Financial Analysis

Note 14 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, 2026, employers maintained assets that generally exceeded the benefit obligations under these arrangements of approximately $390 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, 2026. 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 Ot …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 6 Debt Short-Term and Long-Term Debt. During the six months ended June 30, 2026, the Company repaid $550 million 1.250% senior notes that matured in March 2026. For more information regarding our short-term and long-term debt, see Note 7 to the Consolidated Financial Statements in the Company's 2025 Form 10-K. Revolving Credit Agreement. The Company maintains 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""). Our 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, 2026, there was no outstanding balance under the Credit Agreement. 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 $1.0 billion outstanding as of June 30, 2026 and an average interest rate of 3.92%. Interest Expense. Interest expense …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 10 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 to the Consolidated Financial Statements in the Company's 2025 Form 10-K. Financial Assets and Financial Liabilities Carried at Fair Value The following table provides information about the Company's investment and derivative financial assets and liabilities carried at fair value on a recurring basis. Further information regarding insurance assets and liabilities carried at fair value is provided in Note 9E to the Consolidated Financial Statements in the Company's 2025 Form 10-K. 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, 2026 December 31, 2025 June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Financial assets at fair value Debt securities Federal government and agency $ 103 $ 105 $ 122 $ 122 $ $ $ 225 $ 227 State and local government 25 25 25 25 Foreign government 464 446 10 464 456 Corporate 7,246 7,133 263 277 7,509 7,410 Mo …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 13 Income Taxes Income Tax Expense. The effective tax rate of 16.9% for the three months ended June 30, 2026 was lower than the effective tax rate of 19.2% for the three months ended June 30, 2025. The decrease was primarily driven by tax benefits related to equity investments and the absence of prior-period charges related to state tax audits. The effective tax rate of 17.5% for the six months ended June 30, 2026 was higher than the effective tax rate of 17.1% for the six months ended June 30, 2025. The increase was primarily due to the absence of a prior-period benefit related to the HCSC transaction, partially offset by the absence of prior-period charges related to state tax audits. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements The Company's 2025 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 to significant accounting pronouncements recently adopted that have occurred since the Company filed its 2025 Form 10-K. There are no incremental significant accounting pronouncements recently issued and not yet adopted that are expected to impact our operations or financial statements beyond those described in the Company's 2025 Form 10-K . The Company continues to progress with its adoption plans, with no significant updates since the 2025 Form 10-K.

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Note 12 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. The Company expects that the program will continue through 2028 and is continuing to evaluate additional opportunities to improve the overall efficiency and effectiveness of our operations. The program includes 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. During the three and six months ended June 30, 2026, we reported total costs of $70 million ($53 million after-tax) and $450 million ($343 million after-tax), respectively, associated with this initiative, compared with $129 million ($98 million after-tax) and $344 million ($261 million after-tax), respectively, for the three and six months ended June 30, 2025. The total costs for the three and six months ended June 30, 2026 included $69 million and $446 million, respectively, pre-tax in Selling, general and administrative expenses, which was primarily associated with severance ($33 million and $370 million, respectively). Comparatively, the total costs for the three and six months ended June 30, 2025 included $88 million and $286 million, respectively, pre-tax in Selling, general and administrative expenses, which was primarily associated with sever …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Note 15 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 President and Chief Executive Officer is the chief operating decision maker (""CODM"") responsible for making decisions about resources to be allocated to each 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 underl …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"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 goodwill and other intangible assets amounts in the Consolidated Balance Sheet were reclassified in the first quarter of 2026. Amounts as of June 30, 2026 continue to reflect the reclassified presentation. 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. The interim Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes included in the Company's …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing