Company: CI
Filing Date: 2025-01-16
Form Type: CORRESP
Source: 0001739940-25-000005
Chunk: 4

Company: Cigna Group
Filing Date: 2025-01-16
Form: CORRESP
Chunk 4
---
 at the reportable segment level largely due to the operating segments' similar products and customer base, as described above.

• As noted by management during our 2024 Investor Day and on our 2024 Q2 earnings call, we have deliberately built a balanced portfolio across the Evernorth platform. About half of Evernorth's pre-tax adjusted income from operations is comprised of our pharmacy benefits capabilities and about half is specialty and care services. With respect to Evernorth's growth opportunities, Evernorth serves a balanced portfolio of clients, including employers, health plans, health systems, and pharmacy benefits organizations. Evernorth's go-to-market strategy is to market the full suite of pharmacy benefit solutions, including products and services from both operating segments. This strategy is further supported by the significant growth in the Specialty and Care Services business that has been driven in part by our Pharmacy Benefits Services clients electing to use Evernorth's specialty and care capabilities.

• In line with the factors outlined above, in our 2024 Investor Day presentation, the key differentiators mentioned for both the Pharmacy Benefit Services and Specialty and Care Services operating segments were clinical expertise as well as supply chain strategy initiatives such as owned operational assets and capabilities and supply chain excellence.

As outlined above, the users of our financial statements and other materials regularly view our Evernorth operations as one reportable segment. We note there are differences between the operating segments that we do discuss in certain external contexts, such as the differing earnings growth rates. ASC 280-10-55-7C indicates that "evaluating similar economic characteristics is a matter of judgement that depends on specific facts and circumstances." In assessing the criteria for aggregation as noted in our previous response to the Staff, we believe that the similar margins along with the structure, nature and manner in which these businesses operate indicate that these businesses are fundamentally similar. Management concluded that aggregating the Pharmacy Benefits Services and Specialty and Care Services operating segments into a reportable segment was consistent with the objectives and basic principles of ASC 280 as well the operating segments' economic and other qualitative similarities indicated in ASC 280-10-50-11.

<div align='center'>3</div>

#### Operating Segment Pre-Tax Margin
Pre-tax margin is a key metric used by our chief operating decision maker in assessing each operating segment's performance and is calculated as pre-tax adjusted income from operations divided by total adjusted revenues. Actual historical margins for the Pharmacy Benefits Services and Specialty and Care Services operating segments for the periods presented in the 2023 Form 10-K and Form 10-Q