F O R I N T E R N A L U S E O N L Y Business Acumen Competitive Analysis: United Health Group Team Awesome

F O R I N T E R N A L U S E O N L Y United Health Group: General Information Founded 1977 CEO: Steven J. Hemsley (Stock $85.89 on NYSE) Business: –Parent Company: United Health Group –Optum (information and technology enabled services), United HealthCare (healthcare coverage and benefits) –85mm customers worldwide,160k employees, operate in USA and 125 global countries –Products: Individual/family, employer, Physician/healthcare, Professionals, Broker Producer, Medicare, Medicaid, Dental, Pharmacy, Life and Disability 2 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna

F O R I N T E R N A L U S E O N L Y United Health Group: Mission Our mission is to help people live healthier lives and help make the health system work better for everyone –We seek to enhance the performance of the health system and improve the overall health and well-being of the people we serve and their communities. –We work with health care professionals and other key partners to expand access to high quality health care so people get the care they need at an affordable price. –We support the physician/patient relationship and empower people with the information, guidance and tools they need to make personal health choices and decisions. 3 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna

F O R I N T E R N A L U S E O N L Y Financials 4 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 2013 ResultsCignaUnited Cash$2.8B$7.3B Cash Flow$719M$7.0B Total Revenues$32.4B$122.5B Operating Profit$2.2B$8.9B Operating Profit Margin6.7%7.9% Net Profit$1.5B$5.6B Net Profit Margin4.6%4.5% Earnings per Share$5.18$5.50 Return on Equity14.0%17.4% Revenue Growth11.2%10.7% Net Income Growth-9.1%1.8% Earnings per Share Growth-7.7%4.2%

F O R I N T E R N A L U S E O N L Y Strengths and Weaknesses Strengths: Industry Recognition Innovative –Opened health care stores in NYC and Philadelphia, LA –16 temporary centers in malls across the country –My Easy Book – online service for easier access to healthcare and cost –Genius Bar ideas (leveraging from Apple) Optum is an industry leaders with informatics and consumables Series of wellness theme shows online including Dr OZ Weaknesses: Legal woes, Size Not regarded highly by hospital and health system executives Government regulation and reform 5 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna

F O R I N T E R N A L U S E O N L Y What should we know and do Formidable competitor and very good with innovation – Much larger in terms of employee base and global reach However their size is also a disadvantage and we have the ability to be agile and quicker to react to changes in industry, legislation and regulation Focus on customer experience to compete against their volume Niche product development – better benefit packages More Innovative with technology and delivery systems Focus on growth strategy 6 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna

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