Delaware
(State or other jurisdiction of incorporation)
|
001-38769
(Commission File Number)
|
82-4991898
(IRS Employer
Identification No.)
|
● |
The U.S. Commercial operating segment serves employers (also referred to as “clients”) and their employees (also referred to as “customers”) and other groups. Products and services include medical, pharmacy, dental,
behavioral health and vision, health advocacy programs and other products and services to insured and self-insured customers. Products and services are generally integrated with a Cigna-administered health plan or can be provided on a
standalone basis.
|
● |
The Government operating segment offers Medicare Advantage, Medicare Supplement, Medicare Part D plans to seniors as well as Medicaid plans. This operating segment also offers health insurance coverage to individual
customers both on and off the public exchanges. Beginning in fourth quarter 2018, results for this segment will include the acquired Express Scripts’ Medicare Part D business.
|
● |
Group
Disability and Life provides group long-term and short-term disability, and group life, accident, voluntary and specialty insurance products and related services.
|
● |
Corporate-Owned
Life Insurance (“COLI”) offers permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for the purpose of financing employer-paid future benefit obligations.
|
● |
Run-off businesses:
|
o
|
Reinsurance
|
o
|
Settlement Annuity
|
o
|
Individual Life Insurance and Annuity and Retirement Benefits Businesses
|
o
|
Certain international run-off businesses
|
Live Call:
|
Toll Free Dial-In Number:
|
1-888-324-7575
|
Toll Dial-In Number
|
1-210-234-0013
|
|
Participant Passcode:
|
1232019
|
|
|
||
Replay: |
Toll Free Dial-In Number:
|
1-866-490-5935
|
Toll Dial-In Number
|
1-203-369-1711
|
Title
|
Page
|
Basis of Presentation
|
5
|
Financial Schedules – Consolidated results:
|
|
Years ended December 31, 2017 and 2016
|
6
|
Consolidating Statement of Income – Nine Months Ended September 30, 2018
|
7
|
Consolidating Statement of Income – Year Ended December 31, 2017
|
8
|
Financial Schedules – Segment results:
|
|
Years Ended December 31, 2017 and 2016
|
|
Integrated Medical
|
9
|
Health Services
|
10
|
International Markets
|
11
|
Group Disability and Other
|
12
|
Corporate
|
13
|
Integrated Medical
|
|
Third Quarter and Nine Months Ended September 30, 2018
|
14
|
First and Second Quarters of 2018
|
15
|
Third and Fourth Quarters of 2017
|
16
|
First and Second Quarters of 2017
|
17
|
Health Services
|
|
First Three Quarters and Nine Months Ended September 30, 2018
|
18
|
Four Quarters of 2017
|
18
|
International Markets
|
|
Third Quarter and Nine Months Ended September 30, 2018
|
19
|
First and Second Quarters of 2018
|
20
|
Third and Fourth Quarters of 2017
|
21
|
First and Second Quarters of 2017
|
22
|
Group Disability and Other
|
|
Third Quarter and Nine Months Ended September 30, 2018
|
23
|
First and Second Quarters of 2018
|
24
|
Third and Fourth Quarters of 2017
|
25
|
First and Second Quarters of 2017
|
26
|
Corporate
|
|
Third Quarter and Nine Months Ended September 30, 2018
|
27
|
First and Second Quarters of 2018
|
28
|
Third and Fourth Quarters of 2017
|
29
|
First and Second Quarters of 2017
|
30
|
Cigna Corporation
|
|||||||
Consolidated Results - Article 5
|
|||||||
Years Ended December 31, 2017 and 2016
|
|||||||
(unaudited)
|
|||||||
Consolidated
|
|||||||
Year ended
|
|||||||
(in millions)
|
December 31, 2017
|
December 31, 2016
|
|||||
Revenues
|
|||||||
Premiums
|
$
|
32,491
|
$
|
30,824
|
|||
Fees and other revenues
|
5,110
|
4,901
|
|||||
Pharmacy revenues
|
2,979
|
2,966
|
|||||
Net investment income
|
1,226
|
1,147
|
|||||
Total revenues
|
41,806
|
39,838
|
|||||
Adjusted revenues (1)
|
41,806
|
39,838
|
|||||
Benefits and expenses
|
|||||||
Medical costs and other benefit expenses
|
25,263
|
24,341
|
|||||
Pharmacy and other service costs
|
2,456
|
2,468
|
|||||
Selling, general and administrative expenses
|
9,831
|
9,460
|
|||||
Special items excluding debt extinguishment costs
|
199
|
330
|
|||||
Amortization of acquired intangible assets
|
115
|
151
|
|||||
Total operating expenses
|
37,864
|
36,750
|
|||||
Income from operations
|
3,942
|
3,088
|
|||||
Interest expense and other
|
(252)
|
(278)
|
|||||
Debt extinguishment costs
|
(321)
|
-
|
|||||
Net realized investment gains
|
237
|
169
|
|||||
Income before income taxes
|
3,606
|
2,979
|
|||||
Total income taxes
|
1,374
|
1,136
|
|||||
Net income
|
2,232
|
1,843
|
|||||
Less: income (loss) attributable to noncontrolling interests
|
(5)
|
(24)
|
|||||
Shareholders' net income
|
2,237
|
1,867
|
|||||
After-tax adjustments required to reconcile to adjusted income from operations
|
|||||||
Net realized investment (gains)
|
(156)
|
(109)
|
|||||
Amortization of acquired intangible assets
|
66
|
94
|
|||||
Special items
|
|||||||
U.S. tax reform
|
196
|
-
|
|||||
Debt extinguishment costs
|
209
|
-
|
|||||
Long-term guaranty fund assessment
|
83
|
-
|
|||||
Transaction-related costs
|
33
|
147
|
|||||
Risk corridor allowance
|
-
|
80
|
|||||
Charges associated with litigation matters
|
-
|
25
|
|||||
Adjusted income from operations
|
$
|
2,668
|
$
|
2,104
|
|||
Effective January 1, 2018, Cigna adopted amended accounting guidance for revenue recognition. Prior
year results have been restated on the new basis.
|
|||||||
(1) There are no differences between total revenues and adjusted revenues in the period presented.
|
Cigna Corporation
|
||||||||||||||||
Consolidating Statement of Income - New Segment Basis
|
||||||||||||||||
Nine Months Ended September 30, 2018
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
(in millions)
|
Integrated Medical
|
Health Services
|
International Markets
|
Group Disability and Other Operations
|
Corporate
|
Cigna Total
|
||||||||||
Revenues
|
||||||||||||||||
Premiums
|
$
|
20,054
|
$
|
-
|
$
|
3,767
|
$
|
3,194
|
$
|
(10)
|
$
|
27,005
|
||||
Fees and other revenues
|
4,092
|
-
|
108
|
83
|
(196)
|
4,087
|
||||||||||
Pharmacy revenues
|
-
|
3,288
|
-
|
-
|
(1,066)
|
2,222
|
||||||||||
Net investment income including special items
|
348
|
5
|
113
|
538
|
32
|
1,036
|
||||||||||
Total revenues
|
24,494
|
3,293
|
3,988
|
3,815
|
(1,240)
|
34,350
|
||||||||||
Net realized investment (losses) from equity method subsidiaries (1)
|
-
|
-
|
23
|
-
|
-
|
23
|
||||||||||
Special item reported in transaction-related costs (2)
|
-
|
-
|
-
|
-
|
(13)
|
(13)
|
||||||||||
Adjusted revenues
|
24,494
|
3,293
|
4,011
|
3,815
|
(1,253)
|
34,360
|
||||||||||
Benefits and expenses
|
||||||||||||||||
Medical costs and other benefit expenses
|
15,696
|
-
|
2,136
|
2,598
|
(10)
|
20,420
|
||||||||||
Pharmacy and other service costs
|
-
|
3,002
|
-
|
-
|
(1,226)
|
1,776
|
||||||||||
Selling general and administrative expenses
|
5,939
|
64
|
1,250
|
797
|
69
|
8,119
|
||||||||||
Special items excluding debt extinguishment costs
|
45
|
-
|
-
|
2
|
331
|
378
|
||||||||||
Amortization of acquired intangible assets
|
82
|
-
|
13
|
4
|
-
|
99
|
||||||||||
Total operating expenses
|
21,762
|
3,066
|
3,399
|
3,401
|
(836)
|
30,792
|
||||||||||
Income from operations
|
2,732
|
227
|
589
|
414
|
(404)
|
3,558
|
||||||||||
Interest expense and other
|
-
|
-
|
-
|
-
|
(169)
|
(169)
|
||||||||||
Net realized investment gains (losses)
|
(12)
|
-
|
(9)
|
(14)
|
(1)
|
(36)
|
||||||||||
Income before income taxes
|
$
|
2,720
|
$
|
227
|
$
|
580
|
$
|
400
|
$
|
(574)
|
3,353
|
|||||
Total income taxes
|
854
|
|||||||||||||||
Net income
|
2,499
|
|||||||||||||||
Less: Income (loss) attributable to noncontrolling interests
|
6
|
|||||||||||||||
Shareholders' net income
|
2,493
|
|||||||||||||||
After-tax adjustments required to reconcile to adjusted income from operations
|
||||||||||||||||
Net realized investment (gains) losses (1)
|
46
|
|||||||||||||||
Amortization of acquired intangible assets
|
74
|
|||||||||||||||
Special items
|
||||||||||||||||
Transaction-related costs
|
267
|
|||||||||||||||
Charges associated with litigation matters
|
35
|
|||||||||||||||
U.S. tax reform
|
(5)
|
|||||||||||||||
Adjusted income from operations
|
$
|
2,910
|
||||||||||||||
Effective January 1, 2018, Cigna adopted amended accounting guidance for revenue recognition. Prior
year results have been restated on the new basis.
|
||||||||||||||||
(1) Beginning in 2018, Cigna's share of certain realized investment results of its joint ventures
reported using the equity method in fees and other revenues is excluded from adjusted revenues and pre-tax adjusted income from operations.
|
||||||||||||||||
(2) For additional information related to net investment income included in transaction-related
costs, please refer to Note 3 to the Consolidated Financial Statements in Cigna's Form 10-Q for the period ended September 30, 2018 filed on November 1, 2018.
|
Cigna Corporation
|
|||||||||||||
Consolidating Statement of Income - New Segment Basis
|
|||||||||||||
Twelve Months Ended December 31, 2017
|
|||||||||||||
(unaudited)
|
|||||||||||||
(in millions)
|
Integrated Medical
|
Health Services
|
International Markets
|
Group Disability and Other Operations
|
Corporate
|
Cigna Total
|
|||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
23,631
|
$
|
-
|
$
|
4,619
|
$
|
4,253
|
$
|
(12)
|
$
|
32,491
|
|
Fees and other revenues
|
5,038
|
-
|
155
|
122
|
(205)
|
5,110
|
|||||||
Pharmacy revenues
|
-
|
4,238
|
-
|
-
|
(1,259)
|
2,979
|
|||||||
Net investment income
|
366
|
3
|
127
|
700
|
30
|
1,226
|
|||||||
Total revenues
|
29,035
|
4,241
|
4,901
|
5,075
|
(1,446)
|
41,806
|
|||||||
Adjusted revenues (1)
|
29,035
|
4,241
|
4,901
|
5,075
|
(1,446)
|
41,806
|
|||||||
Benefits and expenses
|
|||||||||||||
Medical costs and other benefit expenses
|
19,131
|
-
|
2,658
|
3,486
|
(12)
|
25,263
|
|||||||
Pharmacy and other service costs
|
-
|
3,870
|
-
|
-
|
(1,414)
|
2,456
|
|||||||
Selling, general and administrative expenses
|
6,983
|
83
|
1,590
|
1,072
|
103
|
9,831
|
|||||||
Special items excluding debt extinguishment costs
|
106
|
-
|
-
|
(33)
|
126
|
199
|
|||||||
Amortization of acquired intangible assets
|
93
|
-
|
17
|
5
|
-
|
115
|
|||||||
Total operating expenses
|
26,313
|
3,953
|
4,265
|
4,530
|
(1,197)
|
37,864
|
|||||||
Income from operations
|
2,722
|
288
|
636
|
545
|
(249)
|
3,942
|
|||||||
Interest expense and other
|
-
|
-
|
-
|
-
|
(252)
|
(252)
|
|||||||
Debt extinguishment costs
|
-
|
-
|
-
|
-
|
(321)
|
(321)
|
|||||||
Net realized investment gains (losses)
|
137
|
-
|
31
|
69
|
-
|
237
|
|||||||
Income before income taxes
|
$
|
2,859
|
$
|
288
|
$
|
667
|
$
|
614
|
$
|
(822)
|
3,606
|
||
Total income taxes
|
1,374
|
||||||||||||
Net income
|
2,232
|
||||||||||||
Income (loss) attributable to noncontrolling interests
|
(5)
|
||||||||||||
Shareholders' net income
|
2,237
|
||||||||||||
After-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Net realized investment (gains) losses
|
(156)
|
||||||||||||
Amortization of acquired intangible assets
|
66
|
||||||||||||
Special items
|
|||||||||||||
U.S. tax reform
|
196
|
||||||||||||
Debt extinguishment costs
|
209
|
||||||||||||
Long-term guaranty fund assessment
|
83
|
||||||||||||
Transaction-related costs
|
33
|
||||||||||||
Adjusted income from operations
|
$
|
2,668
|
|||||||||||
Effective January 1, 2018, Cigna adopted amended accounting guidance for revenue recognition. Prior
year results have been restated on the new basis.
|
|||||||||||||
(1) There are no differences between total revenues and adjusted revenues in the period presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Integrated Medical
|
|||||||||||||
Years Ended December 31, 2017 and 2016
|
|||||||||||||
(unaudited)
|
|||||||||||||
Integrated Medical, compared with
|
|||||||||||||
Amounts previously reported in Global Health Care ("GHC")
|
|||||||||||||
Year ended
|
|||||||||||||
December 31, 2017
|
December 31, 2016
|
||||||||||||
(in millions)
|
GHC as Previously Reported
|
Integrated Medical
|
GHC as Previously Reported
|
Integrated Medical
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
24,722
|
$
|
23,631
|
$
|
23,493
|
$
|
22,262
|
|||||
Fees and other revenues
|
4,965
|
5,038
|
4,764
|
4,828
|
|||||||||
Pharmacy revenues
|
2,979
|
-
|
2,966
|
-
|
|||||||||
Net investment income
|
378
|
366
|
315
|
305
|
|||||||||
Total revenues
|
33,044
|
29,035
|
31,538
|
27,395
|
|||||||||
Adjusted revenues (1)
|
33,044
|
29,035
|
31,538
|
27,395
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs
|
19,824
|
19,131
|
18,864
|
18,005
|
|||||||||
Pharmacy and other service costs
|
2,456
|
-
|
2,468
|
-
|
|||||||||
Selling, general and administrative expenses
|
7,395
|
6,983
|
7,192
|
6,800
|
|||||||||
Special items
|
106
|
106
|
164
|
164
|
|||||||||
Amortization of acquired intangible assets
|
86
|
93
|
118
|
125
|
|||||||||
Total operating expenses
|
29,867
|
26,313
|
28,806
|
25,094
|
|||||||||
Income from operations
|
3,177
|
2,722
|
2,732
|
2,301
|
|||||||||
Net realized investment gains (losses)
|
136
|
137
|
119
|
116
|
|||||||||
Income before income taxes
|
3,313
|
2,859
|
2,851
|
2,417
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Loss attributable to noncontrolling interests
|
2
|
1
|
3
|
2
|
|||||||||
Net realized investment (gains) losses
|
(136)
|
(137)
|
(119)
|
(116)
|
|||||||||
Amortization of acquired intangible assets
|
86
|
93
|
118
|
125
|
|||||||||
Special items
|
106
|
106
|
164
|
164
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
3,371
|
$
|
2,922
|
$
|
3,017
|
$
|
2,592
|
|||||
Effective January 1, 2018, Cigna adopted amended accounting guidance for revenue recognition. Prior
year results have been restated on the new basis.
|
|||||||||||||
(1) There are no revenue adjustments in the Integrated Medical segment for the periods presented.
|
Cigna Corporation
|
|||||||
Segment Results – Health Services
|
|||||||
Years Ended December 31, 2017 and 2016
|
|||||||
(unaudited)
|
|||||||
Health Services
|
|||||||
Year ended
|
|||||||
(in millions)
|
December 31, 2017
|
December 31, 2016
|
|||||
Revenues
|
|||||||
Pharmacy revenues
|
$
|
4,238
|
$
|
4,063
|
|||
Net investment income
|
3
|
3
|
|||||
Total revenues
|
4,241
|
4,066
|
|||||
Adjusted revenues (1)
|
4,241
|
4,066
|
|||||
Benefits and expenses
|
|||||||
Pharmacy and other service costs
|
3,870
|
3,722
|
|||||
Gross profit
|
371
|
344
|
|||||
Selling, general and administrative expenses
|
83
|
76
|
|||||
Income before income taxes
|
288
|
268
|
|||||
Pre-tax adjusted income from operations (1)
|
$
|
288
|
$
|
268
|
|||
(1) There are no revenue or pre-tax adjusted income from operations adjustments in the Health
Services segment for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – International Markets
|
|||||||||||||
Years Ended December 31, 2017 and 2016
|
|||||||||||||
(unaudited)
|
|||||||||||||
International Markets, compared with
|
|||||||||||||
Amounts previously reported in Global Supplemental Benefits ("GSB")
|
|||||||||||||
Year Ended
|
|||||||||||||
2017
|
2016
|
||||||||||||
(in millions)
|
GSB as Previously Reported
|
International Markets
|
GSB as Previously Reported
|
International Markets
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
3,684
|
$
|
4,619
|
$
|
3,226
|
$
|
4,273
|
|||||
Fees and other revenues
|
66
|
155
|
49
|
151
|
|||||||||
Net investment income
|
122
|
127
|
110
|
113
|
|||||||||
Total revenues
|
3,872
|
4,901
|
3,385
|
4,537
|
|||||||||
Adjusted revenues (1)
|
3,872
|
4,901
|
3,385
|
4,537
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs and other benefit expenses
|
2,033
|
2,658
|
1,784
|
2,562
|
|||||||||
Selling, general and administrative expenses
|
1,345
|
1,590
|
1,235
|
1,455
|
|||||||||
Amortization of acquired intangible assets
|
29
|
17
|
33
|
21
|
|||||||||
Total operating expenses
|
3,407
|
4,265
|
3,052
|
4,038
|
|||||||||
Income from operations
|
465
|
636
|
333
|
499
|
|||||||||
Net realized investment gains (losses)
|
32
|
31
|
(5)
|
(2)
|
|||||||||
Income before income taxes
|
497
|
667
|
328
|
497
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Loss attributable to noncontrolling interests
|
-
|
1
|
17
|
18
|
|||||||||
Net realized investment (gains) losses
|
(32)
|
(31)
|
5
|
2
|
|||||||||
Amortization of acquired intangible assets
|
29
|
17
|
33
|
21
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
494
|
$
|
654
|
$
|
383
|
$
|
538
|
|||||
(1) There are no revenue adjustments in the International Markets segment for the periods presented.
|
Cigna Corporation
|
|||||||||||||||
Segment Results – Group Disability and Other
|
|||||||||||||||
Years Ended December 31, 2017 and 2016
|
|||||||||||||||
(unaudited)
|
|||||||||||||||
Group Disability and Other, compared with
|
|||||||||||||||
Amounts previously reported in Other Operations
|
|||||||||||||||
And Group Disability and Life
|
|||||||||||||||
Year Ended
|
|||||||||||||||
2017
|
2016
|
||||||||||||||
(in millions)
|
Other Ops as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
Other Ops as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
|||||||||
Revenues
|
|||||||||||||||
Premiums
|
$
|
112
|
$
|
3,985
|
$
|
4,253
|
$
|
103
|
$
|
4,002
|
$
|
4,289
|
|||
Fees and other revenues
|
10
|
106
|
122
|
11
|
98
|
114
|
|||||||||
Net investment income
|
346
|
350
|
700
|
358
|
343
|
705
|
|||||||||
Total revenues
|
468
|
4,441
|
5,075
|
472
|
4,443
|
5,108
|
|||||||||
Adjusted revenues (2)
|
468
|
4,441
|
5,075
|
472
|
4,443
|
5,108
|
|||||||||
Benefits and expenses
|
|||||||||||||||
Benefit expenses
|
342
|
3,076
|
3,486
|
339
|
3,354
|
3,774
|
|||||||||
Selling, general and administrative expenses
|
30
|
945
|
1,072
|
30
|
919
|
1,059
|
|||||||||
Special items
|
(56)
|
23
|
(33)
|
-
|
-
|
-
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
5
|
-
|
-
|
5
|
|||||||||
Total operating expenses
|
316
|
4,044
|
4,530
|
369
|
4,273
|
4,838
|
|||||||||
Income from operations
|
152
|
397
|
545
|
103
|
170
|
270
|
|||||||||
Net realized investment gains (losses)
|
(5)
|
74
|
69
|
(5)
|
59
|
54
|
|||||||||
Income before income taxes
|
147
|
471
|
614
|
98
|
229
|
324
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||||
Net realized investment (gains) losses
|
5
|
(74)
|
(69)
|
5
|
(59)
|
(54)
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
5
|
-
|
-
|
5
|
|||||||||
Special items
|
(56)
|
23
|
(33)
|
-
|
-
|
-
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
96
|
$
|
420
|
$
|
517
|
$
|
103
|
$
|
170
|
$
|
275
|
|||
(1) Includes the results of certain international run-off businesses.
|
|||||||||||||||
(2) There are no revenue adjustments in the Group Disability and Other segment for the periods
presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Corporate
|
|||||||||||||
Years Ended December 31, 2017 and 2016
|
|||||||||||||
(unaudited)
|
|||||||||||||
Corporate (restated), compared with
|
|||||||||||||
Amounts previously reported in Corporate
|
|||||||||||||
Year Ended
|
|||||||||||||
2017
|
2016
|
||||||||||||
(in millions)
|
Corporate as Previously Reported
|
Corporate as Restated
|
Corporate as Previously Reported
|
Corporate as Restated
|
|||||||||
Revenues
|
|||||||||||||
Premiums (1)
|
$
|
(12)
|
$
|
(12)
|
$
|
-
|
$
|
-
|
|||||
Fees and other revenues (1)
|
(37)
|
(205)
|
(21)
|
(192)
|
|||||||||
Pharmacy revenue eliminations (1)
|
-
|
(1,259)
|
-
|
(1,097)
|
|||||||||
Net investment income
|
30
|
30
|
21
|
21
|
|||||||||
Total revenues
|
(19)
|
(1,446)
|
-
|
(1,268)
|
|||||||||
Adjusted revenues (2)
|
(19)
|
(1,446)
|
-
|
(1,268)
|
|||||||||
Benefits and expenses
|
|||||||||||||
Benefit expenses (1)
|
(12)
|
(12)
|
-
|
-
|
|||||||||
Pharmacy and other service cost eliminations (1)
|
-
|
(1,414)
|
-
|
(1,254)
|
|||||||||
Selling, general and administrative expenses (1)
|
125
|
103
|
111
|
70
|
|||||||||
Special items excluding debt extinguishment costs
|
126
|
126
|
166
|
166
|
|||||||||
Total operating expenses
|
239
|
(1,197)
|
277
|
(1,018)
|
|||||||||
Income from operations
|
(258)
|
(249)
|
(277)
|
(250)
|
|||||||||
Interest expense and other
|
(243)
|
(252)
|
(251)
|
(278)
|
|||||||||
Debt extinguishment costs
|
(321)
|
(321)
|
-
|
-
|
|||||||||
Net realized investment gains
|
-
|
-
|
1
|
1
|
|||||||||
Income before income taxes
|
(822)
|
(822)
|
(527)
|
(527)
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Net realized investment (gains)
|
-
|
-
|
(1)
|
(1)
|
|||||||||
Special items
|
447
|
447
|
166
|
166
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
(375)
|
$
|
(375)
|
$
|
(362)
|
$
|
(362)
|
|||||
(1) Includes amounts for elimination of intersegment revenues and expenses.
|
|||||||||||||
(2) There are no revenue adjustments in Corporate for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Integrated Medical
|
|||||||||||||
Third Quarter and Nine Months Ended September 30, 2018
|
|||||||||||||
(unaudited)
|
|||||||||||||
Integrated Medical, compared with
|
|||||||||||||
Amounts previously reported in Global Health Care ("GHC")
|
|||||||||||||
3 Months Ended Sep 30, 2018
|
9 Months Ended Sep 30, 2018
|
||||||||||||
(in millions)
|
GHC as Previously Reported
|
Integrated Medical
|
GHC as Previously Reported
|
Integrated Medical
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
6,919
|
$
|
6,693
|
$
|
20,772
|
$
|
20,054
|
|||||
Fees and other revenues
|
1,329
|
1,364
|
4,000
|
4,092
|
|||||||||
Pharmacy revenues
|
747
|
-
|
2,222
|
-
|
|||||||||
Net investment income
|
122
|
117
|
362
|
348
|
|||||||||
Total revenues
|
9,117
|
8,174
|
27,356
|
24,494
|
|||||||||
Adjusted revenues (1)
|
9,117
|
8,174
|
27,356
|
24,494
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs
|
5,360
|
5,239
|
16,098
|
15,696
|
|||||||||
Pharmacy and other service costs
|
602
|
-
|
1,776
|
-
|
|||||||||
Selling, general and administrative expenses
|
2,098
|
2,003
|
6,239
|
5,939
|
|||||||||
Special items
|
45
|
45
|
45
|
45
|
|||||||||
Amortization of acquired intangible assets
|
42
|
42
|
78
|
82
|
|||||||||
Total operating expenses
|
8,147
|
7,329
|
24,236
|
21,762
|
|||||||||
Income from operations
|
970
|
845
|
3,120
|
2,732
|
|||||||||
Net realized investment gains (losses)
|
4
|
3
|
(11)
|
(12)
|
|||||||||
Income before income taxes
|
974
|
848
|
3,109
|
2,720
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Net realized investment (gains) losses
|
(4)
|
(3)
|
11
|
12
|
|||||||||
Amortization of acquired intangible assets
|
42
|
42
|
78
|
82
|
|||||||||
Special items
|
45
|
45
|
45
|
45
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
1,057
|
$
|
932
|
$
|
3,243
|
$
|
2,859
|
|||||
(1) There are no revenue adjustments in the Integrated Medical segment for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Integrated Medical
|
|||||||||||||
First and Second Quarters of 2018
|
|||||||||||||
(unaudited)
|
|||||||||||||
Integrated Medical, compared with
|
|||||||||||||
Amounts previously reported in Global Health Care ("GHC")
|
|||||||||||||
3 Months Ended March 31, 2018
|
3 Months Ended June 30, 2018
|
||||||||||||
(in millions)
|
GHC as Previously Reported
|
Integrated Medical
|
GHC as Previously Reported
|
Integrated Medical
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
6,929
|
$
|
6,676
|
$
|
6,924
|
$
|
6,685
|
|||||
Fees and other revenues
|
1,328
|
1,363
|
1,343
|
1,365
|
|||||||||
Pharmacy revenues
|
717
|
-
|
758
|
-
|
|||||||||
Net investment income
|
115
|
111
|
125
|
120
|
|||||||||
Total revenues
|
9,089
|
8,150
|
9,150
|
8,170
|
|||||||||
Adjusted revenues (1)
|
9,089
|
8,150
|
9,150
|
8,170
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs
|
5,317
|
5,174
|
5,421
|
5,283
|
|||||||||
Pharmacy and other service costs
|
561
|
-
|
613
|
-
|
|||||||||
Selling, general and administrative expenses
|
2,060
|
1,964
|
2,081
|
1,972
|
|||||||||
Amortization of acquired intangible assets
|
19
|
22
|
17
|
18
|
|||||||||
Total operating expenses
|
7,957
|
7,160
|
8,132
|
7,273
|
|||||||||
Income from operations
|
1,132
|
990
|
1,018
|
897
|
|||||||||
Net realized investment gains (losses)
|
(20)
|
(18)
|
5
|
3
|
|||||||||
Income before income taxes
|
1,112
|
972
|
1,023
|
900
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Net realized investment (gains) losses
|
20
|
18
|
(5)
|
(3)
|
|||||||||
Amortization of acquired intangible assets
|
19
|
22
|
17
|
18
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
1,151
|
$
|
1,012
|
$
|
1,035
|
$
|
915
|
|||||
(1) There are no revenue adjustments in the Integrated Medical segment for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Integrated Medical
|
|||||||||||||
Third and Fourth Quarters of 2017
|
|||||||||||||
(unaudited)
|
|||||||||||||
Integrated Medical, compared with
|
|||||||||||||
Amounts previously reported in Global Health Care ("GHC")
|
|||||||||||||
3 Months Ended Sep 30, 2017
|
3 Months Ended Dec 31, 2017
|
||||||||||||
(in millions)
|
GHC as Previously Reported (1)
|
Integrated Medical
|
GHC as Previously Reported (1)
|
Integrated Medical
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
6,131
|
$
|
5,864
|
$
|
6,204
|
$
|
5,941
|
|||||
Fees and other revenues
|
1,223
|
1,242
|
1,301
|
1,323
|
|||||||||
Pharmacy revenues
|
733
|
-
|
779
|
-
|
|||||||||
Net investment income
|
89
|
86
|
105
|
102
|
|||||||||
Total revenues
|
8,176
|
7,192
|
8,389
|
7,366
|
|||||||||
Adjusted revenues (2)
|
8,176
|
7,192
|
8,389
|
7,366
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs
|
4,845
|
4,674
|
5,140
|
4,962
|
|||||||||
Pharmacy and other service costs
|
612
|
-
|
637
|
-
|
|||||||||
Selling, general and administrative expenses
|
1,842
|
1,740
|
1,993
|
1,884
|
|||||||||
Amortization of acquired intangible assets
|
21
|
22
|
21
|
22
|
|||||||||
Total operating expenses
|
7,320
|
6,436
|
7,791
|
6,868
|
|||||||||
Income from operations
|
856
|
756
|
598
|
498
|
|||||||||
Net realized investment gains
|
75
|
74
|
3
|
5
|
|||||||||
Income before income taxes
|
931
|
830
|
601
|
503
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Net realized investment (gains)
|
(75)
|
(74)
|
(3)
|
(5)
|
|||||||||
Amortization of acquired intangible assets
|
21
|
22
|
21
|
22
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
877
|
$
|
778
|
$
|
619
|
$
|
520
|
|||||
(1) Effective January 1, 2018, Cigna adopted amended accounting guidance for revenue recognition.
Prior year results have been restated on the new basis.
|
|||||||||||||
(2) There are no revenue adjustments in the Integrated Medical segment for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Integrated Medical
|
|||||||||||||
First and Second Quarters of 2017
|
|||||||||||||
(unaudited)
|
|||||||||||||
Integrated Medical, compared with
|
|||||||||||||
Amounts previously reported in Global Health Care ("GHC")
|
|||||||||||||
3 Months Ended March 31, 2017
|
3 Months Ended June 30, 2017
|
||||||||||||
(in millions)
|
GHC as Previously Reported (1)
|
Integrated Medical
|
GHC as Previously Reported (1)
|
Integrated Medical
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
6,259
|
$
|
5,974
|
$
|
6,128
|
$
|
5,852
|
|||||
Fees and other revenues
|
1,226
|
1,238
|
1,215
|
1,235
|
|||||||||
Pharmacy revenues
|
710
|
-
|
757
|
-
|
|||||||||
Net investment income
|
92
|
89
|
92
|
89
|
|||||||||
Total revenues
|
8,287
|
7,301
|
8,192
|
7,176
|
|||||||||
Adjusted revenues (2)
|
8,287
|
7,301
|
8,192
|
7,176
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs
|
4,949
|
4,789
|
4,890
|
4,706
|
|||||||||
Pharmacy and other service costs
|
581
|
-
|
626
|
-
|
|||||||||
Selling, general and administrative expenses
|
1,807
|
1,707
|
1,753
|
1,652
|
|||||||||
Special items
|
106
|
106
|
-
|
-
|
|||||||||
Amortization of acquired intangible assets
|
23
|
26
|
21
|
23
|
|||||||||
Total operating expenses
|
7,466
|
6,628
|
7,290
|
6,381
|
|||||||||
Income from operations
|
821
|
673
|
902
|
795
|
|||||||||
Net realized investment gains
|
26
|
26
|
32
|
32
|
|||||||||
Income before income taxes
|
847
|
699
|
934
|
827
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
(Income) loss attributable to noncontrolling interests
|
1
|
1
|
1
|
-
|
|||||||||
Net realized investment (gains)
|
(26)
|
(26)
|
(32)
|
(32)
|
|||||||||
Amortization of acquired intangible assets
|
23
|
26
|
21
|
23
|
|||||||||
Special items
|
106
|
106
|
-
|
-
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
951
|
$
|
806
|
$
|
924
|
$
|
818
|
|||||
(1) Effective January 1, 2018, Cigna adopted amended accounting guidance for revenue recognition.
Prior year results have been restated on the new basis.
|
|||||||||||||
(2) There are no revenue adjustments in the Integrated Medical segment for the periods presented.
|
Cigna Corporation
|
||||||||||||
Segment Results – Health Services
|
||||||||||||
First Three Quarters and Nine Months Ended September 30, 2018
|
||||||||||||
(unaudited)
|
||||||||||||
Health Services
|
||||||||||||
3 Months Ended
|
9 Months Ended
|
|||||||||||
(in millions)
|
March 31, 2018
|
June 30, 2018
|
Sep 30, 2018
|
Sep 30, 2018
|
||||||||
Revenues
|
||||||||||||
Pharmacy revenues
|
$
|
1,070
|
$
|
1,111
|
$
|
1,107
|
$
|
3,288
|
||||
Net investment income
|
1
|
2
|
2
|
5
|
||||||||
Total revenues
|
1,071
|
1,113
|
1,109
|
3,293
|
||||||||
Adjusted revenues (1)
|
1,071
|
1,113
|
1,109
|
3,293
|
||||||||
Benefits and expenses
|
||||||||||||
Pharmacy and other service costs
|
968
|
1,015
|
1,019
|
3,002
|
||||||||
Gross profit
|
103
|
98
|
90
|
291
|
||||||||
Selling, general and administrative expenses
|
20
|
21
|
23
|
64
|
||||||||
Income before income taxes
|
83
|
77
|
67
|
227
|
||||||||
Pre-tax adjusted income from operations (1)
|
$
|
83
|
$
|
77
|
$
|
67
|
$
|
227
|
||||
Cigna Corporation
|
||||||||||||
Segment Results – Health Services
|
||||||||||||
Four Quarters of 2017
|
||||||||||||
(unaudited)
|
||||||||||||
Health Services
|
||||||||||||
3 Months Ended
|
||||||||||||
(in millions)
|
March 31, 2017
|
June 30, 2017
|
Sep 30, 2017
|
Dec 31, 2017
|
||||||||
Revenues
|
||||||||||||
Pharmacy revenues
|
$
|
997
|
$
|
1,077
|
$
|
1,045
|
$
|
1,119
|
||||
Net investment income
|
1
|
-
|
1
|
1
|
||||||||
Total revenues
|
998
|
1,077
|
1,046
|
1,120
|
||||||||
Adjusted revenues (1)
|
998
|
1,077
|
1,046
|
1,120
|
||||||||
Benefits and expenses
|
||||||||||||
Pharmacy and other service costs
|
903
|
983
|
963
|
1,021
|
||||||||
Gross profit
|
95
|
94
|
83
|
99
|
||||||||
Selling, general and administrative expenses
|
21
|
19
|
20
|
23
|
||||||||
Income before income taxes
|
74
|
75
|
63
|
76
|
||||||||
Pre-tax adjusted income from operations (1)
|
$
|
74
|
$
|
75
|
$
|
63
|
$
|
76
|
||||
(1) There are no revenue or pre-tax adjusted income from operations adjustments in the Health
Services segment for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – International Markets
|
|||||||||||||
Third Quarter and Nine Months Ended September 30, 2018
|
|||||||||||||
(unaudited)
|
|||||||||||||
International Markets, compared with
|
|||||||||||||
Amounts previously reported in Global Supplemental Benefits ("GSB")
|
|||||||||||||
3 Months Ended September 30, 2018
|
9 Months Ended September 30, 2018
|
||||||||||||
(in millions)
|
GSB as Previously Reported
|
International Markets
|
GSB as Previously Reported
|
International Markets
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
1,039
|
$
|
1,245
|
$
|
3,136
|
$
|
3,767
|
|||||
Fees and other revenues
|
16
|
40
|
35
|
108
|
|||||||||
Net investment income
|
37
|
40
|
107
|
113
|
|||||||||
Total revenues
|
1,092
|
1,325
|
3,278
|
3,988
|
|||||||||
Net realized investment losses from equity method subsidiaries (1)
|
1
|
1
|
23
|
23
|
|||||||||
Adjusted revenues
|
1,093
|
1,326
|
3,301
|
4,011
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs and other benefit expenses
|
598
|
711
|
1,770
|
2,136
|
|||||||||
Selling, general and administrative expenses
|
357
|
417
|
1,056
|
1,250
|
|||||||||
Amortization of acquired intangible assets
|
6
|
5
|
21
|
13
|
|||||||||
Total operating expenses
|
961
|
1,133
|
2,847
|
3,399
|
|||||||||
Income from operations
|
131
|
192
|
431
|
589
|
|||||||||
Net realized investment gains (losses)
|
1
|
2
|
(10)
|
(9)
|
|||||||||
Income before income taxes
|
132
|
194
|
421
|
580
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
(Income) attributable to noncontrolling interests
|
(3)
|
(3)
|
(10)
|
(10)
|
|||||||||
Net realized investment (gains) losses (1)
|
-
|
(1)
|
33
|
32
|
|||||||||
Amortization of acquired intangible assets
|
6
|
5
|
21
|
13
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
135
|
$
|
195
|
$
|
465
|
$
|
615
|
|||||
(1) Beginning in 2018, Cigna's share of certain realized investment results of its joint ventures
reported using the equity method in fees and other revenues is excluded from adjusted revenues and pre-tax adjusted income from operations.
|
Cigna Corporation
|
|||||||||||||
Segment Results – International Markets
|
|||||||||||||
First and Second Quarters of 2018
|
|||||||||||||
(unaudited)
|
|||||||||||||
International Markets, compared with
|
|||||||||||||
Amounts previously reported in Global Supplemental Benefits ("GSB")
|
|||||||||||||
3 Months Ended March 31, 2018
|
3 Months Ended June 30, 2018
|
||||||||||||
(in millions)
|
GSB as Previously Reported
|
International Markets
|
GSB as Previously Reported
|
International Markets
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
1,044
|
$
|
1,260
|
$
|
1,053
|
$
|
1,262
|
|||||
Fees and other revenues
|
22
|
42
|
(3)
|
26
|
|||||||||
Net investment income
|
34
|
37
|
36
|
36
|
|||||||||
Total revenues
|
1,100
|
1,339
|
1,086
|
1,324
|
|||||||||
Net realized investment losses from equity method subsidiaries (1)
|
2
|
2
|
20
|
20
|
|||||||||
Adjusted revenues
|
1,102
|
1,341
|
1,106
|
1,344
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs and other benefit expenses
|
587
|
710
|
585
|
715
|
|||||||||
Selling, general and administrative expenses
|
349
|
410
|
350
|
423
|
|||||||||
Amortization of acquired intangible assets
|
8
|
4
|
7
|
4
|
|||||||||
Total operating expenses
|
944
|
1,124
|
942
|
1,142
|
|||||||||
Income from operations
|
156
|
215
|
144
|
182
|
|||||||||
Net realized investment (losses)
|
-
|
(2)
|
(11)
|
(9)
|
|||||||||
Income before income taxes
|
156
|
213
|
133
|
173
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
(Income) attributable to noncontrolling interests
|
(4)
|
(4)
|
(3)
|
(3)
|
|||||||||
Net realized investment losses (1)
|
2
|
4
|
31
|
29
|
|||||||||
Amortization of acquired intangible assets
|
8
|
4
|
7
|
4
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
162
|
$
|
217
|
$
|
168
|
$
|
203
|
|||||
(1) Beginning in 2018, Cigna's share of certain realized investment results of its joint ventures
reported using the equity method in fees and other revenues is excluded from adjusted revenues and pre-tax adjusted income from operations.
|
Cigna Corporation
|
|||||||||||||
Segment Results – International Markets
|
|||||||||||||
Third and Fourth Quarters of 2017
|
|||||||||||||
(unaudited)
|
|||||||||||||
International Markets, compared with
|
|||||||||||||
Amounts previously reported in Global Supplemental Benefits ("GSB")
|
|||||||||||||
3 Months Ended September 30, 2017
|
3 Months Ended December 31, 2017
|
||||||||||||
(in millions)
|
GSB as Previously Reported
|
International Markets
|
GSB as Previously Reported
|
International Markets
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
931
|
$
|
1,158
|
$
|
982
|
$
|
1,205
|
|||||
Fees and other revenues
|
23
|
45
|
9
|
31
|
|||||||||
Net investment income
|
31
|
33
|
32
|
32
|
|||||||||
Total revenues
|
985
|
1,236
|
1,023
|
1,268
|
|||||||||
Adjusted revenues (1)
|
985
|
1,236
|
1,023
|
1,268
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical costs and other benefit expenses
|
506
|
660
|
530
|
693
|
|||||||||
Selling, general and administrative expenses
|
331
|
392
|
376
|
435
|
|||||||||
Amortization of acquired intangible assets
|
7
|
4
|
6
|
4
|
|||||||||
Total operating expenses
|
844
|
1,056
|
912
|
1,132
|
|||||||||
Income from operations
|
141
|
180
|
111
|
136
|
|||||||||
Net realized investment gains
|
-
|
1
|
20
|
18
|
|||||||||
Income before income taxes
|
141
|
181
|
131
|
154
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
(Income) attributable to noncontrolling interests
|
(4)
|
(4)
|
(1)
|
(1)
|
|||||||||
Net realized investment (gains)
|
-
|
(1)
|
(20)
|
(18)
|
|||||||||
Amortization of acquired intangible assets
|
7
|
4
|
6
|
4
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
144
|
$
|
180
|
$
|
116
|
$
|
139
|
|||||
(1) There are no revenue adjustments in the International Markets segment for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – International Markets
|
|||||||||||||
First and Second Quarters of 2017
|
|||||||||||||
(unaudited)
|
|||||||||||||
International Markets, compared with
|
|||||||||||||
Amounts previously reported in Global Supplemental Benefits ("GSB")
|
|||||||||||||
3 Months Ended March 31, 2017
|
3 Months Ended June 30, 2017
|
||||||||||||
(in millions)
|
GSB as Previously Reported
|
International Markets
|
GSB as Previously Reported
|
International Markets
|
|||||||||
Revenues
|
|||||||||||||
Premiums
|
$
|
864
|
$
|
1,112
|
$
|
907
|
$
|
1,144
|
|||||
Fees and other revenues
|
17
|
42
|
17
|
37
|
|||||||||
Net investment income
|
28
|
30
|
31
|
32
|
|||||||||
Total revenues
|
909
|
1,184
|
955
|
1,213
|
|||||||||
Adjusted revenues (1)
|
909
|
1,184
|
955
|
1,213
|
|||||||||
Benefits and expenses
|
|||||||||||||
Medical expenses and other benefit costs
|
505
|
649
|
492
|
656
|
|||||||||
Selling, general and administrative expenses
|
312
|
374
|
326
|
389
|
|||||||||
Amortization of acquired intangible assets
|
9
|
5
|
7
|
4
|
|||||||||
Total operating expenses
|
826
|
1,028
|
825
|
1,049
|
|||||||||
Income from operations
|
83
|
156
|
130
|
164
|
|||||||||
Net realized investment gains (losses)
|
13
|
13
|
(1)
|
(1)
|
|||||||||
Income before income taxes
|
96
|
169
|
129
|
163
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Loss attributable to noncontrolling interests
|
4
|
4
|
1
|
2
|
|||||||||
Net realized investment (gains) losses
|
(13)
|
(13)
|
1
|
1
|
|||||||||
Amortization of acquired intangible assets
|
9
|
5
|
7
|
4
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
96
|
$
|
165
|
$
|
138
|
$
|
170
|
|||||
(1) There are no revenue adjustments in the International Markets segment for the periods presented.
|
Cigna Corporation
|
|||||||||||||||
Segment Results – Group Disability and Other
|
|||||||||||||||
Third Quarter and Nine Months Ended September 30, 2018
|
|||||||||||||||
(unaudited)
|
|||||||||||||||
Group Disability and Other, compared with
|
|||||||||||||||
Amounts previously reported in Other Operations
|
|||||||||||||||
And Group Disability and Life
|
|||||||||||||||
3 Months Ended September 30, 2018
|
9 Months Ended September 30, 2018
|
||||||||||||||
(in millions)
|
Other Operations as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
Other Operations as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
|||||||||
Revenues
|
|||||||||||||||
Premiums
|
$
|
33
|
$
|
1,007
|
$
|
1,060
|
$
|
92
|
$
|
3,015
|
$
|
3,194
|
|||
Fees and other revenues
|
-
|
25
|
26
|
5
|
74
|
83
|
|||||||||
Net investment income
|
87
|
89
|
176
|
260
|
275
|
538
|
|||||||||
Total revenues
|
120
|
1,121
|
1,262
|
357
|
3,364
|
3,815
|
|||||||||
Adjusted revenues (2)
|
120
|
1,121
|
1,262
|
357
|
3,364
|
3,815
|
|||||||||
Benefits and expenses
|
|||||||||||||||
Benefit expenses
|
95
|
754
|
857
|
263
|
2,299
|
2,598
|
|||||||||
Selling, general and administrative expenses
|
6
|
241
|
262
|
19
|
727
|
797
|
|||||||||
Special items
|
2
|
-
|
2
|
2
|
-
|
2
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
1
|
-
|
-
|
4
|
|||||||||
Total operating expenses
|
103
|
995
|
1,122
|
284
|
3,026
|
3,401
|
|||||||||
Income from operations
|
17
|
126
|
140
|
73
|
338
|
414
|
|||||||||
Net realized investment gains (losses)
|
(8)
|
3
|
(5)
|
(6)
|
(8)
|
(14)
|
|||||||||
Income before income taxes
|
9
|
129
|
135
|
67
|
330
|
400
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||||
Net realized investment (gains) losses
|
8
|
(3)
|
5
|
6
|
8
|
14
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
1
|
-
|
-
|
4
|
|||||||||
Special items
|
2
|
-
|
2
|
2
|
-
|
2
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
19
|
$
|
126
|
$
|
143
|
$
|
75
|
$
|
338
|
$
|
420
|
|||
(1) Includes the results of certain international run-off businesses.
|
|||||||||||||||
(2) There are no revenue adjustments in the Group Disability and Other segment for the periods
presented.
|
Cigna Corporation
|
|||||||||||||||
Segment Results – Group Disability and Other
|
|||||||||||||||
First and Second Quarters of 2018
|
|||||||||||||||
(unaudited)
|
|||||||||||||||
Group Disability and Other, compared with
|
|||||||||||||||
Amounts previously reported in Other Operations
|
|||||||||||||||
And Group Disability and Life
|
|||||||||||||||
3 Months Ended March 31, 2018
|
3 Months Ended June 30, 2018
|
||||||||||||||
(in millions)
|
Other Operations as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
Other Operations as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
|||||||||
Revenues
|
|||||||||||||||
Premiums
|
$
|
29
|
$
|
1,000
|
$
|
1,066
|
$
|
30
|
$
|
1,008
|
$
|
1,068
|
|||
Fees and other revenues
|
2
|
26
|
30
|
3
|
23
|
27
|
|||||||||
Net investment income
|
85
|
90
|
175
|
88
|
96
|
187
|
|||||||||
Total revenues
|
116
|
1,116
|
1,271
|
121
|
1,127
|
1,282
|
|||||||||
Adjusted revenues (2)
|
116
|
1,116
|
1,271
|
121
|
1,127
|
1,282
|
|||||||||
Benefits and expenses
|
|||||||||||||||
Benefit expenses
|
80
|
791
|
891
|
88
|
754
|
850
|
|||||||||
Selling, general and administrative expenses
|
5
|
241
|
264
|
8
|
245
|
271
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
1
|
-
|
-
|
2
|
|||||||||
Total operating expenses
|
85
|
1,032
|
1,156
|
96
|
999
|
1,123
|
|||||||||
Income from operations
|
31
|
84
|
115
|
25
|
128
|
159
|
|||||||||
Net realized investment gains (losses)
|
4
|
(16)
|
(12)
|
(2)
|
5
|
3
|
|||||||||
Income before income taxes
|
35
|
68
|
103
|
23
|
133
|
162
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||||
Net realized investment (gains) losses
|
(4)
|
16
|
12
|
2
|
(5)
|
(3)
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
1
|
-
|
-
|
2
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
31
|
$
|
84
|
$
|
116
|
$
|
25
|
$
|
128
|
$
|
161
|
|||
(1) Includes the results of certain international run-off businesses.
|
|||||||||||||||
(2) There are no revenue adjustments in the Group Disability and Other segment for the periods
presented.
|
Cigna Corporation
|
|||||||||||||||
Segment Results – Group Disability and Other
|
|||||||||||||||
Third and Fourth Quarters of 2017
|
|||||||||||||||
(unaudited)
|
|||||||||||||||
Group Disability and Other, compared with
|
|||||||||||||||
Amounts previously reported in Other Operations
|
|||||||||||||||
And Group Disability and Life
|
|||||||||||||||
3 Months Ended September 30, 2017
|
3 Months Ended December 31, 2017
|
||||||||||||||
(in millions)
|
Other Operations as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
Other Operations as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
|||||||||
Revenues
|
|||||||||||||||
Premiums
|
$
|
26
|
$
|
990
|
$
|
1,056
|
$
|
31
|
$
|
994
|
$
|
1,065
|
|||
Fees and other revenues
|
3
|
25
|
29
|
2
|
27
|
32
|
|||||||||
Net investment income
|
86
|
84
|
170
|
86
|
88
|
176
|
|||||||||
Total revenues
|
115
|
1,099
|
1,255
|
119
|
1,109
|
1,273
|
|||||||||
Adjusted revenues (2)
|
115
|
1,099
|
1,255
|
119
|
1,109
|
1,273
|
|||||||||
Benefits and expenses
|
|||||||||||||||
Benefit expenses
|
84
|
755
|
856
|
93
|
775
|
883
|
|||||||||
Selling, general and administrative expenses
|
9
|
236
|
269
|
8
|
245
|
283
|
|||||||||
Special items
|
-
|
-
|
-
|
(56)
|
-
|
(56)
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
2
|
-
|
-
|
1
|
|||||||||
Total operating expenses
|
93
|
991
|
1,127
|
45
|
1,020
|
1,111
|
|||||||||
Income from operations
|
22
|
108
|
128
|
74
|
89
|
162
|
|||||||||
Net realized investment gains (losses)
|
5
|
37
|
42
|
(7)
|
7
|
-
|
|||||||||
Income before income taxes
|
27
|
145
|
170
|
67
|
96
|
162
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||||
Net realized investment (gains) losses
|
(5)
|
(37)
|
(42)
|
7
|
(7)
|
-
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
2
|
-
|
-
|
1
|
|||||||||
Special items
|
-
|
-
|
-
|
(56)
|
-
|
(56)
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
22
|
$
|
108
|
$
|
130
|
$
|
18
|
$
|
89
|
$
|
107
|
|||
(1) Includes the results of certain international run-off businesses.
|
|||||||||||||||
(2) There are no revenue adjustments in the Group Disability and Other segment for the periods
presented.
|
Cigna Corporation
|
|||||||||||||||
Segment Results – Group Disability and Other
|
|||||||||||||||
First and Second Quarters of 2017
|
|||||||||||||||
(unaudited)
|
|||||||||||||||
Group Disability and Other, compared with
|
|||||||||||||||
Amounts previously reported in Other Operations
|
|||||||||||||||
And Group Disability and Life
|
|||||||||||||||
3 Months Ended March 31, 2017
|
3 Months Ended June 30, 2017
|
||||||||||||||
(in millions)
|
Other Operations as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
Other Operations as Previously Reported
|
Group Disability and Life as Previously Reported
|
Group Disability and Other (1)
|
|||||||||
Revenues
|
|||||||||||||||
Premiums
|
$
|
27
|
$
|
1,004
|
$
|
1,068
|
$
|
28
|
$
|
997
|
$
|
1,064
|
|||
Fees and other revenues
|
3
|
28
|
32
|
2
|
26
|
29
|
|||||||||
Net investment income
|
86
|
89
|
175
|
88
|
89
|
179
|
|||||||||
Total revenues
|
116
|
1,121
|
1,275
|
118
|
1,112
|
1,272
|
|||||||||
Adjusted revenues (2)
|
116
|
1,121
|
1,275
|
118
|
1,112
|
1,272
|
|||||||||
Benefits and expenses
|
|||||||||||||||
Benefit expenses
|
80
|
785
|
881
|
85
|
761
|
866
|
|||||||||
Selling, general and administrative expenses
|
7
|
234
|
261
|
6
|
230
|
259
|
|||||||||
Special items
|
-
|
23
|
23
|
-
|
-
|
-
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
1
|
-
|
-
|
1
|
|||||||||
Total operating expenses
|
87
|
1,042
|
1,166
|
91
|
991
|
1,126
|
|||||||||
Income from operations
|
29
|
79
|
109
|
27
|
121
|
146
|
|||||||||
Net realized investment gains (losses)
|
(1)
|
8
|
7
|
(2)
|
22
|
20
|
|||||||||
Income before income taxes
|
28
|
87
|
116
|
25
|
143
|
166
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||||
Net realized investment (gains) losses
|
1
|
(8)
|
(7)
|
2
|
(22)
|
(20)
|
|||||||||
Amortization of acquired intangible assets
|
-
|
-
|
1
|
-
|
-
|
1
|
|||||||||
Special items
|
-
|
23
|
23
|
-
|
-
|
-
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
29
|
$
|
102
|
$
|
133
|
$
|
27
|
$
|
121
|
$
|
147
|
|||
(1) Includes the results of certain international run-off businesses.
|
|||||||||||||||
(2) There are no revenue adjustments in the Group Disability and Other segment for the periods
presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Corporate
|
|||||||||||||
Third Quarter and Nine Months Ended September 30, 2018
|
|||||||||||||
(unaudited)
|
|||||||||||||
Corporate (restated), compared with
|
|||||||||||||
Amounts previously reported in Corporate
|
|||||||||||||
3 Months Ended Sep. 30, 2018
|
9 Months Ended Sep. 30, 2018
|
||||||||||||
(in millions)
|
Corporate as Previously Reported
|
Corporate as Restated
|
Corporate as Previously Reported
|
Corporate as Restated
|
|||||||||
Revenues
|
|||||||||||||
Premiums (1)
|
$
|
(4)
|
$
|
(4)
|
$
|
(10)
|
$
|
(10)
|
|||||
Fees and other revenues (1)
|
(9)
|
(69)
|
(27)
|
(196)
|
|||||||||
Pharmacy revenue eliminations (1)
|
-
|
(360)
|
-
|
(1,066)
|
|||||||||
Net investment income including special items (1)
|
20
|
20
|
32
|
32
|
|||||||||
Total revenues
|
7
|
(413)
|
(5)
|
(1,240)
|
|||||||||
Special items reported in transaction-related costs
|
(13)
|
(13)
|
(13)
|
(13)
|
|||||||||
Adjusted revenues
|
(6)
|
(426)
|
(18)
|
(1,253)
|
|||||||||
Benefits and expenses
|
|||||||||||||
Benefit expenses (1)
|
(4)
|
(4)
|
(10)
|
(10)
|
|||||||||
Pharmacy and other service cost eliminations (1)
|
-
|
(417)
|
-
|
(1,226)
|
|||||||||
Selling, general and administrative expenses (1)
|
24
|
22
|
72
|
69
|
|||||||||
Special items
|
141
|
141
|
331
|
331
|
|||||||||
Total operating expenses
|
161
|
(258)
|
393
|
(836)
|
|||||||||
Income from operations
|
(154)
|
(155)
|
(398)
|
(404)
|
|||||||||
Interest expense and other
|
(57)
|
(56)
|
(175)
|
(169)
|
|||||||||
Net realized investment (losses)
|
-
|
-
|
(1)
|
(1)
|
|||||||||
Income before income taxes
|
(211)
|
(211)
|
(574)
|
(574)
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Net realized investment losses
|
-
|
-
|
1
|
1
|
|||||||||
Special items
|
128
|
128
|
318
|
318
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
(83)
|
$
|
(83)
|
$
|
(255)
|
$
|
(255)
|
|||||
(1) Includes amounts for elimination of intersegment revenues and expenses.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Corporate
|
|||||||||||||
First and Second Quarters of 2018
|
|||||||||||||
(unaudited)
|
|||||||||||||
Corporate (restated), compared with
|
|||||||||||||
Amounts previously reported in Corporate
|
|||||||||||||
3 Months Ended March 31, 2018
|
3 Months Ended June 30, 2018
|
||||||||||||
(in millions)
|
Corporate as Previously Reported
|
Corporate as Restated
|
Corporate as Previously Reported
|
Corporate as Restated
|
|||||||||
Revenues
|
|||||||||||||
Premiums (1)
|
$
|
(3)
|
$
|
(3)
|
$
|
(3)
|
$
|
(3)
|
|||||
Fees and other revenues (1)
|
(10)
|
(67)
|
(8)
|
(60)
|
|||||||||
Pharmacy revenue eliminations (1)
|
-
|
(353)
|
-
|
(353)
|
|||||||||
Net investment income (1)
|
5
|
5
|
7
|
7
|
|||||||||
Total revenues
|
(8)
|
(418)
|
(4)
|
(409)
|
|||||||||
Adjusted revenues (2)
|
(8)
|
(418)
|
(4)
|
(409)
|
|||||||||
Benefits and expenses
|
|||||||||||||
Benefit expenses (1)
|
(3)
|
(3)
|
(3)
|
(3)
|
|||||||||
Pharmacy and other service cost eliminations (1)
|
-
|
(407)
|
-
|
(402)
|
|||||||||
Selling, general and administrative expenses (1)
|
28
|
27
|
20
|
20
|
|||||||||
Special items
|
60
|
60
|
130
|
130
|
|||||||||
Total operating expenses
|
85
|
(323)
|
147
|
(255)
|
|||||||||
Income from operations
|
(93)
|
(95)
|
(151)
|
(154)
|
|||||||||
Interest expense and other
|
(59)
|
(57)
|
(59)
|
(56)
|
|||||||||
Net realized investment (losses)
|
(1)
|
(1)
|
-
|
-
|
|||||||||
Income before income taxes
|
(153)
|
(153)
|
(210)
|
(210)
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Net realized investment losses
|
1
|
1
|
-
|
-
|
|||||||||
Special items
|
60
|
60
|
130
|
130
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
(92)
|
$
|
(92)
|
$
|
(80)
|
$
|
(80)
|
|||||
(1) Includes amounts for elimination of intersegment revenues and expenses.
|
|||||||||||||
(2) There are no revenue adjustments in Corporate for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Corporate
|
|||||||||||||
Third Quarter and Fourth Quarters of 2017
|
|||||||||||||
(unaudited)
|
|||||||||||||
Corporate (restated), compared with
|
|||||||||||||
Amounts previously reported in Corporate
|
|||||||||||||
3 Months Ended Sep. 30, 2017
|
3 Months Ended Dec. 31, 2017
|
||||||||||||
(in millions)
|
Corporate as Previously Reported
|
Corporate as Restated
|
Corporate as Previously Reported
|
Corporate as Restated
|
|||||||||
Revenues
|
|||||||||||||
Premiums (1)
|
$
|
(3)
|
$
|
(3)
|
$
|
(3)
|
$
|
(3)
|
|||||
Fees and other revenues (1)
|
(8)
|
(50)
|
(11)
|
(58)
|
|||||||||
Pharmacy revenue eliminations (1)
|
-
|
(312)
|
-
|
(340)
|
|||||||||
Net investment income (1)
|
8
|
8
|
6
|
6
|
|||||||||
Total revenues
|
(3)
|
(357)
|
(8)
|
(395)
|
|||||||||
Adjusted revenues (2)
|
(3)
|
(357)
|
(8)
|
(395)
|
|||||||||
Benefits and expenses
|
|||||||||||||
Benefit expenses (1)
|
(3)
|
(3)
|
(3)
|
(3)
|
|||||||||
Pharmacy and other service cost eliminations (1)
|
-
|
(351)
|
-
|
(384)
|
|||||||||
Selling, general and administrative expenses (1)
|
29
|
27
|
34
|
29
|
|||||||||
Special items excluding debt extinguishment costs
|
9
|
9
|
38
|
38
|
|||||||||
Total operating expenses
|
35
|
(318)
|
69
|
(320)
|
|||||||||
Income from operations
|
(38)
|
(39)
|
(77)
|
(75)
|
|||||||||
Interest expense and other
|
(61)
|
(60)
|
(60)
|
(62)
|
|||||||||
Debt extinguishment costs
|
(321)
|
(321)
|
-
|
-
|
|||||||||
Income before income taxes
|
(420)
|
(420)
|
(137)
|
(137)
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Special items including debt extinguishment costs
|
330
|
330
|
38
|
38
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
(90)
|
$
|
(90)
|
$
|
(99)
|
$
|
(99)
|
|||||
(1) Includes amounts for elimination of intersegment revenues and expenses.
|
|||||||||||||
(2) There are no revenue adjustments in Corporate for the periods presented.
|
Cigna Corporation
|
|||||||||||||
Segment Results – Corporate
|
|||||||||||||
First and Second Quarters of 2017
|
|||||||||||||
(unaudited)
|
|||||||||||||
Corporate (restated), compared with
|
|||||||||||||
Amounts previously reported in Corporate
|
|||||||||||||
3 Months Ended March 31, 2017
|
3 Months Ended June 30, 2017
|
||||||||||||
(in millions)
|
Corporate as Previously Reported
|
Corporate as Restated
|
Corporate as Previously Reported
|
Corporate as Restated
|
|||||||||
Revenues
|
|||||||||||||
Premiums (1)
|
$
|
(3)
|
$
|
(3)
|
$
|
(3)
|
$
|
(3)
|
|||||
Fees and other revenues (1)
|
(10)
|
(48)
|
(8)
|
(49)
|
|||||||||
Pharmacy revenue eliminations (1)
|
-
|
(287)
|
-
|
(320)
|
|||||||||
Net investment income (1)
|
8
|
8
|
8
|
8
|
|||||||||
Total revenues
|
(5)
|
(330)
|
(3)
|
(364)
|
|||||||||
Adjusted revenues (2)
|
(5)
|
(330)
|
(3)
|
(364)
|
|||||||||
Benefits and expenses
|
|||||||||||||
Benefit expenses (1)
|
(3)
|
(3)
|
(3)
|
(3)
|
|||||||||
Pharmacy and other service cost eliminations (1)
|
-
|
(322)
|
-
|
(357)
|
|||||||||
Selling, general and administrative expenses (1)
|
41
|
31
|
21
|
16
|
|||||||||
Special items
|
63
|
63
|
16
|
16
|
|||||||||
Total operating expenses
|
101
|
(231)
|
34
|
(328)
|
|||||||||
Income from operations
|
(106)
|
(99)
|
(37)
|
(36)
|
|||||||||
Interest expense and other
|
(62)
|
(69)
|
(60)
|
(61)
|
|||||||||
Income before income taxes
|
(168)
|
(168)
|
(97)
|
(97)
|
|||||||||
Pre-tax adjustments required to reconcile to adjusted income from operations
|
|||||||||||||
Special items
|
63
|
63
|
16
|
16
|
|||||||||
Pre-tax adjusted income from operations
|
$
|
(105)
|
$
|
(105)
|
$
|
(81)
|
$
|
(81)
|
|||||
(1) Includes amounts for elimination of intersegment revenues and expenses.
|
|||||||||||||
(2) There are no revenue adjustments in Corporate for the periods presented.
|
Cigna Corporation
|
|||
Date: January 23, 2019
|
By:
|
/s/ Eric P. Palmer | |
Eric P. Palmer
|
|||
Executive Vice President and
|
|||
Chief Financial Officer
|