Company: CI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739940-25-000028
Chunk: 235

Company: Cigna Group
Filing Date: 2025-07-31
Form: 10-Q
Item: Part II, Item 15
Chunk 235
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 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.

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Results of Operations

Financial SummaryThree Months EndedJune 30,ChangeSix Months EndedJune 30,Change(Dollars in millions)2025202420252024Adjusted revenues (1)$10,754 $13,143 (18)%$25,236 $26,420 (4)%Pre-tax adjusted income from operations (1)$1,094 $1,204 (9)%$2,381 $2,544 (6)%Pre-tax margin (1)(2)10.2 %9.2 %100 bps9.4 %9.6 %(20)bpsMedical care ratio83.2 %82.3 %90 bps82.6 %81.1 %150 bpsSG&A expense ratio (3)20.3 %20.0 %30 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 Six Months Ended June 30, 2025 versus Three and Six Months Ended June 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 $2,389 million, and 4%, or $1,184 million, primarily due to the impact of the HCSC transaction (-$3,137 million and -$2,527 million, respectively), partially offset by higher premiums within employer insured (+$334 million and +$629 million, respectively) and stop loss (+$214 million and +$414 million, respectively), primarily reflecting premium rate increases to cover expected increases in underlying medical costs across those businesses.

Pre-tax adjusted income from operations decreased 9%,