The Cigna Group · NYSE:CI
The Cigna — Cigna — Jefferies 2012 Global Healthcare Conference
19 slides from The Cigna's conference presentation, Jun 4, 2012
Slide 1: Cigna Corporation Jefferies 2012 Global Healthcare Conference
Cigna Corporation Jefferies 2012 Global Healthcare Conference Matt Manders President, U.S. Regional and Operations June 4, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Cigna Corporation and its subsidiaries (the “Company”) and its representatives may from time to time make written and oral forward-looking statements,
Slide 3: Agenda
Agenda Cigna Overview Financial Highlights 2013 and Beyond Investor Considerations Financial information is provided as of the dates referenced herein only. Cigna does not undertake to revise or update this information. Confidential, unpublished property of Cigna. Do not duplicate or distrib
Slide 4: Overview
Overview Our Mission To improve the health, well-being and sense of security of the people we serve Our Strategy Go Deep within existing geographies and products, Go Global to offer solutions in adjacent and new markets and Go Individual to serve the holistic needs of an individual Differentiated Va
Slide 5: Differentiated Portfolio of Health Related Businesses
Differentiated Portfolio of Health Related Businesses What We Offer… Our Results from Ongoing Operations … (1) (Customer Relationships) Operating Revenues Earnings Medical (Global) +9% +5% $1.5B 13.9M $21.3B Group International Disability & Life HL&A 11.0M 8.8M Behavioral Pharmacy 2008 2011 2008 201
Slide 6: U.S. Health Care – Commercial and Medicare
U.S. Health Care – Commercial and Medicare Business Overview / How We Win Focus on customer health improvement and health risk management Consultative sales force Providing information and incentivizing physicians to drive better, more cost- effective health outcomes Strong national franchis
Slide 7: Cigna & HealthSpring: Aligned Strategic Visions
Cigna & HealthSpring: Aligned Strategic Visions Cigna’s Value HealthSpring’s Proposition Value Add • Putting the Commercial • History of innovation customer first and success with new care delivery • Innovating to make Consultative History of models health care more Selling Innovation affordable • L
Slide 8: Cigna & HealthSpring: Long-term growth and Value Creation
Cigna & HealthSpring: Long-term growth and Value Creation 1 Accelerating growth for HealthSpring’s existing business Leveraging our combined customer footprint to accelerate geographic 2 expansion Leveraging Cigna’s specialty and clinical capabilities for the benefit of 3 HealthSpring’s customer bas
Slide 9: International
International Business Overview / How We Win Rapidly growing health-related business segment 8.8 million customer relationships / 30 countries and jurisdictions Health, Life & Accident Leading innovative, direct to consumer distribution capabilities (over 200 affinity partners, 8,500 telemarke
Slide 10: Group Disability and Life
Group Disability and Life Business Overview / How We Win Leader in productivity optimization programs Integrated value proposition that leverages medical and specialty products to improve productivity Investing in capabilities to establish a leading position in total absence management Best-
Slide 11: Go Deep. Go Global. Go Individual.
Growth Strategy Focus on key geographies, segments and products where we are most competitive Broaden product portfolio and distribution channels Go Deep. Expand into new geographies Leverage competencies across business lines Expand offerings that address the needs of a globally mobile po
Slide 12: Financial Highlights
(1) Financial Highlights First Quarter Results • Exceeded our expectations for earnings and medical customer growth (1) • Consolidated operating revenue growth of 27% to $6.9B (1) (1) • Consolidated adjusted income of $359 million, or EPS of $1.24 • 1.2M medical customer growth • Solid contributions
Slide 13: Updated 2012 Earnings Outlook
(1) Updated 2012 Earnings Outlook ($ in millions, except per share amounts) Raised outlook for higher earnings and customer growth (1) Estimated Earnings Y/Y 2012 Health Care $1,190 – $1,260 20% – 27% International 265 – 285 19% – 28% Group Disability & Life 260 – 280 (8)% – (1)% Ongoing Businesses
Slide 14: Growth Opportunities: 2013 and Beyond
Growth Opportunities: 2013 and Beyond Growth Opportunities U.S. Medicare/ Seniors U.S. Individual/ Commercial HealthCare International Retail Potential Mid- High Mid- Meaningful Mid- Revenue Single Single Teens Future single Growth to Low ? Opportunity Double Increasing Demand Growing Growing Middle
Slide 15: Investor Considerations
Investor Considerations Clear competitive advantages in each of our ongoing businesses Differentiated portfolio of health related businesses well positioned in growing markets and segments Strong revenue and earnings results in each of our ongoing businesses Strong return on capital and free
Slide 16: Appendix
Appendix ‘\é Cigna.
Slide 17: Appendix: Reconciliation to GAAP
Appendix: Reconciliation to GAAP Reconciliation of Non-GAAP to GAAP Financial Measures (Dollars in millions, except per share amounts) U.S. Health Group Total Diluted EPS Care International Disability & Life Ongoing Ops. Consolidated Consolidated Year Ended December 31, 2008 Adjusted income from ope
Slide 18: Appendix: Reconciliation to GAAP
Appendix: Reconciliation to GAAP Three Months Ended March 31, 2012 2011 REVENUES Premiums and fees $ 6,141 $ 4,733 Net investment income 288 279 Mail order pharmacy revenues 386 339 Other revenues 55 74 Total operating revenues 6,870 5,425 Run-off Reinsurance hedge losses (95) (40) Net realized inve
Slide 19: Cigna Corp.
Cigna Corp. Matt Manders President, U.S. Regional and Operations