Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-38769 | |
Entity Registrant Name | Cigna Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-4991898 | |
Entity Address, Address Line One | 900 Cottage Grove Road | |
Entity Address, City or Town | Bloomfield | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06002 | |
City Area Code | 860 | |
Local Phone Number | 226-6000 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 | |
Trading Symbol | CI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 317,273,452 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001739940 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | ||
Premiums | $ 10,356 | $ 10,214 |
Net investment income | 414 | 391 |
TOTAL REVENUES | 44,005 | 40,971 |
Benefits and expenses | ||
Pharmacy and other service costs | 29,813 | 27,235 |
Medical costs and other benefit expenses | 8,268 | 8,005 |
Selling, general and administrative expenses | 3,299 | 3,279 |
Amortization of acquired intangible assets | 458 | 495 |
TOTAL BENEFITS AND EXPENSES | 41,838 | 39,014 |
Income from operations | 2,167 | 1,957 |
Interest expense and other | (299) | (314) |
Debt extinguishment costs | 0 | (131) |
Net realized investment gains (losses) | (319) | 1 |
Income before income taxes | 1,549 | 1,513 |
TOTAL INCOME TAXES | 351 | 342 |
Net income | 1,198 | 1,171 |
Less: Net income attributable to noncontrolling interests | 15 | 10 |
SHAREHOLDERS' NET INCOME | $ 1,183 | $ 1,161 |
Shareholders' net income per share | ||
Basic (in dollars per share) | $ 3.71 | $ 3.33 |
Diluted (in dollars per share) | $ 3.68 | $ 3.30 |
Pharmacy revenues | ||
Revenues | ||
Revenues | $ 30,697 | $ 28,025 |
Fees and other revenues | ||
Revenues | ||
Revenues | $ 2,538 | $ 2,341 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,198 | $ 1,171 |
Other comprehensive income (loss), net of tax | ||
Net unrealized (depreciation) appreciation on securities and derivatives | (560) | (273) |
Net translation gains (losses) on foreign currencies | (63) | (119) |
Postretirement benefits liability adjustment | 13 | 18 |
Other comprehensive (loss), net of tax | (610) | (374) |
Total comprehensive income | 588 | 797 |
Comprehensive income (loss) attributable to noncontrolling interests | ||
Net income attributable to redeemable noncontrolling interests | 3 | 5 |
Net income attributable to other noncontrolling interests | 12 | 5 |
Other comprehensive (loss) attributable to redeemable noncontrolling interests | (2) | (4) |
Total comprehensive income attributable to noncontrolling interests | 13 | 6 |
SHAREHOLDERS' COMPREHENSIVE INCOME | $ 575 | $ 791 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | |
Assets | |||
Cash and cash equivalents | $ 4,424 | $ 5,081 | |
Investments | 731 | 920 | |
Accounts receivable, net | 16,003 | 15,071 | |
Inventories | 3,500 | 3,722 | |
Other current assets | 1,042 | 1,283 | |
Assets of businesses held for sale | 9,693 | 10,057 | |
Total current assets | 35,393 | 36,134 | |
Long-term investments | 17,693 | 18,438 | |
Reinsurance recoverables | 4,937 | 4,970 | |
Deferred policy acquisition costs | 719 | 677 | |
Property and equipment | 3,661 | 3,692 | |
Goodwill | 45,804 | 45,811 | |
Other intangible assets | 33,714 | 34,102 | |
Other assets | 2,541 | 2,728 | |
Separate account assets | 8,148 | 8,337 | |
TOTAL ASSETS | 152,610 | 154,889 | |
Liabilities | |||
Current insurance and contractholder liabilities | 5,673 | 5,318 | |
Pharmacy and other service costs payable | 15,235 | 15,309 | |
Accounts payable | 6,632 | 6,655 | |
Accrued expenses and other liabilities | 7,833 | 7,322 | |
Short-term debt | 2,173 | 2,545 | |
Liabilities of businesses held for sale | 6,116 | 6,423 | |
Total current liabilities | 43,662 | 43,572 | |
Non-current insurance and contractholder liabilities | 12,167 | 12,563 | |
Deferred tax liabilities, net | 8,110 | 8,346 | |
Other non-current liabilities | 3,346 | 3,762 | |
Long-term debt | 31,013 | 31,125 | |
Separate account liabilities | 8,148 | 8,337 | |
TOTAL LIABILITIES | 106,446 | 107,705 | |
Contingencies — Note 18 | |||
Redeemable noncontrolling interests | 55 | 54 | |
Shareholders' equity | |||
Common stock | [1] | 4 | 4 |
Additional paid-in capital | 29,736 | 29,574 | |
Accumulated other comprehensive loss | (1,492) | (884) | |
Retained earnings | 33,420 | 32,593 | |
Less: Treasury stock, at cost | (15,581) | (14,175) | |
TOTAL SHAREHOLDERS' EQUITY | 46,087 | 47,112 | |
Other noncontrolling interests | 22 | 18 | |
Total equity | 46,109 | 47,130 | |
Total liabilities and equity | $ 152,610 | $ 154,889 | |
[1] | Par value per share, $0.01; shares issued, 396 million as of March 31, 2022 and 394 million as of December 31, 2021; authorized shares, 600 million. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 396,000,000 | 394,000,000 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Total Equity - USD ($) $ in Millions | Total | Shareholders’ Equity | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) | Retained Earnings | Treasury Stock | Other Non- controlling Interests |
Balance at Dec. 31, 2020 | $ 50,328 | $ 50,321 | $ 4 | $ 28,975 | $ (861) | $ 28,575 | $ (6,372) | $ 7 |
Changes in Total Equity [Roll Forward] | ||||||||
Effect of issuing stock for employee benefit plans | 192 | 192 | 279 | (87) | ||||
Other comprehensive income (loss) | (370) | (370) | (370) | |||||
Net income | 1,166 | 1,161 | 1,161 | 5 | ||||
Common dividends declared | (347) | (347) | (347) | |||||
Repurchase of common stock | (2,808) | (2,808) | (2,808) | |||||
Other transactions impacting noncontrolling interests | (6) | (6) | ||||||
Balance at Mar. 31, 2021 | 48,155 | 48,149 | 4 | 29,254 | (1,231) | 29,389 | (9,267) | 6 |
Balance at Dec. 31, 2020 | 58 | |||||||
Change in Redeemable Noncontrolling Interests | ||||||||
Other comprehensive (loss) | (4) | |||||||
Net income | 5 | |||||||
Other transactions impacting noncontrolling interests | 0 | |||||||
Balance at Mar. 31, 2021 | 59 | |||||||
Balance at Dec. 31, 2021 | 47,130 | 47,112 | 4 | 29,574 | (884) | 32,593 | (14,175) | 18 |
Changes in Total Equity [Roll Forward] | ||||||||
Effect of issuing stock for employee benefit plans | 90 | 90 | 162 | (72) | ||||
Other comprehensive income (loss) | (608) | (608) | (608) | |||||
Net income | 1,195 | 1,183 | 1,183 | 12 | ||||
Common dividends declared | (356) | (356) | (356) | |||||
Repurchase of common stock | (1,334) | (1,334) | (1,334) | |||||
Other transactions impacting noncontrolling interests | (8) | 0 | 0 | (8) | ||||
Balance at Mar. 31, 2022 | 46,109 | $ 46,087 | $ 4 | $ 29,736 | $ (1,492) | $ 33,420 | $ (15,581) | $ 22 |
Balance at Dec. 31, 2021 | 54 | |||||||
Change in Redeemable Noncontrolling Interests | ||||||||
Other comprehensive (loss) | (2) | |||||||
Net income | 3 | |||||||
Other transactions impacting noncontrolling interests | 0 | |||||||
Balance at Mar. 31, 2022 | $ 55 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Total Equity (Parenthetical) - $ / shares | 3 Months Ended | ||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||||
Common dividends declared (in dollars per share) | $ 1.12 | $ 1 | $ 1 | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Cash Flows from Operating Activities | |||
Net income | $ 1,198 | $ 1,171 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 717 | 715 | |
Realized investment (gains) losses, net | 319 | (1) | |
Deferred income tax (benefit) | (138) | (35) | |
Debt extinguishment costs | 0 | 131 | |
Net changes in assets and liabilities, net of non-operating effects: | |||
Accounts receivable | (983) | (1,420) | |
Inventories | 222 | 247 | |
Deferred policy acquisition costs | (41) | (60) | |
Reinsurance recoverable and Other assets | 443 | 40 | |
Insurance liabilities | 396 | 443 | |
Pharmacy and other service costs payable | (74) | 415 | |
Accounts payable and Accrued expenses and other liabilities | 34 | (637) | |
Other, net | (63) | 84 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,030 | 1,093 | |
Proceeds from investments sold: | |||
Debt securities and equity securities | 757 | 378 | |
Investment maturities and repayments: | |||
Debt securities and equity securities | 456 | 328 | |
Commercial mortgage loans | 65 | 72 | |
Other sales, maturities and repayments (primarily short-term and other long-term investments) | 479 | 364 | |
Investments purchased or originated: | |||
Debt securities and equity securities | (1,246) | (980) | |
Commercial mortgage loans | (59) | 0 | |
Other (primarily short-term and other long-term investments) | (425) | (637) | |
Property and equipment purchases, net | (288) | (242) | |
Divestiture, net of cash sold | (57) | 0 | |
Other, net | (6) | 0 | |
NET CASH (USED IN) INVESTING ACTIVITIES | (324) | (717) | |
Cash Flows from Financing Activities | |||
Deposits and interest credited to contractholder deposit funds | 43 | 47 | |
Withdrawals and benefit payments from contractholder deposit funds | (49) | (35) | |
Net change in short-term debt | (463) | (1,030) | |
Payments for debt extinguishment | 0 | (126) | |
Repayment of long-term debt | 0 | (4,199) | |
Net proceeds on issuance of long-term debt | 0 | 4,262 | |
Repurchase of common stock | (1,368) | (2,794) | |
Issuance of common stock | 93 | 204 | |
Common stock dividend paid | (357) | (345) | |
Other, net | (70) | (35) | |
NET CASH (USED IN) FINANCING ACTIVITIES | (2,171) | (4,051) | |
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (23) | (26) | |
Net (decrease) in cash, cash equivalents and restricted cash | (488) | (3,701) | |
Cash, cash equivalents and restricted cash January 1, | [1] | 5,548 | 10,245 |
Cash, cash equivalents and restricted cash, March 31, | 5,060 | 6,544 | |
Cash and cash equivalents reclassified to Assets of businesses held for sale | (591) | 0 | |
Total cash, cash equivalents and restricted cash and cash equivalents | [2] | 4,469 | 6,544 |
Supplemental Disclosure of Cash Information: | |||
Income taxes paid, net of refunds | 43 | 122 | |
Interest paid | $ 308 | $ 331 | |
[1] | Includes $425 million reported in Assets of businesses held for sale as of January 1, 2022. | ||
[2] | Restricted cash and cash equivalents were reported in Other long-term investments as of March 31, 2022 and March 31, 2021. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Statement of Cash Flows [Abstract] | |||
Cash and cash equivalents reclassified to Assets of businesses held for sale | $ 591 | $ 425 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1 – Description of Business Cigna Corporation, together with its subsidiaries (either individually or collectively referred to as "Cigna," the "Company," "we," "our" or "us") is a global health services organization with a mission of helping those we serve improve their health, well-being and peace of mind by making health care affordable, predictable and simple. Our subsidiaries offer a differentiated set of pharmacy, medical, behavioral, dental and supplemental products and services. The majority of these products are offered through employers and other groups such as governmental and non-governmental organizations, unions and associations. Cigna also offers commercial health and dental insurance and Medicare products to individuals in the United States and selected international markets. In addition to these ongoing operations, Cigna also has certain run-off operations. Details of the Company's reporting segments and recent changes are provided below: We entered into a definitive agreement in October 2021 to sell our life, accident and supplemental benefits businesses in several countries to Chubb INA Holdings, Inc. ("Chubb"). As of March 31, 2022, we now expect to sell our life, accident and supplemental benefits businesses in six countries (Hong Kong, Indonesia, New Zealand, South Korea, Taiwan and Thailand) to Chubb for $5.72 billion in cash (the "Chubb Transaction"); we no longer expect to sell our interest in a joint venture in Turkey as part of the Chubb Transaction. See Note 5 for further information on the classification of these businesses as held for sale. In connection with the pending Chubb Transaction, we revised our business reporting structure. As such, we adjusted our segment reporting effective in the fourth quarter of 2021 and segment results for the three months ended March 31, 2021 have been restated to conform to the new segment presentation (see Note 19). A full description of our segments follows: Evernorth includes a broad range of coordinated and point solution health services and capabilities, as well as those from partners across the health care system, in pharmacy solutions, benefits management solutions, care delivery and care management solutions and intelligence solutions, which are provided to health plans, employers, government organizations and health care providers. Cigna Healthcare includes U.S. Commercial, U.S. Government and International Health operating segments that provide comprehensive medical and coordinated solutions to clients and customers. U.S. Commercial products and services include medical, pharmacy, behavioral health, dental, vision, health advocacy programs and other products and services for insured and self-insured customers. U.S. Government solutions include Medicare Advantage, Medicare Supplement and Medicare Part D plans for seniors and individual health insurance plans both on and off the public exchanges. International Health solutions include health care coverage in our international markets, as well as health care benefits for globally mobile individuals and employees of multinational organizations. Other Operations contains the remainder of our business operations, consisting of the following: • Ongoing business: • Corporate-Owned Life Insurance ("COLI") offers permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for the purpose of financing employer-paid future benefit obligations. • Our interest in a joint venture in Turkey. • Exiting businesses: • International Life, Accident and Supplemental Benefits Businesses in six countries to be sold pursuant to the Chubb Transaction. • Run-off businesses: • Reinsurance: predominantly comprised of guaranteed minimum death benefit ("GMDB") and guaranteed minimum income benefit ("GMIB") business effectively exited through reinsurance with Berkshire Hathaway Life Insurance Company of Nebraska ("Berkshire") in 2013. • Settlement Annuity and other businesses in run-off. • Individual Life Insurance and Annuity and Retirement Benefits businesses: deferred gains from the sales of these businesses. Corporate reflects amounts not allocated to operating segments, including net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment and other operations), certain litigation matters, expense associated with our frozen pension plans, charitable contributions, severance, certain overhead and enterprise-wide project costs and intersegment eliminations for products and services sold between segments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of Cigna Corporation and its consolidated subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Amounts recorded in the Consolidated Financial Statements necessarily reflect management's estimates and assumptions about medical costs, investment and receivable valuations, interest rates and other factors. Significant estimates are discussed throughout these Notes; however, actual results could differ from those estimates. The impact of a change in estimate is generally included in earnings in the period of adjustment. There were no new accounting standards adopted as of March 31, 2022 that had a material impact on our financial statements. There are no accounting pronouncements not yet adopted, with the exception of Accounting Standards Update 2018-12, Targeted Improvements to the Accounting for Long-Duration Insurance Contracts |
Accounts Receivable, Net
Accounts Receivable, Net | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Note 3 – Accounts Receivable, Net The following amounts were included within Accounts receivable, net: (In millions) March 31, 2022 December 31, 2021 Noninsurance customer receivables $ 7,200 $ 6,274 Pharmaceutical manufacturers receivables 5,805 5,463 Insurance customer receivables 2,647 2,932 Other receivables 399 456 Total 16,051 15,125 Accounts receivable, net classified as Assets of businesses held for sale (48) (54) Accounts receivable, net per Consolidated Balance Sheets $ 16,003 $ 15,071 |
Mergers, Acquisitions and Dives
Mergers, Acquisitions and Divestitures | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Mergers, Acquisitions and Divestitures | Note 4 – Mergers, Acquisitions and Divestitures A. Acquisition of MDLIVE On April 19, 2021, Cigna acquired 97% of MDLIVE, Inc. ("MDLIVE"), a 24/7 virtual care platform. Combined with Cigna's previously held equity investment, Cigna now owns 100% of MDLIVE. The Company's 2021 Form 10-K includes detailed disclosures of merger consideration, purchase price allocation and intangible assets identified in this transaction. In accordance with GAAP, the total consideration transferred has been allocated to the tangible and intangible net assets acquired based on management's estimates of their fair values and is now finalized as of March 31, 2022. For the three months ended March 31, 2022, there were immaterial changes to the purchase price allocation. |
Assets and Liabilities of Busin
Assets and Liabilities of Businesses Held for Sale | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities of Business Held for Sale | Note 5 – Assets and Liabilities of Businesses Held for Sale We entered into a definitive agreement in October 2021 to sell our life, accident and supplemental benefits businesses in several countries to Chubb. As of March 31, 2022, we now expect to sell our life, accident and supplemental benefits businesses in six countries (Hong Kong, Indonesia, New Zealand, South Korea, Taiwan and Thailand) to Chubb for $5.72 billion in cash. Subject to applicable regulatory approvals and customary closing conditions, we expect to complete the sale of these businesses in the second quarter of 2022. The Company has aggregated and classified the assets and liabilities of these businesses as held for sale in our Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021. The assets and liabilities of our interest in a joint venture in Turkey were classified as held for sale in our Consolidated Balance Sheet as of December 31, 2021; however, we no longer expect to sell this business to Chubb and the assets and liabilities are no longer classified as held for sale. The assets and liabilities of businesses held for sale were as follows: (In millions) March 31, 2022 December 31, 2021 Cash and cash equivalents $ 591 $ 406 Investments 4,771 5,109 Deferred policy acquisition costs 2,717 2,755 Separate account assets 718 878 Goodwill, other intangible assets and all other assets 896 909 Total assets of businesses held for sale 9,693 10,057 Insurance and contractholder liabilities 4,562 4,644 Accounts payable, accrued expenses and other liabilities 436 452 Deferred tax liabilities, net 400 449 Separate account liabilities 718 878 Total liabilities of businesses held for sale $ 6,116 $ 6,423 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6 – Earnings Per Share ("EPS")Basic and diluted earnings per share were computed as follows: Three Months Ended March 31, 2022 March 31, 2021 (Shares in thousands, dollars in millions, except per share amounts) Basic Effect of Diluted Basic Effect of Diluted Shareholders' net income $ 1,183 $ 1,183 $ 1,161 $ 1,161 Shares: Weighted average 318,487 318,487 348,248 348,248 Common stock equivalents 2,795 2,795 3,728 3,728 Total shares 318,487 2,795 321,282 348,248 3,728 351,976 EPS $ 3.71 $ (0.03) $ 3.68 $ 3.33 $ (0.03) $ 3.30 Three Months Ended March 31, (In millions) 2022 2021 Anti-dilutive options 2.8 1.5 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 – Debt The outstanding amounts of debt and finance leases were as follows: (In millions) March 31, 2022 December 31, 2021 Short-term debt Commercial paper $ 1,570 $ 2,027 $500 million, 3.05% Notes due 11/2022 496 495 $17 million, 8.3% Notes due 1/2023 17 — $63 million, 7.65% Notes due 3/2023 63 — Other, including finance leases 27 23 Total short-term debt $ 2,173 $ 2,545 Long-term debt $17 million, 8.3% Notes due 2023 $ — $ 17 $63 million, 7.65% Notes due 2023 — 63 $700 million, Floating Rate Notes due 2023 699 699 $1,000 million, 3% Notes due 2023 987 985 $1,187 million, 3.75% Notes due 2023 1,185 1,185 $500 million, 0.613% Notes due 2024 499 498 $1,000 million, 3.5% Notes due 2024 985 983 $900 million, 3.25% Notes due 2025 897 897 $2,200 million, 4.125% Notes due 2025 2,193 2,193 $1,500 million, 4.5% Notes due 2026 1,504 1,504 $800 million, 1.25% Notes due 2026 797 796 $1,500 million, 3.4% Notes due 2027 1,426 1,423 $259 million, 7.875% Debentures due 2027 259 259 $600 million, 3.05% Notes due 2027 596 596 $3,800 million, 4.375% Notes due 2028 3,783 3,782 $1,500 million, 2.4% Notes due 2030 1,491 1,490 $1,500 million, 2.375% Notes due 2031 (1) 1,448 1,500 $45 million, 8.3% Step Down Notes due 2033 45 45 $190 million, 6.15% Notes due 2036 190 190 $2,200 million, 4.8% Notes due 2038 2,192 2,192 $750 million, 3.2% Notes due 2040 743 743 $121 million, 5.875% Notes due 2041 119 119 $448 million, 6.125% Notes due 2041 488 490 $317 million, 5.375% Notes due 2042 315 315 $1,500 million, 4.8% Notes due 2046 1,465 1,465 $1,000 million, 3.875% Notes due 2047 989 988 $3,000 million, 4.9% Notes due 2048 2,968 2,967 $1,250 million, 3.4% Notes due 2050 1,236 1,236 $1,500 million, 3.4% Notes due 2051 1,477 1,477 Other, including finance leases 37 28 Total long-term debt $ 31,013 $ 31,125 (1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 11 for further information about the Company's interest rate risk management and these derivative instruments. Revolving Credit Agreements. Our revolving credit agreements provide us with the ability to borrow amounts for general corporate purposes, including for the purpose of providing liquidity support if necessary under our commercial paper program discussed below. As of March 31, 2022, Cigna had a $3.0 billion five-year revolving credit and letter of credit agreement maturing in April 2026; a $1.0 billion three-year revolving credit agreement maturing in April 2024; and a $1.0 billion 364-day revolving credit agreement maturing in April 2022. There were no outstanding balances under these revolving credit agreements as of March 31, 2022. In April 2022, Cigna entered into the following revolving credit agreements ("Credit Agreements"), which replaced the agreements discussed above: • a $3.0 billion five-year revolving credit and letter of credit agreement that will mature in April 2027 with an option to extend the maturity date for additional one-year periods, subject to consent of the banks. Cigna can borrow up to $3.0 billion under the credit agreement for general corporate purposes, with up to $500 million available for issuance of letters of credit. • a $1.0 billion three-year revolving credit agreement that will mature in April 2025 with an option to extend the maturity date for additional one-year periods, subject to consent of the banks. Cigna can borrow up to $1.0 billion under the credit agreement for general corporate purposes. • a $1.0 billion 364-day revolving credit agreement that will mature in April 2023. Cigna can borrow up to $1.0 billion under the credit agreement for general corporate purposes. This agreement includes the option to "term out" any revolving loans that are outstanding at maturity by converting them into a term loan maturing on the one-year anniversary of conversion. Each of the Credit Agreements include an option to increase commitments in an aggregate amount of up to $1.5 billion across all three facilities for a maximum total commitment of $6.5 billion. The Credit Agreements allow for borrowings at either a base rate or an adjusted term secured overnight funding rate ("SOFR") plus, in each case, an applicable margin based on Cigna's senior unsecured credit ratings. Each of the three facilities is diversified among 22 banks. Each facility also contains customary covenants and restrictions, including a financial covenant that the Company's leverage ratio, as defined in the Credit Agreements, may not exceed 60%, subject to certain exceptions upon the consummation of an acquisition. Commercial Paper. Under our commercial paper program we may issue short-term, unsecured commercial paper notes privately placed on a discounted basis through certain broker-dealers at any time not to exceed an aggregate amount of $5.0 billion. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds of issuances have been and are expected to be used for general corporate purposes. The commercial paper average interest rate was 0.60% at March 31, 2022. The Company was in compliance with its debt covenants as of March 31, 2022. |
Common and Preferred Stock
Common and Preferred Stock | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Common and Preferred Stock | Note 8 – Common and Preferred Stock Dividends In the first quarter of 2022, Cigna declared and paid a quarterly cash dividend of $1.12 per share of Cigna common stock. In 2021, Cigna initiated and declared quarterly cash dividends of $1.00 per share of Cigna common stock. The following table provides details of Cigna's dividend payments for the three months ended March 31: Record Date Payment Date Amount per Share Total Amount Paid (in millions) 2022 March 9, 2022 March 24, 2022 $1.12 $357 2021 March 10, 2021 March 25, 2021 $1.00 $345 On April 27, 2022, the Board of Directors declared the second quarter cash dividend of $1.12 per share of Cigna common stock to be paid on June 23, 2022 to shareholders of record on June 8, 2022. Cigna currently intends to pay regular quarterly dividends, with future declarations subject to approval by its Board of Directors and the Board's determination that the declaration of dividends remains in the best interests of Cigna and its shareholders. The decision of whether to pay future dividends and the amount of any such dividends will be based on the Company's financial position, results of operations, cash flows, capital requirements, the requirements of applicable law and any other factors the Board of Directors may deem relevant. |
Insurance and Contractholder Li
Insurance and Contractholder Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Insurance Loss Reserves [Abstract] | |
Insurance and Contractholder Liabilities | Note 9 – Insurance and Contractholder Liabilities A. Account Balances – Insurance and Contractholder Liabilities The Company's insurance and contractholder liabilities were comprised of the following: March 31, 2022 December 31, 2021 March 31, 2021 (In millions) Current Non-current Total Current Non-current Total Total Contractholder deposit funds $ 368 $ 6,641 $ 7,009 $ 352 $ 6,702 $ 7,054 $ 7,161 Future policy benefits 237 8,896 9,133 312 9,194 9,506 9,306 Unearned premiums 619 416 1,035 558 418 976 950 Unpaid claims and claim expenses Cigna Healthcare 4,459 32 4,491 4,159 102 4,261 4,027 Other Operations 503 231 734 548 180 728 723 Total 6,186 16,216 22,402 5,929 16,596 22,525 Insurance and contractholder liabilities classified as Liabilities of businesses held for sale (1) (513) (4,049) (4,562) (611) (4,033) (4,644) Total insurance and contractholder liabilities $ 5,673 $ 12,167 $ 17,840 $ 5,318 $ 12,563 $ 17,881 $ 22,167 (1) Amounts classified as Liabilities of businesses held for sale primarily include $3.7 billion of Future policy benefits, $0.4 billion of Unpaid claims and $0.4 billion of Unearned premiums as of March 31, 2022 and $3.8 billion of Future policy benefits, $0.4 billion of Unpaid claims and $0.4 billion of Unearned premiums as of December 31, 2021. Insurance and contractholder liabilities expected to be paid within one year are classified as current. Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment for the three months ended March 31 was as follows: Three Months Ended (In millions) March 31, 2022 March 31, 2021 Beginning balance $ 4,261 $ 3,695 Less: Reinsurance and other amounts recoverable 261 237 Beginning balance, net 4,000 3,458 Incurred costs related to: Current year 8,024 7,755 Prior years (276) (233) Total incurred 7,748 7,522 Paid costs related to: Current year 4,634 4,640 Prior years 2,822 2,555 Total paid 7,456 7,195 Ending balance, net 4,292 3,785 Add: Reinsurance and other amounts recoverable 199 242 Ending balance $ 4,491 $ 4,027 Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 10 for additional information on reinsurance. Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions for the three months ended March 31 were as follows: Three Months Ended (Dollars in millions) March 31, 2022 March 31, 2021 $ % (1) $ % (2) Actual completion factors $ 99 0.3 % $ 107 0.4 % Medical cost trend 177 0.6 126 0.4 Total favorable variance $ 276 0.9 % $ 233 0.8 % (1) Percentage of current year incurred costs as reported for the year ended December 31, 2021. (2) Percentage of current year incurred costs as reported for the year ended December 31, 2020. Favorable prior year development in both years reflects lower than expected utilization of medical services as compared to our assumptions. Liability balance details. The liability details for unpaid claims and claim expenses are as follows. The liability balance no longer includes the International Health businesses now reported in Cigna Healthcare following our change in segment reporting. The prior year roll forward has been updated to reflect the segment change. (In millions) March 31, 2022 March 31, 2021 Other Operations International businesses to be sold and our interest in a joint venture in Turkey $ 436 $ 442 Other Operations 298 281 Unpaid claims and claim expenses Other Operations $ 734 $ 723 Activity in the unpaid claims and claim expenses for international businesses held for sale and our interest in a joint venture in Turkey is presented in the following table. Liabilities associated with Other Operations are excluded because they pertain to obligations for long-duration insurance contracts or, if short-duration, the liabilities have been largely reinsured. Three Months Ended (In millions) March 31, 2022 (1) March 31, 2021 Beginning balance $ 447 $ 452 Less: Reinsurance 46 45 Beginning balance, net 401 407 Incurred claims related to: Current year 259 254 Prior years (7) — Total incurred 252 254 Paid claims related to: Current year 116 115 Prior years 135 134 Total paid 251 249 Foreign currency (6) (15) Ending balance, net 396 397 Add: Reinsurance 40 45 Ending balance $ 436 $ 442 (1) Includes unpaid claims amounts classified as Liabilities of businesses held for sale. Reinsurance in the table above reflects amounts due from reinsurers related to unpaid claims liabilities. See Note 10 for additional information on reinsurance. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Note 10 – Reinsurance The Company's insurance subsidiaries enter into agreements with other insurance companies to limit losses from large exposures and to permit recovery of a portion of incurred losses. Reinsurance is ceded primarily in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance does not relieve the originating insurer of liability. Therefore, reinsured liabilities must continue to be reported along with the related reinsurance recoverables. The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk. The majority of the Company's reinsurance recoverables resulted from acquisition and disposition transactions in which the underwriting company was not acquired. The Company bears the risk of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company. The Company reviews its reinsurance arrangements and establishes reserves against the recoverables. The Company's reinsurance recoverables as of March 31, 2022 are presented in the following table by range of external credit rating and collateral level: (In millions) Fair value of collateral contractually required to meet or exceed carrying value of recoverable Collateral provisions exist that may mitigate risk of credit loss (3) No collateral Total Ongoing Operations A- equivalent and higher current ratings (1) $ — $ — $ 176 $ 176 BBB- to BBB+ equivalent current credit ratings (1) — — 61 61 Not rated 116 — 43 159 Total recoverables related to ongoing operations (2) 116 — 280 396 Acquisition, disposition or run-off activities A- equivalent and higher current ratings (1) Lincoln National Life and Lincoln Life & Annuity of New York — 2,908 — 2,908 Berkshire Hathaway Life Insurance Company of Nebraska 268 376 — 644 Prudential Retirement Insurance and Annuity 149 — — 149 Prudential Insurance Company of America 404 — — 404 Life Insurance Company of North America — 437 — 437 Other 219 16 16 251 Not rated — 13 3 16 Total recoverables related to acquisition, disposition or run-off activities 1,040 3,750 19 4,809 Total $ 1,156 $ 3,750 $ 299 $ 5,205 Allowance for uncollectible reinsurance (30) Total reinsurance recoverables (2) $ 5,175 (1) Certified by a Nationally Recognized Statistical Rating Organization ("NRSRO"). (2) Includes $143 million of current reinsurance recoverables that are reported in Other current assets and $95 million of recoverables classified as Assets of businesses held for sale as of March 31, 2022. (3) Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level. Collateral levels are defined internally based on the fair value of the collateral relative to the carrying amount of the reinsurance recoverable, the frequency at which collateral is required to be replenished and the potential for volatility in the collateral's fair value. The Company entered into an agreement with Berkshire to effectively exit the GMDB and GMIB business via a reinsurance transaction in 2013. Berkshire reinsured 100% of the Company's future claim payments in this business, net of other reinsurance arrangements existing at that time. The reinsurance agreement is subject to an overall limit with approximately $3.2 billion remaining at March 31, 2022. GMDB is accounted for as assumed and ceded reinsurance and GMIB assets and liabilities are reported as derivatives at fair value as discussed below. GMIB assets are reported in Other current assets and Other assets and GMIB liabilities are reported in Accrued expenses and other liabilities and Other non-current liabilities. Assumptions used in fair value measurement for these assets and liabilities are discussed in Note 10 of the Company's 2021 Form 10-K. GMDB The GMDB exposure arises under annuities written by ceding companies that guarantee the benefit received at death. The Company's exposure arises when the guaranteed minimum death benefit exceeds the fair value of the related mutual fund investments at the time of a contractholder's death. The following table presents the account value, net amount at risk and the number of contractholders for guarantees assumed by the Company in the event of death. The net amount at risk is the amount that the Company would have to pay if all contractholders died as of the specified date. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded. (Dollars in millions, excludes impact of reinsurance ceded) March 31, 2022 December 31, 2021 Account value $ 9,057 $ 9,795 Net amount at risk $ 1,508 $ 1,392 Number of contractholders (estimated) 165,000 170,000 GMIB The Company reinsured contracts with issuers of GMIB products. The Company's exposure represents the excess of a contractually guaranteed amount over the level of variable annuity account values. Payment by the Company depends on the actual account value in the related underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments that can only occur within 30 days of a policy anniversary after the appropriate waiting period. The Company has purchased retrocessional coverage ("GMIB assets") for these contracts including retrocessional coverage from Berkshire. GMIB liabilities totaling $514 million as of March 31, 2022 and $572 million as of December 31, 2021 are classified as Level 3 because fair value inputs are largely unobservable. The GMIB liabilities reflect the Company's credit risk, while the reinsurance recoverable reflects the credit risk of the reinsurers. There were three reinsurers covering 100% of the GMIB exposures as of March 31, 2022 and December 31, 2021 as follows: (In millions) Line of Business Reinsurer March 31, 2022 December 31, 2021 Collateral and Other Terms at March 31, 2022 GMIB Berkshire $ 257 $ 283 100% were secured by assets in a trust. Sun Life Assurance Company of Canada 151 167 Liberty Re (Bermuda) Ltd. 138 151 100% were secured by assets in a trust. Total GMIB recoverables reported in Other current assets and Other assets $ 546 $ 601 All reinsurers are rated A- equivalent and higher by an NRSRO. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Investments | Note 11 – Investments Cigna's investment portfolio consists of a broad range of investments including debt securities, equity securities, commercial mortgage loans, policy loans, other long-term investments, short-term investments and derivative financial instruments. The sections below provide more detail regarding our investment balances and realized investment gains and losses. See Note 12 for information about the valuation of the Company's investment portfolio. Further information about our accounting policies for investment assets can be found in Note 11 of the Company's 2021 Form 10-K. The following table summarizes the Company's investments by category and current or long-term classification: March 31, 2022 December 31, 2021 (In millions) Current Long-term Total Current Long-term Total Debt securities $ 803 $ 14,611 $ 15,414 $ 796 $ 16,162 $ 16,958 Equity securities 50 821 871 — 603 603 Commercial mortgage loans 13 1,546 1,559 40 1,526 1,566 Policy loans — 1,316 1,316 — 1,338 1,338 Other long-term investments — 3,845 3,845 — 3,574 3,574 Short-term investments 190 — 190 428 — 428 Total 1,056 22,139 23,195 1,264 23,203 24,467 Investments classified as assets of businesses held for sale (1) (325) (4,446) (4,771) (344) (4,765) (5,109) Investments per Consolidated Balance Sheets $ 731 $ 17,693 $ 18,424 $ 920 $ 18,438 $ 19,358 (1) Investments related to the international life, accident and supplemental benefits businesses that are held for sale. These investments are primarily comprised of debt securities and other long-term investments, and to a lesser extent, equity securities and short-term investments. See Note 5 to the Consolidated Financial Statements for additional information. The amortized cost and fair value by contractual maturity periods for debt securities were as follows at March 31, 2022: (In millions) Amortized Fair Due in one year or less $ 796 $ 799 Due after one year through five years 4,978 4,948 Due after five years through ten years 4,967 4,859 Due after ten years 4,163 4,410 Mortgage and other asset-backed securities 413 398 Total $ 15,317 $ 15,414 Actual maturities of these securities could differ from their contractual maturities used in the table above because issuers may have the right to call or prepay obligations, with or without penalties. Gross unrealized appreciation (depreciation) on debt securities by type of issuer is shown below: (In millions) Amortized Allowance for Credit Loss Unrealized Unrealized Fair March 31, 2022 Federal government and agency $ 298 $ — $ 75 $ (4) $ 369 State and local government 158 — 4 (3) 159 Foreign government 2,467 — 142 (114) 2,495 Corporate 11,981 (23) 409 (374) 11,993 Mortgage and other asset-backed 413 — 4 (19) 398 Total $ 15,317 $ (23) $ 634 $ (514) $ 15,414 Investments supporting liabilities of the Company's run-off settlement annuity business (included in total above) (1) $ 2,297 $ (5) $ 412 $ (52) $ 2,652 December 31, 2021 Federal government and agency $ 287 $ — $ 101 $ (1) $ 387 State and local government 154 — 17 — 171 Foreign government 2,468 — 194 (46) 2,616 Corporate 12,361 (23) 1,008 (80) 13,266 Mortgage and other asset-backed 505 — 17 (4) 518 Total $ 15,775 $ (23) $ 1,337 $ (131) $ 16,958 Investments supporting liabilities of the Company's run-off settlement annuity business (included in total above) (1) $ 2,262 $ (5) $ 720 $ (10) $ 2,967 (1) Net unrealized appreciation for these investments is excluded from Accumulated other comprehensive loss. Review of declines in fair value. Management reviews impaired debt securities to determine whether a credit loss allowance is needed based on criteria that include: • severity of decline; • financial health and specific prospects of the issuer; and • changes in the regulatory, economic or general market environment of the issuer's industry or geographic region. The table below summarizes debt securities with a decline in fair value from amortized cost for which an allowance for credit losses has not been recorded, by investment grade and the length of time these securities have been in an unrealized loss position. These debt securities are primarily corporate securities with a decline in fair value that reflects an increase in market yields since purchase. Our allowance for credit losses on debt securities was not material as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 (Dollars in millions) Fair Amortized Unrealized Number Fair Amortized Unrealized Number One year or less Investment grade $ 5,398 $ 5,730 $ (332) 1,761 $ 2,785 $ 2,861 $ (76) 909 Below investment grade 957 1,006 (49) 1,406 561 578 (17) 781 More than one year Investment grade 816 930 (114) 348 382 412 (30) 143 Below investment grade 226 245 (19) 137 162 170 (8) 53 Total $ 7,397 $ 7,911 $ (514) 3,652 $ 3,890 $ 4,021 $ (131) 1,886 Equity Securities The following table provides the values of the Company's equity security investments as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 (In millions) Cost Carrying Value Cost Carrying Value Equity securities with readily determinable fair values $ 840 $ 464 $ 257 $ 207 Equity securities with no readily determinable fair value 280 407 270 396 Total $ 1,120 $ 871 $ 527 $ 603 Approximately 65% of our investments in equity securities are in the health care sector, consistent with our strategy to invest in targeted startup and growth-stage companies in the health care industry. The following table summarizes the credit risk profile of the Company's commercial mortgage loan portfolio as of March 31, 2022 and December 31, 2021: (Dollars in millions) March 31, 2022 December 31, 2021 Loan-to-Value Ratio Carrying Value Average Debt Service Coverage Ratio Average Loan-to-Value Ratio Carrying Value Average Debt Service Coverage Ratio Average Loan-to-Value Ratio Below 60% $ 555 2.21 $ 560 2.18 60% to 79% 882 1.89 883 1.89 80% to 100% 129 1.47 129 1.47 Allowance for credit losses (7) (6) Total $ 1,559 1.97 61 % $ 1,566 1.96 61 % All commercial mortgage loans in the Company's portfolio are current as of March 31, 2022 and December 31, 2021. Other Long-Term Investments Other long-term investments include investments in unconsolidated entities, including certain limited partnerships and limited liability companies holding real estate, securities or loans. These investments are carried at cost plus the Company's ownership percentage of reporting income or loss, based on the financial statements of the underlying investments that are generally reported at fair value. Income or loss from these investments is reported on a one quarter lag due to the timing of when financial information is received from the general partner or manager of the investments. Other long-term investments also include investment real estate carried at depreciated cost less any impairment write-downs to fair value when cash flows indicate that the carrying value may not be recoverable. Additionally, statutory and other restricted deposits and foreign currency swaps carried at fair value are reported in the table below as Other. The following table provides the carrying value information for these investments: Carrying value as of (In millions) March 31, 2022 December 31, 2021 Real estate investments $ 1,212 $ 1,152 Securities partnerships 2,463 2,272 Other 170 150 Total $ 3,845 $ 3,574 The gross fair values of our derivative financial instruments are presented in Note 12. As of March 31, 2022 and December 31, 2021, the effects of derivative financial instruments used in these individual hedging strategies were not material to the Consolidated Financial Statements, including gains or losses reclassified from Accumulated other comprehensive loss into Shareholders' net income, amounts excluded from the assessment of hedge effectiveness and fair values of assets posted or held as collateral supporting the fair values of these derivative financial instruments. The following table summarizes the types and notional quantity of derivative instruments held by the Company: Notional Value as of (In millions) March 31, 2022 December 31, 2021 Purpose Type of Instrument Fair value hedge: To hedge the foreign exchange-related changes in fair values of certain foreign-denominated bonds. The notional value of these derivatives matches the amortized cost of the hedged bonds. A majority of these instruments are denominated in Euros, with the remaining instruments denominated in British Pounds Sterling and Australian Dollars. Foreign currency swap contracts $ 1,110 $ 1,081 Fair value hedge: To convert a portion of the interest rate exposure on the Company's long-term debt from fixed to variable rates. This more closely aligns the Company's interest expense with the interest income received on its cash equivalent and short-term investment balances. The variable rates are benchmarked to SOFR. Interest rate swap contracts $ 750 $ 750 Net investment hedge: To reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in currencies other than the U.S. Dollar. The notional value of hedging instruments matches the hedged amount of subsidiary net assets. Foreign currency swap contracts are denominated in Euros, while foreign currency forward contracts are primarily denominated in Korean Won, with the remaining instruments denominated in New Zealand Dollars and Taiwan Dollars. Foreign currency swap contracts $ 526 $ 526 Foreign currency forward contracts $ 1,360 $ 1,380 Economic hedge: To hedge the foreign exchange-related changes in fair value of U.S. dollar-denominated investment assets to reflect the local currency for the Company's foreign subsidiary in South Korea. The notional value of hedging instruments generally aligns with the fair value of the hedged investments. Foreign currency forward contracts $ 749 $ 720 The following realized gains and losses on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business (consistent with accounting for a premium deficiency), as well as realized gains and losses attributed to the Company's separate accounts because those gains and losses generally accrue directly to separate account policyholders: Three Months Ended March 31, (In millions) 2022 2021 Net realized investment gains (losses), excluding credit loss expense and asset write-downs $ (319) $ 10 Credit loss (expense) recoveries — (9) Net realized investment gains (losses), before income taxes $ (319) $ 1 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12 – Fair Value Measurements The Company carries certain financial instruments at fair value in the financial statements including debt securities, certain equity securities, short-term investments and derivatives. Other financial instruments are measured at fair value only under certain conditions, such as when impaired or when there are observable price changes for equity securities with no readily determinable fair value. Fair value is defined as the price at which an asset could be exchanged in an orderly transaction between market participants at the balance sheet date. A liability's fair value is defined as the amount that would be paid to transfer the liability to a market participant, not the amount that would be paid to settle the liability with the creditor. The Company's financial assets and liabilities carried at fair value have been classified based upon a hierarchy defined by GAAP. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and The following table provides information as of March 31, 2022 and December 31, 2021 about the Company's financial assets and liabilities carried at fair value. Separate account assets are also recorded at fair value on the Company's Consolidated Balance Sheets and are reported separately in the Separate Accounts section below as gains and losses related to these assets generally accrue directly to policyholders. (In millions) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total As of March 31, 2022 As of December 31, 2021 As of March 31, 2022 As of December 31, 2021 As of March 31, 2022 As of December 31, 2021 As of March 31, 2022 As of December 31, 2021 Financial assets at fair value Debt securities Federal government and agency $ 149 $ 147 $ 220 $ 240 $ — $ — $ 369 $ 387 State and local government — — 159 171 — — 159 171 Foreign government — — 2,490 2,611 5 5 2,495 2,616 Corporate — — 11,468 12,606 525 660 11,993 13,266 Mortgage and other asset-backed — — 273 418 125 100 398 518 Total debt securities 149 147 14,610 16,046 655 765 15,414 16,958 Equity securities (1) 12 16 421 160 31 31 464 207 Short-term investments — — 190 428 — — 190 428 Derivative assets — — 159 143 — — 159 143 Financial liabilities at fair value Derivative liabilities $ — $ — $ 29 $ 33 $ — $ — $ 29 $ 33 (1) Excludes certain equity securities that have no readily determinable fair value. Level 3 Financial Assets and Financial Liabilities Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement. Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. Quantitative Information about Unobservable Inputs The significant unobservable input used to value our corporate and government debt securities and mortgage and other asset-backed securities is an adjustment for liquidity. This adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security. The following table summarizes the fair value and significant unobservable inputs that were developed directly by the Company and used in pricing these debt securities as of March 31, 2022 and December 31, 2021. The range and weighted average basis point ("bps") amounts for liquidity reflect the Company's best estimates of the unobservable adjustments a market participant would make to calculate these fair values. Fair Value as of Unobservable Adjustment Range (Weighted Average by Quantity) as of (Fair value in millions ) March 31, 2022 December 31, 2021 Unobservable input March 31, 2022 March 31, 2022 December 31, 2021 Debt securities Corporate and government debt securities $ 529 $ 664 Liquidity 60 - 1200 (370) bps 60 - 1060 (410) bps Mortgage and other asset-backed securities 125 100 Liquidity 60 - 380 (130) bps 60 - 390 (100) bps Other debt securities 1 1 Total Level 3 debt securities $ 655 $ 765 A significant increase in liquidity spread adjustments would result in a lower fair value measurement, while a decrease would result in a higher fair value measurement. Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value The following table summarizes the changes in financial assets and financial liabilities classified in Level 3 for the three months ended March 31, 2022 and 2021. Gains and losses reported in the table may include net changes in fair value that are attributable to both observable and unobservable inputs. For the Three Months Ended (In millions) 2022 2021 Debt and Equity Securities Beginning balance $ 796 $ 854 Total gains (losses) included in shareholders' net income 12 (10) Gains (losses) included in other comprehensive income (15) (16) Gains (losses) required to adjust future policy benefits for settlement annuities (1) (12) (8) Purchases, sales and settlements Purchases 49 29 Settlements (81) (16) Total purchases, sales and settlements (32) 13 Transfers into/(out of) Level 3 Transfers into Level 3 101 86 Transfers out of Level 3 (164) (16) Total transfers into/(out of) Level 3 (63) 70 Ending balance $ 686 $ 903 Total gains (losses) included in Shareholders' net income attributable to instruments held at the reporting date $ — $ (11) Change in unrealized gains or losses included in Other comprehensive (loss), net of tax for assets held at the end of the reporting period $ (13) $ (16) (1) Amounts do not accrue to shareholders. Total gains and losses included in Shareholders' net income in the tables above are reflected in the Consolidated Statements of Income as Net realized investment gains (losses) and Net investment income. Gains and losses included in Other comprehensive (loss), net of tax in the tables above are reflected in Net unrealized (depreciation) appreciation on securities and derivatives in the Consolidated Statements of Comprehensive Income. Separate Accounts The investment income and fair value gains and losses of separate account assets generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company's Consolidated Statements of Income and Cash Flows. Fair values of Separate account assets at March 31, 2022 and December 31, 2021 were as follows: (In millions) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Guaranteed separate accounts (See Note 18) $ 239 $ 227 $ 271 $ 276 $ — $ — $ 510 $ 503 Non-guaranteed separate accounts (1) 460 1,130 6,676 6,406 311 334 7,447 7,870 Subtotal $ 699 $ 1,357 $ 6,947 $ 6,682 $ 311 $ 334 7,957 8,373 Non-guaranteed separate accounts priced at net asset value ("NAV") as a practical expedient (1) 909 842 Total 8,866 9,215 Separate account assets of businesses classified as held for sale (2) (718) (878) Separate account assets per Consolidated Balance Sheets $ 8,148 $ 8,337 (1) Non-guaranteed separate accounts include $4.4 billion as of March 31, 2022 and $4.5 billion as of December 31, 2021 in assets supporting the Company's pension plans, including $0.3 billion classified in Level 3 as of March 31, 2022 and December 31, 2021. (2) Investments related to the international life, accident and supplemental benefits businesses that are held for sale. See Note 5 to the Consolidated Financial Statements for additional information. . Separate account assets classified in Level 3 primarily support Cigna's pension plans and include certain newly-issued, privately-placed, complex or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans. Activity, including transfers into and out of Level 3, was not material for the three months ended March 31, 2022 or 2021. Separate account investments in securities partnerships, real estate and hedge funds are generally valued based on the separate account's ownership share of the equity of the investee (NAV as a practical expedient), including changes in the fair values of its underlying investments. Substantially all of these assets support the Cigna pension plans. The following table provides additional information on these investments: Fair Value as of Unfunded Commitment as of March 31, 2022 Redemption Frequency Redemption Notice (In millions) March 31, 2022 December 31, 2021 Securities partnerships $ 557 $ 513 $ 262 Not applicable Not applicable Real estate funds 348 325 — Quarterly 30 - 90 days Hedge funds 4 4 — Up to annually, varying by fund 30 - 90 days Total $ 909 $ 842 $ 262 As of March 31, 2022, the Company does not have plans to sell any of these assets at less than fair value. These investments are structured to satisfy longer-term investment objectives. Securities partnerships are contractually non-redeemable and the underlying investment assets are expected to be liquidated by the fund managers within ten years after inception. Some financial assets and liabilities are not carried at fair value, such as commercial mortgage loans that are carried at unpaid principal, investment real estate that is carried at depreciated cost and equity securities with no readily determinable fair value when there are no observable market transactions. However, these financial assets and liabilities may be measured using fair value under certain conditions, such as when investments become impaired and are written down to their fair value, or when there are observable price changes from orderly market transactions of equity securities that otherwise had no readily determinable fair value. For the three months ended March 31, 2022 and 2021, no impairments were recognized requiring these assets to be measured at fair value. Realized investment gains and losses from these observable price changes for the three months ended March 31, 2022 and March 31, 2021 were not material. The following table includes the Company's financial instruments not recorded at fair value, however fair value disclosure is required at March 31, 2022 and December 31, 2021. In addition to universal life products and finance leases, financial instruments that are carried in the Company's Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table: Classification in Fair Value Hierarchy March 31, 2022 December 31, 2021 (In millions) Fair Value Carrying Value Fair Value Carrying Value Commercial mortgage loans Level 3 $ 1,519 $ 1,559 $ 1,598 $ 1,566 Long-term debt, including current maturities, excluding finance leases Level 2 $ 32,646 $ 31,552 $ 35,621 $ 31,593 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2022 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 13 – Variable Interest EntitiesWe perform ongoing qualitative analyses of our involvement with variable interest entities to determine if consolidation is required. The Company determined that it was not a primary beneficiary in any material variable interest entity as of March 31, 2022 or December 31, 2021. The Company’s involvement with variable interest entities for which it is not the primary beneficiary has not changed materially from December 31, 2021. For details of our accounting policy for variable interest entities and the composition of variable interest entities with which the Company is involved, refer to Note 13 in the Company's 2021 Form 10-K. The Company has not provided, and does not intend to provide, financial support to any of these variable interest entities in excess of its maximum exposure. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 14 – Accumulated Other Comprehensive Income (Loss) ("AOCI") AOCI includes net unrealized appreciation (depreciation) on securities and derivatives (excluding appreciation on investments supporting future policy benefit liabilities of the run-off settlement annuity business) (see Note 11), foreign currency translation and the net postretirement benefits liability adjustment. AOCI includes the Company's share from unconsolidated entities reported on the equity method. Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to Shareholders' net income in the same period that the related pre-tax AOCI reclassifications are recognized. Changes in the components of AOCI were as follows: Three Months Ended March 31, (In millions) 2022 2021 Securities and Derivatives Beginning balance $ 685 $ 900 (Depreciation) appreciation on securities and derivatives (705) (342) Tax benefit 154 65 Net (depreciation) appreciation on securities and derivatives (551) (277) Reclassification adjustment for (gains) losses included in Shareholders' net income (Net realized investment (gains) losses) (11) 5 Reclassification adjustment for tax expense (benefit) included in Shareholders' net income 2 (1) Net (gains) losses reclassified from AOCI to Shareholders' net income (9) 4 Other comprehensive (loss), net of tax (560) (273) Ending balance $ 125 $ 627 Translation of foreign currencies Beginning balance $ (233) $ (15) Translation of foreign currencies (60) (114) Tax (expense) (3) (5) Other comprehensive (loss), net of tax (63) (119) Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests (2) (4) Shareholders' other comprehensive (loss), net of tax (61) (115) Ending balance $ (294) $ (130) Postretirement benefits liability Beginning balance $ (1,336) $ (1,746) Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (Interest expense and other) 16 20 Reclassification adjustment for settlement (Interest expense and other) — 3 Reclassification adjustment for tax (benefit) included in Shareholders' net income (3) (5) Net adjustments reclassified from AOCI to Shareholders' net income 13 18 Other comprehensive income, net of tax 13 18 Ending balance $ (1,323) $ (1,728) |
Organizational Efficiency Plan
Organizational Efficiency Plan | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Organizational Efficiency Plan | Note 15 – Organizational Efficiency Plan During the fourth quarter of 2021, the Company approved a strategic plan to further leverage its ongoing growth to drive operational efficiency through enhancements to organizational structure and increased use of automation and shared services. As a result, during the fourth quarter of 2021, we recognized a charge in Selling, general and administrative expenses of $168 million, pre-tax ($119 million, after-tax) that included $59 million of one-time expenses related to abandonment of leased assets and impairment of property and equipment as well as $109 million of accrued expenses primarily for severance costs related to headcount reductions. We expect most of the severance to be paid by 2023. The following table summarizes a roll forward of the accrued liability recorded in Accrued expenses and other liabilities: (In millions) Balance, December 31, 2021 $ 103 2022 payments (14) Balance, March, 31, 2022 $ 89 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 16 – Leases Operating and finance lease right-of-use ("ROU") assets and lease liabilities were as follows: (In millions) March 31, 2022 December 31, 2021 Operating leases: (1) Operating lease ROU assets in Other assets $ 456 $ 478 Accrued expenses and other liabilities $ 154 $ 159 Other non-current liabilities 407 436 Total operating lease liabilities $ 561 $ 595 Finance leases: Property and equipment, gross $ 118 $ 101 Accumulated depreciation (56) (51) Property and equipment, net $ 62 $ 50 Short-term debt $ 27 $ 23 Long-term debt 37 28 Total finance lease liabilities $ 64 $ 51 (1) Operating leases include $28 million as of March 31, 2022 and $27 million as of December 31, 2021 classified as Assets of businesses held for sale and $25 million as of March 31, 2022, and $28 million as of December 31, 2021 classified as Liabilities of businesses held for sale. |
Leases | Note 16 – Leases Operating and finance lease right-of-use ("ROU") assets and lease liabilities were as follows: (In millions) March 31, 2022 December 31, 2021 Operating leases: (1) Operating lease ROU assets in Other assets $ 456 $ 478 Accrued expenses and other liabilities $ 154 $ 159 Other non-current liabilities 407 436 Total operating lease liabilities $ 561 $ 595 Finance leases: Property and equipment, gross $ 118 $ 101 Accumulated depreciation (56) (51) Property and equipment, net $ 62 $ 50 Short-term debt $ 27 $ 23 Long-term debt 37 28 Total finance lease liabilities $ 64 $ 51 (1) Operating leases include $28 million as of March 31, 2022 and $27 million as of December 31, 2021 classified as Assets of businesses held for sale and $25 million as of March 31, 2022, and $28 million as of December 31, 2021 classified as Liabilities of businesses held for sale. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17 – Income TaxesIncome Tax ExpenseThe 22.7% effective tax rate for the three months ended March 31, 2022 was higher than the 22.6% rate for the same period in 2021. This increase is primarily attributable to an increase in state and foreign income taxes, partially offset by the favorable impact of the remeasurement of deferred income taxes. |
Contingencies and Other Matters
Contingencies and Other Matters | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Other Matters | Note 18 – Contingencies and Other Matters The Company, through its subsidiaries, is contingently liable for various guarantees provided in the ordinary course of business. A. Financial Guarantees: Retiree and Life Insurance Benefits The Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree benefits. For the majority of these benefits, the sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations. If employers fail to do so, the Company or an affiliate of the buyer of the retirement benefits business has the right to redirect the management of the related assets to provide for benefit payments. As of March 31, 2022, employers maintained assets that generally exceeded the benefit obligations under these arrangements of approximately $430 million. An additional liability is established if management believes that the Company will be required to make payments under the guarantees; there were no additional liabilities required for these guarantees, net of reinsurance, as of March 31, 2022. Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy. The Company does not expect that these financial guarantees will have a material effect on the Company's consolidated results of operations, liquidity or financial condition. B. Certain Other Guarantees The Company had indemnification obligations as of March 31, 2022 in connection with acquisition and disposition transactions. These indemnification obligations are triggered by the breach of representations or covenants provided by the Company, such as representations for the presentation of financial statements, filing of tax returns, compliance with law or identification of outstanding litigation. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential amount due is subject to contractual limitations based on a percentage of the transaction purchase price, while in other cases limitations are not specified or applicable. The Company does not believe that it is possible to determine the maximum potential amount due under these obligations because not all amounts due under these indemnification obligations are subject to limitation. There were no liabilities for these indemnification obligations as of March 31, 2022. C. Guaranty Fund Assessments The Company operates in a regulatory environment that may require its participation in assessments under state insurance guaranty association laws. The Company's exposure to assessments for certain obligations of insolvent insurance companies to policyholders and claimants is based on its share of business written in the relevant jurisdictions. There were no material charges or credits resulting from existing or new guaranty fund assessments for the three months ended March 31, 2022. D. Legal and Regulatory Matters The Company is routinely involved in numerous claims, lawsuits, regulatory inquiries and audits, government investigations, including under the federal False Claims Act and state false claims acts initiated by a government investigating body or by a qui tam relator's filing of a complaint under court seal and other legal matters arising, for the most part, in the ordinary course of managing a global health services business. Additionally, the Company has received and is cooperating with subpoenas or similar processes from various governmental agencies requesting information, all arising in the normal course of its business. Disputed tax matters arising from audits by the Internal Revenue Service or other state and foreign jurisdictions, including those resulting in litigation, are accounted for under GAAP guidance for uncertain tax positions. Pending litigation and legal or regulatory matters that the Company has identified with a reasonably possible material loss and certain other material litigation matters are described below. For those matters that the Company has identified with a reasonably possible material loss, the Company provides disclosure in the aggregate of accruals and range of loss, or a statement that such information cannot be estimated. The Company's accruals for the matters discussed below under "Litigation Matters" and "Regulatory Matters" are not material. Due to numerous uncertain factors presented in these cases, it is not possible to estimate an aggregate range of loss (if any) for these matters at this time. In light of the uncertainties involved in these matters, there is no assurance that their ultimate resolution will not exceed the amounts currently accrued by the Company. An adverse outcome in one or more of these matters could be material to the Company's results of operations, financial condition or liquidity for any particular period. The outcomes of lawsuits are inherently unpredictable and we may be unsuccessful in these ongoing litigation matters or any future claims or litigation. Litigation Matters Express Scripts Litigation with Anthem . In March 2016, Anthem filed a lawsuit in the United States District Court for the Southern District of New York alleging various breach of contract claims against Express Scripts relating to the parties' rights and obligations under the periodic pricing review section of the pharmacy benefit management agreement between the parties including allegations that Express Scripts failed to negotiate new pricing concessions in good faith, as well as various alleged service issues. Anthem also requested that the court enter declaratory judgment that Express Scripts is required to provide Anthem competitive benchmark pricing, that Anthem can terminate the agreement and that Express Scripts is required to provide Anthem with post-termination services at competitive benchmark pricing for one year following any termination by Anthem. Anthem claims it is entitled to $13 billion in additional pricing concessions over the remaining term of the agreement, as well as $1.8 billion for one year following any contract termination by Anthem and $150 million damages for service issues ("Anthem's Allegations"). On April 19, 2016, in response to Anthem's complaint, Express Scripts filed its answer denying Anthem's Allegations in their entirety and asserting affirmative defenses and counterclaims against Anthem. The court subsequently granted Anthem's motion to dismiss two of six counts of Express Scripts' amended counterclaims. Express Scripts filed its Motion for Summary Judgment on August 27, 2021. Anthem completed filing of its Response to Express Scripts' Motion for Summary Judgment on October 16, 2021. Express Scripts filed its Reply in Support of its Motion for Summary Judgment on November 19, 2021. On March 31, 2022, the court granted summary judgment in favor of Express Scripts on all of Anthem's pricing claims for damages totaling $14.8 billion and on most of Anthem's claims relating to service issues. Anthem's only remaining service claim relates to the review or processing of prior authorizations. Medicare Advantage. A qui tam action that was filed by a private individual on behalf of the government in the United States District Court for the Southern District of New York in 2017 was unsealed on August 6, 2020. The action asserts claims related to risk adjustment practices arising from certain health exams conducted as part of the Company's Medicare Advantage business. In September 2021, the qui tam action was transferred to the United States District Court for the Middle District of Tennessee. On January 11, 2022, the U.S. Department of Justice ("DOJ") (U.S. Attorney's Offices for the Southern District of New York and the Middle District of Tennessee) filed a motion to partially intervene, which is pending before the court. The Company has opposed the DOJ's motion to intervene and the government filed its reply brief on February 1, 2022. The motion has been fully briefed and is under the court's review. Regulatory Matters Civil Investigative Demand . The DOJ is conducting industry-wide investigations of Medicare Advantage organizations' risk adjustment practices. For certain Medicare Advantage organizations, including Cigna, those investigations have resulted in litigation (see "Litigation Matters—Medicare Advantage" above). The Company is currently responding to information requests (civil investigative demands) from the DOJ (U.S. Attorney's Office for the Eastern District of Pennsylvania). The Company is cooperating with the DOJ and has responded and continues to respond to its requests. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 19 – Segment Information See Note 1 for a description of our segments, including the segment change effective in the fourth quarter of 2021. Prior year segment information has been adjusted to reflect the segment change and a description of our basis of reporting segment operating results is outlined below. Intersegment revenues primarily reflect pharmacy related transactions between the Evernorth and Cigna Healthcare segments. The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management believes these metrics best reflect the underlying results of business operations and permit analysis of trends in underlying revenue, expenses and profitability. We define pre-tax adjusted income from operations as income before income taxes excluding pre-tax income/loss attributable to noncontrolling interests, net realized investment results, amortization of acquired intangible assets, and special items. Cigna's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are also excluded. Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size. Adjusted income (loss) from operations is measured on an after-tax basis for consolidated results and on a pre-tax basis for segment results. The Company defines adjusted revenues as total revenues excluding the following adjustments: special items and Cigna's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size. We exclude these items from this measure because management believes they are not indicative of past or future underlying performance of the business. The Company does not report total assets by segment because this is not a metric used to allocate resources or evaluate segment performance. The following tables present the special items recorded by the Company for the three months ended March 31, 2022 and 2021: Three Months Ended (In millions) March 31, 2022 March 31, 2021 Description of Special Item Charges (Benefits) and Financial Statement Line Item(s) After-tax Before-tax After-tax Before-tax Integration and transaction-related costs $ 37 $ 52 $ 22 $ 29 Debt extinguishment costs — — 101 131 (Benefits) charges associated with litigation matters — — (21) (27) Total impact from special items $ 37 $ 52 $ 102 $ 133 (In millions) Evernorth Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended March 31, 2022 Revenues from external customers $ 32,289 $ 10,461 $ 841 $ — $ 43,591 Inter-segment revenues 1,287 562 — (1,849) Net investment income 10 266 138 — 414 Total revenues 33,586 11,289 979 (1,849) 44,005 Net realized investment results from certain equity method investments — 103 — — 103 Adjusted revenues $ 33,586 $ 11,392 $ 979 $ (1,849) $ 44,108 Income (loss) before taxes $ 870 $ 859 $ 215 $ (395) $ 1,549 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (11) (1) (5) — (17) Net realized investment (gains) losses (1) — 406 16 — 422 Amortization of acquired intangible assets 443 15 — — 458 Special items Integration and transaction-related costs — — — 52 52 Pre-tax adjusted income (loss) from operations $ 1,302 $ 1,279 $ 226 $ (343) $ 2,464 (In millions) Evernorth Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended March 31, 2021 Revenues from external customers $ 29,419 $ 10,285 $ 876 $ — $ 40,580 Inter-segment revenues 1,198 509 — (1,707) Net investment income 3 259 129 — 391 Total revenues 30,620 11,053 1,005 (1,707) 40,971 Net realized investment results from certain equity method investments — 14 — — 14 Adjusted revenues $ 30,620 $ 11,067 $ 1,005 $ (1,707) $ 40,985 Income (loss) before taxes $ 749 $ 1,045 $ 206 $ (487) $ 1,513 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (5) (1) (6) — (12) Net realized investment (gains) losses (1) 2 (16) 27 — 13 Amortization of acquired intangible assets 477 14 4 — 495 Special items Integration and transaction-related costs — — — 29 29 Debt extinguishment costs — — — 131 131 (Benefits) charges associated with litigation matters — — — (27) (27) Pre-tax adjusted income (loss) from operations $ 1,223 $ 1,042 $ 231 $ (354) $ 2,142 (1) Includes the Company's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Revenue from external customers includes Pharmacy revenues, Premiums and Fees and other revenues. The following table presents these revenues by product, premium and service type for the three months ended March 31: Three Months Ended March 31, (In millions) 2022 2021 Products (Pharmacy revenues) (ASC 606) Network revenues $ 15,531 $ 15,138 Home delivery and specialty revenues 14,699 12,774 Other 1,712 1,388 Intercompany eliminations (1,245) (1,275) Total pharmacy revenues 30,697 28,025 Insurance premiums (ASC 944) Cigna Healthcare U.S. Commercial Insured 3,720 3,523 Stop loss 1,325 1,194 Other 360 310 U.S. Government Medicare Advantage 2,078 2,092 Medicare Part D 401 450 Other 940 1,138 International Health 702 641 Total Cigna Healthcare 9,526 9,348 International businesses held for sale 763 809 Other 69 58 Intercompany eliminations (2) (1) Total premiums 10,356 10,214 Services (Fees) (ASC 606) Evernorth 1,624 1,314 Cigna Healthcare 1,496 1,434 Other Operations 5 5 Other revenues 15 19 Intercompany eliminations (602) (431) Total fees and other revenues 2,538 2,341 Total revenues from external customers $ 43,591 $ 40,580 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of Cigna Corporation and its consolidated subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). Amounts recorded in the Consolidated Financial Statements necessarily reflect management's estimates and assumptions about medical costs, investment and receivable valuations, interest rates and other factors. Significant estimates are discussed throughout these Notes; however, actual results could differ from those estimates. The impact of a change in estimate is generally included in earnings in the period of adjustment. |
Recent Accounting Pronouncements, Recently Adopted Accounting Guidance and Accounting Guidance Not Yet Adopted | Recent Accounting Pronouncements There were no new accounting standards adopted as of March 31, 2022 that had a material impact on our financial statements. There are no accounting pronouncements not yet adopted, with the exception of Accounting Standards Update 2018-12, Targeted Improvements to the Accounting for Long-Duration Insurance Contracts |
Unpaid Claims and Claims Expenses | This liability reflects estimates of the ultimate cost of claims that have been incurred but not reported, including expected development on reported claims, those that have been reported but not yet paid (reported claims in process) and other medical care expenses and services payable that are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities. This liability includes amounts from the International Health businesses now reported in Cigna Healthcare following our change in segment reporting in 2021. The prior year roll forward has been updated to reflect this segment change. |
Reinsurance | Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 10 for additional information on reinsuranceThe Company's insurance subsidiaries enter into agreements with other insurance companies to limit losses from large exposures and to permit recovery of a portion of incurred losses. Reinsurance is ceded primarily in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance does not relieve the originating insurer of liability. Therefore, reinsured liabilities must continue to be reported along with the related reinsurance recoverables. The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk.The Company reviews its reinsurance arrangements and establishes reserves against the recoverables.Collateral levels are defined internally based on the fair value of the collateral relative to the carrying amount of the reinsurance recoverable, the frequency at which collateral is required to be replenished and the potential for volatility in the collateral's fair value.GMDB is accounted for as assumed and ceded reinsurance and GMIB assets and liabilities are reported as derivatives at fair value as discussed below. GMIB assets are reported in Other current assets and Other assets and GMIB liabilities are reported in Accrued expenses and other liabilities and Other non-current liabilities. Assumptions used in fair value measurement for these assets and liabilities are discussed in Note 10 of the Company's 2021 Form 10-K. |
Investments | Cigna's investment portfolio consists of a broad range of investments including debt securities, equity securities, commercial mortgage loans, policy loans, other long-term investments, short-term investments and derivative financial instruments.Further information about our accounting policies for investment assets can be found in Note 11 of the Company's 2021 Form 10-K. Review of declines in fair value. Management reviews impaired debt securities to determine whether a credit loss allowance is needed based on criteria that include: • severity of decline; • financial health and specific prospects of the issuer; and • changes in the regulatory, economic or general market environment of the issuer's industry or geographic region. |
Derivative Financial Instruments | The Company uses derivative financial instruments to manage the characteristics of investment assets (such as duration, yield, currency and liquidity) to meet the varying demands of the related insurance and contractholder liabilities. The Company also uses derivative financial instruments to hedge the risk of changes in the net assets of certain of its foreign subsidiaries due to changes in foreign currency exchange rates and to hedge the interest rate risk of certain long-term debt. The Company has written and purchased GMIB reinsurance contracts in its run-off reinsurance business that are accounted for as freestanding derivatives as discussed in Note 10. Derivatives in the Company's separate accounts are excluded from the following discussion because associated gains and losses generally accrue directly to separate account policyholders. Fair value hedge: To hedge the foreign exchange-related changes in fair values of certain foreign-denominated bonds. The notional value of these derivatives matches the amortized cost of the hedged bonds. A majority of these instruments are denominated in Euros, with the remaining instruments denominated in British Pounds Sterling and Australian Dollars. Fair value hedge: To convert a portion of the interest rate exposure on the Company's long-term debt from fixed to variable rates. This more closely aligns the Company's interest expense with the interest income received on its cash equivalent and short-term investment balances. The variable rates are benchmarked to SOFR. Net investment hedge: To reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in currencies other than the U.S. Dollar. The notional value of hedging instruments matches the hedged amount of subsidiary net assets. Foreign currency swap contracts are denominated in Euros, while foreign currency forward contracts are primarily denominated in Korean Won, with the remaining instruments denominated in New Zealand Dollars and Taiwan Dollars. Economic hedge: To hedge the foreign exchange-related changes in fair value of U.S. dollar-denominated investment assets to reflect the local currency for the Company's foreign subsidiary in South Korea. The notional value of hedging instruments generally aligns with the fair value of the hedged investments. |
Fair Value Measurements | The Company carries certain financial instruments at fair value in the financial statements including debt securities, certain equity securities, short-term investments and derivatives. Other financial instruments are measured at fair value only under certain conditions, such as when impaired or when there are observable price changes for equity securities with no readily determinable fair value. Fair value is defined as the price at which an asset could be exchanged in an orderly transaction between market participants at the balance sheet date. A liability's fair value is defined as the amount that would be paid to transfer the liability to a market participant, not the amount that would be paid to settle the liability with the creditor. The Company's financial assets and liabilities carried at fair value have been classified based upon a hierarchy defined by GAAP. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and Level 3 Financial Assets and Financial Liabilities Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement. Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. Total gains and losses included in Shareholders' net income in the tables above are reflected in the Consolidated Statements of Income as Net realized investment gains (losses) and Net investment income. Gains and losses included in Other comprehensive (loss), net of tax in the tables above are reflected in Net unrealized (depreciation) appreciation on securities and derivatives in the Consolidated Statements of Comprehensive Income. |
Variable Interest Entities | For details of our accounting policy for variable interest entities and the composition of variable interest entities with which the Company is involved, refer to Note 13 in the Company's 2021 Form 10-K. |
Separate Accounts | Separate Accounts The investment income and fair value gains and losses of separate account assets generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company's Consolidated Statements of Income and Cash Flows. |
AOCI | AOCI includes net unrealized appreciation (depreciation) on securities and derivatives (excluding appreciation on investments supporting future policy benefit liabilities of the run-off settlement annuity business) (see Note 11), foreign currency translation and the net postretirement benefits liability adjustment. AOCI includes the Company's share from unconsolidated entities reported on the equity method. Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to Shareholders' net income in the same period that the related pre-tax AOCI reclassifications are recognized. |
Guarantees | Financial Guarantees: Retiree and Life Insurance BenefitsThe Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree benefits. For the majority of these benefits, the sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations. If employers fail to do so, the Company or an affiliate of the buyer of the retirement benefits business has the right to redirect the management of the related assets to provide for benefit payments.An additional liability is established if management believes that the Company will be required to make payments under the guarantees;Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy.Certain Other GuaranteesThe Company had indemnification obligations as of March 31, 2022 in connection with acquisition and disposition transactions. These indemnification obligations are triggered by the breach of representations or covenants provided by the Company, such as representations for the presentation of financial statements, filing of tax returns, compliance with law or identification of outstanding litigation. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential amount due is subject to contractual limitations based on a percentage of the transaction purchase price, while in other cases limitations are not specified or applicable. The Company does not believe that it is possible to determine the maximum potential amount due under these obligations because not all amounts due under these indemnification obligations are subject to limitation.Guaranty Fund AssessmentsThe Company operates in a regulatory environment that may require its participation in assessments under state insurance guaranty association laws. The Company's exposure to assessments for certain obligations of insolvent insurance companies to policyholders and claimants is based on its share of business written in the relevant jurisdictions. |
Commitment and Contingencies | The Company is routinely involved in numerous claims, lawsuits, regulatory inquiries and audits, government investigations, including under the federal False Claims Act and state false claims acts initiated by a government investigating body or by a qui tam relator's filing of a complaint under court seal and other legal matters arising, for the most part, in the ordinary course of managing a global health services business. Additionally, the Company has received and is cooperating with subpoenas or similar processes from various governmental agencies requesting information, all arising in the normal course of its business. Disputed tax matters arising from audits by the Internal Revenue Service or other state and foreign jurisdictions, including those resulting in litigation, are accounted for under GAAP guidance for uncertain tax positions. Pending litigation and legal or regulatory matters that the Company has identified with a reasonably possible material loss and certain other material litigation matters are described below. For those matters that the Company has identified with a reasonably possible material loss, the Company provides disclosure in the aggregate of accruals and range of loss, or a statement that such information cannot be estimated. The Company's accruals for the matters discussed below under "Litigation Matters" and "Regulatory Matters" are not material. Due to numerous uncertain factors presented in these cases, it is not possible to estimate an aggregate range of loss (if any) for these matters at this time. In light of the uncertainties involved in these matters, there is no assurance that their ultimate resolution will not exceed the amounts currently accrued by the Company. An adverse outcome in one or more of these matters could be material to the Company's results of operations, financial condition or liquidity for any particular period. The outcomes of lawsuits are inherently unpredictable and we may be unsuccessful in these ongoing litigation matters or any future claims or litigation. |
Segment Information | Intersegment revenues primarily reflect pharmacy related transactions between the Evernorth and Cigna Healthcare segments.The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management believes these metrics best reflect the underlying results of business operations and permit analysis of trends in underlying revenue, expenses and profitability. We define pre-tax adjusted income from operations as income before income taxes excluding pre-tax income/loss attributable to noncontrolling interests, net realized investment results, amortization of acquired intangible assets, and special items. Cigna's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are also excluded. Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size. Adjusted income (loss) from operations is measured on an after-tax basis for consolidated results and on a pre-tax basis for segment results. The Company defines adjusted revenues as total revenues excluding the following adjustments: special items and Cigna's share of certain realized investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting. Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size. We exclude these items from this measure because management believes they are not indicative of past or future underlying performance of the business. |
Revenues and Costs | Evernorth may also provide certain financial and performance guarantees, including a minimum level of discounts a client may receive, generic utilization rates and various service levels. Clients may be entitled to receive compensation if we fail to meet the guarantees. Actual performance is compared to the contractual guarantee for each measure throughout the period and the Company defers revenue for any estimated payouts within Accrued expenses and other liabilities (current). These estimates are adjusted and paid following the end of the annual guarantee period. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Accounts Receivable, Net | The following amounts were included within Accounts receivable, net: (In millions) March 31, 2022 December 31, 2021 Noninsurance customer receivables $ 7,200 $ 6,274 Pharmaceutical manufacturers receivables 5,805 5,463 Insurance customer receivables 2,647 2,932 Other receivables 399 456 Total 16,051 15,125 Accounts receivable, net classified as Assets of businesses held for sale (48) (54) Accounts receivable, net per Consolidated Balance Sheets $ 16,003 $ 15,071 |
Assets and Liabilities of Bus_2
Assets and Liabilities of Businesses Held for Sale (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and Liabilities of Business Held for Sale | The assets and liabilities of businesses held for sale were as follows: (In millions) March 31, 2022 December 31, 2021 Cash and cash equivalents $ 591 $ 406 Investments 4,771 5,109 Deferred policy acquisition costs 2,717 2,755 Separate account assets 718 878 Goodwill, other intangible assets and all other assets 896 909 Total assets of businesses held for sale 9,693 10,057 Insurance and contractholder liabilities 4,562 4,644 Accounts payable, accrued expenses and other liabilities 436 452 Deferred tax liabilities, net 400 449 Separate account liabilities 718 878 Total liabilities of businesses held for sale $ 6,116 $ 6,423 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were computed as follows: Three Months Ended March 31, 2022 March 31, 2021 (Shares in thousands, dollars in millions, except per share amounts) Basic Effect of Diluted Basic Effect of Diluted Shareholders' net income $ 1,183 $ 1,183 $ 1,161 $ 1,161 Shares: Weighted average 318,487 318,487 348,248 348,248 Common stock equivalents 2,795 2,795 3,728 3,728 Total shares 318,487 2,795 321,282 348,248 3,728 351,976 EPS $ 3.71 $ (0.03) $ 3.68 $ 3.33 $ (0.03) $ 3.30 |
Outstanding Employee Stock Options Not Included in the Computation of Diluted Earnings Per Share | The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive: Three Months Ended March 31, (In millions) 2022 2021 Anti-dilutive options 2.8 1.5 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Outstanding Amounts of Debt and Finance Leases | The outstanding amounts of debt and finance leases were as follows: (In millions) March 31, 2022 December 31, 2021 Short-term debt Commercial paper $ 1,570 $ 2,027 $500 million, 3.05% Notes due 11/2022 496 495 $17 million, 8.3% Notes due 1/2023 17 — $63 million, 7.65% Notes due 3/2023 63 — Other, including finance leases 27 23 Total short-term debt $ 2,173 $ 2,545 Long-term debt $17 million, 8.3% Notes due 2023 $ — $ 17 $63 million, 7.65% Notes due 2023 — 63 $700 million, Floating Rate Notes due 2023 699 699 $1,000 million, 3% Notes due 2023 987 985 $1,187 million, 3.75% Notes due 2023 1,185 1,185 $500 million, 0.613% Notes due 2024 499 498 $1,000 million, 3.5% Notes due 2024 985 983 $900 million, 3.25% Notes due 2025 897 897 $2,200 million, 4.125% Notes due 2025 2,193 2,193 $1,500 million, 4.5% Notes due 2026 1,504 1,504 $800 million, 1.25% Notes due 2026 797 796 $1,500 million, 3.4% Notes due 2027 1,426 1,423 $259 million, 7.875% Debentures due 2027 259 259 $600 million, 3.05% Notes due 2027 596 596 $3,800 million, 4.375% Notes due 2028 3,783 3,782 $1,500 million, 2.4% Notes due 2030 1,491 1,490 $1,500 million, 2.375% Notes due 2031 (1) 1,448 1,500 $45 million, 8.3% Step Down Notes due 2033 45 45 $190 million, 6.15% Notes due 2036 190 190 $2,200 million, 4.8% Notes due 2038 2,192 2,192 $750 million, 3.2% Notes due 2040 743 743 $121 million, 5.875% Notes due 2041 119 119 $448 million, 6.125% Notes due 2041 488 490 $317 million, 5.375% Notes due 2042 315 315 $1,500 million, 4.8% Notes due 2046 1,465 1,465 $1,000 million, 3.875% Notes due 2047 989 988 $3,000 million, 4.9% Notes due 2048 2,968 2,967 $1,250 million, 3.4% Notes due 2050 1,236 1,236 $1,500 million, 3.4% Notes due 2051 1,477 1,477 Other, including finance leases 37 28 Total long-term debt $ 31,013 $ 31,125 (1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 11 for further information about the Company's interest rate risk management and these derivative instruments. |
Common and Preferred Stock (Tab
Common and Preferred Stock (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Dividend Payments | The following table provides details of Cigna's dividend payments for the three months ended March 31: Record Date Payment Date Amount per Share Total Amount Paid (in millions) 2022 March 9, 2022 March 24, 2022 $1.12 $357 2021 March 10, 2021 March 25, 2021 $1.00 $345 |
Insurance and Contractholder _2
Insurance and Contractholder Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Insurance Loss Reserves [Abstract] | |
Summary of Insurance and Contractholder Liabilities, Activity in the Unpaid Claims Liability and Liability Details for Unpaid Claims and Claim Expenses | The Company's insurance and contractholder liabilities were comprised of the following: March 31, 2022 December 31, 2021 March 31, 2021 (In millions) Current Non-current Total Current Non-current Total Total Contractholder deposit funds $ 368 $ 6,641 $ 7,009 $ 352 $ 6,702 $ 7,054 $ 7,161 Future policy benefits 237 8,896 9,133 312 9,194 9,506 9,306 Unearned premiums 619 416 1,035 558 418 976 950 Unpaid claims and claim expenses Cigna Healthcare 4,459 32 4,491 4,159 102 4,261 4,027 Other Operations 503 231 734 548 180 728 723 Total 6,186 16,216 22,402 5,929 16,596 22,525 Insurance and contractholder liabilities classified as Liabilities of businesses held for sale (1) (513) (4,049) (4,562) (611) (4,033) (4,644) Total insurance and contractholder liabilities $ 5,673 $ 12,167 $ 17,840 $ 5,318 $ 12,563 $ 17,881 $ 22,167 (1) Amounts classified as Liabilities of businesses held for sale primarily include $3.7 billion of Future policy benefits, $0.4 billion of Unpaid claims and $0.4 billion of Unearned premiums as of March 31, 2022 and $3.8 billion of Future policy benefits, $0.4 billion of Unpaid claims and $0.4 billion of Unearned premiums as of December 31, 2021. Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment for the three months ended March 31 was as follows: Three Months Ended (In millions) March 31, 2022 March 31, 2021 Beginning balance $ 4,261 $ 3,695 Less: Reinsurance and other amounts recoverable 261 237 Beginning balance, net 4,000 3,458 Incurred costs related to: Current year 8,024 7,755 Prior years (276) (233) Total incurred 7,748 7,522 Paid costs related to: Current year 4,634 4,640 Prior years 2,822 2,555 Total paid 7,456 7,195 Ending balance, net 4,292 3,785 Add: Reinsurance and other amounts recoverable 199 242 Ending balance $ 4,491 $ 4,027 Liability balance details. The liability details for unpaid claims and claim expenses are as follows. The liability balance no longer includes the International Health businesses now reported in Cigna Healthcare following our change in segment reporting. The prior year roll forward has been updated to reflect the segment change. (In millions) March 31, 2022 March 31, 2021 Other Operations International businesses to be sold and our interest in a joint venture in Turkey $ 436 $ 442 Other Operations 298 281 Unpaid claims and claim expenses Other Operations $ 734 $ 723 Activity in the unpaid claims and claim expenses for international businesses held for sale and our interest in a joint venture in Turkey is presented in the following table. Liabilities associated with Other Operations are excluded because they pertain to obligations for long-duration insurance contracts or, if short-duration, the liabilities have been largely reinsured. Three Months Ended (In millions) March 31, 2022 (1) March 31, 2021 Beginning balance $ 447 $ 452 Less: Reinsurance 46 45 Beginning balance, net 401 407 Incurred claims related to: Current year 259 254 Prior years (7) — Total incurred 252 254 Paid claims related to: Current year 116 115 Prior years 135 134 Total paid 251 249 Foreign currency (6) (15) Ending balance, net 396 397 Add: Reinsurance 40 45 Ending balance $ 436 $ 442 |
Variances in Incurred Costs Related to Prior Years' Unpaid Claims and Claims Expenses | Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions for the three months ended March 31 were as follows: Three Months Ended (Dollars in millions) March 31, 2022 March 31, 2021 $ % (1) $ % (2) Actual completion factors $ 99 0.3 % $ 107 0.4 % Medical cost trend 177 0.6 126 0.4 Total favorable variance $ 276 0.9 % $ 233 0.8 % (1) Percentage of current year incurred costs as reported for the year ended December 31, 2021. (2) Percentage of current year incurred costs as reported for the year ended December 31, 2020. |
Reinsurance (Tables)
Reinsurance (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverables by Range of External Credit Rating and Collateral Level | The Company's reinsurance recoverables as of March 31, 2022 are presented in the following table by range of external credit rating and collateral level: (In millions) Fair value of collateral contractually required to meet or exceed carrying value of recoverable Collateral provisions exist that may mitigate risk of credit loss (3) No collateral Total Ongoing Operations A- equivalent and higher current ratings (1) $ — $ — $ 176 $ 176 BBB- to BBB+ equivalent current credit ratings (1) — — 61 61 Not rated 116 — 43 159 Total recoverables related to ongoing operations (2) 116 — 280 396 Acquisition, disposition or run-off activities A- equivalent and higher current ratings (1) Lincoln National Life and Lincoln Life & Annuity of New York — 2,908 — 2,908 Berkshire Hathaway Life Insurance Company of Nebraska 268 376 — 644 Prudential Retirement Insurance and Annuity 149 — — 149 Prudential Insurance Company of America 404 — — 404 Life Insurance Company of North America — 437 — 437 Other 219 16 16 251 Not rated — 13 3 16 Total recoverables related to acquisition, disposition or run-off activities 1,040 3,750 19 4,809 Total $ 1,156 $ 3,750 $ 299 $ 5,205 Allowance for uncollectible reinsurance (30) Total reinsurance recoverables (2) $ 5,175 (1) Certified by a Nationally Recognized Statistical Rating Organization ("NRSRO"). (2) Includes $143 million of current reinsurance recoverables that are reported in Other current assets and $95 million of recoverables classified as Assets of businesses held for sale as of March 31, 2022. (3) Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level. |
Account Value, Net Amount at Risk and the Number of Contractholders for Guarantees Assumed in the Event of Death | The following table presents the account value, net amount at risk and the number of contractholders for guarantees assumed by the Company in the event of death. The net amount at risk is the amount that the Company would have to pay if all contractholders died as of the specified date. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded. (Dollars in millions, excludes impact of reinsurance ceded) March 31, 2022 December 31, 2021 Account value $ 9,057 $ 9,795 Net amount at risk $ 1,508 $ 1,392 Number of contractholders (estimated) 165,000 170,000 |
Schedule of Derivative Assets at Fair Value | GMIB liabilities totaling $514 million as of March 31, 2022 and $572 million as of December 31, 2021 are classified as Level 3 because fair value inputs are largely unobservable. The GMIB liabilities reflect the Company's credit risk, while the reinsurance recoverable reflects the credit risk of the reinsurers. There were three reinsurers covering 100% of the GMIB exposures as of March 31, 2022 and December 31, 2021 as follows: (In millions) Line of Business Reinsurer March 31, 2022 December 31, 2021 Collateral and Other Terms at March 31, 2022 GMIB Berkshire $ 257 $ 283 100% were secured by assets in a trust. Sun Life Assurance Company of Canada 151 167 Liberty Re (Bermuda) Ltd. 138 151 100% were secured by assets in a trust. Total GMIB recoverables reported in Other current assets and Other assets $ 546 $ 601 All reinsurers are rated A- equivalent and higher by an NRSRO. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments [Abstract] | |
Investments by category and current or long-term classification | The following table summarizes the Company's investments by category and current or long-term classification: March 31, 2022 December 31, 2021 (In millions) Current Long-term Total Current Long-term Total Debt securities $ 803 $ 14,611 $ 15,414 $ 796 $ 16,162 $ 16,958 Equity securities 50 821 871 — 603 603 Commercial mortgage loans 13 1,546 1,559 40 1,526 1,566 Policy loans — 1,316 1,316 — 1,338 1,338 Other long-term investments — 3,845 3,845 — 3,574 3,574 Short-term investments 190 — 190 428 — 428 Total 1,056 22,139 23,195 1,264 23,203 24,467 Investments classified as assets of businesses held for sale (1) (325) (4,446) (4,771) (344) (4,765) (5,109) Investments per Consolidated Balance Sheets $ 731 $ 17,693 $ 18,424 $ 920 $ 18,438 $ 19,358 |
Debt Securities by Contractual Maturity | The amortized cost and fair value by contractual maturity periods for debt securities were as follows at March 31, 2022: (In millions) Amortized Fair Due in one year or less $ 796 $ 799 Due after one year through five years 4,978 4,948 Due after five years through ten years 4,967 4,859 Due after ten years 4,163 4,410 Mortgage and other asset-backed securities 413 398 Total $ 15,317 $ 15,414 |
Gross Unrealized Appreciation (Depreciation) on Debt Securities | Gross unrealized appreciation (depreciation) on debt securities by type of issuer is shown below: (In millions) Amortized Allowance for Credit Loss Unrealized Unrealized Fair March 31, 2022 Federal government and agency $ 298 $ — $ 75 $ (4) $ 369 State and local government 158 — 4 (3) 159 Foreign government 2,467 — 142 (114) 2,495 Corporate 11,981 (23) 409 (374) 11,993 Mortgage and other asset-backed 413 — 4 (19) 398 Total $ 15,317 $ (23) $ 634 $ (514) $ 15,414 Investments supporting liabilities of the Company's run-off settlement annuity business (included in total above) (1) $ 2,297 $ (5) $ 412 $ (52) $ 2,652 December 31, 2021 Federal government and agency $ 287 $ — $ 101 $ (1) $ 387 State and local government 154 — 17 — 171 Foreign government 2,468 — 194 (46) 2,616 Corporate 12,361 (23) 1,008 (80) 13,266 Mortgage and other asset-backed 505 — 17 (4) 518 Total $ 15,775 $ (23) $ 1,337 $ (131) $ 16,958 Investments supporting liabilities of the Company's run-off settlement annuity business (included in total above) (1) $ 2,262 $ (5) $ 720 $ (10) $ 2,967 (1) Net unrealized appreciation for these investments is excluded from Accumulated other comprehensive loss. |
Summary of Debt Securities with a Decline in Fair Value | The table below summarizes debt securities with a decline in fair value from amortized cost for which an allowance for credit losses has not been recorded, by investment grade and the length of time these securities have been in an unrealized loss position. These debt securities are primarily corporate securities with a decline in fair value that reflects an increase in market yields since purchase. Our allowance for credit losses on debt securities was not material as of March 31, 2022 and December 31, 2021. March 31, 2022 December 31, 2021 (Dollars in millions) Fair Amortized Unrealized Number Fair Amortized Unrealized Number One year or less Investment grade $ 5,398 $ 5,730 $ (332) 1,761 $ 2,785 $ 2,861 $ (76) 909 Below investment grade 957 1,006 (49) 1,406 561 578 (17) 781 More than one year Investment grade 816 930 (114) 348 382 412 (30) 143 Below investment grade 226 245 (19) 137 162 170 (8) 53 Total $ 7,397 $ 7,911 $ (514) 3,652 $ 3,890 $ 4,021 $ (131) 1,886 |
Equity Security Investments | The following table provides the values of the Company's equity security investments as of March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 (In millions) Cost Carrying Value Cost Carrying Value Equity securities with readily determinable fair values $ 840 $ 464 $ 257 $ 207 Equity securities with no readily determinable fair value 280 407 270 396 Total $ 1,120 $ 871 $ 527 $ 603 |
Summary of the Credit Risk Profile of the Commercial Mortgage Loan Portfolio | The following table summarizes the credit risk profile of the Company's commercial mortgage loan portfolio as of March 31, 2022 and December 31, 2021: (Dollars in millions) March 31, 2022 December 31, 2021 Loan-to-Value Ratio Carrying Value Average Debt Service Coverage Ratio Average Loan-to-Value Ratio Carrying Value Average Debt Service Coverage Ratio Average Loan-to-Value Ratio Below 60% $ 555 2.21 $ 560 2.18 60% to 79% 882 1.89 883 1.89 80% to 100% 129 1.47 129 1.47 Allowance for credit losses (7) (6) Total $ 1,559 1.97 61 % $ 1,566 1.96 61 % |
Carrying Value Information for Other Long-Term Investments | The following table provides the carrying value information for these investments: Carrying value as of (In millions) March 31, 2022 December 31, 2021 Real estate investments $ 1,212 $ 1,152 Securities partnerships 2,463 2,272 Other 170 150 Total $ 3,845 $ 3,574 |
Summary of Derivative Instruments Held | As of March 31, 2022 and December 31, 2021, the effects of derivative financial instruments used in these individual hedging strategies were not material to the Consolidated Financial Statements, including gains or losses reclassified from Accumulated other comprehensive loss into Shareholders' net income, amounts excluded from the assessment of hedge effectiveness and fair values of assets posted or held as collateral supporting the fair values of these derivative financial instruments. The following table summarizes the types and notional quantity of derivative instruments held by the Company: Notional Value as of (In millions) March 31, 2022 December 31, 2021 Purpose Type of Instrument Fair value hedge: To hedge the foreign exchange-related changes in fair values of certain foreign-denominated bonds. The notional value of these derivatives matches the amortized cost of the hedged bonds. A majority of these instruments are denominated in Euros, with the remaining instruments denominated in British Pounds Sterling and Australian Dollars. Foreign currency swap contracts $ 1,110 $ 1,081 Fair value hedge: To convert a portion of the interest rate exposure on the Company's long-term debt from fixed to variable rates. This more closely aligns the Company's interest expense with the interest income received on its cash equivalent and short-term investment balances. The variable rates are benchmarked to SOFR. Interest rate swap contracts $ 750 $ 750 Net investment hedge: To reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in currencies other than the U.S. Dollar. The notional value of hedging instruments matches the hedged amount of subsidiary net assets. Foreign currency swap contracts are denominated in Euros, while foreign currency forward contracts are primarily denominated in Korean Won, with the remaining instruments denominated in New Zealand Dollars and Taiwan Dollars. Foreign currency swap contracts $ 526 $ 526 Foreign currency forward contracts $ 1,360 $ 1,380 Economic hedge: To hedge the foreign exchange-related changes in fair value of U.S. dollar-denominated investment assets to reflect the local currency for the Company's foreign subsidiary in South Korea. The notional value of hedging instruments generally aligns with the fair value of the hedged investments. Foreign currency forward contracts $ 749 $ 720 |
Realized Gains and Losses on Investments | The following realized gains and losses on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business (consistent with accounting for a premium deficiency), as well as realized gains and losses attributed to the Company's separate accounts because those gains and losses generally accrue directly to separate account policyholders: Three Months Ended March 31, (In millions) 2022 2021 Net realized investment gains (losses), excluding credit loss expense and asset write-downs $ (319) $ 10 Credit loss (expense) recoveries — (9) Net realized investment gains (losses), before income taxes $ (319) $ 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Financial Liabilities Carried at Fair Value | The following table provides information as of March 31, 2022 and December 31, 2021 about the Company's financial assets and liabilities carried at fair value. Separate account assets are also recorded at fair value on the Company's Consolidated Balance Sheets and are reported separately in the Separate Accounts section below as gains and losses related to these assets generally accrue directly to policyholders. (In millions) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total As of March 31, 2022 As of December 31, 2021 As of March 31, 2022 As of December 31, 2021 As of March 31, 2022 As of December 31, 2021 As of March 31, 2022 As of December 31, 2021 Financial assets at fair value Debt securities Federal government and agency $ 149 $ 147 $ 220 $ 240 $ — $ — $ 369 $ 387 State and local government — — 159 171 — — 159 171 Foreign government — — 2,490 2,611 5 5 2,495 2,616 Corporate — — 11,468 12,606 525 660 11,993 13,266 Mortgage and other asset-backed — — 273 418 125 100 398 518 Total debt securities 149 147 14,610 16,046 655 765 15,414 16,958 Equity securities (1) 12 16 421 160 31 31 464 207 Short-term investments — — 190 428 — — 190 428 Derivative assets — — 159 143 — — 159 143 Financial liabilities at fair value Derivative liabilities $ — $ — $ 29 $ 33 $ — $ — $ 29 $ 33 |
Fair Value and Significant Unobservable Inputs Used in Pricing Debt Securities | The following table summarizes the fair value and significant unobservable inputs that were developed directly by the Company and used in pricing these debt securities as of March 31, 2022 and December 31, 2021. The range and weighted average basis point ("bps") amounts for liquidity reflect the Company's best estimates of the unobservable adjustments a market participant would make to calculate these fair values. Fair Value as of Unobservable Adjustment Range (Weighted Average by Quantity) as of (Fair value in millions ) March 31, 2022 December 31, 2021 Unobservable input March 31, 2022 March 31, 2022 December 31, 2021 Debt securities Corporate and government debt securities $ 529 $ 664 Liquidity 60 - 1200 (370) bps 60 - 1060 (410) bps Mortgage and other asset-backed securities 125 100 Liquidity 60 - 380 (130) bps 60 - 390 (100) bps Other debt securities 1 1 Total Level 3 debt securities $ 655 $ 765 |
Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value | The following table summarizes the changes in financial assets and financial liabilities classified in Level 3 for the three months ended March 31, 2022 and 2021. Gains and losses reported in the table may include net changes in fair value that are attributable to both observable and unobservable inputs. For the Three Months Ended (In millions) 2022 2021 Debt and Equity Securities Beginning balance $ 796 $ 854 Total gains (losses) included in shareholders' net income 12 (10) Gains (losses) included in other comprehensive income (15) (16) Gains (losses) required to adjust future policy benefits for settlement annuities (1) (12) (8) Purchases, sales and settlements Purchases 49 29 Settlements (81) (16) Total purchases, sales and settlements (32) 13 Transfers into/(out of) Level 3 Transfers into Level 3 101 86 Transfers out of Level 3 (164) (16) Total transfers into/(out of) Level 3 (63) 70 Ending balance $ 686 $ 903 Total gains (losses) included in Shareholders' net income attributable to instruments held at the reporting date $ — $ (11) Change in unrealized gains or losses included in Other comprehensive (loss), net of tax for assets held at the end of the reporting period $ (13) $ (16) (1) Amounts do not accrue to shareholders. |
Fair Values of Separate Account Assets | Fair values of Separate account assets at March 31, 2022 and December 31, 2021 were as follows: (In millions) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 March 31, 2022 December 31, 2021 Guaranteed separate accounts (See Note 18) $ 239 $ 227 $ 271 $ 276 $ — $ — $ 510 $ 503 Non-guaranteed separate accounts (1) 460 1,130 6,676 6,406 311 334 7,447 7,870 Subtotal $ 699 $ 1,357 $ 6,947 $ 6,682 $ 311 $ 334 7,957 8,373 Non-guaranteed separate accounts priced at net asset value ("NAV") as a practical expedient (1) 909 842 Total 8,866 9,215 Separate account assets of businesses classified as held for sale (2) (718) (878) Separate account assets per Consolidated Balance Sheets $ 8,148 $ 8,337 (1) Non-guaranteed separate accounts include $4.4 billion as of March 31, 2022 and $4.5 billion as of December 31, 2021 in assets supporting the Company's pension plans, including $0.3 billion classified in Level 3 as of March 31, 2022 and December 31, 2021. (2) Investments related to the international life, accident and supplemental benefits businesses that are held for sale. See Note 5 to the Consolidated Financial Statements for additional information. |
Additional Information on Separate Account Assets Priced at NAV | Separate account investments in securities partnerships, real estate and hedge funds are generally valued based on the separate account's ownership share of the equity of the investee (NAV as a practical expedient), including changes in the fair values of its underlying investments. Substantially all of these assets support the Cigna pension plans. The following table provides additional information on these investments: Fair Value as of Unfunded Commitment as of March 31, 2022 Redemption Frequency Redemption Notice (In millions) March 31, 2022 December 31, 2021 Securities partnerships $ 557 $ 513 $ 262 Not applicable Not applicable Real estate funds 348 325 — Quarterly 30 - 90 days Hedge funds 4 4 — Up to annually, varying by fund 30 - 90 days Total $ 909 $ 842 $ 262 |
Fair Value Disclosures for Financial Instruments Not Carried at Fair Value | The following table includes the Company's financial instruments not recorded at fair value, however fair value disclosure is required at March 31, 2022 and December 31, 2021. In addition to universal life products and finance leases, financial instruments that are carried in the Company's Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table: Classification in Fair Value Hierarchy March 31, 2022 December 31, 2021 (In millions) Fair Value Carrying Value Fair Value Carrying Value Commercial mortgage loans Level 3 $ 1,519 $ 1,559 $ 1,598 $ 1,566 Long-term debt, including current maturities, excluding finance leases Level 2 $ 32,646 $ 31,552 $ 35,621 $ 31,593 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in the Components of AOCI | Changes in the components of AOCI were as follows: Three Months Ended March 31, (In millions) 2022 2021 Securities and Derivatives Beginning balance $ 685 $ 900 (Depreciation) appreciation on securities and derivatives (705) (342) Tax benefit 154 65 Net (depreciation) appreciation on securities and derivatives (551) (277) Reclassification adjustment for (gains) losses included in Shareholders' net income (Net realized investment (gains) losses) (11) 5 Reclassification adjustment for tax expense (benefit) included in Shareholders' net income 2 (1) Net (gains) losses reclassified from AOCI to Shareholders' net income (9) 4 Other comprehensive (loss), net of tax (560) (273) Ending balance $ 125 $ 627 Translation of foreign currencies Beginning balance $ (233) $ (15) Translation of foreign currencies (60) (114) Tax (expense) (3) (5) Other comprehensive (loss), net of tax (63) (119) Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests (2) (4) Shareholders' other comprehensive (loss), net of tax (61) (115) Ending balance $ (294) $ (130) Postretirement benefits liability Beginning balance $ (1,336) $ (1,746) Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (Interest expense and other) 16 20 Reclassification adjustment for settlement (Interest expense and other) — 3 Reclassification adjustment for tax (benefit) included in Shareholders' net income (3) (5) Net adjustments reclassified from AOCI to Shareholders' net income 13 18 Other comprehensive income, net of tax 13 18 Ending balance $ (1,323) $ (1,728) |
Organizational Efficiency Plan
Organizational Efficiency Plan (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Rollforward of Accrued Liability | The following table summarizes a roll forward of the accrued liability recorded in Accrued expenses and other liabilities: (In millions) Balance, December 31, 2021 $ 103 2022 payments (14) Balance, March, 31, 2022 $ 89 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Operating and Finance Lease Right of Use ("ROU") Assets and Lease Liabilities | Operating and finance lease right-of-use ("ROU") assets and lease liabilities were as follows: (In millions) March 31, 2022 December 31, 2021 Operating leases: (1) Operating lease ROU assets in Other assets $ 456 $ 478 Accrued expenses and other liabilities $ 154 $ 159 Other non-current liabilities 407 436 Total operating lease liabilities $ 561 $ 595 Finance leases: Property and equipment, gross $ 118 $ 101 Accumulated depreciation (56) (51) Property and equipment, net $ 62 $ 50 Short-term debt $ 27 $ 23 Long-term debt 37 28 Total finance lease liabilities $ 64 $ 51 (1) Operating leases include $28 million as of March 31, 2022 and $27 million as of December 31, 2021 classified as Assets of businesses held for sale and $25 million as of March 31, 2022, and $28 million as of December 31, 2021 classified as Liabilities of businesses held for sale. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Special Items | The following tables present the special items recorded by the Company for the three months ended March 31, 2022 and 2021: Three Months Ended (In millions) March 31, 2022 March 31, 2021 Description of Special Item Charges (Benefits) and Financial Statement Line Item(s) After-tax Before-tax After-tax Before-tax Integration and transaction-related costs $ 37 $ 52 $ 22 $ 29 Debt extinguishment costs — — 101 131 (Benefits) charges associated with litigation matters — — (21) (27) Total impact from special items $ 37 $ 52 $ 102 $ 133 |
Summarized Segment Financial Information | Summarized segment financial information was as follows: (In millions) Evernorth Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended March 31, 2022 Revenues from external customers $ 32,289 $ 10,461 $ 841 $ — $ 43,591 Inter-segment revenues 1,287 562 — (1,849) Net investment income 10 266 138 — 414 Total revenues 33,586 11,289 979 (1,849) 44,005 Net realized investment results from certain equity method investments — 103 — — 103 Adjusted revenues $ 33,586 $ 11,392 $ 979 $ (1,849) $ 44,108 Income (loss) before taxes $ 870 $ 859 $ 215 $ (395) $ 1,549 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (11) (1) (5) — (17) Net realized investment (gains) losses (1) — 406 16 — 422 Amortization of acquired intangible assets 443 15 — — 458 Special items Integration and transaction-related costs — — — 52 52 Pre-tax adjusted income (loss) from operations $ 1,302 $ 1,279 $ 226 $ (343) $ 2,464 (In millions) Evernorth Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended March 31, 2021 Revenues from external customers $ 29,419 $ 10,285 $ 876 $ — $ 40,580 Inter-segment revenues 1,198 509 — (1,707) Net investment income 3 259 129 — 391 Total revenues 30,620 11,053 1,005 (1,707) 40,971 Net realized investment results from certain equity method investments — 14 — — 14 Adjusted revenues $ 30,620 $ 11,067 $ 1,005 $ (1,707) $ 40,985 Income (loss) before taxes $ 749 $ 1,045 $ 206 $ (487) $ 1,513 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (5) (1) (6) — (12) Net realized investment (gains) losses (1) 2 (16) 27 — 13 Amortization of acquired intangible assets 477 14 4 — 495 Special items Integration and transaction-related costs — — — 29 29 Debt extinguishment costs — — — 131 131 (Benefits) charges associated with litigation matters — — — (27) (27) Pre-tax adjusted income (loss) from operations $ 1,223 $ 1,042 $ 231 $ (354) $ 2,142 |
Revenue from External Customers | Revenue from external customers includes Pharmacy revenues, Premiums and Fees and other revenues. The following table presents these revenues by product, premium and service type for the three months ended March 31: Three Months Ended March 31, (In millions) 2022 2021 Products (Pharmacy revenues) (ASC 606) Network revenues $ 15,531 $ 15,138 Home delivery and specialty revenues 14,699 12,774 Other 1,712 1,388 Intercompany eliminations (1,245) (1,275) Total pharmacy revenues 30,697 28,025 Insurance premiums (ASC 944) Cigna Healthcare U.S. Commercial Insured 3,720 3,523 Stop loss 1,325 1,194 Other 360 310 U.S. Government Medicare Advantage 2,078 2,092 Medicare Part D 401 450 Other 940 1,138 International Health 702 641 Total Cigna Healthcare 9,526 9,348 International businesses held for sale 763 809 Other 69 58 Intercompany eliminations (2) (1) Total premiums 10,356 10,214 Services (Fees) (ASC 606) Evernorth 1,624 1,314 Cigna Healthcare 1,496 1,434 Other Operations 5 5 Other revenues 15 19 Intercompany eliminations (602) (431) Total fees and other revenues 2,538 2,341 Total revenues from external customers $ 43,591 $ 40,580 |
Description of Business (Detail
Description of Business (Details) $ in Millions | Oct. 31, 2021USD ($) |
International life, accident and supplemental benefits businesses | Held-for-Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Sale price | $ 5,720 |
Accounts Receivable, Net - Summ
Accounts Receivable, Net - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Noninsurance customer receivables | $ 7,200 | $ 6,274 |
Pharmaceutical manufacturers receivables | 5,805 | 5,463 |
Insurance customer receivables | 2,647 | 2,932 |
Other receivables | 399 | 456 |
Receivables, Net, Current Before Reclassification To Disposal Group Assets Held For Sale | 16,051 | 15,125 |
Accounts receivable, net classified as Assets of businesses held for sale | (48) | (54) |
Accounts receivable, net per Consolidated Balance Sheets | $ 16,003 | $ 15,071 |
Accounts Receivable, Net - Narr
Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Allowance for receivables net current | $ 1,500 | $ 1,400 |
Allowance for current expected credit losses on accounts receivable | $ 65 | $ 60 |
Mergers, Acquisitions and Div_2
Mergers, Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Apr. 19, 2021 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 45,804 | $ 45,811 | ||
Acquired intangible assets | 33,714 | $ 34,102 | ||
Integration and transaction-related costs (Selling, general and administrative expenses) | 52 | $ 29 | ||
Integration and transaction-related costs, after-tax | $ 37 | $ 22 | ||
MDLIVE, Inc. | ||||
Business Acquisition [Line Items] | ||||
Ownership interest acquired | 97.00% | |||
Ownership interest after acquisition | 100.00% |
Assets and Liabilities of Bus_3
Assets and Liabilities of Businesses Held for Sale (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Separate account assets | $ 718 | $ 878 | |
Assets of businesses held for sale | 9,693 | 10,057 | |
Insurance and contractholder liabilities | 4,562 | 4,644 | |
Total liabilities of businesses held for sale | 6,116 | 6,423 | |
International life, accident and supplemental benefits businesses | Held-for-Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale price | $ 5,720 | ||
Cash and cash equivalents | 591 | 406 | |
Investments | 4,771 | 5,109 | |
Deferred policy acquisition costs | 2,717 | 2,755 | |
Separate account assets | 718 | 878 | |
Goodwill, other intangible assets and all other assets | 896 | 909 | |
Assets of businesses held for sale | 9,693 | 10,057 | |
Insurance and contractholder liabilities | 4,562 | 4,644 | |
Accounts payable, accrued expenses and other liabilities | 436 | 452 | |
Deferred tax liabilities, net | 400 | 449 | |
Separate account liabilities | 718 | 878 | |
Total liabilities of businesses held for sale | 6,116 | 6,423 | |
Gross unrealized appreciation on securities and derivatives | (33) | 137 | |
Gross translation loss on foreign currencies | $ 160 | $ 209 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Shareholders' net income | $ 1,183 | $ 1,161 |
Shares: | ||
Weighted average (in shares) | 318,487 | 348,248 |
Common stock equivalents (in shares) | 2,795 | 3,728 |
Total shares (in shares) | 321,282 | 351,976 |
EPS, basic (in dollars per share) | $ 3.71 | $ 3.33 |
EPS, effect of dilution (in dollars per share) | (0.03) | (0.03) |
EPS, diluted (in dollars per share) | $ 3.68 | $ 3.30 |
Earnings Per Share - Outstandin
Earnings Per Share - Outstanding Employee Stock Options Not Included in the Computation of Diluted Earnings Per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive options (in shares) | 2.8 | 1.5 |
Earnings Per Share - Shares of
Earnings Per Share - Shares of Common Stock Held in Treasury (Details) - shares shares in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Earnings Per Share [Abstract] | |||
Shares of common stock held in treasury | 77.3 | 71.2 | 48.7 |
Debt - Outstanding Amounts of D
Debt - Outstanding Amounts of Debt and Finance Leases (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Short-term debt | ||
Commercial paper | $ 1,570,000,000 | $ 2,027,000,000 |
Other, including finance leases | 27,000,000 | 23,000,000 |
Total short-term debt | 2,173,000,000 | 2,545,000,000 |
Long-term debt | ||
Other, including finance leases | 37,000,000 | 28,000,000 |
Total long-term debt | 31,013,000,000 | 31,125,000,000 |
$500 million, 3.05% Notes due 11/2022 | ||
Short-term debt | ||
Current maturities | 496,000,000 | 495,000,000 |
Long-term debt | ||
Gross value | $ 500,000,000 | |
Interest Rate | 3.05% | |
$17 million, 8.3% Notes due 2023 | ||
Short-term debt | ||
Current maturities | 17,000,000 | $ 0 |
Long-term debt | ||
Long-term debt | 0 | 17,000,000 |
Gross value | $ 17,000,000 | |
Interest Rate | 8.30% | |
$63 million, 7.65% Notes due 2023 | ||
Short-term debt | ||
Current maturities | $ 63,000,000 | 0 |
Long-term debt | ||
Long-term debt | 0 | 63,000,000 |
Gross value | $ 63,000,000 | |
Interest Rate | 7.65% | |
$700 million, Floating Rate Notes due 2023 | ||
Long-term debt | ||
Long-term debt | $ 699,000,000 | 699,000,000 |
Gross value | 700,000,000 | |
$1,000 million, 3% Notes due 2023 | ||
Long-term debt | ||
Long-term debt | 987,000,000 | 985,000,000 |
Gross value | $ 1,000,000,000 | |
Interest Rate | 3.00% | |
$1,187 million, 3.75% Notes due 2023 | ||
Long-term debt | ||
Long-term debt | $ 1,185,000,000 | 1,185,000,000 |
Gross value | $ 1,187,000,000 | |
Interest Rate | 3.75% | |
$500 million, 0.613% Notes due 2024 | ||
Long-term debt | ||
Long-term debt | $ 499,000,000 | 498,000,000 |
Gross value | $ 500,000,000 | |
Interest Rate | 0.613% | |
$1,000 million, 3.5% Notes due 2024 | ||
Long-term debt | ||
Long-term debt | $ 985,000,000 | 983,000,000 |
Gross value | $ 1,000,000,000 | |
Interest Rate | 3.50% | |
$900 million, 3.25% Notes due 2025 | ||
Long-term debt | ||
Long-term debt | $ 897,000,000 | 897,000,000 |
Gross value | $ 900,000,000 | |
Interest Rate | 3.25% | |
$2,200 million, 4.125% Notes due 2025 | ||
Long-term debt | ||
Long-term debt | $ 2,193,000,000 | 2,193,000,000 |
Gross value | $ 2,200,000,000 | |
Interest Rate | 4.125% | |
$1,500 million, 4.5% Notes due 2026 | ||
Long-term debt | ||
Long-term debt | $ 1,504,000,000 | 1,504,000,000 |
Gross value | $ 1,500,000,000 | |
Interest Rate | 4.50% | |
$800 million, 1.25% Notes due 2026 | ||
Long-term debt | ||
Long-term debt | $ 797,000,000 | 796,000,000 |
Gross value | $ 800,000,000 | |
Interest Rate | 1.25% | |
$1,500 million, 3.4% Notes due 2027 | ||
Long-term debt | ||
Long-term debt | $ 1,426,000,000 | 1,423,000,000 |
Gross value | $ 1,500,000,000 | |
Interest Rate | 3.40% | |
$259 million, 7.875% Debentures due 2027 | ||
Long-term debt | ||
Long-term debt | $ 259,000,000 | 259,000,000 |
Gross value | $ 259,000,000 | |
Interest Rate | 7.875% | |
$600 million, 3.05% Notes due 2027 | ||
Long-term debt | ||
Long-term debt | $ 596,000,000 | 596,000,000 |
Gross value | $ 600,000,000 | |
Interest Rate | 3.05% | |
$3,800 million, 4.375% Notes due 2028 | ||
Long-term debt | ||
Long-term debt | $ 3,783,000,000 | 3,782,000,000 |
Gross value | $ 3,800,000,000 | |
Interest Rate | 4.375% | |
$1,500 million, 2.4% Notes due 2030 | ||
Long-term debt | ||
Long-term debt | $ 1,491,000,000 | 1,490,000,000 |
Gross value | $ 1,500,000,000 | |
Interest Rate | 2.40% | |
$1,500 million, 2.375% Notes due 2031 | ||
Long-term debt | ||
Long-term debt | $ 1,448,000,000 | 1,500,000,000 |
Gross value | $ 1,500,000,000 | |
Interest Rate | 2.375% | |
$45 million, 8.3% Step Down Notes due 2033 | ||
Long-term debt | ||
Long-term debt | $ 45,000,000 | 45,000,000 |
Gross value | $ 45,000,000 | |
Interest Rate | 8.30% | |
$190 million, 6.15% Notes due 2036 | ||
Long-term debt | ||
Long-term debt | $ 190,000,000 | 190,000,000 |
Gross value | $ 190,000,000 | |
Interest Rate | 6.15% | |
$2,200 million, 4.8% Notes due 2038 | ||
Long-term debt | ||
Long-term debt | $ 2,192,000,000 | 2,192,000,000 |
Gross value | $ 2,200,000,000 | |
Interest Rate | 4.80% | |
$750 million, 3.2% Notes due 2040 | ||
Long-term debt | ||
Long-term debt | $ 743,000,000 | 743,000,000 |
Gross value | $ 750,000,000 | |
Interest Rate | 3.20% | |
$121 million, 5.875% Notes due 2041 | ||
Long-term debt | ||
Long-term debt | $ 119,000,000 | 119,000,000 |
Gross value | $ 121,000,000 | |
Interest Rate | 5.875% | |
$448 million, 6.125% Notes due 2041 | ||
Long-term debt | ||
Long-term debt | $ 488,000,000 | 490,000,000 |
Gross value | $ 448,000,000 | |
Interest Rate | 6.125% | |
$317 million, 5.375% Notes due 2042 | ||
Long-term debt | ||
Long-term debt | $ 315,000,000 | 315,000,000 |
Gross value | $ 317,000,000 | |
Interest Rate | 5.375% | |
$1,500 million, 4.8% Notes due 2046 | ||
Long-term debt | ||
Long-term debt | $ 1,465,000,000 | 1,465,000,000 |
Gross value | $ 1,500,000,000 | |
Interest Rate | 4.80% | |
$1,000 million, 3.875% Notes due 2047 | ||
Long-term debt | ||
Long-term debt | $ 989,000,000 | 988,000,000 |
Gross value | $ 1,000,000,000 | |
Interest Rate | 3.875% | |
$3,000 million, 4.9% Notes due 2048 | ||
Long-term debt | ||
Long-term debt | $ 2,968,000,000 | 2,967,000,000 |
Gross value | $ 3,000,000,000 | |
Interest Rate | 4.90% | |
$1,250 million, 3.4% Notes due 2050 | ||
Long-term debt | ||
Long-term debt | $ 1,236,000,000 | 1,236,000,000 |
Gross value | $ 1,250,000,000 | |
Interest Rate | 3.40% | |
$1,500 million, 3.4% Notes due 2051 | ||
Long-term debt | ||
Long-term debt | $ 1,477,000,000 | $ 1,477,000,000 |
Gross value | $ 1,500,000,000 | |
Interest Rate | 3.40% |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2022USD ($)bank | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |||
Commercial paper average interest rate | 0.60% | ||
Interest expense on long-term and short-term debt | $ 314,000,000 | $ 325,000,000 | |
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 5,000,000,000 | ||
Revolving Credit and Letter of Credit Facility Maturing April 2026, Revolving Credit and Letter of Credit Facility Maturing April 2024, and 364 Day Revolving Credit Agreement Maturing April 2022 | |||
Debt Instrument [Line Items] | |||
Outstanding balances | 0 | ||
Five-year Revolving Credit Agreement, Maturing April 2026 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 3,000,000,000 | ||
Credit agreement term | 5 years | ||
Three-year Revolving Credit Agreement, Maturing April 2024 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Credit agreement term | 3 years | ||
364-day Revolving Credit Agreement, Maturing April 2022 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Credit agreement term | 364 days | ||
Revolving Credit And Letter Of Credit Facility Maturing April 2027, Revolving Credit Facility Maturing April 2025, And 364 Day Revolving Credit Agreement, Maturing April 2023 | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Aggregate amount of options to increase commitments | $ 1,500,000,000 | ||
Maximum total commitment | $ 6,500,000,000 | ||
Number of participating banks | bank | 22 | ||
Leverage ratio covenant | 60.00% | ||
Revolving Credit And Letter Of Credit Facility Maturing April 2027 | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 3,000,000,000 | ||
Credit agreement term | 5 years | ||
Credit agreement extension term | 1 year | ||
Revolving Credit And Letter Of Credit Facility Maturing April 2027 | Letter of Credit | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 500,000,000 | ||
Revolving Credit Facility Maturing April 2025 | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Credit agreement term | 3 years | ||
Credit agreement extension term | 1 year | ||
364 Day Revolving Credit Agreement, Maturing April 2023 | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000,000 | ||
Credit agreement term | 364 days | ||
Credit facility, conversion to term loan, term | 1 year |
Common and Preferred Stock - Na
Common and Preferred Stock - Narrative (Details) - $ / shares | Apr. 27, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 |
Subsequent Event [Line Items] | ||||||
Common dividends declared (in dollars per share) | $ 1.12 | $ 1 | $ 1 | $ 1 | $ 1 | |
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Common dividends declared (in dollars per share) | $ 1.12 |
Common and Preferred Stock - Di
Common and Preferred Stock - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 24, 2022 | Mar. 25, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Equity [Abstract] | ||||
Amount per share (in dollars per share) | $ 1.12 | $ 1 | $ 1.12 | |
Total amount paid | $ 357 | $ 345 | $ 357 | $ 345 |
Insurance and Contractholder _3
Insurance and Contractholder Liabilities - Account Balances (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Current | ||||
Contractholder deposit funds | $ 368 | $ 352 | ||
Future policy benefits | 237 | 312 | ||
Unearned premiums | 619 | 558 | ||
Total | 6,186 | 5,929 | ||
Insurance and contractholder liabilities classified as held for sale | (513) | (611) | ||
Current insurance and contractholder liabilities | 5,673 | 5,318 | ||
Non-current | ||||
Contractholder deposit funds | 6,641 | 6,702 | ||
Future policy benefits | 8,896 | 9,194 | ||
Unearned premiums | 416 | 418 | ||
Total | 16,216 | 16,596 | ||
Insurance and contractholder liabilities classified as held for sale | (4,049) | (4,033) | ||
Non-current insurance and contractholder liabilities | 12,167 | 12,563 | ||
Total | ||||
Contractholder deposit funds | 7,009 | 7,054 | $ 7,161 | |
Future policy benefits | 9,133 | 9,506 | ||
Unearned premiums | 1,035 | 976 | ||
Future policy benefits | 9,306 | |||
Unearned premiums | 950 | |||
Total | 22,402 | 22,525 | ||
Insurance and contractholder liabilities classified as held for sale | (4,562) | (4,644) | ||
Total insurance and contractholder liabilities | 17,840 | 17,881 | 22,167 | |
Future policy benefits classified as liabilities of business held for sale | 3,700 | 3,800 | ||
Unpaid claims classified as liabilities of business held for sale | 400 | 400 | ||
Contractholder deposit funds classified as liabilities of business held for sale | 400 | 400 | ||
Cigna Healthcare | ||||
Current | ||||
Unpaid claims and claim expenses | 4,459 | 4,159 | ||
Non-current | ||||
Unpaid claims and claim expenses | 32 | 102 | ||
Total | ||||
Unpaid claims and claim expenses | 4,491 | 4,261 | ||
Unpaid claims and claim expenses | 4,491 | 4,261 | 4,027 | $ 3,695 |
Other Operations | ||||
Current | ||||
Unpaid claims and claim expenses | 503 | 548 | ||
Non-current | ||||
Unpaid claims and claim expenses | 231 | 180 | ||
Total | ||||
Unpaid claims and claim expenses | $ 734 | $ 728 | ||
Unpaid claims and claim expenses | $ 723 |
Insurance and Contractholder _4
Insurance and Contractholder Liabilities - Narrative (Details) - USD ($) $ in Billions | Mar. 31, 2022 | Mar. 31, 2021 |
Cigna Healthcare | ||
Insurance and Contractholder Liabilities [Line Items] | ||
Total of incurred but not reported liabilities plus expected claim development on reported claims, including reported claims in process | $ 4.2 | $ 3.7 |
Insurance and Contractholder _5
Insurance and Contractholder Liabilities - Unpaid Claims and Claim Expenses - Cigna Healthcare - Activity (Details) - Cigna Healthcare - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 4,261 | $ 3,695 |
Less: Reinsurance and other amounts recoverable | 261 | 237 |
Beginning balance, net | 4,000 | 3,458 |
Incurred costs related to: | ||
Current year | 8,024 | 7,755 |
Prior years | (276) | (233) |
Total incurred | 7,748 | 7,522 |
Paid costs related to: | ||
Current year | 4,634 | 4,640 |
Prior years | 2,822 | 2,555 |
Total paid | 7,456 | 7,195 |
Ending balance, net | 4,292 | 3,785 |
Add: Reinsurance and other amounts recoverable | 199 | 242 |
Ending balance | $ 4,491 | $ 4,027 |
Insurance and Contractholder _6
Insurance and Contractholder Liabilities - Unpaid Claims and Claims Expenses - Cigna Healthcare - Variances in Incurred Costs Related to Prior Years' Unpaid Claims and Claims Expenses (Details) - Cigna Healthcare - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 276 | $ 233 |
Favorable (unfavorable) variance, percentage | 0.90% | 0.80% |
Actual completion factors | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 99 | $ 107 |
Favorable (unfavorable) variance, percentage | 0.30% | 0.40% |
Medical cost trend | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 177 | $ 126 |
Favorable (unfavorable) variance, percentage | 0.60% | 0.40% |
Insurance and Contractholder _7
Insurance and Contractholder Liabilities - Unpaid Claims and Claim Expenses - Other Operations - Liability Balance Details (Details) - Other Operations - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid claims and claim expenses | $ 734 | $ 728 | ||
Unpaid claims and claim expenses | $ 723 | |||
International businesses to be sold and our interest in a joint venture in Turkey | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid claims and claim expenses | 436 | $ 447 | ||
Unpaid claims and claim expenses | 442 | $ 452 | ||
Other Operations | ||||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||||
Unpaid claims and claim expenses | $ 298 | |||
Unpaid claims and claim expenses | $ 281 |
Insurance and Contractholder _8
Insurance and Contractholder Liabilities - Unpaid Claims and Claim Expenses - Other Operations - Activity (Details) - Other Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Beginning balance, including disposal groups | $ 728 | |
Paid costs related to: | ||
Ending balance | $ 723 | |
Ending balance, including disposal groups | 734 | |
International businesses to be sold and our interest in a joint venture in Turkey | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Beginning balance | 452 | |
Less: Reinsurance and other amounts recoverable | 45 | |
Beginning balance, net | 407 | |
Beginning balance, including disposal groups | 447 | |
Less: Reinsurance, including disposal groups | 46 | |
Beginning balance, net, including disposal groups | 401 | |
Incurred claims related to: | ||
Current year | 259 | 254 |
Prior years | (7) | 0 |
Total incurred | 252 | 254 |
Paid costs related to: | ||
Current year | 116 | 115 |
Prior years | 135 | 134 |
Total paid | 251 | 249 |
Foreign currency | (6) | (15) |
Ending balance, net | 397 | |
Add: Reinsurance and other amounts recoverable | 45 | |
Ending balance | $ 442 | |
Ending balance, net, including disposal groups | 396 | |
Add: Reinsurance, including disposal groups | 40 | |
Ending balance, including disposal groups | $ 436 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2022USD ($)reinsurer | Dec. 31, 2021USD ($)reinsurer | |
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables, held for sale | $ 95 | |
GMIB | ||
Effects of Reinsurance [Line Items] | ||
Annuitization election period | 30 days | |
Percent of future claim payments reinsured | 100.00% | 100.00% |
Number of external reinsurers | reinsurer | 3 | 3 |
GMIB | Other Contract [Member] | ||
Effects of Reinsurance [Line Items] | ||
GMIB liabilities | $ 514 | $ 572 |
Variable Annuity | Berkshire Hathaway Life Insurance Company of Nebraska | ||
Effects of Reinsurance [Line Items] | ||
Percent of future claim payments reinsured | 100.00% | |
Remaining overall limit under reinsurance agreement | $ 3,200 | |
Other Current Assets | ||
Effects of Reinsurance [Line Items] | ||
Reinsurance recoverables | $ 143 |
Reinsurance - Reinsurance Recov
Reinsurance - Reinsurance Recoverables by Range of External Credit Rating and Collateral Level (Details) $ in Millions | Mar. 31, 2022USD ($) |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | $ 5,205 |
Allowance for uncollectible reinsurance | (30) |
Total reinsurance recoverables | 5,175 |
Fair value of collateral contractually required to meet or exceed carrying value of recoverable | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 1,156 |
Collateral provisions exist that may mitigate risk of credit loss | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 3,750 |
No collateral | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 299 |
Ongoing Operations | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 396 |
Ongoing Operations | A- equivalent and higher current ratings ( | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 176 |
Ongoing Operations | BBB- to BBB+ equivalent current credit ratings | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 61 |
Ongoing Operations | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 159 |
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 116 |
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | A- equivalent and higher current ratings ( | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | BBB- to BBB+ equivalent current credit ratings | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 116 |
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | A- equivalent and higher current ratings ( | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | BBB- to BBB+ equivalent current credit ratings | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | No collateral | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 280 |
Ongoing Operations | No collateral | A- equivalent and higher current ratings ( | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 176 |
Ongoing Operations | No collateral | BBB- to BBB+ equivalent current credit ratings | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 61 |
Ongoing Operations | No collateral | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 43 |
Acquisition, disposition or run-off activities | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 4,809 |
Acquisition, disposition or run-off activities | A- equivalent and higher current ratings ( | Lincoln National Life and Lincoln Life & Annuity of New York | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 2,908 |
Acquisition, disposition or run-off activities | A- equivalent and higher current ratings ( | Berkshire Hathaway Life Insurance Company of Nebraska | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 644 |
Acquisition, disposition or run-off activities | A- equivalent and higher current ratings ( | Prudential Retirement Insurance and Annuity | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 149 |
Acquisition, disposition or run-off activities | A- equivalent and higher current ratings ( | Prudential Insurance Company of America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 404 |
Acquisition, disposition or run-off activities | A- equivalent and higher current ratings ( | Life Insurance Company of North America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 437 |
Acquisition, disposition or run-off activities | A- equivalent and higher current ratings ( | Other | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 251 |
Acquisition, disposition or run-off activities | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 16 |
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 1,040 |
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | A- equivalent and higher current ratings ( | Lincoln National Life and Lincoln Life & Annuity of New York | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | A- equivalent and higher current ratings ( | Berkshire Hathaway Life Insurance Company of Nebraska | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 268 |
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | A- equivalent and higher current ratings ( | Prudential Retirement Insurance and Annuity | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 149 |
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | A- equivalent and higher current ratings ( | Prudential Insurance Company of America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 404 |
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | A- equivalent and higher current ratings ( | Life Insurance Company of North America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | A- equivalent and higher current ratings ( | Other | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 219 |
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 3,750 |
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | A- equivalent and higher current ratings ( | Lincoln National Life and Lincoln Life & Annuity of New York | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 2,908 |
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | A- equivalent and higher current ratings ( | Berkshire Hathaway Life Insurance Company of Nebraska | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 376 |
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | A- equivalent and higher current ratings ( | Prudential Retirement Insurance and Annuity | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | A- equivalent and higher current ratings ( | Prudential Insurance Company of America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | A- equivalent and higher current ratings ( | Life Insurance Company of North America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 437 |
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | A- equivalent and higher current ratings ( | Other | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 16 |
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 13 |
Acquisition, disposition or run-off activities | No collateral | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 19 |
Acquisition, disposition or run-off activities | No collateral | A- equivalent and higher current ratings ( | Lincoln National Life and Lincoln Life & Annuity of New York | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | No collateral | A- equivalent and higher current ratings ( | Berkshire Hathaway Life Insurance Company of Nebraska | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | No collateral | A- equivalent and higher current ratings ( | Prudential Retirement Insurance and Annuity | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | No collateral | A- equivalent and higher current ratings ( | Prudential Insurance Company of America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | No collateral | A- equivalent and higher current ratings ( | Life Insurance Company of North America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or run-off activities | No collateral | A- equivalent and higher current ratings ( | Other | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 16 |
Acquisition, disposition or run-off activities | No collateral | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | $ 3 |
Reinsurance - Account Value, Ne
Reinsurance - Account Value, Net Amount at Risk and Contractholders for GMDB Business (Details) - Variable Annuity - GMDB contractholder in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022USD ($)contractholder | Dec. 31, 2019contractholder | Dec. 31, 2021USD ($) | |
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account value | $ 9,057 | $ 9,795 | |
Net amount at risk | $ 1,508 | $ 1,392 | |
Number of contractholders (estimated) | contractholder | 165 | 170 |
Reinsurance - GMIB Reinsurers (
Reinsurance - GMIB Reinsurers (Details) - GMIB - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Berkshire | Secured | GMIB Assets | Collateralization risk | ||
Ceded Credit Risk [Line Items] | ||
Concentration percentage | 100.00% | |
Liberty Re (Bermuda) Ltd. | Secured | GMIB Assets | Collateralization risk | ||
Ceded Credit Risk [Line Items] | ||
Concentration percentage | 100.00% | |
Other Contract [Member] | ||
Ceded Credit Risk [Line Items] | ||
GMIB recoverables | $ 546 | $ 601 |
Other Contract [Member] | Berkshire | ||
Ceded Credit Risk [Line Items] | ||
GMIB recoverables | 257 | 283 |
Other Contract [Member] | Sun Life Assurance Company of Canada | ||
Ceded Credit Risk [Line Items] | ||
GMIB recoverables | 151 | 167 |
Other Contract [Member] | Liberty Re (Bermuda) Ltd. | ||
Ceded Credit Risk [Line Items] | ||
GMIB recoverables | $ 138 | $ 151 |
Investments - Investments by Ca
Investments - Investments by Category (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current | ||
Investments including assets of business held for sale | $ 1,056 | $ 1,264 |
Investments classified as assets of business held for sale | (325) | (344) |
Investments per Consolidated Balance Sheets | 731 | 920 |
Long-term | ||
Investments including assets of business held for sale | 22,139 | 23,203 |
Investments classified as assets of business held for sale | (4,446) | (4,765) |
Investments per Consolidated Balance Sheets | 17,693 | 18,438 |
Total | ||
Investments including assets of business held for sale | 23,195 | 24,467 |
Investments classified as assets of business held for sale | (4,771) | (5,109) |
Investments per Consolidated Balance Sheets | 18,424 | 19,358 |
Debt securities | ||
Current | ||
Investments including assets of business held for sale | 803 | 796 |
Long-term | ||
Investments including assets of business held for sale | 14,611 | 16,162 |
Total | ||
Investments including assets of business held for sale | 15,414 | 16,958 |
Equity securities | ||
Current | ||
Investments including assets of business held for sale | 50 | 0 |
Long-term | ||
Investments including assets of business held for sale | 821 | 603 |
Total | ||
Investments including assets of business held for sale | 871 | 603 |
Commercial mortgage loans | ||
Current | ||
Investments including assets of business held for sale | 13 | 40 |
Long-term | ||
Investments including assets of business held for sale | 1,546 | 1,526 |
Total | ||
Investments including assets of business held for sale | 1,559 | 1,566 |
Policy loans | ||
Current | ||
Investments including assets of business held for sale | 0 | 0 |
Long-term | ||
Investments including assets of business held for sale | 1,316 | 1,338 |
Total | ||
Investments including assets of business held for sale | 1,316 | 1,338 |
Other long-term investments | ||
Current | ||
Investments including assets of business held for sale | 0 | 0 |
Long-term | ||
Investments including assets of business held for sale | 3,845 | 3,574 |
Total | ||
Investments including assets of business held for sale | 3,845 | 3,574 |
Short-term investments | ||
Current | ||
Investments including assets of business held for sale | 190 | 428 |
Long-term | ||
Investments including assets of business held for sale | 0 | 0 |
Total | ||
Investments including assets of business held for sale | $ 190 | $ 428 |
Investments - Debt Securities b
Investments - Debt Securities by Contractual Maturity Periods (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 796 | |
Due after one year through five years | 4,978 | |
Due after five years through ten years | 4,967 | |
Due after ten years | 4,163 | |
Mortgage and other asset-backed securities | 413 | |
Total | 15,317 | $ 15,775 |
Fair Value | ||
Due in one year or less | 799 | |
Due after one year through five years | 4,948 | |
Due after five years through ten years | 4,859 | |
Due after ten years | 4,410 | |
Mortgage and other asset-backed securities | 398 | |
Total | $ 15,414 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule of Investments [Line Items] | |||
Gain (loss) recognized in the income statement | |||
Gain (loss) recognized in other comprehensive income | |||
Gains (losses) reclassified from other comprehensive income into shareholders' net income | |||
Amounts excluded from assessment of hedge effectiveness | |||
Fair value of assets posted as collateral supporting the fair values of these derivative financial instruments | |||
Fair value of assets held as collateral supporting the fair values of these derivative financial instruments | |||
Equity Securities FV NI | Product Concentration Risk | Health Care Sector | |||
Schedule of Investments [Line Items] | |||
Concentration percentage | 65.00% |
Investments - Gross Unrealized
Investments - Gross Unrealized Appreciation (Depreciation) on Debt Securities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 15,317 | $ 15,775 |
Allowance for Credit Loss | (23) | (23) |
Unrealized Appreciation | 634 | 1,337 |
Unrealized Depreciation | (514) | (131) |
Fair Value | 15,414 | 16,958 |
Run-Off Settlement Annuity Business | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,297 | 2,262 |
Allowance for Credit Loss | (5) | (5) |
Unrealized Appreciation | 412 | 720 |
Unrealized Depreciation | (52) | (10) |
Fair Value | 2,652 | 2,967 |
Federal government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 298 | 287 |
Allowance for Credit Loss | 0 | 0 |
Unrealized Appreciation | 75 | 101 |
Unrealized Depreciation | (4) | (1) |
Fair Value | 369 | 387 |
State and local government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 158 | 154 |
Allowance for Credit Loss | 0 | 0 |
Unrealized Appreciation | 4 | 17 |
Unrealized Depreciation | (3) | 0 |
Fair Value | 159 | 171 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,467 | 2,468 |
Allowance for Credit Loss | 0 | 0 |
Unrealized Appreciation | 142 | 194 |
Unrealized Depreciation | (114) | (46) |
Fair Value | 2,495 | 2,616 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,981 | 12,361 |
Allowance for Credit Loss | (23) | (23) |
Unrealized Appreciation | 409 | 1,008 |
Unrealized Depreciation | (374) | (80) |
Fair Value | 11,993 | 13,266 |
Mortgage and other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 413 | 505 |
Allowance for Credit Loss | 0 | 0 |
Unrealized Appreciation | 4 | 17 |
Unrealized Depreciation | (19) | (4) |
Fair Value | $ 398 | $ 518 |
Investments - Summary of Debt S
Investments - Summary of Debt Securities with a Decline in Fair Value (Details) $ in Millions | Mar. 31, 2022USD ($)position | Dec. 31, 2021USD ($)position |
More than one year | ||
Total Fair Value | $ 7,397 | $ 3,890 |
Total Amortized Cost | 7,911 | 4,021 |
Total Unrealized Depreciation | $ (514) | $ (131) |
Total Number of Issues | position | 3,652 | 1,886 |
Investment grade | Debt securities | ||
One year or less | ||
Fair Value | $ 5,398 | $ 2,785 |
Amortized Cost | 5,730 | 2,861 |
Unrealized Depreciation | $ (332) | $ (76) |
Number of Issues | position | 1,761 | 909 |
More than one year | ||
Fair Value | $ 816 | $ 382 |
Amortized Cost | 930 | 412 |
Unrealized Depreciation | $ (114) | $ (30) |
Number of Issues | position | 348 | 143 |
Below investment grade | Debt securities | ||
One year or less | ||
Fair Value | $ 957 | $ 561 |
Amortized Cost | 1,006 | 578 |
Unrealized Depreciation | $ (49) | $ (17) |
Number of Issues | position | 1,406 | 781 |
More than one year | ||
Fair Value | $ 226 | $ 162 |
Amortized Cost | 245 | 170 |
Unrealized Depreciation | $ (19) | $ (8) |
Number of Issues | position | 137 | 53 |
Investments - Equity Security I
Investments - Equity Security Investments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Cost | ||
Equity securities with readily determinable fair values | $ 840 | $ 257 |
Equity securities with no readily determinable fair value | 280 | 270 |
Total | 1,120 | 527 |
Carrying Value | ||
Equity securities with readily determinable fair values | 464 | 207 |
Equity securities with no readily determinable fair value | 407 | 396 |
Total | $ 871 | $ 603 |
Investments - Summary of the Cr
Investments - Summary of the Credit Risk Profile of the Commercial Mortgage Loan Portfolio (Details) - Real Estate Loan - Commercial Portfolio Segment $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Schedule of Investments [Line Items] | ||
Allowance for credit losses | $ (7) | $ (6) |
Total | $ 1,559 | $ 1,566 |
Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 1.97 | 1.96 |
Average Loan-to-Value Ratio | 61.00% | 61.00% |
Below 60% | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 555 | $ 560 |
Below 60% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 2.21 | 2.18 |
60% to 79% | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 882 | $ 883 |
60% to 79% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 1.89 | 1.89 |
80% to 100% | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 129 | $ 129 |
80% to 100% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 1.47 | 1.47 |
Investments - Carrying Values o
Investments - Carrying Values of Other Long-Term Investments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Other long term investments | $ 3,845 | $ 3,574 |
Real estate investments | ||
Schedule of Investments [Line Items] | ||
Other long term investments | 1,212 | 1,152 |
Securities partnerships | ||
Schedule of Investments [Line Items] | ||
Other long term investments | 2,463 | 2,272 |
Other | ||
Schedule of Investments [Line Items] | ||
Other long term investments | $ 170 | $ 150 |
Investments - Summary of Deriva
Investments - Summary of Derivative Instruments Held (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Designated as Hedging Instrument | Fair Value Hedging | Foreign currency swap contracts | ||
Derivative [Line Items] | ||
Notional Value | $ 1,110 | $ 1,081 |
Designated as Hedging Instrument | Fair Value Hedging | Interest rate swap contracts | ||
Derivative [Line Items] | ||
Notional Value | 750 | 750 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency swap contracts | ||
Derivative [Line Items] | ||
Notional Value | 526 | 526 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional Value | 1,360 | 1,380 |
Not Designated as Hedging Instrument, Economic Hedge | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional Value | $ 749 | $ 720 |
Investments - Realized Gains an
Investments - Realized Gains and Losses on Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments [Abstract] | ||
Net realized investment gains (losses), excluding credit loss expense and asset write-downs | $ (319) | $ 10 |
Credit loss (expense) recoveries | 0 | (9) |
Net realized investment gains (losses), before income taxes | $ (319) | $ 1 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financial assets at fair value: | ||
Debt Securities | $ 15,414 | $ 16,958 |
Equity securities | 464 | 207 |
Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 15,414 | 16,958 |
Equity securities | 464 | 207 |
Short-term investments | 190 | 428 |
Recurring | Forwards, swaps, options | ||
Financial assets at fair value: | ||
Derivative assets | 159 | 143 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 29 | 33 |
Recurring | Swaps | Short-term investments | ||
Financial assets at fair value: | ||
Derivative assets | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 149 | 147 |
Equity securities | 12 | 16 |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Forwards, swaps, options | ||
Financial assets at fair value: | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 14,610 | 16,046 |
Equity securities | 421 | 160 |
Short-term investments | 190 | 428 |
Significant Other Observable Inputs (Level 2) | Recurring | Forwards, swaps, options | ||
Financial assets at fair value: | ||
Derivative assets | 159 | 143 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 29 | 33 |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 655 | 765 |
Equity securities | 31 | 31 |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring | Forwards, swaps, options | ||
Financial assets at fair value: | ||
Derivative assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative liabilities | 0 | 0 |
Federal government and agency | ||
Financial assets at fair value: | ||
Debt Securities | 369 | 387 |
Federal government and agency | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 369 | 387 |
Federal government and agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 149 | 147 |
Federal government and agency | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 220 | 240 |
Federal government and agency | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
State and local government | ||
Financial assets at fair value: | ||
Debt Securities | 159 | 171 |
State and local government | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 159 | 171 |
State and local government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
State and local government | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 159 | 171 |
State and local government | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
Foreign government | ||
Financial assets at fair value: | ||
Debt Securities | 2,495 | 2,616 |
Foreign government | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 2,495 | 2,616 |
Foreign government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
Foreign government | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 2,490 | 2,611 |
Foreign government | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 5 | 5 |
Corporate | ||
Financial assets at fair value: | ||
Debt Securities | 11,993 | 13,266 |
Corporate | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 11,993 | 13,266 |
Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
Corporate | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 11,468 | 12,606 |
Corporate | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 525 | 660 |
Mortgage and other asset-backed | ||
Financial assets at fair value: | ||
Debt Securities | 398 | 518 |
Mortgage and other asset-backed | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 398 | 518 |
Mortgage and other asset-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
Mortgage and other asset-backed | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 273 | 418 |
Mortgage and other asset-backed | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | $ 125 | $ 100 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Separate Account Assets - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Separate accounts assets classified in Level 3, period increase (decrease), , including transfers in and out of Level 3 | ||
Separate accounts assets classified in Level 3, including disposal groups, period increase (decrease), including transfers in and out of Level 3 | ||
Recurring | Securities partnerships | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Expected liquidation period after inception | 10 years |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Unobservable Inputs (Details) - Recurring - Significant Unobservable Inputs (Level 3) $ in Millions | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) |
Debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 655 | $ 765 |
Corporate and government debt securities | Securities Priced by the Company | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 529 | $ 664 |
Corporate and government debt securities | Securities Priced by the Company | Minimum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0060 | 0.0060 |
Corporate and government debt securities | Securities Priced by the Company | Maximum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.1200 | 0.1060 |
Corporate and government debt securities | Securities Priced by the Company | Weighted Average | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0370 | 0.0410 |
Mortgage and other asset-backed securities | Securities Priced by the Company | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 125 | $ 100 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Minimum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0060 | 0.0060 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Maximum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0380 | 0.0390 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Weighted Average | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0130 | 0.0100 |
Other debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 1 | $ 1 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Transfers into/(out of) Level 3 | ||
Change in unrealized gains or losses included in Other comprehensive (loss), net of tax for assets held at the end of the reporting period | $ (13) | $ (16) |
Debt and Equity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | 854 | |
Balance | 796 | |
Total gains (losses) included in shareholders' net income | 12 | (10) |
Gains (losses) included in other comprehensive income | (15) | (16) |
Gains (losses) required to adjust future policy benefits for settlement annuities | (12) | (8) |
Purchases, sales and settlements | ||
Purchases | 49 | 29 |
Settlements | (81) | (16) |
Total purchases, sales and settlements | (32) | 13 |
Transfers into/(out of) Level 3 | ||
Transfers into Level 3 | 101 | 86 |
Transfers out of Level 3 | (164) | (16) |
Total transfers into/(out of) Level 3 | (63) | 70 |
Balance | 903 | |
Balance | 686 | |
Total gains (losses) included in Shareholders' net income attributable to instruments held at the reporting date | $ 0 | $ (11) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Separate Account Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guaranteed separate accounts | $ 510 | $ 503 |
Non-guaranteed separate accounts | 7,447 | 7,870 |
Subtotal | 7,957 | 8,373 |
Non-guaranteed separate accounts priced at NAV as a practical expedient | 909 | 842 |
Total | 8,866 | 9,215 |
Separate account assets of business classified as held for sale | (718) | (878) |
Separate account assets | 8,148 | 8,337 |
Pension Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-guaranteed separate accounts | 4,400 | 4,500 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guaranteed separate accounts | 239 | 227 |
Non-guaranteed separate accounts | 460 | 1,130 |
Subtotal | 699 | 1,357 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guaranteed separate accounts | 271 | 276 |
Non-guaranteed separate accounts | 6,676 | 6,406 |
Subtotal | 6,947 | 6,682 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guaranteed separate accounts | 0 | 0 |
Non-guaranteed separate accounts | 311 | 334 |
Subtotal | 311 | 334 |
Significant Unobservable Inputs (Level 3) | Pension Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-guaranteed separate accounts | $ 300 | $ 300 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information on Separate Account Assets Priced at Net Asset Value (Details) - Separate Account Assets - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 262 | |
Recurring | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 909 | $ 842 |
Securities partnerships | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 262 | |
Securities partnerships | Recurring | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 557 | 513 |
Real estate funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 0 | |
Real estate funds | Minimum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 30 days | |
Real estate funds | Maximum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 90 days | |
Real estate funds | Recurring | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 348 | 325 |
Hedge funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 0 | |
Hedge funds | Minimum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 30 days | |
Hedge funds | Maximum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 90 days | |
Hedge funds | Recurring | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 4 | $ 4 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value under Certain Conditions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Realized investment losses on assets measured at fair value under certain conditions, after-tax | $ 0 | $ 0 |
Realized investment gains on equity securities with no readily determinable fair value |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Disclosures for Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities, excluding finance leases | $ 32,646 | $ 35,621 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans | 1,519 | 1,598 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans | 1,559 | 1,566 |
Long-term debt, including current maturities, excluding finance leases | $ 31,552 | $ 31,593 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - entity | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of VIEs | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 47,130 | $ 50,328 |
Other comprehensive (loss), net of tax | (610) | (374) |
Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests | (2) | (4) |
Shareholders other comprehensive income (loss), net of tax | (608) | (370) |
Balance | 46,109 | 48,155 |
Securities and Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 685 | 900 |
Other comprehensive income (loss) before reclassifications, before tax | (705) | (342) |
Other comprehensive income (loss) before reclassifications, tax | 154 | 65 |
Other comprehensive income (loss) before reclassifications, after-tax | (551) | (277) |
Reclassification adjustment, tax | 2 | (1) |
Net amounts reclassified from AOCI to net income | (9) | 4 |
Shareholders other comprehensive income (loss), net of tax | (560) | (273) |
Balance | 125 | 627 |
Reclassification adjustment for (gains) losses included in Shareholders' net income (Net realized investment (gains) losses) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, before tax | (11) | 5 |
Translation of foreign currencies | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Translation of foreign currencies, before tax | (60) | (114) |
Translation of foreign currencies, tax | (3) | (5) |
Other comprehensive (loss), net of tax | (63) | (119) |
Translation of foreign currencies attributable to noncontrolling interest | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests | (2) | (4) |
Translation of foreign currencies attributable to parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (233) | (15) |
Shareholders other comprehensive income (loss), net of tax | (61) | (115) |
Balance | (294) | (130) |
Postretirement benefits liability | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (1,336) | (1,746) |
Reclassification adjustment, tax | (3) | (5) |
Net amounts reclassified from AOCI to net income | 13 | 18 |
Shareholders other comprehensive income (loss), net of tax | 13 | 18 |
Balance | (1,323) | (1,728) |
Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (Interest expense and other) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, before tax | 16 | 20 |
Reclassification adjustment for settlement (Interest expense and other) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, before tax | $ 0 | $ 3 |
Organizational Efficiency Pla_2
Organizational Efficiency Plan - Narrative (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Restructuring and Related Activities [Abstract] | |
Charge for organizational efficiency plan (Selling, general and administrative expenses) | $ 168 |
Charge for organizational efficiency plan (Selling, general and administrative expenses) | 119 |
Restructuring charges, abandonment of leased assets and impairment of property and equipment | 59 |
Restructuring charges, severance costs | $ 109 |
Organizational Efficiency Pla_3
Organizational Efficiency Plan - Rollforward of Accrued Liability (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Restructuring and Related Activities [Abstract] | |
Balance, December 31, 2021 | $ 103 |
2022 payments | (14) |
Balance, March, 31, 2022 | $ 89 |
Leases - Operating and Finance
Leases - Operating and Finance Lease Right of Use ("ROU") Assets and Lease Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
Operating lease ROU assets | $ 456 | $ 478 |
Accrued expenses and other liabilities | 154 | 159 |
Other non-current liabilities | 407 | 436 |
Total operating lease liabilities | 561 | 595 |
Finance leases: | ||
Property and equipment, gross | 118 | 101 |
Accumulated depreciation | (56) | (51) |
Property and equipment, net | 62 | 50 |
Short-term debt | 27 | 23 |
Long-term debt | 37 | 28 |
Total finance lease liabilities | $ 64 | $ 51 |
Balance sheet location of operating lease ROU assets | Other assets | Other assets |
Balance sheet location of current operating lease liabilities | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Balance sheet location of non-current operating lease liabilities | Other non-current liabilities | Other non-current liabilities |
Balance sheet location of non-current finance lease assets | Property and equipment | Property and equipment |
Balance sheet location of current finance lease liabilities | Short-term debt | Short-term debt |
Balance sheet location of non-current finance lease liabilities | Long-term debt | Long-term debt |
Operating lease ROU assets, held for sale | $ 28 | $ 27 |
Operating lease liabilities, held for sale | $ 25 | $ 28 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Consolidated effective tax rate | 22.70% | 22.60% |
Contingencies and Other Matte_2
Contingencies and Other Matters (Details) | Mar. 31, 2022USD ($) | Apr. 19, 2016claim | Mar. 31, 2016USD ($)claim | Mar. 31, 2022USD ($) |
Guaranty Fund Assessments | ||||
Commitments And Contingencies [Line Items] | ||||
Loss contingency accrual provision | ||||
Litigation Matters and Regulatory Matters | ||||
Commitments And Contingencies [Line Items] | ||||
Reserves for litigation matters, pre-tax | ||||
Express Scripts Litigation with Anthem | ||||
Commitments And Contingencies [Line Items] | ||||
Number of counts dismissed | claim | 2 | |||
Number of counts | claim | 6 | |||
Express Scripts Litigation with Anthem | Judicial Ruling | Pricing Concessions | ||||
Commitments And Contingencies [Line Items] | ||||
Damages sought by Anthem | 14,800,000,000 | |||
Express Scripts Litigation with Anthem | Judicial Ruling | Pricing Concessions Through Remaining Contract Term | ||||
Commitments And Contingencies [Line Items] | ||||
Damages sought by Anthem | $ 13,000,000,000 | |||
Express Scripts Litigation with Anthem | Judicial Ruling | Pricing Concessions After Remaining Term of Agreement | ||||
Commitments And Contingencies [Line Items] | ||||
Damages sought by Anthem | 1,800,000,000 | |||
Express Scripts Litigation with Anthem | Pending Litigation | Damages for Service Issues | ||||
Commitments And Contingencies [Line Items] | ||||
Damages sought by Anthem | $ 150,000,000 | |||
Certain other guarantees, indemnification obligations in connection with acquisition and disposition transactions | ||||
Commitments And Contingencies [Line Items] | ||||
Liability for guarantees | 0 | 0 | ||
Retiree and Life Insurance Benefits | Financial Guarantees | ||||
Commitments And Contingencies [Line Items] | ||||
Maximum guarantee exposure | 430,000,000 | 430,000,000 | ||
Assets maintained by employers (minimum) | 430,000,000 | |||
Liability for guarantees | $ 0 | $ 0 |
Segment Information - Summary o
Segment Information - Summary of Special Items (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
After-tax | |||
Integration and transaction-related costs (Selling, general and administrative expenses) | $ 37 | $ 22 | |
Debt extinguishment costs | 0 | 101 | |
(Benefits) charges associated with litigation matters (Selling, general and administrative expenses) | 0 | (21) | |
Charge for organizational efficiency plan (Selling, general and administrative expenses) | $ 119 | ||
Total impact from special items | 37 | 102 | |
Before-tax | |||
Integration and transaction-related costs (Selling, general and administrative expenses) | 52 | 29 | |
Debt extinguishment costs | 0 | 131 | |
(Benefits) charges associated with litigation matters (Selling, general and administrative expenses) | 0 | (27) | |
Restructuring Charges | $ 168 | ||
Total impact from special items | $ 52 | $ 133 |
Segment Information - Summarize
Segment Information - Summarized Segment Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues from customers | $ 43,591 | $ 40,580 | |
Net investment income | 414 | 391 | |
TOTAL REVENUES | 44,005 | 40,971 | |
Net realized investment results from certain equity method investments | 103 | 14 | |
Adjusted revenues | 44,108 | 40,985 | |
Depreciation and amortization | 717 | 715 | |
Income before income taxes | 1,549 | 1,513 | |
Pre-tax adjustments to reconcile to adjusted income from operations | |||
(Income) attributable to noncontrolling interests | (17) | (12) | |
Net realized investment (gains) losses | 422 | 13 | |
Amortization of acquired intangible assets | 458 | 495 | |
Special items | |||
Integration and transaction-related costs | 52 | 29 | |
Debt extinguishment costs | 0 | 131 | |
(Benefits) charges associated with litigation matters | 0 | (27) | |
Charge for organizational efficiency plan | $ 168 | ||
Pre-tax adjusted income (loss) from operations | 2,464 | 2,142 | |
Evernorth | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | 32,289 | 29,419 | |
Cigna Healthcare | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | 10,461 | 10,285 | |
Other Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | 841 | 876 | |
Operating Segments | Evernorth | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 10 | 3 | |
TOTAL REVENUES | 33,586 | 30,620 | |
Net realized investment results from certain equity method investments | 0 | 0 | |
Adjusted revenues | 33,586 | 30,620 | |
Income before income taxes | 870 | 749 | |
Pre-tax adjustments to reconcile to adjusted income from operations | |||
(Income) attributable to noncontrolling interests | (11) | (5) | |
Net realized investment (gains) losses | 0 | 2 | |
Amortization of acquired intangible assets | 443 | 477 | |
Special items | |||
Integration and transaction-related costs | 0 | 0 | |
Debt extinguishment costs | 0 | ||
(Benefits) charges associated with litigation matters | 0 | ||
Pre-tax adjusted income (loss) from operations | 1,302 | 1,223 | |
Operating Segments | Cigna Healthcare | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 266 | 259 | |
TOTAL REVENUES | 11,289 | 11,053 | |
Net realized investment results from certain equity method investments | 103 | 14 | |
Adjusted revenues | 11,392 | 11,067 | |
Income before income taxes | 859 | 1,045 | |
Pre-tax adjustments to reconcile to adjusted income from operations | |||
(Income) attributable to noncontrolling interests | (1) | (1) | |
Net realized investment (gains) losses | 406 | (16) | |
Amortization of acquired intangible assets | 15 | 14 | |
Special items | |||
Integration and transaction-related costs | 0 | 0 | |
Debt extinguishment costs | 0 | ||
(Benefits) charges associated with litigation matters | 0 | ||
Pre-tax adjusted income (loss) from operations | 1,279 | 1,042 | |
Operating Segments | Other Operations | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 138 | 129 | |
TOTAL REVENUES | 979 | 1,005 | |
Net realized investment results from certain equity method investments | 0 | 0 | |
Adjusted revenues | 979 | 1,005 | |
Income before income taxes | 215 | 206 | |
Pre-tax adjustments to reconcile to adjusted income from operations | |||
(Income) attributable to noncontrolling interests | (5) | (6) | |
Net realized investment (gains) losses | 16 | 27 | |
Amortization of acquired intangible assets | 0 | 4 | |
Special items | |||
Integration and transaction-related costs | 0 | 0 | |
Debt extinguishment costs | 0 | ||
(Benefits) charges associated with litigation matters | 0 | ||
Pre-tax adjusted income (loss) from operations | 226 | 231 | |
Corporate and Eliminations | |||
Segment Reporting Information [Line Items] | |||
Net investment income | 0 | 0 | |
TOTAL REVENUES | (1,849) | (1,707) | |
Net realized investment results from certain equity method investments | 0 | 0 | |
Adjusted revenues | (1,849) | (1,707) | |
Income before income taxes | (395) | (487) | |
Special items | |||
Pre-tax adjusted income (loss) from operations | (343) | (354) | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | 0 | 0 | |
Pre-tax adjustments to reconcile to adjusted income from operations | |||
(Income) attributable to noncontrolling interests | 0 | 0 | |
Net realized investment (gains) losses | 0 | 0 | |
Amortization of acquired intangible assets | 0 | 0 | |
Special items | |||
Integration and transaction-related costs | 52 | 29 | |
Debt extinguishment costs | 131 | ||
(Benefits) charges associated with litigation matters | (27) | ||
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | (1,849) | (1,707) | |
Intersegment Eliminations | Evernorth | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | (1,287) | (1,198) | |
Intersegment Eliminations | Cigna Healthcare | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | (562) | (509) | |
Intersegment Eliminations | Other Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues from customers | $ 0 | $ 0 |
Segment Information - Revenue f
Segment Information - Revenue from External Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from External Customer [Line Items] | ||
Premiums | $ 10,356 | $ 10,214 |
Total revenues from external customers | 43,591 | 40,580 |
Intersegment Eliminations | ||
Revenue from External Customer [Line Items] | ||
Premiums | (2) | (1) |
Total revenues from external customers | (1,849) | (1,707) |
Operating Segments | International businesses held for sale | ||
Revenue from External Customer [Line Items] | ||
Premiums | 763 | 809 |
Operating Segments | Other | ||
Revenue from External Customer [Line Items] | ||
Premiums | 69 | 58 |
Evernorth | ||
Revenue from External Customer [Line Items] | ||
Total revenues from external customers | 32,289 | 29,419 |
Evernorth | Intersegment Eliminations | ||
Revenue from External Customer [Line Items] | ||
Total revenues from external customers | (1,287) | (1,198) |
Cigna Healthcare | ||
Revenue from External Customer [Line Items] | ||
Total revenues from external customers | 10,461 | 10,285 |
Cigna Healthcare | Intersegment Eliminations | ||
Revenue from External Customer [Line Items] | ||
Total revenues from external customers | (562) | (509) |
Other Operations | ||
Revenue from External Customer [Line Items] | ||
Total revenues from external customers | 841 | 876 |
Other Operations | Intersegment Eliminations | ||
Revenue from External Customer [Line Items] | ||
Total revenues from external customers | 0 | 0 |
Pharmacy revenues | ||
Revenue from External Customer [Line Items] | ||
Revenues | 30,697 | 28,025 |
Pharmacy revenues | Intersegment Eliminations | ||
Revenue from External Customer [Line Items] | ||
Revenues | (1,245) | (1,275) |
Network revenues | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Revenues | 15,531 | 15,138 |
Home delivery and specialty revenues | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Revenues | 14,699 | 12,774 |
Other | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Revenues | 1,712 | 1,388 |
Cigna Healthcare | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Premiums | 9,526 | 9,348 |
Insured | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Premiums | 3,720 | 3,523 |
Stop loss | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Premiums | 1,325 | 1,194 |
Other | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Premiums | 360 | 310 |
Medicare Advantage | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Premiums | 2,078 | 2,092 |
Medicare Part D | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Premiums | 401 | 450 |
Other | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Premiums | 940 | 1,138 |
International Health | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Premiums | 702 | 641 |
Total fees and other revenues | ||
Revenue from External Customer [Line Items] | ||
Revenues | 2,538 | 2,341 |
Total fees and other revenues | Intersegment Eliminations | ||
Revenue from External Customer [Line Items] | ||
Revenues | (602) | (431) |
Fees | Evernorth | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Revenues | 1,624 | 1,314 |
Fees | Cigna Healthcare | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Revenues | 1,496 | 1,434 |
Fees | Other Operations | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Revenues | 5 | 5 |
Other revenues | Operating Segments | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 15 | $ 19 |
Segment Information - Narrative
Segment Information - Narrative (Details) - USD ($) $ in Billions | Mar. 31, 2022 | Dec. 31, 2021 |
Pharmacy Benefits Management Services | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Performance guarantee liability | $ 1.3 | $ 1.1 |