Dave Windley: Hi. Thanks for squeezing me in. And I appreciate that. The premise of my question here is that your Evernorth profit guidance for 2024 looks pretty highly visible to us. So my questions underneath that are one that you had guided 23% to include a ramping contribution from biosimilar, how should we expect that to continue, should that continue to ramp in magnitude? A then the second part was the significant onboarding costs for the Centene contract in 2023. Are you fully past those? Are those completely gone? Brian, you mentioned some Evernorth onboarding maybe unrelated, but Evernorth onboarding. In your remarks, I just wanted to kind of understand the relative size of those, so those two things, please.
David Cordani: Good morning. It’s David. Let me ask Brian to give you a framing in terms of – because you have a question relative to the trajectory in the year-over-year? And then I’ll ask Brian to hand it across to Eric to give you a little bit more color of your question. The onboarding costs that, were really intense during 2023. And then some of what we’re calling onboarding costs that leads into the early part of 2000 and 2024, give you a little color of what those services look like. But I’ll ask Brian to frame the financials first.
Brian Evanko: Yes. Thanks, David. Good morning, Dave. So overall, our AOI growth in Evernorth is expected to be about 9% as implied by the $7 billion or more of income that we expect in the year. And you can think of that as having the benefit of Centene related costs, now essentially normalizing back to a point where the profitability of that relationship will be in the range of breakeven. And then on top of that, we will have income performance. That’s more in line with our traditional algorithm of 5% to 7% average annual income growth. And that reflects the benefit of all the multiyear trends that Eric talked about earlier, whether those be biosimilars, GLP-1 drugs, specialty generics, et cetera. So we certainly are seeing continued benefit from the biosimilar wave in 2024.
But as I mentioned earlier, there’s a bit of a specific and unique effect of the large amount of additional volume we’re getting with the new client relationships in 2024. So Eric, maybe you can expand on that dynamic a bit.
Eric Palmer: Great. Thanks, Brian. So with Centene, first, I would just start by actually noting how proud I am of how our team has delivered here and how we worked collaboratively across and with the Centene team. It’s really been a great effort and one that’s come together really nicely for the benefit of our now shared customers. implementation has gone really well, and the first month has been quite successful. Now consistent with what we’ve said before, and as Brian just noted, in 2023, we had meaningful implementation spending and no associated revenue generated a loss 2024. We have results that will be approximately breakeven in 2025. We expect to achieve our run rate margin for this contract, which will be lower than the overall of the business.
With respect to the year 2024 timing that Brian alluded to before, you should just think about this, there’s a lot more activity that has to happen at the beginning of a contract like this. There’s more client outreach. There’s work to get individuals into their therapies, et cetera. So there’s normal effect here of just additional work and activity that has to take place in the first part of the year, and our expenses will reflect that. So that’s a bit of that in-year shaping. But it’s all consistent with what we had shared before. The final thing I’d note is consistent with our kind of normal practice now that Centene is a live client of ours won’t be commenting going forward on specific profitability of a specific client or things along those lines, but know that the trajectory here is off to the same start we expected and consistent with what we had talked about previously.
Operator: Thank you. I will now turn the call back over to David Cordani for closing remarks.
David Cordani: Thanks. Just a couple of messages to reiterate. First and foremost, 2023 was clearly a strong year of performance across our company as we executed quite well, and it’s reinforced by more than a decade where we’ve executed consistently as we’ve evolved our company and continue to grow our business portfolio and those we serve. We have confidence that we’re going to sustain that momentum and leverage our well-balanced portfolio across our franchise and continue to deliver within our 10% to 13% long-term EPS growth range as well as pay an attractive dividend. Finally, I want to thank my coworkers around the world for their continued disciplined execution, their passion, importantly, in their caring orientation as well as dedication for those we serve.
It shows up in our results. I’m really pleased and proud of what we delivered in 2023. And importantly, I’m even more excited for our expansion of our reach and impact in 2024. As a final note for you all, we look forward to seeing many of you at our Investor Day, which is a month away. So in early March, we look forward to seeing you in New York City and our team will be excited to talk about the market expansion we see in front of us, our capabilities and our opportunity to create additional value on a go-forward basis. Have a great day. Thanks.
Operator: Ladies and gentlemen, this concludes the Cigna Group’s fourth quarter 2023 results review. Cigna Investor Relations will be available to respond to additional questions shortly. A recording of this conference will be available for 10 business days following this call. You may access the recorded conference by dialing 800-839-9317 or 203-369-3605. There is no passcode required for this replay. Thank you for participating. We will now disconnect.
