Company: CI
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001739940-25-000021
Chunk: 271

Company: Cigna Group
Filing Date: 2025-05-02
Form: 10-Q
Item: Part II, Item 15
Chunk 271
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%230 bpsSG&A expense ratio (3)19.4 %20.5 %(110)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 Months Ended March 31, 2025 versus Three Months Ended March 31, 2024

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

Adjusted revenues increased 9%, or $1,205 million, primarily due to higher premiums within Medicare Part D (+$573 million), employer insured (+$295 million) and stop loss (+$200 million), reflecting premium rate increases to cover expected increases in underlying medical costs across those businesses.

Pre-tax adjusted income from operations decreased 4%, or $53 million, primarily due to a higher MCR (-$285 million), partially offset by a lower SG&A expense ratio (+$160 million). 

The medical care ratio increased 230 bps, primarily due to higher medical costs, driven primarily by stop loss.

The SG&A expense ratio decreased 110 bps, primarily due to revenue growth outpacing volume-related expenses.

Medical Customers

Medical customers include individuals who meet any of the following criteria: are covered under a medical insurance policy, managed care arrangement, or administrative services agreement issued by Cigna Healthcare; have access to Cigna Healthcare's provider network for covered services under their medical plan; or have medical claims that are administered by Cigna Healthcare.

Cigna Healthcare Medical CustomersAs of March 31,(In thousands)20252024ChangeU.S. Healthcare2,645 3,947 (33)%International Health (1)1,227 1,189 3 Insured3,872 5,136 (25)%U.S. Healthcare13,719 13,615 1 International Health (1)452 433 4 Administrative services only14,171 14,048 1 Total18,043 19,184 (6)%

(1)International Health excludes medical customers served by less than 100%-owned subsidiaries, as