Cigna 2012 Annual Report Download - page 6

6
Remaining Operations
Our remaining operations – including operations in run
o – reported a combined adjusted loss from operations*
of $175 million in 2012. Our early-2013 agreement
with Berkshire Hathaway to effectively exit our run
o reinsurance businesses creates improved financial
flexibility, eliminates volatility and enables us to better
focus on our ongoing health and related businesses.
Continued Success in a Dynamic
Global Business Environment
As we look forward, and assess the transforming economic
and regulatory environment, we see good opportunities for
continued innovation and growth. Demographic shifts and
economic pressures are creating a search for solutions –
especially in the health care sector, where the need to
improve health quality and provide aordable care is
prompting a number of legislative and regulatory activities –
including in the U.S., where health care reform is well
underway. We are well prepared to continue our success
by going deep in our existing markets and selectively
expanding our operations.
As we’ve already seen, the organizations that excel will
be those best equipped to act strategically, nimbly and
with laser focus. Our agility in this environment, in large
part, comes from the degree to which we have successfully
distinguished ourselves as a global health service company,
set apart from traditional health insurance companies.
This transformation began several years ago as we
pioneered the health service model and determined that
our relationships with customers must go deeper than
paying claims. Our thousands of nurses, health coaches,
case managers, health educators and other allied health
professionals form the backbone of a health service
approach that promotes prevention, helps customers
stay well, and understands how to help each customer
on a one-to-one basis – a capability we’ve bolstered
significantly through our acquisition of HealthSpring,
which provides us with a best-in-class physician
engagement model that complements our path to build
collaborative provider relationships.
Our success also comes from the ability to apply the
breadth of our expertise across a diverse global portfolio
of businesses. By orienting ourselves around customer
segments and solutions, rather than geographies, we can
take advantage of our distribution and service delivery
capabilities, more eectively execute our strategy, and
capitalize on market opportunities for the benefit of our
customers and clients. For example, we can now better
serve our global employers and better serve our individual
customers both internationally and in the growing seniors
segment in the United States. In one specific example,
we learned from our U.S. dental operation how to create a
dental product that has become one of the fastest-growing
products in South Korea, to the direct benefit of our
customers in that country.
Cigna’s Critical Differentiators
Cigna has the scale, experience and talent to continue
being successful in developed, developing and emerging
markets as we leverage three critical dierentiators.
The first is putting our customers at the center of
everything we do, aided by deep analytical insights
that allow us to better understand their needs.
Customer-supporting technologies are a major part
of the integrated, tailored programs we bring to our
customers to empower them to make more informed
health care decisions. More than “apps for the sake
of apps” or technology for the sake of technology,
these programs are at the forefront of the support we
bring, and are serious investments to keep our customers
healthy, which ultimately saves on medical costs.
For example, in 2012, we enhanced myCigna.com to
provide pricing and quality information on doctors
and hospitals for more than 200 medical procedures –
representing 80 percent of customer claims – based on
the customer’s health plan and available health account
funds. We also recently introduced four healthy living
mobile phone applications designed to help our
customers eat right, exercise, get enough sleep and
manage stress.