Dive Brief:
Cigna is revamping its C-suite and consolidating oversight of its two main businesses — insurance and health services operations — under one executive, the company announced Thursday.
Brian Evanko, currently chief financial officer and the head of Cigna’s health insurance division Cigna Healthcare, will serve as Cigna’s chief operating officer, managing both Cigna Healthcare and health services division Evernorth. Ann Dennison, who was deputy CFO under Evanko, will step up as enterprise CFO. The changes are effective at the end of this month.
Meanwhile, Eric Palmer, the current CEO of Evernorth, is departing the company at the end of April, an apparent victim of the restructuring. A spokesperson for Cigna did not respond to a request for comment on the reason behind Palmer’s departure.
Dive Insight:
Cigna is in a period of transition after underperforming on Wall Street expectations in the fourth quarter. The company, which operates one of the largest insurance businesses in the country, was struck by unexpected cost growth in plans that protect self-funded employers from disastrously high medical spending.
Despite growth in Evernorth, higher medical costs drove Cigna’s income down in 2024. Overall, Cigna reported $247.1 billion in revenue last year, up 27% year over year — but $3.4 billion in net income, down 34% year over year.
To recover margins, the insurer is growing its lucrative specialty pharmacy business, shrinking its Affordable Care Act plans and selling its Medicare business entirely, exiting a program that’s been wracked by higher than expected costs for seniors. The $3.7 billion sale is expected to close in the first quarter.
“With the divestiture of the Medicare business it makes sense to have a single leader overseeing both sides of the business,” JP Morgan analyst Lisa Gill wrote in a Thursday note on Cigna’s executive transition.
Evanko was “essentially wearing two hats” as Cigna’s CFO and CEO of Cigna Healthcare, Gill said. “With Evanko now sitting atop the leadership structure with broad oversight as COO, we think he will have greater latitude to drive efficient operations across the company moving forward.”
The executive changes, which simplify Cigna’s reporting structure, will help the Connecticut-based company grow and focus on its customers, CEO David Cordani said in a statement.
Evanko, who originally joined Cigna in 1998, has served as the company’s CFO since 2021 and has run Cigna Healthcare since January 2024.
In his new role as COO, Evanko will report to Cordani — as will Dennison, who’s taking the reins as Cigna’s CFO.
Dennison joined Cigna early last year as deputy CFO, prior to which she was CFO of Nasdaq.
Meanwhile, departing executive Eric Palmer worked for Cigna for more than 25 years across a variety of finance and strategy roles before being appointed to the head of Evernorth in 2022. Last year, Cigna expanded his role to include oversight of the company’s enterprise strategy and corporate development.
Palmer was Cigna’s highest-paid executive after Cordani, according to the company’s most recent proxy filing, making more than $8.9 million in 2023.
Also on Thursday, Cigna reaffirmed its outlook for 2025. The company expects to bring in adjusted income from operations of at least $29.50 per share.
And though it’s early days, the year so far is tracking to Cigna’s expectations, Evanko told investors Wednesday during a healthcare conference managed by Barclay’s.
