Company: CI
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001739940-25-000009
Chunk: 490

Company: Cigna Group
Filing Date: 2025-02-27
Form: 10-K
Item: Item 5
Chunk 490
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 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.

Results of Operations

Financial SummaryFor the Years Ended December 31,ChangeChange(Dollars in millions)2024202320222024 vs. 20232023 vs. 2022Adjusted revenues (1)$52,914 $51,205 $45,037 $1,709 3 %$6,168 14 %Pre-tax adjusted income from operations (1)$4,229 $4,478 $4,099 $(249)(6)%$379 9 %Pre-tax margin (1)(2)8.0 %8.7 %9.1 %(70)bps(40)bpsMedical care ratio83.2 %81.3 %81.7 %190 bps(40)bpsSG&A expense ratio (3)20.4 %21.6 %21.8 %(120)bps(20)bps

(1)See Note 22 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 22 to the Consolidated Financial Statements for further details.

50

2024 versus 2023

Commentary regarding percentage changes (or bps) and dollar variances represents the driver's impact on the overall category.

Adjusted revenues increased 3%, or $1,709 million, primarily due to higher premiums within employer insured (+$1,086 million), stop loss (+$601 million) and Medicare Part D (+$595 million), reflecting premium rate increases across those businesses, partially offset by lower premiums within IFP (-$1,137 million), reflecting a decrease in customers.

Pre-tax adjusted income from operations decreased 6%, or $249 million, primarily due to higher medical costs (-$2,209 million), partially offset by higher adjusted revenues (+$1,709 million) and lower SG&A expenses (+$250 million), primarily reflecting ongoing efficiencies. The impact of higher premiums in adjusted revenues and medical costs are reflected in the medical care ratio calculation.