REGIONAL SEGMENT Analysis Report Presenter: Regional Segment Team October 2013 / Cigna University

Primary products, services, geographic operations, key customers/demographics, and distribution channels. Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 2 Regional Segment includes employers across a range of industries with 250-4,999 employees plus larger employers (5,000+) where all of the employees are on a single site/office or a single state. This categorization includes roughly 56K employers with approximately 63M customers accessing health benefits through these employer plans. As well, core to the segment strategy, is the 2013 launch of strategic imperative Go-to-market strategy – where our target geography represents 41 key target markets - within the Regional business is segmented into three key audiences and several sub-segment within those groups. Product strategy includes an integrated sale (medical, dental, pharmacy, behavioral) complemented by a suite of wellness programs. In 2013 expanded distribution channels to include the private and third party exchanges while further developing our direct and broker distribution channels. Key market segments are: Commercial (3.6M Customers Government & Education (1.7M Customers) Taft Hartley (1M Customers)

Core Strategies and Value Proposition (3 slides) Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 3

Top Five Strategic Priorities 1 Launch New Fully-Insured Capability 2 Achieve “Top 41” Total Medical Cost 3 Launch Integrated Pricing 4 Deliver Market-Level P&L with Actionable Information 5 Release Enhanced Version 3.0 of Better Health. Guaranteed

Value Proposition We are best positioned to help employers control health costs in a meaningful and sustained way because we excel at improving the health and productivity of the customers we serve. Our approach to health and productivity helps our clients break from the status quo and gain a completive edge. We do this by putting our customers on the pathway to health

Performance and the 5 Drivers Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 6 Regional Segment '12 - '17 CAGR Premium / Fees / Other$8,500$8,750$9,000$9,250$9,500$9,750 NII$140 Total Revenue$8,640$8,890$9,140$9,390$9,640$9,8902.7% Claim Expense$4,700$4,750$4,825$4,900$5,000$5,150 Operating Expense$2,100$2,150$2,200$2,225$2,250$2,275 Other Expense / COGS$850$925$1,000$1,075$1,150$1,200 Total Expenses$7,650$7,825$8,025$8,200$8,400$8,6252.4% Net Income (BFIT)$990$1,065$1,115$1,190$1,240$1,265 Tax($356)($383)($401)($428)($446)($455) Net Income (AFIT)$634$682$714$762$794$8105.0% Cash Premium revenue grew faster than associated expenses contributing to cash flow. Profit $990 (2012) to $1065 ( projected) Assets Intangible: Network Growth 7.5% profit growth; premium growth 2.9%, expense increase = 2.3%, customer growth 6,731,000 (2011) to 7,208,000 (2012) for 7% growth People Customer centricity, physician engagement

Key Competitors (history, strengths, weaknesses, financial performance) compared to Cigna. Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 7 Competitor Analysis millions CignaUnitedAetnaCignaUnitedAetna Cash 2,978 8,406 2,579 4,690 9, Cash Flow 2,350 7,155 1,822 1,491 6,968 2,507 Total Revenues 29, ,618 36,595 21, ,862 33,779 Operating Profit 2,477 8,622 2,545 1,876 7,959 3,077 Operating Profit Margin8.51%7.79%6.95%8.58%7.81%9.11% Net Profit 1,623 5,526 1,658 1,260 5,142 1,985 Net Profit Margin5.57%5.00%4.53%5.76%5.05%5.88% Earnings Per Share Return on Equity16.61%17.72%15.93%15.76%18.17%19.61% Revenue Growth33.18%8.60%8.34%n/a Net Income Growth28.81%7.47%-16.47%n/a Earnings Per Share Growth22.22%11.63%-7.85%n/a

External Factors Influencing Regional Segment’s Performance Over Time (4 slides) 8 Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2012 Cigna Continued economic uncertainty and global economic headwinds Unsustainable health care costs Mass personalization and information transparency Global aging populations and increasing rates of chronic disease

Economic Uncertainty & Global Economic Headwinds Since the late 1990’s, health care spending has increased at a faster rate of growth than has gross domestic product (GDP), inflation, and population. Faced with high gasoline prices, rising food costs, a roller-coaster stock market and rising unemployment, most Americans (90 percent) say they’re worried about the economy. According to Cigna surveys, about one-third of Americans say yes, the economy has changed the way they take care of themselves. Of those, 55 percent report taking better care of their health by exercising, eating healthier or getting regular check-ups and screenings, while 41 percent say they are taking worse care.surveys The impact from members taking better care of their health over the long term could decrease medical costs and claims (Cigna’s largest expense) which could then positively impact Cigna’s profit (revenue –expense), we could view this as organic growth.

Unsustainable Health Care Costs Introduction of PPACA/Healthcare Legislation Introduction of Exchanges will impact Cigna as well as competitors as we begin to compete against the individual market. Cigna will be competing to gain individuals versus groups which will impact membership growth. Within the Regional segment the Government & Higher Education sub- segment in particular could be impacted by Exchanges. As states begin to build their exchanges, Government agencies/Municipalities in particular may be the biggest impacted as their employees compare against the state exchange options.

Aging Populations / Increasing Rates in Chronic Disease Pros –Huge potential customer base –Increase in premiums and fees –Acquisition of HealthSpring - Access to 1 million new customers –2012 – Revenue growth of 33.2% Cons o Increase in claims – Liability / Expense o Impact ongoing. Look for trends overtime 11 Mass Personalization / Information Transparency Competition –Best tools for customers to select options –Within the industry –Government Exchanges

Key Stakeholder View (Shareholders, clients, customers) Shareholders Equity per Share went from $28.00 in 2011 to $34.18 Shareholders Equity went from 7,994 in 2011 to 9,769 Shareholders (2012 results ) Confidential, unpublished property of Cigna. Do not duplicate or distribute. Use and distribution limited solely to authorized personnel. © 2013 Cigna 12 Clients and Customers According to Eric Galvin our Net Promoter Score increased 25% in a 12 month period. Results reveal that Cigna – in 9 Regional Segment blind broker focus groups - proved to be a Leader in achieving the #1 carrier ranking in 9 of 9 their U.S. breakthrough designated markets in the areas of: 1) health and wellness, and 2) sales force consultation, and #1 in 8 of 9 markets for product/plan design. This accomplishment was not achieved by any other carrier.” The recognition of Cigna as a leader in the health and wellness space, coupled with superiority in product/plan design (as well as recognition of a strong sales force at point of distribution) provides a gateway of opportunity to differentiate the Cigna brand among employers in the segment, especially when coupled with Customer Centricity, which is an area silent from competitors. Cigna’s expertise in the areas of health and wellness and product/plan design provides the foundation for Cigna to address two key challenges facing employers: Getting employees engaged (Zeldis Research, 2012) Demonstrate ROI from health and wellness initiatives and programs (Zeldis Research 2012) Customer growth is expected to rise from 6.3M to 7.2M for a 13.9% increase between 2012 and 2013.

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