PAGE


  Executive Overview                       38
  Liquidity and Capital Resources          44
  Critical Accounting Estimates            47
  Segment Reporting                        47
  Evernorth                                47
  Cigna Healthcare                         49
  Other Operations                         52
  Corporate                                52
  Investment Assets                        53



Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") is intended to provide information to assist you in better
understanding and evaluating our financial condition as of June 30, 2022,
compared with December 31, 2021 and our results of operations for the three and
six months ended June 30, 2022, compared with the same periods last year and is
intended to help you understand the ongoing trends in our business. We encourage
you to read this MD&A in conjunction with our Consolidated Financial Statements
included in Part I, Item 1 of this Form 10-Q and our Annual Report on Form 10-K
for the year ended December 31, 2021 ("2021 Form 10-K"). In particular, we
encourage you to refer to the "Risk Factors" contained in Part I, Item 1A of the
2021 Form 10-K.

Unless otherwise indicated, financial information in this MD&A is presented in
accordance with accounting principles generally accepted in the United States of
America ("GAAP"). See Note 2 to the Consolidated Financial Statements in our
2021 Form 10-K for additional information regarding the Company's significant
accounting policies and see Note 2 to the Consolidated Financial Statements in
this Form 10-Q for updates to those policies resulting from adopting new
accounting guidance, if any. The preparation of interim consolidated financial
statements necessarily relies heavily on estimates. This and certain other
factors call for caution in estimating full-year results based on interim
results of operations. In some of our financial tables in this MD&A, we present
either percentage changes or "N/M" when those changes are so large as to become
not meaningful. Changes in percentages are expressed in basis points ("bps").

In this MD&A, our consolidated measures "adjusted income from operations,"
earnings per share on that same basis and "adjusted revenues" are not determined
in accordance with GAAP and should not be viewed as substitutes for the most
directly comparable GAAP measures of "shareholders' net income," "earnings per
share" and "total revenues." We also use pre-tax adjusted income (loss) from
operations and adjusted revenues to measure the results of our segments.

The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted
revenues" as its principal financial measures of segment operating performance
because management believes these metrics best reflect the underlying results of
business operations and permit analysis of trends in underlying revenue,
expenses and profitability. We define adjusted income from operations as
shareholders' net income (or income before income taxes less pre-tax income/loss
attributable to noncontrolling interests for the segment metric) excluding net
realized investment results, amortization of acquired intangible assets, and
special items. Cigna's share of certain realized 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 believes
are not representative of the underlying results of operations due to their
nature or size. Adjusted income (loss) from operations is measured on an
after-tax basis for consolidated results and on a pre-tax basis for segment
results. Consolidated adjusted income (loss) from operations is not determined
in accordance with GAAP and should not be viewed as a substitute for the most
directly comparable GAAP measure, shareholders' net income. See the below
Financial Highlights section for a reconciliation of consolidated adjusted
income from operations to shareholders' net income.

The Company defines adjusted revenues as total revenues excluding the following
adjustments: special items and Cigna's share of certain realized investment
results of its joint ventures reported in the Cigna Healthcare segment using the
equity method of accounting. Special items are matters that management believes
are not representative of the underlying results of operations due to their
nature or size. We exclude these items from this measure because management
believes they are not indicative of past or future underlying performance of the
business. Adjusted revenues is not determined in accordance with GAAP and should
not be viewed as a substitute for the most directly comparable GAAP measure,
total revenues. See the below Financial Highlights section for a reconciliation
of consolidated adjusted revenues to total revenues.
                                       37

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS



This report contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements are
based on Cigna's current expectations and projections about future trends,
events and uncertainties. These statements are not historical facts.
Forward-looking statements may include, among others, statements concerning
future financial or operating performance, including our ability to deliver
affordable, predictable and simple solutions for our customers and clients,
including in light of the challenges presented by the COVID-19 pandemic; future
growth, business strategy, and strategic or operational initiatives; economic,
regulatory or competitive environments, particularly with respect to the pace
and extent of change in these areas and the impact of developing inflationary
pressures; the ongoing Russia-Ukraine conflict; financing or capital deployment
plans and amounts available for future deployment; our prospects for growth in
the coming years; strategic transactions, including the sale of our
international life, accident and supplemental benefits businesses; and other
statements regarding Cigna's future beliefs, expectations, plans, intentions,
liquidity, cash flows, financial condition or performance. You may identify
forward-looking statements by the use of words such as "believe," "expect,"
"project," "plan," "intend," "anticipate," "estimate," "predict," "potential,"
"may," "should," "will" or other words or expressions of similar meaning,
although not all forward-looking statements contain such terms.

Forward-looking statements are subject to risks and uncertainties, both known
and unknown, that could cause actual results to differ materially from those
expressed or implied in forward-looking statements. Such risks and uncertainties
include, but are not limited to: our ability to achieve our strategic and
operational initiatives; our ability to adapt to changes in an evolving and
rapidly changing industry; our ability to compete effectively, differentiate our
products and services from those of our competitors and maintain or increase
market share; price competition, inflation and other pressures that could
compress our margins or result in premiums that are insufficient to cover the
cost of services delivered to our customers; the potential for actual claims to
exceed our estimates related to expected medical claims; our ability to develop
and maintain satisfactory relationships with physicians, hospitals, other health
service providers and with producers and consultants; our ability to maintain
relationships with one or more key pharmaceutical manufacturers or if payments
made or discounts provided decline; changes in the pharmacy provider marketplace
or pharmacy networks; changes in drug pricing or industry pricing benchmarks;
political, legal, operational, regulatory, economic and other risks that could
affect our multinational operations; the scale, scope and duration of the
COVID-19 pandemic and its potential impact on our business, operating results,
cash flows or financial condition; risks related to strategic transactions and
realization of the expected benefits of such transactions, including with
respect to the sale of our international life, accident and supplemental
benefits businesses, as well as integration or separation difficulties or
underperformance relative to expectations; dependence on success of
relationships with third parties; risk of significant disruption within our
operations or among key suppliers or third parties; our ability to invest in and
properly maintain our information technology and other business systems; our
ability to prevent or contain effects of a potential cyberattack or other
privacy or data security incident; potential liability in connection with
managing medical practices and operating pharmacies, onsite clinics and other
types of medical facilities; the substantial level of government regulation over
our business and the potential effects of new laws or regulations or changes in
existing laws or regulations; uncertainties surrounding participation in
government-sponsored programs such as Medicare; the outcome of litigation,
regulatory audits and investigations; compliance with applicable privacy,
security and data laws, regulations and standards; potential failure of our
prevention, detection and control systems; unfavorable economic and market
conditions, including the risk of a recession or other economic downturn and
resulting impact on employment metrics, stock market or interest rate declines
and risks related to a downgrade in financial strength ratings of our insurance
subsidiaries; the impact of our significant indebtedness and the potential for
further indebtedness in the future; unfavorable industry, economic or political
conditions; credit risk related to our reinsurers; as well as more specific
risks and uncertainties discussed in Part I, Item 1A - Risk Factors of our 2021
Form 10-K, Part II, Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operations of our 2021 Form 10-K, and as described from
time to time in our future reports filed with the Securities and Exchange
Commission.

You should not place undue reliance on forward-looking statements, which speak
only as of the date they are made, are not guarantees of future performance or
results and are subject to risks, uncertainties and assumptions that are
difficult to predict or quantify. Cigna undertakes no obligation to update or
revise any forward-looking statement, whether as a result of new information,
future events or otherwise, except as may be required by law.

EXECUTIVE OVERVIEW

Cigna Corporation, together with its subsidiaries (either individually or
collectively referred to as "Cigna," the "Company," "we," "our" or "us") is a
global health services organization with a mission of helping those we serve
improve their health, well-being and peace of mind by making health care
affordable, predictable and simple. Our subsidiaries offer a differentiated set
of pharmacy, medical, dental and related products and services. For further
information on our business and strategy, see Item 1, "Business" in our 2021
Form 10-K.

                                       38

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Financial Highlights



See Note 1 to the Consolidated Financial Statements for a description of our
segments. The commentary provided below describes our results for the three and
six months ended June 30, 2022 compared with the same periods in 2021. Unless
specified otherwise, commentary applies to both the three and six month periods.

Summarized below are certain key measures of our performance by segment for the three and six months ended June 30, 2022 and 2021: Financial highlights by segment


                                                          Three Months Ended June 30,                                     Six Months Ended June 

30,


(Dollars in millions, except per share
amounts)                                           2022                 2021             % Change                     2022                2021                     % Change

Revenues
Adjusted revenues by segment
Evernorth                                    $       34,863          $ 32,592                7      %           $      68,449          $ 63,212                     8     %
Cigna Healthcare                                     11,337            11,149                2                         22,729            22,216                     2
Other Operations                                        948               990               (4)                         1,927             1,995                    (3)
Corporate, net of eliminations                       (1,717)           (1,624)              (6)                        (3,566)           (3,331)                   (7)
Adjusted revenues                                    45,431            43,107                5                         89,539            84,092                     6

Net realized investment results from
certain equity method investments                        49                24              104                            (54)               10                       N/M

Total revenues                               $       45,480          $ 43,131                5      %           $      89,485          $ 84,102                     6     %
Shareholders' net income                     $        1,559          $  1,467                6      %           $       2,742          $  2,628                     4     %
Adjusted income from operations              $        1,981          $  1,808               10      %           $       3,912          $  3,472                    13     %
Earnings per share (diluted)
Shareholders' net income                     $         4.90          $   4.25               15      %           $        8.57          $   7.54                    14     %
Adjusted income from operations              $         6.22          $   5.24               19      %           $       12.23          $   9.96                    23     %
Pre-tax adjusted income (loss) from operations by segment
Evernorth                                    $        1,475          $  1,413                4      %           $       2,777          $  2,636                     5     %
Cigna Healthcare                                      1,240             1,049               18                          2,519             2,091                    20
Other Operations                                        233               215                8                            459               446                     3
Corporate, net of eliminations                         (401)             (344)             (17)                          (744)             (698)                   (7)
Consolidated pre-tax adjusted income
from operations                                       2,547             2,333                9                          5,011             4,475                    12

Income attributable to noncontrolling
interests                                                15                11               36                             32                23                    39
Net realized investment gains (losses)
(1)                                                     (46)               83                   N/M                      (468)               70                       N/M
Amortization of acquired intangible
assets                                                 (501)             (503)               -                           (959)             (998)                    4
Special items                                           (30)              (26)             (15)                           (82)             (159)                   48
Income before income taxes                   $        1,985          $  1,898                5      %           $       3,534          $  3,411                     4     %


(1) Includes the Company's share of certain realized investment results of its
joint ventures reported in the Cigna Healthcare segment using the equity method
of accounting.

For further analysis and explanation of each segment's results, see the "Segment Reporting" section of this MD&A.


                                       39

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Consolidated Results of Operations (GAAP basis)


                                                             Three Months Ended                                        Six Months Ended
                                                                  June 30,                                                 June 30,
(Dollars in millions)                        2022               2021                 % Change                 2022              2021                             % Change

Pharmacy revenues                        $   31,972          $ 30,047                 6     %              $ 62,669          $ 58,072                            8     %
Premiums                                     10,426            10,323                 1                      20,782            20,537                            1
Fees and other revenues                       2,757             2,451                12                       5,295             4,792                           10
Net investment income                           325               310                 5                         739               701                            5
Total revenues                               45,480            43,131                 5                      89,485            84,102                            6
Pharmacy and other service costs             31,150            29,001                 7                      60,963            56,236                   

8


Medical costs and other benefit
expenses                                      8,192             8,484                (3)                     16,460            16,489                            -
Selling, general and
administrative expenses                       3,256             2,996                 9                       6,555             6,275                            4
Amortization of acquired
intangible assets                               501               503                 -                         959               998                           (4)
Total benefits and expenses                  43,099            40,984                 5                      84,937            79,998                            6
Income from operations                        2,381             2,147                11                       4,548             4,104                           11
Interest expense and other                     (301)             (298)               (1)                       (600)             (612)                           2
Debt extinguishment costs                         -               (10)                  N/M                       -              (141)                             N/M

Net realized investment gains
(losses)                                        (95)               59                   N/M                    (414)               60                              N/M
Income before income taxes                    1,985             1,898                 5                       3,534             3,411                            4
Total income taxes                              413               422                (2)                        764               764                            -
Net income                                    1,572             1,476                 7                       2,770             2,647                            5
Less: Net income attributable to
noncontrolling interests                         13                 9                44                          28                19                           47
Shareholders' net income                 $    1,559          $  1,467                 6     %              $  2,742          $  2,628                            4     %
Consolidated effective tax rate                20.8    %         22.2    %         (140)    bps                21.6        %     22.4    %                     (80)    bps
Medical customers (in thousands)                                                                             17,806            16,921                   

5 %




Reconciliation of Shareholders' Net Income (GAAP) to Adjusted Income from Operations
                                                                     Dollars in Millions                                               Diluted Earnings Per Share
                                                   Three Months Ended                     Six Months Ended                            Three Months Ended                     Six Months Ended
                                                        June 30,                              June 30,                                     June 30,                              June 30,

                                                  2022                2021              2022              2021                       2022                2021              2022              2021
Shareholders' net income                    $    1,559             $ 1,467          $   2,742          $ 2,628                $     4.90               $ 4.25          $     8.57          $ 7.54
After-tax adjustments required to reconcile to adjusted income from operations
Net realized investment (gains)
losses (1)                                          16                 (70)               371              (57)                     0.05                (0.20)               1.16           (0.16)
Amortization of acquired intangible
assets                                             383                 388                739              776                      1.20                 1.12                2.31            2.22

Special items
Integration and transaction-related
costs                                               26                  14                 63               36                      0.08                 0.04                0.20            0.10
Charge for organizational efficiency
plan                                                17                   -                 17                -                      0.05                    -                0.05               -
Charges (benefits) associated with
litigation matters                                 (20)                  -                (20)             (21)                    (0.06)                   -               (0.06)          (0.06)
Debt extinguishment costs                            -                   9                  -              110                         -                 0.03                   -            0.32

Total special items                                 23                  23                 60              125                      0.07                 0.07                0.19            0.36
Adjusted income from operations             $    1,981             $ 1,808          $   3,912          $ 3,472                $     6.22

$ 5.24 $ 12.23 $ 9.96




(1) Includes the Company's share of certain realized investment results of its
joint ventures reported in the Cigna Healthcare segment using the equity method
of accounting.

                                       40

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Recent Events

Inflation

The United States economy continues to be impacted by rising inflation. We have
not experienced material impacts from inflation on our results of operations or
cash flows for the three and six months ended June 30, 2022. We continue to
monitor our operations, including vendor costs, health care provider costs and
drug pricing for any inflationary impacts, and believe we are prepared to
respond to inflationary pressures. For further information regarding risks we
encounter in our business due to economic conditions including inflationary
pressures, see "Risk Factors" contained in Part I, Item 1A of our 2021 Form
10-K.

Russian Invasion of Ukraine



The war in Ukraine has significantly affected individuals, economic activity and
financial markets on a global scale. Cigna does not have operations or employees
in Ukraine or Russia and serves a limited number of customers and clients in
these countries. We have not experienced significant impacts to date on our
investment portfolio, financial position, or results of operations. For a more
complete discussion of the risks we encounter in our business, see "Risk
Factors" contained in Part I, Item 1A of our 2021 Form 10-K.

COVID-19



Cigna's commitment to the health, well-being and peace of mind of our employees
and the people we serve remains our focus as the pandemic environment evolves.
We continue to leverage our resources, expertise, data and actionable
intelligence to assist customers, clients and care providers throughout this
time.

The situation surrounding COVID-19 remains fluid with continued uncertainty and
a wide range of potential outcomes. We continue to actively manage our response
and assess impacts to our financial position and operating results, as well as
mitigate adverse developments in our business. For further information regarding
the potential impact of COVID-19 on the Company, see "Risk Factors" contained in
Part I, Item 1A of our 2021 Form 10-K.

Commentary: Three and Six Months Ended June 30, 2022 versus Three and Six Months Ended June 30, 2021

The commentary presented below, and in the segment discussions that follow, compare results for the three and six months ended June 30, 2022 with results for the three and six months ended June 30, 2021.



Shareholders' net income increased, reflecting strong growth in adjusted income
from operations (as discussed below) and, for the six month period, the absence
in 2022 of debt extinguishment costs incurred in 2021. These favorable effects
were partially offset by higher realized investment losses primarily due to
unfavorable mark-to-market adjustments on investments in 2022.

Adjusted income from operations increased, primarily due to improved results in
Cigna Healthcare, primarily reflecting lower medical care ratios and increased
specialty contributions, and in Evernorth, primarily reflecting continued
contract affordability improvements and business growth.

Medical customers increased, reflecting growth in our Middle Market, Select and
International Health market segments. See "Cigna Healthcare segment" section of
this MD&A for discussion of an update to the definitions of U.S. Commercial's
market segments.

Pharmacy revenues increased, reflecting higher specialty claims volume due in
part to Evernorth's collaboration with Prime Therapeutics, as well as increased
prices, primarily due to inflation on branded drugs. See the "Evernorth segment"
section of this MD&A for further discussion.

Premiums were higher, reflecting increased specialty contributions and higher
premium rates due to anticipated underlying medical cost trend, partially offset
by the disposition of the Medicaid business. See "Cigna Healthcare segment"
section of this MD&A for further discussion.

Fees and other revenues increased, primarily reflecting customer growth from our
Pharmacy Rebate Program services. See "Evernorth segment" section of this MD&A
for further discussion.

Net investment income increased primarily due to strong returns on our partnership investments. See the "Investment Assets" section of this MD&A for further discussion.



                                       41

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Pharmacy and other service costs increased, reflecting higher specialty claims
volume due in part to Evernorth's collaboration with Prime Therapeutics, as well
as increased prices, primarily due to inflation on branded drugs.

Medical costs and other benefit expenses decreased for the three and six months
ended June 30, 2022, reflecting reduced customers in our U.S. Government
business, primarily resulting from the disposition of the Medicaid business.
Decreases also reflect lower direct COVID-19 costs and are partially offset by
medical cost trend. See "Cigna Healthcare segment" section of this MD&A for
further discussion.

Selling, general and administrative expenses increased for the three months
ended June 30, 2022, compared with the same period last year, primarily due to
the absence of favorable litigation developments recorded in the second quarter
of 2021 and, to a lesser extent, an increase in expenses associated with
business growth. For the six months ended June 30, 2022, the increase was
primarily driven by expenses associated with business growth.

Interest expense and other was essentially flat.

Debt extinguishment costs declined as no debt was retired early in the first six months of 2022.

Realized investment results were lower, primarily due to unfavorable mark-to-market adjustments on investments in 2022. See Note 11 to the Consolidated Financial Statements for further discussion.



The effective tax rate decreased, driven by favorable results relative to our
foreign operations and for the six months ended June 30, 2022 the favorable
impact of the remeasurement of deferred taxes, partially offset by the absence
of the favorable impact of non-recurring items recorded in 2021.

Developments

Kaiser Permanente



In April 2022, we entered into a five-year agreement with Kaiser Permanente
aimed at delivering increased convenience, affordability and expanded access to
high-quality care for Kaiser Permanente members. Initially, the agreement will
focus on providing Kaiser Permanente and its members access to:

•Cigna's Preferred Provider Organization ("PPO") provider network for Kaiser
Permanente members who need urgent or emergency care and are traveling outside
of Kaiser Permanente's service areas, and
•specialty pharmacy services through Evernorth's Accredo specialty pharmacy and
Evernorth's CuraScript SD.

The agreement has the potential to extend in additional areas.

Organizational Efficiency Plan



As discussed in Note 15 to the Consolidated Financial Statements, during the
fourth quarter of 2021, the Company approved a strategic plan to drive
operational efficiencies. We believe this plan, coupled with the divestiture of
the international life, accident and supplemental health benefits businesses
(described below), will further leverage the Company's ongoing growth to drive
operational efficiency through enhancements to organizational structure and
increased use of automation and shared services. In connection with these plans,
Cigna updated its reporting segments to align with the new business reporting
structure and recognized a charge in the fourth quarter of 2021 in the amount of
$168 million, pre-tax ($119 million, after-tax).

As previously anticipated, during the second quarter of 2022, the Company updated its strategic plan, primarily for severance costs, and recognized a charge in the amount of $22 million, pre-tax ($17 million, after-tax).

As a result of our Organizational Efficiency Plan, we expect to realize annualized after-tax savings of $184 million. A substantial amount of the savings is expected to be realized in 2022. See Note 15 to the Consolidated Financial Statements for further information regarding our organizational efficiency charge.

Sale of International Life, Accident and Supplemental Benefits Businesses in Six Countries



On July 1, 2022, we completed the sale of our life, accident and supplemental
benefits businesses in six countries (Hong Kong, Indonesia, New Zealand, South
Korea, Taiwan and Thailand) to Chubb INA Holdings, Inc. ("Chubb") for
approximately $5.4 billion in cash (the "Chubb Transaction"); as previously
agreed, we excluded our interest in a joint venture in Türkiye from the Chubb
Transaction. We aggregated and classified the assets and liabilities of these
businesses as held for sale in our Consolidated Balance
                                       42

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Sheets as of June 30, 2022 and December 31, 2021. See Note 5 to the Consolidated
Financial Statements for further information on the classification of these
businesses as held for sale. The "Liquidity and Capital Resources" section of
this MD&A provides further information on the impact of this transaction to
liquidity. See "Other Operations" section of this MD&A for further information
on the results of these businesses.

Purchase of MDLIVE



As discussed in Note 4 to the Consolidated Financial Statements, on April 19,
2021, Cigna's Evernorth segment completed the acquisition of MDLIVE, Inc.
("MDLIVE"), a 24/7 virtual care platform (the "MDLIVE Acquisition") for
$2.0 billion cash consideration. The acquisition of MDLIVE enables Evernorth to
continue expanding access to virtual care and delivering a more affordable,
convenient and connected care experience for consumers.

Medicare Star Quality Ratings ("Star Ratings")



The Centers for Medicare & Medicaid Services ("CMS") uses a Star Rating system
to measure how well Medicare Advantage ("MA") plans perform, scoring how well
plans perform in several categories, including quality of care and customer
service. Star Ratings range from one to five stars. CMS recognizes plans with
Star Ratings of four stars or greater with quality bonus payments and the
ability to offer enhanced benefits. Approximately 87% of our MA customers were
in four star or greater plans for bonus payments received in 2021 and
approximately 89% were in four star or greater plans for bonus payments to be
received in 2022; we expect this percentage to decrease to 85% for bonus
payments to be received in 2023 based upon the mix of new and existing MA plans.

Medicare Advantage Rates



On April 4, 2022, CMS released the final Calendar Year 2023 Medicare Advantage
Capitation Rates and Part C and Part D Payment Policies (the "2023 Final
Notice"). While the 2023 Final Notice rates are modestly higher than the advance
notice rates (previously released on February 2, 2022), we do not expect the
final rates to have a material impact on our consolidated results of operations
in 2023.
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LIQUIDITY AND CAPITAL RESOURCES

Liquidity

We maintain liquidity at two levels: the subsidiary level and the parent company level.

Cash requirements at the subsidiary level generally consist of:



•pharmacy, medical costs and other benefit payments;
•expense requirements, primarily for employee compensation and benefits,
information technology and facilities costs;
•income taxes; and
•debt service.

Our subsidiaries normally meet their liquidity requirements by:



•maintaining appropriate levels of cash, cash equivalents and short-term
investments;
•using cash flows from operating activities;
•matching investment durations to those estimated for the related insurance and
contractholder liabilities;
•selling investments; and
•borrowing from affiliates, subject to applicable regulatory limits.

Cash requirements at the parent company level generally consist of:



•debt service;
•payment of declared dividends to shareholders;
•lending to subsidiaries as needed; and
•pension plan funding.

The parent company normally meets its liquidity requirements by:



•maintaining appropriate levels of cash and various types of marketable
investments;
•collecting dividends from its subsidiaries;
•using proceeds from issuing debt and common stock; and
•borrowing from its subsidiaries, subject to applicable regulatory limits.

Dividends from our insurance, Health Maintenance Organization ("HMO") and
certain foreign subsidiaries are subject to regulatory restrictions. See Note 20
to the Consolidated Financial Statements in our 2021 Form 10-K for additional
information regarding these restrictions. Most of the Evernorth segment
operations are not subject to regulatory restrictions regarding dividends and
therefore provide significant financial flexibility to Cigna.

Cash flows for the six months ended June 30 were as follows:


                                 Six Months Ended June 30,
(In millions)                        2022                 2021
Operating activities       $       3,274               $    797
Investing activities       $        (732)              $ (3,024)
Financing activities       $      (3,087)              $ (4,113)



The following discussion explains variances in the various categories of cash
flows for the six months ended June 30, 2022 compared with the same period in
2021.

Operating activities

Cash flows from operating activities consist principally of cash receipts and disbursements for pharmacy revenues and costs, premiums, fees, investment income, taxes, benefit costs and other expenses.

As a result of the receipt of the delayed 2021 CMS Part D settlement, lower income tax payments and timing of payments in accounts payable and accrued liabilities in 2022 compared to 2021, cash provided by operating activities increased.


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Investing and Financing activities

The Company acquired MDLIVE and had higher net purchases of investments in 2021. These activities resulted in lower cash used in investing activities in 2022.

The Company repurchased less stock and repaid less debt, which resulted in a reduction in cash used in financing activities in 2022.

Capital Resources



Our capital resources consist primarily of cash, cash equivalents and
investments maintained at regulated subsidiaries required to underwrite
insurance risks, cash flows from operating activities, our commercial paper
program, credit agreements and the issuance of long-term debt and equity
securities. Our businesses generate significant cash flow from operations, some
of which is subject to regulatory restrictions relative to the amount and timing
of dividend payments to the parent company. Dividends from U.S. regulated
subsidiaries were $1.0 billion for the six months ended June 30, 2022 and $1.3
billion for the six months ended June 30, 2021. Non-regulated subsidiaries also
generate significant cash flow from operating activities, which is typically
available immediately to the parent company for general corporate purposes.

We prioritize our use of capital resources to:



•invest in capital expenditures, primarily related to technology to support
innovative solutions for our customers, provide the capital necessary to
maintain or improve the financial strength ratings of subsidiaries and to repay
debt and fund pension obligations if necessary;
•pay dividends to shareholders;
•consider acquisitions that are strategically and economically advantageous; and
•return capital to shareholders through share repurchases.

Funds Available



Commercial Paper Program. Cigna maintains a commercial paper program and may
issue short-term, unsecured commercial paper notes privately placed on a
discount basis through certain broker-dealers at any time not to exceed an
aggregate amount of $5.0 billion. The net proceeds of issuances have been and
are expected to be used for general corporate purposes.

Revolving Credit Agreements. Our revolving credit agreements provide us with the
ability to borrow amounts for general corporate purposes, including for the
purpose of providing liquidity support if necessary under our commercial paper
program discussed above.

As of June 30, 2022, Cigna's revolving credit agreements include: a $3.0 billion
five-year revolving credit and letter of credit agreement that expires in April
2027; a $1.0 billion three-year revolving credit agreement that expires in April
2025; and a $1.0 billion 364-day revolving credit agreement that expires in
April 2023.

As of June 30, 2022, we had $5.0 billion of undrawn committed capacity under our
revolving credit agreements (these amounts are available for general corporate
purposes, including providing liquidity support for our commercial paper
program), $3.2 billion of remaining capacity under our commercial paper program
and $4.6 billion in cash and short-term investments, approximately $0.7 billion
of which was held by the parent company or certain non-regulated subsidiaries.

See Note 7 to the Consolidated Financial Statements for further information on our credit agreements and commercial paper program.

Our debt-to-capitalization ratio was 42.1% at June 30, 2022 and 41.7% at December 31, 2021.

We actively monitor our debt obligations and engage in issuance or redemption activities as needed in accordance with our capital management strategy.



Subsidiary Borrowings. In addition to the sources of liquidity discussed above,
the parent company can borrow an additional $2.5 billion from its subsidiaries
without further approvals as of June 30, 2022.

Use of Capital Resources



Capital Expenditures. Capital expenditures for property, equipment and computer
software were $612 million in the six months ended June 30, 2022 compared to
$500 million in the six months ended June 30, 2021. We expect to continue to
invest in technology that we believe will drive future growth. Anticipated
capital expenditures will be funded primarily from operating cash flow.

Dividends. During the first six months of 2022, Cigna declared and paid
quarterly cash dividends of $1.12 per share of Cigna common stock. See Note 8 to
the Consolidated Financial Statements for further information on our dividend
payments. On July 27, 2022, the

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Board of Directors declared the third quarter cash dividend of $1.12 per share
of Cigna common stock to be paid on September 22, 2022 to shareholders of record
on September 7, 2022. Cigna currently intends to pay regular quarterly
dividends, with future declarations subject to approval by its Board of
Directors and the Board's determination that the declaration of dividends
remains in the best interests of Cigna and its shareholders. The decision of
whether to pay future dividends and the amount of any such dividends will be
based on the Company's financial position, results of operations, cash flows,
capital requirements, the requirements of applicable law and any other factors
the Board of Directors may deem relevant.

Share repurchases. We maintain a share repurchase program authorized by our
Board of Directors, under which we may repurchase shares of our common stock
from time to time. The timing and actual number of shares repurchased will
depend on a variety of factors including price, general business and market
conditions and alternate uses of capital. The share repurchase program may be
effected through open market purchases in compliance with Rule 10b-18 under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), including
through Rule 10b5-1 trading plans or privately negotiated transactions. The
program may be suspended or discontinued at any time. In February 2022, the
Board increased repurchase authority by an additional $6.0 billion.

We repurchased 9.7 million shares for approximately $2.3 billion during the six
months ended June 30, 2022, compared to 16.3 million shares for approximately
$3.7 billion during the six months ended June 30, 2021. From July 1, 2022
through August 3, 2022, we repurchased 10.4 million shares through the initial
delivery under the accelerated share repurchase agreements ("ASR agreements")
discussed below. Share repurchase authority was $5.3 billion as of August 3,
2022.

On June 15, 2022, as part of our existing share repurchase program, we entered
into separate ASR agreements with Mizuho Markets Americas LLC and Morgan Stanley
& Co. LLC (collectively, the "Counterparties") to repurchase $3.5 billion of
common stock in aggregate. In July 2022, in accordance with the ASR agreements
we remitted $3.5 billion to the Counterparties and received an initial delivery
of 10.4 million shares of our common stock. We expect final settlement under the
ASR agreements to occur in the fourth quarter of 2022. See Note 8 to the
Consolidated Financial Statements for further information on our ASR agreements.

Strategic investments. In 2022, we committed an additional $450 million (which
in aggregate represents a $700 million commitment) to Cigna Ventures, our
strategic corporate venture fund. Cigna Ventures will use this funding to drive
continuous health care transformation, innovation and growth.

Sale of international life, accident and supplemental benefits businesses in six
countries. On July 1, 2022, we completed the sale of our life, accident and
supplemental benefits businesses in six countries (Hong Kong, Indonesia, New
Zealand, South Korea, Taiwan and Thailand) to Chubb for approximately $5.4
billion in cash. Cigna estimates it will receive approximately $5.1 billion of
net after-tax proceeds from this transaction and expects to utilize the
after-tax proceeds primarily for share repurchases, with $3.5 billion used to
fund the purchases of our common stock pursuant to the ASR agreements (as
described above).

Risks to our liquidity and capital resources outlook include cash projections
that may not be realized and the demand for funds could exceed available cash if
our ongoing businesses experience unexpected shortfalls in earnings or we
experience material adverse effects from one or more risks or uncertainties
described more fully in the "Risk Factors" section of our 2021 Form 10-K. Though
we believe we have adequate sources of liquidity, significant disruption or
volatility in the capital and credit markets could affect our ability to access
those markets for additional borrowings or increase costs.

Supply Chain Financing Program



We facilitate a voluntary supply chain finance program (the "program") that
provides suppliers the opportunity to sell their receivables due from us (i.e.,
our payment obligations to the suppliers) to a financial institution, on a
non-recourse basis in order to be paid earlier than our payment terms provide.
Cigna is not a party to the program and agrees to commercial terms with its
suppliers independently of their participation in the program. A supplier's
participation in the program has no impact on our payment terms and Cigna has no
economic interest in a supplier's decision to participate in the program. The
suppliers, at their sole discretion, determine which invoices, if any, to sell
to the financial institution. No guarantees are provided by Cigna or any of our
subsidiaries under the program. We have been informed by the financial
institution that $133 million as of June 30, 2022 and $331 million as of
December 31, 2021 of our outstanding payment obligations were voluntarily
elected by suppliers to be sold to the financial institution under the program.
These amounts are reflected in Accounts payable in Cigna's Consolidated Balance
Sheets.

Guarantees and Contractual Obligations



We are contingently liable for various contractual obligations and financial and
other guarantees entered into in the ordinary course of business. See Note 18 to
the Consolidated Financial Statements for discussion of various guarantees.
During the six months ended June 30, 2022, there was no material change to the
contractual obligations reported in our 2021 Form 10-K.

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CRITICAL ACCOUNTING ESTIMATES

The preparation of Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures in the Consolidated Financial Statements. Management considers an accounting estimate to be critical if:



•it requires assumptions to be made that were uncertain at the time the estimate
was made; and
•changes in the estimate or different estimates that could have been selected
could have a material effect on our consolidated results of operations or
financial condition.

Management has discussed how critical accounting estimates are developed and selected with the Audit Committee of our Board of Directors and the Audit Committee has reviewed the disclosures presented in our 2021 Form 10-K. We regularly evaluate items that may impact critical accounting estimates.



Our most critical accounting estimates, as well as the effect of hypothetical
changes in material assumptions used to develop each estimate, are described in
the 2021 Form 10-K. As of June 30, 2022, there were no significant changes to
the critical accounting estimates from what was reported in our 2021 Form 10-K.

SEGMENT REPORTING

The following section of this MD&A discusses the results of each of our segments.



On July 1, 2022, we completed the sale of our life, accident and supplemental
benefits businesses in six countries (Hong Kong, Indonesia, New Zealand, South
Korea, Taiwan and Thailand) to Chubb for approximately $5.4 billion in cash.
During the fourth quarter of 2021, in connection with the Chubb Transaction, we
revised our business reporting structure and adjusted our segment reporting
accordingly. Segment results for the three and six months ended June 30, 2021
have been restated to conform to the new segment presentation.

See Note 1 to the Consolidated Financial Statements for further description of our segments.



In segment discussions, we present "adjusted revenues" and "pre-tax adjusted
income (loss) from operations," defined as income (loss) before income taxes
excluding pre-tax income/loss attributable to noncontrolling interests, net
realized investment results, amortization of acquired intangible assets and
special items. Cigna's share of certain realized 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 believes
are not representative of the underlying results of operations due to their
nature or size. Ratios presented in this segment discussion exclude the same
items as adjusted revenues and pre-tax adjusted income (loss) from operations.
See Note 19 to the Consolidated Financial Statements for additional discussion
of these metrics and a reconciliation of Income before income taxes to pre-tax
adjusted income from operations, as well as a reconciliation of Total Revenues
to adjusted revenues. Note 19 to the Consolidated Financial Statements also
explains that segment revenues include both external revenues and sales between
segments that are eliminated in Corporate.

In these segment discussions, we also present "pre-tax adjusted margin," defined as pre-tax adjusted income (loss) from operations divided by adjusted revenues.

Evernorth Segment



Evernorth includes a broad range of coordinated and point solution health
services and capabilities, as well as those from partners across the health care
system, in pharmacy benefits services, specialty pharmacy and care services. As
described in the introduction to Segment Reporting, Evernorth's performance is
measured using adjusted revenues and pre-tax adjusted income (loss) from
operations.

The key factors that impact Evernorth's Pharmacy revenues and Pharmacy and other
service costs are volume, mix of claims and price. These key factors are
discussed further below. See Note 2 to the Consolidated Financial Statements
included in our 2021 Form 10-K for additional information on revenue and cost
recognition policies for this segment.

•As our clients' claim volumes increase or decrease, our resulting revenues and
cost of revenues correspondingly increase or decrease. Our gross profit, defined
as Total Revenues less Pharmacy and other service costs, could also increase or
decrease as a result of changes in purchasing discounts.
•The mix of claims generally considers the type of drug and distribution method
used for dispensing and fulfilling. Types of drugs can have an impact on our
pharmacy revenues, pharmacy and other service costs and gross profit, including
amounts
                                       47

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payable under certain financial and performance guarantees with our clients. In
addition to the types of drugs, the mix of generic claims (i.e., generic fill
rate) also impacts our gross profit. Generally, higher generic fill rates reduce
revenues, as generic drugs are typically priced lower than the branded drugs
they replace. However, as ingredient cost paid to pharmacies on generic drugs is
incrementally lower than the price charged to our clients, higher generic fill
rates generally have a favorable impact on our gross profit. The home delivery
generic fill rate is currently lower than the network generic fill rate as fewer
generic substitutions are available among maintenance medications (such as
therapies for chronic conditions) commonly dispensed from home delivery
pharmacies as compared to acute medications that are primarily dispensed by
pharmacies in our retail networks. Furthermore, our gross profit differs among
network, home delivery and specialty distribution methods and can impact our
profitability.
•Our client contract pricing is impacted by our ongoing ability to negotiate
favorable contracts for pharmacy network, pharmaceutical and wholesaler
purchasing and manufacturer rebates. As we seek to improve the effectiveness of
our integrated solutions for the benefit of our clients, we are continuously
innovating and improving affordability. Our gross profit could also increase or
decrease as a result of drug purchasing contract initiatives implemented.
Inflation also impacts our pricing because most of our contracts provide that we
bill clients and pay pharmacies based on a generally recognized price index for
pharmaceuticals. Therefore, the rate of inflation for prescription drugs and our
efforts to manage this inflation for our clients continues to be a significant
driver of our revenues and cost of revenues in the current environment.

In this MD&A, we present revenues and gross profit, as well as adjusted revenues
and adjusted gross profit, consistent with our segment reporting metrics, which
exclude special items.

Results of Operations
                                           Three Months Ended                                                Six Months Ended
Financial Summary                               June 30,                       Change Favorable                  June 30,                            Change Favorable
(Dollars in millions)                    2022               2021                (Unfavorable)          2022              2021                         (Unfavorable)

Total revenues                       $   34,863          $ 32,592                     7 %           $ 68,449          $ 63,212                                     8      %

Adjusted revenues (1)                $   34,863          $ 32,592                     7 %           $ 68,449          $ 63,212                                     8      %
Gross profit                         $    2,151          $  2,075                     4 %           $  4,162          $  3,918                                     6      %
Adjusted gross profit (1)            $    2,151          $  2,075                     4 %           $  4,162          $  3,918                                     6      %

Pre-tax adjusted income from
operations                           $    1,475          $  1,413                     4 %           $  2,777          $  2,636                                     5      %
Pre-tax adjusted margin                     4.2    %          4.3        %     (10)     bps              4.1    %          4.2    %                              (10)     bps
Adjusted expense ratio (2)                  1.9    %          2.0        %     (10)     bps              2.0    %          2.0    %                                -      bps


                                              Three Months Ended                                                Six Months Ended
                                                   June 30,                                                         June 30,
(Dollars and adjusted scripts in                                                  Change Favorable                                                   Change Favorable
millions)                                   2022               2021                (Unfavorable)             2022              2021                   (Unfavorable)

Selected Financial Information
Pharmacy revenue by distribution
channel
Adjusted network revenues (1)           $   16,107          $ 16,166                -      %           $ 31,638          $ 31,304                      1      %
Adjusted home delivery and
specialty revenues (1)                      15,268            13,341               14                    29,967            26,115                     15
Other pharmacy revenues                      1,667             1,619                3                     3,379             3,007                     12
Total adjusted pharmacy revenues
(1)                                     $   33,042          $ 31,126                6      %           $ 64,984          $ 60,426                      8      %
Adjusted fees and other revenues
(1)                                          1,805             1,461               24                     3,439             2,778                     24
Net investment income                           16                 5              220                        26                 8                    225
Adjusted revenues (1)                   $   34,863          $ 32,592                7      %           $ 68,449          $ 63,212                      8      %
Pharmacy script volume (3)
Adjusted network scripts                       323               339               (5)     %                638               662                     (4)     %
Adjusted home delivery and
specialty scripts                               69                71               (3)                      139               141                     (1)
Total adjusted scripts                         392               410               (4)     %                777               803                     (3)     %
Generic fill rate (4)
Network                                       87.6    %         85.3    %         230      bps             87.4    %         86.3    %               110      bps
Home delivery                                 85.8    %         85.7    %          10      bps             85.6    %         85.8    %               (20)     bps
Overall generic fill rate                     87.5    %         85.4    %         210      bps             87.2    %         86.2    %               100      bps


(1)Total revenues and gross profit were equal to adjusted revenues and adjusted
gross profit as there were no special items in the periods presented.
(2)Adjusted expense ratio is calculated as selling, general and administrative
expenses as a percentage of adjusted revenues.
(3)Non-specialty network scripts filled through 90-day programs and home
delivery scripts are multiplied by three. All other network and specialty
scripts are counted as one script.
(4)Generic fill rate is defined as the total number of generic scripts divided
by the total overall scripts filled.

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Three and Six Months Ended June 30, 2022 versus Three and Six Months Ended June 30, 2021



Adjusted network revenues increased for the six months ended June 30, 2022,
reflecting increased prices due to inflation on branded drugs; partially offset
by lower claims volume and a slight change in claims mix due to an increase in
the generic fill rate. Adjusted network revenues decreased for the three months
ended, reflecting lower claims volume and a slight change in claims mix due to
an increase in the generic fill rate; partially offset by increased prices due
to inflation on branded drugs.

Adjusted home delivery and specialty revenues increased, reflecting higher
specialty claims volume due in part to our collaboration with Prime
Therapeutics, as well as increased prices, primarily due to inflation on branded
drugs. These increases were partially offset by slightly lower home delivery
claims volume.

Other pharmacy revenues increased, reflecting higher volume from our CuraScript SD business.



Adjusted fees and other revenues increased, reflecting customer growth from our
Pharmacy Rebate Program services and the acquisition and subsequent growth of
the MDLIVE business.

Adjusted gross profit and pre-tax adjusted income from operations increased,
reflecting continued contract affordability improvements and business growth.
The increase was partially offset by strategic investments in expanding our
services portfolio and digital capabilities as well as lower volume in our
network and home delivery businesses. Pre-tax adjusted income from operations
also increased due to expense favorability.

The adjusted expense ratio was flat, reflecting higher revenues as well as increased strategic investments in expanding our services portfolio and digital capabilities.



Cigna Healthcare Segment

Cigna Healthcare includes Cigna's U.S. Commercial, U.S. Government and
International Health businesses, which provide comprehensive medical and
coordinated solutions to clients and customers to support whole-person health
needs. U.S. Commercial products and services include medical, pharmacy,
behavioral health, dental, vision, health advocacy programs and other products
and services for insured and self-insured customers. U.S. Government solutions
include Medicare Advantage, Medicare Supplement and Medicare Part D plans for
seniors and individual health insurance plans both on and off the public
exchanges. International Health solutions include health care coverage in our
international markets, as well as health care benefits for globally mobile
individuals and employees of multinational organizations. As described in the
introduction to Segment Reporting, performance of the Cigna Healthcare segment
is measured using adjusted revenues and pre-tax adjusted income from operations.
Key factors affecting results for this segment include:

•customer growth;
•revenue growth;
•percentage of Medicare Advantage customers in plans eligible for quality bonus
payments;
•medical costs as a percentage of premiums (medical care ratio or "MCR") for our
insured businesses; and
•selling, general and administrative expenses as a percentage of adjusted
revenues (adjusted expense ratio).

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Results of Operations
Financial Summary                        Three Months Ended June 30,                        Change Favorable               Six Months Ended June 30,                             Change Favorable
(Dollars in millions)                   2022                       2021                      (Unfavorable)                   2022                2021                             (Unfavorable)

Adjusted revenues                 $       11,337                $ 11,149                           2 %                 $      22,729          $ 22,216                              2      %
Pre-tax adjusted income
from operations                   $        1,240                $  1,049                     18      %                 $       2,519          $  2,091                             20      %
Pre-tax adjusted margin                     10.9    %                9.4    %               150      bps                        11.1    %          9.4    %                       170      bps
Medical care ratio                          80.7    %               84.4    %               370      bps                        81.1    %         82.7    %                       160      bps
Adjusted expense ratio                      20.6    %               18.9    %              (170)     bps                        20.6    %         20.6    %                         -      bps

Three and Six Months Ended June 30, 2022 versus Three and Six Months Ended June 30, 2021



Adjusted revenues increased for the three months and six months ended June 30,
2022, reflecting increases in U.S. Commercial partially offset by decreases in
U.S. Government. The increases in U.S. Commercial adjusted revenues reflects
increased specialty contributions, higher premium rates due to anticipated
underlying medical cost trend as well as customer growth. The decreases in U.S.
Government adjusted revenues reflects the disposition of the Medicaid business.

Pre-tax adjusted income from operations increased for the three months and six
months ended June 30, 2022, reflecting increased contributions from U.S.
Commercial, U.S. Government and International Health. These increases were
primarily due to lower medical care ratios and increased specialty contributions
in U.S. Commercial; partially offset by the absence of favorable non-recurring
items recorded in 2021.

The medical care ratio decreased for the three months and six months ended June
30, 2022, primarily due to medical costs that have moderated since 2021,
including lower direct COVID-19 costs and effective execution in pricing and
affordability initiatives, in U.S. Commercial as well as improved Medicare
Advantage risk adjustment revenues. The decrease for the six months ended June
30, 2022 was partially offset by U.S. Government risk adjustment updates related
to prior years that were recognized in the first quarter of 2022.

The adjusted expense ratio increased for the three months ended June 30, 2022,
primarily reflecting the absence of favorable litigation developments recorded
in 2021. The adjusted expense ratio was flat for the six months ended June 30,
2022.

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Medical Customers

A medical customer is defined as a person meeting any one of the following criteria:



•is covered under a medical insurance policy, managed care arrangement or
service agreement issued by us;
•has access to our provider network for covered services under their medical
plan; or
•has medical claims that are administered by us.

Effective in the second quarter of 2022, the Company updated its U.S. Commercial
market segments as follows: the National segment comprises employers with 3,000
or more eligible employees, and the Middle Market segment comprises employers
with 500 to 2,999 eligible employees, Taft-Hartley plans, and other groups.
Previously, the National segment comprised multi-state employers with 5,000 or
more eligible employees and the Middle Market segment comprised employers with
500 to 4,999 eligible employees, single-site employers with more than 5,000
employees, Taft-Hartley plans and other groups. There have been no updates to
the Select (employers generally with 51 to 499 eligible employees) or Small
Group (employers generally with 2 to 50 eligible employees) market segments.
                                                  As of June 30,
(In thousands)                               2022                2021                     % Change

Cigna Healthcare Medical Customers



Insured                                     4,705                4,664                     1     %
U.S. Commercial                             2,187                2,128                     3     %
U.S. Government                             1,374                1,484                    (7)    %
International Health (1)                    1,144                1,052                     9     %

Services only                              13,101               12,257                     7     %
U.S. Commercial                            12,465               11,632                     7     %
U.S. Government                                 5                    -                       N/M %
International Health (1)                      631                  625                     1     %

Total                                      17,806               16,921                     5     %


(1) International Health excludes medical customers served by less than 100%
owned subsidiaries and customers that are part of the businesses sold pursuant
to the Chubb Transaction.

Our medical customer base increased at June 30, 2022, reflecting growth in our
Middle Market, Select and International Health market segments; partially offset
by the disposition of the Medicaid business.

Unpaid Claims and Claim Expenses


                                                          As of June 30,       As of December
(In millions)                                                  2022               31, 2021                           % Change

Unpaid claims and claim expenses - Cigna Healthcare $ 4,490

    $      4,261                           5     %


Our unpaid claims and claim expenses liability was higher as of June 30, 2022, primarily due to stop loss seasonality; partially offset by Medicare Part D invoice cycle timing and the disposition of the Medicaid business.


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Other Operations



Other Operations includes the International businesses sold to Chubb on July 1,
2022, Corporate Owned Life Insurance ("COLI"), our interest in a joint venture
in Türkiye and the Company's run-off operations. As described in the
introduction of Segment Reporting, performance of Other Operations is measured
using adjusted revenues and pre-tax adjusted income from operations.

Results of Operations

                                                                                     Change                        Six Months Ended                              Change
Financial Summary                         Three Months Ended June 30,               Favorable                          June 30,                                 Favorable
(Dollars in millions)                      2022            2021                   (Unfavorable)                  2022              2021                       (Unfavorable)

Adjusted revenues                       $   948          $ 990                    (4)     %               $   1,927          $ 1,995                          (3)     %
Pre-tax adjusted income from
operations                              $   233          $ 215                     8      %               $     459          $   446                           3      %
Pre-tax adjusted margin                    24.6    %      21.7    %              290      bps                  23.8    %        22.4    %                    140      bps

Three and Six Months Ended June 30, 2022 versus Three and Six Months Ended June 30, 2021

Adjusted revenues decreased primarily due to unfavorable foreign currency movements, largely offset by business growth and higher net investment income in the International businesses.

Pre-tax adjusted income from operations increased primarily due to higher earnings in the Run-off businesses and COLI.

Other Items Related to International Businesses Sold to Chubb



For the three months ended June 30, 2022, 84% of Other Operations' adjusted
revenues and 85% of its pre-tax adjusted income from operations was associated
with International businesses sold to Chubb on July 1, 2022. For the six months
ended June 30, 2022, 84% of Other Operations' adjusted revenues and 88% of its
pre-tax adjusted income from operations was associated with sold International
businesses; as a result of the sale, Other Operations' adjusted revenues and
pre-tax adjusted income from operations will decrease in future periods.

Corporate



Corporate reflects amounts not allocated to operating segments, including net
interest expense (defined as interest on corporate debt less net investment
income on investments not supporting segment and other operations), certain
litigation matters, expense associated with our frozen pension plans, charitable
contributions, severance, certain overhead and enterprise-wide project costs and
intersegment eliminations for products and services sold between segments.
                                                  Three Months Ended
Financial Summary                                      June 30,                                                               Six Months Ended June 30,
(In millions)                                    2022                2021            Change Favorable (Unfavorable)             2022             2021                        Change Favorable (Unfavorable)

Pre-tax adjusted loss from
operations                                $     (401)              $ (344)                (17)       %                       $   (744)         $ (698)                             (7)       %


Three and Six Months Ended June 30, 2022 versus Three and Six Months Ended June 30, 2021

Pre-tax adjusted loss from operations increased, reflecting an increase in operating expenses for enterprise-wide initiatives.


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INVESTMENT ASSETS



The following table presents our investment asset portfolio excluding separate
account assets as of June 30, 2022 and December 31, 2021. Additional information
regarding our investment assets is included in Notes 11, 12, 13 and 14 to the
Consolidated Financial Statements.
                                                                           June 30,         December 31,
(In millions)                                                                2022               2021
Debt securities                                                           $ 13,950          $   16,958
Equity securities                                                              836                 603
Commercial mortgage loans                                                    1,579               1,566
Policy loans                                                                 1,325               1,338
Other long-term investments                                                  4,107               3,574
Short-term investments                                                         199                 428
Total                                                                       21,996              24,467
Investments classified as assets of businesses held for sale (1)            (4,518)             (5,109)
Investments per Consolidated Balance Sheets                               $ 

17,478 $ 19,358

(1) Investments related to the international life, accident and supplemental benefits businesses that are held for sale. See Note 5 to the Consolidated Financial Statements for additional information.

Investment Outlook



We continue to actively monitor current economic conditions driven by the pace
of the pandemic recovery, recent geopolitical events and fiscal and monetary
policy responses (including the resulting supply chain and labor market
dynamics), and the portfolio impact of recent higher levels of both interest
rates and inflation. Future realized and unrealized investment results will be
driven largely by market conditions and these future conditions are not
reasonably predictable. We believe that the vast majority of our investments
will continue to perform under their contractual terms. Based on our strategy to
match the duration of invested assets to the duration of insurance and
contractholder liabilities, we expect to hold a significant portion of these
assets for the long-term. The below discussion addresses the strategies and
risks associated with our various classes of investment assets. Although future
declines in investment fair values resulting from interest rate movements and
credit deterioration due to both investment-specific and the global economic
uncertainties in the following discussion remain possible, we do not expect
these losses to have a material adverse effect on our financial condition or
liquidity.

Debt Securities

Investments in debt securities include publicly-traded and privately-placed
bonds, mortgage and other asset-backed securities and preferred stocks
redeemable by the investor. These investments are classified as available for
sale and are carried at fair value on our balance sheet. Additional information
regarding valuation methodologies, key inputs and controls is included in Note
12 to the Consolidated Financial Statements. More detailed information about
debt securities by type of issuer and maturity dates is included in Note 11 to
the Consolidated Financial Statements.

The following table reflects our portfolio of debt securities by type of issuer as of June 30, 2022 and December 31, 2021:


                                      June 30,      December 31,
(In millions)                           2022            2021
Federal government and agency        $    353      $         387
State and local government                145                171
Foreign government                      2,331              2,616
Corporate                              10,754             13,266
Mortgage and other asset-backed           367                518
Total                                $ 13,950      $      16,958



Our debt securities portfolio decreased during the six months ended June 30,
2022, reflecting a decrease in valuations driven by a significant rise in
treasury rates and credit spreads, and net sales activity.
As of June 30, 2022, $12.0 billion, or 86% of the debt securities in our
investment portfolio were investment grade (Baa and above, or equivalent) and
the remaining $1.9 billion were below investment grade. The majority of the
bonds that are below investment grade are rated at the higher end of the
non-investment grade spectrum. These quality characteristics have not materially
changed since the prior year and remain consistent with our investment strategy.

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Debt securities include private placement assets of $4.3 billion. These
investments are generally less marketable than publicly-traded bonds; however,
yields on these investments tend to be higher than yields on publicly-traded
bonds with comparable credit risk. We perform a credit analysis of each issuer
and require financial and other covenants that allow us to monitor issuers for
deteriorating financial strength and pursue remedial actions, if warranted.

Investments in debt securities are diversified by issuer, geography and
industry. On an aggregate basis, the debt securities portfolio continues to
perform according to original investment expectations. Elevated global inflation
rates experienced during 2022, as well as continuing supply chain disruptions
have displaced the ongoing impacts of the COVID-19 pandemic as the primary risks
that many of the issuers in our portfolio are facing. To date, most issuers have
been successful in managing the cost escalation and product shortages without
undue margin pressure. We continue to monitor the economic environment and its
effect on our portfolio and consider the impact of various factors in
determining the allowance for credit losses on debt securities, which is
discussed in Note 11 to the Consolidated Financial Statements.

Foreign government obligations are concentrated in Asia, primarily South Korea
and Taiwan, consistent with our risk management practice and local regulatory
requirements of our international business operations. We expect the amount of
these foreign government obligations to decrease significantly upon the close of
our sale of certain international businesses during the third quarter of 2022 as
discussed in Note 5 to the Consolidated Financial Statements.

Commercial Mortgage Loans



As of June 30, 2022, the $1.6 billion commercial mortgage loan portfolio
consisted of approximately 50 fixed rate loans, diversified by property type,
location and borrower. Given the quality and diversity of the underlying real
estate, positive debt service coverage and significant borrower cash invested in
the property generally ranging between 30 and 40%, we remain confident that the
vast majority of borrowers will continue to perform as expected under their
contract terms. For further discussion of the results and changes in key loan
metrics, see Note 11 to the Consolidated Financial Statements.

Loans are secured by high quality commercial properties, located in strong
institutional markets and are generally made at less than 65% of the property's
value at origination of the loan. Property value, debt service coverage,
quality, building tenancy and stability of cash flows are all important
financial underwriting considerations. We hold no direct residential mortgage
loans and do not originate or service securitized mortgage loans.

We assess the credit quality of our commercial mortgage loan portfolio annually
by reviewing each holding's most recent financial statements, rent rolls,
budgets, and relevant market reports. The review performed in the second quarter
of 2022 confirmed ongoing strong overall credit quality in line with the
previous year's results.

We continue to monitor the long-term impacts of COVID-19 on office sector
fundamentals due to multiple headwinds that may impact future valuations:
expanded work from home flexibility, shorter term leases, elevated tenant
improvement allowances and corporate migration to lower cost states.
Additionally, the current macroeconomic headwinds are impacting capital markets
and reducing investor appetite for capital intensive assets (e.g., office and
regional shopping malls). Our commercial mortgage loan portfolio has no exposure
to regional shopping malls and less than 30% exposure to office properties.

Other Long-term Investments



Other long-term investments of $4.1 billion as of June 30, 2022 included
investments in securities limited partnerships and real estate limited
partnerships, direct investments in real estate joint ventures and other deposit
activity that is required to support various insurance and health services
businesses. The increase in other long-term investments of $0.5 billion since
December 31, 2021 is primarily driven by net additional funding activity and
value creation in the underlying investments. These limited partnership entities
typically invest in mezzanine debt or equity of privately-held companies and
equity real estate. Given our subordinate position in the capital structure of
these underlying entities, we assume a higher level of risk for higher expected
returns. To mitigate risk, these investments are diversified across
approximately 200 separate partnerships and 100 general partners who manage one
or more of these partnerships. Also, the underlying investments are diversified
by industry sector or property type and geographic region. No single partnership
investment exceeded 3% of our securities and real estate limited partnership
portfolio.

Income from our limited partnership investments is generally reported on a one
quarter lag due to the timing of when financial information is received from the
general partner or manager of the investments. Accordingly, our net investment
income in the second quarter largely reflects the underlying financial
information from the first quarter of 2022. We expect continued volatility in
private equity and real estate fund performance going forward as fair market
valuations are adjusted to reflect market and portfolio transactions.

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We participate in an insurance joint venture in China with a 50% ownership
interest. We account for this joint venture under the equity method of
accounting and report our share of the net assets of $1.0 billion in Other
assets. Our 50% share of the investment portfolio supporting the joint venture's
liabilities is approximately $9.0 billion as of June 30, 2022. These investments
were comprised of approximately 75% debt securities, including government and
corporate debt diversified by issuer, industry and geography; 15% equities,
including mutual funds, equity securities and private equity partnerships; and
10% long-term deposits and policy loans. Approximately 1% of the joint venture's
investment assets are exposed to private real estate property developers in the
China market. We participate in the approval of the joint venture's investment
strategy and continuously review its execution. There were no investments with a
material unrealized loss as of June 30, 2022.

MARKET RISK

Financial Instruments



Our assets and liabilities include financial instruments subject to the risk of
potential losses from adverse changes in market rates and prices. Our primary
market risk exposures are interest rate risk and foreign currency exchange rate
risk. We encourage you to read this in conjunction with "Market Risk - Financial
Instruments" included in the MD&A section of our 2021 Form 10-K. Due primarily
to decreases in the fair value of our debt securities and long-term debt since
December 31, 2021, the effect of hypothetical changes in market rates or prices
on the fair value of certain financial instruments has changed. In the event of
a hypothetical 100 basis point increase in interest rates, the fair value of
certain non-insurance financial instruments would decrease approximately $1.1
billion at June 30, 2022 compared to $1.4 billion at December 31, 2021. Further,
under the same hypothetical 100 basis point increase in interest rates scenario,
the fair value of the Company's long-term debt would decrease approximately $2.0
billion at June 30, 2022 compared to approximately $2.9 billion at December 31,
2021. Changes in the fair value of our long-term debt do not impact our
financial position or operating results.

After the Chubb Transaction we expect reductions in our risk exposures to
interest rates and foreign currency exchange rates. The impact of a hypothetical
100 basis point increase in interest rates on the fair value of certain
non-insurance financial instruments of a $1.1 billion decrease cited above would
decline to a $0.8 billion decrease excluding the businesses held for sale as of
June 30, 2022. The impact of a hypothetical 10% strengthening in the U.S. dollar
to foreign currencies excluding the businesses held for sale would be an
insignificant amount as of June 30, 2022 as compared to a decrease of
approximately $0.3 billion as of December 31, 2021.

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