Form 8-K Cigna Corp For: Jan 22

January 23, 2019 6:03 AM

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) January 23, 2019

Cigna Corporation

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

001-38769

(Commission File Number)

82-4991898

(IRS Employer

Identification No.)

900 Cottage Grove Road

Bloomfield, Connecticut 06002

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:

(860) 226-6000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 7.01 Regulation FD Disclosure.

As previously disclosed, on March 8, 2018, Cigna Corporation (“Cigna”) entered into a merger agreement with Express Scripts Holding Company (“Express Scripts”). Following entry into the merger agreement and throughout the pendency of the transaction, Cigna and Express Scripts designed integration plans to ensure implementation of the management and business reporting structure of the combined company immediately upon closing. On December 20, 2018, Cigna completed the acquisition of Express Scripts. As a result, effective in the fourth quarter of 2018, our segments have changed as described more fully below. Prior period results for the first three quarters and nine months ended September 30, 2018 and the four quarters and full year ended December 31, 2017 and full year December 31, 2016 are presented on the historic and new segment basis in the following tables. Prior period results do not include results attributable to Express Scripts.

Cigna's segments effective in the fourth quarter 2018 are:

Integrated Medical offers a variety of medical solutions to employers and individuals.

●

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.

Health Services includes pharmacy benefits management, pharmacy home delivery, and certain medical management services. This includes the acquired Express Scripts business with the exception of Express Scripts’ Medicare Part D business, which is reported in the Government operating segment.

International Markets includes supplemental health, life and accident insurance products and health care coverage in select international markets as well as health care benefits to globally mobile employees of multinational organizations.

The remainder of our operations are aggregated and reported in Group Disability and Other, consisting of the following businesses:

●

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:

Reinsurance

Settlement Annuity

Individual Life Insurance and Annuity and Retirement Benefits Businesses

Certain international run-off businesses

Corporate reflects amounts not allocated to the businesses and includes intersegment eliminations.

Cigna's Investor Relations Department will be hosting a conference call this morning, January 23, 2019, beginning at 9:00 a.m. ET to describe the segment reporting changes and answer questions on this topic. The call-in numbers for the conference call are as follows:

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

It is strongly suggested you dial in to the conference call by 8:45 a.m. ET. The operator will periodically provide instructions regarding the call.

This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act whether made before or after the date of this report, except as shall be expressly set forth by specific reference in such a filing.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Current Report on Form 8-K, and oral statements made with respect to information contained on this website, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on Cigna's current expectations and projections about future trends, events and uncertainties. These statements are not historical facts. Forward-looking statements may include, among others, statements concerning future financial or operating performance, including our ability to deliver personalized and innovative solutions for our customers and clients; future growth, business strategy, strategic or operational initiatives; economic, regulatory or competitive environments, particularly with respect to the pace and extent of change in these areas; financing or capital deployment plans and amounts available for future deployment; our prospects for growth in the coming years; the merger (the “Merger”) with Express Scripts and other statements regarding Cigna's future beliefs, expectations, plans, intentions, financial condition or performance. You may identify forward-looking statements by the use of words such as “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “may,” “should,” “will” or other words or expressions of similar meaning, although not all forward-looking statements contain such terms.

Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Such risks and uncertainties include, but are not limited to: our ability to achieve our financial, strategic and operational plans or initiatives; our ability to predict and manage medical costs and price effectively and develop and maintain good relationships with physicians, hospitals and other health care providers; the impact of modifications to our operations and processes; our ability to identify potential strategic acquisitions or transactions and realize the expected benefits of such transactions, including with respect to the Merger; the substantial level of government regulation over our business and the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of litigation, regulatory audits, investigations, actions and/or guaranty fund assessments; uncertainties surrounding participation in government-sponsored programs such as Medicare; the effectiveness and security of our information technology and other business systems; unfavorable industry, economic or political conditions, including foreign currency movements; acts of war, terrorism, natural disasters or pandemics; the possibility that the anticipated benefits (including anticipated synergies) from the Merger cannot be realized in full, or at all or may take longer to realize than expected; problems regarding the successful integration of the businesses of Express Scripts and Cigna; unexpected costs regarding the Merger; the ability to retain key personnel; as well as more specific risks and uncertainties discussed in our most recent report on Form 10-K and subsequent reports on Forms 10-Q and 8-K available on the Investor Relations section of www.cigna.com as well as on Express Scripts’ most recent report on Form 10-K and subsequent reports on Forms 10-Q and 8-K available on the Investor Relations section of www.express-scripts.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Cigna undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

TABLE OF CONTENTS

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

Basis of presentation

All dollar amounts are in millions, unless otherwise noted.

Cigna measures its financial results on a consolidated basis using adjusted income from operations and adjusted revenues. Adjusted income from operations and adjusted revenues on a consolidated basis are not determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and should not be viewed as a substitute for the most directly comparable GAAP measures which are shareholders’ net income and total revenues. Cigna also uses adjusted income from operations to measure the results of its segments, however the segment metric is determined before income taxes.

For the periods presented in this Form 8-K, adjusted income from operations is defined as shareholders’ net income (or income before income taxes for the segment metric) excluding: net realized investment results, amortization of acquired intangible assets and special items. Beginning in 2018, the net realized investment result adjustment includes Cigna's share of certain realized investment results of its joint ventures reported using the equity method. Beginning with the fourth quarter of 2018, earnings contributions from Anthem Inc. and Coventry Health Care, Inc. (“transitioning PBM clients”) will also be excluded from shareholders’ net income when determining adjusted income from operations. Adjusted income from operations is used as our principle financial measure of operating performance because management believes it best presents the underlying results of operations of Cigna's businesses and permits analysis of trends in underlying revenue, expenses and profitability.

For the periods presented in this Form 8-K, adjusted revenues is defined as total revenues excluding: special items and, beginning in 2018, Cigna's share of certain realized investment results of its joint ventures reported using the equity method. Beginning with the fourth quarter of 2018, revenue contributions from transitioning PBM clients will also be excluded from total revenues when determining adjusted revenues. These items are excluded because they are not indicative of past or future underlying performance of our businesses.

Cigna adopted the new GAAP revenue recognition guidance (Accounting Standards Update (“ASU”) 2014-09 and related amendments) on a retrospective basis effective January 1, 2018. In addition, Cigna adopted Article 5 of Regulation S-X issued by the Securities and Exchange Commission effective December 31, 2018 in conjunction with the acquisition of Express Scripts on December 20, 2018. As a result, Cigna reclassified realized investment gains and (losses) previously reported in revenue and now reports this item below “Income from operations” along with interest expense and debt extinguishment charges in the Statements of Income, in conformity with Article 5. Prior year information has been reclassified to conform to this new presentation. Prior period results do not include results attributable to Express Scripts.

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.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		Cigna Corporation

Date: January 23, 2019	By:		/s/ Eric P. Palmer
			Eric P. Palmer
			Executive Vice President and
			Chief Financial Officer

StreetInsider

Log in to your account:

Form 8-K Cigna Corp For: Jan 22

Categories