Segment Information

6 Months Ended

Jun. 30, 2024

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 (loss) from operations as income (loss) 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.

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 June 30,								Six Months Ended June 30,
	2024				2023				2024				2023
(In millions)	Pre-tax		After-tax		Pre-tax		After-tax		Pre-tax		After-tax		Pre-tax		After-tax
Integration and transaction-related costs  (Selling, general and administrative expenses)	$	63	$	47	$	6	$	5	$	100	$	76	$	7	$	6
Loss (gain) on sale of businesses	—		—		—		—		19		(43)		—		—
Deferred tax expenses, net  (Income taxes, less amount attributable to noncontrolling interests)	—		17		—		—		—		34		—		—
Total impact from special items	$	63	$	64	$	6	$	5	$	119	$	67	$	7	$	6

Summarized segment financial information was as follows:

(In millions)	Evernorth Health Services		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Three months ended June 30, 2024
Revenues from external customers	$	48,251	$	11,821	$	130	$	—	$	60,202
Intersegment revenues	1,232		1,203		20		(2,455)
Net investment income	65		172		77		7		321
Total revenues	49,548		13,196		227		(2,448)		60,523
Net realized investment results from certain equity method investments	—		(53)		—		—		(53)
Adjusted revenues	$	49,548	$	13,143	$	227	$	(2,448)	$	60,470
Income (loss) before income taxes	$	1,299	$	1,205	$	(17)	$	(498)	$	1,989
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(95)		—		—		—		(95)
Net realized investment (gains) losses (1)	(1)		(5)		1		—		(5)
Amortization of acquired intangible assets	416		4		—		—		420
Special items
Integration and transaction-related costs	—		—		—		63		63
Pre-tax adjusted income (loss) from operations	$	1,619	$	1,204	$	(16)	$	(435)	$	2,372
(In millions)	Evernorth Health Services		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Three months ended June 30, 2023
Revenues from external customers	$	36,721	$	11,505	$	82	$	—	$	48,308
Intersegment revenues	1,422		1,044		—		(2,466)
Net investment income	62		135		76		5		278
Total revenues	38,205		12,684		158		(2,461)		48,586
Net realized investment results from certain equity method investments	—		30		—		—		30
Adjusted revenues	$	38,205	$	12,714	$	158	$	(2,461)	$	48,616
Income (loss) before income taxes	$	1,128	$	1,156	$	29	$	(429)	$	1,884
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(54)		(1)		—		—		(55)
Net realized investment (gains) losses (1)	(1)		5		—		—		4
Amortization of acquired intangible assets	443		12		—		—		455
Special items
Integration and transaction-related costs	—		—		—		6		6
Pre-tax adjusted income (loss) from operations	$	1,516	$	1,172	$	29	$	(423)	$	2,294

(1) Includes Net realized investment losses/gains as presented in our Consolidated Statements of Income, as well as 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, 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
Six months ended June 30, 2024
Revenues from external customers	$	93,137	$	23,833	$	196	$	1	$	117,167
Intersegment revenues	2,513		2,327		45		(4,885)
Net investment income	124		321		152		14		611
Total revenues	95,774		26,481		393		(4,870)		117,778
Net realized investment results from certain equity method investments	—		(61)		—		—		(61)
Adjusted revenues	$	95,774	$	26,420	$	393	$	(4,870)	$	117,717
Income (loss) before income taxes	$	863	$	2,148	$	1	$	(944)	$	2,068
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(172)		—		—		—		(172)
Net realized investment losses (1)	1,455		367		1		—		1,823
Amortization of acquired intangible assets	833		10		—		—		843
Special items
Integration and transaction-related costs	—		—		—		100		100
Loss on sale of businesses	—		19		—		—		19
Pre-tax adjusted income (loss) from operations	$	2,979	$	2,544	$	2	$	(844)	$	4,681
(In millions)	Evernorth Health Services		Cigna Healthcare		Other Operations		Corporate and Eliminations		Total
Six months ended June 30, 2023
Revenues from external customers	$	71,232	$	23,155	$	161	$	—	$	94,548
Intersegment revenues	3,040		2,007		—		(5,047)
Net investment income	112		278		154		11		555
Total revenues	74,384		25,440		315		(5,036)		95,103
Net realized investment results from certain equity method investments	—		(8)		—		—		(8)
Adjusted revenues	$	74,384	$	25,432	$	315	$	(5,036)	$	95,095
Income (loss) before income taxes	$	2,046	$	2,233	$	50	$	(844)	$	3,485
Pre-tax adjustments to reconcile to adjusted income from operations
(Income) attributable to noncontrolling interests	(96)		(2)		—		—		(98)
Net realized investment (gains) losses (1)	(1)		29		(6)		—		22
Amortization of acquired intangible assets	887		27		—		—		914
Special items
Integration and transaction-related costs	—		—		—		7		7
Pre-tax adjusted income (loss) from operations	$	2,836	$	2,287	$	44	$	(837)	$	4,330

(1)Includes Net realized investment losses/gains as presented in our Consolidated Statements of Income, as well as 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, which are presented within Fees and other revenues in our Consolidated Statements of Income.

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 June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
Products (Pharmacy revenues) (ASC 606)
Network revenues	$	25,276	$	16,406	$	49,442	$	32,154
Home delivery and specialty revenues	18,017		16,594		34,475		32,619
Other revenues	2,897		2,249		5,443		4,116
Total Evernorth Health Services	46,190		35,249		89,360		68,889
Total Other Operations	16		—		33		—
Intercompany eliminations	(1,105)		(1,285)		(2,256)		(2,781)
Total Pharmacy revenues	45,101		33,964		87,137		66,108
Insurance premiums (ASC 944)
Cigna Healthcare (1)
U.S. Healthcare
Employer insured	4,350		4,091		8,743		8,171
Medicare Advantage	2,207		2,180		4,494		4,416
Stop loss	1,665		1,514		3,333		3,017
Individual and Family Plans	975		1,293		2,015		2,501
Other	1,220		1,047		2,478		2,164
U.S. Healthcare	10,417		10,125		21,063		20,269
International Health	891		820		1,776		1,606
Total Cigna Healthcare	11,308		10,945		22,839		21,875
Other	115		76		163		155
Intercompany eliminations	31		18		55		34
Total Premiums	11,454		11,039		23,057		22,064
Services (Fees) (ASC 606)
Evernorth Health Services	3,251		2,838		6,194		5,337
Cigna Healthcare	1,608		1,602		3,179		3,208
Other Operations	17		1		42		2
Other revenues	152		63		242		129
Intercompany eliminations	(1,381)		(1,199)		(2,684)		(2,300)
Total Fees and other revenues	3,647		3,305		6,973		6,376
Total revenues from external customers	$	60,202	$	48,308	$	117,167	$	94,548

(1)Cigna Healthcare includes the U.S. Healthcare and International Health operating segments, which provide comprehensive medical and coordinated solutions to clients and customers. During the fourth quarter of 2023, the U.S. Commercial and U.S. Government operating segments merged to form the U.S. Healthcare operating segment. Information presented for the three and six months ended June 30, 2023 has been restated to conform to the new operating segment presentation.

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 $1.7 billion as of June 30, 2024 and $1.6 billion as of December 31, 2023.

Major customers. Revenues from a single pharmacy benefit client were approximately 16% of consolidated revenues for both the three and six months ended June 30, 2024. These amounts were reported in the Evernorth Health Services segment.

Additionally, revenues from U.S. Federal Government agencies, under a number of contracts, were approximately 10% and 12% of consolidated revenues for the three and six months ended June 30, 2024, respectively. These amounts were reported in the Evernorth Health Services and Cigna Healthcare segments. See Note 25 in the Company's 2023 Form 10-K for prior year revenue concentration information.