Cigna Group 10-Q

Item 1. FINANCIAL STATEMENTS The Cigna Group Consolidated Statements of Income Unaudited Unaudited Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share amounts) 2025 2024 2025 2024 Revenues Pharmacy revenues $ 53,649 $ 45,101 $ 102,282 $ 87,137 Premiums 9,156 11,454 21,892 23,057 Fees and other revenues 4,137 3,647 8,032 6,973 Net investment income 236 321 474 611 TOTAL REVENUES 67,178 60,523 132,680 117,778 Benefits and expenses Pharmacy and other service costs 53,268 44,492 101,666 85,923 Medical costs and other benefit expenses 7,749 9,515 18,247 18,955 Selling, general and administrative expenses 3,433 3,684 7,646 7,389 Amortization of acquired intangible assets 422 420 844 843 TOTAL BENEFITS AND EXPENSES 64,872 58,111 128,403 113,110 Income from operations 2,306 2,412 4,277 4,668 Interest expense and other ( 337 ) ( 375 ) ( 699 ) ( 697 ) Gain (loss) on sale of businesses — — 41 ( 19 ) Net investment gains (losses) 52 ( 48 ) 50 ( 1,884 ) Income before income taxes 2,021 1,989 3,669 2,068 TOTAL INCOME TAXES 389 360 628 651 Net income 1,632 1,629 3,041 1,417 Less: Net income attributable to noncontrolling interests 100 81 186 146 SHAREHOLDERS' NET INCOME $ 1,532 $ 1,548 $ 2,855 $ 1,271 Shareholders' net income per share Basic $ 5.76 $ 5.51 $ 10.63 $ 4.48 Diluted $ 5.71 $ 5.45 $ 10.55 $ 4.43 The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements. 3 The Cigna Group Consolidated Statements of Comprehensive Income Unaudited Unaudited Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Net income $ 1,632 $ 1,629 $ 3,041 $ 1,417 Other comprehensive income (loss), net of tax Net unrealized appreciation on securities and derivatives 321 108 221 229 Net long-duration insurance and contractholder liabilities measurement adjustments ( 609 ) ( 212 ) ( 777 ) ( 772 ) Net translation gains (losses) on foreign currencies 65 ( 5 ) 78 ( 31 ) Postretirement benefits liability adjustment ( 3 ) ( 9 ) 3 ( 4 ) Other comprehensive loss, net of tax ( 226 ) ( 118 ) ( 475 ) ( 578 ) Total comprehensive income 1,406 1,511 2,566 839 Less: Net income attributable to noncontrolling interests 100 81 186 146 SHAREHOLDERS' COMPREHENSIVE INCOME $ 1,306 $ 1,430 $ 2,380 $ 693 The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements. 4 The Cigna Group Consolidated Balance Sheets Unaudited As of June 30, As of December 31, (In millions) 2025 2024 Assets Cash and cash equivalents $ 4,329 $ 7,550 Investments 813 665 Accounts receivable, net 31,148 24,227 Inventories 5,967 6,692 Other current assets 2,466 2,732 Assets of businesses held for sale — 7,004 Total current assets 44,723 48,870 Long-term investments 15,662 15,128 Reinsurance recoverables 4,297 4,378 Property and equipment 3,621 3,654 Goodwill 44,375 44,370 Other intangible assets 28,671 29,417 Other assets 2,929 2,786 Separate account assets 7,373 7,278 TOTAL ASSETS $ 151,651 $ 155,881 Liabilities Current insurance and contractholder liabilities $ 6,015 $ 5,388 Pharmacy and other service costs payable 29,460 28,465 Accounts payable 9,938 9,294 Accrued expenses and other liabilities 7,078 9,387 Short-term debt 4,288 3,035 Liabilities of businesses held for sale — 2,410 Total current liabilities 56,779 57,979 Non-current insurance and contractholder liabilities 10,157 10,254 Deferred tax liabilities, net 6,781 6,975 Other non-current liabilities 3,651 3,215 Long-term debt 26,480 28,937 Separate account liabilities 7,373 7,278 TOTAL LIABILITIES 111,221 114,638 Contingencies — Note 16 Shareholders' equity Common stock (1) 4 4 Additional paid-in capital 31,588 31,288 Accumulated other comprehensive loss ( 2,816 ) ( 2,341 ) Retained earnings 45,564 43,519 Less: Treasury stock, at cost ( 34,126 ) ( 31,437 ) TOTAL SHAREHOLDERS' EQUITY 40,214 41,033 Noncontrolling interests 216 210 Total equity 40,430 41,243 Total liabilities and equity $ 151,651 $ 155,881 (1) Par value per share, $ 0.01 ; shares issued, 404 million as of June 30, 2025 and 403 million as of December 31, 2024; authorized shares, 600 million. The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements. 5 The Cigna Group Consolidated Statements of Changes in Total Equity Unaudited Three Months Ended June 30, 2025 (In millions) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Retained Earnings Treasury Stock Shareholders' Equity Noncontrolling Interests Total Equity Redeemable Noncontrolling Interests Balance at March 31, 2025 $ 4 $ 31,443 $ ( 2,590 ) $ 44,434 $ ( 33,065 ) $ 40,226 $ 188 $ 40,414 $ — Effects of issuing stock for employee benefit plans 145 ( 1 ) 144 144 Other comprehensive loss ( 226 ) ( 226 ) ( 226 ) — Net income 1,532 1,532 100 1,632 — Common dividends declared (per share: $ 1.51 ) ( 402 ) ( 402 ) ( 402 ) Repurchase of common stock — ( 1,060 ) ( 1,060 ) ( 1,060 ) Other transactions impacting noncontrolling interests — — ( 72 ) ( 72 ) — Balance at June 30, 2025 $ 4 $ 31,588 $ ( 2,816 ) $ 45,564 $ ( 34,126 ) $ 40,214 $ 216 $ 40,430 $ — Three Months Ended June 30, 2024 (In millions) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Retained Earnings Treasury Stock Shareholders' Equity Noncontrolling Interests Total Equity Redeemable Noncontrolling Interests Balance at March 31, 2024 $ 4 $ 30,292 $ ( 2,324 ) $ 40,978 $ ( 27,769 ) $ 41,181 $ 169 $ 41,350 $ — Effect of issuing stock for employee benefit plans 116 ( 1 ) 115 115 Other comprehensive loss ( 118 ) ( 118 ) ( 118 ) — Net income 1,548 1,548 81 1,629 — Common dividends declared (per share: $ 1.40 ) ( 394 ) ( 394 ) ( 394 ) Repurchase of common stock 640 ( 1,640 ) ( 1,000 ) ( 1,000 ) Other transactions impacting noncontrolling interests — — ( 55 ) ( 55 ) — Balance at June 30, 2024 $ 4 $ 31,048 $ ( 2,442 ) $ 42,132 $ ( 29,410 ) $ 41,332 $ 195 $ 41,527 $ — The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements. 6 The Cigna Group Consolidated Statements of Changes in Total Equity Unaudited Six Months Ended June 30, 2025 (In millions) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Retained Earnings Treasury Stock Shareholders' Equity Other Non- controlling Interests Total Equity Redeemable Noncontrolling Interests Balance at December 31, 2024 $ 4 $ 31,288 $ ( 2,341 ) $ 43,519 $ ( 31,437 ) $ 41,033 $ 210 $ 41,243 $ — Effect of issuing stock for employee benefit plans 300 ( 108 ) 192 192 Other comprehensive loss ( 475 ) ( 475 ) ( 475 ) — Net income 2,855 2,855 186 3,041 — Common dividends declared (per share: $ 3.02 ) ( 810 ) ( 810 ) ( 810 ) Repurchase of common stock — ( 2,581 ) ( 2,581 ) ( 2,581 ) Other transactions impacting noncontrolling interests — — ( 180 ) ( 180 ) — Balance at June 30, 2025 $ 4 $ 31,588 $ ( 2,816 ) $ 45,564 $ ( 34,126 ) $ 40,214 $ 216 $ 40,430 $ — Six Months Ended June 30, 2024 (In millions) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Retained Earnings Treasury Stock Shareholders' Equity Other Non- controlling Interests Total Equity Redeemable Noncontrolling Interests Balance at December 31, 2023 $ 4 $ 30,669 $ ( 1,864 ) $ 41,652 $ ( 24,238 ) $ 46,223 $ 21 $ 46,244 $ 107 Effect of issuing stock for employee benefit plans 379 ( 115 ) 264 264 Other comprehensive loss ( 578 ) ( 578 ) ( 578 ) — Net income 1,271 1,271 146 1,417 — Common dividends declared (per share: $ 2.80 ) ( 791 ) ( 791 ) ( 791 ) Repurchase of common stock — ( 5,057 ) ( 5,057 ) ( 5,057 ) Other transactions impacting noncontrolling interests — — 28 28 ( 107 ) Balance at June 30, 2024 $ 4 $ 31,048 $ ( 2,442 ) $ 42,132 $ ( 29,410 ) $ 41,332 $ 195 $ 41,527 $ — The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements. 7 The Cigna Group Consolidated Statements of Cash Flows Unaudited Six Months Ended June 30, (In millions) 2025 2024 Cash Flows from Operating Activities Net income $ 3,041 $ 1,417 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,356 1,479 Investment (gains) losses, net ( 50 ) 1,884 Deferred income tax benefit ( 292 ) ( 199 ) (Gain) loss on sale of businesses ( 41 ) 19 Net changes in assets and liabilities, net of non-operating effects: Accounts receivable, net ( 6,398 ) ( 7,313 ) Inventories 726 472 Reinsurance recoverable and Other assets ( 402 ) ( 559 ) Insurance liabilities 1,702 ( 125 ) Pharmacy and other service costs payable 995 7,820 Accounts payable and Accrued expenses and other liabilities ( 1,020 ) ( 15 ) Other, net 417 225 NET CASH PROVIDED BY OPERATING ACTIVITIES 34 5,105 Cash Flows from Investing Activities Proceeds from investments sold: Debt securities and equity securities 272 393 Investment maturities and repayments: Debt securities and equity securities 553 414 Commercial mortgage loans 90 37 Other sales, maturities and repayments (primarily short-term and other long-term investments) 431 451 Investments purchased or originated: Debt securities and equity securities ( 1,512 ) ( 493 ) Commercial mortgage loans ( 62 ) ( 52 ) Other (primarily short-term and other long-term investments) ( 761 ) ( 865 ) Property and equipment purchases, net ( 612 ) ( 670 ) Divestitures, net of cash sold 2,346 — Renewable energy tax credit equity investments ( 327 ) ( 335 ) Other, net ( 18 ) ( 15 ) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 400 ( 1,135 ) Cash Flows from Financing Activities Deposits and interest credited to contractholder deposit funds 74 84 Withdrawals and benefit payments from contractholder deposit funds ( 137 ) ( 135 ) Net change in short-term debt 296 ( 467 ) Repayment of long-term debt ( 1,600 ) ( 3,000 ) Net proceeds on issuance of long-term debt — 4,462 Repurchase of common stock ( 2,620 ) ( 5,012 ) Issuance of common stock 141 221 Common stock dividend paid ( 813 ) ( 793 ) Other, net ( 355 ) ( 198 ) NET CASH USED IN FINANCING ACTIVITIES ( 5,014 ) ( 4,838 ) Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 35 ( 12 ) Net decrease in cash, cash equivalents and restricted cash ( 4,545 ) ( 880 ) Cash, cash equivalents and restricted cash January 1, (1) 8,931 8,337 Cash, cash equivalents and restricted cash June 30, (1) 4,386 7,457 Cash and cash equivalents reclassified to assets of businesses held for sale — ( 625 ) Cash, cash equivalents and restricted cash June 30, per Consolidated Balance Sheets (1) $ 4,386 $ 6,832 Supplemental Disclosure of Cash Information: Income taxes paid, net of refunds $ 350 $ 567 Interest paid $ 680 $ 643 (1) Restricted cash and cash equivalents were reported in other long-term investments. The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements . 8 THE CIGNA GROUP NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) TABLE OF CONTENTS Note Number Footnote Page B USINESS AND C APITAL S TRUCTURE 1 Description of Business 10 2 Summary of Significant Accounting Policies 10 3 Accounts Receivable, Net 11 4 Supplier Finance Program 11 5 Divestiture 12 6 Earnings Per Share 12 7 Debt 13 8 Common and Preferred Stock 14 I NSURANCE I NFORMATION 9 Insurance and Contractholder Liabilities 14 10 Reinsurance 17 I NVESTMENTS 11 Investments 18 12 Fair Value Measurements 21 13 Accumulated Other Comprehensive Income (Loss) 24 W ORKFORCE M ANAGEMENT AND C OMPENSATION 14 Strategic Optimization Program 25 C OMPLIANCE , R EGULATION AND C ONTINGENCIES 15 Income Taxes 26 16 Contingencies and Other Matters 26 R ESULTS D ETAILS 17 Segment Information 27 9 Note 1 – Description of Business The Cigna Group ® , together with its subsidiaries (either individually or collectively referred to as the "Company," "we," "us" or "our"), is a global health company committed to creating a better future for every individual and every community. We relentlessly challenge ourselves to partner and innovate solutions for better health. Powered by our people and our brands, we advance our mission to improve the health and vitality of those we serve. Our subsidiaries offer a differentiated set of pharmacy, medical, behavioral, dental, and related products and services. The majority of these products and services are offered through employers and other entities, such as governmental and nongovernmental organizations, unions and associations. Cigna Healthcare ® also offers health and dental insurance products to individuals in the United States and select international markets. In addition to these operations, The Cigna Group also has certain run-off operations. A full description of our segments follows: The Evernorth ® Health Services reportable segment includes the Pharmacy Benefit Services and the Specialty and Care Services operating segments, which provide independent and coordinated health solutions and capabilities to enable the health care system to work better and help people live healthier lives. Pharmacy Benefit Services drives high-quality, cost-effective pharmacy care through various services, such as drug claim adjudication, retail pharmacy network administration, benefit design consultation, drug utilization review, drug formulary management and access to our home delivery pharmacy. Specialty and Care Services provides specialty drugs for the treatment of complex and rare diseases, specialty distribution of pharmaceuticals and medical supplies, as well as clinical programs to help our clients drive better whole-person health outcomes through care services. The Cigna Healthcare reportable segment includes the U.S. Healthcare and International Health operating segments, which provide comprehensive medical and coordinated solutions to clients and customers. U.S. Healthcare provides medical plans and other benefits and solutions for insured and self-insured clients as well as individual health plans. International Health provides health care solutions in our international markets, as well as health care benefits for globally mobile individuals and employees of multinational organizations. U.S. Healthcare also included the Medicare Advantage and related businesses until the divestiture of such businesses to Health Care Services Corporation ("HCSC") on March 19, 2025 (see Note 5 to the Consolidated Financial Statements for further information). Other Operations comprises the remainder of our business operations, which includes certain continuing (corporate-owned life insurance ("COLI")), run-off and other non-strategic businesses. Our run-off businesses include the (i) variable annuity reinsurance business that was effectively exited through reinsurance with Berkshire Hathaway Life Insurance Company of Nebraska ("Berkshire") in 2013, (ii) settlement annuity business, and (iii) individual life insurance and annuity and retirement benefits businesses, which were sold through reinsurance agreements. Corporate reflects amounts not allocated to operating segments, including net interest expense (defined as interest on corporate financing less net investment income on investments not supporting segment and other operations), certain litigation matters, expense associated with our frozen pension plans, charitable contributions, operating severance, certain overhead and enterprise-wide project costs, and eliminations for products and services sold between segments. Note 2 – Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of The Cigna Group and its consolidated subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Certain amounts in the Consolidated Statements of Cash Flows have been reclassified to conform to current year presentation and did not have a significant impact on our Consolidated Financial Statements. Amounts recorded in the Consolidated Financial Statements necessarily reflect management's estimates and assumptions about medical costs, investment, tax and receivable valuations, interest rates, and other factors. Significant estimates are discussed throughout these Notes; however, actual results could differ from those estimates. The impact of a change in estimate is generally included in earnings in the period of adjustment. These interim Consolidated Financial Statements are unaudited but include all adjustments (including normal recurring adjustments) necessary, in the opinion of management, for a fair statement of financial position and results of operations for the periods reported. 10 The interim Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes included in the 2024 Annual Report on Form 10-K ("2024 Form 10-K"). The Company has not included certain footnote disclosures that would substantially duplicate the disclosures contained in its 2024 Form 10-K, unless the information in those disclosures materially changed or is required by GAAP. The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates. This and other factors, including the seasonal nature of portions of the health care and related benefits business, as well as competitive and other market conditions, call for caution in estimating full-year results based on interim results of operations. Recent Accounting Pronouncements The Company's 2024 Form 10-K includes discussion of significant recent accounting pronouncements that either have impacted or may impact our financial statements in the future. There are no updates on significant accounting pronouncements recently adopted or recently issued and not yet adopted that have occurred since the Company filed its 2024 Form 10-K. Note 3 – Accounts Receivable, Net The following amounts were included within Accounts receivable, net: (In millions) June 30, 2025 December 31, 2024 Noninsurance customer receivables $ 14,690 $ 11,879 Pharmaceutical manufacturers receivables 14,094 10,914 Insurance customer receivables 1,606 3,199 Other receivables 758 162 Total $ 26,154 Accounts receivable, net classified as assets of businesses held for sale ( 1,927 ) Total $ 31,148 $ 24,227 These accounts receivable are reported net of our allowances of $ 6.9 billion and $ 5.0 billion as of June 30, 2025 and December 31, 2024, respectively. These allowances include contractual allowances for certain rebates receivable with pharmaceutical manufacturers and certain accounts receivable from third-party payors, discounts and claims adjustments issued to customers in the form of client credits, an allowance for current expected credit losses, and other non-credit adjustments. The Company's allowance for current expected credit losses was $ 388 million as of June 30, 2025 and $ 84 million as of December 31, 2024. Accounts Receivable Factoring Facility The Company maintains an uncommitted factoring facility (the "Facility") with a total capacity of $ 1.5 billion under which certain accounts receivable may be sold on a non-recourse basis to a financial institution. The Facility began in July 2023 with an initial term of two years , followed by automatic one-year renewal terms unless terminated by either party. We sold manufacturer accounts receivable under the Facility of $ 1.3 billion for both the three months ended June 30, 2025 and 2024 and $ 2.7 billion and $ 3.2 billion for the six months ended June 30, 2025 and 2024, respectively. For the three and six months ended June 30, 2025 and 2024, factoring fees paid were not material. As of June 30, 2025, there were $ 1.0 billion of sold accounts receivable that have not been collected from manufacturers and have been removed from the Company's Consolidated Balance Sheets. As of December 31, 2024, all sold accounts receivable had been collected from manufacturers. As of June 30, 2025 and December 31, 2024, there were $ 297 million and $ 1.0 billion, respectively, of collections from manufacturers that have not been remitted to the financial institution. Such amounts are recorded within Accrued expenses and other liabilities in the Consolidated Balance Sheets. Note 4 – Supplier Finance Program The Company facilitates a voluntary supplier finance program (the "Program") that provides suppliers the opportunity to sell their accounts receivable due from us (i.e., our payment obligations to the suppliers) to a financial institution, on a non-recourse basis, in order to be paid earlier than our payment terms require. As of June 30, 2025 and December 31, 2024, $ 1.7 billion and $ 1.6 billion, respectively, of the Company's outstanding payment obligations were confirmed as valid within the Program by the financial institution and are reflected in Accounts payable in the Consolidated Balance Sheets. The amounts confirmed as valid for both periods are predominately associated with one supplier. 11 As of June 30, 2025, we have been informed by the financial institution that $ 763 million of the Company's outstanding payment obligations were voluntarily elected by suppliers to be sold to the financial institution under the Program. Note 5 – Divestiture On March 19, 2025, the Company completed the sale of our Medicare Advantage, Medicare Individual Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits, and CareAllies ® businesses (the "Disposal Group" or the "HCSC transaction"). The purchase price increased from $ 3.3 billion to $ 4.8 billion, subject to post-closing contractual adjustments, reflecting higher statutory surplus for the legal entities when conveyed to HCSC. The Company recognized a gain of $ 37 million pre-tax ($ 112 million after-tax) during the three months ended March 31, 2025 within Gain (loss) on sale of businesses in the Consolidated Statements of Income. The Company received $ 4.2 billion cash proceeds at closing. We expect receipt of the remaining $ 0.6 billion in the fourth quarter of 2025 upon HCSC's collection of amounts due from the Centers for Medicare and Medicaid Services ("CMS"). The Company determined that the Disposal Group met the criteria to be classified as held for sale and aggregated and classified the assets and liabilities as held for sale in our Consolidated Balance Sheets as of December 31, 2024. The assets and liabilities held for sale as of December 31, 2024 were as follows: (In millions) December 31, 2024 Cash and cash equivalents $ 1,339 Investments 1,444 Accounts receivable, net 1,927 Other assets, including Goodwill (1) 2,294 Total assets of businesses held for sale 7,004 Insurance and contractholder liabilities 1,579 All other liabilities 831 Total liabilities of businesses held for sale $ 2,410 (1) Includes Goodwill of $ 94 million. Integration and Transaction-Related Costs In 2025 and 2024, the Company incurred transaction-related costs associated with the HCSC transaction. These costs incurred consisted primarily of certain projects to separate the Company's systems, products and services; fees for legal, advisory and other professional services; and certain employment-related costs. These costs were $ 74 million pre-tax ($ 56 million after-tax) for the three months ended and $ 290 million pre-tax ($ 220 million after-tax) for the six months ended June 30, 2025, compared with $ 63 million pre-tax ($ 47 million after-tax) for the three months ended and $ 100 million pre-tax ($ 76 million after-tax) for the six months ended June 30, 2024. Note 6 – Earnings Per Share Basic and diluted earnings per share were computed as follows: Three Months Ended June 30, 2025 June 30, 2024 (Shares in thousands, dollars in millions, except per share amounts) Basic Effect of Dilution Diluted Basic Effect of Dilution Diluted Shareholders' net income $ 1,532 $ 1,532 $ 1,548 $ 1,548 Shares: Weighted average 266,181 266,181 281,133 281,133 Common stock equivalents 1,973 1,973 2,919 2,919 Total shares 266,181 1,973 268,154 281,133 2,919 284,052 Earnings per share $ 5.76 $ ( 0.05 ) $ 5.71 $ 5.51 $ ( 0.06 ) $ 5.45 12 Six Months Ended June 30, 2025 June 30, 2024 (Shares in thousands, dollars in millions, except per share amounts) Basic Effect of Dilution Diluted Basic Effect of Dilution Diluted Shareholders' net income $ 2,855 $ 2,855 $ 1,271 $ 1,271 Shares: Weighted average 268,511 268,511 283,799 283,799 Common stock equivalents 2,029 2,029 3,085 3,085 Total shares 268,511 2,029 270,540 283,799 3,085 286,884 Earnings per share $ 10.63 $ ( 0.08 ) $ 10.55 $ 4.48 $ ( 0.05 ) $ 4.43 The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Anti-dilutive options 1.5 0.8 1.9 1.2 The Company held approximately 137.4 million shares of common stock in treasury as of June 30, 2025, 128.7 million shares as of December 31, 2024 and 122.5 million shares as of June 30, 2024. Note 7 – Debt Short-Term and Long-Term Debt. During the six months ended June 30, 2025, the Company redeemed at par its $ 700 million 5.685 % senior notes that were due March 2026 and repaid $ 900 million 3.250 % senior notes that matured in April 2025. For more information regarding our short-term and long-term debt, see Note 7 of the Company's 2024 Form 10-K. Revolving Credit Agreement. Our revolving credit agreement provides us with the ability to borrow amounts for general corporate purposes, including providing liquidity support if necessary under our commercial paper program discussed below. As of June 30, 2025, there was no outstanding balance under this revolving credit agreement. In April 2025, the Company replaced its previous revolving credit agreements and entered into a $ 6.5 billion, five-year revolving credit and letter of credit agreement that will mature in April 2030, with an option to extend the maturity date for additional one-year periods, subject to consent of the banks (the "Credit Agreement"). The Company can borrow up to $ 6.5 billion under the Credit Agreement for general corporate purposes, with up to $ 500 million available for issuance of letters of credit. The Credit Agreement includes an option to increase commitments up to $ 1.5 billion for a maximum total commitment of $ 8.0 billion. The Credit Agreement allows for borrowings at either a base rate, term Secured Overnight Financing Rate ("SOFR") or daily simple SOFR plus, in each case, an applicable margin based on the Company's senior unsecured credit ratings. The Credit Agreement also contains customary covenants and restrictions, including a financial covenant that the Company's leverage ratio, as defined in the Credit Agreement, may not exceed 60 %, subject to certain exceptions upon the consummation of an acquisition. Commercial Paper. Under our commercial paper program, we may issue short-term, unsecured commercial paper notes privately placed on a discounted basis through certain broker-dealers at any time not to exceed an aggregate amount of $ 6.5 billion. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds of issuances have been and are expected to be used for general corporate purposes. The commercial paper program had approximately $ 1.2 billion outstanding as of June 30, 2025 and an average interest rate of 4.51 %. Debt Covenants. The Company was in compliance with its debt covenants as of June 30, 2025. Interest Expense Interest expense on long-term and short-term debt was $ 338 million for the three months ended and $ 700 million for the six months ended June 30, 2025, compared with $ 378 million for the three months ended and $ 747 million for the six months ended June 30, 2024. 13 Note 8 – Common and Preferred Stock Dividends The following table provides details of the Company's dividend payments: Record Date Payment Date Amount per Share Total Amount Paid (in millions) 2025 March 5, 2025 March 20, 2025 $ 1.51 $ 412 June 3, 2025 June 18, 2025 $ 1.51 $ 401 2024 March 6, 2024 March 21, 2024 $ 1.40 $ 401 June 4, 2024 June 20, 2024 $ 1.40 $ 392 On July 22, 2025, the Board of Directors declared the third quarter cash dividend of $ 1.51 per share of The Cigna Group common stock to be paid on September 18, 2025 to shareholders of record on September 4, 2025. The Company currently intends to pay regular quarterly dividends, with future declarations subject to approval by its Board of Directors and the Board of Director's determination that the declaration of dividends remains in the best interests of The Cigna Group and its shareholders. The decision of whether to pay future dividends and the amount of any such dividends will be based on the Company's financial position, results of operations, cash flows, capital requirements, the requirements of applicable law and any other factors the Board may deem relevant. Note 9 – Insurance and Contractholder Liabilities A. Account Balances – Insurance and Contractholder Liabilities The Company's insurance and contractholder liabilities were comprised of the following: June 30, 2025 December 31, 2024 June 30, 2024 (In millions) Current Non-current Total Current Non-current Total Total Unpaid claims and claim expenses Cigna Healthcare $ 4,577 $ 59 $ 4,636 $ 4,932 $ 86 $ 5,018 $ 5,202 Other 169 186 355 147 144 291 316 Future policy benefits Cigna Healthcare 38 154 192 91 507 598 596 Other Operations 147 3,145 3,292 157 3,140 3,297 3,362 Contractholder deposit funds Cigna Healthcare — — — 9 115 124 135 Other Operations 360 5,828 6,188 366 5,958 6,324 6,381 Market risk benefits 27 740 767 25 760 785 865 Unearned premiums 697 45 742 753 31 784 765 Total 6,480 10,741 17,221 17,622 Insurance and contractholder liabilities classified as liabilities of businesses held for sale (1) ( 1,092 ) ( 487 ) ( 1,579 ) ( 1,557 ) Total insurance and contractholder liabilities $ 6,015 $ 10,157 $ 16,172 $ 5,388 $ 10,254 $ 15,642 $ 16,065 (1) Amounts classified as liabilities of businesses held for sale include $ 983 million of Unpaid claims, $ 408 million of Future policy benefits, $ 85 million of Unearned premiums and $ 103 million of Contractholder deposit funds as of December 31, 2024 and $ 900 million of Unpaid claims, $ 417 million of Future policy benefits, $ 129 million of Unearned premiums and $ 111 million of Contractholder deposit funds as of June 30, 2024. Insurance and contractholder liabilities expected to be paid within one year are classified as current. B. Unpaid Claims and Claim Expenses – Cigna Healthcare This liability reflects estimates of the ultimate cost of claims that have been incurred but not reported, expected development on reported claims, claims that have been reported but not yet paid (reported claims in process), and other medical care expenses and services payable that are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities. 14 The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $ 4.5 billion as of June 30, 2025 and $ 4.8 billion as of June 30, 2024. The decrease was driven by the HCSC transaction, partially offset by the change in stop loss reserves. Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment was as follows: Six Months Ended June 30, (In millions) 2025 (1) 2024 (1) Beginning balance $ 5,018 $ 5,092 Less: Reinsurance and other amounts recoverable 159 236 Beginning balance, net 4,859 4,856 Incurred costs related to: Current year 18,163 18,821 Prior years ( 297 ) ( 284 ) Total incurred 17,866 18,537 Paid costs related to: Current year 13,019 14,397 Prior years 3,889 3,960 Total paid 16,908 18,357 Less: Divestiture and other 1,323 — Ending balance, net 4,494 5,036 Add: Reinsurance and other amounts recoverable 142 166 Ending balance $ 4,636 $ 5,202 (1) Includes unpaid claims amounts classified as liabilities of businesses held for sale prior to the completion of the HCSC transaction. As of December 31, 2024, June 30, 2024 and December 31, 2023, includes $ 983 million, $ 900 million and $ 823 million classified as liabilities of businesses held for sale, respectively. Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 10 to the Consolidated Financial Statements for additional information on reinsurance. Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions were as follows: Six Months Ended June 30, 2025 2024 (Dollars in millions) $ % (1) $ % (2) Actual completion factors and other $ 170 0.5 % $ 83 0.2 % Medical cost trend 127 0.3 201 0.6 Total favorable variance $ 297 0.8 % $ 284 0.8 % (1) Percentage of current year incurred costs as reported for the year ended December 31, 2024. (2) Percentage of current year incurred costs as reported for the year ended December 31, 2023. Favorable prior year development in both years primarily reflects lower than expected utilization of medical services as compared to our assumptions. C. Future Policy Benefits Cigna Healthcare Future policy benefits for the Cigna Healthcare segment were primarily related to the businesses divested to HCSC on March 19, 2025. Excluding the divestiture, changes in the future policy benefits for the six months ended June 30, 2025 and June 30, 2024 were not material. 15 Other Operations The weighted average interest rates applied and duration for future policy benefits in Other Operations, consisting of annuity and life insurance products, were as follows: As of June 30, 2025 June 30, 2024 Interest accretion rate 5.64 % 5.64 % Current discount rate 5.27 % 5.38 % Weighted average duration 10.6 years 11.2 years Obligations for annuities represent discounted periodic benefits to be paid to an individual or groups of individuals over their remaining lives. Other Operations ' traditional insurance contracts, which are in run-off, have no premium remaining to be collected; therefore, future policy benefit reserves represent the present value of expected future policy benefits, discounted using the current discount rate, and the remaining amortizable deferred profit liability. Future policy benefits for Other Operations include deferred profit liability of $ 353 million as of June 30, 2025 and $ 372 million as of June 30, 2024. Future policy benefits excluding deferred profit liability were $ 2.9 billion as of both June 30, 2025 and December 31, 2024, $ 3.0 billion as of June 30, 2024, and $ 3.2 billion as of December 31, 2023. Undiscounted expected future policy benefits were $ 4.2 billion as of June 30, 2025 and $ 4.4 billion as of June 30, 2024. As of both June 30, 2025 and June 30, 2024, $ 0.9 billion of the future policy benefit reserve was recoverable through treaties with external reinsurers. D. Contractholder Deposit Funds Contractholder deposit fund liabilities within Other Operations were $ 6.2 billion as of June 30, 2025, $ 6.3 billion as of December 31, 2024, $ 6.4 billion as of June 30, 2024 and $ 6.5 billion as of December 31, 2023. Approximately 38 % of the balance is reinsured externally. Activity in these liabilities is presented net of reinsurance in the Consolidated Statements of Cash Flows. Changes in contractholder deposit fund liabilities generally relates to withdrawals and benefit payments, partially offset by deposits and interest credited. As of June 30, 2025, the weighted average crediting rate, net amount at risk and cash surrender value for contractholder deposit fund liabilities not effectively exited through reinsurance were 3.22 %, $ 2.7 billion and $ 2.8 billion, respectively. The comparative amounts as of June 30, 2024 were 3.25 %, $ 2.9 billion and $ 2.8 billion, respectively. More than 99 % of the $ 3.9 billion liability as of June 30, 2025 and the $ 4.0 billion liability as of June 30, 2024 not reinsured externally is for contracts with guaranteed interest rates of 3 % - 4 %, and approximately $ 1.2 billion and $ 1.1 billion, respectively, represented contracts with policies at the guarantee. At these same period ends, $ 1.1 billion and $ 1.2 billion was 50 - 150 basis points ("bps") above the guarantee, and the remaining $ 1.6 billion as of June 30, 2025 and $ 1.7 billion as of June 30, 2024 represented contracts above the guarantee that pay the policyholder based on the greater of a guaranteed minimum cash value or the actual cash value. As of both June 30, 2025 and June 30, 2024, more than 90 % of these contracts have actual cash values of at least 110% of the guaranteed cash value. E. Market Risk Benefits Liabilities for market risk benefits ("MRBs") consist of variable annuity reinsurance contracts in Other Operations. These liabilities arise under annuities and riders to annuities written by ceding companies that guarantee the benefit received at death and, for a subset of policies, also provide contractholders the option, within 30 days of a policy anniversary after the appropriate waiting period, to elect minimum income payments. The Company's capital market risk exposure on variable annuity reinsurance contracts arises when the reinsured guaranteed minimum benefit exceeds the contractholder's account value in the related underlying mutual funds at the time the insurance benefit is payable under the respective contract. The Company receives and pays premium periodically based on the terms of the reinsurance agreements. 16 Market risk benefits activity was as follows: Six Months Ended June 30, (In millions) 2025 2024 Balance, beginning of year $ 785 $ 1,003 Balance, beginning of year, before the effect of nonperformance risk (own credit risk) 838 1,085 Changes due to expected run-off ( 11 ) ( 6 ) Changes due to capital markets versus expected ( 7 ) ( 133 ) Changes due to policyholder behavior versus expected 3 ( 17 ) Balance, end of period, before the effect of changes in nonperformance risk (own credit risk) 823 929 Nonperformance risk (own credit risk), end of period ( 56 ) ( 64 ) Balance, end of period $ 767 $ 865 Reinsured market risk benefit, end of period $ 822 $ 927 The following table presents the net amount at risk and the average attained age of contractholders (weighted by exposure) for contracts assumed by the Company. The net amount at risk is the amount the Company would have to pay to contractholders if all deaths or annuitizations occurred as of the earliest possible date in accordance with the insurance contract. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded, as discussed further in Note 10 to the Consolidated Financial Statements. (Dollars in millions, excludes impact of reinsurance ceded) June 30, 2025 June 30, 2024 Net amount at risk $ 1,236 $ 1,391 Average attained age of contractholders (weighted by exposure) 78.0 years 77.8 years Note 10 – Reinsurance The Company's insurance subsidiaries enter into agreements with other insurance companies to limit losses from large exposures and to permit recovery of a portion of incurred losses. Reinsurance is ceded primarily in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance does not relieve the originating insurer of liability. Therefore, reinsured liabilities must continue to be reported along with the related reinsurance recoverables. The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk. The majority of the Company's reinsurance recoverables resulted from acquisition and disposition transactions in which the underwriting company was not acquired. The Company bears the risk of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company. The Company reviews its reinsurance arrangements and establishes reserves against the recoverables primarily for expected credit losses. 17 The Company's reinsurance recoverables as of June 30, 2025 are presented at amount due by range of external credit rating and collateral level in the following table, with reinsurance recoverables that are market risk benefits separately presented at fair value: (In millions) Fair Value of Collateral Contractually Required to Meet or Exceed Carrying Value of Recoverable Collateral Provisions Exist That May Mitigate Risk of Credit Loss (1) No Collateral Total Ongoing operations A- equivalent and higher current ratings (2) $ — $ 6 $ 202 $ 208 BBB- to BBB+ equivalent current credit ratings (2) — — 65 65 Not rated 90 5 3 98 Acquisition, disposition or run-off activities BBB+ equivalent and higher current ratings (2)(3) 297 2,771 201 3,269 Not rated — 6 1 7 Total reinsurance recoverables before market risk benefits $ 387 $ 2,788 $ 472 $ 3,647 Allowance for uncollectible reinsurance ( 30 ) Market risk benefits 822 Total reinsurance recoverables (4) $ 4,439 (1) Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level. (2) Certified by a nationally recognized statistical ratings organization ("NRSRO"). (3) Comprised of six reinsurers, of which 75 % is held by two reinsurers, Lincoln National Life Insurance Company and Lincoln Life and Annuity Company of New York. (4) Includes $ 142 million of current reinsurance recoverables that are reported in Other current assets. The Company entered into an agreement with Berkshire to effectively exit the variable annuity reinsurance business via a reinsurance transaction in 2013. Variable annuity contracts are accounted for as assumed and ceded reinsurance and categorized as market risk benefits as discussed in Note 9 to the Consolidated Financial Statements. Berkshire reinsured 100 % of the Company's future cash flows in this business, net of other reinsurance arrangements existing at that time. The reinsurance agreement is subject to an overall limit, with approximately $ 3.0 billion remaining as of June 30, 2025. As a result of the reinsurance transaction, amounts payable are offset by a corresponding reinsurance recoverable, provided the increased recoverable remains within the overall Berkshire limit. As of both June 30, 2025 and 2024, market risk benefits (shown in the table net of nonperformance risk as of June 30, 2025) were predominantly reinsured by Berkshire, which is rated AA+ by an NRSRO. As of June 30, 2025, approximately 100 % of the Berkshire recoverable is secured by assets in a trust. Note 11 – Investments The following table summarizes the Company's investments by category and current or long-term classification: June 30, 2025 December 31, 2024 (In millions) Current Long-Term Total Current Long-Term Total Debt securities $ 443 $ 7,946 $ 8,389 $ 463 $ 8,960 $ 9,423 Equity securities 15 561 576 7 554 561 Commercial mortgage loans 105 1,206 1,311 108 1,243 1,351 Policy loans — 1,117 1,117 — 1,156 1,156 Other long-term investments — 4,832 4,832 — 4,576 4,576 Short-term investments 250 — 250 170 — 170 Total $ 748 $ 16,489 $ 17,237 Investments classified as assets of businesses held for sale (1) ( 83 ) ( 1,361 ) ( 1,444 ) Investments per Consolidated Balance Sheets $ 813 $ 15,662 $ 16,475 $ 665 $ 15,128 $ 15,793 (1) Investments related to the HCSC transaction that were held for sale as of December 31, 2024. These investments were primarily comprised of debt securities. 18 A. Investment Portfolio Debt Securities The amortized cost and fair value by contractual maturity periods for debt securities were as follows as of June 30, 2025: (In millions) Amortized Cost Fair Value Due in one year or less $ 620 $ 543 Due after one year through five years 3,587 3,556 Due after five years through ten years 2,280 2,203 Due after ten years 2,033 1,838 Mortgage and other asset-backed securities 277 249 Total $ 8,797 $ 8,389 Actual maturities of these securities could differ from their contractual maturities used in the table above because issuers may have the right to call or prepay obligations, with or without penalties. Gross unrealized appreciation (depreciation) on debt securities by type of issuer is shown below: (In millions) Amortized Cost Allowance for Credit Loss Unrealized Appreciation Unrealized Depreciation Fair Value June 30, 2025 Federal government and agency $ 212 $ — $ 16 $ ( 4 ) $ 224 State and local government 24 — — — 24 Foreign government 399 — 10 ( 8 ) 401 Corporate 7,885 ( 124 ) 145 ( 415 ) 7,491 Mortgage and other asset-backed 277 — 1 ( 29 ) 249 Total $ 8,797 $ ( 124 ) $ 172 $ ( 456 ) $ 8,389 December 31, 2024 Federal government and agency $ 276 $ — $ 14 $ ( 9 ) $ 281 State and local government 37 — 1 ( 1 ) 37 Foreign government 350 — 5 ( 11 ) 344 Corporate 9,091 ( 111 ) 102 ( 659 ) 8,423 Mortgage and other asset-backed 371 — 1 ( 34 ) 338 Total $ 10,125 $ ( 111 ) $ 123 $ ( 714 ) $ 9,423 Review of Declines in Fair Value. Management reviews debt securities in an unrealized loss position to determine whether a credit loss allowance is needed based on criteria that include severity of decline; financial health and specific prospects of the issuer; and changes in the regulatory, economic or general market environment of the issuer's industry or geographic region. The table below summarizes debt securities with a decline in fair value from amortized cost for which an allowance for credit losses has not been recorded (by investment grade and the length of time these securities have been in an unrealized loss position). Unrealized depreciation on these debt securities is primarily due to declines in fair value resulting from increasing interest rates since these securities were purchased. June 30, 2025 December 31, 2024 (Dollars in millions) Fair Value Amortized Cost Unrealized Depreciation Number of Issues Fair Value Amortized Cost Unrealized Depreciation Number of Issues One year or less Investment grade $ 452 $ 456 $ ( 4 ) 187 $ 1,203 $ 1,227 $ ( 24 ) 545 Below investment grade 74 78 ( 4 ) 308 245 250 ( 5 ) 739 More than one year Investment grade 3,505 3,924 ( 419 ) 984 4,687 5,319 ( 632 ) 1,297 Below investment grade 219 248 ( 29 ) 81 416 469 ( 53 ) 123 Total $ 4,250 $ 4,706 $ ( 456 ) 1,560 $ 6,551 $ 7,265 $ ( 714 ) 2,704 19 Equity Securities The following table provides the values of the Company's equity security investments: June 30, 2025 December 31, 2024 (In millions) Cost Carrying Value Cost Carrying Value Equity securities with readily determinable fair values $ 639 $ 118 $ 635 $ 37 Equity securities with no readily determinable fair value 3,218 458 3,215 524 Total $ 3,857 $ 576 $ 3,850 $ 561 Commercial Mortgage Loans Mortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type, location and borrower. Loans are generally issued at fixed rates of interest and are secured by high-quality, primarily completed and substantially leased operating properties. The Company regularly evaluates and monitors credit risk from the initial mortgage loan underwriting and throughout the investment holding period. The annual portfolio review performed in the second quarter of 2025 confirmed ongoing strong overall credit quality in line with the previous year's results. For more information on the Company's accounting policies and methodologies regarding these investments, see Note 11 in the Company's 2024 Form 10-K. The following table summarizes the credit risk profile of the Company's commercial mortgage loan portfolio: (Dollars in millions) June 30, 2025 December 31, 2024 Loan-to-Value Ratio Carrying Value Average Debt Service Coverage Ratio Average Loan-to-Value Ratio Carrying Value Average Debt Service Coverage Ratio Average Loan-to-Value Ratio Below 60% $ 422 2.02 $ 547 2.07 60% to 79% 704 1.77 595 1.83 80% to 100% 185 0.83 209 0.51 Total $ 1,311 1.69 70 % $ 1,351 1.70 69 % Other Long-Term Investments Other long-term investments include investments in unconsolidated entities, including certain limited partnerships and limited liability companies holding real estate, securities or loans. These investments are carried at cost plus the Company's ownership percentage of reporting income or loss, based on the financial statements of the underlying investments that are generally reported at fair value. Income or loss from these investments is reported on a one-quarter lag due to the timing of when financial information is received from the general partner or manager of the investments. Other long-term investments also include investment real estate carried at depreciated cost less any impairment write-downs to fair value when cash flow estimates indicate that the carrying value may not be recoverable. Additionally, statutory and other restricted deposits and foreign currency swaps carried at fair value are reported in the table below as Other. The following table provides the carrying value information for these investments: Carrying Value as of (In millions) June 30, 2025 December 31, 2024 Real estate investments $ 1,866 $ 1,763 Securities partnerships 2,781 2,587 Other 185 226 Total $ 4,832 $ 4,576 20 B. Derivative Financial Instruments The Company uses derivative financial instruments to manage the characteristics of investment assets (such as duration, yield, currency and liquidity) to meet the varying demands of the related insurance and contractholder liabilities. The Company also uses derivative financial instruments to hedge the risk of changes in the net assets of certain of its foreign subsidiaries due to changes in foreign currency exchange rates and to hedge the interest rate risk of certain long-term debt. As of June 30, 2025, the notional value of interest rate swap contracts decreased to $ 2.6 billion compared with $ 2.7 billion as of December 31, 2024. There were no other material changes to the Company's individual derivative hedging strategies during the three and six months ended June 30, 2025. Please refer to the Company's 2024 Form 10-K for further discussion of the types of derivative financial instruments and associated accounting policies. The effects of derivative financial instruments used in our individual hedging strategies were not material to the Consolidated Financial Statements as of June 30, 2025 and December 31, 2024. The gross fair values of our derivative financial instruments are presented in Note 12 to the Consolidated Financial Statements. C. Investment Gains and Losses Net investment gains (losses), before income taxes were $ 52 million and $ 50 million, respectively, for the three and six months ended June 30, 2025, versus $( 48 ) million and $( 1,884 ) million, respectively, for the three and six months ended June 30, 2024. Net investment results for the three and six months ended June 30, 2025 increased, reflecting investment gains related to a change in fair value of certain equity securities in the second quarter of 2025 and the absence of the impairment of equity securities recorded in the first quarter of 2024. These amounts exclude investment gains and losses attributed to the Company's separate accounts because those gains and losses generally accrue directly to separate account policyholders. Note 12 – Fair Value Measurements For a description of the policies, methods and assumptions that are used to estimate fair value and determine the fair value hierarchy for each class of financial instruments, see Note 12 in the Company's 2024 Form 10-K. A. Financial Assets and Financial Liabilities Carried at Fair Value The following table provides information about the Company's financial assets and liabilities carried at fair value. Further information regarding insurance assets and liabilities carried at fair value is provided in Note 9E to the Consolidated Financial Statements. Separate account assets are also recorded at fair value on the Company's Consolidated Balance Sheets and are reported separately in the Separate Accounts section below as gains and losses related to these assets generally accrue directly to contractholders. (In millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Financial assets at fair value Debt securities Federal government and agency $ 105 $ 165 $ 119 $ 116 $ — $ — $ 224 $ 281 State and local government — — 24 37 — — 24 37 Foreign government — — 401 344 — — 401 344 Corporate — — 7,171 8,049 320 374 7,491 8,423 Mortgage and other asset-backed — — 209 295 40 43 249 338 Total debt securities 105 165 7,924 8,841 360 417 8,389 9,423 Equity securities (1) 63 1 53 36 2 — 118 37 Short-term investments — — 250 170 — — 250 170 Derivative assets — — 64 168 — — 64 168 Financial liabilities at fair value Derivative liabilities $ — $ — $ 30 $ 1 $ — $ — $ 30 $ 1 (1) Excludes certain equity securities that have no readily determinable fair value. 21 Level 3 Financial Assets and Financial Liabilities Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement. Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. Additionally, as discussed in Note 9E in the Company's 2024 Form 10-K, the Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy. Quantitative Information about Unobservable Inputs The significant unobservable input used to value our corporate and government debt securities and mortgage and other asset-backed securities is an adjustment for liquidity. This adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security. The following table summarizes the fair value and significant unobservable inputs that were developed directly by the Company and used in pricing these debt securities. The range and weighted average basis point amounts for liquidity reflect the Company's best estimates of the unobservable adjustments a market participant would make to calculate these fair values. An increase in liquidity spread adjustments would result in a lower fair value measurement, while a decrease would result in a higher fair value measurement. Fair Value as of Unobservable Adjustment Range (Weighted Average by Quantity) as of (Fair value in millions) June 30, 2025 December 31, 2024 Unobservable Input June 30, 2025 June 30, 2025 December 31, 2024 Debt securities Corporate $ 319 $ 373 Liquidity 60 - 2020 ( 360 ) bps 60 - 1520 ( 370 ) bps Mortgage and other asset-backed securities 40 43 Liquidity 110 - 660 ( 370 ) bps 100 - 550 ( 280 ) bps Other debt securities 1 1 Total Level 3 debt securities $ 360 $ 417 Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value The following table summarizes the changes in financial assets and financial liabilities classified in Level 3. Gains and losses reported in the table may include net changes in fair value that are attributable to both observable and unobservable inputs. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Debt and Equity Securities Beginning balance $ 373 $ 422 $ 417 $ 447 Losses included in Shareholders' net income ( 4 ) ( 40 ) ( 14 ) ( 61 ) Gains (losses) included in Other comprehensive loss 3 ( 2 ) 10 ( 5 ) Purchases, sales and settlements Purchases 25 11 27 11 Sales ( 2 ) — ( 2 ) — Settlements ( 49 ) ( 1 ) ( 80 ) ( 15 ) Total purchases, sales and settlements ( 26 ) 10 ( 55 ) ( 4 ) Transfers into / (out of) Level 3 Transfers into Level 3 31 15 49 31 Transfers out of Level 3 ( 15 ) ( 8 ) ( 45 ) ( 11 ) Total transfers into / (out of) Level 3 16 7 4 20 Ending balance $ 362 $ 397 $ 362 $ 397 Total losses included in Shareholders' net income attributable to instruments held at the reporting date $ ( 4 ) $ ( 41 ) $ ( 17 ) $ ( 61 ) Change in unrealized gain or (loss) included in Other comprehensive loss for assets held at the end of the reporting period $ 4 $ ( 2 ) $ 7 $ ( 6 ) Total gains and losses included in Shareholders' net income in the tables above are reflected in the Consolidated Statements of Income as Net investment gains (losses) and Net investment income. Gains and losses included in Other comprehensive loss, net of tax, in the 22 tables above are reflected in Net unrealized appreciation on securities and derivatives in the Consolidated Statements of Comprehensive Income. Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company's best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Market activity typically decreases during periods of economic uncertainty, and this decrease in activity reduces the availability of market observable data. As a result, the level of unobservable judgment that must be applied to the pricing of certain instruments increases and is typically observed through the widening of liquidity spreads. Transfers between Level 2 and Level 3 during 2025 and 2024 primarily reflected changes in liquidity estimates for certain private placement issuers across several sectors. See discussion under Quantitative Information about Unobservable Inputs above for more information. Separate Accounts The investment income and fair value gains and losses of Separate account assets generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company's Consolidated Statements of Income and Cash Flows. The separate account activity for the six months ended June 30, 2025 and 2024 was primarily driven by changes in the market values of the underlying separate account investments. Fair values of Separate account assets were as follows: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total (In millions) June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 June 30, 2025 December 31, 2024 Guaranteed separate accounts (See Note 16) $ 240 $ 231 $ 330 $ 345 $ — $ — $ 570 $ 576 Non-guaranteed separate accounts (1) 273 267 5,651 5,575 238 228 6,162 6,070 Subtotal $ 513 $ 498 $ 5,981 $ 5,920 $ 238 $ 228 6,732 6,646 Non-guaranteed separate accounts priced at net asset value as a practical expedient (1) 641 632 Total $ 7,373 $ 7,278 (1) Non-guaranteed separate accounts include $ 3.8 billion as of both June 30, 2025 and December 31, 2024 in assets supporting the Company's pension plans, including $ 0.2 billion classified in Level 3 as of both June 30, 2025 and December 31, 2024. Non-guaranteed separate accounts are primarily comprised of securities partnerships, real estate and real estate funds. Separate account assets classified in Level 3 primarily support the Company's pension plans and include certain newly issued, privately placed, complex or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans. Activity, including transfers into and out of Level 3, was not material for the three and six months ended June 30, 2025 or 2024. B. Assets and Liabilities Measured at Fair Value under Certain Conditions Some financial assets and liabilities are not carried at fair value, such as commercial mortgage loans that are carried at unpaid principal, investment real estate that is carried at depreciated cost and equity securities with no readily determinable fair value when there are no observable market transactions. However, these financial assets and liabilities may be measured using fair value under certain conditions, such as when investments become impaired and are written down to their fair value, or when there are observable price changes from orderly market transactions of equity securities that otherwise had no readily determinable fair value. For the six months ended June 30, 2025, impairments recognized requiring the assets and liabilities described above to be measured at fair value were not material. For the six months ended June 30, 2024, we determined our investment in VillageMD was impaired and recorded a $ 1.8 billion loss in Net investment gains (losses) in the Company's Consolidated Statements of Income. Observable price changes for equity securities with no readily determinable fair value were not material for the six months ended June 30, 2025 or June 30, 2024. 23 C. Fair Value Disclosures for Financial Instruments Not Carried at Fair Value The following table includes the Company's financial instruments not recorded at fair value but for which fair value disclosure is required. In addition to universal life products and finance leases, financial instruments that are carried in the Company's Consolidated Balance Sheets at amounts that approximate fair value are excluded from the following table. Classification in Fair Value Hierarchy June 30, 2025 December 31, 2024 (In millions) Fair Value Carrying Value Fair Value Carrying Value Commercial mortgage loans Level 3 $ 1,256 $ 1,311 $ 1,256 $ 1,351 Long-term debt, including current maturities, excluding finance leases Level 2 $ 27,419 $ 29,503 $ 28,392 $ 31,008 Note 13 – Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) ("AOCI") includes net unrealized appreciation on securities and derivatives, change in discount rate and instrument-specific credit risk for certain long-duration insurance contractholder liabilities (see Note 9 to the Consolidated Financial Statements), foreign currency translation, and the net postretirement benefits liability adjustment. AOCI includes the Company's share from unconsolidated entities reported on the equity method. Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to Shareholders' net income in the same period that the related pre-tax AOCI reclassifications are recognized. Shareholders' other comprehensive loss, net of tax, for the three and six months ended June 30, 2025 and June 30, 2024 is primarily attributable to the change in discount rates for certain long-duration liabilities and unrealized changes in the market values of securities and derivatives, including the impacts from unconsolidated entities reported on the equity method. 24 Changes in the components of AOCI were as follows: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Securities and derivatives Beginning balance $ 732 $ 292 $ 832 $ 171 Unrealized appreciation on securities and derivatives, before reclassification, net of tax (expense) of $( 93 ), $( 29 ), $( 44 ) and $( 68 ), respectively 303 77 169 181 Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 4 ), $( 8 ), $( 13 ) and $( 13 ), respectively 18 31 52 48 Other comprehensive income, net of tax 321 108 221 229 Ending balance $ 1,053 $ 400 $ 1,053 $ 400 Net long-duration insurance and contractholder liabilities measurement adjustments Beginning balance $ ( 2,206 ) $ ( 1,531 ) $ ( 2,038 ) $ ( 971 ) Net current period change in discount rate for certain long-duration liabilities, before reclassification, net of tax benefit of $ 205 , $ 76 , $ 238 and $ 262 , respectively ( 615 ) ( 212 ) ( 723 ) ( 758 ) Amounts reclassified to Shareholders' net income, net of tax expense of $ — , $ — , $ 16 and $ — , respectively — — ( 56 ) — Net current period change in discount rate for certain long-duration liabilities, net of tax benefit of $ 205 , $ 76 , $ 254 and $ 262 , respectively ( 615 ) ( 212 ) ( 779 ) ( 758 ) Net current period change in instrument-specific credit risk for market risk benefits, net of tax (expense) benefit of $( 2 ), $ — , $( 1 ) and $ 4 , respectively 6 — 2 ( 14 ) Other comprehensive (loss), net of tax ( 609 ) ( 212 ) ( 777 ) ( 772 ) Ending balance $ ( 2,815 ) $ ( 1,743 ) $ ( 2,815 ) $ ( 1,743 ) Translation of foreign currencies Beginning balance $ ( 185 ) $ ( 175 ) $ ( 198 ) $ ( 149 ) Net translation of foreign currencies, before reclassification, net of tax (expense) of $( 2 ), $( 1 ), $( 8 ) and $( 3 ), respectively 65 ( 5 ) 78 ( 31 ) Ending balance $ ( 120 ) $ ( 180 ) $ ( 120 ) $ ( 180 ) Postretirement benefits liability Beginning balance $ ( 931 ) $ ( 910 ) $ ( 937 ) $ ( 915 ) Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 2 ), $ — , $( 4 ) and $( 3 ), respectively 6 7 12 12 Net change due to valuation update, before reclassification, net of tax benefit of $ 3 , $ 4 , $ 3 and $ 4 , respectively ( 9 ) ( 16 ) ( 9 ) ( 16 ) Other comprehensive (loss) income, net of tax ( 3 ) ( 9 ) 3 ( 4 ) Ending balance $ ( 934 ) $ ( 919 ) $ ( 934 ) $ ( 919 ) Total Accumulated other comprehensive loss Beginning balance $ ( 2,590 ) $ ( 2,324 ) $ ( 2,341 ) $ ( 1,864 ) Shareholders' other comprehensive loss, net of tax benefit of $ 105 , $ 42 , $ 187 and $ 183 , respectively ( 226 ) ( 118 ) ( 475 ) ( 578 ) Ending balance $ ( 2,816 ) $ ( 2,442 ) $ ( 2,816 ) $ ( 2,442 ) Note 14 – Strategic Optimization Program In the first quarter of 2025, the Company commenced an enterprise-wide initiative to evolve our business and deliver a more efficient and improved experience for our patients, providers and customers. This program is expected to continue through December 2026 and include severance and other employee costs, asset impairments and accelerated asset amortization, and the operating results of certain small non-strategic businesses that we plan to discontinue. As we continue to evaluate additional opportunities to improve the overall efficiency and effectiveness of our operations, we anticipate future charges. During the three and six months ended June 30, 2025, we reported total costs of $ 129 million, pre-tax ($ 98 million, after-tax) and $ 344 million, pre-tax ($ 261 million, after-tax), respectively, associated with this initiative. During the three months ended June 30, 2025, the total costs included a charge in Selling, general and administrative ("SG&A") expenses of $ 88 million, pre-tax, that was primarily comprised of asset impairments. During the six months ended June 30, 2025, the total costs included a charge in SG&A expenses of $ 286 million, pre-tax, that was primarily associated with employee severance. The remainder for both periods reflects the operating results of certain non-strategic businesses. We expect substantially all of the accrued liability to be paid by the end of 2025. See Note 17 to the Consolidated Financial Statements for further details of the Strategic Optimization Program impact by segment. 25 The following table summarizes a roll forward of the accrued liability recorded in Accrued expenses and other liabilities during the six months ended June 30, 2025: (In millions) Balance, December 31, 2024 $ — 2025 charges 194 2025 payments ( 78 ) Balance, June 30, 2025 $ 116 Note 15 – Income Taxes Income Tax Expense The 19.2 % effective tax rate for the three months ended June 30, 2025 was higher than the 18.1 % rate for the three months ended June 30, 2024. The increase was primarily driven by the absence of tax benefits recorded in 2024 related to the release of tax reserves following favorable state audit resolutions, partially offset by the favorable impact of foreign operations. The 17.1 % effective tax rate for the six months ended June 30, 2025 was lower than 31.5 % rate for the six months ended June 30, 2024. The decrease was primarily due to the absence of a valuation allowance related to the impairment of equity securities in 2024, partially offset by the absence of tax benefits recorded in 2024 related to the release of tax reserves following favorable state audit resolutions and the impact related to the HCSC transaction. As of June 30, 2025, we had approximately $ 847 million in deferred tax assets ("DTAs") associated with the impairment of equity securities as well as unrealized investment losses. A valuation allowance of $ 636 million, of which $ 422 million was established in the six months ended June 30, 2024, drove the higher effective tax rate and was almost entirely related to the impairment of equity securities discussed in Note 11 to the Consolidated Financial Statements. We have determined that a valuation allowance against the remaining DTAs is not currently required based on the Company's loss carryback capacity and ability and intent to hold certain securities until recovery. We continue to monitor and evaluate the need for any additional valuation allowance. Note 16 – Contingencies and Other Matters The Company, through its subsidiaries, is contingently liable for various guarantees provided in the ordinary course of business. A. Financial Guarantees: Retiree and Life Insurance Benefits The Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree benefits. For the majority of these benefits, the sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations. If employers fail to do so, the Company or an affiliate of the buyer of the retirement benefits business has the right to redirect the management of the related assets to provide for benefit payments. As of June 30, 2025, employers maintained assets that generally exceeded the benefit obligations under these arrangements of approximately $ 400 million. An additional liability is established if management believes that the Company will be required to make payments under the guarantees; there were no additional liabilities required for these guarantees, net of reinsurance, as of June 30, 2025. Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy. The Company does not expect that these financial guarantees will have a material effect on the Company's consolidated results of operations, liquidity or financial condition. B. Certain Other Guarantees The Company had indemnification obligations as of June 30, 2025 in connection with acquisition and disposition transactions. These indemnification obligations are triggered by the breach of representations or covenants provided by the Company, such as representations for the presentation of financial statements, filing of tax returns, compliance with laws or regulations, or identification of outstanding litigation. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential amount due is subject to contractual limitations based on a stated dollar amount or a percentage of the transaction purchase price, while in other cases limitations are not specified or applicable. The Company does not believe that it is possible to determine the maximum potential amount due under these obligations because not all amounts due under these indemnification obligations are subject to limitation. There were no recorded liabilities for these indemnification obligations as of June 30, 2025. 26 C. Guaranty Fund Assessments The Company operates in a regulatory environment that may require its participation in assessments under state insurance guaranty association laws. The Company's exposure to assessments for certain obligations of insolvent insurance companies to policyholders and claimants is based on its share of business written in the relevant jurisdictions. There were no material charges or credits resulting from existing or new guaranty fund assessments for the six months ended June 30, 2025. D. Legal and Regulatory Matters The Company is routinely involved in numerous claims, lawsuits, regulatory inquiries and audits, government investigations, including under the federal False Claims Act and state false claims acts initiated by a government investigating body or by a qui tam relator's filing of a complaint under court seal, and other legal matters arising, for the most part, in the ordinary course of managing a global health services business. Additionally, the Company has received and is cooperating with subpoenas or similar processes from various governmental agencies requesting information, all arising in the normal course of its business. Disputed tax matters arising from audits by the Internal Revenue Service or other state and foreign jurisdictions, including those resulting in litigation, are accounted for under GAAP guidance for uncertain tax positions. Note 17 – Segment Information See Note 1 to the Consolidated Financial Statements for a description of our segments. A description of our basis for reporting segment operating results is outlined below. Intersegment revenues primarily reflect pharmacy and care services transactions between the Evernorth Health Services and Cigna Healthcare segments. The Chairman and Chief Executive Officer is the chief operating decision maker ("CODM") responsible for making decisions about resources to be allocated to the segment and assessing its performance. The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management, including the CODM, believes these metrics reflect the underlying results of business operations and facilitate analysis of trends in underlying revenue, expenses and profitability to enable resource allocation decisions. We define pre-tax adjusted income (loss) from operations as income (loss) before income taxes excluding pre-tax income (loss) attributable to noncontrolling interests, net investment gains/losses, amortization of acquired intangible assets and special items. The Cigna Group's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are also excluded. Special items are matters that management, including the CODM, believes are not representative of the underlying results of operations due to their nature or size. Adjusted income (loss) from operations is measured on an after-tax basis for consolidated results and on a pre-tax basis for segment results. The Company defines adjusted revenues as total revenues excluding the following adjustments: special items and The Cigna Group's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Special items are matters that management, including the CODM, believes are not representative of the underlying results of operations due to their nature or size. We exclude these items from this measure because management, including the CODM, believes they are not indicative of past or future underlying performance of the business. The Company does not report total assets by segment because this is not a metric used by the CODM to allocate resources or evaluate segment performance. The following table presents the special items charges (benefits) recorded by the Company, as well as the respective financial statement line items impacted: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In millions) Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Strategic optimization program (largely Selling, general and administrative expenses) 129 98 — — 344 261 — — Integration and transaction-related costs (Selling, general and administrative expenses) $ 74 $ 56 $ 63 $ 47 $ 290 $ 220 $ 100 $ 76 (Gain) loss on sale of businesses — — — — ( 41 ) ( 115 ) 19 ( 43 ) Deferred tax expenses, net (Income taxes, less amount attributable to noncontrolling interests) — 17 — 17 — 34 — 34 Total impact from special items $ 203 $ 171 $ 63 $ 64 $ 593 $ 400 $ 119 $ 67 27 Summarized segment financial information was as follows: (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended June 30, 2025 Revenues from external customers $ 57,486 $ 9,358 $ 98 $ — $ 66,942 Intersegment revenues 308 1,313 13 ( 1,634 ) Net investment income 31 127 73 5 236 Total revenues 57,825 10,798 184 ( 1,629 ) 67,178 Net investment results from certain equity method investments — ( 44 ) — — ( 44 ) Adjusted revenues $ 57,825 $ 10,754 $ 184 $ ( 1,629 ) $ 67,134 Pharmacy and other service costs 54,939 — Medical costs — 7,482 Selling, general and administrative expenses excluding special items 1,074 2,180 Other segment items (1) Interest (expense) and other 1 2 Less income attributable to noncontrolling interests 117 — Pre-tax adjusted income (loss) from operations 1,696 1,094 25 ( 382 ) 2,433 Income (loss) before income taxes $ 1,430 $ 1,098 $ ( 20 ) $ ( 487 ) $ 2,021 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests ( 117 ) — — — ( 117 ) Net investment (gains) losses (2) ( 80 ) ( 20 ) 4 — ( 96 ) Amortization of acquired intangible assets 416 6 — — 422 Special items Strategic optimization program 47 10 41 31 129 Integration and transaction-related costs — — — 74 74 Pre-tax adjusted income (loss) from operations $ 1,696 $ 1,094 $ 25 $ ( 382 ) $ 2,433 Other segment information Depreciation and amortization 587 81 9 5 682 (1) Other segment items represent the difference between segment adjusted revenues less significant segment expenses and pre-tax adjusted income (loss) from operations, and they do not represent significant segment items relative to the CODM's review and oversight. (2) 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. 28 (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended June 30, 2024 Revenues from external customers $ 48,251 $ 11,821 $ 130 $ — $ 60,202 Intersegment revenues 1,232 1,203 20 ( 2,455 ) Net investment income 65 172 77 7 321 Total revenues 49,548 13,196 227 ( 2,448 ) 60,523 Net investment results from certain equity method investments — ( 53 ) — — ( 53 ) Adjusted revenues $ 49,548 $ 13,143 $ 227 $ ( 2,448 ) $ 60,470 Pharmacy and other service costs 46,852 — Medical costs — 9,312 Selling, general and administrative expenses excluding special items 980 2,629 Other segment items (1) Interest (expense) and other ( 2 ) 2 Less income attributable to noncontrolling interests 95 — Pre-tax adjusted income (loss) from operations $ 1,619 $ 1,204 $ ( 16 ) $ ( 435 ) $ 2,372 Income (loss) before income taxes $ 1,299 $ 1,205 $ ( 17 ) $ ( 498 ) $ 1,989 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests ( 95 ) — — — ( 95 ) Net investment (gains) losses (2) ( 1 ) ( 5 ) 1 — ( 5 ) Amortization of acquired intangible assets 416 4 — — 420 Special items Integration and transaction-related costs — — — 63 63 Pre-tax adjusted income (loss) from operations $ 1,619 $ 1,204 $ ( 16 ) $ ( 435 ) $ 2,372 Other segment information Depreciation and amortization $ 614 $ 113 $ 2 $ 9 $ 738 (1) Other segment items represent the difference between segment adjusted revenues less significant segment expenses and pre-tax adjusted income (loss) from operations, and they do not represent significant segment items relative to the CODM's review and oversight. (2) 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. 29 (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Six months ended June 30, 2025 Revenues from external customers $ 109,488 $ 22,526 $ 192 $ — $ 132,206 Intersegment revenues 1,956 2,544 25 ( 4,525 ) Net investment income 62 260 142 10 474 Total revenues 111,506 25,330 359 ( 4,515 ) 132,680 Net investment results from certain equity method investments — ( 94 ) — — ( 94 ) Adjusted revenues $ 111,506 $ 25,236 $ 359 $ ( 4,515 ) $ 132,586 Pharmacy and other service costs 106,060 — Medical costs — 17,867 Selling, general and administrative expenses 2,098 4,992 Other segment items (1) Interest (expense) and other 1 4 Less: Income attributable to noncontrolling interests 219 — Pre-tax adjusted income (loss) from operations 3,130 2,381 25 ( 793 ) 4,743 Income (loss) before income taxes $ 2,538 $ 2,462 $ ( 40 ) $ ( 1,291 ) $ 3,669 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests ( 219 ) — — — ( 219 ) Net investment (gains) losses (2) ( 84 ) ( 67 ) 7 — ( 144 ) Amortization of acquired intangible assets 831 13 — — 844 Special items Integration and transaction-related costs — — — 290 290 Strategic optimization program 68 10 58 208 344 (Gain) on sale of businesses ( 4 ) ( 37 ) — — ( 41 ) Pre-tax adjusted income (loss) from operations $ 3,130 $ 2,381 $ 25 $ ( 793 ) $ 4,743 Other segment information Depreciation and amortization $ 1,171 $ 164 $ 11 $ 10 $ 1,356 (1) Other segment items represent the difference between segment adjusted revenues less significant segment expenses and pre-tax adjusted income (loss) from operations, and they do not represent significant segment items relative to the CODM's review and oversight. (2) 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. 30 (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Six months ended June 30, 2024 Revenues from external customers $ 93,137 $ 23,833 $ 196 $ 1 $ 117,167 Intersegment revenues 2,513 2,327 45 ( 4,885 ) Net investment income 124 321 152 14 611 Total revenues 95,774 26,481 393 ( 4,870 ) 117,778 Net investment results from certain equity method investments — ( 61 ) — — ( 61 ) Adjusted revenues $ 95,774 $ 26,420 $ 393 $ ( 4,870 ) $ 117,717 Pharmacy and other service costs 90,690 — Medical costs — 18,531 Selling, general and administrative expenses 1,931 5,349 Other segment items (1) Interest (expense) and other ( 2 ) 4 Less: income attributable to noncontrolling interests 172 — Pre-tax adjusted income (loss) from operations 2,979 2,544 2 ( 844 ) 4,681 Income (loss) before income taxes $ 863 $ 2,148 $ 1 $ ( 944 ) $ 2,068 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests ( 172 ) — — — ( 172 ) Net investment losses (2) 1,455 367 1 — 1,823 Amortization of acquired intangible assets 833 10 — — 843 Special items Integration and transaction-related costs — — — 100 100 Loss on sale of businesses — 19 — — 19 Pre-tax adjusted income (loss) from operations $ 2,979 $ 2,544 $ 2 $ ( 844 ) $ 4,681 Other segment information Depreciation and amortization $ 1,220 $ 237 $ 3 $ 19 $ 1,479 (1) Other segment items represent the difference between segment adjusted revenues less significant segment expenses and pre-tax adjusted income (loss) from operations, and they do not represent significant segment items relative to the CODM's review and oversight. (2) 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. 31 Revenue from external customers includes Pharmacy revenues, Premiums and Fees and other revenues. The following table presents these revenues by product, premium and service type: Three Months Ended June 30, Six Months Ended June 30, (In millions) 2025 2024 2025 2024 Products (Pharmacy revenues) (ASC 606) Network revenues $ 30,582 $ 25,276 $ 58,794 $ 49,442 Home delivery and specialty revenues 19,974 18,017 38,911 34,475 Other revenues 3,433 2,897 6,510 5,443 Total Evernorth Health Services 53,989 46,190 104,215 89,360 Other Operations 14 16 27 33 Corporate and eliminations ( 354 ) ( 1,105 ) ( 1,960 ) ( 2,256 ) Total Pharmacy revenues 53,649 45,101 102,282 87,137 Insurance premiums (ASC 944) Cigna Healthcare U.S. Healthcare Employer insured 4,684 4,350 9,372 8,743 Medicare Advantage — 2,207 2,363 4,494 Stop loss 1,879 1,665 3,747 3,333 Individual and Family Plans 941 975 1,800 2,015 Other 462 1,220 2,334 2,478 U.S. Healthcare 7,966 10,417 19,616 21,063 International Health 1,026 891 2,004 1,776 Total Cigna Healthcare 8,992 11,308 21,620 22,839 Other Operations 78 115 159 163 Corporate and eliminations 86 31 113 55 Total Premiums 9,156 11,454 21,892 23,057 Services (Fees) (ASC 606) and Other revenues (1) Evernorth Health Services 3,805 3,293 7,229 6,290 Cigna Healthcare 1,679 1,716 3,450 3,321 Other Operations 19 19 31 45 Corporate and eliminations ( 1,366 ) ( 1,381 ) ( 2,678 ) ( 2,683 ) Total Fees and other revenues (1) 4,137 3,647 8,032 6,973 Total revenues from external customers $ 66,942 $ 60,202 $ 132,206 $ 117,167 (1) Other revenues for the three months ended June 30, 2025 and 2024 were $ 114 million and $ 152 million, respectively, and for the six months ended June 30, 2025 and 2024 were $ 276 million and $ 242 million, respectively. Financial and performance guarantees. Evernorth Health Services may also provide certain financial and performance guarantees, including a minimum level of discounts a client may receive, generic utilization rates and various service levels. Clients may be entitled to receive compensation if we fail to meet the guarantees. Actual performance is compared to the contractual guarantee for each measure throughout the period, and the Company defers revenue for any estimated payouts within Accrued expenses and other liabilities (current). These estimates are adjusted and paid following the end of the annual guarantee period. Historically, adjustments to original estimates have not been material. This guarantee liability was $ 1.4 billion as of June 30, 2025 and $ 1.9 billion December 31, 2024.