Company: CI
Filing Date: 2025-01-16
Form Type: CORRESP
Source: 0001739940-25-000005
Chunk: 9

Company: Cigna Group
Filing Date: 2025-01-16
Form: CORRESP
Chunk 9
---
 assists in their understanding of the key drivers of our segments' financial performance. This ratio, which we will be renaming "SG&A expense ratio" commencing with our next Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (the “2024 Form 10-K”), is calculated as the applicable segment's selling, general and administrative expenses divided by the segment's adjusted revenues. No adjustments are made to the numerator (selling, general and administrative expenses) that contribute to the determination of our ASC 280 measure of segment performance, pre-tax adjusted income (loss) from operations. Because each of the numerator and denominator comprising this ratio are calculated using amounts that have been determined and presented in accordance with GAAP, the Company respectfully submits it does not constitute a non-GAAP financial measure under Item 10(e) of Regulation S-K.

In further response to the Staff's comment, beginning in our 2024 Form 10-K, as shown below we will modify the presentation in our MD&A of this metric. For illustrative purposes, we have presented the reported figures for Evernorth Health Services for three months ended September 30, 2024 and 2023 as they are proposed to be modified in our forthcoming 2024 Form 10-K.

| Financial Summary                          | (Dollars in millions) | Three Months Ended September 30, |     |   |   2024 |     |   |   2023 |     |     | Change |     |     |
|:-------------------------------------------|:----------------------|:---------------------------------|:----|:--|-------:|:----|:--|-------:|:----|:----|-------:|:----|:----|
| Adjusted revenues(1)                       |                       |                                  |     | $ | 52,637 |     | $ | 38,596 |     |     |     36 |     | %   |
| Pre-tax adjusted income from operations(1) |                       |                                  |     | $ |  1,876 |     | $ |  1,716 |     |     |      9 |     | %   |
| Pre-tax margin(1)(2)                       |                       |                                  |     |   |    3.6 |     |   |    4.4 |     |     |    -80 |     | bps |
| SG&A expense ratio(3)                      |                       |                                  |     |