The Cigna Group · NYSE:CI
The Cigna — Cigna — Investor Presentation (May 2016)
25 slides from The Cigna's investor presentation, May 2016
Slide 1: Cigna Global Supplemental Benefits
CIGNA GLOBAL SUPPLEMENTAL BENEFITS © 2016 Cigna 1
Slide 2: Forward looking statements and non-GAAP measures
Forward looking statements and non-GAAP measures CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This presentation, and oral statements made with respect to information contained in this release, may contain forward-looking st
Slide 3: Important information for investors
Important information for investors NO OFFER OR SOLICITATION This communication is neither an offer to buy, nor a solicitation of an offer to sell, subscribe for or buy any securities or the solicitation of any vote or approval in any jurisdiction pursuant to or in connection with the proposed trans
Slide 4: Table of contents
Table of contents Global Supplemental Benefits Strategy Business Overview Market dynamics and core capabilities Market specifics Competitive environment © 2016 Cigna 4
Slide 5: Alignment with enterprise strategy
Alignment with enterprise strategy Go Go Go Deep Global Individual Strategic Affordability imperatives Personalization Enablers Insights Brand Localization Talent Value-based solutions focused on meeting customer needs © 2016 Cigna 5
Slide 6: Business overview
Business overview Serving 10 million individual customer relationships through a wide range of innovative and easy-to-access solutions to help improve their health, well-being and sense of security. China • Hong Kong • India • Indonesia • Korea • New Zealand • Taiwan • Thailand • Turkey • U.K. • U.S
Slide 7: Strong growth and performance over a multi year period
Strong growth and performance over a multi year period Revenue Earnings* (in $ millions) (in $ millions) 19% CAGR 26% CAGR Top and bottom line growth rates well exceed average of primary competitors^ *Adjusted income from operations ^Primary competitors include ACE, AEGON, AIA, Allianz, AXA, BUPA, M
Slide 8: Broad portfolio of products and distribution channels
Broad portfolio of products and distribution channels 2015 Sales by Product 2015 Sales by Distribution Channel Private Medical Term Life, 3% Credit, 3% Insurance, 4% Direct to Consumer, 21% VUL, 5% Med Supp, 9% Bancassurance, 42% Accident & Health, 39% Travel, 10% Affinity, 37% Protection & Savings,
Slide 9: How we win
How we win Leveraging deep consumer insights to drive product innovation Meeting the rapidly growing demand for health protection needs Targeting the growing middle class and seniors populations globally Leading innovative, direct to consumer distribution capabilities (over 150 affinity part
Slide 10: Market dynamics
Market dynamics Spending by the Asian middle class estimated to potentially rise 9% Growing Middle annually through 2030, driven by growth in China, India and Indonesia1 Class Growing awareness of health and well being and growing trend of non communicable diseases (diabetes, cancer) Health coverage
Slide 11: Our core capabilities are tailored to local markets
Our core capabilities are tailored to local markets Distribution and Deep Consumer Tailored Product Service Insights Innovation Capabilities Ability to leverage best-in- Leverage customer insights Understanding customer class, multi-channel and patented analytics needs through focused distribution c
Slide 12: Direct marketing and partnership capabilities
Direct marketing and partnership capabilities Globally, Cigna is a leader in direct marketing and providing leading health, life protection, accident and medical solutions We have a long history of working in partnership with other businesses including multinational and local banks, credit card comp
Slide 13: Customer value management and tailored product innovation
Customer value management and tailored product innovation Affinity Customer Access Partner Prior Experience and Relationships Other Distribution Opportunities Right Customer Right Product Deep Customer Insights CVM Analytics Right Time Segmentation Innovative Insurance Solutions CVM model is replica
Slide 14: A portfolio approach to growth
A portfolio approach to growth Market Development Progression Phase 4 Products and Distribution Korea Phase 3 Diverse and sophisticated product-set China Broad set of established Phase 2 distribution channels – Life, A&H, private medical affinity, home-shopping, bancassurance, agency… Thailand Multi
Slide 15: Global Supplemental Benefits markets: Korea
Global Supplemental Benefits markets Korea Est. in 1987, the first foreign life insurer to enter Korea Approximately 50% of Global Supplemental Benefits revenues Expect mid teens growth in a low single digit growth market Total policy count: 5.5M Key Products: Personal Accident, Cancer,
Slide 16: Global Supplemental Benefits markets: United States, China
Global Supplemental Benefits markets United States Est. in 2012 with the purchase of Great American Supplemental Benefits Total policy count: 400K Key Products: Medicare Supplement, Critical Illness Primary Distribution: Primarily Broker, Some Direct to Consumer China Est. in 2003 as a 5
Slide 17: Global Supplemental Benefits markets: Taiwan, United Kingdom
Global Supplemental Benefits markets Taiwan Est. in 1989 / growth driven by strong affinity relationships (e.g. Watsons, Citi, ANZ) Total policy count: 700K Key Products: Personal Accident, Cancer, Critical Illness, Dementia, Hospital Income, Surgical, Term Life, Whole Life, VUL, Dental and
Slide 18: Global Supplemental Benefits markets: Turkey, Hong Kong
Global Supplemental Benefits markets Turkey Began 51% share JV partnership with Finansbank, 5th largest private retail bank in Turkey, in 2012 Total policy count: 1.7M Key Products: Credit Life, Personal Accident, Cancer, Critical Illness, Dental and Vision, and Pension Primary Distributio
Slide 19: Global Supplemental Benefits markets: Thailand, Indonesia
Global Supplemental Benefits markets Thailand Est. in 2006 / market has traditionally been a life insurance market distributed by brokers Total policy count: 600K Key Products: Personal Accident, Cancer, Critical Illness, Hospital Income, Dental and Vision Primary Distribution: Affinity /
Slide 20: Global Supplemental Benefits markets: New Zealand, India
Global Supplemental Benefits markets New Zealand Market is aging and beginning to shift from life & accident to health related products Total policy count: 300K Key Products: Personal Accident, Critical Illness, Term Life, Credit Life, and Travel Primary Distribution: Direct marketing and
Slide 21: Global Individual Private Medical Insurance
Global Supplemental Benefits markets Global Individual Private Medical Insurance Established in 2011 with 7 Global sites across the United States, European Union, and Asia Pacific Total policy count: 14K Key Products: Global health insurance Primary Distribution: Affinity, Broker and Direc
Slide 22: Cigna faces a mix of local and global competitors in Asia
Cigna faces a mix of local and global competitors in Asia China Korea Hong Kong AIA ACE AIA AXA AIA AXA China Life Kyobo BUPA Manulife MetLife Manulife Ping An Samsung Life Prudential UK India Taiwan Apollo Munich ACE BUPA AIA New India Assurance Allianz R
Slide 23: Top priorities for our future growth
Top priorities for our future growth • Continued focus on core direct marketing distribution with ongoing Ongoing improvements to segmentation, product development and upsell momentum in opportunities Korea • Test new direct to consumer techniques to diversify distribution • Leverage China Merchants
Slide 24: Investor considerations
Investor considerations Deep customer insights Drives Differentiated distribution capabilities mid teens Competitively top line and attractive long CVM analytics bottom line term outlook growth over Innovative product solutions that fill health gaps the long term Locally licensed and managed by loca
Slide 25: Offered by Connecticut General Life Insurance Company or Cigna Health and Life
Offered by: Connecticut General Life Insurance Company or Cigna Health and Life Insurance Company. “Cigna” and the “Tree of Life” logo are registered service marks, and “Together, all the way.” is a service mark, of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its ope