CI - Earnings call transcript Q4 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by for Cigna's Fourth Quarter 2018 Results Review. At this time, all callers are in a listen-only mode.

We will conduct a question-and-answer session later during the conference and review procedures on how to enter queue to ask questions at that time. [Operator Instructions] As a reminder, ladies and gentlemen this conference, including the Q&A session, is being recorded. We'll begin by turning the conference over to Mr. McDowell. Will Mr. ahead, go Please McDowell.

William McDowell

Officer. and morning, everyone, I Relations. Chief XXXX. joining of call. and as our number our remarks including you me our and as well Cigna's and Will McDowell, thank President Cordani, am David full-year Investor morning financial Eric Eric Financial for today, Executive cover Vice Officer; this today's are; for will Good Palmer, In Cigna's Chief results, outlook President a With topics David XXXX of financial

and results today's with our materially and most our from SEC. reports differ current remarks some in our Per GAAP. and we these Cigna accepted earnings the actual Relations revenues In generally recent GAAP in measures accordance the description note which noted performance. We of be A Share and our of operations These to adjusted of in statements measures earnings contained uncertainties income net As is in Investor our is release comparable outlook principles risks as filed release could performance. use adjusted of in today's our term A financial future Operations risks uses same statements on revenues financial as income release Adjusted in earnings shareholders when cause to the Earnings the basis section making these regarding results, directly with total in including uncertainties the most that and Income measures, respectively from expectations. and forward-looking principle measures, determined XXXX accounting is describing are statements, labeled United will not certain States our today this cigna.com. cautionary the financial posted with and contained for known from to reconciliation otherwise subject are to

to pertaining results disclosures. items call to David, cover will the and turning our financial over Before I a few

XXXX. the changes announced Express These that to combination we the were First made Other, with results through connection remind in Integrated of and Services, recently align XX, Group the Markets, finally changes following Disability reporting. segments; December with our International I Corporate. In Medical, you completion structure this on now and are the Health segment change, organizational Scripts company's following reported with five Cigna's

our previously also As from transitioning disclosed, and clients clients. contributions and practices reflect follows: Anthem from income their operations Cigna clients exclude from has first, reporting updated we Coventry as financial revenue, and adjusted transitioning contributions adjusted from

operations and pretax now Second, align basis at team with a responsibilities. better from is the reported income on segment to adjusted corporate level, segment management

or to share, is no shareholders that to and change Article from reclassifications, general by want prior this ratio, our stress our And expenses companies fourth, transparent segment income, which Third, Cigna's total release transitioning financial is facilitate when periods and Article and referring basis just administrative used expenses result companies. of have competitors. consolidated basis comparisons X applied insurance our is earnings Eric were excluding earnings on by of to and the Cigna service selling, been a the supplement discusses Cigna's morning, shareholders to revenues. retrospectively administrative these have Cigna's continue by ratio, special net for reporting changes In and our flows. updates under financial cash community. care described consolidated operations, to reported items which calculated historically selling, income per provide to financial adjusted consolidated by company's and statements statements is and expense S-X X dividing he general the general there clients of I expense standard equity are these to the investment enables The from consolidated I to changes adjusted as used the high-quality financial general issued largest Cigna's reported reported Previously Regulation managed now when reporting

to a share in costs. to of Moving quarter, of results recorded or we to charge totaling the impact per primarily $X.XX million reflect $XXX the in quarter merger-related special items the transaction fourth

year described As financial in we comments make segment release, so are prior that discussion costs. that and including adjusted financial XXXX excluded share outlook, full reporting morning on described future new results. medical earnings updates reporting performance today's of financial I of of in or and of income do operations and will when adjusted special addition we from from note basis revenues on reflects any repurchases the this excludes of items year our a prospective development basis our Please regarding have impact the

that you Investor City. be Day the remind XX, York in on I upcoming will our to May will Cigna turn over I Finally, that, With hosting David. call New

David Cordani

results I'll the a questions programs, detail. wrap joining Thanks our financial I comments. for call comments will exceptional financial up across you expectations Will. Good morning thank everyone growth into and in outlook strengthens also full-year for XXXX with take with affordability how exceptional with I'll earnings and substantial and delivering few Scripts begin initial who our expands our XXXX your those with after of our for choice call our Cigna before Express Eric results our closing and Eric which revenue XXXX review our more XXXX we offer today. serve. highlight Then our addresses from businesses. further insights will I'll I my combination

some highlights year of Let's dive where last review to we from and revenue our delivered strong in growth. performance earnings

including the year. our consecutive customer portfolio. contributions across also cost and by reported strong Cigna of for medical $XX billion representing a operations per $XX.XX the delivered growth XX%. share billion by new our and from driven expansion across solid each businesses of or increased $X.X of per deepening and consolidated share of client increase continued levels, These substantial results trend industry-leading sixth full-year relationships, were full-year Our retention revenue and our we to in adjusted income adjusted growth XX%

be annual strong its delivered will XXXX market-leading Drug integrate well to X.X% we our will core our lowest providers. healthcare further Scripts Cigna XXXX across very of all also while trend client better businesses. Express in Express delivered commercial week to leverage performance provided of strengthened pharmacy results retention as as of and with of achieved Report. as capabilities Scripts. in than XXXX the customers, in continuing XX% Express performance details clients, for innovations and invest portfolio with on which Trend be growth sustained benefit patients, Overall record Scripts concluded Our next continued strong

value benefit of proven and integration the provider our service Cigna's reflects to delivers patient, partners. clients and customers, growth continued Our approach real healthcare how it for

Our individuals medical can nearly show recent with of behavioral which Cigna by the the increase medical, was each reduce annual value report for integration $XXX on person and for opportunity. average an an to chronic benefits costs of with conditions. Savings $XX,XXX with identified externally improvement pharmacy, validated certain health clients

driven As a Express capabilities insights understanding we gain Cigna is customers, deeper of look well combination. from to evolving as as our forward, by our our from the approach broader and Scripts we integration, definition the

clinic it and further whole best customer and for when this and body of accessing healthcare Making the needs healthcare restricting health our and they setting better choices In opportunity services and includes needs also healthcare important, high integration choice but individual acute mind. healthcare the and home quality the employer acute ensure friction approach see and links allows patients expands our environment care office, access and need, nearly to accesses the care provider which and on an choice-based Our need guide providers for also services an in professionals. coordinated choice outpatient affordable healthy their to service anywhere that and at that an at the to to is are customers hospital to some expand patients health an patients healthy to us and remove are in we facing on for tissue a services the retail well-being. the easier This urgent our health model chronically them. toward we ill focuses platforms are address a status. Increasingly, improve factors anytime help digital see conditions. the must aligned and stay health how for with as delivery affordability, customers linked deliver both further to a the we risk to well do predicting more available person partners. easier around coordination doctor's Cigna, their in preferences. our order needs; order patients customer center. them or being people solutions healthy, setting our as they at connect approach and as critical roles it help This drive also To those for a based and their At to customers patient's risk customers This where we in center, is help for the connective with a that at Cigna access or make facility-based fashion through or to such

We and or to disintermediate own, with healthcare with continue them. compete rather enable to partner align providers seeking than

on Express with Scripts customers coordinating our and strengthens services patient needs. accelerates our and combination focus around Our individual

capabilities. is Cigna Express value steps for leveraging of Scripts' integration stakeholders effective the additional One that and the unlock for essential is to of

more our and our to deliver passion, priority period. an immediate were and to to do couldn’t position XXXX. we important appreciative includes so implementation teams' on Our and as I commitments we focus, customers, delivery is able This into be service January XXXX. of to the patients XXXX our in stepped in in create delivery and we clients strong XXXX proud ensure

our coworkers in exceptional as we serve. mission delivering health a those we see company carrying out world we service for XX,XXX the the greatest asset around and value our have As

with significant key of we combined behaviors and and we and of predict to opportunities businesses new customers, and solution improve to conditions new choice, the growth first, our enter through clients reach, As patients, pharmacy costs expand and customers, as our and reach connectivity breadth affordability; broaden portfolio. on will geographies harness depth synergy a our have benefit second, which focus; improving we identify beyond three medical to patients, to providers; help improve and optimize to the affordability, leverage better XXXX our move and healthcare data opportunities directly and and broadening our or focus between expanding across third, areas and our and

and use as improving me value two patient-centered United Scripts' first States. comprehensive program specialty nurses to we Accredo data, pharmacists improving, more than how a providing create of referenced. of Express Accredo, prescribing, and leveraging across I affordability force XXX the a coordination. model the specialty XXX items brings an and clinical field adherence, Accredo will care real care has in business Let in-home example pharmacy

just within home in clients. visit for plans deliver XXXX affordability today. is hour outcomes to nurse clear pharmacy In and growing better Accredo fastest and healthcare in Cigna benefits. the our fact, improvements from pharma at-home an create today, Considering affordability leveraging one of of to Americans is specialty Accredo will begin for specialty XX% the a cost this health meaningful category and customers services

at demonstrable gaps in Accredo Scripts are advanced looking to Express who when and non-adherent likely today to care. patients apply leveraging have Second, identify be data, informatics or

monitoring For basis health example, and patient's or track glucose trigger support. devices tied monitors outreach health targeted to real-time rescue blood Bluetooth-enabled and in inhalers

will type and behavioral for connecting strengthen our data. sites this pharmacy we medical the data and with further forward, actionable deepen by Moving of

health to share with important actionable is chronic resulting patients physician people we from insights further especially accountable Additionally, physician partners when our improve Connecting partners their suffer who these will collaborative care insights supporting outcomes. with conditions. our

to chronic with the Building basis PBM new serve teams, plans we teams For live and selling XX already times health example, Cigna's in those from enterprise example business. Scripts expanding are for payer condition, to currently the depression suffer six on Express all likely at consultative Cigna which conditions services and effectively are as better identify targeted growth seven a and success, on An leveraging through that some behavioral pursuing includes health. further pharmacy, as data and our opportunities. least demonstrate importance chronic of one Americans medical, many more with of drive

health Additionally, plan for Cigna have engaged expansion capabilities we health to in be management already offered Express Scripts targeted clients. opportunities to

to whole, look and you as value our integration at initiatives on Taken more start May Investor forward with are in Day our this a XX. strong to creation and a we depths very discussing off

outlook. briefly Before close, our me I let comment XXXX on

a sustained has provides delivery [indiscernible] growth growth for and Our record XXXX of proven paths in beyond. and track multiple

strategic years in significant the annual and For EPS cash to to in EPS achieve an and XXXX revenue conclude, to we for on clients next change, enhance while enabling flow free XXXX. average mind. our team, attractive growth, person; all all with our strong continuous environment growth EPS expect free To framework, cash customers, the us growth, us and three $XX predictability XX% capital position choice over positioning deliver and flows, $XX target of us and whole patients, both affordability, focusing and along expand position improve lead body our treating to

attractive to sustainable We growth. delivering continue are positioned

We visibility towards financial and of flexibility high over achieving that, to turn And with have XXXX significant strategic to $XX and per target flexibility the EPS share. Eric. our $XX I'll call

Eric Palmer

XX% growth to reflect everyone. and continued Key remarks and us with Cigna's operating we consolidated to highlights advance integration financial underlying drive review will of XX% my provide earnings adjusted In strength as XXXX I Thanks, priorities for David. and considerable of XXXX. growth XXXX today cash billion, Good outlook results $X.X our results $XX momentum include for after-tax, in share of business $XX.XX, revenue morning These growth growth strong billion per flow. and to XX% provide XXXX. the of our earnings our

segments, by and $XX million our to relationships, of by customer $XX growth an government cost driven XX% and as billion, global our driven middle-market commercial XXXX increase as led XXXX in ended with expansion of underlying customers organic $XXX,XXX growth I'll select, premium revenues specialty medical well first on segments. lives reflecting Regarding We Integrated growth trends. grew comment Medical. by

organic specialty our and business. eighth reflecting funding grow to management, medical continue on approach the growth, arrangements in individual continued with grew medical XX% earnings that and relationships, pretax our cost customers aligns a consecutive we growth ASO and we a to with effective clients. and risk As Full-year $X.X U.S. billion completed medical needs favorability both consultative of in solutions affordable basis in highly customers of our year customer

business our U.S. for commercial X.X%. costs, medical book total medical was to trend Turning XXXX of cost full-year for

health medical cost for drives customers to challenges a as value consecutive our We improve sixth further pleased confront industry-leading and cost on year medical affordability outcomes have expanding are they with of increased which are clients and continue we and to delivered trend healthcare. performance the to results for focused capabilities

professional to patients, Our combination with further enabling partners. deeper with clients and value Express that ability Scripts accelerates drive us and engagement our of personalization customers, create services to collaboration and healthcare

Market claim previous segment. strong X.X financial Medical the in Global generally due average normal the a claim Days of and XXXX. International longer Days the of of a fourth reflects cost over prior business of individual our medical quarter Medical businesses, which our the medical both the with our of XXXX Integrated Integrated Our benefitted result as and quarter. that to note for management segment prior or the the to development consistent or year Overall, Claims reflecting net increase and December business decline capabilities XX.X% U.S. care the of XXXX health payment full-year ratio development total effect $X pretax MCR reclassification sequentially International government lower days commercial due including the segment in for in had favorability DCP delivered years. the X.X That XX, than XX.X effectiveness earnings our days Payable insurance was transitioned cycles. favorable tax. Integrated of Medical reserve from resumption pricing seasonality to continued segment favorable Full-year segment, the Healthcare Claims in than higher prior million an a Payable Medical payment very fourth our would Days year Claims in million Cigna's year is Healthcare of at Payable results I STAR+PLUS Integrated for $XX prior business, and of for Products

XXXX Scripts business, Turning combination and December of to from from XX. full-year pharmacy earnings our support our revenues on solid Health and value order billion integrated close contributions and the were Services pretax for operations the proposition $XXX XXXX were $X.X performance following Cigna's Results Express million. mail business of reflect

of billion, investments reflecting our continued increase International to pretax and attractive an reflect and our XX% million, solid efficiency, strategic to business, full-year $XXX grew full-year to XXXX long-term growth. for as profitability Turning continued $X.X revenue X% business growth, Markets earnings and results grew growth XXXX administrative

segment, $XXX $X.X in For delivered revenues earnings Operations XXXX Other to growth our of platforms. Full-year segment million offset Disability profitability growth with for XXXX Overall, our were each Group our by pretax across and performance claims. full-year unfavorable disability and increased from billion. strong this strong Cigna life business

I discussion to the our tailwinds previously. our start that As turn highlighting will quantified headwinds I attractive a continued relative growth for XXXX outlook for by we've expectations our specifically and performance, to and of XXXX

earnings $X.XX the XXXX performance $X.XX share share reduction following for industry three of per of the business finally a U.S. with for was in of outperformance, per reserve of reduction increase adjusted and favorable for but share suspended should share place per XXXX the individual a per prior-year $X.XX Specifically, XXXX. tax, be is associated of items; development, an

earnings share While Cigna's for adjusting these per $XX.XX. impacts, XXXX was

As value we that our advance customer delivering clients, into businesses. outstanding on clients. priorities. to XXXX transitioning contributions while income quality, for with and all and we focused strong from to our service I the delivery each in and we outlook revenues drive of client continued and innovation, from continue and excludes promises our remind adjusted remain clinical momentum marketplace relationships, We XXXX for of deepened operations adjusted integration you continue would customers on intently our to step our

of the billion For to billion. full-year XXXX we expect $XXX.X consolidated in adjusted $XXX.X revenues range

have Health particular, businesses first segment of in share. per half We a This of cadence year taking its earnings our XXXX operations $X.X XX% as $X.X in year, administrative to in consideration synergies over as XX% our proportion of to second share per our into and continued of represents consolidated income to very realization Services XXXX seasonality billion earnings be to approximately in of range driving the XX% in or half full the to from within year. the expect baseline. be well second growth XXXX, $XX.XX expect the the attractive throughout on We the in of with would XX% $XX progress patterns adjusted billion greater expense XXXX the

our synergies of our administrative pretax costs that note includes XXXX million ratio in the temporarily ongoing range efficiencies of For pharmacy also line I in also with outlook termination we an pretax. XX.X%, expense early $XXX operating which Anthem's estimate to project would reflects approximately of expense XX% and stranded $XXX of previous associated with services. million

For XXXX XX.X%. we in rate project of consolidated a range to the tax XX.X% adjusted

excludes future as reserve well I'll and outlook contribution discuss Integrated repurchases Health our XXXX any Additionally, outlook the share prior Medical from now segments. our year as Services development. for

XXX,XXX in client we decline individual U.S. as and customer XX,XXX of relationships, in of also business. growth the margins our well customers. our earnings We our in earnings percentage following; enrollment customer pretax effective expect mid-single-digit for business, outlook businesses by our customer range continued customer expected This of benefits customers Medical to in strength growth advantage range growth billion. include an contemplates and growth, growth business deepening more the Medical full-year outlook in of in billion outlook XXX,XXX cost driven Medical also expect XXXX as driven outlook in customers, and Global Integrated $X.XX from individual organic contemplates our continued reflected to reflects medical and medical Key Medicare U.S. by for enrollments normalized the new our Integrated and regarding a approximately commercial retention in management. return assumptions growth This XXXX to strong $X.XX

we XXXX full-year be Express we trend services utilization costs, those commercial with our benefits increase range our initiatives higher improve are X.X% expected cost continued through business as enabling of medical Scripts. to due full-year of trend as medical over expected to the the the to Turning from employer to in book affordability, further combination to well XXXX including with expect X.X% U.S for of

commercial health ratio XXXX, care in medical performance insurance strong to of in businesses, XXXX XX.X% as changes continued the well be range of to in as the expect impact tax and our business the reflecting government suspension of XX.X% mix. the We

For billion we the earnings business of our range Services $X.X Health full-year to in $X.XX expect billion. XXXX pretax

with expect X.XX includes I For pharmacy volumes specialty adjusted Cigna's the pharmacy to X.XX the business. we and XXXX claims. Express range in would claims mail-order range billion to associated in note acquired billion operations all of this that addition claims with claim associated Scripts

to Express Our core XXXX consistent range in guidance adjusted Scripts claims. pharmacy X% is of X% with growth previous expectations

OptumRx key Our not guidance volumes with Cigna pharmacy transitioning claim we this from does with include guidance claim range volumes does performance not metrics, of clients. transition all consistent and expect our include to pharmacy associated

and affordable in deliver as the those We personalized solutions contributions serve. International Group also Other for Disability expect growth to they from Markets, we strong our businesses benefit and of continue more

$X.X we billion development. these outlook expense, interest costs outlook represents share consistent for $X.X and Express strong to growth the in full-year and target combination and to repurchases very $XX accretive per of XXXX reserve billion to position highly our with with of consolidated to per are future baseline. Scripts. the a This our share combination of the our Corporate would performance Overall associated These of of diverse and also Express attractive incremental us outlook share. XXXX to businesses the expected million portfolio total of with prior year our growth XXXX, our exclude that segment. aided achieve inclusive impact XX% expected differentiated continues interest $X.X Regarding from pretax adjusted with multiyear also approximately well by represent results $XX.X results earnings per to of approximately billion of share. you expect remind XXXX income $XX Scripts of we XX% All in in, or I operations over expect $XXX financing the $XX

reinvesting parent long-term million we and returns to XXXX growth company position innovation. subsidiaries with In our offering XXXX repay we long-term debt. capital shares $XXX XXXX following and of Scripts of million our to resumption combination. capitalization $XXX the continue of on XX.X%. completed with remain million drive We we management We to share Express and and deployed maturities moving them finance with $X.X as well-capitalized cash of to the strong debt free flow exceptional support capital combination with Now expect outlook, close continue the our to even repurchased repurchase ratio for of stock a current to to the ended we debt of cash

As previously discussed, within deployment priority of our our XX with debt is upper debt to the in next and capital capitalization to accelerated top debt XXs EBITDA repayment ration objective to the returning ratio months. Xs XX the the to mid

In capital For for we available billion to to capital billion. project we expenditures. and deployment approximately deploy of billion XXXX to $X.X approximately approximately debt $X.X XXXX expect $X.X repayment

reduce repurchased As into capital additional have to previously, and/or be while for years XXXX businesses could growth, to $XXX In for million. to we our we shareholders January on two deployment next shares M&A over strategic also innovation toward further allocated which we have we communicated expect million back leverage drive reinvestment the through and repurchase. share returning a $X.X primarily targeted basis capital capacity

service-based returns strong and that strategic sheet outlook capital. efficient cash balance Our orientation highly remained drives flow from a benefiting flexibility, strong on margins free and

positioned well for XXXX. delivering through the attractive strong we diversified XXXX have of of integration we've marketplace, and our strategy. is business Now strength momentum and commitments established are our and targets to to XXXX execution of financial our on while fundamentals the portfolio achieve consolidated across to we full-year intently considerable reflect continued and businesses our entered global our results XXXX on priorities, recap, effective our focused advance The focused

rate to three years. XX% have Q&A next are portion for the it We our our earnings strong our per share operator achieve the in growth full-year represents confident target average over outlook call. XXXX XXXX $XX the visibility turn that, With of will which and earnings ability the to a into annual we over for $XX to

Operator

[Operator you. The question comes from first Ralph Citi. with Giacobbe Instructions] Thank

You ask may your question.

Ralph Giacobbe

morning. good Thanks,

closer XXXX. help the you more bridge could point jumping the to or a the know hoping off mentioned the guidance. Just underlying being I within bit assumptions with you

I at in single the of high be I which past teens of think and suggest if accretive, Cigna X% the deal of kind time about the think talked $X dollars XXXX sort of end the high is use in sort you digit I the and Even think of you would incremental sort growth business. we that's said of mid Express at would guidance. in above least legacy core

maybe with changed help just where the something you underlying hoping just segments? or core that's if your assumption off performance from view has initial could the So and in Thanks. between

David Michael

It's good morning. David,

Let to and add on for offer me framing. my frame Eric to

XXXX, deliver on the First, speaking our our appreciate commitment broadly our you is us trajectory puts planned line walking in big the with picture for and expectations I EPS. $XX on to of outlook $XX Two, XXXX through of bridge. to

back not performance are is to about is it about the on the with you math, you Scripts that's that of you temporally Cigna our within approximately million the tax and to We going would is highlighted the portfolio tied Eric from performing core with before emphasized right the stranded strong data $X point for will within to early temporary. termination but XXXX to legacy well now right, standpoint, portfolio, take overhead continue grapple You and I point, $XXX core well. to just perform XXXX announcement. Express one the that additional fact assumption step into

We over term will the three, leverage we temporary for future. volumes additional remains near the EBI capacity some three utilize one, growth; organic dislocation; created Express be that execution there'll two, Scripts eradicate track, but from which of mechanisms; significant Cigna that the as leverage through will be on and

all anything I of EPS missed? So even track when Eric, delivering pull an to outstanding on you growth including are together XXXX that we both XX% stranded XX% that result of in overhead.

Eric Palmer

the are those I think major David. headlines Thanks.

Operator

Giacobbe. The Thank Suisse. with comes next you, Rice Credit Mr. from A.J. question

Your open. line is

A.J. Rice

particular open night, conference all have that questions top, regulatory broadly, ask do then I the guess they lot the the if see the key we'll think of commercial much goes probably those would will guys where will a commercial last the but release And main have Can challenges thoughts I and don't saying the about the know around Thanks, D there, aspects would around market since a system there you topic so is, have you of Part HHS comments a call the this is authority any I'll from thanks and proposal you market, always be? implement guess that you forward, for will that. are is anything question, guidance. in or any – the us. Medicare its the be pretty guys it set, do helpful? I maintain you I to that's one or first for ask just as what to opportunities stay sense HHS X-Tier a lot a since you to

David Cordani

A.J. morning it’s David. good

we the high quality So behind our and wellbeing further to customers, and the appreciate committed U.S. improve combination the with to back are key on trajectory. providing rule to health clients our force a just X.X% patients number the off portfolio business portfolio phenomenal in strategic services globe. and at across our meaningful questions. and the Scripts medical Express in six another strength earnings pharmacy is in result Stepping affordability row driving proposed XXX% a built on we affordable, or is, X.X% of of with have trend. impact one growth in The outstanding our and years headline year a Cigna rebate trend will the not just Scripts cost A Express

through rebates Advantage well flow built for of days that are the will next rates to the and Medicare billed. proposed the The and as applies as Specifically, you rule rates up are PDP. as way over be by respect, terms design, the and exist Medicare PDP largely evaluated the pass noted, in as the way XX Advantage mechanisms

that implication major So marketplace. not a to comment, inferred portfolio. the we the as commercial We some articulated. do to in in And apply your business see [ph] it then does proposed don't see rule opportunities

For example, a even manufacturers. it based pharmaceutical care further provides the accelerate programs to with mechanism value

it passionately open to provide You'll to talked see we effect on a we the announced having alignment. as March But deliver in. some XX% an picture, business work combination potentially initiative we that, track will in recall chassis well configured are to day and important as EPS proposed get pharmaceutical about from manufacturers additional that believe XX% Xth as to some further the growth material not big up the we XXXX. to on better that with our on accelerant do portfolios This

A.J. Rice

Okay, a lot. great. Thanks

Operator

Research. comes Raskin next question with Rice. from Mr. you, Nephron Josh Thank The

line is Your open.

Josh Raskin

good thanks Hi, morning.

to $X resonating, to just stranded? and with you sort sort is one XXXX starts actually that have growth the the but core guys do on direction you starting you the saying clarification, about side? on that especially think approach, that that in when integrated been for question is, First legacy laying my indeed group million and the part education employer that begin, of foundation hear know the start market of changes pitch? just we is a do how then large broker/consultants are combined do around you when real Express the does U.S. And does And $XXX rest when membership then thinking come the commercial as that company guys is I of the and when accretive guidance of with in

Eric Palmer

Hey the Josh, of Eric, question. it’s part first take the I'll

actually in take is question. $X other think year. that’s in let the nearest the of the to terms the probably $X portion the accretion Express from that, $X.XX next less bit it dollar, I for so number little acquisition think David Scripts of the a to we range than right I'll the of you

David Cordani

proposition, first strong into XXXX strong We're within Cigna important the year note and that Josh, and to growth organic portfolio. that each portfolio we're well. with to the step each of growth well portfolio the delighted specific another and go-to-market very platform growing ESI able is within to performing

within in highlight as deepening with to as outstanding addition growth of of retention, business to relationships. organization to look relates our important XXXX relationships it new even starts growth we Additionally,

step up early the Within XX% was Cigna offering will for XXXX the Scripts offer your of losses the look and Express portfolio portfolio no XXXX. which within new a capabilities distribution propositions around Express evolve of of decision known on process to to of in both here building Express in phenomenal will through that retention we're well that and for that the that's a be lower forward with and value process that sit We'll starting they'll legacy thus emerging the terms so through XXXX platform. out choice, momentum the model, well portfolio, XXXX. through choice standpoint, with as core as that business the be take you that with in place and distribution decisions more an making look answer of foundation business percentage Think versus at is XXXX model, the about community them the is renewing far the plan as has singular the all strong so result about to recall outstanding that a for phased part for into today consulting in from question. pushed than product Interactions portfolio Script today clients XXXX. then we happen is earlier The and are of retention, making strong rather already less additional of health expanding XXXX out part not XXXX bid market, mechanism. pretty for the broker a with the stepping renewal early and XXXX as XXXX There the and will through that momentum their

Josh Raskin

Thanks.

Operator

The Raskin. next question from comes Taylor Thank Gary J.P. you, with Morgan. Mr.

may You question. ask your

Gary Taylor

of Cigna essentially what be don't year-over-year, I the would might would of envelope we PBM Healthcare tell of some quite that new down legacy you would disclosure what is to slightly, Express represent morning. obviously looks flat but have? Hi, question back had sort billion, growth that guidance because plus good a the represent to there like the segment, billion $X.X around Services us can just $X.XX

Eric Palmer

up probably not Fundamentally, Eric. so all of outs of of pieces and there, dynamics through we've of It’s different walk constructive there. ins number the to A growth kind terms the and of call both, on Health pieces today. apart really pull Medical not segment as is Services kind to good the segments able but operations as that the in there the growth Integrated the well moving in in reflected make got

David Cordani

David. want and we'll followup just And I to you Gary, with ask on and to add Will afterward. maybe it’s team

As moved into order is, the Health the pharmacy Integrated business business a aspect may of the example configured in mail pharmacy the you new business, know however recall I Cigna of for are the Health the integrated the has portfolio. aspects et Service all new net cetera, portion segments remain it's business and

So net but the and relationships we by could both take business that and offline expansion of walk end our with solid growth the those pieces, you retention driven of to the adds. there's at and day new the follow in portfolios organic through up

Gary Taylor

Thank you.

Operator

Mr. Wolfe The comes you, from with next Thank Taylor. question Lake Justin Research.

may You your question. ask

Justin Lake

I question. up $XXX good Thanks, the and morning. just commentary clean wanted million had to I then a

contribution clear, is perfectly saying be of overhead Is number of that reduction carrying the overhead to lost XXXX going XXXX? be Anthem to there or is $XXX So that this million. total this you're more from in

Eric Palmer

it's Justin Eric.

play and next estimated to as in of $XX will plan out think again, this as year final such. will into million will we $X.XX associated think costs we out the But this $XX need as on I system. The that amount in the we've out system and $XXX terms the amount go business of of with the the XXXX. for exact that cost works absorb Anthem will time year transitions through year come stranded transitional their at transition for hit of to as versus of our XXXX coming that timing Ultimately, XXXX. So We're the that share. about earnings per the as in out those we track

Justin Lake

business. Okay services drag and to the on that's a clear be

because So the should this probably that track accretion have even you that would $XXX of to of to expect timing, that drag versus there's off the not million accretion? it might have there growth look a much the also dollars accretion expect given $X be number that though that is you And like year. those didn't didn't you as well

Eric Palmer

That's think in and on still our almost drag It Services Health entirely correct as the a are as temporary that think about segment for expectations So about is term all cost. there. and term short within on fronts, that long on we the track the

Justin Lake

you commercial if sneak goes number away with and out but and rebates, I know my just $XXX of could us case Okay put there, in worst a all then don't you rebates question can historically update XXXX, Express I an you all, give it on think comment, million. being helpful? do if discussion two scenario, you there inflation, put on some affected would away be those see rebate for anything think go things would CVS that out in as where a by any Thanks. guarantees be that headwind

David Cordani

morning. David, it's good Justin,

about You’ve effectively put in four questions.

to together. try of couple me them Let wrap a

the not commercial previously, noted market. the does of to commercial and side equation specific the the rules articulated First, rebate proposed affect as

As you correct. back, you're go

numbers that out. the use put and back go Let's we

back. Express cetera et First, XX% Scripts about for passed rebates, discounts, are of all

about of pass for per prior XX% within Express volume. full Scripts all two-thirds through Second, of conversation the covers rebate clients about models. opt today That importantly

of commercial to evolve guarantee, government that plan nature get rebate those for record for trend and work net as we'll sector and alignment and there's discount a not that across did is for back in go of you'll note formal those So the funding guarantees basis. guarantee, disproportionality or a call a guarantees, little us that that's work mechanisms multiple our has of align legacy on already have guarantee cost out and a to payment speaking alignment The it. of stepping offering, as health of a effectively continue today both of organizations work and a we track agency Whether part headwind, broadly gaining over managing them have that a the and that. industry forward otherwise levels a we clients rebate models that the great hand in to a guarantee time. Specific

the such decelerating some Express services that contracts. had I Scripts Lastly, into add visibility took their trend as would with appropriate actions environment just

So again, out that we called as a headwind. have not

Justin Lake

Thanks.

Operator

of Thank Lynch. Merrill you, America Mr. Lake. with from Bank Kevin The question Fischbeck next comes

question. your ask may You

Kevin Fischbeck

you as guidance think to include that? that anything a numbers is I providing acquisition generally se kind have $X.X number base wanted add cash here. guys billion earning available about thanks. or to the if XXXX flow to to are for And about clients year, to in speaking number the giving Great, this just think as client, is been it about next growth just for cash a or The to this from number Anthem does excluding good this of flow year excluded go this you'd of one-time Anthem that that? be per number any flow kind that is you've a then earnings cash we there think that trying parent

Eric Palmer

Eric. its Kevin

think overall so And about billion in. the referenced all figure I that as $X.X

There main and pace comprehensive the have it But be mind debt of things achieving will terms the rate billion is that come of impacts. tier So in the of expect the of repayment our the that in framework. pace rate of the available will in synergies, for the our go generated. terms kind in be would of and capital of to and capital and for - pace - enterprise rate to we couple excess this top years into of $X will each the next of investments

Kevin Fischbeck

of all the and uses Okay, billion so the point growth kind a earnings up of away, even $X goes for that before though Anthem makes cash. other starting

Eric Palmer

Kevin. Right,

Kevin Fischbeck

Thanks. right, All great.

Operator

you, Barclays. Fischbeck. next from Thank The Mr. question Valiquette comes with Steven

may your You ask question.

Steven Valiquette

thanks. and morning Eric. David Great, Good

Cigna-Express transition. I here that lower other hear guess just that the to, be I want business rebate cost of the early because from hopefully early question really guess or Thanks. on purchasing let's related confirmatory Anthem me than that something the not view quick Anthem PBM in that say your collections to just stranded I any alluded consequences there XXXX other another either unexpected less So you should power or things the like like remaining transition. to for PBM

David Cordani

there of concerned you there that combination, aspects of about. the the all transitioning - Steve, from we et impacts David. from at day business, other announcement no be the any cetera, outlook, not good looked to morning need clients are it’s will but impact. how be the we excluded No, We the

Steven Valiquette

you remind you year-over-year on to and just guidance just little XX.X% a is here I well. as that color Thanks. for to just MLR little on do apples-to-apples a adjusting little or basis adjustment Okay how flat half compares a a XX when the posted or again just want that is it in more essentially you an higher the quick the the us lower, question XXXX, there XX.X could when

Eric Palmer

Yes, Steve Eric. it's

talked suspension, with other I pieces I we've industry in MLR, single of So the factors moving the also be would already call out biggest fee about. would more this changes the piece, terms is think the the

for outlook. single fee this individual the piece. margin be guidance from biggest into account movement development our absence Those is pieces our would our that industry talked year next about and the So plans, the of suspension then of the the in We've normalization year for would prior year.

Steven Valiquette

it. Got

Okay, great thanks.

Operator

Thank you, Mr. Sachs. Valiquette. The Goldman Tanal from next comes Steve question with

ask may question. your You

Stephen Tanal

for Thanks guys. question. the morning Good

there, the of wanted on are how are sort new now? of and comfortable low or Anthem, the provided you could put of And earlier the level are the give assumed guess in you kind guidance temporary? what thinking truly now? those accretion end how had is the touch, you topics one you discussion transition high year costs just long kind to Just two out the of about growth guys of that initial to in in just about that the accretion guess control term earnings of one then change to the algorithm provision contemplated contract? I of like not And was provided earlier given I I used is round to an business Anthem separately, of targets sort the of out XX% just transition us the And why secondly, just target, thinking XX%

David Cordani

Steve it’s David.

by CAGR been First, approximately end EPS XX% way above we've XXXX, take relative delivered XX% the the initiation your to range. question, XXXX, since our the so of of strategy high first picture XX% of articulated we've background, XXXX to or to broader big

next horizon, outlook our on again deliver EPS chapter strategic next look XX% forward. the three go years, of we the as to term and our refreshing accretion forward average three next years on the track Over to are we we over long

growth EPS performing long targets. our have term of an we'll So decade XX% a excess of out

to or anticipate Even million is excluded with one it. temporary Eric the a those growth. No relates an we underway, taking of before and in transitioning creates tremendous transitioning as to we $XXX et accretion a and EPS EPS our CAGR but question, initiatives we terminations. initiatives to of as on understood termination. cetera. the XXXX it outlook, as of all well part XX% off in EVI tremendous we're It dislocation that, year-over-year clients the fashion had deliver pace timing Hence we approximately termination organic from your $X.XX rate The our EVI articulated that base deliver we're will able tax. outlook, are along a and did of EPS and XX% of paced we clients latter As could predict early

be growth. place with the XXXX was temporary those to and takes dislocation deliver eradicated. So able just even costs XX% a XX% There in that will EPS that we're to

Stephen Tanal

to just at that, ex of or double-digit and sounds $X.XX with Thanks the color any the still so midpoint that guiding like part? guidance or guess accretion on I maybe it you're

David Cordani

I accretion about would about business Stephen core to think way The Hence, fundamentals the target fundamentals is, the before, it $XX combination remain the intact. core $XX and Cigna the we've portfolio on of discussed remain of for intact. we're

accretion with rate. prior that to in you we're want XXXX growth Eric of to and dislocation XX% build and even about take $X.XX EPS that referenced overhead XX% As you're of of have there $X.XX back teens and to a temporary the into up delivering a about would mid for right announcement Thanks. you're about in if that been inferred the the back you off date question of was asked,

Stephen Tanal

thank you. Perfect,

Operator

from Thank you next question Mr. Sopcak Stanley. Tanal. Zach with The comes Morgan

question. your ask may You

Zach Sopcak

the Hey, question. thanks for

and to from - concerned not transition of of straightforward the to in all I the impact a So there get that going about your to And XXXX that CAGR there ask want XXXX Thank range? significant process is you. is like to how it's is anything XX%-ish shifting your target you're but contributor in Two a about terms other to is one members transition OptumRx. questions, I that it at earnings, understand two, member experience? with that

David Cordani

David. Zach, good it's morning

I'll PBM you, so operate remind our we years. stepping done So own successfully back today many and own and for

Express little quite a Express is good a about others the for over record relationships a volume to positions those place. us perform Optum transition them to there's terms to of to order and modules that us, for take and implemented will to to a constructive services take next with year will could timeframe of is basis Catamaran terms and within into modules an successful in from aligned with it magnitude Optum it's Scripts Scripts good a which That an It Earlier very volumes initially transition positive. significant way strategy of on Cigna within some disciplined six and modules Optum plan One our and services successfully of of We partner. worked orderly and the partner ago track this up create that and that transitioning with in way a transitioned some make also years those services announced well when five, to the and XX% shared maybe volumes that as their view will approximate we in have us a of break $XX.XX today's uptake higher horizon. place two-year back respective loss think of you internalized transitioning Anthem. orderly

providers. will successful years. have of from basis I the of it very take that basis hope disciplined place a services other next is to and a record transitioning helps. but quite it significant, over again, couple of ratable So And in a on we track

Operator

Thank you, Mr.

Wells Sopcak. from next Securities. Peter question Costa Fargo comes The with

may You ask question. your

Peter Costa

the you Anthem to away to of relative accelerated So that when bringing Optum you explain, timing in-house from you to go David, along decision did choosing early business of early? go have that notify line can and Anthem you their

David Cordani

had orderly and The morning. process answer good very PBM. successful your a We growing disciplined captive we question have and a Yes, very and laid is to no. out

physician the out partners. customers successful laid very our we've timeline strategy and disciplined Optum been captive partnership executing center approach around a the coordination value transition PBM in and within with our very We services orderly front allows that strong with that and have a shared for two-year relationship very We a a putting delivery.

appropriate timeline is we around with that strategy provider service believed partner. that commensurate was our highly and and the aligned what So

Peter Costa

notify And of and the goes did stranded decision of I in-house? you XX% when should with Anthem of just assume $X.XX that coming away then overhead Optum from their

David Cordani

to into I'm timing. and not going get dates

mechanisms that removed. to your are to of there a Peter, and I way three part to dispatch the articulated overhead second the of be it think will that think statement we about before,

Cigna is in plan First Scripts that and was the we laid EVI good with volumes out on growth the portfolio; and two, basis; portfolio. XXXX growth a the an orderly good start foremost organic disciplined third, of then very organic very disciplined and within being executed the and leverage Express

All we see the to from the to will to so that was place as the additive the some contribute structure, the EVI the in Cigna capabilities. and of we program actually out cost future put take of and sustained look growth leverage organic opportunities

Operator

Thank from with Costa. next Mr. David comes you, McDonald The question SunTrust.

question. You may your ask

David McDonald

now therapeutic I and some if that things Evercore also the of was over or morning. time, a wondering quick and there products pharmacy leverage is et sell that medical, an additional channel incremental cetera? have good clinical one services question, the opportunity you Yes, deepened just scaled now order to resource is combination like meaningfully expand through an have there Express centers, David, and mail to horsepower you potentially of brings, opportunity further business.

David Cordani

David, good morning.

exist other will technologies, a to could back and to, look we clinical integration services a on phenomenal early remarks mail order how in clinical and with the fulfillment what part by And innovative bringing I for first prepared around core to got go has record the coupled Express forward about call A question, to capability that disciplined patents, it continue or proven used that relative a your services of the absolutely. clients excellence the to the of patients it's the a fashion you between capabilities service was a clinical organizations Scripts leveraged and benefit absolutely, conversations the coordination having leverage, so deep that et on excited little cetera. have leverage tremendously potentially quite built Health in that’s basis Specific together. capability, bit track leverage. be Accredo pretty Home shared that at appreciate customers, core come from and articulated I capability I of that they is a some both and So aided out. appreciate

basis the tremendous affordability the going within insights more to core back the the working in through clinical data a and clinicians focus to capabilities, for or improvements comprehensively improving you and there capabilities on already articulate set our further from Secondly, understand Corporation are of function a life the of we additional ability to Evercore as opportunities enrich and and are standpoint, health patients, practicing where quality. clinical combined step clients benefiting which customers needs

both point more already. second points be we So traction early yes excited and to on on couldn't the the

Operator

The Mr. question Fidel MacDonald. Stephens. comes next you, with from Scott Thank

may your You ask question.

Scott Fidel

give just commentary trends earnings question two guidance Hi, you're how qualitative maybe giving XXXX? us more on, so know are can directional about anymore thanks. those in you segments Good morning. I Group specific thinking for I had or if on a not Insurance, International for earnings just interested some you

Eric Palmer

Hey and mind in good underlying to is continues to headlines all return Life that continue continues grow in work platform there, Scott, expansion services of of growth changes both business the the forward XX, will it's and International into to and with our that growth couple that and to New to and of those but momentum OnePath would on a example chassis be we both In differentiated of really we've platform as us. grow disability A gotten move continued the Eric. to to Thanks businesses. again regard first chassis the have well We growth for businesses. expect this continue to so that. an again continue We me for for will as come International that of acquisition Markets and so to the closed November well. the overall, business, that to Zealand Markets in platform no story on momentum the continue well,

Operator

BMO with next you, Borsch comes from Markets. Matthew The Fidel. Thank question Capital Mr.

question. may You your ask

Matthew Borsch

the question just the immediately not into payers in rule draft would way relative this rebates if so impact the impacted this but if on not point commercial at I rebates earnings by be to understanding well? so, theory can if this as are ask rule, were what to or Maybe entirely a commercial the disappear for

David Cordani

theoretical $XXX that's about it rebate of you morning, think an why We is David. good number. question Hi, shared relationships is scale to and of volumes be - and helpful for the equates unanswerable the portfolio I again a add answer the have XX% indicated rebates today theoretical retains clients of Stepping pass-through about your all evolve. all EPS it the previously action continues back those Scripts articulate. million, within in is discounts equates don't about and the Express Scripts full that reason Express attempt to pass-through I about because XX% to a before the clients two-thirds to and tax model of of would opt

So forward direction or Scripts it's Cigna, toward more the on. with value evolution plan Express commercial on. comprehensively has clients, combined direction that of value corporation to total It's the of are and relationships the in clients terms the governmental continuing health direction they our based the clients, total toward been the contracts is was cost, whether and move and our on goes of direction agencies, share that

total opposed total a overall the and go to will to move you is evolve forward. away perceive maximize trying cost So from and lever which levers continue to single qualities tools see and value those continue to us as maximize

Operator

Thank The from you, question Rhyee Mr. comes next Charles Borsch. with Cowen.

may your You ask question.

Charles Rhyee

to you question. reaffirmed share, your then contribute kind medical really that that wanted of for when because $XX transitioning Yes, hey of the that relation obviously And the other growth What think optimizing kind we Thanks. early, of overhead us some little that correctly guidance quantify side a synergy is, of the to think target. XXXX? if opportunities and and sizing taking synergy XXX into bit a an now pieces context $XXX in And to the opportunities towards of to pharmacy of guess thanks previously million. I $XX $XXX million number sort you about if wanted about the to Anthem for put was a can you I'm with what then target XXXX little sort I a the of we just XXXX these of target about start it. guided ask, largely a relation I with outlined to trajectory think you in what and bit, recall obviously are kind I asking

Eric Palmer

ask couple start Charles maybe commentary. David color the to with and Eric. of it’s overall a I'll give and more some pieces

be reflect the those XXXX costs million that had first So administrative back continue multiple years of expected $XXX over of transaction. synergies at for the last primarily we the discussed we quarter in pretax track last administrative that with and and years We're over in and and we the four $XXX million synergies occur as XXXX out we we to generating and there, that a as to put builds were as the that disclosed on synergies in XXXX. quantified assumed level year, Macro would

generate in to our medical to items meaningful through discussed expect we order Those benefits the will of and today. both client. some David that costs, as additional pharmacy combination primarily through the the customers correct improvements, You're in and the combinations the and clinical benefit of other

pieces terms additional As consistent on synergy track we transaction think color it are initially. should again, with teed here. those up David pieces give is about you how are the we in and the some the and will of

David Cordani

and for $XXX board the Yes, XXXX million and of to you between when bridge, Eric there's about so just just already which the P&L major underlying synergies the XXXX. both to synergies to $XX de-leveraging try articulated three $XX the XXXX of the the that to and per think and get before basic base performance de-leveraging The to the building tax assets, to on blocks reference the you to articulate that's today share. were impact made we cross-walk path,

not built net clients beyond Scripts the of additional further potential growth, well are passing growth at portfolio the enhancements we leverage relationships, excluded the what it's anything is today of leverage or Scripts which additional for portfolio. beyond the value and a Additional customer the of Express as into for to into deepening level accretion the further the Express as the and the from that new core shareholder and growth whether businesses back of that versus and go performing from as said are opportunities chassis are of transition identify forward Cigna portfolio model we've above opportunities

So cross-walk de-leveraging to XXXX. to get us and the basic performance, is synergies XXXX from base

Operator

Rhyee. Leerink. Mr. Gupte SVB from next comes The you, Ana Thank question with

your question. ask may You

Ana Gupte

David administrative and season morning. now the of basis on Express just administrative and far Can on I Hey gains to Optum about follow on followup know savings see Cigna term loss Express the $X medical, XX/XXXX concept renewal and when both accelerated impact power as now, talk you can thanks, on good near about the will commentary then your question medical – a up just the the to more is proof savings from on season combined there or today's in billion accelerate medical share as and and given And you growth? Rx? your business schedule in you Anthem do potentially July on or XXX had ratio is costs side of going it in the together, PMPY and we how much you or or in is guidance SX to trend can even anything the the business just sooner, provided is synergies retain around XXX talking much that of

David Cordani

good it’s morning, Ana, David.

the Let responsive here. be points me try on to

a times in couple we synergies as synergies articulated XXXX, the there's towards Eric show has signed for a of million $XXX the so Specifically $XXX step up a million.

disciplined. very being we're note You'll

assume with impact, of in come the doesn't but that transitioning business outpace an client expenses with EPS delivering et articulated XX% orderly We that, plan We cetera, basis. the sure and that guidance the and and may out to we're we've are growth. making the that XX%

favorably and synergies And very, or will the glimpse and business customers We're creation, growth benefit I Specifically on and as services all cost and they have. and year programs now. retention XXXX XXXX. Express into outstanding to of XXXX portfolios value unfold our it for that we in which customer good Scripts clients relates very to articulated and depending medical and and the I XXXX another to basis throughout very right a our growth have that early note client have tracking good stepping on would an renewals products, pharmacy are going

in in which we systematically out will capabilities capabilities Day will for words, of the of of expanded both propositions further and a to we effective data. to as net Cigna doesn't not our rapidly of to to clients will of and those unfold a health concept with more marketplace, challenge clients that bring for As it our roll exist further are proof build it tangibility choice the for something clients, De seeking today for the new The ourselves is into customers and additional a we step you some give in clinical and some offering of expand life and to we not workflows, agency terms concept, to even XXXX enhancing supporting unfold think the Investor and use to throughout technologies integration rather benefit concept plan of about commercial seek XXXX. At pretty and with examples, and some back concept. we but choice you governmental coming novo new should relates clients, XXXX proof with are net value of as XXXX

Operator

from Gupte. Capital comes Morgan The with Ms. Frank you, Thank RBC Markets. next question

question. your ask may You

Frank Morgan

or it the then the headwinds out is for Thank And simply that you're morning. savings realize one. Anthem-Optum I profitability businesses why number think Anthem just the segment, about versus the back to just conservatism? Integrated Thanks XX% a for the as recovered. in should standpoint, segment, that up be the like you there think you volume it as year saw I on loss should calling book Good the mainly That's bringing one was would thinking revert was you. number individual that call that last the the two, in-house? color to anything outperformance when Medical profitability of swap you specifically year the be of about could on of But from how by you'll

David Cordani

excluded. the you about from Good the from of that think from to day earnings two components. morning, impact our profitability excluded your been the the we all of announced and question not it's EPS Step an David. would have On it. We've standpoint conversation I proposed of those from first transitioning aspects ask away the clients combination

to We that XXXX out the from basis walk system overhead full temporary and will have laid of be this we the we and levers expeditious in before that. that not from multiple about think fashion of through removed they're versus I because $XXX standpoint. a the Cigna comparables would that will profitability dislocation tax a in from to you But pretty portfolio have address ask not portfolio transparency million Anthem

are individual we're of quite As it relates correct. you to that, the portfolio in third market, the with fact call We individual businesses. pleased the performance of articulated our quarter the

for are XXXX higher end somewhere we delivered it to and more which strategic plan is in think high marketplace. terms it systematic margin planned line it's dislocation you design We is nothing threshold in X% There portfolio It expected end above look between and a for our the program to plan in XXXX. of program in be when a is XXXX versus that of for was marketplace to range that what indication the planning that purposes tax has and outpaced that it that We just prudent at margin in X% profitable tax margins to of and programs. X% be and that is. that of sustainable of we at XXXX, the for which beyond our X% strategic believe before for in runs we've was appropriate that more the trajectory and margin beyond before believed in margin that significant a to view with

Operator

David you. Windley comes question Morgan. Jefferies. Thank Mr. final The from with

You ask your may question.

David Windley

now Hi, unfavorable you. all Are and the $XXX clarification because And those on excluded? the assumption to results, million Anthem allocated then do on claims? some thank and that become the were you taken a Good another morning, or real to actions the last Anthem any thanks squeezing kind that beginning stranded you excluding would back margins to journey all it, unfavorable million, for Disability were they calls up $XXX claims. from think business $XXX those of then the of David, as very process exclusion at bring be me evolve said have normal disability the related, score from way in. weren't those if need about relative million things levels been to has be and out the to to one

Eric Palmer

Yes David, it's Eric.

favorable would that. matter David on Really timing take I'll one second a maybe that to that the have we or thinking timing along million in any that way. they the right, Q&A think variability in to things number allocated been group that line that first a the going the away a described as just reasons contract but we've gone anything would to lines, life one have been we I'm bit can out quarter and so there, along and on call all experience about be just cost it volumes for able lines, $XXX about through disability, a away the calls over had because but systemic thinking the wise earlier talked now won't insurance allocated session of here. earlier quarter costs the of the of So different be quarter On by little unfavorable experience just kind be those those here. transition about would the that those but or particularly, just in didn’t disability happen time it anything about

Operator

we will closing David the you, Windley. back Cordani to now Mr. remarks. turn for And Thank call

David Cordani

some growth just our substantial I'd points and revenue XXXX. call our across up wrap highlight key delivered from in like To our earnings to Cigna you. businesses Thank discussion.

to expands on We anytime and and our so to mind. around services which approach focuses This preferences. access whole the further patients their coordination person available based integration on are our choice, of individual and health both is needs approach broadening committed and needs also customers body anywhere

XXXX of and in growth paths beyond. a sustained multiple well portfolio We with for positioned businesses have

which over to $XX $XX average and For position to for three thank to XXXX we our flows, target the to expect years target us We annual us growth strong you our put growth, XXXX. deliver growth, EPS and look on free future next revenue joining and forward EPS conversations. our call today attractive for cash XX% deliver we EPS

Operator

will call. and Cigna will XX to Investor this be Cigna’s Ladies gentlemen, available business XXXX concludes be results available to quarter Relations conference fourth shortly. additional recording respond days questions for following this A review. this of

You by XXX-XXX-XXXX. may you access free for the code is toll participating. recorded or dialing XXX-XXX-XXXX Thank conference toll No pass required.

We will now disconnect.

Cigna (CI) 1 Feb 192018 Q4 Earnings call transcript