随着会员人数的减少健康保险公司的利润率反弹

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REFINITIVSTREETEVENTS

EDITEDTRANSCRIPTCI.N-Q42023CignaGroupEarningsCall

EVENTDATE/TIME:FEBRUARY02,2024/1:30PMGMT

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2

FEBRUARY02,2024/1:30PM,CI.N-Q42023CignaGroupEarningsCall

CORPORATEPARTICIPANTS

BrianC.EvankoTheCignaGroup-ExecutiveVP&CFOandPresident&CEOforCignaHealthcareDavidMichaelCordaniTheCignaGroup-President,CEO&ChairoftheBoard

EricPaulPalmerTheCignaGroup-ExecutiveVPforEnterpriseStrategy,EvernorthHealthServices,CEO,President&DirectorRalphGiacobbeTheCignaGroup-SeniorVP&HeadofIR

CONFERENCECALLPARTICIPANTS

AlbertJ.WilliamRiceUBSInvestmentBank,ResearchDivision-Analyst

DavidHowardWindleyJefferiesLLC,ResearchDivision-MD&EquityAnalyst

ErinElizabethWilsonWrightMorganStanley,ResearchDivision-EquityAnalyst

GaryPaulTaylorTDCowen,ResearchDivision-MD&SeniorEquityResearchAnalyst

GeorgeRobertHillDeutscheBankAG,ResearchDivision-MD&EquityResearchAnalystJoshuaRichardRaskinNephronResearchLLC-Partner&ResearchAnalyst

JustinLakeWolfeResearch,LLC-MD&SeniorHealthcareServicesAnalyst

KevinMarkFischbeckBofASecurities,ResearchDivision-MDinEquityResearch

LanceArthurWilkesSanfordC.Bernstein&Co.,LLC.,ResearchDivision-SeniorAnalystLisaChristineGillJPMorganChase&Co,ResearchDivision-Analyst

ScottJ.FidelStephensInc.,ResearchDivision-MD&Analyst

StephenC.BaxterWellsFargoSecurities,LLC,ResearchDivision-SeniorEquityAnalyst

PRESENTATION

Operator

Ladiesandgentlemen,thankyouforstandingbyforTheCignaGroupIsFourthQuarter2023ResultsReview.(OperatorInstructions)Asareminder,ladiesandgentlemen,thisconference,includingtheQ&Asession,isbeingrecorded.

WeIllbeginbyturningtheconferenceovertoRalphGiacobbe.Pleasegoahead.

RalphGiacobbe-TheCignaGroup-SeniorVP&HeadofIR

Great.Thanks,operator.Goodmorning,everyone.ThankyouforjoiningtodayIscall.IImRalphGiacobbe,SeniorVicePresidentofInvestorRelations.WithmeonthelinethismorningareDavidCordani,TheCignaGroupIsChairmanandChiefExecutiveOfficer;BrianEvanko,ChiefFinancialOfficerofTheCignaGroupandPresidentandChiefExecutiveOfficerofCignaHealthcare;andEricPalmer,PresidentandChiefExecutiveOfficerofEvernorthHealthServices.Inourremarkstoday,DavidandBrianwillcoveranumberoftopics,includingourfourthquarterandfullyear2023financialresultsandourfinancialoutlookfor2024.Followingtheirpreparedremarks,David,BrianandEricwillbeavailableforQ&A.

Asnotedinourearningsrelease,whendescribingourfinancialresults,weusecertainfinancialmeasuresincludingadjustedincomefromoperationsandadjustedrevenues,whicharenotdeterminedinaccordancewithaccountingprinciplesgenerallyacceptedintheUnitedStates,otherwiseknownasGAAP.AreconciliationofthesemeasurestothemostdirectlycomparableGAAPmeasures,shareholdersnetincomeandtotalrevenues,respectively,iscontainedintodayIsearningsrelease,whichispostedintheInvestorRelationssectionof.Weusethetermlabeledadjustedincomefromoperationsandadjustedearningspershareonthesamebasisasourprincipalmeasuresoffinancialperformance.

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FEBRUARY02,2024/1:30PM,CI.N-Q42023CignaGroupEarningsCall

Inourremarkstoday,we'llbemakingsomeforward-lookingstatements,includingstatementsregardingouroutlookfor2024andfutureperformance.Thesestatementsaresubjecttorisksanduncertaintiesthatcouldcauseactualresultstodiffermateriallyfromourcurrentexpectations.Adescriptionoftheserisksanduncertaintiesiscontainedinthecautionarynotetotoday'searningsreleaseandinourmostrecentreportsfiledwiththeSEC.

Pertainingtoourfinancialresults,inthefourthquarter,werecordedanetafter-taxspecialitemchargeof$552millionor$1.88pershare.Detailsofthespecialitemsareincludedinourquarterlyfinancialsupplement.Asdescribedintoday'srelease,specialitemsareexcludedfromadjustedincomefromoperationsandadjustedrevenuesinourdiscussionoffinancialresults.Additionally,pleasenotethatwhenwemakeprospectivecommentsregardingfinancialperformance,includingourfullyear2024outlook,wewilldosoonabasisthatincludesthepotentialimpactoffuturesharerepurchasesandanticipated2024dividends.

Withthat,I'llturnthecallovertoDavid.

DavidMichaelCordani-TheCignaGroup-President,CEO&ChairoftheBoard

Thanks,Ralph.Goodmorning,everyone,andthanksforjoiningourcalltoday.2023wasaverystrongyearforourcompanywithconsistentperformanceandsustainedgrowth.Weexecutedwithdisciplineacrossourbusinesses.Wedeliveredforourcustomersandpatients,ouremployerclients,ourhealthplanpartnersandtheothersweserve.Andwithourexpertiseanddiversebreadthofcapabilities,wecontinuetoimproveaffordabilityandclinicaloutcomesaswellascontinuingourworktoexpandaccessandchoice.Aswelookforward,we'recarryingmomentuminto2024andweexpectanotherstrongyearofperformanceandgrowth.

Nowtoday,I'llfocusmycommentsonkeystrategicdriversofourperformancelastyearandhowwecontinuetoevolveandadvanceourbusinesstosustainourimpactandgrowth.Brianwillthenwalkthroughadditionaldetailsaboutourperformancefor2023aswellasouroutlookfor2024.Thenwe'lltakeyourquestions.

NowbeforeIgointoourresults,Iwanttocommentontheannouncementwemadeearlierthisweek.WereachedadefinitiveagreementtosellourMedicarebusinessestoHCSC.Weexpectthistransactiontocloseinearly2025followingcustomarylegalandregulatoryapprovals.Andwhilewecontinuetoseetheseniorsmarketasanattractivegrowthmarket,weconcludedthatourMedicarebusinesses,whilelargeatabout$12billioninrevenue,wouldrequiresustainedinvestmentsandfocusandcapitalaswellasdedicatedresourcesthatweredisproportionatewiththeirsizewithinTheCignaGroup'sportfolio.

Additionally,withEvernorth'sbroadhigh-performingserviceportfolio,wewillcontinuetoservetheneedsofseniorsandgrowourbusiness.Iwouldnotethataspartofouragreement,HCSCwillbeservedbyEvernorthforcontinuedservicesforthecustomersweareselling.Additionally,we'reexpandingthereachofEvernorth'sportfolioandseesignificantcontinuedgrowthopportunitiesinGovernmentservices,includingMedicare.

NowasweconsidertheperformanceofourMedicareAdvantagebusinessin2023,inthefourthquarter,resultswereinlinewithourexpectations.Andfortheyear,webalancedhigh-qualityandcompetitivebenefitsofferings,continuedtargetmarketexpansionanddisciplinedpricingactivity.

Nowwiththat,let'smoveintoour2023headlines.Broadlyfor2023,weexceededourfinancialcommitments:fullyeartotalrevenue,wedelivered$195.3billion;fullyearadjustedearningspersharewas$25.09;andcashflowfromoperationsof$11.8billion.Thisperformanceextendsourtrackrecordofdeliveringconsistentpositiveresultsinthefaceofdynamicmarketconditions.Itspeakstothepowerofourfranchiseandthepurposefulwaywe'veconstructedourcompany,continuingtobuildonthestrengthofCignaHealthcarewhilealsoshapingandexpandingourEvernorthHealthServicesplatformtoleadthewayinaddressingevolvingneedsinthemarketplace.

Asaresultofourfocus,disciplineandsustainedexecution,overthepastdecade,we'vedeliveredadjustedEPSgrowthofmorethan13%onanannualizedbasis.Inthe5yearssinceouracquisitionofExpressScripts,we'veachievedorsurpassedeverygoalweestablishedforthecombinedcompany.Through2023,we'vegrownrevenuebyover$50billionandmetorexceededouradjustedEPSobjectiveseachyear,andwe'vereturned$27billiontoshareholdersthroughsharerepurchaseaswellasattractivedividendpayments.In2023,afterincreasingouroutlookforadjustedEPStwiceoverthecourseoftheyear,wehadastrongfinishanddeliveredfullyearadjustedEPSthatwasbetterthanexpectations.Inshort,we've

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demonstratedtheabilitytoprofitablyevolveourbusinessandservicesthatweprovideovermanyyears,whichenableustocontinuetodeliveronourcommitmentsandgrow.

NowI'lldiscussourperformanceingreaterdetail.I'llstartwithEvernorth.InourExpressScriptsbusiness,wesuccessfullyimplementedthesinglelargestcontracteverinthepharmacybenefitsindustry.Throughout2023,thousandsofcoworkerscollaboratedandworkedwithdedicationsowe'dbereadytobeginfulfillingwellover400millionannualprescriptionsfor20millionCentenecustomersstartingatthebeginningofthisyear.

Additionally,Centenewasamongsthundredsofadditionalclientsthatwe'rereadytoservein2024,andI'mproudtosaywe'reofftoastrongstart.ThegoodworkofourteamhashelpedusmeettheneedsofourcustomersandreinforcethetrustthatCenteneandotherclientsplaceinourcompany.

AnotherEvernorthhighlightfor2023isthatweonceagainadvancedindustry-leadinginnovation.Lastspring,welaunchedaseriesofinnovations,includingClearCareRx,tosupportaffordability,additionaltransparencyandbroaderchoice,aswellasIndependentRx,topartnerandenablemorecloselywithindependentpharmacies.TheninNovember,wewentfurtherinexpandingchoiceforclients,fundingtheirpharmacybenefitswithExpressScriptsClearNetwork.Wewerethefirsttolaunchascaledpharmacynetworkmodelofferingcost-basedpricing.

Inaddition,ouracceleratedgrowthbusinesseswithEvernorthfueledourmomentumaswell.AcceleratedgrowthinAccredoSpecialtyPharmacyandCuraScriptSDbusinessesandinourcareservicesbusinessescontributedtoEvernorth'sstrongtopandbottomlineresults.WithAccredoandCuraScriptSD,we'resupportingpatientsandproviderswithsafeandeffectiveuseofthegrowingvolumeofhigh-costclinicallycomplexspecialtydrugs.Wealsocontinuebuildingoutourcareserviceplatformstoensurepatientscanaccesscarewhenandhowtheyneeditwhilealsoremainingconnectedwithphysicalsiteofcare.OurMDLIVEvirtualplatform,forexample,isnowavailabletoover60millionindividualsaspartoftheirbenefitsofferingandissupportingagrowingvolumeofcare,includingover2.2millionvirtualvisitsin2023.OurresultsclearlydemonstratethatwithEvernorth'sleadingcapabilities,weareavaluedandflexiblepartnerforhealthplans,employers,governmentalorganizationsandhealthcareproviders.

InCignaHealthcare,wedroverevenueandcustomergrowththroughdisciplinedpricingandmedicalcostmanagement.Weserveemployersandindividualswhotrustustoguidethemthroughthehealthcaresystem.Ourleadingclinicalcareprogramscontinuetosupportourcustomersandpatients,equippingthemwiththerightinformationandinsightstheyneedtomakethebestchoicesfortheirhealthandvitality.Ourongoingpricingandcontinuedprogressinaffordabilityinitiativesin2023resultedinamedicalcareratiothatwasbetterthanexpectations.

OurU.S.CommercialEmployerbusinesshadanoutstandingyearwithcontinuedstronggrowth.Thiswasdrivenbyourteam'scontinuedsuccessinstrengtheningourcompetitivepositionthroughimprovedaffordabilityandleveragingourhigh-performancenetworksanddigitallyenabledservicesasweexpandcareaccess,coordinationofcareandoverallvalue.Ourindividualexchangebusinessperformedbroadlyinlinewithourexpectationsforthefourthquarter.Andwiththeactionswe'vetaken,weareontracktodeliverimprovedprofitabilityin2024.Andininternationalhealth,weachievedanotherpositivetopandbottomlineresults.Ourhighqualityandlocalizedhealthsolutions,supportedbyourglobalprovidernetwork,continuetoresonateverywellwiththegloballymobilepopulationandemployeesofmultinationalcorporationsaswellasintergovernmentalorganizations.

Nowturningto2024.Wewillsustainourgrowthandhighperformancebysharplyfocusingonthegreatestopportunitieswithawell-balancedportfolioofcomplementarybusinessesandacleardurablestrategicgrowthframework.First,wewilldrivecontinuedsteadypredictablegrowthfromourhigh-performingfoundationalgrowthbusinesses:pharmacybenefit,U.S.CommercialEmployerandourinternationalhealthbusiness.

Ourclientsdependonourpharmacyservices,forexample,andourexpertiseaswellasourleadershipinloweringcostforprescriptiondrugsandaddressinggrowingneedssuchasthehighdemandfortheGLP-1classofdrugsforweightlossanddiabetes.Wehavealonghistoryofguidingappropriateaccesstomedicationsandprovidingspecializedclinicalsupport,andwewillcontinuetobuildontheseeffortswithnewprograms,suchasourEnCircleRxprogram.We'realsosupportingcustomersinadditionalways,includingbyofferingenhanceddigitaltoolstohelpthembetterunderstandthevalueoftheirpharmacybenefits.

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FEBRUARY02,2024/1:30PM,CI.N-Q42023CignaGroupEarningsCall

We'vebeensuccessfulingrowingourU.S.CommercialEmployerbusinessformorethanadecadeandcontinuetoviewthisasagrowthmarketforTheCignaGroup.Wecontinuetoleveragethestrengthincoordinatingagrowingnumberofpointsolutionsforourclientsandimprovingclinicaloutcomesforourclients.Additionally,wecontinuetoactasadisruptiveinnovatorforsmallandmiddle-sizedclientneeds.

Second,wewillbuildonfurthermomentumforouracceleratedgrowthportfolio,ourfast-growingscaledSpecialtyPharmacybusinessandourcareservicebusinesses.Wehavetremendousopportunitiesintheselargeandexpandingmarketswithourdifferentiatedspecialtycapabilities,supportingpatientswithhighcostandclinicallycomplextreatments.Andwithincareservices,we'readvancingourcapabilitiesinbehavioralhealth,virtualandhomecareaswellascoordinatedcareprogramsforspecificconditions.

Insummary,for2024,wewillgrowourcustomerandrevenuebaseagainandourearningsandoperatingcashflowatthehigherendofourlong-termstrategictargets.We'veincreasedourexpectationsforfullyear2024adjustedEPStoatleast$28.25.Weexpectourconsolidatedadjustedrevenuestogrowatleast20%,andweexpecttogenerateatleast$11billionofoperatingcashflow.Andwewillcontinuetoreturncapitaltoourshareholders,includinga14%increaseinourquarterlydividend.

NowbeforeIwrapitupandturnitovertoBrian,IalsowantedtomentiontheannouncementswemadelastmonthaboutexpandingrolesforBrianandEric.BrianhasbeenourChiefFinancialOfficerforthepast3yearsandwillcontinueinthatrole.HewillalsoexpandhisresponsibilitiesasPresidentandCEOofCignaHealthcare.EricisexpandinghisresponsibilitiesasExecutiveVicePresidentofEnterpriseStrategyforTheCignaGroupwhilealsocontinuingasPresidentandCEOofEvernorthServices.BrianandEric'sexpandedpositions,aswellasotherleadershipchangesweannounced,providefurtherclarityofourprioritiesandstrategyaswellastheextentofreachandimpactwecontinuetohave.Importantly,italsoreinforcesthedepthofourmanagementbench.

AtourInvestorDayonMarch7inNewYorkCity,you'llhearmorefromme,BrianandEric,aswellasotherkeyleadersfromacrossourcompany.Welookforwardtosharingwithyouourviewsoftheexpandedaddressablemarketsweseeandhowwe'vepositionedTheCignaGrouptoadvanceournextchaptersofattractivegrowth.

NowI'llbrieflysummarize.Withthemomentumwecarriedoutof2023,we'reraisingourguidanceforEPSin2024.We'rebuildingonastrongyearofdisciplinedexecution,performanceandgrowthacrossourcompany.Wedeliveredforourcustomersandclientsandpartners.Wekeptourcommitmentstoourshareholders,includingdeliveringadjustedEPSfor2023of$25.09,whichwasaboveouroutlook,andwegenerated$11.8billionofcashflowfromoperations.We'vesharpenedthefocusofourportfoliofurthertoensurethatwe'repositionedtodriveanotherstrongyearforourcompany.We'rebuildingonaconsistenttrackrecordofdisciplinedexecution,innovationanddifferentiatedpartnerships.We'veincreasedouroutlookfor2024andnowexpectEPSofatleast$28.25,andwewillcontinuetoadvancethestrategicdeploymentofcapital,includingusingthemajorityofourdiscretionarycashflowforsharerepurchasein2024.We'llhaveanotherstrongyearofperformance,continueourtrackrecordformorethanadecadeofdeliveringagainstour10%to13%long-termadjustedEPSgrowthtargetwhilemaintaininganattractivedividend.

Andwiththat,I'llturnitovertoBrian.

BrianC.Evanko-TheCignaGroup-ExecutiveVP&CFOandPresident&CEOforCignaHealthcare

Thankyou,David.Goodmorning,everyone.Today,I'llreviewTheCignaGroup'sfourthquarterandfullyear2023resultsandprovideouroutlookforfullyear2024.

We'reproudtodeliveranotherstrongyearforTheCignaGroup,reflectingfocusedexecutionandgrowthacrossEvernorthandCignaHealthcare.Lookingatfullyear2023,somekeyconsolidatedfinancialhighlightsinclude:revenueof$195.3billion,adjustedearningspershareof$25.09andcashflowfromoperationsof$11.8billion,allwhileexceedingourinitialexpectationsfortheyear.Fourthquarterenterpriseresultswereparticularlystrongwithrevenuegrowing12%to$51.1billion,after-taxadjustedearningsgrowingto$2billionandadjustedearningspersharegrowingto$6.79.Theseresultsreflectbroad-basedstrengthacrossthecompany,andthismomentumpositionsuswellforgrowthin2024.

Regardingourgrowthplatforms,I'llfirstcommentonEvernorth.2023markedanotheryearofsustainedgrowthandprofitabilityinEvernorthasourmarket-leadingclinicalcapabilitiesandinnovativesolutionscontinuetocreatedifferentiatedvalueforourhealthplan,employerandgovernment,

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clientsandcustomers.Fourthquarter2023Evernorthrevenuesgrew12%to$40.5billionandpretaxadjustedearningsgrew10%to$1.9billion,bothofwhichexceededexpectations.EvernorthIsresultsinthequarterweredrivenbycontinuedstrongperformanceinourSpecialtyPharmacybusiness,whichsawadouble-digityear-over-yearrevenuegrowthtoreach$60billioninrevenuesforfullyear2023,andourunwaveringfocusonreducingnetcostsforourclientsasnewdruginnovationscometomarket,includingGLP-1agonists,biosimilars,specialtygenericsandotheremergingtherapiesforclinicallycomplexconditions.

Thefourthquartercappedastrong2023forEvernorthwithpretaxadjustedearningsgrowing5%fortheyear,aboveexpectations.WeachievedthisevenwhileincurringmeaningfulspendingrelatedtotheimplementationofourCentenerelationship.EvernorthIsfavorablerevenueandadjustedearningsgrowthinfullyear2023reflectedstrongexecutionandexpansionacrossourfoundationalbusiness,ExpressScriptsandourscaledacceleratedgrowthbusiness,AccredoSpecialtyPharmacy.

NowturningtoCignaHealthcare.Weoutperformedexpectationswithfullyear2023pretaxadjustedearningsgrowing9%,reflectinganotheryearofhighlyeffectiveexecution.Fourthquarter2023adjustedrevenueswere$13billionandpretaxadjustedearningswere$969million,representingstrongyear-over-yeargrowth.Themedicalcareratiowas82.2%,favorabletoexpectations.OurmedicalcareratiofavorabilitywasprimarilydrivenbyourU.S.CommercialEmployerbusiness,particularlywithinourStopLossproducts,whichoutperformedexpectationsduetolowercosttrendsonhighdollarclaimants.Additionally,wesawlower-than-expectedviralcostsinthequarterwiththecombinationofflu,COVIDandRSVrunningbelowprojections.

AsDavidnotedinhiscomments,wehaveenteredadefinitiveagreementwithHCSCtosellourMedicarebusinesses.Weexpecttoclosethistransactioninearly2025followingregulatoryapprovals,andourfullyear2024outlookassumesfullyearcontributionsfromourMedicarebusinesses.Forfourthquarterspecifically,ourMedicareAdvantagebusinessgeneratedperformancebroadlyinlinewithexpectations.

AcrossCignaHealthcare,ourfullyear2023medicalcareratiowas81.3%,betterthanexpectations,benefitingfromourdisciplinedpricingexecution,continuedaffordabilityinitiativesandthefavorabilityinourStopLossproducts.ThefullyearMCRof81.3%was70basispointsbetterthanthemidpointofourinitial2023guidanceandisanimprovementof40basispointsfromfullyear2022.

MovingtoCignaHealthcaremedicalcustomers.Weended2023with19.8milliontotalmedicalcustomers,growthofapproximately1.8millionor10%fromyear-end2022,aheadofourinitialguidance.ThisgrowthwasdrivenbyU.S.Healthcare,primarilyfromU.S.CommercialEmployerfee-basedcustomers,aswellasgrowthinIndividualExchangeandMedicareAdvantage.CignaHealthcarecontinuestoperformwellwithstrongunderlyingfundamentals.OurresultsreflectthestrengthofourdifferentiatedvaluepropositionandfocusedexecutionacrossthebusinessaswellasthestabilityandconsistencyoftheU.S.CommercialEmployermarket.Overall,weIreveryproudofourstrong2023resultsinadisruptivemarketenvironment,reflectingtheintentionaldesignofthecompanyIsgrowthplatformsandourongoingdisciplinedexecution.Thisprovidesuswithconsiderablemomentumfor2024andbeyond.

Nowturningtoouroutlookforfullyear2024.Specifically,wecontinuetoexpectstrongunderlyinggrowthinEvernorthandCignaHealthcare.Weexpectfullyear2024consolidatedadjustedrevenuesofatleast$235billion,andweexpectfullyear2024consolidatedadjustedincomefromoperationstobeatleast$8.025billionoratleast$28.25pershare,anincreasefromourprioroutlook.Whenconsideringearningsseasonality,wewouldexpecttheadjustedearningspersharepatterntobesimilarto2023.

Nowturningtoour2024outlookforeachofourgrowthplatforms.InEvernorth,weexpectfullyear2024adjustedearningsofatleast$7billion.WeexpectadjustedearningswithinEvernorthtorampaswemovethroughouttheyearwithfirstquarteradjustedearningscontributingslightlybelow20%offullyearEvernorthadjustedearnings.Theearningsrampreflectstheeffectofearlyyearclient-specificonboardingspend.Theseinvestmentsaremoreconcentratedinthefirsthalfoftheyearandtaperoffoverthecourseoftheyear.

ForCignaHealthcare,weexpectfullyear2024adjustedearningsofatleast$4.75billion.AssumptionsinourCignaHealthcareoutlookfor2024includeapproximately19.3milliontotalmedicalcustomersatyear-end,andweexpectourmedicalcareratiotobeintherangeof81.7%to82.7%withthefirstquarter2024medicalcareratioexpectedtobebelowthelowendofthefullyearguidancerangetoreflecttypicalseasonalpatterns.

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Additionally,fortheenterprise,weprojectanadjustedSG&Aratioofapproximately6.1%for2024,reflectingahigherproportionofenterpriserevenuefromEvernorth,whichcarriesalowerSG&Aratio.Andweexpecttheconsolidatedadjustedtaxratetobeintherangeof20.5%to21%.

Turningtoour2023capitalmanagementpositionand2024capitaloutlook.Wefinished2023stronganddelivered$11.8billionofcashflowfromoperations.In2023,werepurchased7.8millionsharesofcommonstockforapproximately$2.3billion,andwereturned$1.5billiontoshareholdersviadividends.Additionally,ourdebt-to-capitalratiofinishedtheyearat40.1%,animprovementofapproximately100basispointsfromyear-end2022.

Nowframingour2024capitaloutlook.Weexpecttodeliveratleast$11billionofcashflowfromoperationsthroughourefficientservice-basedbusinessmodel.Weexpecttodeployapproximately$1.5billiontocapitalexpenditures,andweexpecttodeployapproximately$1.6billiontoshareholderdividends,reflectingourquarterlydividendof$1.40pershare,a14%increaseonapersharebasis.In2024,weintendtouseamajorityofourdiscretionarycashflowforsharerepurchase.Aswepreviouslyshared,weanticipatetorepurchaseatleast$5billionwithinthefirsthalfof2024.Finally,weexpectfullyearweightedaveragesharesoutstandingtobeintherangeof282millionto286millionshares.

Nowtorecap.Ourfullyear2023consolidatedresultsexceededexpectations,reflectingcontinuedfocusedexecutionanddisciplineacrossEvernorthandCignaHealthcare.Andour2024outlookreflectscontinuedstrengthandmomentumacrossour2growthplatforms,EvernorthandCignaHealthcare.Weareconfidentinourabilitytodeliverfullyear2024adjustedearningsofatleast$28.25pershare.

Andwiththat,weIllturnitovertotheoperatorfortheQ&Aportionofthecall.

QUESTIONSANDANSWERS

Operator

(OperatorInstructions)OurfirstquestioncomesfromA.J.RicewithUBS.

AlbertJ.WilliamRice-UBSInvestmentBank,ResearchDivision-Analyst

Obviously,wehavetheannouncementonyoursaleoftheMedicareAdvantagebusiness,andyetyouIresayingyoustillviewthebusinessasattractive.Obviously,thereIsbeensomevolatilityinsomeoftheperformanceofsomeoftheotherplayersinthisspacealreadyannounced.Isthisthetime,inyourmind,tosortofstepbackfromthemarketandgivesometimeforthedusttosettle?Orhowshouldweinterpretthecommentsthatyoustillthinkthatsegmentisattractive?

Andthenalsoonthat,obviously,istherearespeculation,atleastinthepress,aboutdealdiscussions.Yourstockwasquitevolatile.Iwonderifyoucouldgiveusalittlebitonhowyouapproachlargetransactions,someofthefinancialparametersthatpeopleshouldkeepinmindthatwouldbehopefullyreassuringforthem.

DavidMichaelCordani-TheCignaGroup-President,CEO&ChairoftheBoard

A.J.,itIsDavid.Youhavealotinthatquestion,andIappreciateit.Letmetrytoaddresssomeofthehighpoints.

Firstandforemost,wearereallypleasedwiththenatureofthetransactionwewereabletostructurewi