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Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.
CIGNA Corporation
Jefferies 2011 Global Healthcare Conference
Matt MandersPresident, U.S. Clinical, Service and SpecialtyJune 6, 2011
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.2
Forward Looking Statements
Financial information is provided as of June 6, 2011 only. CIGNA does not undertake to revise or update this information.
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.3
Agenda
CIGNA Overview and Growth Strategy
Why We are Winning
Financial Highlights
Investor Considerations
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.
Our MissionTo help the people we serve
improve their health, well-being and sense of security
4
Enduring Customer Value
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.5
Improving Health & Productivity
Actionable Information
Aligned Incentives
Transparency of Information
Programs and Solutions
ENGAGEMENT
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.6
CIGNA Overview: Diversified Portfolio of Solutions
Disability
Life andAccident
Voluntary
Dental andVision
Behavioral
DiseaseManagement
Pharmacy
ExpatriateBenefits
Int’l Health,Life &
Accident
HealthCare
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.
Highlights of Ongoing Businesses
National provider of health & wellness services to variety of business segments– Serving over 48M
customer relationships, including medical membership of 11.4M
Industry-leading health advocacy and clinical management capabilities– Award-winning
consumer engagement capabilities
Leading productivity management programs
Best-in-class return to work results: 11% more quickly than competition
Leverage clinical programs with health business
Serving over 10M customer relationships
Global leader in Expatriate benefit solutions Established global
delivery infrastructure Unique distribution model
for Health, Life and Accident solutions
– Serving nearly 7M individual policies
Consistent double digit revenue, earnings growth with strong profitability
7
HealthCare InternationalGroup Disability & Life
Serving over 65 million customer relationships
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.8
Go Deep. Go Global. Go Individual.
Execution of Growth Strategy
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.9
Execution of Growth Strategy: Product & Geographic Focus
U.S.Middle Market
Select Segment
Disability
National Employers
GlobalAsia Health, Life, Accident
Global Expatriate
Go Deep.
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.10
Go Deep. Go Global. Go Individual.
Execution of Growth Strategy
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.
Why We are Winning: Focus on the Customer; Differentiated Capabilities and Service
Leading analytic capabilities to support “Go Deep”
strategy
Advantaged global and expatriate offering
Broad array of funding arrangements
Highly consultative selling approach and industry leading
sales force talent
Onsite health capabilities
Differentiated service model
Proven advantage in improving health through engagement and incentives
Integrated product offering
11
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.12
Financial Highlights: First Quarter 2011 Results
Strong quarter: earnings growth in each of our ongoing businesses
Consolidated adjusted income1 of $375 million
– EPS2 of $1.37 (36% increase vs. 1Q 2010)
Consolidated revenue growth of 8%3
– Including 32% premium and fee growth in International
Strategy execution driving organic growth in targeted areas of focus
(1) Adjusted income from operations is shareholders’ net income excluding special items, GMIB business results, and realized investment results.
(2) Earnings per share (EPS) are on a diluted basis using adjusted income from operations.
(3) Consolidated revenue growth excludes impact of exiting the Medicare Individual Private Fee for Service business effective 1/1/2011. See www.cigna.com for the First Quarter 2011 earnings release for a reconciliation to reported revenue growth of 4%.
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.13
Financial Highlights: Full Year 2011 Outlook
Now expect full year consolidated EPS1 of $4.65 to $5.00
– Would represent growth of up to 8% over strong 2010
Strong capital outlook– Expect $1.1 billion available for deployment in 2011
(already deployed $360 million through May 4th)(1) Earnings per share (EPS) are on a diluted basis using adjusted income from operations. Does not include impact of future share
repurchase, and assumes breakeven VADBe results.
(2) Earnings outlook reflects adjusted income from operations, which is shareholders’ net income excluding special items, GMIB business results, and realized investment results. Consolidated outlook includes expected results for Other, Run-off Reinsurance and Corporate.
Business Segment 2011 Outlook HealthCare $860 - $900 million
Group Disability & Life $275 - $295 million
International $275 - $295 million
Consolidated (2) $1,275 - $1,365 million
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.
Investor Considerations
Creating Sustainable Shareholder Value
Solid performance in each of our ongoing businesses
Diversified portfolio of businesses with differentiated growth opportunities
Strong return on capital and free cash flow generation
Attractive 2011 and longer-term earnings outlook
14
Go Deep. Go Global. Go Individual.
Confidential, unpublished property of CIGNA. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2011 CIGNA.
CIGNA Corporation
Matt MandersPresident, U.S. Service, Clinical and Specialty
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