Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 167

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part II, Item 7
Chunk 167
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Includes Net investment gains/losses as presented in our Consolidated Statements of Income, as well as the Company's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting, which are presented within Fees and other revenues in our Consolidated Statements of Income.

For further analysis and explanation of each segment's results, see the "Segment Reporting" section in this MD&A. 

Commentary: Three and Nine Months Ended September 30, 2025 versus Three and Nine Months Ended September 30, 2024

The commentary presented below, and the segment commentaries that follow, compare results for the three and nine months ended September 30, 2025 with results for the 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.

Shareholders' net income for the three and nine months ended increased 153% and 135%, primarily reflecting the absence of the impairment of VillageMD equity securities that was recorded in 2024.

Adjusted income from operations. See discussion of segment results in the "Segment Reporting" section. 

Medical customers decreased 5%, primarily reflecting the closing of the HCSC transaction (defined below) in the three months ended March 31, 2025.

Pharmacy revenues increased 16% and 17%, primarily reflecting higher utilization of prescription drugs from customer growth in Evernorth Health Services.

Premiums decreased 21% and 10%, primarily driven by the impact of the HCSC transaction (-25% and -15%, respectively), partially offset by higher premium rates within our ongoing U.S. Healthcare businesses (+4% in both periods).

Fees and other revenues increased 13% and 14%, primarily reflecting growth in affordability services (defined in the "Segment Reporting" section) within our Pharmacy Benefit Services operating segment.

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Net investment income increased 174% and 2%, primarily due to the absence of the $182 million impairment of the dividend receivable in the third quarter of 2024 related to VillageMD accrued dividends. For the nine months ended, this impact was offset by lower average assets, due in part to the impact of the HCSC transaction.

Pharmacy and other service costs increased 17% and 18%, primarily reflecting higher utilization of prescription drugs from customer growth in Evernorth Health Services.

Medical costs and other benefit expenses decreased 18% and 8%, primarily driven by the impact of the