Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Cigna Group, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. income taxes	1,459)	1,679)	1,268)	2,128)	1,476)
Foreign income taxes	161)	219)	207)	334)	173)
State income taxes	180)	189)	112)	303)	114)
Current taxes	1,800)	2,087)	1,587)	2,765)	1,763)
U.S. income tax benefits	(533)	(283)	(167)	(217)	(236)
Foreign income (tax benefits) taxes	(1,046)	(28)	69)	11)	16)
State income tax benefits	(80)	(169)	(122)	(180)	(93)
Deferred tax benefits	(1,659)	(480)	(220)	(386)	(313)
Income taxes	141)	1,607)	1,367)	2,379)	1,450)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Current taxes	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Cigna Group current taxes increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Deferred tax benefits	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Cigna Group deferred tax benefits decreased from 2021 to 2022 and from 2022 to 2023.
Income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Cigna Group income taxes increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

Cigna Group, effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Nominal federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Impact of sale of businesses	0.00%	-0.40%	0.00%	1.00%	0.00%
Impact of businesses held for sale	-3.90%	0.00%	0.00%	0.00%	0.00%
Effect of foreign earnings	-3.10%	-1.20%	-0.50%	-0.60%	0.40%
Health insurance industry tax	0.00%	0.00%	0.00%	0.90%	0.00%
State income tax (benefit), net of federal income tax benefit	-0.70%	0.20%	-0.10%	0.20%	0.50%
Swiss tax attributes	-30.40%	0.00%	0.00%	0.00%	0.00%
Other foreign tax attributes	-2.80%	0.00%	0.00%	0.00%	0.00%
Change in valuation allowance	23.40%	0.00%	0.00%	0.00%	0.00%
Other	-0.90%	-0.40%	-0.20%	-0.60%	0.20%
Effective income tax rate	2.60%	19.20%	20.20%	21.90%	22.10%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Effective income tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Cigna Group effective income tax rate decreased from 2021 to 2022 and from 2022 to 2023.

Cigna Group, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Employee and retiree benefit plans	217)	189)	304)	477)	511)
Other insurance and contractholder liabilities	353)	311)	263)	278)	282)
Loss carryforwards	200)	205)	278)	177)	260)
Deferred loss, sale of business	584)	—)	—)	—)	—)
Other accrued liabilities	244)	265)	412)	358)	183)
Policy acquisition expenses	39)	41)	—)	—)	—)
Unrealized depreciation on investments and foreign currency translation	81)	156)	—)	—)	—)
Foreign tax attributes	1,827)	—)	—)	—)	—)
Other	242)	190)	246)	209)	218)
Deferred tax assets before valuation allowance	3,787)	1,357)	1,503)	1,499)	1,454)
Valuation allowance for deferred tax assets	(1,498)	(208)	(246)	(207)	(196)
Deferred tax assets, net of valuation allowance	2,289)	1,149)	1,257)	1,292)	1,258)
Depreciation and amortization	(371)	(512)	(698)	(660)	(630)
Acquisition-related basis differences	(8,105)	(8,347)	(8,726)	(8,989)	(9,386)
Policy acquisition expenses	—)	—)	(312)	(289)	(113)
Unrealized appreciation on investments and foreign currency translation	—)	—)	(104)	(171)	(223)
Other	—)	(41)	(212)	(122)	(293)
Deferred tax liabilities	(8,476)	(8,900)	(10,052)	(10,231)	(10,645)
Net deferred income tax assets (liabilities)	(6,187)	(7,751)	(8,795)	(8,939)	(9,387)
Net deferred income tax assets (liabilities) classified as Liabilities of businesses held for sale	—)	—)	449)	—)	—)
Net deferred income tax assets (liabilities) per Consolidated Balance Sheets	(6,187)	(7,751)	(8,346)	(8,939)	(9,387)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets before valuation allowance	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Cigna Group deferred tax assets before valuation allowance decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Cigna Group deferred tax assets, net of valuation allowance decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred income tax assets (liabilities) per Consolidated Balance Sheets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Cigna Group net deferred income tax assets (liabilities) per Consolidated Balance Sheets increased from 2021 to 2022 and from 2022 to 2023.

Cigna Group, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
	Deferred tax assets (reported in Other assets)	1,055)	—)	—)	—)	—)
	Deferred tax liabilities	7,242)	7,751)	8,346)	8,939)	9,387)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

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Item	Description	The company
Deferred tax assets (reported in Other assets)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Cigna Group deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Cigna Group, adjustments to financial statements

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	152,761)	143,932)	154,889)	155,451)	155,774)
Less: Noncurrent deferred tax assets, net	1,055)	—)	—)	—)	—)
Total assets (adjusted)	151,706)	143,932)	154,889)	155,451)	155,774)
Adjustment to Total Liabilities
Total liabilities (as reported)	106,410)	98,981)	107,705)	105,065)	110,395)
Less: Noncurrent deferred tax liabilities, net	7,242)	7,751)	8,346)	8,939)	9,387)
Total liabilities (adjusted)	99,168)	91,230)	99,359)	96,126)	101,008)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	46,223)	44,872)	47,112)	50,321)	45,338)
Less: Net deferred tax assets (liabilities)	(6,187)	(7,751)	(8,346)	(8,939)	(9,387)
Shareholders’ equity (adjusted)	52,410)	52,623)	55,458)	59,260)	54,725)
Adjustment to Shareholders’ Net Income
Shareholders’ net income (as reported)	5,164)	6,668)	5,365)	8,458)	5,104)
Add: Deferred income tax expense (benefit)	(1,659)	(480)	(220)	(386)	(313)
Shareholders’ net income (adjusted)	3,505)	6,188)	5,145)	8,072)	4,791)

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Cigna Group, Financial Data: Reported vs. Adjusted

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Cigna Group, adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	2.66%	3.72%	3.11%	5.31%	3.35%
Adjusted net profit margin	1.81%	3.45%	2.98%	5.07%	3.15%
Total Asset Turnover
Reported total asset turnover	1.27	1.25	1.11	1.02	0.98
Adjusted total asset turnover	1.28	1.25	1.11	1.02	0.98
Financial Leverage
Reported financial leverage	3.30	3.21	3.29	3.09	3.44
Adjusted financial leverage	2.89	2.74	2.79	2.62	2.85
Return on Equity (ROE)
Reported ROE	11.17%	14.86%	11.39%	16.81%	11.26%
Adjusted ROE	6.69%	11.76%	9.28%	13.62%	8.75%
Return on Assets (ROA)
Reported ROA	3.38%	4.63%	3.46%	5.44%	3.28%
Adjusted ROA	2.31%	4.30%	3.32%	5.19%	3.08%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Cigna Group adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Cigna Group adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Cigna Group adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Cigna Group adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Cigna Group adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Cigna Group, Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income	5,164)	6,668)	5,365)	8,458)	5,104)
Revenues from external customers	194,099)	179,361)	172,529)	159,157)	152,176)
Profitability Ratio
Net profit margin¹	2.66%	3.72%	3.11%	5.31%	3.35%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income	3,505)	6,188)	5,145)	8,072)	4,791)
Revenues from external customers	194,099)	179,361)	172,529)	159,157)	152,176)
Profitability Ratio
Adjusted net profit margin²	1.81%	3.45%	2.98%	5.07%	3.15%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Net profit margin = 100 × Shareholders’ net income ÷ Revenues from external customers
= 100 × 5,164 ÷ 194,099 = 2.66%

² Adjusted net profit margin = 100 × Adjusted shareholders’ net income ÷ Revenues from external customers
= 100 × 3,505 ÷ 194,099 = 1.81%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Cigna Group adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenues from external customers	194,099)	179,361)	172,529)	159,157)	152,176)
Total assets	152,761)	143,932)	154,889)	155,451)	155,774)
Activity Ratio
Total asset turnover¹	1.27	1.25	1.11	1.02	0.98
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenues from external customers	194,099)	179,361)	172,529)	159,157)	152,176)
Adjusted total assets	151,706)	143,932)	154,889)	155,451)	155,774)
Activity Ratio
Adjusted total asset turnover²	1.28	1.25	1.11	1.02	0.98

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Total asset turnover = Revenues from external customers ÷ Total assets
= 194,099 ÷ 152,761 = 1.27

² Adjusted total asset turnover = Revenues from external customers ÷ Adjusted total assets
= 194,099 ÷ 151,706 = 1.28

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Cigna Group adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	152,761)	143,932)	154,889)	155,451)	155,774)
Shareholders’ equity	46,223)	44,872)	47,112)	50,321)	45,338)
Solvency Ratio
Financial leverage¹	3.30	3.21	3.29	3.09	3.44
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	151,706)	143,932)	154,889)	155,451)	155,774)
Adjusted shareholders’ equity	52,410)	52,623)	55,458)	59,260)	54,725)
Solvency Ratio
Adjusted financial leverage²	2.89	2.74	2.79	2.62	2.85

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 152,761 ÷ 46,223 = 3.30

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 151,706 ÷ 52,410 = 2.89

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Cigna Group adjusted financial leverage ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income	5,164)	6,668)	5,365)	8,458)	5,104)
Shareholders’ equity	46,223)	44,872)	47,112)	50,321)	45,338)
Profitability Ratio
ROE¹	11.17%	14.86%	11.39%	16.81%	11.26%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income	3,505)	6,188)	5,145)	8,072)	4,791)
Adjusted shareholders’ equity	52,410)	52,623)	55,458)	59,260)	54,725)
Profitability Ratio
Adjusted ROE²	6.69%	11.76%	9.28%	13.62%	8.75%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROE = 100 × Shareholders’ net income ÷ Shareholders’ equity
= 100 × 5,164 ÷ 46,223 = 11.17%

² Adjusted ROE = 100 × Adjusted shareholders’ net income ÷ Adjusted shareholders’ equity
= 100 × 3,505 ÷ 52,410 = 6.69%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Cigna Group adjusted ROE improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Shareholders’ net income	5,164)	6,668)	5,365)	8,458)	5,104)
Total assets	152,761)	143,932)	154,889)	155,451)	155,774)
Profitability Ratio
ROA¹	3.38%	4.63%	3.46%	5.44%	3.28%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted shareholders’ net income	3,505)	6,188)	5,145)	8,072)	4,791)
Adjusted total assets	151,706)	143,932)	154,889)	155,451)	155,774)
Profitability Ratio
Adjusted ROA²	2.31%	4.30%	3.32%	5.19%	3.08%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

2023 Calculations

¹ ROA = 100 × Shareholders’ net income ÷ Total assets
= 100 × 5,164 ÷ 152,761 = 3.38%

² Adjusted ROA = 100 × Adjusted shareholders’ net income ÷ Adjusted total assets
= 100 × 3,505 ÷ 151,706 = 2.31%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Cigna Group adjusted ROA improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Cigna Group (NYSE:CI)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Cigna Group, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Cigna Group, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)