Cigna 2013 Annual Report Download - page 34

PART I
ITEM 1. Business
We also report in two other segments: Run-off Reinsurance and Other Operations, including Corporate-owned Life Insurance.
Key Transactions
Over the past two years, we have entered into a number of We acquired Great American Supplemental Benefits to both
transactions that have helped us to achieve our strategic goals by: strengthen our capabilities in the individual market and facilitate
(1) repositioning the portfolio for growth in targeted geographies, our expansion into the Medicare supplemental business.
product lines, buying segments and distribution channels; We entered into a joint venture with Finansbank to expand our
(2) improving our strategic and financial flexibility; and (3) pursuing global footprint in Turkey.
additional opportunities in high growth markets with particular focus
on individuals. Specifically:
Other Information
In February 2013, we effectively exited our Run-off guaranteed
The financial information included in this Annual Report on
minimum death benefit (‘‘GMDB’’ also known as ‘‘VADBe’’) and
Form 10-K for the fiscal year ended December 31, 2013
guaranteed minimum income benefit (‘‘GMIB’’) reinsurance
(‘‘Form 10-K’’) is in conformity with accounting principles generally
businesses by entering into an agreement with Berkshire Hathaway
accepted in the United States of America (‘‘GAAP’’), unless otherwise
Life Insurance Company of Nebraska (‘‘Berkshire’’) to reinsure
indicated. Industry rankings and percentages set forth herein are for
100% of our future exposures for these businesses, net of
the year ended December 31, 2013 unless otherwise indicated. In
retrocessional arrangements in place as of February 4, 2013, up to a
addition, statements set forth in this document concerning our rank
specified limit.
or position in an industry or particular line of business have been
In June 2013, we entered into a ten-year pharmacy benefit developed internally, based on publicly available information, unless
management services agreement with Catamaran Corporation otherwise noted.
(‘‘Catamaran’’). Under this agreement, we will utilize Catamaran’s
Cigna Corporation was incorporated in Delaware in 1981. Our
technology and service platforms, prescription drug procurement
annual, quarterly and current reports, proxy statements and other
and inventory management capabilities, and order fulfillment
filings, and any amendments to these filings, are made available free of
services to lower costs and enhance our home delivery pharmacy,
charge on our website (http://www.cigna.com, under the ‘‘Investors –
retail network contracting and claims processing services.
Quarterly Reports and SEC Filings’’ captions) as soon as reasonably
In 2012, we entered into three strategically significant transactions practicable after we electronically file these materials with, or furnish
targeting several key markets: seniors, individual and global them to, the Securities and Exchange Commission (the ‘‘SEC’’). We
supplemental benefits: use our website as a channel of distribution for material company
We acquired HealthSpring, a Medicare Advantage provider, to information. Important information, including news releases, analyst
assist us in serving individuals across their life stages and deepen presentations and financial information regarding Cigna is routinely
our presence in a number of geographic markets. This acquisition posted on and accessible at www.cigna.com. See ‘‘Code of Ethics and
brought us industry-leading physician partnership capabilities, Other Corporate Governance Disclosures’’ in Part III, Item 10
deepened our existing client and customer relationships, and beginning on page 116 of this Form 10-K for additional available
facilitated a broader deployment of our range of health and information.
wellness capabilities and product offerings.
Global Health Care
The Global Health Care segment constitutes approximately 80% of commercial health care business also serves individuals. Through this
our revenues and aggregates the Commercial and Government segment, we offer our insured and self-insured customers medical,
operating segments due to their similar economic characteristics, dental, behavioral health, vision, and prescription drug benefit plans,
products and services and regulatory environment. All products and health advocacy programs and other products and services that may be
services sold by this segment are offered by subsidiaries of Cigna integrated as part of a comprehensive global health care benefit
Corporation. We seek to differentiate ourselves in this business by program. Our Government operating segment offers Medicare
providing deep customer insights, high quality care delivery, effective Advantage, Medicare Part D and Medicaid plans.
product integration and unique product offerings. We expect to
accomplish these goals by targeting selected geographies and market
Principal Products and Services
segments and accelerating our engagement with employers,
Commercial Medical Health Plans – U.S. and
individuals and preferred health care professionals.
International
Our Commercial operating segment encompasses both our U.S.
commercial and certain international health care businesses serving The Commercial operating segment, either directly or through its
employers and their employees, including globally mobile individuals, partners, offers some or all of its products in all 50 states, the District
and other groups (e.g. governmental and non-governmental
organizations, unions and associations). In addition, our U.S.
2 CIGNA CORPORATION - 2013 Form 10-K
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