CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer

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CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
CIGNA CORPORATION
37th Annual J.P. Morgan Healthcare Conference
January 7, 2019
David Cordani
President and Chief Executive Officer
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Forward-looking statements and Non-GAAP measures
  CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

  This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on Cigna's current expectations and projections about future trends, events and
  uncertainties. These statements are not historical facts. Forward-looking statements may include, among others, statements concerning our long-term projected adjusted income (loss) from operations outlook; expectations for growth in 2019, including
  but not limited to global medical and individual Medicare Advantage customer growth for 2019, growth in international markets and expectations for core business adjusted claims growth for 2019; projected growth beyond 2019; projected medical care
  and operating expense ratios and medical cost trends; our projected consolidated adjusted tax rate; future financial or operating performance, including our ability to deliver personalized and innovative solutions for our customers and clients; future
  growth, business strategy, strategic or operational initiatives; economic, regulatory or competitive environments, particularly with respect to the pace and extent of change in these areas; financing or capital deployment plans and amounts available for
  future deployment; our prospects for growth in the coming years; the merger (the “Merger”) with Express Scripts Holding Company (“Express Scripts”) and other statements regarding Cigna's future beliefs, expectations, plans, intentions, financial
  condition or performance. You may identify forward-looking statements by the use of words such as “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “may,” “should,” “will” or other words or expressions of similar meaning,
  although not all forward-looking statements contain such terms.

  Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those expressed or implied in forward-looking statements. Such risks and uncertainties include, but are
  not limited to: our ability to achieve our financial, strategic and operational plans or initiatives; our ability to predict and manage medical costs and price effectively and develop and maintain good relationships with physicians, hospitals and other health
  care providers; the impact of modifications to our operations and processes; our ability to identify potential strategic acquisitions or transactions and realize the expected benefits of such transactions, including with respect to the Merger; the substantial
  level of government regulation over our business and the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of litigation, regulatory audits, investigations, actions and/or guaranty fund assessments;
  uncertainties surrounding participation in government-sponsored programs such as Medicare; the effectiveness and security of our information technology and other business systems; unfavorable industry, economic or political conditions, including
  foreign currency movements; acts of war, terrorism, natural disasters or pandemics; the possibility that the anticipated benefits (including anticipated synergies) from the Merger cannot be realized in full, or at all or may take longer to realize than
  expected; problems regarding the successful integration of the businesses of Express Scripts and Cigna; unexpected costs regarding the Merger; the ability to retain key personnel; as well as more specific risks and uncertainties discussed in our most
  recent report on Form 10-K and subsequent reports on Forms 10-Q and 8-K available on the Investor Relations section of www.cigna.com as well as on Express Scripts’ most recent report on Form 10-K and subsequent reports on Forms 10-Q and 8-K
  available on the Investor Relations section of www.express-scripts.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance or results, and are
  subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Cigna undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may
  be required by law.

  NON-GAAP MEASURES AND FINANCIAL INFORMATION

  The Company uses adjusted income from operations as the principal measure of performance when describing its financial results and outlook. On a consolidated basis, adjusted income from operations is not determined in accordance with accounting
  principles generally accepted in the United States of America (“GAAP”). Adjusted income from operations is defined as shareholders’ net income (loss) excluding after-tax realized investment results, net amortization of other acquired intangible assets,
  special items and, for periods ended on or prior to December 31, 2014, the results of Cigna’s Guaranteed Minimum Income Benefits (GMIB) business. Management uses adjusted income from operations to measure financial performance because it
  presents underlying results of operations and permits analysis of trends in underlying revenue, expenses and shareholders’ net income. On a consolidated basis, adjusted income from operations should not be viewed as a substitute for the most directly
  comparable GAAP measure - shareholders’ net income.

  “Global medical customers” include individuals who meet any one of the following criteria: are covered under a medical insurance policy, managed care arrangement, or service agreement issued by Cigna; have access to Cigna's provider network for
  covered services under their medical plan; or have medical claims and services that are administered by Cigna. “Adjusted claims” includes an adjustment to reflect non-specialty network claims filled through 90-day programs. These claims are
  multiplied by three, as these claims, on average, typically cover a time period three times longer than other network claims. Home delivery claims are also multiplied by three as home delivery claims typically cover a time period three times longer than
  unadjusted network claims. All other network and specialty claims are counted as one claim. “Core business” excludes the contributions from Anthem and Coventry and their clients, which together are referred to as the “transitioning clients.”

  *In this presentation, the term “earnings” means adjusted income from operations and “earnings per share” means adjusted inco me from operations on a fully diluted per share basis. The appendix to this presentation contains a
  reconciliation of adjusted income from operations on a consolidated basis to shareholders’ net income, the most directly comp arable GAAP measure. Management is unable to provide a forward-looking reconciliation of adjusted
  income from operations to shareholders’ net income for full year 2018 because we are unable to predict, without unreasonable effort, certain components thereof, including future net realized investment results and future special items.
  Peer information is presented on the basis of their respective principal financial performance measure.

© 2019 Cigna                                                                                                                                                                                                                                                             2
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Identity and mission

                   Who we are
      We are a global health service company
       dedicated to providing whole-person
              services and solutions

                   Our mission
         To improve the health, well-being and
           peace of mind of those we serve

                      Our role
           To be champions for our customers
                  and our communities

© 2019 Cigna                                     3
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Track record

                   Revenue                                                       11%                                                     EPS                     15%
                                                                                CAGR                                                                            CAGR

                                                 2009              2018                                                                          2009    2018

      8 consecutive years                                                                                                                      85% of Medicare Advantage
      of organic Commercial enrollment growth                                                                                                  customers in value-based
                                                                                                                                               arrangements
      6 years of industry-leading medical
      cost trend                                                                                                                               Further depth and differentiation in
                                                                                                                                               high-growth international markets
      500+ physician collaboratives
                                                                                                                                               Strong margins and free cash flows
      Continued innovation of specialty solutions

2018 outlook as of Cigna’s 3rd quarter earnings release on November 1, 2018. Cigna does not undertake to review or update this information.

© 2019 Cigna                                                                                                                                                                          4
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Global market forces                           Eroding
                                                         health status

                      Aging
                                                                         Changing role
                  population
                                                                         of consumers

                                                INCREASING
                                                  SOCIETAL
                                                PRESSURES
               Technological                                             Affordability
                  innovation                                             and accessibility
                                                                         challenges

                             Regulatory and
                          legislative climate

© 2019 Cigna                                                                                 5
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Strategy aligned with key needs

                             Employer and            Health care
        Customers            health plan clients     professionals    Communities        Government
        Personalized,        Greater affordability   Value-based      Improved health,   Expanded access
        affordable solutions and productivity        partnering and   vitality and       and improved
                                                     care delivery    productivity       affordability

                   Tremendous need for affordability, personalization and predictability

                  Our strategy:            Go Deeper          Go Local      Go Beyond

© 2019 Cigna                                                                                               6
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Combination with Express Scripts accelerates our strategy

                 INCREASE          EXPAND         ENHANCE
               AFFORDABILITY,   DISTRIBUTION   STRATEGIC AND
                CHOICE AND         REACH         FINANCIAL
               PREDICTABILITY                    FLEXIBILITY

© 2019 Cigna                                                    7
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Four growth businesses – innovating to deliver more
          affordability and personalization

              INTEGRATED MEDICAL:        HEALTH SERVICES   INTERNATIONAL
         COMMERCIAL         GOVERNMENT                        MARKETS

© 2019 Cigna                                                               8
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Commercial Employer

                                                  • Insights, incentives and care resources to
                                                    engage and align customers, clients and
                                                    health care professionals

                                                  • Deeply integrated medical and specialty offerings

                                                  • Unique capabilities in the Select and Middle
                                                    Market segments – substantial runway for
                                                    continued growth

                                                      6 years leading          8 years of organic
                                                       medical cost           commercial medical
                                                       trend results           enrollment growth

          Aligned, transparent, integrated solutions  improved
          outcomes and costs  Consistent, strong growth
© 2019 Cigna                                                                                            9
CIGNA CORPORATION 37th Annual J.P. Morgan Healthcare Conference January 7, 2019 - David Cordani President and Chief Executive Officer
Government

                                                  • Highly attractive Individual Medicare Advantage plan
                                                    offerings in targeted geographies

                                                  • Outstanding physician engagement, care
                                                    coordination and clinical quality

                                                  • 85% of MA customers serviced through value-based
                                                    care arrangements

                                                  • Strong MA Part D networks and formularies focused
                                                    on improving total pharmacy costs
                                                       4.5 Star MA
                                                                                NPS scores as
                                                        Corporate
                                                                                 high as 80
                                                      Rating for 2020

          Well positioned for growth in existing and new
          Medicare Advantage markets
© 2019 Cigna                                                                                          10
Health Services
                                                     • Broad range of solutions customized to customer
                                                       and client needs while enabling further alignment
            Commercial             Health plan         with health care professionals
         employer clients          clients
                                                     • Technology-focused solutions, with applied analytics
                                                       to prevent, detect and help close gaps in care
       Medicare                          Part D
      Advantage                          customers
                                                     • Deep clinical capabilities and specialized care
      customers                                        models for chronic and complex conditions

                                                     • Unparalleled expertise in Specialty Pharmacy
             Government            Value-based
           agency clients          health care
                                   partners                Innovative              1B+ customer
                                                          value-based               touchpoints
                                                            solutions                 annually

          Highly innovative, customer-centric solutions
          enabling better care at lower cost
© 2019 Cigna                                                                                               11
International Markets

          INDIVIDUAL                                                                 EMPLOYER
          CUSTOMERS                                                                  CLIENTS

                                              U.K.
                                               Belgium           China
                                 USA
               SUPPLEMENTAL                         Turkey             South Korea              GLOBAL
                                            Spain           India    Taiwan
               HEALTH,                                 UAE        Hong Kong                     HEALTH
               LIFE & ACCIDENT                       Singapore Thailand                         BENEFITS
                                                                  Indonesia
               PRIVATE MEDICAL                                                                  DOMESTIC
               INSURANCE                                                                        HEALTH CARE
                                                                   New Zealand

                  Locally managed and licensed, 30+ years in-country experience
                             Proven global platform for employer solutions
          Continuous innovation of products, services and
          distribution  strong sustained growth and margins
© 2019 Cigna                                                                                               12
Momentum into 2019 and beyond                                                                                                                      2X EPS
                                                                                                                                                               $20 to $21
                                                                   2018 EPS growth of                         36% to 38%

                                                                                                             $14.20 to
  2017 EPS growth of                          29%                                                             $14.40

                                                                                           xxx               xxx
                                $10.46                                           $10.46                                                             $10.46

         $8.10
                                                                                       2017                              2018                        2017         2021
            2016                      2017
               All ongoing reporting segments driving significant growth
2018 outlook as of Cigna’s 3rd quarter earnings release on November 1, 2018. Cigna does not undertake to review or update this information.
Ongoing reporting segments refers to the Cigna’s Global Health Care, Global Supplemental Benefits and Group Disability & Life reporting segments.
© 2019 Cigna                                                                                                                                                                13
Outlook for 2019

                                 Organic                                                                                                                   Express Scripts
                             medical customer                                                                                                           core pharmacy claims
                            growth of 300,000 –                                                                                                               growth of
                               400,000 lives                                                                                                                   2 to 3%
                                                                                                      Strength and
                                                                                                     growth across
                                                                                                       each of our
                                                                                                       businesses
                               Mid-single digit %                                                                                                               Continued
                                Individual MA                                                                                                                 strong growth
                               Customer Growth                                                                                                          in International Markets

Pharmacy claims growth of 2 to 3% pertains to Express Scripts core business adjusted claims, which excludes contributions from transitioning clients.
© 2019 Cigna                                                                                                                                                                       14
Longer-term outlook

                        Four well-positioned growth platforms

                     10 - 13% average annual EPS growth objective
                             Anticipate exceeding high end
                  of annual 10-13% EPS growth target on path to 2021

               Operating model and talent that embrace disruptive change

© 2019 Cigna                                                               15
Capital deployment priorities

                Reinvest in businesses to drive long-term growth

                Return to normalized leverage (upper 30’s debt to capitalization ratio)
                within 18-24 months following close of ESRX transaction

                Strategic M&A in areas of focus

                Return capital to shareholders

               Significant capacity to externally deploy capital even during
               18 - 24 month deleveraging period

© 2019 Cigna                                                                              16
Clear path to 2021 EPS target
                                                  Expect ~15% EPS average annual growth through 2021
    $21
                                                                                                                                      ↑ ~ $3
                                                                                                                                                                                $20 to $21
                                                                                    ↑ $3 to $4

                                        ~ $14*

                                    2018 guidance                                     2019-2021                                   2019-2021                                       2021 EPS target
                                     incl. baseline                                earnings growth                            capital deployment
                                      adjustments                                  ex combination**                                including
                                                                                                                                combination**
 *2018 EPS outlook of $14.20 to $14.40 excluding $0.55/share in net baseline reductions as of Cigna’s 3 rd quarter earnings release on November 1, 2018. Cigna does not undertake to review or update this information.
 Baseline adjustments consist of expected year-over-year reductions from U.S. Individual outperformance of approximately $0.40/share and prior year reserve development
 of approximately $0.35/share, partially offset by a year-over-year increase from the industry tax suspension of $0.20/share.
 “*Combination” refers to Cigna’s acquisition of Express Scripts.

© 2019 Cigna                                                                                                                                                                                                              17
Compelling valuation
             2009 – 2018 EPS CAGR                                                                                                                               2019 PE Ratio
               15%
                                                                      • Above-market organic growth
                              13%
                                              11%
                                                                      • Strong margins, FCF and ROIC
              Cigna           MCO          S&P 500
                              peers        average                                                                                                                                 16.1
                                                                      • Thrive amid disruptive change                                                                                       14.7
         2009 – 2018 Revenue CAGR
                                                                      • Responsible capital deployment
               11%                                                                                                                                                 11.9
                               8%              5%
                                                                      • 441% TSR since 2009  2.6x S&P 500
              Cigna           MCO           S&P 500
                              peers         average
                                                                                                                                                                   Cigna           MCO     S&P 500
          2009 – 2017 Average ROIC                                                                                                                                                 peers   average
                                                                           Expect to exceed high end                                                              As of 12/31/18
               14%                                                          of strategic EPS growth
                              11%             11%                           range and deliver ~15%
              Cigna           MCO          S&P 500                           average annual growth
                              peers        average
                                                                                  through 2021
2018 revenue and earnings for MCO peers ANTM, HUM and UNH are based on the companies’ most recent guidance and for AET are based on consensus estimates prior the company’s
acquisition. 2018 revenue and earnings for S&P 500 are based on consensus expectations. 2019 PE ratios are based on consensus expectations and For MCO peers includes
ANTM, HUM and UNH. 2018 outlook as of Cigna’s 3rd quarter earnings release on November 1, 2018. Cigna does not undertake to review or update this information.
© 2019 Cigna                                                                                                                                                                                         18
Well positioned to continue thriving amid change
                                        • Consistent strong growth in customers, revenue, earnings, EPS
               Track record             • Strong margins and ROIC
                                        • Industry leading medical cost trend

                                        • Commercial      • Health Services
               Four growth businesses   • Government      • International Markets

                                        • Integrated, transparent, personalized solutions
               Innovation               • Cigna Collaborative Care
                                        • Safeguard Rx

                                        • Open architecture to maximize choice
               Strategic flexibility    • Aligned incentives to improve health quality and affordability
                                        • Optionality in dynamic environment

                                        • Efficient service-based model
               Financial strength       • Strong free cash flow generation
                                        • Reinvestment & capital deployment to drive long-term growth

         Cigna Investor Day – May 31, 2019 – New York City
© 2019 Cigna                                                                                               19
Appendix

        Reconciliation of GAAP to Non-GAAP Financial Measures
        (Dollars in millions, except per share amounts)

                                                                                  YEAR ENDED
                                                                     12/31/2009      12/31/2016    12/31/2017
        EPS (FULLY DILUTED):
           Shareholders' net income                              $        4.69             7.19         8.77
              Results of guaranteed minimum income benefits              (0.76)             -            -
              Net realized investment losses (gains)                      0.09            (0.42)       (0.61)
              Amortization of other acquired intangible assets            0.13             0.36         0.26
              Special items                                              (0.08)            0.97         2.04
           Adjusted income from operations                       $        4.07             8.10        10.46

© 2019 Cigna
CIGNA CORPORATION
37th Annual J.P. Morgan Healthcare Conference
January 7, 2019
David Cordani
President and Chief Executive Officer
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