Cigna Group

For the period ended Mar 31, 2025. Filed May 2, 2025.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 2, 2025

CI$295.60+0.7%Stored close · as of Nov 9, 2026

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Segment Information

Note 17 – Segment Information

See Note 1 to the Consolidated Financial Statements for a description of our segments. A description of our basis for reporting segment operating results is outlined below. Intersegment revenues primarily reflect pharmacy and care services transactions between the Evernorth Health Services and Cigna Healthcare segments. The Chairman and Chief Executive Officer is the chief operating decision maker ("CODM") responsible for making decisions about resources to be allocated to the segment and assessing its performance.

The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management, including the CODM, believes these metrics reflect the underlying results of business operations and facilitate analysis of trends in underlying revenue, expenses and profitability to enable resource allocation decisions. We define pre-tax adjusted income (loss) from operations as income (loss) before income taxes excluding pre-tax income (loss) attributable to noncontrolling interests, net investment gains/losses, amortization of acquired intangible assets and special items. The Cigna Group's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are also excluded. Special items are matters that management, including the CODM, believes are not representative of the underlying results of operations due to their nature or size. Adjusted income (loss) from operations is measured on an after-tax basis for consolidated results and on a pre-tax basis for segment results.

The Company defines adjusted revenues as total revenues excluding the following adjustments: special items and The Cigna Group's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Special items are matters that management, including the CODM, believes are not representative of the underlying results of operations due to their nature or size. We exclude these items from this measure because management, including the CODM, believes they are not indicative of past or future underlying performance of the business.

The Company does not report total assets by segment because this is not a metric used by the CODM to allocate resources or evaluate segment performance.

The following table presents the special items charges (benefits) recorded by the Company, as well as the respective financial statement line items impacted:

	Three Months Ended March 31,
	2025		2024
(In millions)	Pre-tax	After-tax	Pre-tax	After-tax
Integration and transaction-related costs (Selling, general and administrative expenses)	$216	$164	$37	$29
Strategic optimization program (primarily Selling, general and administrative expenses)	215	163	—	—
Deferred tax expenses, net (Income taxes, less amount attributable to noncontrolling interests)	—	17	—	17
(Gain) loss on sale of businesses	(41)	(115)	19	(43)
Total impact from special items	$390	$229	$56	$3

Summarized segment financial information was as follows:

(In millions)	Evernorth Health Services	Cigna Healthcare	Other Operations	Corporate and Eliminations	Total
Three months ended March 31, 2025
Revenues from external customers	$52,002	$13,168	$94	$—	$65,264
Intersegment revenues	1,648	1,231	12	(2,891)
Net investment income	31	133	69	5	238
Total revenues	53,681	14,532	175	(2,886)	65,502
Net investment results from certain equity method investments	—	(50)	—	—	(50)
Adjusted revenues	$53,681	$14,482	$175	$(2,886)	$65,452
Pharmacy and other service costs	51,121	—
Medical costs	—	10,385
Selling, general and administrative expenses	1,024	2,812
Other segment items (1)
Interest (expense) and other	—	2
Less: Income attributable to noncontrolling interests	102	—
Pre-tax adjusted income (loss) from operations	1,434	1,287	—	(411)	2,310
Income (loss) before income taxes	$1,108	$1,364	$(20)	$(804)	$1,648
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(102)	—	—	—	(102)
Net investment (gains) losses (2)	(4)	(47)	3	—	(48)
Amortization of acquired intangible assets	415	7	—	—	422
Special items
Integration and transaction-related costs	—	—	—	216	216
Strategic optimization program	21	—	17	177	215
(Gain) on sale of businesses	(4)	(37)	—	—	(41)
Pre-tax adjusted income (loss) from operations	$1,434	$1,287	$—	$(411)	$2,310
Other segment information
Depreciation and amortization	$584	$83	$2	$5	$674

(1)Other segment items represent the difference between segment adjusted revenues less significant segment expenses and pre-tax adjusted income (loss) from operations, and they do not represent significant segment items relative to the CODM's review and oversight.

(2)Includes Net investment gains/losses as presented in our Consolidated Statements of Income, as well as the Company's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting, which are presented within Fees and other revenues in our Consolidated Statements of Income.

(In millions)	Evernorth Health Services	Cigna Healthcare	Other Operations	Corporate and Eliminations	Total
Three months ended March 31, 2024
Revenues from external customers	$44,886	$12,012	$66	$1	$56,965
Intersegment revenues	1,281	1,124	25	(2,430)
Net investment income	59	149	75	7	290
Total revenues	46,226	13,285	166	(2,422)	57,255
Net investment results from certain equity method investments	—	(8)	—	—	(8)
Adjusted revenues	$46,226	$13,277	$166	$(2,422)	$57,247
Pharmacy and other service costs	43,838	—
Medical costs	—	9,219
Selling, general and administrative expenses	951	2,720
Other segment items (1)
Interest (expense) and other	—	2
Less: income attributable to noncontrolling interests	77	—
Pre-tax adjusted income (loss) from operations	1,360	1,340	18	(409)	2,309
(Loss) income before income taxes	$(436)	$943	$18	$(446)	$79
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(77)	—	—	—	(77)
Net investment losses (2)	1,456	372	—	—	1,828
Amortization of acquired intangible assets	417	6	—	—	423
Special items
Integration and transaction-related costs	—	—	—	37	37
Loss on sale of businesses	—	19	—	—	19
Pre-tax adjusted income (loss) from operations	$1,360	$1,340	$18	$(409)	$2,309
Other segment information
Depreciation and amortization	$606	$124	$1	$10	$741

Revenue from external customers includes Pharmacy revenues, Premiums and Fees and other revenues. The following table presents these revenues by product, premium and service type:

	Three Months Ended March 31,
(In millions)	2025	2024
Products (Pharmacy revenues) (ASC 606)
Network revenues	$28,212	$24,166
Home delivery and specialty revenues	18,937	16,458
Other revenues	3,077	2,546
Total Evernorth Health Services	50,226	43,170
Other Operations	13	17
Corporate and eliminations	(1,606)	(1,151)
Total Pharmacy revenues	48,633	42,036
Insurance premiums (ASC 944)
Cigna Healthcare
U.S. Healthcare
Employer insured	4,688	4,393
Medicare Advantage	2,363	2,287
Stop loss	1,868	1,668
Individual and Family Plans	859	1,040
Other	1,872	1,258
U.S. Healthcare	11,650	10,646
International Health	978	885
Total Cigna Healthcare	12,628	11,531
Other Operations	81	48
Corporate and eliminations	27	24
Total Premiums	12,736	11,603
Services (Fees) (ASC 606) and Other revenues (1)
Evernorth Health Services	3,424	2,997
Cigna Healthcare	1,771	1,605
Other Operations	12	26
Corporate and eliminations	(1,312)	(1,302)
Total Fees and other revenues (1)	3,895	3,326
Total revenues from external customers	$65,264	$56,965

(1)Other revenues for the three months ended March 31, 2025 and 2024 were $162 million and $90 million, respectively.

Financial and performance guarantees. Evernorth Health Services may also provide certain financial and performance guarantees, including a minimum level of discounts a client may receive, generic utilization rates and various service levels. Clients may be entitled to receive compensation if we fail to meet the guarantees. Actual performance is compared to the contractual guarantee for each measure throughout the period, and the Company defers revenue for any estimated payouts within Accrued expenses and other liabilities (current). These estimates are adjusted and paid following the end of the annual guarantee period. Historically, adjustments to original estimates have not been material. This guarantee liability was $1.9 billion as of both March 31, 2025 and December 31, 2024.

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