Delaware
(State or other jurisdiction of incorporation)
|
1‑08323
(Commission File Number)
|
06‑1059331
(IRS Employer
Identification No.)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communication pursuant to Rule 13e-49(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 9.01
|
Financial Statements and Exhibits.
|
|
|
(d)
|
Exhibits.
|
|
|
Exhibit No.
|
Description
|
99.1
|
Cigna Corporation
|
||
Date: August 2, 2018
|
By:
|
/s/ Eric P. Palmer
|
Eric P. Palmer
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
NEWS RELEASE
|
Contact:
|
Will McDowell, Investor Relations – (215) 761-4198
|
Matt Asensio, Media Relations – (860) 226-2599
|
o |
Total revenues1 increased 10% to $11.5 billion in the second quarter
|
o |
Shareholders’ net income for the second quarter was $806 million, or $3.29 per share
|
o |
Adjusted income from operations2 in the second quarter was $955 million, or $3.89 per share
|
o |
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
|
Consolidated Financial Results1 (dollars in millions):
|
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended
|
Six Months
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.
|
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.
|
|
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.
|
|
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.
|
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.
|
(dollars in millions, except where noted and per share amounts)
|
Projection for Full-
Year Ending
|
Change
from Prior
|
||||
|
|
December 31, 2018 2,3,4
|
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
|
||
Full Year Medical Cost Trend11
Consolidated Adjusted Tax Rate12
|
|
|
Customers
3.5% to 4.5%
24% to 25%
|
- 50 bps
|
Live Call
|
|
(888) 324-7575 (Domestic)
|
|
(210) 234-0013 (International)
|
|
Passcode: 8022018
|
|
Replay
|
|
(800) 391-9847 (Domestic)
|
|
(402) 220-3093 (International)
|
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.
|
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.
|
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
Earnings
Per Share |
Consolidated
|
Global
Health Care
|
|||||||
Three Months Ended,
|
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
|
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
|
Amortization of other acquired intangible assets
|
0.07
|
0.07
|
0.08
|
18
|
18
|
20
|
13
|
14
|
14
|
Special item:
|
|||||||||
Transaction-related costs(2)
|
0.44
|
(0.18)
|
0.21
|
109
|
(47)
|
50
|
-
|
-
|
-
|
Adjusted income (loss) from operations
|
$ 3.89
|
$ 2.91
|
$ 4.11
|
$ 955
|
$ 750
|
$ 1,010
|
$ 789
|
$ 591
|
$ 871
|
Weighted average shares (in thousands)
|
245,339
|
258,061
|
245,788
|
||||||
Special item, pre-tax:
|
|||||||||
Transaction-related costs(2)
|
$ 130
|
$ 16
|
$ 60
|
$ -
|
$ -
|
$ -
|
|||
Total
|
$ 130
|
$ 16
|
$ 60
|
$ -
|
$ -
|
$ -
|
|||
(Dollars in millions, except per share amounts)
|
|
||||||||
Diluted
Earnings
Per Share
|
Consolidated
|
Global
Health Care
|
|||||||
Six Months Ended June 30,
|
2Q18
|
2Q17
|
2Q18
|
2Q17
|
2Q18
|
2Q17
|
|||
Shareholders' net income (loss)
|
$ 7.01
|
$ 5.45
|
$ 1,721
|
$ 1,411
|
$ 1,622
|
$ 1,143
|
|||
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)
|
|||
Amortization of other acquired intangible assets
|
0.15
|
0.15
|
38
|
38
|
27
|
28
|
|||
Special items:
|
|||||||||
Transaction-related costs(2)
|
0.65
|
-
|
159
|
2
|
-
|
-
|
|||
Long-term care guaranty fund assessment
|
-
|
0.32
|
-
|
83
|
-
|
68
|
|||
Adjusted income (loss) from operations
|
$ 8.00
|
$ 5.67
|
$ 1,965
|
$ 1,469
|
$ 1,660
|
$ 1,201
|
|||
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
|
$ -
|
$ -
|
|||||
Long-term care guaranty fund assessment
|
-
|
129
|
-
|
106
|
|||||
Total
|
$ 190
|
$ 208
|
$ -
|
$ 106
|
(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.
|
||||||||||||||||||
CIGNA CORPORATION
|
|||||||||
RECONCILIATION OF SHAREHOLDERS' NET INCOME (LOSS) TO ADJUSTED INCOME FROM OPERATIONS
|
Exhibit 2
|
||||||||
(Dollars in millions, except per share amounts)
|
Global
|
Group
|
Corporate
|
||||||
Supplemental
|
Disability
|
and
|
|||||||
Benefits
|
and Life
|
Other
|
|||||||
Three Months Ended,
|
2Q18
|
2Q17
|
1Q18
|
2Q18
|
2Q17
|
1Q18
|
2Q18
|
2Q17
|
1Q18
|
Shareholders' net income (loss)
|
$ 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)
|
27
|
-
|
1
|
(4)
|
(14)
|
13
|
3
|
2
|
(4)
|
Amortization of other acquired intangible assets
|
5
|
4
|
6
|
-
|
-
|
-
|
-
|
-
|
-
|
Special item:
|
|||||||||
Transaction-related costs(2)
|
-
|
-
|
-
|
-
|
-
|
-
|
109
|
(47)
|
50
|
Adjusted income (loss) from operations
|
$ 118
|
$ 105
|
$ 112
|
$ 103
|
$ 83
|
$ 67
|
$ (55)
|
$ (29)
|
$ (40)
|
Weighted average shares (in thousands)
|
|||||||||
Special item, pre-tax:
|
|||||||||
Transaction-related costs(2)
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ 130
|
$ 16
|
$ 60
|
Total
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ -
|
$ 130
|
$ 16
|
$ 60
|
(Dollars in millions, except per share amounts)
|
|
|
|
||||||
Global
Supplemental
Benefits
|
Group
Disability
and Life
|
Corporate
and
Other
|
|||||||
Six Months Ended June 30,
|
2Q18
|
2Q17
|
2Q18
|
2Q17
|
2Q18
|
2Q17
|
|||
Shareholders' net income (loss)
|
$ 191
|
$ 178
|
$ 161
|
$ 156
|
$ (253)
|
$ (66)
|
|||
After-tax adjustments to reconcile to adjusted income (loss) from operations:
|
|||||||||
Net realized investment (gains) losses(1)
|
28
|
(9)
|
9
|
(20)
|
(1)
|
2
|
|||
Amortization of other acquired intangible assets
|
11
|
10
|
-
|
-
|
-
|
-
|
|||
Special items:
|
|||||||||
Transaction-related costs(2)
|
-
|
-
|
-
|
-
|
159
|
2
|
|||
Long-term care guaranty fund assessment
|
-
|
-
|
-
|
15
|
-
|
-
|
|||
Adjusted income (loss) from operations
|
$ 230
|
$ 179
|
$ 170
|
$ 151
|
$ (95)
|
$ (62)
|
|||
Weighted average shares (in thousands)
|
|||||||||
Common shares outstanding as of June 30, (in thousands)
|
|||||||||
Special items, pre-tax:
|
|||||||||
Transaction-related costs(2)
|
$ -
|
$ -
|
$ -
|
$ -
|
$ 190
|
$ 79
|
|||
Long-term care guaranty fund assessment
|
-
|
-
|
-
|
23
|
-
|
-
|
|||
Total
|
$ -
|
$ -
|
$ -
|
$ 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.
|
||||||||||||||||||
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