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Second quarter 2016 adjusted income from operations1 and adjusted margin, after-tax5 reflect strong contributions from our Commercial employer and specialty businesses, partially offset by medical cost pressure in our Individual business and costs related to our CMS audit response. Adjusted income from operations1 for second quarter 2016 did not have a meaningful amount of net prior year reserve development, while second quarter 2015 and first quarter 2016 included favorable prior year reserve development on an after-tax basis of approximately $19 million and $14 million respectively. Second quarter 2016 also benefitted from $3 million after-tax in updates to 2015 ACA risk mitigation program accruals while second quarter 2015 benefitted from approximately $20 million after-tax in updates to 2014 programs. On a year to date basis, Cigna has recorded net receivables of $29 million, after-tax related to 2016 risk mitigation programs for our Individual business. The Total Commercial medical care ratio7 (MCR) of 78.8% for second quarter 2016 reflects the ongoing strong performance of our Commercial employer group business, partially offset by higher medical costs in our Individual business. The Total Government MCR7 of 86.4% for second quarter 2016 reflects solid performance in our Medicare Advantage business and less prior year reserve development. Second quarter 2016 Global Health Care operating expense ratio7 of 20.9% reflects costs related to our CMS audit response as well as continued investments in strategic initiatives, partially offset by revenue growth. Global Health Care net medical costs payable8 was approximately $2.37 billion at June 30, 2016 and $2.11 billion at December 31, 2015. Global Supplemental Benefits This segment includes Cignas global individual supplemental health, life and accident insurance business, primarily in Asia, and Medicare supplement coverage in the United States.

For the original version including any supplementary images or video, visit Cigna Reports Second Quarter 2016 Results, Solid Performance in Global Health Care Offset by Pressure in Group Disability and Life

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