Cigna Group 8-K, filed Dec 10, 2020
Cigna Group (CI)
About this 8-K
Cigna Group filed this 8-K on December 10, 2020.
Items reported
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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| Item 7.01 | Regulation FD Disclosure. |
Press Release
On December 10, 2020, Cigna Corporation (“Cigna”) issued the attached press release announcing certain leadership changes.
Update on Sale of U.S. Group Disability and Life Business
Cigna previously disclosed that it expected the sale of its U.S. Group Disability and Life business to New York Life Insurance Company to close in the fourth quarter of 2020, subject to customary closing conditions, including receipt of necessary regulatory approvals. All required regulatory approvals now have been received. Accordingly, the transaction is expected to close on December 31, 2020 in accordance with the acquisition agreement.
Outlook Reaffirmation
Cigna is reaffirming projected full year 2020 consolidated adjusted revenues of approximately $158 billion and projected full year 2020 consolidated adjusted income from operations on a per share basis in the range of $18.30 to $18.60. Cigna remains committed to its target of achieving consolidated adjusted income from operations on a per share basis of $20.00 to $21.00 in 2021.
Cigna previously discussed its full year 2020 outlook in its press release and investor presentation dated November 5, 2020 and during the related investor conference call. The press release, presentation and the conference call transcript are available in the Investor Relations section of Cigna’s website located at www.cigna.com/about-us/investor-relations. Forward-looking statements in these documents and the related call speak only as of the date they were made.
Adjusted revenues is defined as total revenues excluding net realized investment results from equity method investments and special items. Cigna excludes these items from total revenues because they are not indicative of past or future underlying performance of the business. Adjusted income from operations is defined as shareholders’ net income excluding the following adjustments: net realized investment results, amortization of acquired intangible assets and special items. Adjusted income from operations is a measure of profitability used by Cigna’s management because it presents the underlying results of operations of Cigna’s businesses and permits analysis of trends in underlying revenue, expenses and shareholders’ net income. These consolidated measures are not determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and should not be viewed as a substitute for the most directly comparable GAAP measure, shareholders’ net income. Management is not able to provide a reconciliation of adjusted revenues to total revenues or adjusted income from operations to shareholders’ net income on a forward-looking basis because we are unable to predict certain components thereof including (i) future net realized investment results (from equity method investments with respect to adjusted revenues) 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 and total revenues could vary materially.
This information, including the press release attached to this Form 8-K, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act whether made before or after the date of this report, except as shall be expressly set forth by specific reference in such a filing.
CAUTIONARY STATEMENT FOR PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This Report and oral statements made with respect to information contained in this Report, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on Cigna's current expectations and projections about future trends, events and uncertainties. These statements are not historical facts. Forward-looking statements include, among others, statements relating to projected full year 2020 consolidated adjusted revenues and projected full year 2020 consolidated adjusted income from operations on a per share basis, targeted consolidated adjusted income from operations on a per share basis in 2021, and the expected closing of the sale of the Group Disability and Life business, as well as statements concerning future financial or operating performance, including our ability to deliver affordable, personalized and innovative solutions for our customers and clients, in light of the challenges presented by the COVID-19 pandemic; future growth, business strategy, strategic or operational initiatives, including our organizational efficiency plan; economic, regulatory or competitive environments, particularly with respect to the pace and extent of change in these areas; financing or capital deployment plans and amounts available for future deployment; our prospects for growth in the coming years; strategic transactions, including the merger (“Merger”) with Express Scripts Holding Company; our ongoing operational response to the COVID-19 pandemic; and other statements regarding Cigna’s future beliefs, expectations, plans, intentions, financial condition or performance. You may identify forward-looking statements by the use of words such as “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “may,” “should,” “will” or other words or expressions of similar meaning, although not all forward-looking statements contain such terms.
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Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Such risks and uncertainties include, but are not limited to: our ability to achieve our financial, strategic and operational plans or initiatives; our ability to predict and manage medical and pharmacy costs and price effectively; our ability to adapt to changes or trends in an evolving and rapidly changing industry; our ability to effectively differentiate our products and services from those of our competitors and maintain or increase market share; our ability to develop and maintain good relationships with physicians, hospitals, other health care providers, producers, consultants and pharmaceutical manufacturers; changes in the pharmacy provider marketplace or pharmacy networks; changes in drug pricing; the impact of modifications to our operations and processes; our ability to identify potential strategic transactions and realize the expected benefits (including anticipated synergies) of such transactions in full or within the anticipated time frame, including with respect to the Merger, as well as our ability to integrate or separate operations, resources and systems; the substantial level of government regulation over our business and the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of litigation, regulatory audits, investigations, actions or guaranty fund assessments; uncertainties surrounding participation in government-sponsored programs such as Medicare; the effectiveness and security of our information technology and other business systems and those of our key suppliers or other third parties; the impact of our debt service obligations on the availability of funds for other business purposes; unfavorable industry, economic or political conditions, including foreign currency movements; acts of civil unrest, war, terrorism, natural disasters or pandemics; reinsurance credit risk, the scale and scope of the COVID-19 pandemic and its potential impact on our business, operating results, cash flows and financial condition, as well as on our employees, clients, customers, suppliers and partners and on the U.S. and global economies, as well as more specific risks and uncertainties discussed in our most recent report on Form 10-K, as supplemented by our quarterly report on Form 10-Q for the period ended March 31, 2020 and subsequent reports on Forms 10-Q and 8-K available through the Investor Relations section of www.cigna.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Cigna undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press release dated December 10, 2020. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL). |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Cigna Corporation | ||
| Date: December 10, 2020 | By: | /s/ Eric P. Palmer |
| Eric P. Palmer | ||
|
Executive Vice President and Chief Financial Officer | ||
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| Press Release |  |
Cigna announces Leadership Changes to
accelerate next phase of growth
| · | Eric Palmer becomes president and chief operating officer of Evernorth |
| · | Brian Evanko becomes chief financial officer of Cigna Corporation |
| · | Matt Manders assumes leadership of government business as president, government and solutions of Cigna Corporation |
| · | Everett Neville promoted to executive vice president, strategy and business development of Cigna Corporation |
| · | Aparna Abburi promoted to president, Medicare |
| · | Amy Bricker promoted to president, Express Scripts |
BLOOMFIELD, Conn., Dec. 10, 2020 – Cigna Corporation (NYSE: CI) today announced leadership changes designed to accelerate the company’s growth through its two power brands, Cigna and Evernorth. Effective Jan. 1, 2021, Eric Palmer will become the president and chief operating officer of Evernorth; Brian Evanko will become executive vice president and chief financial officer of Cigna Corporation; Matt Manders will assume the role of president, government and solutions of Cigna Corporation; Everett Neville will assume the role of executive vice president, strategy and business development of Cigna Corporation; Aparna Abburi will assume the role of president, Medicare; and Amy Bricker will assume the role of president, Express Scripts.
“The depth and breadth of our leadership talent are a key strength of our organization,” said David M. Cordani, president and chief executive officer, Cigna Corporation. “These leaders have a track record of driving growth, and a relentless focus on supporting the diverse needs of all those we serve around the world by delivering on our promise of making health care more affordable, predictable, and simple. I am pleased that our long-standing commitment to talent development allows us to strategically place our seasoned team of leaders in key positions that will maximize value-creation and value-generation for our customers, clients, and shareholders.”
Eric Palmer named president and chief operating officer of Evernorth
Palmer has been named president and chief operating officer of Evernorth. In this new role, Palmer will have oversight of Evernorth’s pharmacy services, care management services and benefit management services. He will remain a member of Cigna Corporation’s enterprise leadership team, and will report to Tim Wentworth, chief executive officer of Evernorth.
Palmer joined the company in 1998, and currently serves as chief financial officer. Over the course of his more than 22 years at Cigna, Palmer has held multiple key finance and actuarial leadership roles, and contributed to the success of the combination of Cigna and Express Scripts, as well as the launch of Evernorth. Palmer’s market perspective, deep business experience and focus on value creation make him uniquely suited to lead Evernorth operations through its new and exciting chapter of growth.
Brian Evanko named executive vice president and chief financial officer of Cigna
Evanko has been named the new chief financial officer of Cigna Corporation. As CFO, Evanko will assume leadership for all of Cigna Corporation's financial operations and functions, including the company’s investment management and underwriting units. He will continue to report to David Cordani.
Evanko joined Cigna in 1998, and currently serves as president, government business, where he led the growth strategy for each of its businesses. Evanko has held multiple key leadership roles over the span of his 22-year Cigna career, including serving as business financial officer for Cigna's global individual operations.
Matt Manders assumes oversight of government business
Manders is assuming an expanded leadership role as president, government and solutions for Cigna Corporation. In addition to oversight of Cigna Solutions, Manders will lead Cigna’s U.S. government business segment, including all Medicare, Individual, and Medicaid product offerings.
Over his 30-year career with Cigna, Manders has served in a variety of key commercial and strategic leadership roles in the U.S. and abroad, including previously serving as president, government and individual programs. His experience at the helm of multiple Cigna businesses and functions will support the continued rapid growth of the government businesses.
Everett Neville named executive vice president, strategy and business development
Neville has been named executive vice president, strategy and business development. In this new role, Neville will have oversight of Cigna Corporation’s strategy, corporate development, business development, and Cigna Ventures. Reporting to David Cordani, he will become a member of Cigna Corporation’s enterprise leadership team.
A pharmacist by training, Neville joined Cigna’s Express Scripts business in 1998. He most recently served as senior vice president, value creation for Cigna Corporation. Over the span of his career with Express Scripts, he held leadership roles in supply chain and in the health plan division.
Aparna Abburi promoted to president, Medicare business
Abburi has been named president, Medicare. In this role, Abburi will continue leading Cigna’s Medicare Advantage business, and will also assume oversight of Cigna Supplemental Benefits and Government Pharmacy.
Abburi joined Cigna in July, 2020, from Health Care Services Corporation (HCSC), where she served as president of the Medicare business.
Amy Bricker promoted to president, Express Scripts business
Bricker has been named president, Express Scripts. Bricker’s responsibilities will expand from leading supply chain and drug procurement, to leadership for all of Evernorth’s pharmacy benefit management (PBM) services.
Over the past decade with Express Scripts, Bricker, a pharmacist by training, has served in a variety of key leadership roles in pharmacy network management, supply chain economics, and retail contracting and strategy.
About Cigna
Cigna Corporation is a global health service company dedicated to improving the health, well-being and peace of mind of those we serve. Cigna delivers choice, predictability, affordability and access to quality care through integrated capabilities and connected, personalized solutions that advance whole person health. All products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance Company, Cigna Life Insurance Company of New York, Connecticut General Life Insurance Company, Evernorth companies or their affiliates, Express Scripts companies or their affiliates, and Life Insurance Company of North America. Such products and services include an integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products. Cigna maintains sales capability in over 30 countries and jurisdictions, and has approximately 190 million customer relationships throughout the world. To learn more about Cigna®, including links to follow us on Facebook or Twitter, visit www.cigna.com.
About Evernorth
Evernorth is the brand for Cigna’s growing, high-performing health services portfolio. The Evernorth brand is anchored by Evernorth Health, Inc., a wholly-owned subsidiary of Cigna Corporation, and the parent company of the Express Scripts, Accredo, and eviCore companies. Evernorth brings together and coordinates premier health services offerings to deliver innovative and flexible solutions for health plans, employers, and government programs. All Evernorth solutions are serviced and provided by or through operating affiliates of Evernorth Health or third-party partners. To learn more about Evernorth, visit www.Evernorth.com.
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