Core Insights - Evernorth, the health services division of The Cigna Group, has launched a new pharmacy benefit offering that makes weight loss medications WEGOVY® and ZEPBOUND® more accessible to patients, with a maximum monthly cost of $200 [1][6]. Patient Benefits - Patients can save up to $3,600 annually compared to direct-to-consumer manufacturer programs [6][7]. - Monthly copays for GLP-1 weight loss medications will be capped at $200, which will count towards the patient's annual deductible [7]. - The new offering ensures access to FDA-approved medications with robust safety checks to minimize adverse drug interactions [7]. - The prior authorization process will be simplified and automated for quicker access to medications [7]. - Patients have the option to choose from a wide network of local retail pharmacies or home delivery through Evernorth's EnGuide Pharmacy [7]. Employer and Health Plan Sponsor Benefits - Health plan sponsors will experience a significant reduction in the net cost per prescription for GLP-1 medications [7]. - The initiative addresses the growing demand for FDA-approved weight loss medications while ensuring clinical safety for patients [6][7]. - Evernorth's extensive suite of GLP-1 solutions provides health plan sponsors with options to ensure patients have access to the most suitable medications without compromising affordability [7]. Additional Information - EncircleRx has saved health plans $200 million since 2024, with over 9 million enrolled lives [8]. - EnReachRx is a patient support clinical model designed for dispensing GLP-1 prescription medications [8].

Core Points - President Trump signed an executive order aimed at reducing prescription drug prices by up to 90%, targeting pharmaceutical companies and middlemen [1][2] - The order revives the "most favored nation" policy, pushing foreign countries to share more of the R&D costs that the US has been shouldering [2] - The US pays the highest prices for prescription drugs, often nearly three times more than other developed nations [4] Company Impact - Shares of Cigna fell nearly 6% and CVS Health dropped over 3% following the announcement, indicating market concern over the executive order's implications [3][11] - Major US drugmakers initially saw stock declines but later rebounded as analysts suggested the order would be difficult to implement [12] - Merck, Pfizer, Gilead, and Eli Lilly experienced stock increases of 5.9%, 3.6%, 7.1%, and 2.9% respectively, reflecting investor optimism about their resilience against the order [12] Regulatory Actions - The order directs the US Trade Representative and Commerce Secretary to address unreasonable foreign drug pricing policies [6] - Health and Human Services Secretary will set targets for price reductions and initiate negotiations with industry leaders after 30 days [6][7] - The Federal Trade Commission is urged to enhance enforcement against anti-competitive practices by drugmakers [13]

Core Viewpoint - Health insurers, particularly Cigna Group, faced significant stock price declines due to government actions and remarks from President Trump regarding pharmacy benefit managers (PBMs) and drug pricing reforms [1][2][4]. Group 1: Government Actions and Impact - President Trump signed an executive order targeting PBMs, criticizing their role in negotiating drug prices and mandating the pharmaceutical industry to lower drug prices within 30 days [2][4]. - Legislation proposed by the House of Representatives aims to alter PBM compensation structures, with a strong likelihood of passage given Republican control of both the House and Senate [5]. Group 2: Market Reaction - Cigna's stock price dropped by over 5% on a day when the S&P 500 index rose by more than 3.2%, indicating a negative market reaction specifically towards health insurers [1]. - Other healthcare companies with PBMs, such as CVS Healthcare and UnitedHealth Group, also experienced declines in stock prices [6]. Group 3: PBMs Under Scrutiny - PBMs are facing increased criticism for contributing to rising drug prices, making them targets for reform efforts [7]. - Despite potential challenges for Express Scripts, Cigna's overall business is considered robust enough to withstand the impact of a weakened PBM segment [8].

Core Viewpoint - Cigna Group reported strong first-quarter 2025 results with adjusted EPS of $6.74, exceeding estimates by 5.5% and showing a year-over-year increase of 4.2% [1] - Adjusted revenues rose to $65.5 billion from $57.2 billion, beating consensus estimates by 7.7% [1] Financial Performance - The first-quarter results were driven by strong client relationships and growth in Evernorth Health Services, despite rising total benefits and expenses [2] - Cigna's medical customer base decreased by 6% year over year to 18 million, below the consensus estimate of 18.3 million due to the divestiture of Medicare businesses [3] - Total benefits and expenses increased by 16% year over year to $63.5 billion, primarily due to higher pharmacy and medical costs [4] - Adjusted income from operations fell by 2% year over year to $1.8 billion [4] Segment Performance - Evernorth Health Services saw adjusted revenues grow by 16% year over year to $53.7 billion, surpassing estimates of $50.1 billion [5] - Cigna Healthcare segment recorded total revenues of $14.5 billion, a 9% year-over-year increase, exceeding estimates of $12.2 billion [7] - The medical care ratio (MCR) deteriorated by 230 basis points year over year to 82.2% due to increased stop-loss medical costs [8] Financial Position - As of March 31, 2025, Cigna had cash and cash equivalents of $8.3 billion, up from $7.6 billion at the end of 2024 [9] - Total assets decreased to $150.7 billion from $155.9 billion at the end of 2024 [9] - Long-term debt reduced to $26.5 billion from $28.9 billion, while total equity decreased to $40.4 billion from $41.2 billion [9] Cash Flow and Capital Deployment - Cigna generated operating cash flows of $1.9 billion in Q1 2025, a decline of 60.3% from Q1 2024 [10] - The company repurchased shares worth approximately $1.5 billion in the first quarter of 2025, totaling 8.2 million shares for $2.6 billion year to date [12] Outlook - Adjusted EPS for 2025 is now estimated to be at least $29.60, indicating growth of at least 8.3% from 2024 [13] - MCR is projected to be in the range of 83.2-84.2% [13] - Adjusted revenues are forecasted to be a minimum of $252 billion, reflecting an improvement of at least 2% from 2024 [14]

Revenue Growth - Pharmacy revenues increased by 16% to $48,633 million for the three months ended March 31, 2025, compared to $42,036 million in the same period last year[130]. - Total revenues rose by 14% to $65,502 million in Q1 2025, up from $57,255 million in Q1 2024[130]. - Evernorth Health Services revenues increased by 16% to $53,681 million, while Cigna Healthcare revenues rose by 9% to $14,482 million compared to the same period in 2024[1]. - Adjusted revenues for the three months ended March 31, 2025, increased by 16% to $53,681 million, compared to $46,226 million in the same period of 2024[178]. - Pharmacy Benefit Services adjusted revenues increased by 14% to $29,742 million, while Specialty and Care Services revenues grew by 19% to $23,939 million[179]. Net Income and Earnings Per Share - Net income for Q1 2025 was $1,409 million, a significant improvement from a net loss of $212 million in Q1 2024[130]. - Shareholders' net income per share for Q1 2025 was $4.85, compared to a loss of $0.97 per share in Q1 2024[132]. - Shareholders' net income increased by $1,600 million, primarily due to the absence of net investment losses recorded in 2024[3]. Customer Metrics - Medical customers decreased by 6% to 18,043 thousand in Q1 2025, down from 19,184 thousand in Q1 2024[130]. - Medical customers decreased by 6%, mainly due to the HCSC transaction[5]. Operational Performance - Adjusted income from operations for Q1 2025 was $1,840 million, slightly down from $1,875 million in Q1 2024[131]. - The pre-tax margin for the overall operations decreased by 20 basis points to 2.7% from 2.9%[178]. - Pre-tax adjusted income from operations rose by 5% to $1,434 million, up from $1,360 million year-over-year[178]. - The medical care ratio for the Cigna Healthcare segment increased by 230 basis points to 82.2%, reflecting higher medical costs[189]. - The SG&A expense ratio for the Cigna Healthcare segment improved by 110 basis points to 19.4% due to revenue growth outpacing volume-related expenses[189]. - Pre-tax adjusted loss from operations in the Corporate segment remained consistent at $(411) million compared to $(409) million in the prior year[198]. Tax and Costs - The consolidated effective tax rate for Q1 2025 was 14.5%, a significant decrease from 368.4% in Q1 2024[130]. - Integration and transaction-related costs amounted to $216 million in Q1 2025, compared to $37 million in Q1 2024[131]. Investment and Debt - Net investment income decreased by 18% to $238 million in Q1 2025, down from $290 million in Q1 2024[130]. - The debt-to-capitalization ratio was 43.1% as of March 31, 2025, down from 43.8% at the end of 2024[11]. - As of March 31, 2025, the carrying value of the debt securities portfolio decreased from $9.4 billion to $8.2 billion, primarily due to the HCSC transaction[203]. - 84% of the debt securities, amounting to $6.9 billion, were rated investment grade (Baa and above), while $1.3 billion were below investment grade[204]. - The commercial mortgage loan portfolio was valued at $1.3 billion, consisting of approximately 40 fixed-rate loans, with a significant portion of borrower cash invested ranging between 30% and 40%[206]. - Other long-term investments totaled $4.7 billion, including investments in securities limited partnerships and real estate limited partnerships, with no single partnership exceeding 3% of the portfolio[208]. - The unconsolidated subsidiary investments portfolio supporting a joint venture in China was approximately $16.2 billion, with 75% in debt securities[210]. - The majority of the bonds below investment grade were rated at the higher end of the non-investment grade spectrum, consistent with the company's investment strategy[204]. - The commercial mortgage loan portfolio has no exposure to regional shopping malls and less than 25% exposure to office properties[207]. - The company does not expect future declines in investment fair values to have a material unfavorable effect on its financial condition or liquidity[202]. Share Repurchase and Cash Flow - The company repurchased 5.0 million shares for approximately $1.5 billion during the three months ended March 31, 2025[10]. - Operating cash flows decreased to $1,920 million from $4,840 million in the same period last year, primarily due to timing of settlements[9]. Transaction and Acquisitions - The company completed the HCSC transaction on March 19, 2025, with a purchase price of $4.8 billion, receiving $4.2 billion in cash at closing[8]. - Unpaid claims and claim expenses liability decreased by 10% to $4,508 million, driven by the HCSC transaction[193]. - The company expects continued volatility in private equity and real estate fund performance as market valuations adjust[209]. - As of March 31, 2025, there was no material change in the company's risk exposure as reported in the 2024 Form 10-K[213].

Core Insights - Cigna reported $65.45 billion in revenue for Q1 2025, a 14.3% year-over-year increase, with an EPS of $6.74 compared to $6.47 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Financial Performance - Revenue of $65.45 billion surpassed the Zacks Consensus Estimate of $60.8 billion, resulting in a surprise of +7.66% [1] - EPS of $6.74 exceeded the consensus estimate of $6.39, delivering a surprise of +5.48% [1] Key Metrics - Medical Care Ratio was reported at 82.2%, slightly better than the estimated 82.4% [4] - Total Medical Customers were 18.04 million, below the estimated 18.33 million [4] - U.S. Healthcare Insured Medical Customers were 2.65 million, significantly lower than the estimated 3.23 million [4] - International Health Insured Medical Customers were reported at 1.23 million, matching the average estimate [4] Revenue Breakdown - Pharmacy revenues reached $48.63 billion, exceeding the average estimate of $45.58 billion, marking a +15.7% year-over-year change [4] - Net investment income was $238 million, below the average estimate of $255.45 million, reflecting a -17.9% year-over-year decline [4] - Evernorth Health Services generated $53.68 billion, surpassing the estimated $50.54 billion, with a +16.1% year-over-year increase [4] - Cigna Healthcare revenues were $14.53 billion, exceeding the average estimate of $12.16 billion, representing a +9.4% year-over-year change [4] - Premiums from Cigna Healthcare totaled $12.63 billion, above the estimated $11.02 billion, showing a +9.5% year-over-year increase [4] - Evernorth Health Services Pharmacy revenues were $50.23 billion, exceeding the average estimate of $47.34 billion, with a +16.3% year-over-year change [4] - Fees and Other revenues were reported at $3.90 billion, slightly above the estimated $3.84 billion, reflecting a +17.1% year-over-year increase [4] - Total Premiums reached $12.74 billion, surpassing the estimated $10.60 billion, indicating a +9.8% year-over-year increase [4]

Core Insights - Cigna Group reported first-quarter 2025 revenue of $65.45 billion, exceeding analyst estimates of $60.39 billion, with a year-over-year sales increase of 14% driven by existing client relationships and strong growth in specialty pharmacy services [1] - Adjusted earnings per share were $6.74, surpassing analysts' expectations of $6.35 [1] Revenue Breakdown - Evernorth Health Services, which includes Pharmacy Benefit and Specialty and Care Services, achieved first-quarter sales of $53.68 billion, reflecting a 16% increase [2] - Cigna Healthcare segment sales rose 9% to $14.48 billion, primarily due to premium rate increases to cover expected medical cost increases [3] Customer Metrics - Total medical customers decreased by 6% from December 31, 2024, to 18.04 million, largely due to the impact of the HCSC transaction; however, excluding this impact, customer numbers remained stable [4] - Total customer relationships reached 182.2 million as of March 31, 2025, with a 1% increase when excluding the HCSC transaction [4] - Total pharmacy customers increased by 3% to 122.3 million, attributed to new sales and expanded relationships [4] Future Outlook - Cigna anticipates fiscal 2025 adjusted income per share of $29.60, slightly up from the previous estimate of $29.50, aligning with consensus expectations [5] - Evernorth's adjusted income from operations is projected to be at least $7.2 billion, with Cigna Healthcare expected to contribute at least $4.125 billion [5] Financial Ratios - The Cigna Healthcare Medical Care Ratio (MCR) is expected to range between 83.2% to 84.2% [6] - The MCR for the first quarter of 2025 was reported at 82.2%, an increase from 79.9% a year ago, primarily due to higher stop-loss medical costs [7]

Financial Data and Key Metrics Changes - The company reported total revenue of $65.5 billion for the first quarter of 2025, with adjusted earnings per share (EPS) growing to $6.74, leading to an increase in full-year EPS guidance to at least $29.6 [9][32][36] - Net after-tax special item charges amounted to $229 million, or $0.84 per share, which included a charge of $163 million related to a strategic optimization program [6][10] Business Line Data and Key Metrics Changes - EverNorth's revenues grew to $53.7 billion, with pretax adjusted earnings increasing by 5% to $1.4 billion [32] - Specialty and Care Services within EverNorth saw a revenue increase of 19% to $23.9 billion, while pharmacy benefit services reported a 14% revenue growth [33][24] - Cigna Healthcare's revenues were $14.5 billion, with pretax adjusted earnings of $1.3 billion and a medical care ratio (MCR) of 82.2% [34] Market Data and Key Metrics Changes - The company noted strong demand for strategic partners in healthcare, driven by the unsustainable trajectory of U.S. healthcare expenditures, which exceed $4.5 trillion annually [11] - The specialty pharmacy market is experiencing attractive growth rates due to new drug introductions and increased adoption of biosimilars [22] Company Strategy and Development Direction - The company is focused on building a more sustainable healthcare model, addressing key areas such as access, support, value, accountability, and transparency [12][14] - Strategic acquisitions, partnerships, and divestitures are part of the company's ongoing portfolio management, with the recent sale of its Medicare business as a notable example [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver 10% to 14% compounded EPS growth over the strategic horizon, despite a dynamic and challenging environment [14][15] - The company anticipates elevated medical cost trends in 2025 but remains optimistic about its action plans to improve margins and overall performance [35] Other Important Information - The company has repurchased 8.2 million shares for approximately $2.6 billion, reflecting a disciplined capital management strategy [39] - The company is committed to enhancing customer experience and transparency, with positive stakeholder feedback on recent initiatives [25][24] Q&A Session Summary Question: Weight loss and GLP-1 pricing opportunities - Management discussed the comprehensive approach to GLP-1 programs and the potential for improved pricing as net pricing decreases in this class, with over 50% of employers providing coverage for weight management [42][48] Question: Economic environment impact on client discussions - Management noted that affordability remains a key focus for employers, with strong retention rates in the Express Scripts business and continued interest in personalized solutions [56][58] Question: Stop loss business performance and cost trends - Management confirmed that the stop loss margin improvement plan is on track, with elevated trends in specialty and behavioral categories observed in the first quarter [63][70] Question: Arkansas legislation and potential conflicts of interest - Management opposed the Arkansas bill, emphasizing the importance of maintaining choice and transparency in the marketplace [75][76] Question: Capital deployment and M&A strategy - Management reiterated a consistent capital deployment strategy focused on supporting business growth, with a priority on bolt-on acquisitions [84][88]

Group 1: Earnings Performance - Cigna reported quarterly earnings of $6.74 per share, exceeding the Zacks Consensus Estimate of $6.39 per share, and showing an increase from $6.47 per share a year ago, representing an earnings surprise of 5.48% [1] - The company posted revenues of $65.45 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.66%, compared to year-ago revenues of $57.25 billion [2] - Over the last four quarters, Cigna has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Cigna shares have increased approximately 21.4% since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $7.17 on revenues of $61.56 billion, and for the current fiscal year, it is $29.61 on revenues of $252.36 billion [7] Group 3: Industry Context - The Medical - HMOs industry, to which Cigna belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Cigna's stock performance [5] - The Zacks Rank for Cigna is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Exhibit 99.1 BLOOMFIELD, CT, May 2, 2025 – Global health company The Cigna Group (NYSE: CI) today reported strong first quarter 2025 results, reflecting growth and focused execution across its diversified portfolio of businesses. "We are building a more sustainable health care model by successfully delivering on our series of commitments and actions to improve transparency and support for our customers and patients," said David M. Cordani, chairman and CEO of The Cigna Group. "Our strong first quarter resul ...