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Cigna Corporation STRONGER TOGETHER CIGNA ANNUAL REPORT 2015 TRUSTED PARTNER Well-being is a journey, and we’re on it with you. Along the road to physical, emotional and Throughout this journey, Cigna is a trusted financial wellness are twists and turns. There partner to all we serve – explaining your are moments to celebrate – such as hitting a options, guiding you to the right health weight loss goal or lowering blood pressure. care at the right price, and cheering you And moments for worry – such as a scary on when you hit bumps in the road. diagnosis or an unexpected medical bill. Because we’re all stronger together. TABLE OF CONTENTS To our shareholders 2 Guiding customers to better health 10 Joining forces to make health care better for all 12 Driving change through the power of partnerships 16 Cigna in perspective 20 Corporate and Board of Directors 22 TO OUR SHAREHOLDERS The past year was an historic one for Cigna. We delivered a sixth consecutive year of strong financial results. Our focused “Go Deep, Go Global, Go Individual” strategy is continuing to drive growth and operational performance across our portfolio of businesses for the benefit of our global customers, clients and shareholders. 2 LETTER TO OUR SHAREHOLDERS David M. Cordani President and Chief Executive Officer Cigna Corporation Cigna’s 2015 full-year consolidated revenue increased We’ve made significant progress by partnering by eight percent, to approximately $38 billion. with diverse stakeholders to improve health care, Adjusted income from operations1 was $8.66 per share, and yet we believe the current marketplace representing per share growth of ten percent over remains unsustainable. Our proposed combination full-year 2014. We delivered shareholders’ net income with Anthem represents a unique opportunity for for 2015 of $2.1 billion. two companies with highly complementary value propositions to expand choice and access, while This strong financial performance reflects the improving quality and affordability. continued effective execution of our strategic framework implemented six years ago. Over this As we transform challenges into attractive period we achieved compound annual growth opportunities, and consistently execute against of 13 percent for revenues, as well as 13 percent our global strategy, Cigna’s capacity to create for adjusted income from operations per share.1 value, and to improve the health, wellness and Our ability to create ongoing value has driven sense of security of the people and communities Cigna’s stock performance to deliver a total we serve, has never been stronger. shareholder return of more than 300 percent over this same period. In addition, the industry-leading medical cost trend,2 strong margins, and significant free cash flow we have consistently delivered and deployed for the benefit of shareholders, have meaningfully contributed Historic progress. to our long-term record of attractive results. Future expansion. With an eye to the future, we also entered into an agreement to join with Anthem to create a new company that will allow us to further accelerate the transition to a health care system oriented around value-based care.3 3 Strong growth. All-around health services. 2015 PERFORMANCE In 2015, Cigna delivered strong revenue and earnings contributions across our diversified portfolio of business segments, grew our number of global medical customers to 15 million, and now have the privilege of serving more than 90 million customer relationships throughout the world. GLOBAL HEALTH CARE Cigna’s Global Health Care business segment delivers health care, wellness and preventive products and services through medical and specialty solutions for individual customers and employer clients globally. 2015 premiums and fees grew 10 percent to $26.8 billion over full-year 2014, with adjusted income from operations1 of $1.8 billion marking another year of strong results and reflecting consistent, strong performance in this segment. Growing our medical customer base 543,000, or four percent, in 2015 to a total of 15 million customers is a testament to our ability to retain and attract people who benefit from Cigna’s offerings. Organic growth in our Middle Market, International, Select and Medicare segments, as well as the acquisition of QualCare Alliance Networks, contributed to this strong result. 4 LETTER TO OUR SHAREHOLDERS We focus on health improvement and risk management We offer easy to use, affordable and personalized to engage individuals in improving their health and health, life and accident insurance products directly productivity. Critical to this process is the partnering to consumers in Asia and other target markets and sharing of information with physicians who are around the world. incentivized to deliver high quality, more cost-effective health outcomes for individuals. GROUP DISABILITY AND LIFE Cigna also develops personalized solutions that are optimized for delivery at the local level. Our approach Cigna is a leader in productivity optimization to highly aligned incentive and engagement programs programs in the U.S.5 through our group disability, is reflected in our commitment to collaborative care. life and accident insurance operations. As a leader in expatriate benefits for individuals working 2015 results, with premiums and fees from business abroad, we have one of the largest proprietary networks growth increasing eight percent over 2014 to $3.9 billion 4 of health care providers globally, which provides us with and full-year adjusted income from operations1 of the capability to deliver integrated health and wellness $324 million, underscore the ongoing value we products in many parts of the world. deliver across the disability, life and accident lines. Leveraging our medical and specialty products, we offer an integrated value proposition with GLOBAL SUPPLEMENTAL BENEFITS best-in-class return to work results and top-tier Cigna’s rapidly growing Global Supplemental Benefits returns.5 These programs harness Cigna’s innovative business segment delivered attractive growth and and effective solutions to improve the quality of profitability in 2015 on a currency-adjusted basis. This life for individuals, while optimizing productivity segment serves growing middle class and seniors for our employer clients. populations globally with expanding private solutions and innovative direct-to-consumer distribution capabilities. CONFRONTING A DYNAMIC ENVIRONMENT Ongoing customer growth and strong retention was Cigna consistently delivers strong performance reflected in 2015 premium and fees growth of 12 percent, for our stakeholders in an environment characterized excluding the impact of foreign currency movements, by a rapidly evolving health care landscape and 1 to $3 billion, with adjusted income from operations significant global challenges. of $262 million. 5 Innovative thinking. To evolve global health and well-being. Our organization has been adept at recognizing We also work to remain locally relevant. Our inflection point triggers across the markets wellness offerings now feature health assessments where we operate, confronting these challenges, in 30 languages, and we have increased tele-medicine and anticipating and rapidly adapting at an services both in the U.S. and internationally, enhancing early-stage – all with a focus on benefiting our our ability to deliver solutions irrespective of customers and stakeholders across the entire geography or life stage. value chain. By creating and fostering fully transparent ACHIEVING THROUGH COLLABORATION relationships and sharing relevant information with our customers, employers and physicians, we are Cigna was a pioneer in forming highly transparent, guiding individuals in support of their health and collaborative relationships with providers with the aim driving higher levels of communication to enable of improving quality and affordability. Our recognition greater improvement in the quality of clinical care. of the need to improve the unsustainable trajectory of health care spending and accountability of clinical Our efforts to address the unsustainable costs of results has driven investments in research and the health care while meeting consumer expectations implementation of new models that have demonstrated for high quality also apply to our business globally. clear success. Many countries are facing rapidly increasing health care costs alongside increasing demand for high Today, Cigna serves more individuals through quality services as middle class populations surge collaboratives than any of our peers.6 Our now more and life expectancy increases. We believe our than 140 collaborative accountable care arrangements volume-to-value based transition expertise will with large physician groups are improving care and prove valuable to many of the countries in which value for 1.6 million customers in 29 states, with over we provide our products and services. two million served through collaborative relationships in our combined Commercial and Seniors businesses. To meet these emerging needs, Cigna has We partner with more than 65,000 physicians who developed capabilities to serve individuals around generate significant results by delivering the right the world, across broad geographies and complex care, with the right rewards, and the right connections, markets. We invest in the expansion of networks, at the right place, for the benefit of the customer. new product initiatives and wellness programs, while maintaining a strong focus on affordability, cost containment and quality
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