Company: CI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739940-25-000028
Chunk: 116

Company: Cigna Group
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 116
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, and increased fee revenue from the expansion of products and services to existing clients and customers, including solutions provided by Evernorth Health Services.

•Higher medical costs (also referred to as higher medical cost trend) is impacted by utilization (the quantity of medical services consumed by our customers), unit costs (the cost per medical service) and mix of services. 

•Prior to the divestiture of our Medicare Advantage and related businesses to HCSC, the percentage of Medicare Advantage customers in bonus-eligible plans impacted the amount of quality bonus payments we receive. 

•MCR represents medical costs as a percentage of premiums for our segment's insured businesses, and it is impacted by medical cost trend and premium rates. Affordability initiatives that serve to mitigate medical cost inflation also impact the MCR. 

•The SG&A expense ratio represents the segment's selling, general and administrative expenses divided by adjusted revenues.

42

Results of Operations

Financial SummaryThree Months EndedJune 30,ChangeSix Months EndedJune 30,Change(Dollars in millions)2025202420252024Adjusted revenues (1)$10,754 $13,143 (18)%$25,236 $26,420 (4)%Pre-tax adjusted income from operations (1)$1,094 $1,204 (9)%$2,381 $2,544 (6)%Pre-tax margin (1)(2)10.2 %9.2 %100 bps9.4 %9.6 %(20)bpsMedical care ratio83.2 %82.3 %90 bps82.6 %81.1 %150 bpsSG&A expense ratio (3)20.3 %20.0 %30 bps19.8 %20.2 %(40)bps

(1)See Note 17 to the Consolidated Financial Statements for reconciliation of adjusted revenues and pre-tax adjusted income from operations to Total revenues and Income before income taxes, respectively. 

(2)Pre-tax margin is calculated as pre-tax adjusted income from operations divided by adjusted revenues.

(3)SG&A expense ratio is calculated as segment selling, general and administrative expenses divided by adjusted revenues. See Note 17 to the Consolidated Financial Statements for further details.

Three and Six Months Ended June 30, 2025 versus Three and Six Months Ended June 30, 2024

Commentary regarding percentage changes (or bps) and dollar variances represents the