Cigna Announces Significant Increase to Share Repurchase Program and Capital Deployment

BLOOMFIELD, Conn., Feb. 28, 2022 /PRNewswire/ -- Global health service company Cigna Corporation (NYSE: CI) today announced a series of capital deployment priorities designed to enhance shareholder value and deliver long-term growth. Cigna expects to generate over $12 billion of deployable capital in 2022, including $5.4 billion in after-tax proceeds from the previously announced sale of its international life, accident, and supplemental benefits businesses in seven countries. These priorities build on the capital Cigna returned to shareholders in 2021, including $7.7 billion of share repurchase and $1.3 billion in dividends.

During Cigna's February Board of Directors meetings, directors approved an aggregate increase of $6 billion in incremental share repurchase authorization, bringing the company's total share repurchase authority to $10 billion. Year-to-date, Cigna has repurchased $1.2 billion of its shares. The company expects to deploy in excess of $7 billion for share repurchase this year with Cigna's equity trading at an attractive and compelling valuation, as the company is not currently contemplating large-scale mergers or acquisitions.

"Our plans for significant share repurchase coupled with our recently increased dividend, reinforces the confidence we have in our long-term growth plans and the underlying earnings power of Cigna's business portfolio. This reflects continued and effective capital deployment for shareholders," said David M. Cordani, Chairman and Chief Executive Officer, Cigna. "Cigna continues to successfully execute against our strategic growth plan and is committed to improved shareholder returns as we deliver health care that is affordable, predicable, and simple for our customers and clients around the world."

The company intends to continue making strategic investments in innovation through targeted bolt-on or tuck-in acquisitions, along with establishing positions in earlier-stage companies through Cigna Ventures, the company's venture capital arm. During the February Board Meeting, an additional $450 million was authorized for investment into Cigna Ventures, focusing on maximizing impact across three key areas: insights and analytics; digital health and experience; and care delivery and enablement.

"We see meaningful value in Cigna's equity, and will prioritize share repurchase in 2022 over large-scale mergers or acquisitions," said Brian Evanko, Chief Financial Officer, Cigna. "Beyond our expectation to allocate a significant portion of deployable capital for share repurchase this year, our strong capital position and cash flow continues to give us financial flexibility and optionality for strategic investments and targeted bolt-on acquisitions."

About Cigna
Cigna Corporation (NYSE: CI) 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, Connecticut General Life Insurance Company, Evernorth companies or their affiliates, and Express Scripts companies or their affiliates. 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 over 185 million customer relationships throughout the world. To learn more about Cigna®, including links to follow us on Facebook or Twitter, visit www.cigna.com.

NOTES:

1. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternate uses of capital. The share repurchase program may be effected through open market purchases or privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including through Rule 10b5-1 trading plans. The program may be suspended or discontinued at any time.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release, and oral statements made in connection with this release, 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 may include, among others, statements concerning our projected cash flow from operations; projected capital expenditures; projected capital deployment, including future share repurchase and future dividends; projected closing date of the sale of our international life, accident and supplemental benefits businesses; future financial or operating performance, including our ability to deliver affordable, personalized and innovative solutions for our customers and clients, including in light of the challenges presented by the COVID-19 pandemic; future growth, business strategy, strategic or operational initiatives; 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 sale of our international life, accident and supplemental benefits businesses; and other statements regarding Cigna's future beliefs, expectations, plans, intentions, liquidity, cash flows, financial condition or performance. You may identify forward-looking statements by the use of words such as "believe," "expect," "project," "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.

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 strategic and operational initiatives; our ability to adapt to changes in an evolving and rapidly changing industry; the scale, scope and duration of the COVID-19 pandemic and its potential impact on our business, operating results, cash flows or financial condition; our ability to compete effectively, differentiate our products and services from those of our competitors and maintain or increase market share; price competition and other pressures that could compress our margins or result in premiums that are insufficient to cover the cost of services delivered to our customers; the potential for actual claims to exceed our estimates related to expected medical claims; our ability to develop and maintain satisfactory relationships with physicians, hospitals, other health service providers and with producers and consultants; our ability to maintain relationships with one or more key pharmaceutical manufacturers or if payments made or discounts provided decline; changes in the pharmacy provider marketplace or pharmacy networks; changes in drug pricing or industry pricing benchmarks; political, legal, operational, regulatory, economic and other risks that could affect our multinational operations; risks related to strategic transactions and realization of the expected benefits of such transactions, including with respect to the sale of our international life, accident and supplemental benefits businesses, as well as integration and separation difficulties or underperformance relative to expectations; dependence on success of relationships with third parties; risk of significant disruption within our operations or among key suppliers or third parties; our ability to invest in and properly maintain our information technology and other business systems; our ability to prevent or contain effects of a potential cyberattack or other privacy or data security incident; potential liability in connection with managing medical practices and operating pharmacies, onsite clinics and other types of medical facilities; 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; uncertainties surrounding participation in government-sponsored programs such as Medicare; the outcome of litigation, regulatory audits, investigations; compliance with applicable privacy, security and data laws, regulations and standards; potential failure of our prevention, detection and control systems; unfavorable economic and market conditions, stock market or interest rate declines, risks related to a downgrade in financial strength ratings of our insurance subsidiaries; the impact of our significant indebtedness and the potential for further indebtedness in the future; unfavorable industry, economic or political conditions; credit risk related to our reinsurers; as well as more specific risks and uncertainties discussed in our most recent report on Form 10-K 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.

Investor Relations Contact
Ralph Giacobbe
Ph. (804) 688-3400
[email protected]

Media Contact
Justine Sessions
Ph. (860) 810-6523
[email protected]

SOURCE Cigna