The Cigna Group · NYSE:CI
The Cigna — Investor Day (March 2024)
192 slides from The Cigna's investor day presentation, Mar 7, 2024
Slide 1: Investor Day 2024
Investor Day 2024 Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 2: Investor Day 2024 – Investor Relations introduction
Investor Day 2024 Ralph Giacobbe Senior Vice President, Investor Relations The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 3: Forward-looking statements
INVESTOR DAY 2024 Forward-looking statements CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation, the Investor Day webcast of The Cigna Group (the “Company”) and oral statements made with respect to information c
Slide 4: Non-GAAP measures and other key financial information
INVESTOR DAY 2024 Non-GAAP measures and other key financial information Throughout this presentation, the term “adjusted earnings” means adjusted income (loss) from operations, and “adjusted earnings per share” or “adjusted EPS” means adjusted income (loss) from operations on a diluted per share bas
Slide 5: Delivering Better Health Today and Tomorrow
Delivering Better Health Today and Tomorrow David Cordani Chairman and Chief Executive Officer The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 6: Our 70K+ colleagues are taking on the greatest challenges in healthcare
D E L I V E R I N G B E T T E R H E A LT H Our 70K+ colleagues are taking on the greatest challenges in healthcare Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 7: We've built our company to deliver better health … today and tomorrow
D E L I V E R I N G B E T T E R H E A LT H We’ve built our company to deliver better health … today and tomorrow 1 2 3 We have a We are delivering We are prepared strong franchise in the present for the future Building on 10+ year Creating value across Well-positioned businesses – proven track recor
Slide 8: U.S. healthcare landscape
DELIVERING BETTER HEALTH U.S. healthcare landscape The U.S. spends more on healthcare than any other country in the world 85%+ of costs from Current expenditures: chronic conditions ~$4.5T 1 in 5 adults live with a mental health illness Confidential, unpublished property of The Cigna Group. Do not d
Slide 9: Three forces shaping the future of healthcare
D E L I V E R I N G B E T T E R H E A LT H Three forces shaping the future of healthcare Vitality is Pharmacological Tech-powered plateauing innovation surge innovation Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to autho
Slide 10: Vitality is plateauing
D E L I V E R I N G B E T T E R H E A LT H Vitality – a multi-dimensional view of quality of life – is plateauing Evernorth Vitality Index insights Strong Productive Better mental health: workforces: physical health: Those with strong Higher quality Fewer mental health are work and more chronic cond
Slide 11: We see a surge in pharmacological innovation
D E L I V E R I N G B E T T E R H E A LT H We see a surge in pharmacological innovation Surging demand for GLP-1s 40–45% Rx ~1,000 gene and cell % O F TOTA L C O S T O F C A R E therapies in the pipeline … vs. 25–30% 21 available today Rx 15–20% Rx Medical Medical Medical 2014 2024 2034 Confidential
Slide 12: Tech-driven innovation
D E L I V E R I N G B E T T E R H E A LT H Tech-driven innovation Rising expectations for healthcare to match game-changing advances of other industries Responsive Convenient Real-time Personalized Coordinated Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use
Slide 13: Rapid, growing use of virtual care
D E L I V E R I N G B E T T E R H E A LT H Rapid, growing use of virtual care ~25% of U.S. patients used telehealth last year, up from ~5% pre-pandemic New technologies, including generative AI, driving continued improvements in healthcare Confidential, unpublished property of The Cigna Group. Do no
Slide 14: We are built for this moment
D E L I V E R I N G B E T T E R H E A LT H We are built for this moment 1 2 3 Purpose and Durable growth Differentiated performance strategy approach Capital flexibility Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to auth
Slide 15: Our Mission
D E L I V E R I N G B E T T E R H E A LT H Purpose and performance Growth strategy Differentiated approach Capital flexibility To improve the Our Mission health and vitality of those we serve Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution
Slide 16: Sustaining our impact
D E L I V E R I N G B E T T E R H E A LT H Purpose and performance Growth strategy Differentiated approach Capital flexibility • Advancing health equity • Supporting our team O U R M I SS I O N • Commitment to strong governance • Strengthening our communities Sustaining our impact Confidential, unpu
Slide 17: Health and vitality
D E L I V E R I N G B E T T E R H E A LT H Purpose and performance Growth strategy Differentiated approach Capital flexibility O U R M I SS I O N Individuals S U S TA I N I N G O U R I M PA C T Health and vitality Employers Communities Confidential, unpublished property of The Cigna Group. Do not du
Slide 18: Clear, durable and dynamic growth strategy
D E L I V E R I N G B E T T E R H E A LT H Purpose and performance Growth strategy Differentiated approach Capital flexibility Clear, durable and dynamic growth strategy Cross-enterprise Foundational Accelerated leverage • Pharmacy Benefit Services • Specialty • Deepening relationships • U.S. Employ
Slide 19: Our differentiated approach
D E L I V E R I N G B E T T E R H E A LT H Purpose and performance Growth strategy Differentiated approach Capital flexibility Clinical expertise and longitudinal data Our 20,000 Anticipate patient needs through advanced clinicians across analytics and data differentiated our company approach Confid
Slide 20: Our differentiated approach
D E L I V E R I N G B E T T E R H E A LT H Purpose and performance Growth strategy Differentiated approach Capital flexibility Clinical expertise and longitudinal data Our Relentless focus on value differentiated and affordability approach Advancing Driving better clinical lower cost outcomes, of ca
Slide 21: Our differentiated approach
D E L I V E R I N G B E T T E R H E A LT H Purpose and performance Growth strategy Differentiated approach Capital flexibility Clinical expertise and longitudinal data Our Relentless focus on value differentiated and affordability approach Culture of innovation and partnership Innovations Partnershi
Slide 22: Our capital deployment priorities
D E L I V E R I N G B E T T E R H E A LT H Purpose and performance Growth strategy Differentiated approach Capital flexibility Our capital deployment priorities Our services-based, capital-light Continue investing model will generate 1 in our business $60 billion Disciplined approach of operating ca
Slide 23: Our team and today's discussion
D E L I V E R I N G B E T T E R H E A LT H Our Attractive Growth Markets Eric Palmer and Brian Evanko Foundational Growth: Pharmacy Adam Kautzner and Bryan Holgerson Benefit Services & U.S. Employer Accelerated Growth: Specialty Matt Perlberg and Heather Dlugolenski Our team Emerging Growth: Care Se
Slide 24: We've built our company for sustained performance
D E L I V E R I N G B E T T E R H E A LT H We’ve built our company for sustained performance … today and tomorrow 1 2 3 We have a We are delivering We are prepared strong franchise in the present for the future Building on 10+ year Creating value across Well-positioned businesses – proven track reco
Slide 25: Our Attractive Growth Markets
Our Attractive Growth Markets Eric Palmer President and Chief Executive Officer Evernorth Health Services Executive Vice President, Enterprise Strategy The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to author
Slide 26: Our businesses operate in attractive growth markets
O U R ATT R A C T I V E G R O W T H M A R K E T S Our businesses operate in attractive growth markets TOTAL ADDRESSABLE MARKET FRAMEWORK + + + Sizeable Secular Share gain Expanding markets growth opportunity our reach Confidential, unpublished property of The Cigna Group. Do not duplicate or distrib
Slide 27: Evernorth Health Services share of earnings
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S ~60% ~40% O F E A R N I N G S OF EARNINGS Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Ci
Slide 28: We have a balanced portfolio within Evernorth
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S We have a balanced portfolio within Evernorth ~50% ~50% PHARMACY BENEFIT S P E C I A LT Y A N D SERVICES CARE SERVICES Confidential, unpublished property of The Cigna Group. Do not duplicate or distribut
Slide 29: Our Evernorth market opportunity
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S ~$1T Our Evernorth market opportunity ~$4.5T E V E R N O RT H C U R R E N T A D D R E SS A B L E M A R K E T U.S. healthcare is significant expenditures today … Confidential, unpublished property of The
Slide 30: … and will expand as we add more
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S ~$1T … and will expand as we add more ~$4.5T E V E R N O RT H C U R R E N T A D D R E SS A B L E M A R K E T U.S. healthcare services expenditures tomorrow P OT E N T I A L F U T U R E A D D R E SS A B L
Slide 31: Specialty and Care Services: A big existing market
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Specialty and Care Services: A big existing market with powerful growth potential ~50% S P E C I A LT Y A N D CARE SERVICES Confidential, unpublished property of The Cigna Group. Do not duplicate or dist
Slide 32: Specialty is larger and faster-growing than Individual Medicare Advantage
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Specialty is a larger and faster-growing market than Individual Medicare Advantage ~$400B ~$375B Specialty market Individual Medicare Advantage market We will grow faster than the overall specialty marke
Slide 33: We are the leader in specialty
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Clinical expertise Comprehensive access We are the leader in specialty Owned operational assets and capabilities Culture of innovation and partnership Confidential, unpublished property of The Cigna Grou
Slide 34: Specialty has powerful growth potential
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Specialty has powerful growth potential MARKET SHARE AND SECULAR MARKET GROWTH 7–9% + BUYER GROUP EXPANSION UP TO 2% SPECIALTY 8–11% long-term average annual adjusted income growth outlook Confidential,
Slide 35: Our Care Services are targeting high-growth segments
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S ~$400B Our Care CARE SERVICES CURRENT A D D R E SS A B L E M A R K E T Services are targeting ~$4.5T Behavioral, home-based and virtual care high-growth U.S. healthcare expenditures segments today … Conf
Slide 36: … with significant opportunity for expansion
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S ~$400B CARE SERVICES CURRENT … with A D D R E SS A B L E M A R K E T significant opportunity ~$4.5T Behavioral, home-based and virtual care U.S. healthcare for expansion expenditures tomorrow P OT E N T
Slide 37: We have a unique approach for how we create value in Care Services
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Clinical expertise We have a unique approach for how Culture of innovation and partnership we create value in Care Services Capital-light, digital-first Confidential, unpublished property of The Cigna Gr
Slide 38: Care Services is well-poised for growth
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Care Services is well-poised for growth CARE SERVICES 10–15% long-term average annual adjusted income growth outlook Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute.
Slide 39: Pharmacy Benefit Services: Flexible offerings for every client need
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Pharmacy Benefit Services: Flexible offerings for every client need ~50% PHARMACY BENEFIT SERVICES Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribut
Slide 40: Diverse buyer groups require flexibility
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Diverse buyer groups require flexibility ~30% CHOE AMLTM EHRPCLIAANL ~45% GPAY OVERNMENT ER ~$450B Pharmacy Benefit Services market ~25% DIRECT E M P LOY E R INDUSTRY MIX Confidential, unpublished proper
Slide 41: Our Pharmacy Benefit Services are best in class
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Choice and modularity Our Pharmacy Benefit Services Supply chain excellence are best in class Clinical expertise Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use
Slide 42: Diverse and growing client base
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Diverse and growing client base 270+ new clients in 2024 24M new customers Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to au
Slide 43: Leadership and growth will continue in Pharmacy Benefit Services
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Leadership and growth will continue in Pharmacy Benefit Services MARKET SHARE AND SECULAR MARKET GROWTH 2–3% + BUYER GROUP EXPANSION UP TO 1% PHARMACY BENEFIT SERVICES 2–4% long-term average annual adjus
Slide 44: Evernorth growth outlook
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Evernorth growth outlook O U R LO N G -T E R M CURRENT MARKET SHARE AV E R A G E A N N U A L A D D R E SS A B L E SECULAR AND BUYER GROUP ADJUSTED INCOME MARKET GROWTH E X PA N S I O N G R O W T H O U T
Slide 45: Evernorth growth outlook continues to increase
O U R ATT R A C T I V E G R O W T H M A R K E T S • E V E R N O R T H H E A LT H S E R V I C E S Evernorth growth outlook continues to increase on a revenue base that has grown $90B over 5 years 5–8% 2024 5–7% 2022 4–6% 2021 3–5% 2019 2–4% PRE-MERGER E V E R N O RT H LO N G -T E R M AV E R A G E A N
Slide 46: Our Attractive Growth Markets
Our Attractive Growth Markets Brian Evanko President and Chief Executive Officer Cigna Healthcare Executive Vice President, Chief Financial Officer The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized
Slide 47: Cigna Healthcare share of earnings
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E ~60% O F E A R N I N G S ~40% OF EARNINGS Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 48: Our portfolio of businesses plays to our strengths
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E Our portfolio of businesses plays to our strengths Individual and U.S. Employer International Health Family Plans Comprehensive health Serving individuals Serving employers, insurance plans for in the Health Insurance g
Slide 49: Continued growth opportunity in U.S. Employer
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E Continued growth opportunity in U.S. Employer 33% N AT I O N A L ACCOUNTS 30% SELECT ~$1T MARKET OUR NATIONAL AND OUR SELECT MIDDLE MARKET SHARE = U.S. Employer MARKET SHARE = 11–13% market 7% 37% MIDDLE MARKET National
Slide 50: Considerable runway to deepen U.S. Employer relationships
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E Considerable runway to deepen U.S. Employer relationships 13+ 50% YEARS average length of of our National and our U.S. Employer Middle market clients relationships have 3+ solutions Confidential, unpublished property of
Slide 51: We will continue to deliver consistent and sustained growth
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E Multi-faceted approach to affordability We will continue to deliver consistent Highly consultative and sustained growth orientation in our U.S. Employer business Choice and modularity Confidential, unpublished property
Slide 52: Above-market growth in U.S. Employer
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E Above-market growth in U.S. Employer MARKET SHARE AND SECULAR MARKET GROWTH 4–6% + BUYER GROUP EXPANSION UP TO 2% U.S. EMPLOYER 6–8% long-term average annual adjusted income growth outlook Confidential, unpublished prop
Slide 53: Individual and Family Plans: A targeted growth opportunity
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E Individual and Family Plans: A targeted growth opportunity ~$150B 10–15% A D D R E SS A B L E long-term average MARKET annual adjusted income growth outlook We have presence in 14 states in the ACA market today Confiden
Slide 54: International Health: A steady contributor
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E International Health: A steady contributor G LO B A L E M P LOY E R ~$20B AND INDIVIDUAL H E A LT H M A R K E T 8–10% ~$40B DOMESTIC ~$200B long-term average annual adjusted H E A LT H addressable income growth outlook
Slide 55: Cross-enterprise leverage helps fuel our future
O U R ATT R A C T I V E G R O W T H M A R K E T S Cross-enterprise leverage helps fuel our future S P E C I A LT Y PHARMACY BENEFIT SERVICES B E H AV I O R A L H E A LT H V I RT U A L C A R E VA L U E - B A S E D C A R E F U T U R E C A PA B I L I T I E S C R O SS - E N T E R P R I S E L E V E R A G
Slide 56: Cigna Healthcare and Evernorth partner to create choice
O U R ATT R A C T I V E G R O W T H M A R K E T S Cigna Healthcare and Evernorth partner to create choice and $28B Expected to Cigna Healthcare total grow by 50% drive cross-enterprise cost of care impacted by Evernorth in less than 5 years leverage C R O SS - E N T E R P R I S E L E V E R A G E Con
Slide 57: Cigna Healthcare growth outlook
O U R ATT R A C T I V E G R O W T H M A R K E T S • C I G N A H E A LT H C A R E Cigna Healthcare growth outlook O U R LO N G -T E R M CURRENT MARKET SHARE AV E R A G E A N N U A L A D D R E SS A B L E SECULAR AND BUYER GROUP ADJUSTED INCOME MARKET GROWTH E X PA N S I O N G R O W T H O U T LO O K U.
Slide 58: Our businesses operate in attractive growth markets
O U R ATT R A C T I V E G R O W T H M A R K E T S Our businesses operate in attractive growth markets TOTAL ADDRESSABLE MARKET FRAMEWORK + + + Sizeable Secular Share gain Expanding markets growth opportunity our reach Confidential, unpublished property of The Cigna Group. Do not duplicate or distrib
Slide 59: Foundational Growth: Pharmacy Benefit Services
Foundational Growth: Pharmacy Benefit Services Adam Kautzner President, Express Scripts Evernorth Health Services Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 60: Pharmacy Benefit Services is a strong foundational business
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES Pharmacy Benefit Services is a strong foundational business Pharmacy Benefit Services Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2
Slide 61: The pharmacy benefit services market is large and continues to grow
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES The pharmacy benefit services market is large and continues to grow ~$450B Pharmacy benefit services market Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to aut
Slide 62: We have outpaced the market
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES We have outpaced the market 10% average annual customer growth over last 5 years 20% 6% 1 year customer growth without Centene Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution li
Slide 63: We serve a diverse mix of buyer group needs
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES We serve a diverse mix of buyer group needs GOVERNMENT 30% H E A LT H P L A N S AND PROGRAMS 6% CIGNA H E A LT H C A R E 22% COMMERCIAL H E A LT H P L A N S A N D PA RT N E R S ~120M 9% FEDERAL E M P LOY E R S Pharmacy Benefit Services c
Slide 64: Patients are feeling the pain of high drug prices
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES Patients are feeling the pain of high drug prices $300,000 + median annual list price for new drugs = in 2023 New innovative Expensive Affordability and medicines price tags access crisis We innovate with market-leading solutions: SafeGu
Slide 65: We deliver best-in-class service, expertise and capabilities
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES Choice and modularity We deliver best-in-class Supply chain excellence service, expertise and capabilities Clinical expertise Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution lim
Slide 66: We offer flexibility to meet the unique needs of diverse buyers
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES We offer flexibility to meet the unique needs of diverse buyers Integrated services or modular solutions No one-size-fits-all Standard or approach customized offerings Choice in how to pay for services Confidential, unpublished property
Slide 67: Unparalleled knowledge, breadth and reach
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES Unparalleled knowledge, breadth and reach to drive competition and value across the supply chain ~$38B client savings/year When our clients and patients save, we all win 3 in 4 customers spend less than $100/year out-of-pocket Confidenti
Slide 68: Our clinical expertise drives value-based pharmacy care
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES Our clinical expertise drives value-based pharmacy care – improving outcomes and saving money SafeGuardRx • Condition-specific patient engagement Clinical programs closed • Innovative cost-containment strategies 11 86M ~$6.4B 5 million c
Slide 69: Case study: Closing clinical gaps in diabetes care
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES Case study: Closing clinical gaps in diabetes care Medication 360-degree Support to Integrated nonadherence view manage view Patient with Pharmacy and condition Enables more diabetes is medical data Started on targeted guidance unable to
Slide 70: We're built to lead through the issues of today
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES We’re built to lead through the issues of today and solve our clients’ toughest challenges Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel
Slide 71: GLP-1 affordability crisis
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES GLP-1 affordability crisis: Clients need predictability and certainty 42% #1 driver of drug trend of Americans are obese $15,000 per year list price 38M Americans have diabetes ~$100B market by 2030 Confidential, unpublished property of
Slide 72: Introducing EncircleRx
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES EncircleRx Cardiodiabesity value-based care Introducing the first-ever Deep insights to ensure people GLP-1 who will benefit the most get it financial guarantee Combines clinically proven lifestyle modifications and support Confidential,
Slide 73: Strong and stable growth
F O U N D AT I O N A L G R O W T H • PHARMACY BENEFIT SERVICES Strong and stable growth Partner Differentiated Flexibility to adapt of choice offerings built for to changing multiple buyers market dynamics Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and
Slide 74: Foundational Growth: U.S. Employer
Foundational Growth: U.S. Employer Bryan Holgerson President, U.S. Employer Cigna Healthcare Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 75: Partnering with our employer clients to achieve their goals
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Partnering with our employer clients to achieve their goals Attracting and 1 retaining talent Ensuring health benefits are 2 competitive and affordable Increased vitality to 3 drive business growth Confidential, unpublished property of The Cigna Gro
Slide 76: Consistent and compelling track record of growth
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Consistent and compelling track record of growth 7.7 3-YEAR CAGR 7.7% 7.6 5-YEAR CAGR 7.5 7.5% REVENUE 7.4 7.3 10-YEAR CAGR 7.3% 7.2 2013 2018 2020 2023 Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and d
Slide 77: Our differentiated approach fuels our growth
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Multi-faceted approach to affordability Our differentiated Highly consultative approach fuels orientation our growth Choice and modularity Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution li
Slide 78: Our multi-faceted approach to affordability
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Our multi-faceted approach to affordability ~60% Doubled our cost-competitive geographic footprint since 2019 ~30% Cost Cost competitive competitive in 2019 in 2024 Confidential, unpublished property of The Cigna Group. Do not duplicate or distribut
Slide 79: Our multi-faceted approach to affordability
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Our multi-faceted approach to affordability Deep collaborative partnerships with high-performing providers Superior clinical expertise Focused on and analytics high quality care to lower cost and Guide customers to highest- drive better outcomes qua
Slide 80: Our highly consultative solutions-based approach
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Our highly consultative solutions-based approach 1 2 3 Understand Leverage Tailor client needs broad portfolio benefits strategy of solutions Solutions integrated seamlessly Confidential, unpublished property of The Cigna Group. Do not duplicate or
Slide 81: ~$3,000 savings per engaged employee
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER ~$3,000 savings per engaged employee per year when their employers integrate their solutions Medical Behavioral Pharmacy Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to au
Slide 82: Partnering to create choice and drive cross-enterprise leverage
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Partnering to create choice and drive cross-enterprise leverage Leveraging Evernorth Work with clients to provide a to choose the best spectrum of solutions combination of solutions for their needs Confidential, unpublished property of The Cigna Gro
Slide 83: Decades of expertise in funding choices creates value for clients
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Decades of expertise in funding choices creates value for clients Self- Fully funded insured Choice orientation Accommodates clients’ appetite for risk Aligned incentives 50%+ of our self-funded Select clients receive a savings surplus Confidential,
Slide 84: We are the leader in Select market self-funded solutions
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER We are the leader in Select market self-funded solutions SELF-FUNDED MIX IN SELECT MARKET Self-funded 30% 60% Fully insured Cigna Market Healthcare Our self-funded mix is 2x larger than the Select market mix Select Market = Employer clients with 50-
Slide 85: Continued market share gains in Select segment
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Continued market share gains in Select segment give us a clear path for growth 7% 5% We expect to double Select segment revenue in 5 years 2018 2024 SELECT SEGMENT MARKET SHARE Select Market = Employer clients with 50-499 lives Confidential, unpubli
Slide 86: Our differentiated approach fuels our growth
F O U N D AT I O N A L G R O W T H • U.S. EMPLOYER Multi-faceted approach to affordability Our differentiated Highly consultative approach fuels orientation our growth Choice and modularity Help those we serve achieve greater health and vitality Confidential, unpublished property of The Cigna Group.
Slide 87: Accelerated Growth: Specialty
Accelerated Growth: Specialty Matt Perlberg President, Specialty and Care Delivery Evernorth Health Services Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 88: We deliver highly specialized patient care
A C C E L E R AT E D G R O W T H • S P E C I A LT Y We deliver highly specialized patient care Specialty drugs: Treat patients with complex conditions Specialized patient care: Clinical teams provide 24/7 support Costly: Medications can be millions of dollars per patient Confidential, unpublished pr
Slide 89: Today's discussion
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Our overall Specialty growth opportunity Today’s Innovating to meet customer needs discussion Our differentiated capabilities Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely
Slide 90: The specialty market is large
A C C E L E R AT E D G R O W T H • S P E C I A LT Y The specialty market is large ~$400B Specialty market Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 91: The specialty market is larger than Individual Medicare Advantage
A C C E L E R AT E D G R O W T H • S P E C I A LT Y The specialty market is larger than the Individual Medicare Advantage market ~$400B ~$375B Specialty market Individual Medicare Advantage market Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribu
Slide 92: Specialty is growing faster than Individual Medicare Advantage
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Specialty is growing faster than the Individual Medicare Advantage market ~$400B ~$375B Specialty market Individual Medicare Advantage market Because of our unique strengths and capabilities, we will grow faster than the overall specialty market. C
Slide 93: Opportunity with specialty is significant
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Opportunity with specialty is significant PHARMACY BENEFIT MEDICAL BENEFIT ~$400B direct to patient direct to provider Specialty market Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limi
Slide 94: We are the leader in the specialty pharmacy benefit space
A C C E L E R AT E D G R O W T H • S P E C I A LT Y We are the leader in the specialty pharmacy benefit space PHARMACY ~$240B BENEFIT ~$400B direct to patient Today, we serve the pharmacy benefit Specialty through Accredo® market OUR MARKET SHARE = ~25% Confidential, unpublished property of The Cign
Slide 95: Expanding our reach in the specialty medical benefit space
A C C E L E R AT E D G R O W T H • S P E C I A LT Y And we are expanding our reach in the specialty medical benefit space MEDICAL ~$160B BENEFIT ~$400B direct to provider Today, we serve Specialty the medical benefit through Accredo, market CuraScript SD® and CarepathRx OUR MARKET SHARE = ~6% Confid
Slide 96: Accredo, CuraScript SD and CarepathRx
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Accredo CuraScript SD + CarepathRx Only company with broad capabilities across the entire specialty market Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized pers
Slide 97: We serve a balanced portfolio of clients
A C C E L E R AT E D G R O W T H • S P E C I A LT Y We serve a balanced portfolio of clients ~40% of Accredo revenue comes from sources outside The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized per
Slide 98: Experts at treating the full spectrum of specialty conditions
A C C E L E R AT E D G R O W T H • S P E C I A LT Y We are experts at treating the full spectrum of specialty conditions Higher prevalence Rare conditions conditions Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authoriz
Slide 99: High prevalence conditions = majority of biosimilars
A C C E L E R AT E D G R O W T H • S P E C I A LT Y High prevalence conditions = majority of biosimilars Higher prevalence Rare conditions conditions Examples include: • Rheumatoid arthritis • Multiple sclerosis • Endocrine conditions • Breast cancer Confidential, unpublished property of The Cigna G
Slide 100: More biosimilar launches for Humira
A C C E L E R AT E D G R O W T H • S P E C I A LT Y This year, we will see more biosimilar launches for Humira Competition will allow us to drive savings for clients and patients Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solel
Slide 101: Biosimilar for Humira at Accredo
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Biosimilar for Humira at Accredo $0 patient out of pocket* $60M of patient savings annually, or $3,500 per patient annually *Evernorth plans to have available for eligible patients. Terms and conditions may apply. Estimated potential savings and av
Slide 102: Substantial biosimilar opportunity beyond Humira
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Substantial biosimilar opportunity beyond Humira By 2030, biosimilars and generics will launch for nearly half $100B annual specialty drug spend of the top 25 specialty will be open to competition drugs in the U.S. by 2030, excluding Humira Confide
Slide 103: Rare therapies will continue to experience significant growth
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Rare therapies will continue to experience significant growth Higher prevalence Rare conditions conditions Examples include: • Hemophilia • Pulmonary arterial hypertension • Spinal muscular atrophy • Multiple myeloma Confidential, unpublished prope
Slide 104: Rare therapy growth
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Rare therapy growth In 2023, 50%+ of drug There are 21 gene and cell These drugs can approvals were for rare therapies today and nearly cost millions of and orphan conditions 1,000 more in the pipeline dollars per patient Confidential, unpublished
Slide 105: The growth opportunity within specialty is significant
A C C E L E R AT E D G R O W T H • S P E C I A LT Y The growth opportunity within specialty is significant Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 106: Accelerated Growth: Specialty
Accelerated Growth: Specialty Heather Dlugolenski Chief Strategy Officer, U.S. Employer Cigna Healthcare Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 107: Continuously assessing our employer clients' needs
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Cigna Healthcare: Continuously assessing our employer clients’ needs Design innovative solutions Differentiate in the marketplace Leverage strategic partners, including Accredo Confidential, unpublished property of The Cigna Group. Do not duplicate
Slide 108: Specialty's impact on total cost of care
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Specialty’s impact on total cost of care 2–3% They account for of the population has 1/3 a specialty condition of the total of cost care Reduce overall cost of care A specialty patient’s total cost of care is 20x higher than a non-specialty patient
Slide 109: Addressing employer client priorities
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Addressing employer client priorities Reduce overall Clinical Access to Patient cost of care expertise specialty medications experience Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limi
Slide 110: Accredo delivers a full-service and comprehensive Specialty solution
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Accredo delivers a full-service and comprehensive Specialty solution Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 111: Cigna Pathwell Specialty
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Cigna Pathwell Specialty addresses healthcare’s most complex and costly conditions Reduces specialty drug costs Improves care Improves clinical outcomes Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and
Slide 112: Driving value through Cigna Pathwell Specialty
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Driving value through Cigna Pathwell Specialty National Transitioning Best-in-class provider network to home care 28,000+ ~50% Exceptional care high-performing of patients receive leads to reductions and cost-effective care at home in complications
Slide 113: Driving value through Cigna Pathwell Specialty
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Driving value through Cigna Pathwell Specialty National Transitioning Best-in-class provider network to home care This solution could not exist without Accredo Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. U
Slide 114: The impact is significant
A C C E L E R AT E D G R O W T H • S P E C I A LT Y The impact is significant 50% Reduction in cost of specialty drugs Higher adherence with Accredo, outperforming competitors and administered through Accredo reducing total cost of care Confidential, unpublished property of The Cigna Group. Do not d
Slide 115: Accredo well positioned for future growth
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Accredo well positioned for future growth Accredo serves about half of our U.S. Employer Substantial Specialty spend cross-enterprise growth opportunity over time Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute
Slide 116: We are the leader in specialty with best-in-class capabilities
A C C E L E R AT E D G R O W T H • S P E C I A LT Y We are the leader in specialty with best-in-class capabilities Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 117: We are the leader in this space: clinical expertise
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Clinical expertise • 15 Therapeutic Resource Centers • Deep level of specialization • Unique to Accredo We are the leader in this space Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limi
Slide 118: We are the leader in this space: comprehensive access
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Clinical expertise Comprehensive access • Manufacturers choose us We are the leader • Leader in access to drugs in this space • Access to more than any of our competitors Confidential, unpublished property of The Cigna Group. Do not duplicate or di
Slide 119: We are the leader in this space: owned assets
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Clinical expertise Comprehensive access We are the leader Owned operational assets and capabilities in this space • 28 national care delivery sites • State-of-the-art clean rooms • Directly employed specialized nurses Confidential, unpublished prop
Slide 120: We are the leader in this space: innovation and partnership
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Clinical expertise Comprehensive access We are the leader Owned operational assets and capabilities in this space Culture of innovation and partnership • The most complete offering in the market • Accredo and CuraScript: Leaders in drug access • Ab
Slide 121: CuraScript well positioned for future growth
A C C E L E R AT E D G R O W T H • S P E C I A LT Y CuraScript well positioned for future growth CuraScript supplies less than 20% of Accredo Specialty spend Substantial growth opportunity over time Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distri
Slide 122: Accredo, CuraScript SD and CarepathRx
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Accredo Ability to + CuraScript SD = treat patients end to end CarepathRx Our differentiators allow us to deliver greater affordability and better clinical care Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute.
Slide 123: Key takeaways
A C C E L E R AT E D G R O W T H • S P E C I A LT Y Key takeaways 1 2 3 4 Specialty is an Because of our We are the leader We have decades over $400B market. unique strengths in specialty of experience That is larger and and capabilities, and a model that faster growing we will grow faster is very d
Slide 124: Emerging Growth: Care Services
Emerging Growth: Care Services Eric Palmer President and Chief Executive Officer Evernorth Health Services Executive Vice President, Enterprise Strategy The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to autho
Slide 125: What you've heard so far …
EMERGING GROWTH • CARE SERVICES What you’ve heard so far … 1 2 3 Expanding Leading and Accelerating market opportunities growing growth Pharmacy Benefit Services through Specialty and U.S. Employer Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distrib
Slide 126: Driving better personalization, better outcomes through Care Services
EMERGING GROWTH • CARE SERVICES Driving better personalization, better outcomes and better affordability through Care Services Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 127: We are innovating for care tomorrow while specializing today
EMERGING GROWTH • CARE SERVICES Clinical expertise We are innovating for Culture of innovation care tomorrow while and partnership specializing today Capital-light, digital-first Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solel
Slide 128: Our Care Services are targeting high-growth sub-segments
EMERGING GROWTH • CARE SERVICES ~$400B Our Care CARE SERVICES CURRENT A D D R E SS A B L E M A R K E T Services are targeting ~$4.5T Behavioral, home-based and virtual care high-growth U.S. healthcare expenditures sub-segments P OT E N T I A L F U T U R E A D D R E SS A B L E M A R K E T INCREASE Co
Slide 129: Our Evernorth Care businesses
EMERGING GROWTH • CARE SERVICES SNAPSHOT Our Evernorth Care businesses MDLIVE Behavioral Home-based Accountable Virtual Care Health Care Care 60M 23M 48 4 customers customers states markets Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution li
Slide 130: Traditional value-based care approach
EMERGING GROWTH • CARE SERVICES Traditional value-based care approach Proprietary health plan Risk-based customer relationship • Owned provider group Monetize through capitation • Owned home care Monetize through risk transfer Confidential, unpublished property of The Cigna Group. Do not duplicate o
Slide 131: Our approach to value-based care is unique
EMERGING GROWTH • CARE SERVICES Our approach to value-based care is unique Cost of care Patient Proprietary or external Savings shared with health plan health plan Provider Patient partner Fully insured Savings shared with provider or self-insured client Savings retained Quality outcomes at lower co
Slide 132: Partnership-oriented value-based care drives affordability and outcomes
EMERGING GROWTH • CARE SERVICES Partnership-oriented value-based care drives affordability and outcomes Convene the Shared savings via Capital-light right care vs. incentive alignment approach avoidance of care Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Us
Slide 133: We are innovating for care tomorrow
EMERGING GROWTH • CARE SERVICES We are innovating for care tomorrow Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 134: Emerging Growth: Care Services
Emerging Growth: Care Services Eva Borden President, Behavioral Health Evernorth Health Services Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 135: Wide range of behavioral diagnoses
EMERGING GROWTH • CARE SERVICES Wide range of behavioral diagnoses Anxiety Substance use disorder 150+ Neurological and developmental disorders (autism and ADHD) Severe mental illness (bipolar disorder and schizophrenia) Confidential, unpublished property of The Cigna Group. Do not duplicate or dist
Slide 136: We lead the industry in connecting patients to care
EMERGING GROWTH • CARE SERVICES We lead the industry in connecting patients to care 24/7/365 Largest and fastest-growing clinical access behavioral network, with 380,000 clinicians Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited sol
Slide 137: Patients demand faster and more personalized connection to care
EMERGING GROWTH • CARE SERVICES Patients demand faster and more personalized connection to care Can take years Lack full to get the support for right care their needs 4–6 month Time spent wait for finding the appointment right clinician Confidential, unpublished property of The Cigna Group. Do not d
Slide 138: Clinicians demand better tools and resources
EMERGING GROWTH • CARE SERVICES Clinicians demand better tools and resources to deliver better care Often small practices of 1 or 2 clinicians Limited technology Lack tools for measuring quality and outcomes Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use a
Slide 139: Behavioral health intervention improves health and value
EMERGING GROWTH • CARE SERVICES Behavioral health intervention improves health and value 40% of costs driven by patients with behavioral conditions Total healthcare costs Behavioral health diagnoses are often connected to chronic and costly conditions Confidential, unpublished property of The Cigna
Slide 140: Behavioral Health market
EMERGING GROWTH • CARE SERVICES ~$200B Behavioral Health market Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 141: Behavioral care demand has doubled
EMERGING GROWTH • CARE SERVICES ~2x increase behavioral care demand in the last 4 years 1 in 2 Americans with behavioral health needs don’t get treatment Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel
Slide 142: What sets Evernorth Behavioral Health apart
EMERGING GROWTH • CARE SERVICES Always-on human-centric guided access Dedicated support and differentiated technology What sets Evernorth Behavioral Health apart Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized p
Slide 143: What sets Evernorth Behavioral Health apart
EMERGING GROWTH • CARE SERVICES Always-on human-centric guided access What sets Connected data and insights Evernorth Identify and connect people to care earlier Behavioral Health apart Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limite
Slide 144: What sets Evernorth Behavioral Health apart
EMERGING GROWTH • CARE SERVICES Always-on human-centric guided access What sets Connected data and insights Evernorth Behavioral Health apart Clinical expertise Specialized programs for families, autism and substance use 40,000+ clinicians in value-based care arrangements Confidential, unpublished p
Slide 145: The power of data-driven patient-clinician match
EMERGING GROWTH • CARE SERVICES The power of data-driven patient-clinician match 100%follow-up rate to ensure clinical match Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 146: Results in meaningful savings and better health
EMERGING GROWTH • CARE SERVICES Results in meaningful savings and better health 1 month Care within 15% of diagnosis vs. = reduction 4–6 months in total cost of care Up to 3+ 20% 40% behavioral = reduction for higher outpatient visits in total cost of care acuity patients Confidential, unpublished p
Slide 147: Introducing Evernorth Behavioral Care Group
EMERGING GROWTH • CARE SERVICES Access to clinicians Accountable within 72 hours INTRODUCING health outcomes Evernorth Behavioral Care Group Substantially Launched and reducing will fully scale administrative burden in 2025 Confidential, unpublished property of The Cigna Group. Do not duplicate or d
Slide 148: Personalizing and Improving Care with Technology
Personalizing and Improving Care with Technology Noelle Eder Global Chief Information Officer The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 149: Fueling our growth through technology
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Fueling our growth through technology Our strategy sets us up for success Technologically led and physically supported Ability to meet the changing needs and expectations of stakeholders Compete and transcend in a dynamic market Confidential, unpublis
Slide 150: Introducing the Evernorth Digital Health Kit
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Introducing the Evernorth Digital Health Kit SM Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 151: Technology and data empower us to adapt to evolving needs
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Technology and data empower us to adapt to evolving needs Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 152: Our Health Kit in action
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Our Health Kit in action Pharmacy services Composable, Primary care access reusable capabilities Virtual urgent care Personalized Behavioral healthcare Responsive Benefit navigation Client add-ons Confidential, unpublished property of The Cigna Group.
Slide 153: What sets our technology capabilities apart
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Rich data across Medical + Pharmacy + Behavioral What sets our Composable technical technology capabilities capabilities apart Capital-light, partnership- oriented dynamic model Confidential, unpublished property of The Cigna Group. Do not duplicate o
Slide 154: Investing in the future of care
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Investing in the future of care Site of care optimization Unlocking efficiency with GenAI Data-informed provider enablement Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to a
Slide 155: Patient-centered, coordinated care
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Patient-centered, coordinated care Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 156: Built to be nimble and flexible
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Built to be nimble and flexible Evolving to meet customer needs and market expectations Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cign
Slide 157: Made possible by Evernorth Digital Health Kit
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY Made possible by Evernorth Digital Health Kit Meaningful insights Seamless connectivity, Personalized for clients and experiences, outcomes experiences their employees and affordability Confidential, unpublished property of The Cigna Group. Do not dup
Slide 158: The future of care
PERSONALIZING AND IMPROVING CARE WITH TECHNOLOGY The future of care Personalized Connected Evolving Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 159: Our Financial Commitments
Our Financial Commitments Brian Evanko Executive Vice President, Chief Financial Officer The Cigna Group President and Chief Executive Officer Cigna Healthcare Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized per
Slide 160: A decade of growth exceeding expectations
OUR FINANCIAL COMMITMENTS A decade of growth exceeding expectations 13%+ annual Adj. $25.09 EPS growth Adj. EPS $7.29 Adj. EPS 2013 2023 Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cign
Slide 161: Raising long-term average annual adjusted EPS growth target
OUR FINANCIAL COMMITMENTS Raising long-term average annual adjusted EPS 10–14% growth target Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 162: Two high-performing growth platforms
OUR FINANCIAL COMMITMENTS Two high-performing growth platforms ~60% O F E A R N I N G S ~40% O F E A R N I N G S Cross-enterprise leverage is mutually beneficial Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized p
Slide 163: Our differentiated approach sustains our long-term growth
OUR FINANCIAL COMMITMENTS Clinical expertise and longitudinal data Our differentiated approach sustains Relentless focus on value and affordability our long-term growth Culture of innovation and partnership Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use an
Slide 164: Performance exceeded expectations
OUR FINANCIAL COMMITMENTS 2023 ADJUSTED REVENUE $195B Performance exceeded expectations ADJUSTED EPS $25.09 2024 ADJUSTED REVENUE GUIDANCE At least $235B Outlook continues our strong track record of growth ADJUSTED EPS GUIDANCE At least $28.25 Confidential, unpublished property of The Cigna Group. D
Slide 165: Share of earnings by platform
OUR FINANCIAL COMMITMENTS ~60% O F E A R N I N G S ~40% O F E A R N I N G S Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 166: Share of earnings
OUR FINANCIAL COMMITMENTS ~60% O F E A R N I N G S Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 167: New quarterly disclosures starting 1Q 2024
OUR FINANCIAL COMMITMENTS New quarterly disclosures starting 1Q 2024 Revenue and adjusted operating earnings breakout for Pharmacy Benefit Services and Specialty and Care Services ~50% ~50% of adj. earnings of adj. earnings PHARMACY BENEFIT S P E C I A LT Y A N D SERVICES CARE SERVICES Confidential,
Slide 168: Raising the growth outlook for Evernorth
OUR FINANCIAL COMMITMENTS Raising the growth outlook for Evernorth 5–8% long-term average annual adjusted income growth outlook LONG-TERM AVERAGE TARGET MARGINS 3.5–4.5% Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to auth
Slide 169: Evernorth growth outlook continues to increase
OUR FINANCIAL COMMITMENTS Evernorth growth outlook continues to increase on a revenue base that has grown $90B over 5 years 5–8% 2024 5–7% 2022 4–6% 2021 3–5% 2019 2–4% PRE-MERGER E V E R N O RT H LO N G -T E R M AV E R A G E A N N U A L A D J U S T E D I N C O M E G R O W T H O U T LO O K Confident
Slide 170: Strong and stable growth in Pharmacy Benefit Services
OUR FINANCIAL COMMITMENTS Strong and stable growth in Pharmacy Benefit Services MARKET SHARE AND SECULAR GROWTH 2–3% + BUYER GROUP EXPANSION UP TO 1% PHARMACY BENEFIT SERVICES 2–4% long-term average annual adjusted income growth outlook Confidential, unpublished property of The Cigna Group. Do not d
Slide 171: Continued accelerated growth opportunities in Specialty and Care Services
OUR FINANCIAL COMMITMENTS Continued accelerated growth opportunities in Specialty and Care Services up to 2% market 7–9% secular growth + share and buyer group expansion SPECIALTY GROWTH OUTLOOK CARE SERVICES GROWTH OUTLOOK 8–11% 10–15% SPECIALTY AND CARE SERVICES 8–12% long-term average annual adju
Slide 172: Continued strong growth in Cigna Healthcare
OUR FINANCIAL COMMITMENTS Continued strong growth in Cigna Healthcare 7–10% long-term average annual adjusted income growth outlook LONG-TERM AVERAGE TARGET MARGINS 10.5–11.5% Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely t
Slide 173: Growing above the market in U.S. Employer
OUR FINANCIAL COMMITMENTS Growing above the market in U.S. Employer MARKET SHARE AND SECULAR GROWTH 4–6% + BUYER GROUP EXPANSION UP TO 2% U.S. EMPLOYER 6–8% long-term average annual adjusted income growth outlook Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute.
Slide 174: Individual and Family Plans: A targeted growth opportunity
OUR FINANCIAL COMMITMENTS Individual and Family Plans: A targeted growth opportunity INDIVIDUAL AND FAMILY PLANS 10–15% long-term average annual adjusted income growth outlook Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely t
Slide 175: International Health: A steady contributor
OUR FINANCIAL COMMITMENTS International Health: A steady contributor INTERNATIONAL HEALTH 8–10% long-term average annual adjusted income growth outlook Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel.
Slide 176: Enterprise adjusted income growth algorithm
OUR FINANCIAL COMMITMENTS Enterprise adjusted income growth algorithm ~30% OF ADJ. INCOME 2–4% GROWTH E V E R N O RT H P H A R M A C Y ~40% OF ADJ. INCOME BENEFIT SERVICES 7–10% GROWTH ~30% OF ADJ. INCOME C I G N A H E A LT H C A R E 8–12% GROWTH E V E R N O RT H S P E C I A LT Y AND CARE SERVICES C
Slide 177: Enterprise adjusted income growth algorithm
OUR FINANCIAL COMMITMENTS Enterprise adjusted income growth algorithm U.S. Employer 6–8% Pharmacy Benefit Services 2–4% Individual and Family Plans 10–15% Specialty and Care Services 8–12% International Health 8–10% 5–8% 7–10% 6–9% Confidential, unpublished property of The Cigna Group. Do not duplic
Slide 178: Capital deployment: ~$60B
OUR FINANCIAL COMMITMENTS ~20–25% C API TAL E XPE N DI T U RE S AN D SU RPL U S TO FU N D GROW T H Capital deployment: ~$60B ~15% 4-5% cash flow over the DI VI DE N D EPS Growth next five years ~60–65% ST RAT E G I C M&A, SHARE RE PU RC HASE , RE PAY DE BT Confidential, unpublished property of The C
Slide 179: M&A criteria
OUR FINANCIAL COMMITMENTS M&A criteria 1 2 3 Strategically Financially High probability aligned attractive of close Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 180: Strong long-term shareholder value
OUR FINANCIAL COMMITMENTS Strong long-term shareholder value LONG-TERM AVERAGE LONG-TERM AVERAGE ANNUAL ANNUAL CONTRIBUTION ADJUSTED INCOME GROWTH 6–9% + FROM CAPITAL DEPLOYMENT 4–5% ENTERPRISE 10–14% long-term average annual adjusted EPS growth outlook PLUS AN ATTRACTIVE DIVIDEND 1–2% Confidential,
Slide 181: We are well positioned to deliver on our financial commitments
OUR FINANCIAL COMMITMENTS We are well positioned to deliver on our financial commitments Well-diversified Differentiated Capital-light portfolio of growth capabilities to grow framework businesses above the market Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute.
Slide 182: Closing Remarks
Closing Remarks David Cordani Chairman and Chief Executive Officer The Cigna Group Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 183: We've built our company to deliver better health and sustained performance
WHY THE CIGNA GROUP We’ve built our company to deliver better health and sustained performance… today and tomorrow. Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 184: We have a strong franchise
WHY THE CIGNA GROUP 1 We have a strong franchise • ~$1T addressable market • ~$1.3T addressable market • Balanced portfolio in • Three strong businesses pharmacy benefits, for employers, individuals, specialty and care services expats, IGOs/NGOs • Grew revenue base ~$90B • Track record of growth ove
Slide 185: We are delivering in the present with our foundational businesses
WHY THE CIGNA GROUP We are delivering in the present 2 with our foundational businesses Pharmacy U.S. Employer Benefit Services • Addressable market of ~$450B • Addressable market of ~$1T • Differentiated expertise, • Long track record of growth capabilities, flexibility • Expect Select segment to d
Slide 186: Growing today and prepared for tomorrow with our accelerated businesses
WHY THE CIGNA GROUP We are growing today and prepared for 3 tomorrow with our accelerated businesses Specialty Care Services • ~$400B market today, • ~$400B addressable market will more than double • Focused on high-growth over the next decade care segments • Capabilities extremely • Expanding Evern
Slide 187: Enterprise adjusted income growth algorithm
WHY THE CIGNA GROUP Enterprise adjusted income growth algorithm Pharmacy Benefit Services ~40% OF ADJ. INCOME 7–10% GROWTH ~30% OF ADJ. INCOME 2–4% GROWTH Specialty and Care Services ~30% OF ADJ. INCOME 8–12% GROWTH Confidential, unpublished property of The Cigna Group. Do not duplicate or distribut
Slide 188: Strong shareholder value
WHY THE CIGNA GROUP Strong shareholder value 2024 ADJUSTED EPS AT LEAST $28.25 LONG-TERM AVERAGE ANNUAL ADJUSTED EPS GROWTH 10–14% Building on our record of 13%+ average annual EPS growth over past decade PLUS AN ATTRACTIVE DIVIDEND 1–2% CASH FLOW OVER THE NEXT FIVE YEARS ~$60B Capital-light framewo
Slide 189: Thank You
Thank You Confidential, unpublished property of The Cigna Group. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2024 The Cigna Group
Slide 190: Definitions of key financial and business terms
Definitions of key financial and business terms Medical care ratio represents medical costs as a percentage of premiums for all Cigna Healthcare risk products provided through guaranteed cost or experience-rated funding arrangements. Adjusted SG&A expense ratio represents enterprise selling, general
Slide 191: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures Shareholders’ net income and diluted earnings per share Year Ended December 31 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Shareholders’ net income (loss) $17.39 $21.41 $15.75 $22.96 $13.44 $10.54 $8.77 $7.19 $8.04 $7.83 $5.18 Adjustme
Slide 192: Reconciliation of GAAP to non-GAAP financial measures
Reconciliation of GAAP to non-GAAP financial measures Adjusted Revenues Year Ended December 31 2023 Total Revenues $195,265 Net realized investment results from certain equity method investments $57 Adjusted Revenues $195,322 Confidential, unpublished property of The Cigna Group. Do not duplicate or