Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

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 Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management believes these metrics best reflect the underlying results of business operations and permit analysis of trends in underlying revenue, expenses and profitability. We define pre-tax adjusted income from operations as income before income taxes excluding pre-tax income (loss) attributable to noncontrolling interests, net realized investment results, amortization of acquired intangible assets, and special items. The Cigna Group's share of certain realized 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 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 realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Special items are matters that management 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 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 to allocate resources or evaluate segment performance.

Special items charges (benefits) recorded by the Company were $1 million both pre-tax and after-tax for the three months ended March 31, 2023 and $52 million pre-tax ($37 million after-tax) for the three months ended March 31, 2022. Effective January 1, 2023, we adopted amended accounting guidance for long-duration insurance contracts. See Note 2 to the Consolidated Financial Statements for further information. Prior period summarized segment information has been retrospectively adjusted to conform to this new basis of accounting. 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, 2023
Revenues from external customers	$	34,511	$	11,650	$	79	$	—	$	46,240
Intersegment revenues	1,618		963		—		(2,581)
Net investment income	50		143		78		6		277
Total revenues	36,179		12,756		157		(2,575)		46,517
Net realized investment results from certain equity method investments	—		(38)		—		—		(38)
Adjusted revenues	$	36,179	$	12,718	$	157	$	(2,575)	$	46,479
Income (loss) before income taxes	$	918	$	1,077	$	21	$	(415)	$	1,601
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(42)		(1)		—		—		(43)
Net realized investment losses (gains) (1)	—		24		(6)		—		18
Amortization of acquired intangible assets	444		15		—		—		459
Special items
Integration and transaction-related costs	—		—		—		1		1
Pre-tax adjusted income (loss) from operations	$	1,320	$	1,115	$	15	$	(414)	$	2,036
(In millions)	Evernorth Health Services		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Three months ended March 31, 2022
Revenues from external customers	$	32,289	$	10,462	$	841	$	—	$	43,592
Intersegment revenues	1,287		562		—		(1,849)
Net investment income	10		266		138		—		414
Total revenues	33,586		11,290		979		(1,849)		44,006
Net realized investment results from certain equity method investments	—		103		—		—		103
Adjusted revenues	$	33,586	$	11,393	$	979	$	(1,849)	$	44,109
Income (loss) before income taxes	$	870	$	877	$	215	$	(395)	$	1,567
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(11)		(1)		(5)		—		(17)
Net realized investment losses (gains) (1)	—		406		19		—		425
Amortization of acquired intangible assets	443		15		—		—		458
Special items
Integration and transaction-related costs	—		—		—		52		52
Pre-tax adjusted income (loss) from operations	$	1,302	$	1,297	$	229	$	(343)	$	2,485

(1)Includes the Company's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting.

Revenue from external customers includes Pharmacy revenues, Premiums and Fees and other revenues. Prior period amounts have been retrospectively adjusted to reflect adoption of amended accounting guidance for long-duration insurance contracts, as discussed in Note 2 to the Consolidated Financial Statements. The following table presents these revenues by product, premium and service type:

	Three Months Ended March 31,
(In millions)	2023		2022
Products (Pharmacy revenues) (ASC 606)
Network revenues	$	15,748	$	15,531
Home delivery and specialty revenues	16,025		14,699
Other revenues	1,867		1,712
Intercompany eliminations	(1,496)		(1,245)
Total pharmacy revenues	32,144		30,697
Insurance premiums (ASC 944)
Cigna Healthcare
U.S. Commercial
Insured	4,080		3,720
Stop loss	1,503		1,325
Other (1)	368		360
U.S. Government
Medicare Advantage	2,236		2,078
Medicare Part D	415		401
Other (1), (2)
Short-duration (Individual and family plans)	1,208		611
Long-duration (Individual Medicare supplement and limited benefit health products)	334		329
International Health (2)
Short-duration (Group medical insurance)	700		620
Long-duration (Individual private medical insurance)	86		82
Total Cigna Healthcare	10,930		9,526
Divested International businesses	—		763
Other	79		69
Intercompany eliminations	16		(2)
Total premiums	11,025		10,356
Services (Fees) (ASC 606)
Evernorth Health Services	2,499		1,624
Cigna Healthcare	1,606		1,496
Other Operations	1		5
Other revenues	66		16
Intercompany eliminations	(1,101)		(602)
Total fees and other revenues	3,071		2,539
Total revenues from external customers	$	46,240	$	43,592

(1)Other than supplemental benefits, all of U.S. Commercial and U.S. Government are short duration.

(2)U.S. Government and International Health recognize premium revenue on long-duration insurance contracts (coverage greater than one year or guaranteed to be renewed at the option of the policyholder beyond one year) related to certain medicare supplement, supplemental health and life products. All other premium revenue recognized as of March 31, 2023 and March 31, 2022 is primarily related to short-duration insurance contracts.

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 $1.5 billion as of March 31, 2023 and $1.3 billion as of December 31, 2022.