The Cigna Group saw a 34% decline in profits year over year as the company faces rising costs within its insurance business, according to its fourth quarter earnings report published Jan. 30.
"While higher medical costs in our stop loss product impacted fourth quarter earnings, we are taking corrective actions to address these near-term pressures and we are simultaneously taking steps to further advance our long-term growth strategy," David Cordani, chairman and CEO of The Cigna Group, said.
Total revenues in the fourth quarter were $65.6 billion, up 28% year over year. Total revenues in 2024 were $247 billion, up 27%.
In the fourth quarter, net income was more than $1.4 billion, up 38%. Year-end net income was $3.4 billion, down 34% year over year.
Evernorth revenues rose 33% year over year to $53.7 billion in the fourth quarter. Operational earnings in the fourth quarter were $1.9 billion, and $5.6 billion in 2024.
The insurance side of the business, Cigna Healthcare, reported fourth quarter revenues of nearly $13.3 billion, up 3% from the previous year. Operational income in the fourth quarter was $468 million, and $4.4 billion in 2024.
The company's medical loss ratio was 87.9% in the fourth quarter, compared to 82.2% during the same period last year. In 2024, the company's MLR was 83.2%.
As of Dec. 31, Cigna had 19.1 million total medical members, down 3% year over year. There are 589,000 Medicare Advantage members, which are being sold to Health Care Service Corp. in the first quarter.
The company's projected 2025 revenue is at least $252 billion. Full-year adjusted income from operations is projected to be at least $7.9 billion, or at least $29.50 per share.