Analysis of Reportable Segments
Cigna Group operates in 3 segments: Evernorth Health Services; Cigna Healthcare; and Other Operations.
Paying user area
Try for free
Cigna Group pages available for free this week:
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Cigna Group for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Segment Profit Margin
Cigna Group, profit margin by reportable segment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Evernorth Health Services | |||||
| Cigna Healthcare | |||||
| Other Operations |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Evernorth Health Services Profit Margin Trend
- The profit margin for Evernorth Health Services exhibits a consistent downward trend over the five-year period. Starting at 4.62% in 2020, the margin slightly declined year-on-year to reach 3.46% by 2024. This gradual decrease suggests increasing cost pressures or reduced profitability within this segment.
- Cigna Healthcare Profit Margin Trend
- Cigna Healthcare's profit margin fluctuates but generally trends downward from 2020 to 2024. Beginning at 9.8% in 2020, the margin decreased to 8.08% in 2021, rebounded somewhat to 9.04% in 2022, then showed a steady decline again to 7.99% by 2024. This pattern indicates intermittent performance challenges, though the segment maintained relatively higher margins compared to Evernorth Health Services.
- Other Operations Profit Margin Trend
- The Other Operations segment shows significant volatility in profit margin. The margin more than doubled from 11.44% in 2020 to 22.29% in 2021, and remained around 22.1% in 2022. However, a sharp decline occurred in 2023, with the margin falling to 16.11%, followed by a dramatic downturn into negative territory at -1.09% in 2024. This trend reflects high variability in profitability, culminating in a loss in the most recent period, which may warrant further investigation into operational or market factors affecting this segment.
Segment Profit Margin: Evernorth Health Services
Cigna Group; Evernorth Health Services; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax adjusted income (loss) from operations | |||||
| Adjusted revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Pre-tax adjusted income (loss) from operations ÷ Adjusted revenues
= 100 × ÷ =
- Pre-tax adjusted income (loss) from operations
- The pre-tax adjusted income from operations has exhibited a consistent upward trend over the five-year period. Starting at $5,363 million in 2020, it increased each consecutive year, reaching $7,001 million in 2024. This steady growth indicates improving operational profitability at the segment level.
- Adjusted revenues
- Adjusted revenues demonstrated significant growth throughout the analyzed timeframe. Beginning with $116,130 million in 2020, revenues increased each year, with particularly notable growth between 2023 and 2024, where revenues surged from $153,499 million to $202,155 million. This sharp increase might reflect expansion, increased sales volume, or pricing adjustments.
- Segment profit margin
- The segment profit margin shows a gradual decline over the period. It decreased from 4.62% in 2020 to 3.46% in 2024. Despite growing absolute profitability and revenues, the declining margin indicates that costs or expenses may be rising at a faster rate relative to revenue, or pricing pressures could be impacting profitability relative to sales.
- Overall insights
- While the segment has achieved higher revenues and growing pre-tax adjusted income over time, the consistent decrease in profit margin points to potential efficiency challenges or increased competitive pressure. Monitoring cost structures and identifying drivers behind margin compression would be essential to sustain profitability alongside revenue growth.
Segment Profit Margin: Cigna Healthcare
Cigna Group; Cigna Healthcare; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax adjusted income (loss) from operations | |||||
| Adjusted revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Pre-tax adjusted income (loss) from operations ÷ Adjusted revenues
= 100 × ÷ =
- Revenue Trends
- The adjusted revenues show a consistent upward trend over the five-year period. Starting at 41,135 million US dollars in 2020, revenues increased each year, reaching 52,914 million US dollars by the end of 2024. This represents substantial growth, particularly notable between 2022 and 2023 where revenue jumped by over 5 billion US dollars.
- Pre-tax Adjusted Income (Loss) from Operations
- Despite a slight dip in 2021, pre-tax adjusted income from operations exhibited an overall positive trend. Income decreased from 4,031 million US dollars in 2020 to 3,609 million US dollars in 2021 but rebounded to 4,072 million in 2022. This upward momentum continued into 2023, peaking at 4,478 million US dollars before slightly declining to 4,229 million US dollars in 2024. The fluctuations indicate some operational challenges but overall resilience in income generation capacity.
- Segment Profit Margin
- The segment profit margin experienced variability with a general downward trend over the observed period. Beginning at 9.8% in 2020, the margin fell sharply to 8.08% in 2021. It recovered partially to 9.04% in 2022 and slightly declined to 8.75% in 2023 before dropping again to the lowest level of 7.99% in 2024. This decline in profit margin despite increasing revenues and income suggests rising costs or weakening profitability efficiency within the segment.
- Summary of Insights
- The data indicates strong revenue growth and a relatively stable but fluctuating income from operations. However, the decreasing profit margin over time could signal increased expenses or pricing pressures that may be impacting profitability. While operational income remains robust, the margin trend warrants attention for cost control and efficiency improvements to sustain long-term profitability.
Segment Profit Margin: Other Operations
Cigna Group; Other Operations; segment profit margin calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Pre-tax adjusted income (loss) from operations | |||||
| Adjusted revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Segment profit margin = 100 × Pre-tax adjusted income (loss) from operations ÷ Adjusted revenues
= 100 × ÷ =
The financial performance of the "Other Operations" segment exhibits significant fluctuations across the reviewed periods. Within pre-tax adjusted income from operations, a marked decline is observed, starting from a positive US$966 million in 2020 and decreasing steadily to a negative figure of US$9 million by 2024. This trajectory indicates growing operational challenges or increased expenses impacting profitability over time.
Adjusted revenues also demonstrate a pronounced downward trend, falling considerably from US$8,446 million in 2020 to a low of US$596 million in 2023, with a modest recovery to US$828 million in 2024. This reduction suggests either a contraction in the segment’s business volume or pricing pressures adversely affecting top-line growth.
Correspondingly, the segment profit margin showcases variability with a peak of 22.29% in 2021, sustained near this level at 22.1% in 2022, but declining sharply thereafter to 16.11% in 2023 and dipping into negative territory at -1.09% in 2024. The negative profit margin in the most recent year underlines operational inefficiencies or revenue pressures surpassing cost controls.
- Pre-tax adjusted income (loss) from operations
- Progressive decline from a robust profit in 2020 to a slight loss in 2024, indicating deteriorating operational profitability.
- Adjusted revenues
- Substantial decrease over the five-year span with minor recovery in 2024, pointing to diminished segment size or revenues.
- Segment profit margin
- Volatile performance with a strong margin during 2021–2022 followed by a sharp fall and eventual loss in 2024, reflecting worsening cost-to-revenue dynamics.
Overall, the segment's financial data depict a declining trend in both revenue generation and profitability, highlighting potential areas for strategic review and efficiency improvement to restore growth and stabilize margins.
Adjusted revenues
Cigna Group, adjusted revenues by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Evernorth Health Services | |||||
| Cigna Healthcare | |||||
| Other Operations | |||||
| Corporate and eliminations | |||||
| Total |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Overall Revenue Trend
- The total adjusted revenues exhibited consistent growth over the five-year period, increasing from $160.1 billion in 2020 to $247.1 billion in 2024. This represents a substantial rise, particularly notable in the final year.
- Evernorth Health Services Segment
- The Evernorth Health Services segment showed a steady annual increase in revenues. Starting at $116.1 billion in 2020, it grew continuously each year, culminating in a significant surge to $202.2 billion in 2024. The acceleration in growth during the last year leads to the segment becoming a more dominant contributor to overall revenues.
- Cigna Healthcare Segment
- The Cigna Healthcare segment displayed moderate but consistent revenue growth. Revenues increased from $41.1 billion in 2020 to $52.9 billion by 2024. The growth pace was relatively steady, without abrupt fluctuations, highlighting stable expansion within this segment.
- Other Operations Segment
- Revenues in Other Operations experienced a marked decline from $8.4 billion in 2020 to $0.8 billion in 2024. This segment’s contribution diminished progressively each year, indicating either divestitures, restructuring, or reduced business activity in these areas.
- Corporate and Eliminations
- The Corporate and eliminations line consistently reflected negative values, rising in magnitude from -$5.6 billion in 2020 to a peak of -$10.0 billion in 2023 before slightly improving to -$8.8 billion in 2024. This suggests growing adjustments or internal offsets that negatively impacted the consolidated revenues over the period.
- Segment Contribution Dynamics
- Evernorth Health Services increasingly dominated the revenue profile, especially by 2024, where it contributed the largest share. Cigna Healthcare maintained a steady share but did not grow as rapidly. The decline in Other Operations reduced its impact on total revenues. The negative effect of Corporate and eliminations grew but saw slight reduction in the final year, hinting at some operational or accounting changes.
- Summary
- The revenue data reflect a strategic concentration in Evernorth Health Services, which demonstrated robust expansion. Cigna Healthcare sustained moderate growth, while Other Operations contracted significantly. The overall financial structure showed growing internal eliminations or corporate level deductions, slightly easing in the last year. These patterns indicate a focused business model evolution with significant investment or success in health services, amidst diminishing peripheral operations.
Pre-tax adjusted income (loss) from operations
Cigna Group, pre-tax adjusted income (loss) from operations by reportable segment
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Evernorth Health Services | |||||
| Cigna Healthcare | |||||
| Other Operations | |||||
| Corporate and eliminations | |||||
| Total |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Analysis of the annual reportable segment pre-tax adjusted income (loss) from operations indicates several notable trends across the periods from December 31, 2020, to December 31, 2024.
- Evernorth Health Services
- The pre-tax adjusted income shows a consistent upward trajectory over the five-year span. It increased steadily from $5,363 million in 2020 to $7,001 million in 2024. This reflects a positive growth trend indicating operational strength and potentially expanding market presence or improved profitability within this segment.
- Cigna Healthcare
- This segment exhibits more variability compared to Evernorth Health Services. The income declined from $4,031 million in 2020 to $3,609 million in 2021, then recovered to $4,072 million in 2022, followed by further growth to $4,478 million in 2023. However, there is a slight decline again in 2024 to $4,229 million. Despite these fluctuations, the segment's overall income remains relatively stable with moderate growth after the initial dip.
- Other Operations
- The income from Other Operations demonstrates a sharp downward trend during the observed period. Starting at $966 million in 2020, it decreased consistently each year to reach a negative value of -$9 million in 2024. This decline suggests challenges within this segment, possibly due to operational inefficiencies, divestitures, or increased costs that have not been offset by revenue.
- Corporate and Eliminations
- The data reveal negative values throughout the entire period, reflecting ongoing costs or adjustments attributable to the corporate segment and inter-segment eliminations. The losses decreased from -$1,552 million in 2020 to -$1,339 million in 2021 but then increased again, reaching -$1,698 million in 2023 and slightly improving to -$1,688 million in 2024. This volatility in negative contributions suggests fluctuating corporate expenses or changes in elimination entries impacting overall profitability.
- Total
- The total pre-tax adjusted income experienced a generally positive, upward trend across the periods. It rose from $8,808 million in 2020 to $9,533 million in 2024. The steady increase, although moderate, indicates overall growth in combined segment performance, supported mainly by the gains in Evernorth Health Services and the recovery within Cigna Healthcare, partially offset by losses in Other Operations and Corporate and Eliminations.