Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 178

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part II, Item 7
Chunk 178
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 existing clients and customers, including solutions provided by Evernorth Health Services.

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

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•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.

Results of Operations

Financial SummaryThree Months EndedSeptember 30,ChangeNine Months EndedSeptember 30,Change(Dollars in millions)2025202420252024Adjusted revenues (1)$10,755 $13,163 (18)%$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