8-KRegulation FD

Cigna Group 8-K Report, Regulation FD Disclosure (Jan 23, 2019)

Filed January 23, 2019For Securities:CI

Summary

Cigna Group filed this Current Report (8-K) on January 23, 2019, to disclose significant changes in its business segment reporting structure, effective from the fourth quarter of 2018. This change follows the completion of its acquisition of Express Scripts Holding Company on December 20, 2018. The report details the new segment organization, which includes Integrated Medical, Health Services, International Markets, and Group Disability and Other. Investors should note that prior period results presented in this filing have been restated to reflect the new segment structure, but these prior periods do not include the results of Express Scripts. The company also announced a conference call on January 23, 2019, to discuss these segment reporting changes. This filing is crucial for understanding how Cigna's business is now organized post-Express Scripts acquisition and how its financial performance will be reported going forward.

Key Highlights

  • 1Cigna Group has updated its business segment reporting structure, effective Q4 2018, following the acquisition of Express Scripts.
  • 2The new segments are: Integrated Medical, Health Services, International Markets, and Group Disability and Other.
  • 3Prior period financial results have been restated to align with the new segment structure, but do not include Express Scripts' historical results.
  • 4The Health Services segment now primarily comprises the acquired Express Scripts business, excluding its Medicare Part D operations.
  • 5Express Scripts' Medicare Part D business is now reported within the Government operating segment of Cigna's Integrated Medical segment.
  • 6Cigna hosted a conference call on January 23, 2019, to explain these segment reporting changes.
  • 7The filing includes detailed segment-level financial data for various periods (nine months ended Sep 30, 2018, and years ended Dec 31, 2017, and 2016) under the new reporting structure.

Frequently Asked Questions

This 8-K filing is primarily to inform investors about the significant changes in Cigna Group's business segment reporting structure, which became effective in the fourth quarter of 2018, following the completion of the Express Scripts acquisition.

The acquisition led to a restructuring of Cigna's reporting segments. The 'Health Services' segment now largely represents the acquired Express Scripts business, with its Medicare Part D operations being integrated into the 'Integrated Medical' segment's government business. Other segments have also been redefined or consolidated.

No, the prior period financial results (for periods prior to Q4 2018) presented in this filing have been restated to reflect the new segment structure but do not include the financial results attributable to Express Scripts.

The conference call, held on January 23, 2019, was intended to describe the segment reporting changes to investors and analysts and to answer any questions related to these changes.