The Cigna Group Q1 FY2025 earnings call

• David Cordani highlighted strong first-quarter results, raised full-year EPS guidance, and emphasized the company's focus on building a better healthcare model with actions in access, support, value, accountability, and transparency.
• Brian Evanko discussed new roles, key business drivers like strong growth in EverNorth's Specialty and Care Services and Cigna Healthcare's select segment growth, and initiatives such as EncircleRx, inReachRx, and InGuide for GLP-1s.
• Ann Dennison discussed financial results, raised full-year adjusted EPS outlook, and mentioned the strategic optimization program to advance efficiency initiatives.

EverNorth: First-quarter 2025 revenues grew to $53.7 billion, with pretax adjusted earnings up 5% to $1.4 billion. Specialty and Care Services saw 19% revenue growth to $23.9 billion, and pharmacy benefit services posted solid growth with pretax adjusted earnings up 4% to $544 million. Specialty and Care Services represent about 30% of the company's income, and pharmacy benefit services also around 30%. Cigna Healthcare: First-quarter 2025 revenues were $14.5 billion, pretax adjusted earnings were $1.3 billion. Medical care ratio was 82.2%. The divestiture of Medicare businesses impacted MCR, but excluding that, fundamental results were favorable. Cigna Healthcare generates about 40% of Cigna Corporation's income.

• Raised full-year 2025 adjusted earnings per share outlook to at least $29.60.
• EverNorth expects full-year 2025 pretax adjusted earnings of at least $7.2 billion.
• Cigna Healthcare increased full-year pretax adjusted earnings outlook by $25 million to at least $4.125 billion, with medical care ratio expected in the range of 83.2% to 84.2%.

• Forward-looking statements are subject to risks and uncertainties detailed in the earnings release and SEC reports. The Arkansas bill was mentioned as a risk with potential to reduce access, choice, and affordability by arbitrarily picking winners and losers and eroding these for consumers.

Q: Justin Lake asked about stop-loss cost trend and repricing.

A: Brian Evanko and Ann Dennison discussed stop-loss margin improvement plan tracking to expectations and first-quarter performance tracking to fourth-quarter call expectations.

Q: Charles Rhyee asked about Arkansas bill conflicts and biosimilars.

A: David Cordani opposed the Arkansas bill, emphasized innovation enabled by portfolio breadth, and Brian Evanko discussed Stelara biosimilar progress.

Q: Ann Hynes asked about capital deployment and M&A.

A: David Cordani stated capital deployment strategy remains consistent, with M&A priorities on strategically and financially attractive bolt-on acquisitions.

Q: Andrew Mok asked about EverNorth in Part D market.

A: Brian Evanko discussed specialty drug growth and EverNorth's leadership in clinically intensive specialty business.

Q: Erin Wright asked about inReach and InGuide for GLP-1s.

A: Brian Evanko explained the suite of initiatives addressing access, affordability, and lifestyle changes for GLP-1s.

Q: Josh Raskin asked about select segment stop-loss and Medicare.

A: Brian Evanko and David Cordani discussed select segment funding mix and Medicare market dynamics.

Q: George Hill asked about Medicare MLR impact and recession assumption.

A: Ann Dennison and David Cordani discussed Medicare business impact on MCR and maintained full-year outlook considering economic dynamism