The insurer's adjusted revenues were $35.8 billion, more than triple compared to the same metric this time last year.
In its first full year since merging with Express Scripts Holding Co., Cigna Corp. reported total revenues of $153.6 billion and shareholders' net income of $5.1 billion, which was up 28% year-over-year.
According to the company's latest earnings report, Cigna posted adjusted revenues of $140.2 billion during 2019 and adjusted income from operations of $6.5 billion.
The Bloomingfield, Connecticut–based insurer projects its adjusted revenues for fiscal year (FY) 2020 to rise by at least 10% to a range between $154 billion to $156 billion. Similarly, the company expects its adjusted income to be between $6.8 billion to $7 billion for FY 2020.
Cigna's stock reacted positively to the company's earnings report, trading up more than 2.3% in the early morning session.
"In the first year of our combination, as a result of our focus on execution, partnering, and ongoing innovation, Cigna delivered on our commitments to customers, clients, and shareholders," David Cordani, CEO of Cigna, said in a statement. "Our strong momentum going into 2020 positions us for continued growth, and to deliver sustained value for our customers and clients, as we create greater affordability, predictability and simplicity for their benefit."
Cigna finished 2019 with a total medical customer base of more than 17.1 million, with total customer relationships above 171 million.
One major development for Cigna during Q4 was the decision to end its commercial contract with Memorial Hermann Health System.
The contract ends on March 16 but will not affect the company's Medicare Advantage offerings, according to Cigna.
Additionally, New York Life announced a $6 billion cash deal to purchase Cigna's group life and disability coverage segments in mid-December.
For 2019, Cigna reported a cash flow from operations of $9.5 billion, an increase of $5.7 compared to 2018.
ADDITIONAL CIGNA Q4 EARNINGS REPORT HIGHLIGHTS:
- Cigna's SG&A expense ratio decreased from 23.2% in 2018 to 9.3% in 2019.
- The insurer's debt to capitalization ratio fell from 50.9% at the end of 2018 to 45.2% at the end of 2019.
- During 2019, Cigna repurchased 11.8 million shares for $2 billion.
For complete financial information, review Cigna's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: KONSKIE, POLAND - AUGUST 11, 2018: Cigna logo displayed on a modern smartphone - Image / Editorial credit: Piotr Swat / Shutterstock.com