Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 123

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 123
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$35,991 $39,583 (9)%Pre-tax adjusted income from operations (1)$1,038 $1,174 (12)%$3,419 $3,718 (8)%Pre-tax margin (1)(2)9.7 %8.9 %80 bps9.5 %9.4 %10 bpsMedical care ratio84.8 %82.8 %200 bps83.3 %81.7 %160 bpsSG&A expense ratio (3)19.9 %20.0 %(10)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 Nine Months Ended September 30, 2025 versus Three and Nine Months Ended September 30, 2024

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

Adjusted revenues decreased 18%, or $2,408 million, and 9%, or $3,592 million, primarily due to the impact of the HCSC transaction (-$2,998 million and -$5,524 million, respectively), partially offset by higher premiums within employer insured (+$323 million and  +$952 million, respectively) and stop loss (+$219 million and +$633 million, respectively), primarily reflecting premium rate increases.

Pre-tax adjusted income from operations decreased 12%, or $136 million, and 8%, or $299 million, primarily due to a higher MCR.

The medical care ratio increased 200 bps for the three months ended, primarily due to relatively equal contributions from our Individual and Family Plans business and higher expected stop loss medical costs. The medical care ratio increased 160 bps for the nine months ended, primarily due to higher expected stop loss medical costs.

The SG&A expense ratio decreased 10 bps and 40 bps, primarily due to revenue growth outpacing volume-related expenses within the ongoing businesses (-60 bps and -50 bps,