The Cigna Group reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. Total revenues for the third quarter reached $63.7 billion, marking a 30% increase from $49.0 billion in the same period of 2023. This growth was primarily driven by a 40% rise in pharmacy revenues, which totaled $48.3 billion, up from $34.5 billion a year earlier. For the nine months ended September 30, 2024, total revenues were $181.5 billion, a 26% increase compared to $144.2 billion in the prior year.
Despite the revenue growth, Cigna's net income for the third quarter was $825 million, a decrease of 43% from $1.4 billion in Q3 2023. Shareholders' net income also fell by 48% to $739 million. For the nine-month period, net income was $2.2 billion, down 47% from $4.3 billion in 2023. The decline in profitability was attributed to increased costs, including a $182 million impairment related to VillageMD, and higher medical costs in the U.S. Healthcare segment.
Cigna's operating cash flows for the nine months ended September 30, 2024, were $5.2 billion, significantly lower than $10.3 billion in the same period last year. The company reported net cash used in investing activities of $(1.9 billion), an improvement from $(4.7 billion) in 2023. Financing activities showed cash outflows of $(4.4 billion), compared to $(3.0 billion) in the previous year.
Strategically, Cigna announced an agreement in January 2024 to sell its Medicare Advantage and related businesses to Health Care Service Corporation for approximately $3.7 billion, pending regulatory approvals. This transaction is expected to close in the first quarter of 2025. The company also engaged in accelerated share repurchase agreements, repurchasing $3.2 billion of common stock, totaling approximately 9.3 million shares.
Cigna's total assets held for sale increased to $6.9 billion as of September 30, 2024, up from $6.0 billion at the end of 2023. The company’s accounts receivable rose significantly to $29.4 billion, compared to $18.8 billion at the end of 2023, reflecting higher receivables from pharmaceutical manufacturers.
Overall, while Cigna experienced substantial revenue growth, its profitability faced challenges due to increased costs and strategic impairments, alongside significant operational changes and a focus on divestitures.
About Cigna Group
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