BLOOMFIELD, Conn., Jan. 6,
2021 /PRNewswire/ -- Global health services company
Cigna Corporation (NYSE: CI) today announced that its Board of
Directors has instituted a quarterly cash dividend and declared the
first quarterly cash dividend of $1.00 per share of Cigna common stock to be paid
on March 25, 2021 to shareholders of
record as of the close of trading on March
10, 2021.
"Cigna has a long track record of effective capital deployment,
and our initiation of a quarterly dividend demonstrates our
confidence in our ongoing ability to drive growth as we meet the
needs of those we serve," said David M.
Cordani, president and chief executive officer. "We are
excited to share more at our Investor Day on March 8, 2021 about the strategic positioning of
our businesses, drivers of ongoing, differentiated growth, and
strong operating cash flow generation, which position us to deliver
attractive shareholder returns."
"The Board's initiation of a quarterly dividend is part of a
balanced capital deployment strategy to maximize shareholder
value," said Brian C. Evanko,
executive vice president and chief financial officer. "As we
complete our intended deleveraging plans, our strong operating cash
flows and forward growth path enable us to initiate a quarterly
dividend while maintaining strong liquidity and capital flexibility
in order to support ongoing investments for growth and expected
meaningful share repurchase activity."
Cigna intends to pay regular quarterly dividends, with future
declarations subject to approval by its Board of Directors and the
Board's determination that the declaration of dividends remains in
the best interests of Cigna and its shareholders. The decision of
whether to pay future dividends and the amount of any such
dividends will be based on the Company's financial position,
results of operations, cash flows, capital requirements, the
requirements of applicable law and any other factors the Board of
Directors may deem relevant.
As of December 31, 2020, Cigna's
outstanding share repurchase authority as approved by Cigna's Board
of Directors was approximately $3.9
billion. Cigna expects to deploy at least $2 billion to share repurchase during the first
quarter of 2021.1 From November
5, 2020, when Cigna reported third quarter 2020 earnings,
through December 31, 2020, Cigna
repurchased 5.9 million shares of common stock for approximately
$1.2 billion.
Cigna will be hosting its virtual Investor Day on Monday, March 8, 2021. A live webcast of the
presentation will be available on the Investor Relations page on
www.cigna.com. A replay will be available for four weeks after the
event at www.cigna.com.
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,
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 more than 170 million customer relationships
around the world. To learn more about Cigna®, including links to
follow us on Facebook or Twitter, visit www.cigna.com.
Notes:
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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.
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CAUTIONARY STATEMENT 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 future dividends, share repurchases and other capital
deployment plans 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," "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 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, 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 Form 10-Q for the quarter 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.
Investor Relations Contact
Alexis Jones
1 (215) 761-3637
Alexis.jones@cigna.com
Media Contact
Jim Cohn
1 (224) 214-8781
James.cohn@cigna.com
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SOURCE Cigna