjusted loss from operations, pre-tax2 was favorable to first quarter 2021 primarily reflecting lower interest expense.

2022 OUTLOOK

Cigna’s outlook for full year 2022 adjusted revenues1,3 is projected to be at least $177 billion. Cigna’s outlook for full year 2022 consolidated adjusted income from operations2,3 is projected to be at least $7.05 billion, or at least $22.60 per share3. Additionally, this outlook includes the impact of expected future share repurchases, anticipated 2022 dividends, and assumes that the previously announced divestiture of our international life, accident, and supplemental benefits businesses6 will close in the second quarter of 2022.

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

2022 Consolidated Metrics

Projection for Full Year Ending

December 31, 2022

Change from

Prior Projection

Adjusted Revenues1,3

at least $177,000

Adjusted Income from Operations2,3

at least $7,050

+$100

Adjusted Income from Operations, per share2,3

at least $22.60

+$0.20

Adjusted SG&A Expense Ratio3,4

6.9% to 7.3%

Adjusted Tax Rate3,10

22.0% to 22.5%

Cash Flow from Operations3

at least $8,250

Weighted Average Shares Outstanding (millions)3

310 to 314

+2.0 at the midpoint

2022 Evernorth Metrics

Adjusted Income from Operations, Pre-Tax2,3

~$6,100

2022 Cigna Healthcare Metrics

Adjusted Income from Operations, Pre-Tax2,3

~$3,950

+$50

Medical Care Ratio3,4

82.0% to 83.5%

Total Medical Customer Growth (lives)3,5

at least 725,000

+150,000

The foregoing statements represent the Company’s current estimates of Cigna’s 2022 consolidated and segment adjusted income from operations2,3 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 (https://investors.cigna.com/home/default.aspx).  Management will be hosting a conference call to review first quarter 2022 results and discuss full year 2022 outlook beginning today at 8:30 a.m. ET.  A link to the conference call is available in the Investor Relations section of Cigna’s website located at https://investors.cigna.com/events-and-presentations/default.aspx.

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

Live Call
            (888) 455-5036   (Domestic)
            (773) 799-3981   (International)
            Passcode: 562022

Replay
            (866) 357-1405   (Domestic)
            (203) 369-0111   (International)

It is strongly suggested you dial in to the conference call by 8:15 a.m. ET.

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IG Canada Announces Enhanced Trading Platform for Enhanced User Experience

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Meta description : Explore IG Canada’s advanced trading platform, educational resources, and robust security features. Achieve your trading goals with the innovative tools.
NOTTINGHAM, England, April 25, 2024 /PRNewswire/ — IG Canada, a premier online trading platform, is pleased to announce significant enhancements to its trading technology, designed to empower both novice and experienced traders with superior tools and resources. This development is part of IG Canada’s commitment to providing the best trading experience in the Canadian market.

IG Canada has upgraded its platform with advanced features that streamline trading processes and improve the accuracy of trade execution. These enhancements include customizable charts, a wider range of indicators, and improved mobile access, ensuring traders can operate efficiently from anywhere at any time.
Recognizing the importance of education in trading success, IG Canada has expanded its educational resources. The brokerage now offers a comprehensive learning center featuring webinars, tutorials, and articles that cater to various skill levels. These resources are designed to help traders develop robust trading strategies and improve their market knowledge.
Security remains a top priority for IG Canada. The latest updates include enhanced encryption and multi-factor authentication to protect client data and funds. These security measures provide peace of mind for traders, knowing their investments are safeguarded against potential threats.
IG Canada is a leading online brokerage that provides trading services across multiple asset classes, including forex, stocks, commodities, and indices. With a focus on innovation and customer service, IG Canada is committed to helping Canadian traders achieve their investment goals through a transparent and efficient trading environment.
In addition, IG Canada is committed to engaging with the community through upcoming webinars, live events, and partnerships with local financial experts. These initiatives are designed not only to support the growth and education of the clients but also to foster a stronger, more connected trading community in Canada.
Press Contact:Contact Name: Timothy C. SherwinEmail: [email protected] Phone: +447 441425053

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Sentrycs Now Part of the UK National Protective Security Authority Catalog of Security Equipment

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This inclusion into the NPSA CSE marks a significant milestone in the company’s commitment to enhancing national and international airspace security and to leading the C-UAS market toward multi-layer strategy optimization and excellence.
TEL-AVIV, Israel, April 25, 2024 /PRNewswire/ — Sentrycs, a leading innovator in adaptive counter-drone solutions, is proud to announce its inclusion in the prestigious UK National Protective Security Authority Catalogue of Security Equipment (NPSA CSE).
 
Following a rigorous assessment process, Sentrycs’ cutting-edge Counter Unmanned Aerial Systems (C-UAS) solution has met the high standards set by the NPSA for Detection, Tracking, and Identification (DTI). The testing, conducted at the NPSA’s designated testing facilities in August 2023, rigorously evaluated the Sentrycs system against the NPSA’s DTI Testing and Evaluation Standard v3.1.
Sentrycs elected to be assessed under Configuration D as a 3D system with Ground Control Station (GCS) detection capability and platform identification capability, which is the most demanding test scenario with the highest number of scored parameters.
The Sentrycs system demonstrated exceptional capabilities in various security scenarios, showcasing its robustness in detecting and tracking with high accuracy and zero false alarms. The system’s innovative use of cyber techniques to extract data from targets and its streamlined human-machine interface were especially noted for their efficiency and ease of use.
“Our team is proud to have Sentrycs recognized by the UK National Protective Security Authority,” said Yoav Zaltzman, CEO of Sentrycs. “Being listed in the CSE is not just an honor; it’s a testament to our technology’s reliability and effectiveness in contributing to the ever-changing airspace security landscape.”
Sentrycs’ technology is now accessible through the NPSA CSE, providing security practitioners with verified solutions that meet the UK’s rigorous security standards. This inclusion not only underscores Sentrycs’ role in advancing security technology but also enhances its visibility and credibility on a global stage.
For more details on Sentrycs’ solutions and their impact, visit www.sentrycs.com.
For further information regarding the NPSA and the Catalog of Security Equipment, please visit the NPSA’s official website.
About Sentrycs
Sentrycs is a leader in adaptive counter-drone solutions, supported by innovative technology designed to passively identify, mitigate, and where necessary, intercept unauthorized drones custom-built for various environments – including airports, borders, prisons, critical infrastructure, and mass events. Founded in 2017, Sentrycs’ has offices in Israel and the US, serving customers worldwide. By uniting its field-proven technology and expertise in global drone environments, Sentrycs is leading the way towards a safer and more secure drone-driven future. Learn more at www.sentrycs.com
Video – https://www.youtube.com/watch?v=YBuhpTq5QuM

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Homestyler to Recruit First Batch of Global Partners in 20 Countries

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MILAN, April 25, 2024 /PRNewswire/ — Homestyler, a leading all-in-one 3D Design platform and creative community for global designers invested by Easyhome New Retail Group and Alibaba Group, successfully hosted the Homestyler Global Partners Conference and Gorgeous Home Imported Brand Investment Promotion Conference from April 18 to 19 on the sidelines of the 2024 Salone del Mobile Milano, the world’s leading furniture fair.

Easyhome is at the forefront, driving the transformation of the home furnishing industry into a full-service platform. It has developed a tailored solution for global brands called Gorgeous Home, which includes supportive policies and has established local distribution and service networks in international markets. During the conference, Homestyler unveiled a suite of digital products enhanced by 3D and AI technologies, including cloud-based design tools, virtual livestreaming that can alter and restore furnishing scenes to true-to-life scale, a 3D Floor Planner, a 3D Virtual Studio, and a 3D Interactive Panorama, among others. The event also marked the signing ceremony with the first group of global partners.
The Global Partners Program is a key milestone of Homestyler’s roadmap towards global commercialization. It has established close partnerships with around 1,000 global home furnishing companies and design institutions to provide solutions for digital transformation. The first global partners from more than 20 countries and regions will collaborate to explore content creation and marketing potential to deliver effective growth.
In addition, Homestyler shared the unique advantages of its software and cloud designing tools, particularly in cloud rendering, free modeling capabilities, 3D model and material libraries, one-stop workflow, and user-friendliness.
“The core technologies and products of Homestyler extend through all links both online and offline and deeply converge physical experience with digital technologies, such as attracting customers, content design and creation, interactive scene, check-out tracking and more, and we continue to optimize and enhance the 3D scenario shopping experience to empower the transformation and upgrading of the global home furnishing industry,” said Ma Xingjian, head of Homestyler’s overseas business.
Looking ahead, Easyhome and Homestyler aims to establish an international service, regional distribution and dealership system, serving as a bridge between global designers and home furnishing companies worldwide to enable designers residing in different countries and regions to highlight their 3D design solutions and boost shopping experience for the consumers.
As a creative hub for global designers, Homestyler continually expands its model library with home furnishing products from around the world and provides the latest in 3D and AI technologies to help companies promote their products across various channels. Companies such as P Life Concept London, Lahoma Ltd., and Tecnobit S.r.l. are leveraging Homestyler products to enhance the online shopping experience and increase efficiency on their websites. Homestyler plans to introduce more B2B digital products and services, including advanced 3D tools for designing, modeling, rendering, virtual studio shooting, and livestreaming. “Homestyler will further advance our international development: we are planning to establish industry-academy cooperation with Italy’s top design institution, the Polytechnic University of Milan, and the relationship with ADI. With the launch of Global Partners Program, Homestyler will continue to invest in supporting policies and boost international influence through various cooperation programs, to achieve the goal of providing better design services for users globally,” said Xu Min, general manager of Homestyler.
For more information, please visit https://www.homestyler.com.
About Homestyler
Homestyler was jointly invested in by Easyhome New Retail Group and Alibaba Group. It is dedicated to provide 3D cloud design tools for designers worldwide and delivering a comprehensive suite of 3D+AI digital solutions to the furniture and home furnishing industry.

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