2022 Financial Outlook and Strategic Framework
Definitions of Key Financial and Business Terms
Adjusted margin, pre-tax, is calculated by dividing adjusted income (loss) from operations, pre-tax, by adjusted revenues for each segment.
Adjusted margin, after tax, is calculated by dividing consolidated adjusted income (loss) from operations by consolidated adjusted revenues.
Medical care ratio represents medical costs as a percentage of premiums for all U.S. Commercial risk products, including medical, pharmacy,
dental, stop loss and behavioral products provided through guaranteed cost or experience-rated funding arrangements, as well as Medicare
Advantage, Medicare Part D, Medicare Supplement, and individual on- and off-exchange products, and healthcare products within our
International Health business, within the Cigna Healthcare segment.
SG&A expense ratio represents enterprise selling, general and administrative expenses excluding special items as a percentage of adjusted
revenue at a consolidated level.
Adjusted tax rate is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP
measure, "consolidated effective tax rate". We define adjusted tax rate as the consolidated income tax rate applicable to the Company's pre-tax
income excluding net realized investment results, amortization of acquired intangible assets, and special items. Management is not able to provide
a reconciliation to the consolidated effective tax rate on a forward-looking basis because we are unable to predict, without unreasonable effort,
certain components thereof including (i) future net realized investment results and (ii) future special items.
Total medical customers includes individuals in the Cigna Healthcare segment who meet any one of the following criteria: are covered under a
medical insurance policy, managed care arrangement or service agreement issued by Cigna; have access to Cigna's provider network for covered
services under their medical plan; or have medical claims and services that are administered by Cigna. International Health medical customers
excludes medical customers served by less than 100% owned subsidiaries and customers that are part of the businesses to be sold pursuant to
the previously announced divestiture of the international life, accident, and supplemental benefits businesses.
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