Cigna 2009 Annual Report Download - page 69

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Ongoing Operations
The Company’s ability to increase revenue, shareholders’ net income and operating cash flows from ongoing operations is directly
related to progress on the execution of its strategic initiatives, the success of which is measured by certain key factors, including the
Company’s ability to:
x profitably price products and services at competitive levels that reflect emerging experience;
x maintain and grow its customer base;
x cross sell its various health and related benefit products;
x invest available cash at attractive rates of return for appropriate durations;
x reduce other operating expenses in the Health Care segment; and
x effectively deploy capital.
Strategy
As a global health service organization, CIGNA's mission remains focused on helping the people it serves improve their health, well-
being and sense of security. CIGNA’s long-term growth strategy is based on: (1) growth in targeted geographies, product lines,
buying segments and distribution channels; (2) improving its strategic and financial flexibility; and (3) pursuing additional
opportunities in high-growth markets with particular focus on individuals.
CIGNA expects to focus on the following areas it believes represent the markets or areas with the most potential for profitable growth:
x In the Health Care segment, the Company is concentrating on: (1) further enhancing its geographic focus in the middle market in
order to create geographic density; (2) growing the “Select” market, which generally includes employers with more than 50 but
fewer than 250 employees, by leveraging the Company’s customer knowledge, differentiated service model, product portfolio and
distribution model; and (3) engaging those national account employers who share and will benefit from the Company’s value
proposition of using health advocacy and employee engagement to increase productivity, performance and the health outcomes of
their employees.
x In the Disability and Life segment, CIGNA's strategy is to grow its Disability business by fully leveraging the key components of
its industry-leading disability management model to reduce medical costs for its clients and return their employees to work sooner
through: (1) early claim notification and outreach, (2) a full suite of clinical and return-to-work resources, and (3) specialized
case management services.
x In the International segment, the Company is targeting growth through: (1) product and channel expansion in its life, accident and
health business in key Asian geographies, (2) the introduction of new expatriate benefits products, and (3) further geographic
expansion.
The Company plans to improve its strategic and financial flexibility by driving further reductions in its Health Care operating
expenses, improving its medical cost competitiveness in targeted markets and effectively managing balance sheet exposures.
Also, in connection with CIGNA’s long-term business strategy, the Company remains committed to health advocacy as a means of
creating sustainable solutions for employers, improving the health of the individuals that the Company serves, and lowering the costs
of health care for all constituencies.