Cigna 2011 Annual Report Download - page 24

2CIGNA CORPORATION2011 Form10K
PARTI
ITEM 1 Business
C. Strategy
Cigna’s mission is to improve the health, well-being and sense of security
of the individuals it serves around the world. Key to our mission and
strategy is our customer-centric approach; we seek to engage our
U.S.-based and global customers in maintaining and improving their
health, well-being and sense of security by oering eective, easy-to-
understand insurance, health and wellness products and programs
that meet their unique individual needs. We do this by providing
access to relevant information to ensure informed buying decisions,
partnering with physicians and care providers in the U.S. and around
the world, and delivering a highly personalized customer experience.
is approach aims to deliver high quality care at lower costs for each
of our stakeholders: individuals, employers and government payors.
Cigna’s long-term growth strategy is based on: (1) repositioning the
portfolio for growth in targeted geographies, product lines, buying
segments and distribution channels; (2) improving its strategic and
nancial exibility; and (3) pursuing additional opportunities in high-
growth markets with particular focus on individuals.
Our mission is carried out through our enterprise growth strategy,
which has the following three tenets:
•
GO DEEP: Cigna seeks to drive scale by increasing presence and
brand strength in key geographic areas, growing in targeted segments
or capabilities, and deepening its relationships with current customers.
• GO GLOBAL: Cigna delivers a range of dierentiated products
and superior service to meet the distinct needs of a growing global
middle class and a globally mobile workforce through expansion in
existing international markets as well as extension of the Company’s
business model to new geographic areas.
•
GO INDIVIDUAL: Cigna strives to establish a deep understanding
of its customers’ unique needs and to be a highly customer-centric
organization through simplifying the buying process by providing
choice, transparency of information, and a personalized customer
experience. e Company’s goal is to build long-term relationships
with each of the individuals it serves and meet their needs throughout
the stages of their lives.
Cigna is also focused on improving its strategic and nancial exibility
by driving further cost reductions in its Health Care operating expenses,
improving its medical cost competiveness in targeted markets and
eectively managing balance sheet exposures. For further discussion
of the Company’s actions to manage its balance sheet exposures, see
the section on “Run-o Operations” in the Introduction section of
Management’s Discussion and Analysis of Financial Condition and
Results of Operations (“MD&A”) beginning on page34.
Key to the Company’s strategy is eectively deploying capital in pursuing
additional opportunities in high-growth markets. Consistent with this
objective, Cigna achieved a signicant milestone with the acquisition of
HealthSpring,Inc. in January2012. HealthSpring, a leading provider
of medical benets to the 65+ population through the Medicare
Advantage program, strengthens Cigna’s ability to serve individuals
across their life stages as well as deepens Cigna’s presence in a number
of geographic markets. e addition of HealthSpring brings industry
leading physician partnership capabilities and creates the opportunity
to deepen Cigna’s existing client and customer relationships, as well as
facilitates a broader deployment of Cigna’s range of health and wellness
capabilities and product oerings.
In each of Cigna’s ongoing businesses, the Company strives to dierentiate
itself in the marketplace and provide sustained value to its customers,
as more fully described below:
Health Care Segment: In the National market segment (consisting
of companies with 5,000 or more employees), Cigna focuses on large
employers that value the Company’s wellness programs, integrated
clinical approach and national network of health care providers. In
the Middle Market segment (companies with over 250 and less than
5,000employees), Cigna focuses on clients that value the Company’s
integrated product suite, broad range of funding options, and competitive
medical costs. In the Select market segment (companies with over 50 and
under 250employees), Cigna features unique self-funded plan options
and competitive product oerings. Cigna is also pursuing continued
growth in the Individual segment. An important part of the Company’s
growth strategy is to identify and capitalize on opportunities for growth
that extend Cigna’s reach, particularly in the Seniors and Individual
markets. Cigna’s acquisition of HealthSpring in January2012 (described
above) is an example of the execution of this strategy.
Disability and Life Segment: Cigna focuses on returning employees
to work quickly, resulting in a better quality of life for employees and
higher productivity and lower cost for employers. Cigna seeks growth
in this business with the Company’s market-leading return-to-work
program, which is based on early outreach and engagement, a full
suite of clinical and return-to-work resources, and specialized case
management services tailored to individual situations. Cigna’s value-
based products are aligned with employers’ growing recognition of the
link between employee health and productivity/protability. Along with
these products, Cigna’s consultative selling approach brings solutions
to clients and builds long-term relationships.
International Segment: Cigna continues to expand its supplemental
health, life and accident and global health benets businesses in existing
markets, including South Korea and China. Where the opportunity
to bring the Company’s product and health solutions to new markets
is attractive, Cigna enters new markets. In 2011, Cigna entered the
new market of Turkey and signed an agreement to establish a health
joint venture in India. Additionally, the 2010 acquisition of Vanbreda
International signicantly expanded the Company’s presence in the
global health benets market, while the 2011 acquisition of FirstAssist
in the U.K. added a travel accident insurance product line and expanded
the Company’s distribution channels.
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