Cigna Reports $1.4 Billion Net Income Turnaround in Q1 2025

The Cigna Group reported a significant turnaround in its financial performance for the first quarter of 2025, posting a net income of $1.4 billion, compared to a net loss of $212 million in the same period last year. This improvement was largely attributed to the absence of substantial net investment losses that impacted the previous year’s results. Total revenues for the quarter reached $65.3 billion, marking a 14% increase from $56.9 billion in the prior year, driven by a 16% rise in pharmacy revenues and a 10% increase in premiums.

The company experienced notable changes in its operational metrics, particularly in customer counts, which decreased by 6% to 18.0 million medical customers, primarily due to the divestiture of its Medicare Advantage and related businesses to Health Care Service Corporation (HCSC) on March 19, 2025. The transaction, valued at $4.8 billion, was completed with cash proceeds of $4.2 billion received at closing, and the remaining $600 million expected later in 2025. This divestiture reflects Cigna's strategic focus on optimizing its business portfolio.

In terms of operational efficiency, Cigna's selling, general, and administrative expenses rose by 14% to $4.2 billion, influenced by costs associated with the Strategic Optimization Program and the HCSC transaction. The company also reported a 17% increase in fees and other revenues, reflecting growth in affordability services within its Pharmacy Benefit Services segment. However, net investment income fell by 18% due to lower average assets compared to the previous year.

Cigna's cash flow from operating activities decreased to $1.9 billion from $4.8 billion in the prior year, primarily due to timing issues related to accounts receivable settlements. The company reported cash flows from investing activities of $1.2 billion, significantly improved from a cash outflow of $495 million in the same quarter last year, largely due to the proceeds from the HCSC transaction. Financing activities saw a net cash outflow of $3.7 billion, driven by share repurchases and debt repayments.

Looking ahead, Cigna remains focused on enhancing its operational efficiency and expanding its market presence. The company has initiated an enterprise-wide Strategic Optimization Program aimed at improving customer experience and operational effectiveness, which is expected to continue through 2026. Cigna's management anticipates that these strategic initiatives, along with the recent divestiture, will position the company for sustainable growth and profitability in the evolving healthcare landscape.