Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38769 | |
Entity Registrant Name | The Cigna Group | |
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 $0.01 | |
Trading Symbol | CI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 292,619,966 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001739940 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | [1] | Sep. 30, 2023 | Sep. 30, 2022 | [1] | |
Revenues | ||||||
Premiums | $ 10,998 | $ 9,586 | $ 33,062 | $ 30,368 | ||
Net investment income | 321 | 204 | 876 | 943 | ||
TOTAL REVENUES | 49,048 | 45,281 | 144,151 | 134,765 | ||
Benefits and expenses | ||||||
Pharmacy and other service costs | 33,639 | 31,777 | 98,540 | 92,740 | ||
Medical costs and other benefit expenses | 8,927 | 7,751 | 27,007 | 24,215 | ||
Selling, general and administrative expenses | 3,788 | 3,151 | 10,760 | 9,690 | ||
Amortization of acquired intangible assets | 454 | 460 | 1,368 | 1,419 | ||
TOTAL BENEFITS AND EXPENSES | 46,808 | 43,139 | 137,675 | 128,064 | ||
Income from operations | 2,240 | 2,142 | 6,476 | 6,701 | ||
Interest expense and other | (365) | (304) | (1,086) | (904) | ||
(Loss) gain on sale of businesses | (21) | 1,735 | (21) | 1,735 | ||
Net realized investment losses | (14) | (82) | (44) | (493) | ||
Income before income taxes | 1,840 | 3,491 | 5,325 | 7,039 | ||
TOTAL INCOME TAXES | 391 | 713 | 1,060 | 1,479 | ||
Net income | 1,449 | 2,778 | 4,265 | 5,560 | ||
Less: Net income attributable to noncontrolling interests | 41 | 21 | 130 | 49 | ||
SHAREHOLDERS' NET INCOME | $ 1,408 | $ 2,757 | $ 4,135 | $ 5,511 | ||
Shareholders' net income per share | ||||||
Basic (in dollars per share) | $ 4.79 | $ 9.07 | $ 14.03 | $ 17.64 | ||
Diluted (in dollars per share) | $ 4.74 | $ 8.97 | $ 13.89 | $ 17.46 | ||
Pharmacy revenues | ||||||
Revenues | ||||||
Revenues | $ 34,531 | $ 32,762 | $ 100,639 | $ 95,431 | ||
Fees and other revenues | ||||||
Revenues | ||||||
Revenues | $ 3,198 | $ 2,729 | $ 9,574 | $ 8,023 | ||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | [1] | Sep. 30, 2023 | Sep. 30, 2022 | [1] | |
Statement of Comprehensive Income [Abstract] | ||||||
Net income | $ 1,449 | $ 2,778 | $ 4,265 | $ 5,560 | ||
Other comprehensive income (loss), net of tax | ||||||
Net unrealized (depreciation) appreciation on securities and derivatives | (192) | (150) | 22 | (1,663) | ||
Net long-duration insurance and contractholder liabilities measurement adjustments | (28) | (19) | (476) | 446 | ||
Net translation (losses) gains on foreign currencies | (29) | 175 | (32) | (95) | ||
Postretirement benefits liability adjustment | 8 | 10 | 25 | 50 | ||
Other comprehensive (loss) income, net of tax | (241) | 16 | (461) | (1,262) | ||
Total comprehensive income | 1,208 | 2,794 | 3,804 | 4,298 | ||
Comprehensive income (loss) attributable to noncontrolling interests | ||||||
Net income attributable to redeemable noncontrolling interests | 37 | 3 | 116 | 8 | ||
Net income attributable to other noncontrolling interests | 4 | 18 | 14 | 41 | ||
Other comprehensive loss attributable to redeemable noncontrolling interests | 0 | 1 | 0 | (2) | ||
Total comprehensive income attributable to noncontrolling interests | 41 | 22 | 130 | 47 | ||
SHAREHOLDERS' COMPREHENSIVE INCOME | $ 1,167 | $ 2,772 | $ 3,674 | $ 4,251 | ||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | [1] | |
Assets | ||||
Cash and cash equivalents | $ 8,497 | $ 5,924 | ||
Investments | 1,046 | 905 | ||
Accounts receivable, net | 19,083 | 17,218 | ||
Inventories | 4,416 | 4,777 | ||
Other current assets | 1,476 | 1,298 | ||
Total current assets | 34,518 | 30,122 | ||
Long-term investments | 18,974 | 16,288 | ||
Reinsurance recoverables | 4,920 | 5,416 | ||
Property and equipment | 3,924 | 3,774 | ||
Goodwill | 45,810 | 45,811 | ||
Other intangible assets | 31,324 | 32,492 | ||
Other assets | 3,147 | 2,704 | ||
Separate account assets | 7,028 | 7,278 | ||
TOTAL ASSETS | 149,645 | 143,885 | ||
Liabilities | ||||
Current insurance and contractholder liabilities | 7,352 | 5,409 | ||
Pharmacy and other service costs payable | 19,320 | 17,070 | ||
Accounts payable | 7,673 | 7,775 | ||
Accrued expenses and other liabilities | 9,668 | 7,978 | ||
Short-term debt | 3,046 | 2,993 | ||
Total current liabilities | 47,059 | 41,225 | ||
Non-current insurance and contractholder liabilities | 11,286 | 11,976 | ||
Deferred tax liabilities, net | 7,480 | 7,786 | ||
Other non-current liabilities | 2,932 | 2,766 | ||
Long-term debt | 28,094 | 28,100 | ||
Separate account liabilities | 7,028 | 7,278 | ||
TOTAL LIABILITIES | 103,879 | 99,131 | ||
Contingencies — Note 16 | ||||
Redeemable noncontrolling interests | 64 | 66 | ||
Shareholders' equity | ||||
Common stock | [2] | 4 | 4 | |
Additional paid-in capital | 30,563 | 30,233 | ||
Accumulated other comprehensive loss | (2,119) | (1,658) | ||
Retained earnings | 40,982 | 37,940 | ||
Less: Treasury stock, at cost | (23,739) | (21,844) | ||
TOTAL SHAREHOLDERS' EQUITY | 45,691 | 44,675 | ||
Other noncontrolling interests | 11 | 13 | ||
Total equity | 45,702 | 44,688 | ||
Total liabilities and equity | $ 149,645 | $ 143,885 | ||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information.[2]Par value per share, $0.01; shares issued, 399 million as of September 30, 2023 and 398 million as of December 31, 2022; authorized shares, 600 million. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 399,000,000 | 398,000,000 |
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, 2021 | [1] | $ 46,976 | $ 46,958 | $ 4 | $ 29,574 | $ (1,068) | $ 32,623 | $ (14,175) | $ 18 |
Changes in Total Equity | |||||||||
Effect of issuing stock for employee benefit plans | [1] | 446 | 446 | 521 | (75) | ||||
Other comprehensive income (loss) | [1] | (1,260) | (1,260) | (1,260) | |||||
Net income | [1] | 5,552 | 5,511 | 5,511 | 41 | ||||
Common dividends declared | [1] | (1,051) | (1,051) | (1,051) | |||||
Repurchase of common stock | [1] | (5,840) | (5,840) | (700) | (5,140) | ||||
Other transactions impacting noncontrolling interests | [1] | (17) | 0 | 0 | (17) | ||||
Balance at Sep. 30, 2022 | [1] | 44,806 | 44,764 | 4 | 29,395 | (2,328) | 37,083 | (19,390) | 42 |
Balance at Dec. 31, 2021 | [1] | 54 | |||||||
Change in Redeemable Noncontrolling Interests | |||||||||
Other comprehensive loss | [1] | (2) | |||||||
Net income | [1] | 8 | |||||||
Other transactions impacting noncontrolling interests | [1] | (10) | |||||||
Balance at Sep. 30, 2022 | [1] | 50 | |||||||
Balance at Jun. 30, 2022 | [1] | 45,701 | 45,671 | 4 | 29,930 | (2,343) | 34,668 | (16,588) | 30 |
Changes in Total Equity | |||||||||
Effect of issuing stock for employee benefit plans | [1] | 163 | 163 | 165 | (2) | ||||
Other comprehensive income (loss) | [1] | 15 | 15 | 15 | |||||
Net income | [1] | 2,775 | 2,757 | 2,757 | 18 | ||||
Common dividends declared | [1] | (342) | (342) | (342) | |||||
Repurchase of common stock | [1] | (3,500) | (3,500) | (700) | (2,800) | ||||
Other transactions impacting noncontrolling interests | [1] | (6) | 0 | 0 | (6) | ||||
Balance at Sep. 30, 2022 | [1] | 44,806 | 44,764 | 4 | 29,395 | (2,328) | 37,083 | (19,390) | 42 |
Balance at Jun. 30, 2022 | [1] | 45 | |||||||
Change in Redeemable Noncontrolling Interests | |||||||||
Other comprehensive loss | [1] | 1 | |||||||
Net income | [1] | 3 | |||||||
Other transactions impacting noncontrolling interests | [1] | 1 | |||||||
Balance at Sep. 30, 2022 | [1] | 50 | |||||||
Balance at Dec. 31, 2022 | [1] | 44,688 | 44,675 | 4 | 30,233 | (1,658) | 37,940 | (21,844) | 13 |
Changes in Total Equity | |||||||||
Effect of issuing stock for employee benefit plans | 222 | 222 | 332 | (110) | |||||
Other comprehensive income (loss) | (461) | (461) | (461) | ||||||
Net income | 4,149 | 4,135 | 4,135 | 14 | |||||
Common dividends declared | (1,093) | (1,093) | (1,093) | ||||||
Repurchase of common stock | (1,785) | (1,785) | 0 | (1,785) | |||||
Other transactions impacting noncontrolling interests | (18) | (2) | (2) | (16) | |||||
Balance at Sep. 30, 2023 | 45,702 | 45,691 | 4 | 30,563 | (2,119) | 40,982 | (23,739) | 11 | |
Balance at Dec. 31, 2022 | [1] | 66 | |||||||
Change in Redeemable Noncontrolling Interests | |||||||||
Other comprehensive loss | 0 | ||||||||
Net income | 116 | ||||||||
Other transactions impacting noncontrolling interests | (118) | ||||||||
Balance at Sep. 30, 2023 | 64 | ||||||||
Balance at Jun. 30, 2023 | 45,464 | 45,445 | 4 | 30,436 | (1,878) | 39,936 | (23,053) | 19 | |
Changes in Total Equity | |||||||||
Effect of issuing stock for employee benefit plans | 122 | 122 | 127 | (5) | |||||
Other comprehensive income (loss) | (241) | (241) | (241) | ||||||
Net income | 1,412 | 1,408 | 1,408 | 4 | |||||
Common dividends declared | (362) | (362) | (362) | ||||||
Repurchase of common stock | (681) | (681) | 0 | (681) | |||||
Other transactions impacting noncontrolling interests | (12) | 0 | 0 | (12) | |||||
Balance at Sep. 30, 2023 | 45,702 | $ 45,691 | $ 4 | $ 30,563 | $ (2,119) | $ 40,982 | $ (23,739) | $ 11 | |
Balance at Jun. 30, 2023 | 62 | ||||||||
Change in Redeemable Noncontrolling Interests | |||||||||
Other comprehensive loss | 0 | ||||||||
Net income | 37 | ||||||||
Other transactions impacting noncontrolling interests | (35) | ||||||||
Balance at Sep. 30, 2023 | $ 64 | ||||||||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Total Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Common dividends declared (in dollars per share) | $ 1.23 | $ 1.23 | $ 1.23 | $ 1.12 | $ 1.12 | $ 1.12 | $ 3.69 | $ 3.36 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | |||
Cash Flows from Operating Activities | ||||
Net income | $ 4,265 | $ 5,560 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 2,270 | 2,202 | [1] | |
Realized investment losses, net | 44 | 493 | [1] | |
Deferred income tax benefit | (303) | (298) | [1] | |
Loss (gain) on sale of businesses | 21 | (1,735) | [1] | |
Net changes in assets and liabilities, net of non-operating effects: | ||||
Accounts receivable, net | (1,916) | (2,339) | [1] | |
Inventories | 360 | (296) | [1] | |
Reinsurance recoverable and Other assets | 281 | 734 | [1] | |
Insurance liabilities | 1,482 | 408 | [1] | |
Pharmacy and other service costs payable | 2,250 | 1,368 | [1] | |
Accounts payable and Accrued expenses and other liabilities | 1,337 | 380 | [1] | |
Other, net | 255 | 80 | [1] | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 10,346 | 6,557 | [1] | |
Proceeds from investments sold: | ||||
Debt securities and equity securities | 757 | 1,406 | [1] | |
Investment maturities and repayments: | ||||
Debt securities and equity securities | 715 | 1,124 | [1] | |
Commercial mortgage loans | 86 | 73 | [1] | |
Other sales, maturities and repayments (primarily short-term and other long-term investments) | 453 | 906 | [1] | |
Investments purchased or originated: | ||||
Debt securities and equity securities | (4,005) | (2,457) | [1] | |
Commercial mortgage loans | (94) | (84) | [1] | |
Other (primarily short-term and other long-term investments) | (891) | (1,109) | [1] | |
Property and equipment purchases, net | (1,208) | (950) | [1] | |
Acquisitions, net of cash acquired | (443) | 0 | ||
Divestitures, net of cash sold | 13 | 4,838 | [1] | |
Other, net | (117) | (33) | [1] | |
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES | (4,734) | 3,714 | [1] | |
Cash Flows from Financing Activities | ||||
Deposits and interest credited to contractholder deposit funds | 127 | 121 | [1] | |
Withdrawals and benefit payments from contractholder deposit funds | (139) | (161) | [1] | |
Net change in short-term debt | 1,484 | (2,051) | [1] | |
Repayment of long-term debt | (2,967) | 0 | [1] | |
Net proceeds on issuance of long-term debt | 1,491 | 0 | [1] | |
Repurchase of common stock | (1,740) | (5,874) | [1] | |
Issuance of common stock | 113 | 317 | [1] | |
Common stock dividend paid | (1,092) | (1,050) | [1] | |
Other, net | (321) | 94 | [1] | |
NET CASH USED IN FINANCING ACTIVITIES | (3,044) | (8,604) | [1] | |
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | 2 | (98) | [1] | |
Net increase in cash, cash equivalents and restricted cash | 2,570 | 1,569 | [1] | |
Cash, cash equivalents and restricted cash January 1, including held for sale assets | [1],[2] | 5,548 | ||
Cash, cash equivalents and restricted cash and cash equivalents January 1, | 5,976 | |||
Cash, cash equivalents and restricted cash and cash equivalents December 31, | [3] | 8,546 | 7,117 | [1] |
Supplemental Disclosure of Cash Information: | ||||
Income taxes paid, net of refunds | 1,380 | 1,346 | [1] | |
Interest paid | $ 1,019 | $ 923 | [1] | |
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information.[2]Includes $425 million reported in Assets of businesses held for sale as of January 1, 2022.[3]Restricted cash and cash equivalents were reported in other long-term investments. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | Dec. 31, 2021 USD ($) |
Statement of Cash Flows [Abstract] | |
Cash, cash equivalents and restricted cash, reported in Assets of businesses held for sale | $ 425 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1 – Description of Business The Cigna Group, together with its subsidiaries (either individually or collectively referred to as the "Company," "we," "us" or "our"), is a global health company with a mission of helping those we serve improve their health and vitality. Our subsidiaries offer a differentiated set of pharmacy, medical, behavioral, dental and related 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 Healthcare 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, The Cigna Group also has certain run-off operations. A full description of our segments follows: Evernorth Health Services 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 Benefits, Home Delivery Pharmacy, Specialty Pharmacy, Distribution and Care Delivery and Management Solutions, which are provided to health plans, employers, government organizations and health care providers. Cigna Healthcare includes the U.S. Commercial, U.S. Government and International Health operating segments which provide comprehensive medical and coordinated solutions to clients and customers. U.S. Commercial products and services include medical, pharmacy, behavioral health, dental and other products and services for insured and self-insured clients. U.S. Government solutions include Medicare Advantage, Medicare Supplement and Medicare Part D plans for seniors and individual health insurance plans. 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 comprises the remainder of our business operations, which includes ongoing businesses and exited businesses. Our ongoing businesses include continuing business (corporate-owned life insurance ("COLI")) and our run-off businesses. Our run-off businesses include (i) variable annuity reinsurance business (also referred to as guaranteed minimum death benefit ("GMDB") and guaranteed minimum income benefit ("GMIB") business) that was effectively exited through reinsurance with Berkshire Hathaway Life Insurance Company of Nebraska ("Berkshire") in 2013, (ii) settlement annuity business, and (iii) individual life insurance and annuity and retirement benefits businesses comprised of deferred gains from the sales of these businesses. Our exited businesses include our interest in a joint venture in Türkiye, which was sold in December 2022 and the international life, accident and supplemental benefits businesses sold in July 2022 (the "Chubb transaction"). Corporate reflects amounts not allocated to operating segments, including net interest expense (defined as interest on corporate financing less net investment income on investments not supporting segment and other operations), certain litigation matters, expense associated with our frozen pension plans, charitable contributions, operating severance, certain overhead and enterprise-wide project costs and eliminations for products and services sold between segments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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 The Cigna Group 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"). Certain amounts in prior years related to the adoption of Targeted Improvements for the Accounting of Long-Duration Contracts, have been reclassified to conform to the current year presentation. See "Recent Accounting Pronouncements" below. 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 The Company's 2022 Form 10-K includes discussion of significant recent accounting pronouncements that either have impacted or may impact our financial statements in the future. The following information provides updates on recently adopted accounting pronouncements that have occurred since the Company filed its 2022 Form 10-K. There are no significant accounting pronouncements not yet adopted as of September 30, 2023. Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"), Accounting Standards Update ("ASU") 2018-12 and related amendments The Cigna Group adopted LDTI January 1, 2023, which includes the following key provisions: • Changes to the measurement of the future policy benefits liability for traditional and limited-pay insurance contracts: • Assumptions used to measure cash flows (such as mortality, morbidity and lapse assumptions) are updated at least annually with the effect of changes in those assumptions remeasured retrospectively and reflected in current period net income. • Discount rate assumptions are updated quarterly based on market-level yields for low credit risk fixed income instruments ("upper-medium grade fixed income instrument"), with any changes reflected in other comprehensive income. The upper-medium grade fixed income instrument yield is interpreted to mean A-rated. • Deferred policy acquisition costs ("DAC") related to long-duration insurance contracts are amortized on a constant-level basis over the expected term of the related contracts. Other related deferred or capitalized balances (such as unearned revenue liability and value of business acquired) may use this simplified amortization method. • Market risk benefits ("MRB"), defined as protecting the contractholder from other-than-nominal capital market risk and exposing the insurer to that risk, are measured at fair value, with changes in fair value recognized in net income each period, except for the effect of the Company's change in nonperformance risk (own credit risk), which is recognized in other comprehensive income. • Additional disclosures, including disaggregated roll forwards for the liability for future policy benefits, market risk benefits, separate account liabilities and DAC, as well as information about significant inputs, judgments, assumptions and methods used in measurement. • The transition methods applied at adoption were: • The liability for future policy benefits was remeasured using a modified retrospective approach applied to all outstanding contracts as of the beginning of the earliest period presented and was recognized in the opening balance of retained earnings. The impact of remeasuring the future policy benefits liability for the discount rate was recorded through accumulated other comprehensive income. • DAC followed the transition method used for future policyholder benefits. • Market risk benefits were remeasured at fair value at the beginning of the earliest period presented. The difference between this fair value and carrying value was recognized in the opening balance of retained earnings, excluding the effect of the Company's change in nonperformance risk (own credit risk), which is recognized in accumulated other comprehensive income. Effects of adoption: • The new guidance applies to our long-duration insurance products predominantly within the Cigna Healthcare segment and Other Operations. • The cumulative effects of adopting the new standard were immaterial. The impacts were a decrease to January 1, 2021 Shareholders' equity of $139 million and an increase to Shareholders' net income for the year ended December 31, 2022 and December 31, 2021 of $36 million and $5 million, respectively. The corresponding impact to diluted earnings per share was an increase of $0.11 and $0.02 for the year ended December 31, 2022 and December 31, 2021, respectively. • The prior periods within our Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Changes in Total Equity and Consolidated Statements of Cash Flows were restated to conform to the current presentation. • Prior period balances in the Company's footnote disclosures have been updated to reflect adjustments resulting from the adoption of this standard. Refer to Note 9 to the Consolidated Financial Statements for the Company's updated accounting policies. • It is possible that our income recognition pattern could change on a prospective basis for several reasons: • Applying periodic assumption updates, versus the locked-in model, may change our timing of profit or loss recognition. • DAC amortization is on a constant level basis over the expected term of the related contracts and no longer tied to the emergence of profit on such contracts. Additionally, in December 2022, the Financial Accounting Standards Board ("FASB") published ASU 2022-05, which simplified the retrospective adoption of LDTI by permitting companies to make an accounting policy election to exclude contracts that are sold and removed from the balance sheet prior to the effective date of the standard from the retrospective adoption of LDTI. The Cigna Group made this policy election for the contracts sold in the Chubb transaction and our divested interest in a joint venture in Türkiye. |
Accounts Receivable, Net
Accounts Receivable, Net | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Note 3 – Accounts Receivable, Net The following amounts were included within Accounts receivable, net: (In millions) September 30, 2023 December 31, 2022 Noninsurance customer receivables $ 8,384 $ 6,899 Pharmaceutical manufacturers receivables 8,188 7,108 Insurance customer receivables 2,256 2,963 Other receivables 255 248 Total $ 19,083 $ 17,218 Accounts Receivable Factoring Facility In July 2023, the Company entered into an uncommitted factoring facility (the "Facility") under which certain accounts receivable may be sold on a non-recourse basis to a financial institution. The Facility's total capacity is $1.0 billion with an initial term of two years, followed by automatic one year renewal terms unless terminated by either party. The transactions under the Facility are accounted for as a sale and recorded as a reduction to accounts receivable in the Consolidated Balance Sheets because control of, and risk related to, the accounts receivable are transferred to the financial institution. Although the sale is made without recourse, we provide collection services related to the transferred assets. Amounts associated with this Facility are reflected within Net cash provided by operating activities in the Company's Consolidated Statements of Cash Flows. Factoring fees paid under this Facility are reflected in Interest expense and other in the Consolidated Statements of Income. |
Supplier Finance Program
Supplier Finance Program | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Program | Note 4 – Supplier Finance Program The Company facilitates a voluntary supplier finance program (the "Program") that provides suppliers the opportunity to sell their accounts receivable due from us (i.e., our payment obligations to the suppliers) to a financial institution, on a non-recourse basis, in order to be paid earlier than our payment terms require. The Cigna Group is not a party to the Program and agrees to commercial terms with its suppliers independently of their participation in the Program. Amounts due to suppliers that participate in the Program are generally paid within one month following the invoice date. A supplier's participation in the Program has no impact on the Company's payment terms and the Company has no economic interest in a supplier's decision to participate in the Program. The suppliers, at their sole discretion, determine which invoices, if any, to sell to the financial institution. No guarantees or pledged assets are provided by the Company or any of our subsidiaries under the Program. As of September 30, 2023 and December 31, 2022, $1.6 billion and $1.3 billion, respectively, of the Company's outstanding payment obligations were confirmed as valid within the Program by the financial institution and are reflected in Accounts payable in the |
Mergers, Acquisitions and Dives
Mergers, Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Mergers, Acquisitions and Divestitures | Note 5 – Mergers, Acquisitions and DivestituresInvestment in CarepathRx Health Systems Solutions In July 2023, Evernorth Health, Inc. acquired a minority interest in CarepathRx Health Systems Solutions ("CHSS"), a provider of integrated hospital pharmacy solutions to support patients across their complete health care journey. This equity method investment is reported in Other assets and the Company's share of CHSS' net income or loss is reported in Fees and other revenues. The purchase price has been allocated to the acquired tangible and intangible assets, including customer relationships, trade names, internal-use software and goodwill. Amortization of the acquired intangibles is included in Fees and other revenues. The Company's share of CHSS' net loss and amortization of acquired intangibles was immaterial for the three months ended September 30, 2023. The Company guaranteed $125 million of CHSS' credit facilities through July 2026. The fair value of the guarantee is reflected in other liabilities and is not material. The acquisition also includes separate put and call options to increase our ownership which become exercisable annually beginning as early as April 2025. The net fair value of the options, determined using a Monte Carlo simulation, are not material and are included in Accrued expenses and other liabilities and Other assets, respectively. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6 – Earnings Per ShareBasic and diluted earnings per share were computed as follows: Three Months Ended September 30, 2023 September 30, 2022 (Shares in thousands, dollars in millions, except per share amounts) Basic Effect of Diluted Basic Effect of Diluted Shareholders' net income $ 1,408 $ 1,408 $ 2,757 $ 2,757 Shares: Weighted average 294,058 294,058 303,854 303,854 Common stock equivalents 3,073 3,073 3,663 3,663 Total shares 294,058 3,073 297,131 303,854 3,663 307,517 Earnings per share $ 4.79 $ (0.05) $ 4.74 $ 9.07 $ (0.10) $ 8.97 Nine Months Ended September 30, 2023 September 30, 2022 (Shares in thousands, dollars in millions, except per share amounts) Basic Effect of Diluted Basic Effect of Diluted Shareholders' net income $ 4,135 $ 4,135 $ 5,511 $ 5,511 Shares: Weighted average 294,752 294,752 312,434 312,434 Common stock equivalents 2,911 2,911 3,213 3,213 Total shares 294,752 2,911 297,663 312,434 3,213 315,647 Earnings per share $ 14.03 $ (0.14) $ 13.89 $ 17.64 $ (0.18) $ 17.46 Amounts reflected above for the three and nine months ended September 30, 2022 have been restated to reflect the impact of adopting amended accounting guidance for long-duration insurance contracts (discussed in Note 2 to the Consolidated Financial Statements). 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 September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Anti-dilutive options 0.9 — 0.9 1.3 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 7 – Debt The outstanding amounts of debt, net of issuance costs, discounts or premiums, and finance leases were as follows: (In millions) September 30, 2023 December 31, 2022 Short-term debt Commercial paper $ 1,513 $ — $17 million, 8.300% Notes due January 2023 — 17 $63 million, 7.650% Notes due March 2023 — 63 $700 million, Floating Rate Notes due July 2023 — 700 $1,000 million, 3.000% Notes due July 2023 — 994 $1,187 million, 3.750% Notes due July 2023 — 1,186 $500 million, 0.613% Notes due March 2024 500 — $1,000 million, 3.500% Notes due June 2024 994 — Other, including finance leases 39 33 Total short-term debt $ 3,046 $ 2,993 Long-term debt $500 million, 0.613% Notes due March 2024 $ — $ 499 $1,000 million, 3.500% Notes due June 2024 — 990 $900 million, 3.250% Notes due April 2025 (1) 871 872 $2,200 million, 4.125% Notes due November 2025 2,197 2,195 $1,500 million, 4.500% Notes due February 2026 1,502 1,503 $800 million, 1.250% Notes due March 2026 798 797 $700 million, 5.685% Notes due March 2026 697 — $1,500 million, 3.400% Notes due March 2027 1,448 1,436 $259 million, 7.875% Debentures due May 2027 259 259 $600 million, 3.050% Notes due October 2027 597 597 $3,800 million, 4.375% Notes due October 2028 3,787 3,785 $1,500 million, 2.400% Notes due March 2030 1,492 1,492 $1,500 million, 2.375% Notes due March 2031 (1) 1,359 1,380 $45 million, 8.080% Step Down Notes due January 2033 (2) 45 45 $800 million, 5.400% Notes due March 2033 794 — $190 million, 6.150% Notes due November 2036 190 190 $2,200 million, 4.800% Notes due August 2038 2,193 2,192 $750 million, 3.200% Notes due March 2040 743 743 $121 million, 5.875% Notes due March 2041 119 119 $448 million, 6.125% Notes due November 2041 487 488 $317 million, 5.375% Notes due February 2042 315 315 $1,500 million, 4.800% Notes due July 2046 1,466 1,466 $1,000 million, 3.875% Notes due October 2047 989 989 $3,000 million, 4.900% Notes due December 2048 2,969 2,968 $1,250 million, 3.400% Notes due March 2050 1,237 1,236 $1,500 million, 3.400% Notes due March 2051 1,478 1,478 Other, including finance leases 62 66 Total long-term debt $ 28,094 $ 28,100 (1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 11 in the Company's 2022 Form 10-K for further information about the Company's interest rate risk management and these derivative instruments. (2) Interest rate step down to 8.080% effective January 15, 2023. Long-term debt Debt Issuance. On March 7, 2023, the Company issued $1.5 billion of new senior notes. The proceeds of this issuance were used for general corporate purposes, and included repayment of outstanding debt securities. Interest on this debt is paid semi-annually. Principal Maturity Date Interest Rate Net Proceeds $700 million (1) March 15, 2026 5.685% $698 million $800 million (2) March 15, 2033 5.400% $796 million (1) Redeemable at any time discounted at the U.S. Treasury rate plus 20 basis points. Redeemable at par on or after March 15, 2024. (2) Redeemable at any time discounted at the U.S. Treasury rate plus 25 basis points. Redeemable at par on or after December 15, 2032. Short-term and Credit Facilities Debt Revolving Credit Agreements. Our revolving credit agreements provide us with the ability to borrow amounts for general corporate purposes, including providing liquidity support if necessary under our commercial paper program discussed below. As of September 30, 2023, there were no outstanding balances under these revolving credit agreements. In April 2023, The Cigna Group entered into the following revolving credit agreements (the "Credit Agreements"): • a $4.0 billion five-year revolving credit and letter of credit agreement that will mature in April 2028 with an option to extend the maturity date for additional one-year periods, subject to consent of the banks. The Company can borrow up to $4.0 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 364-day revolving credit agreement that will mature in April 2024. The Company 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 both 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 the Company's senior unsecured credit ratings. Each of the two facilities is diversified among 21 large commercial banks, all of which had an A- equivalent or higher rating by at least one Nationally Recognized Statistical Rating Organization ("NRSRO") as of September 30, 2023. 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 weighted average interest rate of our commercial paper was 5.50% at September 30, 2023. Debt Covenants. The Company was in compliance with its debt covenants as of September 30, 2023. Interest Expense Interest expense on corporate financing was $353 million for the three months ended and $1,048 million for the nine months ended September 30, 2023, compared with $317 million for the three months ended and $947 million for the nine months ended September 30, 2022. |
Common and Preferred Stock
Common and Preferred Stock | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Common and Preferred Stock | Note 8 – Common and Preferred Stock Dividends During the first nine months of 2023, The Cigna Group declared quarterly cash dividends of $1.23 per share of the Company's common stock. During the first nine months of 2022, The Cigna Group declared quarterly cash dividends of $1.12 per share of the Company's common stock. The following table provides details of the Company's dividend payments: Record Date Payment Date Amount per Share Total Amount Paid (in millions) 2023 March 8, 2023 March 23, 2023 $1.23 $368 June 7, 2023 June 22, 2023 $1.23 $362 September 6, 2023 September 21, 2023 $1.23 $362 2022 March 9, 2022 March 24, 2022 $1.12 $357 June 8, 2022 June 23, 2022 $1.12 $352 September 7, 2022 September 22, 2022 $1.12 $341 On October 25, 2023, the Board of Directors declared the fourth quarter cash dividend of $1.23 per share of The Cigna Group common stock to be paid on December 21, 2023 to shareholders of record on December 6, 2023. The Company 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 The Cigna Group 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 may deem relevant. |
Insurance and Contractholder Li
Insurance and Contractholder Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Insurance Loss Reserves [Abstract] | |
Insurance and Contractholder Liabilities | Insurance and Contractholder Liabilities A. Account Balances – Insurance and Contractholder Liabilities The Company's insurance and contractholder liabilities were comprised of the following: September 30, 2023 December 31, 2022 September 30, 2022 (In millions) Current Non-current Total Current Non-current Total Total Unpaid claims and claim expenses Cigna Healthcare $ 5,240 $ 77 $ 5,317 $ 4,117 $ 59 $ 4,176 $ 4,250 Other Operations 105 169 274 107 177 284 280 Future policy benefits Cigna Healthcare 64 526 590 43 544 587 593 Other Operations 164 3,216 3,380 150 3,442 3,592 3,610 Contractholder deposit funds Cigna Healthcare 12 139 151 14 157 171 181 Other Operations 364 6,243 6,607 351 6,358 6,709 6,747 Market risk benefits 41 893 934 51 1,217 1,268 1,337 Unearned premiums 1,362 23 1,385 576 22 598 1,283 Total insurance and contractholder liabilities $ 7,352 $ 11,286 $ 18,638 $ 5,409 $ 11,976 $ 17,385 $ 18,281 Insurance and contractholder liabilities expected to be paid within one year are classified as current. The Company adopted amended accounting guidance for long-duration insurance contracts on January 1, 2023, discussed further in Note 2 to the Consolidated Financial Statements, which resulted in restatement of prior period amounts. Additionally, see below updated accounting policies and incremental disclosures associated with future policy benefits (Note 9C), contractholder deposit funds (Note 9D), and market risk benefits (Note 9E). The total of incurred but not reported liabilities plus expected development on reported claims, including reported claims in process, was $5.0 billion at September 30, 2023 and $4.0 billion at September 30, 2022. Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment was as follows: Nine Months Ended (In millions) September 30, 2023 September 30, 2022 Beginning balance $ 4,176 $ 4,261 Less: Reinsurance and other amounts recoverable 221 261 Beginning balance, net 3,955 4,000 Incurred costs related to: Current year 26,788 23,431 Prior years (237) (278) Total incurred 26,551 23,153 Paid costs related to: Current year 22,053 19,655 Prior years 3,362 3,450 Total paid 25,415 23,105 Ending balance, net 5,091 4,048 Add: Reinsurance and other amounts recoverable 226 202 Ending balance $ 5,317 $ 4,250 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 to the Consolidated Financial Statements 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 were as follows: Nine Months Ended September 30, 2023 September 30, 2022 (Dollars in millions) $ % (1) $ % (2) Actual completion factors $ 45 0.2 % $ 81 0.3 % Medical cost trend 192 0.6 197 0.6 Total favorable variance $ 237 0.8 % $ 278 0.9 % (1) Percentage of current year incurred costs as reported for the year ended December 31, 2022. (2) Percentage of current year incurred costs as reported for the year ended December 31, 2021. Favorable prior year development in both years reflects lower than expected utilization of medical services as compared to our assumptions. Accounting Policy. Future policy benefits represent the present value of estimated future obligations, estimated using actuarial methods, for long-duration insurance policies and annuity products currently in force, consisting primarily of reserves for annuity contracts, life insurance benefits, and certain supplemental health products that are guaranteed renewable beyond one year. Contracts are grouped at a level no higher than issue year, based on the original contract issue date, and at lower levels of disaggregation within each issue year for certain businesses to reflect factors including product type, plan type and currency. Management estimates these obligations based on assumptions for premiums, interest rates, mortality or morbidity, future claim adjudication expenses and surrenders. Mortality, morbidity and surrender assumptions are based on the Company's own experience and published actuarial tables, and are updated at least annually, to the extent changes in circumstances require. Interest rate assumptions are based on market-level yields for low credit risk fixed income instruments ("upper-medium grade fixed income instrument"). For interest accretion purposes, interest rates are fixed at the year of the cohort's inception, however for purposes of liability measurement, are updated to the current rate quarterly, with all changes in the interest rate from inception to current period reported through Accumulated other comprehensive loss. For contracts issued domestically, we use observable inputs from a published spot rate curve for terms up to 30 years and extrapolate for longer terms using a constant forward rate approach. For contracts issued by foreign operating entities with functional currencies other than the U.S. dollar, we use observable inputs to approximate a risk free rate and add a credit spread adjustment to align with a low credit risk fixed income instrument. For terms beyond the last observable risk free rates, which vary by international market, we extrapolate to the ultimate forward rate assuming a constant credit spread. For the annuity business, the premium paying period is shorter than the benefit coverage period, and a deferred profit liability ("DPL") is reported in future policy benefits representing gross premium received in excess of net premiums. DPL is amortized based on expected future benefit payments. Cigna Healthcare The weighted average interest rates applied and duration for future policy benefits in the Cigna Healthcare segment, consisting primarily of supplemental health products including individual Medicare supplement, limited benefit health products and individual private medical insurance, were as follows: As of September 30, 2023 September 30, 2022 Interest accretion rate 2.85 % 2.34 % Current discount rate 6.03 % 5.67 % Weighted average duration 7.0 years 7.5 years The net liability for future policy benefits for the segment's supplemental health products represents the present value of benefits expected to be paid to policyholders, net of the present value of expected net premiums, which is the portion of expected future gross premium expected to be collected from policyholders that is required to provide for all expected future benefits and expenses. The present values of expected net premiums and expected future policy benefits for the Cigna Healthcare segment are as follows: Nine Months Ended (In millions) September 30, 2023 September 30, 2022 Present value of expected net premiums Beginning balance $ 8,557 $ 9,314 Reversal of effect of beginning of period discount rate assumptions 1,537 (367) Effect of assumption changes and actual variances from expected experience (1) 314 1,101 Issuances and lapses 822 718 Net premiums collected (1,019) (956) Interest and other (2) 58 44 Ending balance at original discount rate 10,269 9,854 Effect of end of period discount rate assumptions (1,681) (1,576) Ending balance (3) $ 8,588 $ 8,278 Present value of expected policy benefits Beginning balance $ 8,945 $ 9,794 Reversal of effect of discount rate assumptions 1,611 (379) Effect of assumption changes and actual variances from expected experience (1) 112 1,006 Issuances and lapses 902 827 Benefit payments (1,017) (1,081) Interest and other (2) 184 161 Ending balance at original discount rate 10,737 10,328 Effect of discount rate assumptions (1,765) (1,652) Ending balance (4) $ 8,972 $ 8,676 Liability for future policy benefits $ 384 $ 398 Other (5) 206 195 Total liability for future policy benefits (6) $ 590 $ 593 (1) Includes the effect of actual variances from expectations, which (decreased)/increased the total liability for future policy benefits by $(12) million and $58 million, respectively, for the nine months ended September 30, 2023 and September 30, 2022. (2) Includes the foreign exchange rate impact of translating from transactional and functional currency to United States dollar and the impact of flooring the liability at zero. The flooring impact is calculated at the cohort level after discounting the reserves at the current discount rate. (3) As of September 30, 2023 and September 30, 2022, respectively, undiscounted expected future gross premiums were $18.5 billion and $17.1 billion. As of September 30, 2023 and September 30, 2022, respectively, discounted expected future gross premiums were $12.5 billion and $11.8 billion. (4) As of September 30, 2023 and September 30, 2022, respectively, undiscounted expected future policy benefits were $13.1 billion and $12.4 billion. (5) The liability for future policyholder benefits includes immaterial businesses shown as reconciling items above, most of which are in run-off. (6) $154 million and $156 million of reinsurance recoverable asset reported in the Consolidated Balance Sheets as of September 30, 2023 and September 30, 2022, respectively, relate to the liability for future policy benefits. Other Operations The weighted average interest rates applied and duration for future policy benefits in Other Operations, consisting of annuity and life insurance products, were as follows: As of September 30, 2023 September 30, 2022 Interest accretion rate 5.64 % 5.64 % Current discount rate 5.73 % 5.28 % Weighted average duration 10.9 years 11.8 years Obligations for annuities represent discounted periodic benefits to be paid to an individual or groups of individuals over their remaining lives. Other Operations ' traditional insurance contracts, which are in run-off, have no premium remaining to be collected; Future policy benefits for Other Operations includes DPL of $390 million as of September 30, 2023 and $380 million as of September 30, 2022. Future policy benefits excluding DPL were $3.0 billion as of September 30, 2023, $3.2 billion as of each of December 31, 2022 and September 30, 2022, and $4.3 billion as of December 31, 2021. These balances exclude amounts classified as Liabilities of businesses held for sale of $3.8 billion as of December 31, 2021. The change in future policy benefits reserves year-to-date was primarily driven by changes in the current discount rate. Undiscounted expected future policy benefits were $4.5 billion as of September 30, 2023 and $4.7 billion as of September 30, 2022. As of September 30, 2023 and September 30, 2022, $1.0 billion and $1.1 billion of the future policy benefit reserve was recoverable through treaties with external reinsurers. Accounting Policy. Liabilities for contractholder deposit funds primarily include deposits received from customers for investment-related and universal life products as well as investment earnings on their fund balances in Other Operations. These liabilities are adjusted to reflect administrative charges and, for universal life fund balances, mortality charges. Interest credited on these funds is accrued ratably over the contract period. Accounting Policy. Variable annuity reinsurance liabilities are measured as MRBs at fair value, net of nonperformance risk, with fluctuations in value gross of reinsurer nonperformance risk reported in benefit expenses while fluctuations in the Company's own nonperformance risk (own credit risk) are reported in Accumulated other comprehensive loss. Nonperformance risk reflects risk that a party might default and therefore not fulfill its obligations (i.e. nonpayment risk). The nonperformance risk adjustment reflects a market participant's view of nonpayment risk by adding an additional spread to the discount rate in the calculation of both (a) the variable annuity reinsurance liabilities to be paid by the Company and (b) the variable annuity reinsurance assets to be paid by the reinsurers, after considering collateral. The Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy described in Note 12 to the Consolidated Financial Statements because assumptions related to future annuitant behavior are largely unobservable. As discussed further in Note 10 to the Consolidated Financial Statements, due to the reinsurance agreements covering these liabilities, the liabilities do not generally impact net income except for the change in nonperformance risk on the reinsurance recoverable, which is reported in benefit expenses and does not offset the nonperformance risk valuation on the liability. Variable annuity liabilities are established using capital market assumptions and assumptions related to future annuitant behavior (including mortality, lapse and annuity election rates). Market risk benefits activity was as follows: Nine Months Ended (In millions) September 30, 2023 September 30, 2022 Balance, beginning of year $ 1,268 $ 1,824 Balance, beginning of year, before the effect of nonperformance risk (own credit risk) 1,379 1,949 Changes due to expected run-off (15) (44) Changes due to capital markets versus expected (352) (510) Changes due to policyholder behavior versus expected (1) (4) Assumption changes (16) 65 Balance, end of period, before the effect of changes in nonperformance risk (own credit risk) 995 1,456 Nonperformance risk (own credit risk), end of period (61) (119) Balance, end of period $ 934 $ 1,337 Reinsured market risk benefit, end of period $ 993 $ 1,450 The following table presents the net amount at risk and the average attained age of contractholders (weighted by exposure) for contracts assumed by the Company. The net amount at risk is the amount the Company would have to pay to contractholders if all deaths or annuitizations occurred as of the earliest possible date in accordance with the insurance contract. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded, as discussed further in Note 10 to the Consolidated Financial Statements. (Dollars in millions, excludes impact of reinsurance ceded) September 30, 2023 September 30, 2022 Net amount at risk $ 1,986 $ 2,881 Average attained age of contractholders (weighted by exposure) 75.9 years 74.0 years |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2023 | |
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 primarily for expected credit losses. The Company's reinsurance recoverables as of September 30, 2023 are presented at amount due by range of external credit rating and collateral level in the following table, with reinsurance recoverables that are market risk benefits separately presented at fair value: (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) $ — $ — $ 86 $ 86 BBB- to BBB+ equivalent current credit ratings (1) — — 59 59 Not rated 157 3 119 279 Total recoverables related to ongoing operations 157 3 264 424 Acquisition, disposition or run-off activities BBB+ equivalent and higher current ratings (1) Lincoln National Life and Lincoln Life & Annuity of New York — 2,690 — 2,690 Empower Annuity Insurance Company — — 130 130 Prudential Insurance Company of America 364 — — 364 Life Insurance Company of North America — 372 — 372 Other 173 21 15 209 Not rated — 7 4 11 Total recoverables related to acquisition, disposition or run-off activities 537 3,090 149 3,776 Total reinsurance recoverables before market risk benefits $ 694 $ 3,093 $ 413 $ 4,200 Allowance for uncollectible reinsurance (35) Market risk benefits (4) 993 Total reinsurance recoverables (2) $ 5,158 (1) Certified by a NRSRO. (2) Includes $238 million of current reinsurance recoverables that are reported in Other current assets. (3) Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level. (4) Total Berkshire and certain Other recoverables reflected under acquisition, disposition or run-off activities in the Company's 2022 Form 10-K that relate to the Company's variable annuity reinsurance products discussed in section B below are now reported at fair market value as MRBs, as further discussed in Note 9 to the Consolidated Financial Statements. At December 31, 2022, we reported $711 million of recoverables related to the GMDB variable annuity reinsurance product. The restated December 31, 2022 variable annuity reinsurance recoverable balance is $1.4 billion, which also includes the GMIB variable annuity reinsurance product that was classified in Other assets prior to the adoption of LDTI. 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. (In millions) Reinsurer (1) September 30, 2023 December 31, 2022 Collateral and Other Terms at September 30, 2023 Berkshire $ 810 $ 1,116 90% were secured by assets in a trust. Sun Life Assurance Company of Canada 81 115 Liberty Re (Bermuda) Ltd. 94 128 100% were secured by assets in a trust. SCOR SE 29 39 85% were secured by a letter of credit. Market risk benefits (2) $ 1,014 $ 1,398 (1) All reinsurers are rated A- equivalent and higher by an NRSRO. (2) Includes IBNR and outstanding claims of $21 million. These amounts are excluded from market risk benefits at September 30, 2023 in Note 9 and Note 10A to the Consolidated Financial Statements. At December 31, 2022, IBNR and outstanding claims of $27 million offset by premium due of $3 million were excluded from the market risk benefits as restated due to the adoption of LDTI. The impact of nonperformance risk (i.e. the risk that a counterparty might default) on the variable annuity reinsurance asset was immaterial for the three and nine months ended September 30, 2023 and September 30, 2022. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments [Abstract] | |
Investments | Note 11 – InvestmentsThe Cigna Group'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 to the Consolidated Financial Statements 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 in the Company's 2022 Form 10-K. The following table summarizes the Company's investments by category and current or long-term classification: September 30, 2023 December 31, 2022 (In millions) Current Long-term Total Current Long-term Total Debt securities $ 612 $ 8,927 $ 9,539 $ 654 $ 9,218 $ 9,872 Equity securities 31 3,345 3,376 45 577 622 Commercial mortgage loans 215 1,402 1,617 67 1,547 1,614 Policy loans — 1,224 1,224 — 1,218 1,218 Other long-term investments — 4,076 4,076 — 3,728 3,728 Short-term investments 188 — 188 139 — 139 Total $ 1,046 $ 18,974 $ 20,020 $ 905 $ 16,288 $ 17,193 Accounting policy. Our accounting policy for debt securities (including bonds, mortgage and other asset-backed securities and preferred stocks redeemable by the investor) remains materially consistent with the policy disclosed in the Company's 2022 Form 10-K. However, with the adoption of amended accounting guidance for long-duration insurance contracts on January 1, 2023 (discussed in Note 2 to the Consolidated Financial Statements), net unrealized appreciation on debt securities supporting the Company's run-off settlement annuity business is no longer reported in Non-current insurance and contractholder liabilities but rather is reported in Accumulated other comprehensive loss. See Note 14 to the Consolidated Financial Statements for the retrospectively restated Accumulated other comprehensive loss. The amortized cost and fair value by contractual maturity periods for debt securities were as follows as of September 30, 2023: (In millions) Amortized Fair Due in one year or less $ 657 $ 631 Due after one year through five years 3,983 3,710 Due after five years through ten years 3,306 2,914 Due after ten years 2,294 1,938 Mortgage and other asset-backed securities 394 346 Total $ 10,634 $ 9,539 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 September 30, 2023 Federal government and agency $ 278 $ — $ 19 $ (14) $ 283 State and local government 41 — — (3) 38 Foreign government 373 — 4 (21) 356 Corporate 9,548 (45) 50 (1,037) 8,516 Mortgage and other asset-backed 394 — — (48) 346 Total $ 10,634 $ (45) $ 73 $ (1,123) $ 9,539 December 31, 2022 Federal government and agency $ 292 $ — $ 32 $ (12) $ 312 State and local government 43 — — (2) 41 Foreign government 375 — 11 (21) 365 Corporate 9,742 (44) 89 (981) 8,806 Mortgage and other asset-backed 390 — 1 (43) 348 Total $ 10,842 $ (44) $ 133 $ (1,059) $ 9,872 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. Unrealized depreciation on these debt securities is primarily due to declines in fair value resulting from increasing interest rates since these securities were purchased. September 30, 2023 December 31, 2022 (Dollars in millions) Fair Amortized Unrealized Number Fair Amortized Unrealized Number One year or less Investment grade $ 1,679 $ 1,746 $ (67) 589 $ 5,533 $ 6,127 $ (594) 1,659 Below investment grade 283 291 (8) 1,094 887 964 (77) 1,287 More than one year Investment grade 5,262 6,200 (938) 1,646 1,151 1,487 (336) 462 Below investment grade 774 884 (110) 859 330 382 (52) 369 Total $ 7,998 $ 9,121 $ (1,123) 4,188 $ 7,901 $ 8,960 $ (1,059) 3,777 Equity Securities The following table provides the values of the Company's equity security investments as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (In millions) Cost Carrying Value Cost Carrying Value Equity securities with readily determinable fair values $ 662 $ 53 $ 673 $ 138 Equity securities with no readily determinable fair value 3,217 3,323 380 484 Total $ 3,879 $ 3,376 $ 1,053 $ 622 In 2023, we became a minority owner in VillageMD by investing $2.7 billion in VillageMD preferred equity. VillageMD is a provider of primary, multi-specialty and urgent care services that is majority-owned by Walgreens Boots Alliance, Inc. These securities are included in Equity securities with no readily determinable fair value in the above table. A compounding dividend of 5.5% accrues annually on $2.2 billion of our cost basis in these shares. Consistent with our strategy to invest in targeted startup and growth-stage companies in the health care industry, approximately 95% of our investments in equity securities are in the health care sector. The following table summarizes the credit risk profile of the Company's commercial mortgage loan portfolio: (Dollars in millions) September 30, 2023 December 31, 2022 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% $ 909 2.18 $ 901 2.12 60% to 79% 542 1.80 564 1.73 80% to 100% 166 1.48 149 1.17 Total $ 1,617 1.97 62 % $ 1,614 1.89 60 % 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) September 30, 2023 December 31, 2022 Real estate investments $ 1,511 $ 1,319 Securities partnerships 2,360 2,166 Other 205 243 Total $ 4,076 $ 3,728 Accounting policy. Realized investment gains and losses are based on specifically identified assets and result from sales, investment asset write-downs, change in the fair value of certain derivatives and equity securities and changes in allowances for credit losses on debt securities and commercial mortgage loan investments. With the adoption of amended accounting guidance for long-duration insurance contracts on January 1, 2023 (discussed in Note 2 to the Consolidated Financial Statements), realized investment gains and losses no longer exclude amounts that were previously required to adjust future policy benefits for the run-off settlement annuity business. Prior period net realized investment losses have been updated to reflect the impact of adopting LDTI. The following realized gains and losses on investments exclude 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 September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Net realized investment (losses) gains, excluding credit loss expense and asset write-downs $ (9) $ (67) $ (29) $ (454) Credit loss (expense) (5) (15) (3) (39) Other investment asset write-downs — — (12) — Net realized investment (losses), before income taxes $ (14) $ (82) $ (44) $ (493) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
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 liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset's or a liability's classification is based on the lowest level of input that is significant to its measurement. For example, a financial asset or liability carried at fair value would be classified in Level 3 if unobservable inputs were significant to the instrument's fair value, even though the measurement may be derived using inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The following table provides information about the Company's financial assets and liabilities carried at fair value. Further information regarding insurance assets and liabilities carried at fair value is provided in Note 9E to the Consolidated Financial Statements. 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 contractholders: (In millions) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Financial assets at fair value Debt securities Federal government and agency $ 146 $ 147 $ 137 $ 165 $ — $ — $ 283 $ 312 State and local government — — 38 41 — — 38 41 Foreign government — — 356 365 — — 356 365 Corporate — — 8,125 8,394 391 412 8,516 8,806 Mortgage and other asset-backed — — 303 313 43 35 346 348 Total debt securities 146 147 8,959 9,278 434 447 9,539 9,872 Equity securities (1) 3 6 48 132 2 — 53 138 Short-term investments — — 188 139 — — 188 139 Derivative assets — — 193 230 — 1 193 231 (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. Additionally, as discussed in Note 9E to the Consolidated Financial Statements, the Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy. 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. The range and weighted average basis point 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) September 30, 2023 December 31, 2022 Unobservable Input September 30, 2023 September 30, 2023 December 31, 2022 Debt securities Corporate $ 391 $ 412 Liquidity 60 - 1060 (300) bps 60 - 1060 (270) bps Mortgage and other asset-backed securities 43 35 Liquidity 120 - 595 (300) bps 105 - 520 (310) bps Total Level 3 debt securities $ 434 $ 447 An 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. 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 For the Nine Months Ended (In millions) 2023 2022 2023 2022 Debt and Equity Securities Beginning balance $ 454 $ 512 $ 447 $ 796 (Losses) gains included in Shareholders' net income (1) 4 (1) 14 Losses included in Other comprehensive (loss) income (5) (11) (5) (62) Purchases, sales and settlements Purchases 6 81 10 157 Settlements (5) (54) (32) (206) Total purchases, sales and settlements 1 27 (22) (49) Transfers into/(out of) Level 3 Transfers into Level 3 — 6 71 124 Transfers out of Level 3 (13) (34) (54) (319) Total transfers into/(out of) Level 3 (13) (28) 17 (195) Ending balance $ 436 $ 504 $ 436 $ 504 Total losses included in Shareholders' net income attributable to instruments held at the reporting date $ (1) $ — $ (1) $ (2) Change in unrealized gain or (loss) included in Other comprehensive (loss) income for assets held at the end of the reporting period $ (4) $ (33) $ (9) $ (60) 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 losses and Net investment income. Gains and losses included in Other comprehensive (loss) income, 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. Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company's best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Market activity typically decreases during periods of economic uncertainty and this decrease in activity reduces the availability of market observable data. As a result, the level of unobservable judgment that must be applied to the pricing of certain instruments increases and is typically observed through the widening of liquidity spreads. Transfers between Level 2 and Level 3 during 2023 and 2022 primarily reflected changes in liquidity estimates for certain private placement issuers across several sectors. See discussion under Quantitative Information about Unobservable Inputs above for more information. 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. The separate account activity for the nine months ended September 30, 2023 and 2022 was primarily driven by changes in the market values of the underlying separate account investments. Fair values of Separate account assets were as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (In millions) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Guaranteed separate accounts (See Note 16) $ 210 $ 203 $ 342 $ 382 $ — $ — $ 552 $ 585 Non-guaranteed separate accounts (1) 151 211 5,435 5,522 204 203 5,790 5,936 Subtotal $ 361 $ 414 $ 5,777 $ 5,904 $ 204 $ 203 6,342 6,521 Non-guaranteed separate accounts priced at net asset value ("NAV") as a practical expedient (1) 686 757 Total $ 7,028 $ 7,278 (1) Non-guaranteed separate accounts include $3.8 billion as of September 30, 2023 and $4.0 billion as of December 31, 2022 in assets supporting the Company's pension plans, including $0.2 billion classified in Level 3 as of September 30, 2023 and December 31, 2022. Separate account assets classified in Level 3 primarily support the Company'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 and nine months ended September 30, 2023 or 2022. 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 Company's pension plans. The following table provides additional information on these investments: Fair Value as of Unfunded Commitment as of September 30, 2023 Redemption Frequency Redemption Notice (In millions) September 30, 2023 December 31, 2022 Securities partnerships $ 416 $ 451 $ 204 Not applicable Not applicable Real estate funds 266 302 — Quarterly 30 - 90 days Hedge funds 4 4 — Up to annually, varying by fund 30 - 90 days Total $ 686 $ 757 $ 204 As of September 30, 2023, 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 nine months ended September 30, 2023 and 2022, impairments recognized requiring these assets to be measured at fair value were not material. Realized investment gains and losses from these observable price changes for the three and nine months ended September 30, 2023 and September 30, 2022 were not material. The following table includes the Company's financial instruments not recorded at fair value but for which fair value disclosure is required. In addition to universal life products and finance leases, financial instruments that are carried in the Company's Consolidated Balance Sheets at amounts that approximate fair value are excluded from the following table: Classification in Fair Value Hierarchy September 30, 2023 December 31, 2022 (In millions) Fair Value Carrying Value Fair Value Carrying Value Commercial mortgage loans Level 3 $ 1,470 $ 1,617 $ 1,491 $ 1,614 Long-term debt, including current maturities, excluding finance leases Level 2 $ 26,225 $ 29,526 $ 28,653 $ 30,994 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 or December 31, 2022. 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 2022 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. The Company's maximum exposure to loss from securities limited partnerships and real estate limited partnerships is $5.1 billion as of September 30, 2023 compared to $4.8 billion as of December 31, 2022 and the maximum exposure from real estate joint ventures is $0.9 billion as of September 30, 2023 compared to $0.6 billion as of December 31, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2023 | |
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 (depreciation) appreciation on securities and derivatives, change in discount rate and instrument specific credit risk for certain long-duration insurance contractholder liabilities (Note 9 to the Consolidated Financial Statements), 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. Shareholders' other comprehensive (loss) income, net of tax, for both the three and nine months ended September 30, 2023 and 2022, is primarily driven by the change in discount rates for certain long-duration liabilities and unrealized changes in the market values of securities and derivatives, including the impacts from unconsolidated entities reported on the equity method. Changes in the components of AOCI, including the restatement for amended accounting guidance for long-duration insurance contracts (discussed in Note 2 to the Consolidated Financial Statements), are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Securities and Derivatives Beginning balance, as retrospectively restated $ (118) $ (247) $ (332) $ 1,266 Unrealized (depreciation) appreciation on securities and derivatives (257) (325) 2 (2,259) Tax benefit (expense) 57 (7) (9) 393 Net unrealized (depreciation) on securities and derivatives (200) (332) (7) (1,866) Reclassification adjustment for losses included in Shareholders' net income ((Loss) gain on sale of businesses) — 171 — 171 Reclassification adjustment for losses included in Shareholders' net income (Net realized investment losses) 12 14 38 41 Reclassification adjustment for (gains) included in Shareholders' net income (Selling, general and administrative expenses) (1) — (1) — Reclassification adjustment for tax (benefit) included in Shareholders' net income (3) (3) (8) (9) Net losses reclassified from AOCI to Shareholders' net income 8 182 29 203 Other comprehensive (loss) income, net of tax (192) (150) 22 (1,663) Ending balance $ (310) $ (397) $ (310) $ (397) Net long-duration insurance and contractholder liabilities measurement adjustments (1) Beginning balance $ (704) $ (300) $ (256) $ (765) Current period change in discount rate for certain long-duration liabilities (27) (55) (585) 549 Tax benefit (expense) 12 23 149 (98) Net current period change in discount rate for certain long-duration liabilities (15) (32) (436) 451 Current period change in instrument-specific credit risk for market risk benefits (17) 16 (50) (6) Tax benefit (expense) 4 (3) 10 1 Net current period change in instrument-specific credit risk for market risk benefits (13) 13 (40) (5) Other comprehensive (loss) income, net of tax (28) (19) (476) 446 Ending balance $ (732) $ (319) $ (732) $ (319) Translation of foreign currencies Beginning balance, as retrospectively restated $ (157) $ (500) $ (154) $ (233) Translation of foreign currencies (31) (90) (36) (332) Tax benefit (expense) 2 — 4 (28) Net translation of foreign currencies (29) (90) (32) (360) Reclassification adjustment for losses included in Net income ((Loss) gain on sale of businesses) — 236 — 236 Reclassification adjustment for tax expense included in Net income — 29 — 29 Net translation losses reclassified from AOCI to Net income — 265 — 265 Translation of foreign currencies (31) 146 (36) (96) Tax benefit 2 29 4 1 Other comprehensive (loss) income, net of tax (29) 175 (32) (95) Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests — 1 — (2) Shareholders' other comprehensive (loss) income, net of tax (29) 174 (32) (93) Ending balance $ (186) $ (326) $ (186) $ (326) Postretirement benefits liability Beginning balance $ (899) $ (1,296) $ (916) $ (1,336) Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (Interest expense and other) 11 17 35 50 Reclassification adjustment for (gains) included in Shareholders' net income ((Loss) gain on sale of businesses) — (2) — (2) Reclassification adjustment for tax (benefit) included in Shareholders' net income (3) (5) (9) (12) Net adjustments reclassified from AOCI to Shareholders' net income 8 10 26 36 Valuation update — — (2) 18 Tax benefit (expense) — — 1 (4) Net change due to valuation update — — (1) 14 Other comprehensive income, net of tax 8 10 25 50 Ending balance $ (891) $ (1,286) $ (891) $ (1,286) Total Accumulated other comprehensive loss Beginning balance, as retrospectively restated $ (1,878) $ (2,343) $ (1,658) $ (1,068) Shareholders' other comprehensive (loss) income, net of tax (241) 15 (461) (1,260) Ending balance $ (2,119) $ (2,328) $ (2,119) $ (2,328) (1) Established upon the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 15 – Income Taxes Income Tax Expense The 21.3% effective tax rate for the three months ended September 30, 2023 was higher than the 20.4% rate for the three months ended September 30, 2022, primarily as a result of increases for the remeasurement of deferred tax liabilities and the Medicare Advantage litigation settlement, partially offset by favorable results relative to the Company's foreign operations. The 19.9% effective tax rate for the nine months ended September 30, 2023 is lower than the 21.0% rate for the nine months ended September 30, 2022. The decrease is driven largely by favorable results relative to the Company's foreign operations and the release of uncertain tax positions resulting from favorable audit developments, partially offset by an increase for the remeasurement of deferred tax liabilities. |
Contingencies and Other Matters
Contingencies and Other Matters | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Other Matters | Note 16 – 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 September 30, 2023, employers maintained assets that generally exceeded the benefit obligations under these arrangements of approximately $420 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 September 30, 2023. 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 September 30, 2023 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 September 30, 2023. 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 nine months ended September 30, 2023. 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 Litigation Matters Express Scripts Litigation with Elevance . In March 2016, Elevance 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. Elevance also requested that the court enter declaratory judgment that Express Scripts is required to provide Elevance competitive benchmark pricing, that Elevance can terminate the agreement and that Express Scripts is required to provide Elevance with post-termination services at competitive benchmark pricing for one year following any termination by Elevance. Elevance claimed 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 Elevance and $150 million damages for service issues ("Elevance's Allegations"). On April 19, 2016, in response to Elevance's complaint, Express Scripts filed its answer denying Elevance's Allegations in their entirety and asserting affirmative defenses and counterclaims against Elevance. The court subsequently granted Elevance'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. Elevance 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 Elevance's pricing claims for damages totaling $14.8 billion and on most of Elevance's claims relating to service issues. Elevance's only remaining service claims relate to the review or processing of prior authorizations, with alleged damages over $100 million. On November 1, 2023, the parties signed a settlement agreement pursuant to which Express Scripts agreed to resolve the service-related claims. The settlement agreement is not an admission of liability or fault by Express Scripts, the Company or its subsidiaries. Following the settlement, Elevance would retain the right to appeal the pricing-related claims that were previously dismissed by the court, while Express Scripts would retain the ability to reassert its own pricing-related claims in the event any appeal by Elevance is successful. Medicare Advantage. A qui tam action that was filed by a private individual (the "relator") 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 was granted on August 2, 2022. On October 14, 2022, the DOJ filed its complaint-in-intervention alleging that certain diagnoses made during in-home exams were invalid for risk adjustment purposes, seeking unspecified damages and penalties under the federal False Claims Act. The Company's motion to dismiss the DOJ's complaint is fully briefed and pending before the court. The Company's motion to dismiss relator's complaint was denied as moot after relator asked for and was granted permission to amend his complaint. Relator filed an amended complaint on July 28, 2023, which the Company moved to dismiss on September 11, 2023. On September 29, 2023, the Company, the relator and the DOJ settled the matter for $37 million plus interest and attorney’s fees. 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 The Cigna Group, those investigations have resulted in litigation (see "Litigation Matters—Medicare Advantage" above). As part of these investigations, the Company responded to information requests (civil investigative demands) from the DOJ (U.S. Attorney's Office for the Eastern District of Pennsylvania) regarding its risk adjustment submissions. On September 29, 2023, the Company settled the DOJ’s investigation for approximately $135 million plus interest. In connection with this settlement and the settlement of the litigation (see "Litigation Matters—Medicare |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 17 – Segment Information See Note 1 to the Consolidated Financial Statements for a description of our segments. A description of our basis for reporting segment operating results is outlined below. Intersegment revenues primarily reflect pharmacy and care services transactions between the Evernorth Health Services 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. The Cigna Group'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 The Cigna Group'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 table presents the special items charges (benefits) recorded by the Company, as well as the respective financial statement line items impacted: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In millions) Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Charges (benefits) associated with litigation matters $ 201 $ 171 $ — $ — $ 201 $ 171 $ (28) $ (20) Loss (gain) on sale of businesses 21 19 (1,735) (1,388) 21 19 (1,735) (1,388) Integration and transaction-related costs 13 9 24 23 20 15 112 86 Charge for organizational efficiency plan — — — — — — 22 17 Total impact from special items $ 235 $ 199 $ (1,711) $ (1,365) $ 242 $ 205 $ (1,629) $ (1,305) (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended September 30, 2023 Revenues from external customers $ 37,230 $ 11,426 $ 71 $ — $ 48,727 Intersegment revenues 1,303 1,136 — (2,439) Net investment income 63 176 76 6 321 Total revenues 38,596 12,738 147 (2,433) 49,048 Net realized investment results from certain equity method investments — 30 — — 30 Adjusted revenues $ 38,596 $ 12,768 $ 147 $ (2,433) $ 49,078 Income (loss) before income taxes $ 1,272 $ 1,019 $ (3) $ (448) $ 1,840 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (44) — — — (44) Net realized investment losses (1) 1 35 8 — 44 Amortization of acquired intangible assets 443 11 — — 454 Special items Charges associated with litigation matters 44 157 — — 201 Loss on sale of businesses — — 21 — 21 Integration and transaction-related costs — — — 13 13 Pre-tax adjusted income (loss) from operations $ 1,716 $ 1,222 $ 26 $ (435) $ 2,529 (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended September 30, 2022 Revenues from external customers $ 34,670 $ 10,329 $ 78 $ — $ 45,077 Intersegment revenues 1,003 667 — (1,670) Net investment income 25 101 75 3 204 Total revenues 35,698 11,097 153 (1,667) 45,281 Net realized investment results from certain equity method investments — 80 — — 80 Adjusted revenues $ 35,698 $ 11,177 $ 153 $ (1,667) $ 45,361 Income (loss) before income taxes $ 1,200 $ 876 $ 1,755 $ (340) $ 3,491 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (17) (1) (4) — (22) Net realized investment losses (1) — 158 4 — 162 Amortization of acquired intangible assets 442 17 1 — 460 Special items (Gain) on sale of businesses — — (1,735) — (1,735) Integration and transaction-related costs — — — 24 24 Pre-tax adjusted income (loss) from operations $ 1,625 $ 1,050 $ 21 $ (316) $ 2,380 (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. (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Nine months ended September 30, 2023 Revenues from external customers $ 108,462 $ 34,581 $ 232 $ — $ 143,275 Intersegment revenues 4,343 3,143 — (7,486) Net investment income 175 454 230 17 876 Total revenues 112,980 38,178 462 (7,469) 144,151 Net realized investment results from certain equity method investments — 22 — — 22 Adjusted revenues $ 112,980 $ 38,200 $ 462 $ (7,469) $ 144,173 Income (loss) before income taxes $ 3,318 $ 3,252 $ 47 $ (1,292) $ 5,325 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (140) (2) — — (142) Net realized investment losses (1) — 64 2 — 66 Amortization of acquired intangible assets 1,330 38 — — 1,368 Special items Charges associated with litigation matters 44 157 — — 201 Loss on sale of businesses — — 21 — 21 Integration and transaction-related costs — — — 20 20 Pre-tax adjusted income (loss) from operations $ 4,552 $ 3,509 $ 70 $ (1,272) $ 6,859 (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Nine months ended September 30, 2022 Revenues from external customers $ 100,675 $ 31,411 $ 1,736 $ — $ 133,822 Intersegment revenues 3,421 1,815 — (5,236) Net investment income 51 545 344 3 943 Total revenues 104,147 33,771 2,080 (5,233) 134,765 Net realized investment results from certain equity method investments — 134 — — 134 Adjusted revenues $ 104,147 $ 33,905 $ 2,080 $ (5,233) $ 134,899 Income (loss) before income taxes $ 3,114 $ 2,953 $ 2,138 $ (1,166) $ 7,039 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (41) (2) (11) — (54) Net realized investment losses (1) — 542 85 — 627 Amortization of acquired intangible assets 1,329 89 1 — 1,419 Special items (Benefits) associated with litigation matters — — — (28) (28) (Gain) on sale of businesses — — (1,735) — (1,735) Integration and transaction-related costs — — — 112 112 Charge for organizational efficiency plan — — — 22 22 Pre-tax adjusted income (loss) from operations $ 4,402 $ 3,582 $ 478 $ (1,060) $ 7,402 (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. Prior period amounts have been retrospectively adjusted to reflect adoption of amended accounting guidance for long-duration insurance contracts, as discussed in Note 2 to the Consolidated Financial Statements. The following table presents these revenues by product, premium and service type: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Products (Pharmacy revenues) (ASC 606) Network revenues $ 16,926 $ 16,583 $ 49,080 $ 48,221 Home delivery and specialty revenues 16,324 15,583 48,943 45,550 Other revenues 2,390 1,630 6,506 5,009 Intercompany eliminations (1,109) (1,034) (3,890) (3,349) Total pharmacy revenues 34,531 32,762 100,639 95,431 Insurance premiums (ASC 944) Cigna Healthcare U.S. Commercial (1) Insured 4,144 3,821 12,315 11,312 Stop loss 1,548 1,384 4,565 4,053 Other 362 353 1,095 1,065 U.S. Government (1) Medicare Advantage 2,189 1,949 6,605 6,080 Medicare Part D 224 240 984 986 Other Short-duration (Individual and family plans) 1,266 697 3,767 2,014 Long-duration (2) (Individual Medicare supplement and limited benefit health products) 344 332 1,015 993 International Health Short-duration (Group medical insurance) 743 655 2,174 1,911 Long-duration (2) (Individual private medical insurance) 91 77 266 235 Total Cigna Healthcare 10,911 9,508 32,786 28,649 Divested International businesses — — — 1,500 Other 70 76 225 219 Intercompany eliminations 17 2 51 — Total premiums 10,998 9,586 33,062 30,368 Services (Fees) (ASC 606) Evernorth Health Services 2,862 1,875 8,199 5,289 Cigna Healthcare 1,639 1,530 4,847 4,504 Other Operations 1 — 3 9 Other revenues 43 (38) 172 108 Intercompany eliminations (1,347) (638) (3,647) (1,887) Total fees and other revenues 3,198 2,729 9,574 8,023 Total revenues from external customers $ 48,727 $ 45,077 $ 143,275 $ 133,822 (1) Other than the long-duration products referenced in the table, U.S. Commercial and U.S. Government insurance contracts are short-duration. (2) U.S. Government's and International Health's long-duration premium revenues are associated with contracts that provide coverage greater than one year or are guaranteed to be renewed at the option of the policyholder beyond one year. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Michael Triplett [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 16, 2023, Michael Triplett, President, U.S. Commercial, adopted a 10b5-1 plan. Mr. Triplett's plan provides for the sale of up to 5,379 shares of The Cigna Group common stock through March 15, 2024. | |
Name | Michael Triplett | |
Title | President, U.S. Commercial | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 16, 2023 | |
Arrangement Duration | 212 days | |
Michael Triplett Trading Arrangement, Common Stock [Member] | Michael Triplett [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 5,379 | 5,379 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of The Cigna Group 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"). Certain amounts in prior years related to the adoption of Targeted Improvements for the Accounting of Long-Duration Contracts, have been reclassified to conform to the current year presentation. See "Recent Accounting Pronouncements" below. 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 The Company's 2022 Form 10-K includes discussion of significant recent accounting pronouncements that either have impacted or may impact our financial statements in the future. The following information provides updates on recently adopted accounting pronouncements that have occurred since the Company filed its 2022 Form 10-K. There are no significant accounting pronouncements not yet adopted as of September 30, 2023. Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI"), Accounting Standards Update ("ASU") 2018-12 and related amendments The Cigna Group adopted LDTI January 1, 2023, which includes the following key provisions: • Changes to the measurement of the future policy benefits liability for traditional and limited-pay insurance contracts: • Assumptions used to measure cash flows (such as mortality, morbidity and lapse assumptions) are updated at least annually with the effect of changes in those assumptions remeasured retrospectively and reflected in current period net income. • Discount rate assumptions are updated quarterly based on market-level yields for low credit risk fixed income instruments ("upper-medium grade fixed income instrument"), with any changes reflected in other comprehensive income. The upper-medium grade fixed income instrument yield is interpreted to mean A-rated. • Deferred policy acquisition costs ("DAC") related to long-duration insurance contracts are amortized on a constant-level basis over the expected term of the related contracts. Other related deferred or capitalized balances (such as unearned revenue liability and value of business acquired) may use this simplified amortization method. • Market risk benefits ("MRB"), defined as protecting the contractholder from other-than-nominal capital market risk and exposing the insurer to that risk, are measured at fair value, with changes in fair value recognized in net income each period, except for the effect of the Company's change in nonperformance risk (own credit risk), which is recognized in other comprehensive income. • Additional disclosures, including disaggregated roll forwards for the liability for future policy benefits, market risk benefits, separate account liabilities and DAC, as well as information about significant inputs, judgments, assumptions and methods used in measurement. • The transition methods applied at adoption were: • The liability for future policy benefits was remeasured using a modified retrospective approach applied to all outstanding contracts as of the beginning of the earliest period presented and was recognized in the opening balance of retained earnings. The impact of remeasuring the future policy benefits liability for the discount rate was recorded through accumulated other comprehensive income. • DAC followed the transition method used for future policyholder benefits. • Market risk benefits were remeasured at fair value at the beginning of the earliest period presented. The difference between this fair value and carrying value was recognized in the opening balance of retained earnings, excluding the effect of the Company's change in nonperformance risk (own credit risk), which is recognized in accumulated other comprehensive income. Effects of adoption: • The new guidance applies to our long-duration insurance products predominantly within the Cigna Healthcare segment and Other Operations. • The cumulative effects of adopting the new standard were immaterial. The impacts were a decrease to January 1, 2021 Shareholders' equity of $139 million and an increase to Shareholders' net income for the year ended December 31, 2022 and December 31, 2021 of $36 million and $5 million, respectively. The corresponding impact to diluted earnings per share was an increase of $0.11 and $0.02 for the year ended December 31, 2022 and December 31, 2021, respectively. • The prior periods within our Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Balance Sheets, Consolidated Statements of Changes in Total Equity and Consolidated Statements of Cash Flows were restated to conform to the current presentation. • Prior period balances in the Company's footnote disclosures have been updated to reflect adjustments resulting from the adoption of this standard. Refer to Note 9 to the Consolidated Financial Statements for the Company's updated accounting policies. • It is possible that our income recognition pattern could change on a prospective basis for several reasons: • Applying periodic assumption updates, versus the locked-in model, may change our timing of profit or loss recognition. • DAC amortization is on a constant level basis over the expected term of the related contracts and no longer tied to the emergence of profit on such contracts. Additionally, in December 2022, the Financial Accounting Standards Board ("FASB") published ASU 2022-05, which simplified the retrospective adoption of LDTI by permitting companies to make an accounting policy election to exclude contracts that are sold and removed from the balance sheet prior to the effective date of the standard from the retrospective adoption of LDTI. The Cigna Group made this policy election for the contracts sold in the Chubb transaction and our divested interest in a joint venture in Türkiye. |
Revenue Recognition | Evernorth Health Services 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 | the Company entered into an uncommitted factoring facility (the "Facility") under which certain accounts receivable may be sold on a non-recourse basis to a financial institutionThe transactions under the Facility are accounted for as a sale and recorded as a reduction to accounts receivable in the Consolidated Balance Sheets because control of, and risk related to, the accounts receivable are transferred to the financial institutionAmounts associated with this Facility are reflected within Net cash provided by operating activities in the Company's Consolidated Statements of Cash Flows. Factoring fees paid under this Facility are reflected in Interest expense and other in the Consolidated Statements of Income.amounts received from manufacturers but not yet remitted to the financial institution. Such amounts are recorded within Accrued expenses and other liabilities on the Consolidated Balance Sheets. |
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. |
Future Policy Benefits | Accounting Policy. Future policy benefits represent the present value of estimated future obligations, estimated using actuarial methods, for long-duration insurance policies and annuity products currently in force, consisting primarily of reserves for annuity contracts, life insurance benefits, and certain supplemental health products that are guaranteed renewable beyond one year. Contracts are grouped at a level no higher than issue year, based on the original contract issue date, and at lower levels of disaggregation within each issue year for certain businesses to reflect factors including product type, plan type and currency. Management estimates these obligations based on assumptions for premiums, interest rates, mortality or morbidity, future claim adjudication expenses and surrenders. Mortality, morbidity and surrender assumptions are based on the Company's own experience and published actuarial tables, and are updated at least annually, to the extent changes in circumstances require. Interest rate assumptions are based on market-level yields for low credit risk fixed income instruments ("upper-medium grade fixed income instrument"). For interest accretion purposes, interest rates are fixed at the year of the cohort's inception, however for purposes of liability measurement, are updated to the current rate quarterly, with all changes in the interest rate from inception to current period reported through Accumulated other comprehensive loss. For contracts issued domestically, we use observable inputs from a published spot rate curve for terms up to 30 years and extrapolate for longer terms using a constant forward rate approach. For contracts issued by foreign operating entities with functional currencies other than the U.S. dollar, we use observable inputs to approximate a risk free rate and add a credit spread adjustment to align with a low credit risk fixed income instrument. For terms beyond the last observable risk free rates, which vary by international market, we extrapolate to the ultimate forward rate assuming a constant credit spread. For the annuity business, the premium paying period is shorter than the benefit coverage period, and a deferred profit liability ("DPL") is reported in future policy benefits representing gross premium received in excess of net premiums. DPL is amortized based on expected future benefit payments. |
Contractholder Deposit Funds | Accounting Policy. Liabilities for contractholder deposit funds primarily include deposits received from customers for investment-related and universal life products as well as investment earnings on their fund balances in Other Operations. These liabilities are adjusted to reflect administrative charges and, for universal life fund balances, mortality charges. Interest credited on these funds is accrued ratably over the contract period. |
Market Risk Benefits | Accounting Policy. Variable annuity reinsurance liabilities are measured as MRBs at fair value, net of nonperformance risk, with fluctuations in value gross of reinsurer nonperformance risk reported in benefit expenses while fluctuations in the Company's own nonperformance risk (own credit risk) are reported in Accumulated other comprehensive loss. Nonperformance risk reflects risk that a party might default and therefore not fulfill its obligations (i.e. nonpayment risk). The nonperformance risk adjustment reflects a market participant's view of nonpayment risk by adding an additional spread to the discount rate in the calculation of both (a) the variable annuity reinsurance liabilities to be paid by the Company and (b) the variable annuity reinsurance assets to be paid by the reinsurers, after considering collateral. The Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy described in Note 12 to the Consolidated Financial Statements because assumptions related to future annuitant behavior are largely unobservable. As discussed further in Note 10 to the Consolidated Financial Statements, due to the reinsurance agreements covering these liabilities, the liabilities do not generally impact net income except for the change in nonperformance risk on the reinsurance recoverable, which is reported in benefit expenses and does not offset the nonperformance risk valuation on the liability. Variable annuity liabilities are established using capital market assumptions and assumptions related to future annuitant behavior (including mortality, lapse and annuity election rates). |
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 to the Consolidated Financial Statements 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 primarily for expected credit losses.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.Variable annuity contracts are accounted for as assumed and ceded reinsurance and categorized as market risk benefits as discussed in Note 9 to the Consolidated Financial Statements. |
Investments | Cigna Group'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 in the Company's 2022 Form 10-K.Accounting policy. Our accounting policy for debt securities (including bonds, mortgage and other asset-backed securities and preferred stocks redeemable by the investor) remains materially consistent with the policy disclosed in the Company's 2022 Form 10-K. However, with the adoption of amended accounting guidance for long-duration insurance contracts on January 1, 2023 (discussed in Note 2 to the Consolidated Financial Statements), net unrealized appreciation on debt securities supporting the Company's run-off settlement annuity business is no longer reported in Non-current insurance and contractholder liabilities but rather is reported in 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. |
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.Please refer to the Company's 2022 Form 10-K for further discussion of the types of derivative financial instruments and associated accounting policies. |
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 liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset's or a liability's classification is based on the lowest level of input that is significant to its measurement. For example, a financial asset or liability carried at fair value would be classified in Level 3 if unobservable inputs were significant to the instrument's fair value, even though the measurement may be derived using inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). 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. Additionally, as discussed in Note 9E to the Consolidated Financial Statements, the Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy. 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 losses and Net investment income. Gains and losses included in Other comprehensive (loss) income, 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 | 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. The separate account activity for the nine months ended September 30, 2023 and 2022 was primarily driven by changes in the market values of the underlying separate account investments. |
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 2022 Form 10-K. |
AOCI | 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 September 30, 2023 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. |
Segment Information | Intersegment revenues primarily reflect pharmacy and care services transactions between the Evernorth Health Services 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. The Cigna Group'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 The Cigna Group'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. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | The following amounts were included within Accounts receivable, net: (In millions) September 30, 2023 December 31, 2022 Noninsurance customer receivables $ 8,384 $ 6,899 Pharmaceutical manufacturers receivables 8,188 7,108 Insurance customer receivables 2,256 2,963 Other receivables 255 248 Total $ 19,083 $ 17,218 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 September 30, 2022 (Shares in thousands, dollars in millions, except per share amounts) Basic Effect of Diluted Basic Effect of Diluted Shareholders' net income $ 1,408 $ 1,408 $ 2,757 $ 2,757 Shares: Weighted average 294,058 294,058 303,854 303,854 Common stock equivalents 3,073 3,073 3,663 3,663 Total shares 294,058 3,073 297,131 303,854 3,663 307,517 Earnings per share $ 4.79 $ (0.05) $ 4.74 $ 9.07 $ (0.10) $ 8.97 Nine Months Ended September 30, 2023 September 30, 2022 (Shares in thousands, dollars in millions, except per share amounts) Basic Effect of Diluted Basic Effect of Diluted Shareholders' net income $ 4,135 $ 4,135 $ 5,511 $ 5,511 Shares: Weighted average 294,752 294,752 312,434 312,434 Common stock equivalents 2,911 2,911 3,213 3,213 Total shares 294,752 2,911 297,663 312,434 3,213 315,647 Earnings per share $ 14.03 $ (0.14) $ 13.89 $ 17.64 $ (0.18) $ 17.46 Amounts reflected above for the three and nine months ended September 30, 2022 have been restated to reflect the impact of adopting amended accounting guidance for long-duration insurance contracts (discussed in Note 2 to the Consolidated Financial Statements). |
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 September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Anti-dilutive options 0.9 — 0.9 1.3 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding Amounts of Debt and Finance Leases | The outstanding amounts of debt, net of issuance costs, discounts or premiums, and finance leases were as follows: (In millions) September 30, 2023 December 31, 2022 Short-term debt Commercial paper $ 1,513 $ — $17 million, 8.300% Notes due January 2023 — 17 $63 million, 7.650% Notes due March 2023 — 63 $700 million, Floating Rate Notes due July 2023 — 700 $1,000 million, 3.000% Notes due July 2023 — 994 $1,187 million, 3.750% Notes due July 2023 — 1,186 $500 million, 0.613% Notes due March 2024 500 — $1,000 million, 3.500% Notes due June 2024 994 — Other, including finance leases 39 33 Total short-term debt $ 3,046 $ 2,993 Long-term debt $500 million, 0.613% Notes due March 2024 $ — $ 499 $1,000 million, 3.500% Notes due June 2024 — 990 $900 million, 3.250% Notes due April 2025 (1) 871 872 $2,200 million, 4.125% Notes due November 2025 2,197 2,195 $1,500 million, 4.500% Notes due February 2026 1,502 1,503 $800 million, 1.250% Notes due March 2026 798 797 $700 million, 5.685% Notes due March 2026 697 — $1,500 million, 3.400% Notes due March 2027 1,448 1,436 $259 million, 7.875% Debentures due May 2027 259 259 $600 million, 3.050% Notes due October 2027 597 597 $3,800 million, 4.375% Notes due October 2028 3,787 3,785 $1,500 million, 2.400% Notes due March 2030 1,492 1,492 $1,500 million, 2.375% Notes due March 2031 (1) 1,359 1,380 $45 million, 8.080% Step Down Notes due January 2033 (2) 45 45 $800 million, 5.400% Notes due March 2033 794 — $190 million, 6.150% Notes due November 2036 190 190 $2,200 million, 4.800% Notes due August 2038 2,193 2,192 $750 million, 3.200% Notes due March 2040 743 743 $121 million, 5.875% Notes due March 2041 119 119 $448 million, 6.125% Notes due November 2041 487 488 $317 million, 5.375% Notes due February 2042 315 315 $1,500 million, 4.800% Notes due July 2046 1,466 1,466 $1,000 million, 3.875% Notes due October 2047 989 989 $3,000 million, 4.900% Notes due December 2048 2,969 2,968 $1,250 million, 3.400% Notes due March 2050 1,237 1,236 $1,500 million, 3.400% Notes due March 2051 1,478 1,478 Other, including finance leases 62 66 Total long-term debt $ 28,094 $ 28,100 (1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 11 in the Company's 2022 Form 10-K for further information about the Company's interest rate risk management and these derivative instruments. (2) Interest rate step down to 8.080% effective January 15, 2023. |
Summary of Debt Issuances | On March 7, 2023, the Company issued $1.5 billion of new senior notes. The proceeds of this issuance were used for general corporate purposes, and included repayment of outstanding debt securities. Interest on this debt is paid semi-annually. Principal Maturity Date Interest Rate Net Proceeds $700 million (1) March 15, 2026 5.685% $698 million $800 million (2) March 15, 2033 5.400% $796 million (1) Redeemable at any time discounted at the U.S. Treasury rate plus 20 basis points. Redeemable at par on or after March 15, 2024. (2) Redeemable at any time discounted at the U.S. Treasury rate plus 25 basis points. Redeemable at par on or after December 15, 2032. |
Common and Preferred Stock (Tab
Common and Preferred Stock (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Dividend Payments | The following table provides details of the Company's dividend payments: Record Date Payment Date Amount per Share Total Amount Paid (in millions) 2023 March 8, 2023 March 23, 2023 $1.23 $368 June 7, 2023 June 22, 2023 $1.23 $362 September 6, 2023 September 21, 2023 $1.23 $362 2022 March 9, 2022 March 24, 2022 $1.12 $357 June 8, 2022 June 23, 2022 $1.12 $352 September 7, 2022 September 22, 2022 $1.12 $341 |
Insurance and Contractholder _2
Insurance and Contractholder Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 September 30, 2022 (In millions) Current Non-current Total Current Non-current Total Total Unpaid claims and claim expenses Cigna Healthcare $ 5,240 $ 77 $ 5,317 $ 4,117 $ 59 $ 4,176 $ 4,250 Other Operations 105 169 274 107 177 284 280 Future policy benefits Cigna Healthcare 64 526 590 43 544 587 593 Other Operations 164 3,216 3,380 150 3,442 3,592 3,610 Contractholder deposit funds Cigna Healthcare 12 139 151 14 157 171 181 Other Operations 364 6,243 6,607 351 6,358 6,709 6,747 Market risk benefits 41 893 934 51 1,217 1,268 1,337 Unearned premiums 1,362 23 1,385 576 22 598 1,283 Total insurance and contractholder liabilities $ 7,352 $ 11,286 $ 18,638 $ 5,409 $ 11,976 $ 17,385 $ 18,281 Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment was as follows: Nine Months Ended (In millions) September 30, 2023 September 30, 2022 Beginning balance $ 4,176 $ 4,261 Less: Reinsurance and other amounts recoverable 221 261 Beginning balance, net 3,955 4,000 Incurred costs related to: Current year 26,788 23,431 Prior years (237) (278) Total incurred 26,551 23,153 Paid costs related to: Current year 22,053 19,655 Prior years 3,362 3,450 Total paid 25,415 23,105 Ending balance, net 5,091 4,048 Add: Reinsurance and other amounts recoverable 226 202 Ending balance $ 5,317 $ 4,250 |
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 were as follows: Nine Months Ended September 30, 2023 September 30, 2022 (Dollars in millions) $ % (1) $ % (2) Actual completion factors $ 45 0.2 % $ 81 0.3 % Medical cost trend 192 0.6 197 0.6 Total favorable variance $ 237 0.8 % $ 278 0.9 % (1) Percentage of current year incurred costs as reported for the year ended December 31, 2022. (2) Percentage of current year incurred costs as reported for the year ended December 31, 2021. |
Future Policy Benefit Activity | The weighted average interest rates applied and duration for future policy benefits in the Cigna Healthcare segment, consisting primarily of supplemental health products including individual Medicare supplement, limited benefit health products and individual private medical insurance, were as follows: As of September 30, 2023 September 30, 2022 Interest accretion rate 2.85 % 2.34 % Current discount rate 6.03 % 5.67 % Weighted average duration 7.0 years 7.5 years Nine Months Ended (In millions) September 30, 2023 September 30, 2022 Present value of expected net premiums Beginning balance $ 8,557 $ 9,314 Reversal of effect of beginning of period discount rate assumptions 1,537 (367) Effect of assumption changes and actual variances from expected experience (1) 314 1,101 Issuances and lapses 822 718 Net premiums collected (1,019) (956) Interest and other (2) 58 44 Ending balance at original discount rate 10,269 9,854 Effect of end of period discount rate assumptions (1,681) (1,576) Ending balance (3) $ 8,588 $ 8,278 Present value of expected policy benefits Beginning balance $ 8,945 $ 9,794 Reversal of effect of discount rate assumptions 1,611 (379) Effect of assumption changes and actual variances from expected experience (1) 112 1,006 Issuances and lapses 902 827 Benefit payments (1,017) (1,081) Interest and other (2) 184 161 Ending balance at original discount rate 10,737 10,328 Effect of discount rate assumptions (1,765) (1,652) Ending balance (4) $ 8,972 $ 8,676 Liability for future policy benefits $ 384 $ 398 Other (5) 206 195 Total liability for future policy benefits (6) $ 590 $ 593 (1) Includes the effect of actual variances from expectations, which (decreased)/increased the total liability for future policy benefits by $(12) million and $58 million, respectively, for the nine months ended September 30, 2023 and September 30, 2022. (2) Includes the foreign exchange rate impact of translating from transactional and functional currency to United States dollar and the impact of flooring the liability at zero. The flooring impact is calculated at the cohort level after discounting the reserves at the current discount rate. (3) As of September 30, 2023 and September 30, 2022, respectively, undiscounted expected future gross premiums were $18.5 billion and $17.1 billion. As of September 30, 2023 and September 30, 2022, respectively, discounted expected future gross premiums were $12.5 billion and $11.8 billion. (4) As of September 30, 2023 and September 30, 2022, respectively, undiscounted expected future policy benefits were $13.1 billion and $12.4 billion. (5) The liability for future policyholder benefits includes immaterial businesses shown as reconciling items above, most of which are in run-off. (6) $154 million and $156 million of reinsurance recoverable asset reported in the Consolidated Balance Sheets as of September 30, 2023 and September 30, 2022, respectively, relate to the liability for future policy benefits. The weighted average interest rates applied and duration for future policy benefits in Other Operations, consisting of annuity and life insurance products, were as follows: As of September 30, 2023 September 30, 2022 Interest accretion rate 5.64 % 5.64 % Current discount rate 5.73 % 5.28 % Weighted average duration 10.9 years 11.8 years |
Summary of Market Risk Benefit | Market risk benefits activity was as follows: Nine Months Ended (In millions) September 30, 2023 September 30, 2022 Balance, beginning of year $ 1,268 $ 1,824 Balance, beginning of year, before the effect of nonperformance risk (own credit risk) 1,379 1,949 Changes due to expected run-off (15) (44) Changes due to capital markets versus expected (352) (510) Changes due to policyholder behavior versus expected (1) (4) Assumption changes (16) 65 Balance, end of period, before the effect of changes in nonperformance risk (own credit risk) 995 1,456 Nonperformance risk (own credit risk), end of period (61) (119) Balance, end of period $ 934 $ 1,337 Reinsured market risk benefit, end of period $ 993 $ 1,450 (In millions) Reinsurer (1) September 30, 2023 December 31, 2022 Collateral and Other Terms at September 30, 2023 Berkshire $ 810 $ 1,116 90% were secured by assets in a trust. Sun Life Assurance Company of Canada 81 115 Liberty Re (Bermuda) Ltd. 94 128 100% were secured by assets in a trust. SCOR SE 29 39 85% were secured by a letter of credit. Market risk benefits (2) $ 1,014 $ 1,398 (1) All reinsurers are rated A- equivalent and higher by an NRSRO. (2) Includes IBNR and outstanding claims of $21 million. These amounts are excluded from market risk benefits at September 30, 2023 in Note 9 and Note 10A to the Consolidated Financial Statements. At December 31, 2022, IBNR and outstanding claims of $27 million offset by premium due of $3 million were excluded from the market risk benefits as restated due to the adoption of LDTI. |
Account Value, Net Amount at Risk and the Number of Contractholders for Guarantees Assumed in the Event of Death | The following table presents the net amount at risk and the average attained age of contractholders (weighted by exposure) for contracts assumed by the Company. The net amount at risk is the amount the Company would have to pay to contractholders if all deaths or annuitizations occurred as of the earliest possible date in accordance with the insurance contract. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded, as discussed further in Note 10 to the Consolidated Financial Statements. (Dollars in millions, excludes impact of reinsurance ceded) September 30, 2023 September 30, 2022 Net amount at risk $ 1,986 $ 2,881 Average attained age of contractholders (weighted by exposure) 75.9 years 74.0 years |
Reinsurance (Tables)
Reinsurance (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance Recoverables by Range of External Credit Rating and Collateral Level | The Company's reinsurance recoverables as of September 30, 2023 are presented at amount due by range of external credit rating and collateral level in the following table, with reinsurance recoverables that are market risk benefits separately presented at fair value: (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) $ — $ — $ 86 $ 86 BBB- to BBB+ equivalent current credit ratings (1) — — 59 59 Not rated 157 3 119 279 Total recoverables related to ongoing operations 157 3 264 424 Acquisition, disposition or run-off activities BBB+ equivalent and higher current ratings (1) Lincoln National Life and Lincoln Life & Annuity of New York — 2,690 — 2,690 Empower Annuity Insurance Company — — 130 130 Prudential Insurance Company of America 364 — — 364 Life Insurance Company of North America — 372 — 372 Other 173 21 15 209 Not rated — 7 4 11 Total recoverables related to acquisition, disposition or run-off activities 537 3,090 149 3,776 Total reinsurance recoverables before market risk benefits $ 694 $ 3,093 $ 413 $ 4,200 Allowance for uncollectible reinsurance (35) Market risk benefits (4) 993 Total reinsurance recoverables (2) $ 5,158 (1) Certified by a NRSRO. (2) Includes $238 million of current reinsurance recoverables that are reported in Other current assets. (3) Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level. (4) Total Berkshire and certain Other recoverables reflected under acquisition, disposition or run-off activities in the Company's 2022 Form 10-K that relate to the Company's variable annuity reinsurance products discussed in section B below are now reported at fair market value as MRBs, as further discussed in Note 9 to the Consolidated Financial Statements. At December 31, 2022, we reported $711 million of recoverables related to the GMDB variable annuity reinsurance product. The restated December 31, 2022 variable annuity reinsurance recoverable balance is $1.4 billion, which also includes the GMIB variable annuity reinsurance product that was classified in Other assets prior to the adoption of LDTI. |
Reinsurance Recoverables for Variable Annuity Business | Market risk benefits activity was as follows: Nine Months Ended (In millions) September 30, 2023 September 30, 2022 Balance, beginning of year $ 1,268 $ 1,824 Balance, beginning of year, before the effect of nonperformance risk (own credit risk) 1,379 1,949 Changes due to expected run-off (15) (44) Changes due to capital markets versus expected (352) (510) Changes due to policyholder behavior versus expected (1) (4) Assumption changes (16) 65 Balance, end of period, before the effect of changes in nonperformance risk (own credit risk) 995 1,456 Nonperformance risk (own credit risk), end of period (61) (119) Balance, end of period $ 934 $ 1,337 Reinsured market risk benefit, end of period $ 993 $ 1,450 (In millions) Reinsurer (1) September 30, 2023 December 31, 2022 Collateral and Other Terms at September 30, 2023 Berkshire $ 810 $ 1,116 90% were secured by assets in a trust. Sun Life Assurance Company of Canada 81 115 Liberty Re (Bermuda) Ltd. 94 128 100% were secured by assets in a trust. SCOR SE 29 39 85% were secured by a letter of credit. Market risk benefits (2) $ 1,014 $ 1,398 (1) All reinsurers are rated A- equivalent and higher by an NRSRO. (2) Includes IBNR and outstanding claims of $21 million. These amounts are excluded from market risk benefits at September 30, 2023 in Note 9 and Note 10A to the Consolidated Financial Statements. At December 31, 2022, IBNR and outstanding claims of $27 million offset by premium due of $3 million were excluded from the market risk benefits as restated due to the adoption of LDTI. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: September 30, 2023 December 31, 2022 (In millions) Current Long-term Total Current Long-term Total Debt securities $ 612 $ 8,927 $ 9,539 $ 654 $ 9,218 $ 9,872 Equity securities 31 3,345 3,376 45 577 622 Commercial mortgage loans 215 1,402 1,617 67 1,547 1,614 Policy loans — 1,224 1,224 — 1,218 1,218 Other long-term investments — 4,076 4,076 — 3,728 3,728 Short-term investments 188 — 188 139 — 139 Total $ 1,046 $ 18,974 $ 20,020 $ 905 $ 16,288 $ 17,193 |
Debt Securities by Contractual Maturity | The amortized cost and fair value by contractual maturity periods for debt securities were as follows as of September 30, 2023: (In millions) Amortized Fair Due in one year or less $ 657 $ 631 Due after one year through five years 3,983 3,710 Due after five years through ten years 3,306 2,914 Due after ten years 2,294 1,938 Mortgage and other asset-backed securities 394 346 Total $ 10,634 $ 9,539 |
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 September 30, 2023 Federal government and agency $ 278 $ — $ 19 $ (14) $ 283 State and local government 41 — — (3) 38 Foreign government 373 — 4 (21) 356 Corporate 9,548 (45) 50 (1,037) 8,516 Mortgage and other asset-backed 394 — — (48) 346 Total $ 10,634 $ (45) $ 73 $ (1,123) $ 9,539 December 31, 2022 Federal government and agency $ 292 $ — $ 32 $ (12) $ 312 State and local government 43 — — (2) 41 Foreign government 375 — 11 (21) 365 Corporate 9,742 (44) 89 (981) 8,806 Mortgage and other asset-backed 390 — 1 (43) 348 Total $ 10,842 $ (44) $ 133 $ (1,059) $ 9,872 |
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. Unrealized depreciation on these debt securities is primarily due to declines in fair value resulting from increasing interest rates since these securities were purchased. September 30, 2023 December 31, 2022 (Dollars in millions) Fair Amortized Unrealized Number Fair Amortized Unrealized Number One year or less Investment grade $ 1,679 $ 1,746 $ (67) 589 $ 5,533 $ 6,127 $ (594) 1,659 Below investment grade 283 291 (8) 1,094 887 964 (77) 1,287 More than one year Investment grade 5,262 6,200 (938) 1,646 1,151 1,487 (336) 462 Below investment grade 774 884 (110) 859 330 382 (52) 369 Total $ 7,998 $ 9,121 $ (1,123) 4,188 $ 7,901 $ 8,960 $ (1,059) 3,777 |
Equity Security Investments | The following table provides the values of the Company's equity security investments as of September 30, 2023 and December 31, 2022: September 30, 2023 December 31, 2022 (In millions) Cost Carrying Value Cost Carrying Value Equity securities with readily determinable fair values $ 662 $ 53 $ 673 $ 138 Equity securities with no readily determinable fair value 3,217 3,323 380 484 Total $ 3,879 $ 3,376 $ 1,053 $ 622 |
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: (Dollars in millions) September 30, 2023 December 31, 2022 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% $ 909 2.18 $ 901 2.12 60% to 79% 542 1.80 564 1.73 80% to 100% 166 1.48 149 1.17 Total $ 1,617 1.97 62 % $ 1,614 1.89 60 % |
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) September 30, 2023 December 31, 2022 Real estate investments $ 1,511 $ 1,319 Securities partnerships 2,360 2,166 Other 205 243 Total $ 4,076 $ 3,728 |
Realized Gains and Losses on Investments | The following realized gains and losses on investments exclude 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 September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Net realized investment (losses) gains, excluding credit loss expense and asset write-downs $ (9) $ (67) $ (29) $ (454) Credit loss (expense) (5) (15) (3) (39) Other investment asset write-downs — — (12) — Net realized investment (losses), before income taxes $ (14) $ (82) $ (44) $ (493) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Financial Liabilities Carried at Fair Value | The following table provides information about the Company's financial assets and liabilities carried at fair value. Further information regarding insurance assets and liabilities carried at fair value is provided in Note 9E to the Consolidated Financial Statements. 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 contractholders: (In millions) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Financial assets at fair value Debt securities Federal government and agency $ 146 $ 147 $ 137 $ 165 $ — $ — $ 283 $ 312 State and local government — — 38 41 — — 38 41 Foreign government — — 356 365 — — 356 365 Corporate — — 8,125 8,394 391 412 8,516 8,806 Mortgage and other asset-backed — — 303 313 43 35 346 348 Total debt securities 146 147 8,959 9,278 434 447 9,539 9,872 Equity securities (1) 3 6 48 132 2 — 53 138 Short-term investments — — 188 139 — — 188 139 Derivative assets — — 193 230 — 1 193 231 (1) Excludes certain equity securities that have no readily determinable fair value. |
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. The range and weighted average basis point 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) September 30, 2023 December 31, 2022 Unobservable Input September 30, 2023 September 30, 2023 December 31, 2022 Debt securities Corporate $ 391 $ 412 Liquidity 60 - 1060 (300) bps 60 - 1060 (270) bps Mortgage and other asset-backed securities 43 35 Liquidity 120 - 595 (300) bps 105 - 520 (310) bps Total Level 3 debt securities $ 434 $ 447 |
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. 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 For the Nine Months Ended (In millions) 2023 2022 2023 2022 Debt and Equity Securities Beginning balance $ 454 $ 512 $ 447 $ 796 (Losses) gains included in Shareholders' net income (1) 4 (1) 14 Losses included in Other comprehensive (loss) income (5) (11) (5) (62) Purchases, sales and settlements Purchases 6 81 10 157 Settlements (5) (54) (32) (206) Total purchases, sales and settlements 1 27 (22) (49) Transfers into/(out of) Level 3 Transfers into Level 3 — 6 71 124 Transfers out of Level 3 (13) (34) (54) (319) Total transfers into/(out of) Level 3 (13) (28) 17 (195) Ending balance $ 436 $ 504 $ 436 $ 504 Total losses included in Shareholders' net income attributable to instruments held at the reporting date $ (1) $ — $ (1) $ (2) Change in unrealized gain or (loss) included in Other comprehensive (loss) income for assets held at the end of the reporting period $ (4) $ (33) $ (9) $ (60) |
Fair Values of Separate Account Assets | Fair values of Separate account assets were as follows: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Total (In millions) September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022 Guaranteed separate accounts (See Note 16) $ 210 $ 203 $ 342 $ 382 $ — $ — $ 552 $ 585 Non-guaranteed separate accounts (1) 151 211 5,435 5,522 204 203 5,790 5,936 Subtotal $ 361 $ 414 $ 5,777 $ 5,904 $ 204 $ 203 6,342 6,521 Non-guaranteed separate accounts priced at net asset value ("NAV") as a practical expedient (1) 686 757 Total $ 7,028 $ 7,278 (1) Non-guaranteed separate accounts include $3.8 billion as of September 30, 2023 and $4.0 billion as of December 31, 2022 in assets supporting the Company's pension plans, including $0.2 billion classified in Level 3 as of September 30, 2023 and December 31, 2022. |
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 Company's pension plans. The following table provides additional information on these investments: Fair Value as of Unfunded Commitment as of September 30, 2023 Redemption Frequency Redemption Notice (In millions) September 30, 2023 December 31, 2022 Securities partnerships $ 416 $ 451 $ 204 Not applicable Not applicable Real estate funds 266 302 — Quarterly 30 - 90 days Hedge funds 4 4 — Up to annually, varying by fund 30 - 90 days Total $ 686 $ 757 $ 204 |
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 but for which fair value disclosure is required. In addition to universal life products and finance leases, financial instruments that are carried in the Company's Consolidated Balance Sheets at amounts that approximate fair value are excluded from the following table: Classification in Fair Value Hierarchy September 30, 2023 December 31, 2022 (In millions) Fair Value Carrying Value Fair Value Carrying Value Commercial mortgage loans Level 3 $ 1,470 $ 1,617 $ 1,491 $ 1,614 Long-term debt, including current maturities, excluding finance leases Level 2 $ 26,225 $ 29,526 $ 28,653 $ 30,994 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in the Components of AOCI | Changes in the components of AOCI, including the restatement for amended accounting guidance for long-duration insurance contracts (discussed in Note 2 to the Consolidated Financial Statements), are as follows: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Securities and Derivatives Beginning balance, as retrospectively restated $ (118) $ (247) $ (332) $ 1,266 Unrealized (depreciation) appreciation on securities and derivatives (257) (325) 2 (2,259) Tax benefit (expense) 57 (7) (9) 393 Net unrealized (depreciation) on securities and derivatives (200) (332) (7) (1,866) Reclassification adjustment for losses included in Shareholders' net income ((Loss) gain on sale of businesses) — 171 — 171 Reclassification adjustment for losses included in Shareholders' net income (Net realized investment losses) 12 14 38 41 Reclassification adjustment for (gains) included in Shareholders' net income (Selling, general and administrative expenses) (1) — (1) — Reclassification adjustment for tax (benefit) included in Shareholders' net income (3) (3) (8) (9) Net losses reclassified from AOCI to Shareholders' net income 8 182 29 203 Other comprehensive (loss) income, net of tax (192) (150) 22 (1,663) Ending balance $ (310) $ (397) $ (310) $ (397) Net long-duration insurance and contractholder liabilities measurement adjustments (1) Beginning balance $ (704) $ (300) $ (256) $ (765) Current period change in discount rate for certain long-duration liabilities (27) (55) (585) 549 Tax benefit (expense) 12 23 149 (98) Net current period change in discount rate for certain long-duration liabilities (15) (32) (436) 451 Current period change in instrument-specific credit risk for market risk benefits (17) 16 (50) (6) Tax benefit (expense) 4 (3) 10 1 Net current period change in instrument-specific credit risk for market risk benefits (13) 13 (40) (5) Other comprehensive (loss) income, net of tax (28) (19) (476) 446 Ending balance $ (732) $ (319) $ (732) $ (319) Translation of foreign currencies Beginning balance, as retrospectively restated $ (157) $ (500) $ (154) $ (233) Translation of foreign currencies (31) (90) (36) (332) Tax benefit (expense) 2 — 4 (28) Net translation of foreign currencies (29) (90) (32) (360) Reclassification adjustment for losses included in Net income ((Loss) gain on sale of businesses) — 236 — 236 Reclassification adjustment for tax expense included in Net income — 29 — 29 Net translation losses reclassified from AOCI to Net income — 265 — 265 Translation of foreign currencies (31) 146 (36) (96) Tax benefit 2 29 4 1 Other comprehensive (loss) income, net of tax (29) 175 (32) (95) Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests — 1 — (2) Shareholders' other comprehensive (loss) income, net of tax (29) 174 (32) (93) Ending balance $ (186) $ (326) $ (186) $ (326) Postretirement benefits liability Beginning balance $ (899) $ (1,296) $ (916) $ (1,336) Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (Interest expense and other) 11 17 35 50 Reclassification adjustment for (gains) included in Shareholders' net income ((Loss) gain on sale of businesses) — (2) — (2) Reclassification adjustment for tax (benefit) included in Shareholders' net income (3) (5) (9) (12) Net adjustments reclassified from AOCI to Shareholders' net income 8 10 26 36 Valuation update — — (2) 18 Tax benefit (expense) — — 1 (4) Net change due to valuation update — — (1) 14 Other comprehensive income, net of tax 8 10 25 50 Ending balance $ (891) $ (1,286) $ (891) $ (1,286) Total Accumulated other comprehensive loss Beginning balance, as retrospectively restated $ (1,878) $ (2,343) $ (1,658) $ (1,068) Shareholders' other comprehensive (loss) income, net of tax (241) 15 (461) (1,260) Ending balance $ (2,119) $ (2,328) $ (2,119) $ (2,328) (1) Established upon the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Summary of Special Items | The following table presents the special items charges (benefits) recorded by the Company, as well as the respective financial statement line items impacted: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (In millions) Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Charges (benefits) associated with litigation matters $ 201 $ 171 $ — $ — $ 201 $ 171 $ (28) $ (20) Loss (gain) on sale of businesses 21 19 (1,735) (1,388) 21 19 (1,735) (1,388) Integration and transaction-related costs 13 9 24 23 20 15 112 86 Charge for organizational efficiency plan — — — — — — 22 17 Total impact from special items $ 235 $ 199 $ (1,711) $ (1,365) $ 242 $ 205 $ (1,629) $ (1,305) |
Summarized Segment Financial Information | Effective January 1, 2023, we adopted amended accounting guidance for long-duration insurance contracts. See Note 2 to the Consolidated Financial Statements for further information. Prior period summarized segment information has been retrospectively adjusted to conform to this new basis of accounting. Summarized segment financial information was as follows: (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended September 30, 2023 Revenues from external customers $ 37,230 $ 11,426 $ 71 $ — $ 48,727 Intersegment revenues 1,303 1,136 — (2,439) Net investment income 63 176 76 6 321 Total revenues 38,596 12,738 147 (2,433) 49,048 Net realized investment results from certain equity method investments — 30 — — 30 Adjusted revenues $ 38,596 $ 12,768 $ 147 $ (2,433) $ 49,078 Income (loss) before income taxes $ 1,272 $ 1,019 $ (3) $ (448) $ 1,840 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (44) — — — (44) Net realized investment losses (1) 1 35 8 — 44 Amortization of acquired intangible assets 443 11 — — 454 Special items Charges associated with litigation matters 44 157 — — 201 Loss on sale of businesses — — 21 — 21 Integration and transaction-related costs — — — 13 13 Pre-tax adjusted income (loss) from operations $ 1,716 $ 1,222 $ 26 $ (435) $ 2,529 (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Three months ended September 30, 2022 Revenues from external customers $ 34,670 $ 10,329 $ 78 $ — $ 45,077 Intersegment revenues 1,003 667 — (1,670) Net investment income 25 101 75 3 204 Total revenues 35,698 11,097 153 (1,667) 45,281 Net realized investment results from certain equity method investments — 80 — — 80 Adjusted revenues $ 35,698 $ 11,177 $ 153 $ (1,667) $ 45,361 Income (loss) before income taxes $ 1,200 $ 876 $ 1,755 $ (340) $ 3,491 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (17) (1) (4) — (22) Net realized investment losses (1) — 158 4 — 162 Amortization of acquired intangible assets 442 17 1 — 460 Special items (Gain) on sale of businesses — — (1,735) — (1,735) Integration and transaction-related costs — — — 24 24 Pre-tax adjusted income (loss) from operations $ 1,625 $ 1,050 $ 21 $ (316) $ 2,380 (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. (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Nine months ended September 30, 2023 Revenues from external customers $ 108,462 $ 34,581 $ 232 $ — $ 143,275 Intersegment revenues 4,343 3,143 — (7,486) Net investment income 175 454 230 17 876 Total revenues 112,980 38,178 462 (7,469) 144,151 Net realized investment results from certain equity method investments — 22 — — 22 Adjusted revenues $ 112,980 $ 38,200 $ 462 $ (7,469) $ 144,173 Income (loss) before income taxes $ 3,318 $ 3,252 $ 47 $ (1,292) $ 5,325 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (140) (2) — — (142) Net realized investment losses (1) — 64 2 — 66 Amortization of acquired intangible assets 1,330 38 — — 1,368 Special items Charges associated with litigation matters 44 157 — — 201 Loss on sale of businesses — — 21 — 21 Integration and transaction-related costs — — — 20 20 Pre-tax adjusted income (loss) from operations $ 4,552 $ 3,509 $ 70 $ (1,272) $ 6,859 (In millions) Evernorth Health Services Cigna Healthcare Other Operations Corporate and Eliminations Total Nine months ended September 30, 2022 Revenues from external customers $ 100,675 $ 31,411 $ 1,736 $ — $ 133,822 Intersegment revenues 3,421 1,815 — (5,236) Net investment income 51 545 344 3 943 Total revenues 104,147 33,771 2,080 (5,233) 134,765 Net realized investment results from certain equity method investments — 134 — — 134 Adjusted revenues $ 104,147 $ 33,905 $ 2,080 $ (5,233) $ 134,899 Income (loss) before income taxes $ 3,114 $ 2,953 $ 2,138 $ (1,166) $ 7,039 Pre-tax adjustments to reconcile to adjusted income from operations (Income) attributable to noncontrolling interests (41) (2) (11) — (54) Net realized investment losses (1) — 542 85 — 627 Amortization of acquired intangible assets 1,329 89 1 — 1,419 Special items (Benefits) associated with litigation matters — — — (28) (28) (Gain) on sale of businesses — — (1,735) — (1,735) Integration and transaction-related costs — — — 112 112 Charge for organizational efficiency plan — — — 22 22 Pre-tax adjusted income (loss) from operations $ 4,402 $ 3,582 $ 478 $ (1,060) $ 7,402 (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 | Revenue from external customers includes Pharmacy revenues, Premiums and Fees and other revenues. Prior period amounts have been retrospectively adjusted to reflect adoption of amended accounting guidance for long-duration insurance contracts, as discussed in Note 2 to the Consolidated Financial Statements. The following table presents these revenues by product, premium and service type: Three Months Ended September 30, Nine Months Ended September 30, (In millions) 2023 2022 2023 2022 Products (Pharmacy revenues) (ASC 606) Network revenues $ 16,926 $ 16,583 $ 49,080 $ 48,221 Home delivery and specialty revenues 16,324 15,583 48,943 45,550 Other revenues 2,390 1,630 6,506 5,009 Intercompany eliminations (1,109) (1,034) (3,890) (3,349) Total pharmacy revenues 34,531 32,762 100,639 95,431 Insurance premiums (ASC 944) Cigna Healthcare U.S. Commercial (1) Insured 4,144 3,821 12,315 11,312 Stop loss 1,548 1,384 4,565 4,053 Other 362 353 1,095 1,065 U.S. Government (1) Medicare Advantage 2,189 1,949 6,605 6,080 Medicare Part D 224 240 984 986 Other Short-duration (Individual and family plans) 1,266 697 3,767 2,014 Long-duration (2) (Individual Medicare supplement and limited benefit health products) 344 332 1,015 993 International Health Short-duration (Group medical insurance) 743 655 2,174 1,911 Long-duration (2) (Individual private medical insurance) 91 77 266 235 Total Cigna Healthcare 10,911 9,508 32,786 28,649 Divested International businesses — — — 1,500 Other 70 76 225 219 Intercompany eliminations 17 2 51 — Total premiums 10,998 9,586 33,062 30,368 Services (Fees) (ASC 606) Evernorth Health Services 2,862 1,875 8,199 5,289 Cigna Healthcare 1,639 1,530 4,847 4,504 Other Operations 1 — 3 9 Other revenues 43 (38) 172 108 Intercompany eliminations (1,347) (638) (3,647) (1,887) Total fees and other revenues 3,198 2,729 9,574 8,023 Total revenues from external customers $ 48,727 $ 45,077 $ 143,275 $ 133,822 (1) Other than the long-duration products referenced in the table, U.S. Commercial and U.S. Government insurance contracts are short-duration. (2) U.S. Government's and International Health's long-duration premium revenues are associated with contracts that provide coverage greater than one year or are guaranteed to be renewed at the option of the policyholder beyond one year. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2023 | Sep. 30, 2022 | [1] | Sep. 30, 2023 | Sep. 30, 2022 | [1] | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | [1] | Dec. 31, 2020 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Decrease to shareholders' equity | $ (45,702) | $ (44,806) | $ (45,702) | $ (44,806) | $ (44,688) | [1] | $ (46,976) | [1] | $ (45,464) | $ (45,701) | ||||
Increase to shareholders' net income | $ 1,408 | $ 2,757 | $ 4,135 | $ 5,511 | ||||||||||
Increase to diluted earnings per share (in dollars per share) | $ 4.74 | $ 8.97 | $ 13.89 | $ 17.46 | ||||||||||
Revision of Prior Period, Accounting Standards Update, Adjustment | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Increase to shareholders' net income | $ 36 | $ 5 | ||||||||||||
Increase to diluted earnings per share (in dollars per share) | $ 0.11 | $ 0.02 | ||||||||||||
Adjustment upon Adoption | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Decrease to shareholders' equity | $ 139 | |||||||||||||
Pharmacy Benefits Management Services | Guarantees | ||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||
Performance guarantee liability | $ 1,300 | $ 1,300 | $ 1,300 | |||||||||||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Accounts Receivable, Net - Amou
Accounts Receivable, Net - Amounts Included in Accounts Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | |||
Noninsurance customer receivables | $ 8,384 | $ 6,899 | |
Pharmaceutical manufacturers receivables | 8,188 | 7,108 | |
Insurance customer receivables | 2,256 | 2,963 | |
Other receivables | 255 | 248 | |
Accounts receivable, net | $ 19,083 | $ 17,218 | [1] |
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Accounts Receivable, Net - Narr
Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Jul. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | |||
Allowance for receivables, current | $ 3,300 | $ 1,900 | |
Allowance for current expected credit losses on accounts receivable | 96 | $ 86 | |
Total capacity, uncommitted factoring facility | $ 1,000 | ||
Initial term, uncommitted factoring facility (in years) | 2 years | ||
Automatic renewal term, uncommitted factoring facility (in years) | 1 year | ||
Accounts receivable sold, uncommitted factoring facility | 1,000 | ||
Accounts receivable sold that remain outstanding, uncommitted factoring facility | 253 | ||
Accounts receivable received but not remitted, uncommitted factoring facility | $ 512 |
Supplier Finance Program (Detai
Supplier Finance Program (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Payment term (in months) | 1 month | |
Outstanding payment obligations, current | $ 1,600 | $ 1,300 |
Outstanding payment obligations, current, voluntarily elected by suppliers to be sold to the financial institution | $ 378 |
Mergers, Acquisitions and Div_2
Mergers, Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Integration and transaction-related costs, pre-tax | $ 13 | $ 24 | $ 20 | $ 112 | |
Integration and transaction-related costs, after-tax | 9 | $ 23 | 15 | $ 86 | |
CHSS JV LLC | Guarantee of CHSS' credit facilities | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum guarantee exposure | $ 125 | $ 125 | |||
International life, accident, supplemental benefits businesses sold to Chubb | Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Sale price | $ 5,400 | ||||
Gain (loss) on sale of business, pre-tax | 1,700 | ||||
Gain (loss) on sale of business, after-tax | $ 1,400 |
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 | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Earnings Per Share [Abstract] | ||||||
Shareholders' net income | $ 1,408 | $ 2,757 | [1] | $ 4,135 | $ 5,511 | [1] |
Shares: | ||||||
Weighted average (in shares) | 294,058 | 303,854 | 294,752 | 312,434 | ||
Common stock equivalents (in shares) | 3,073 | 3,663 | 2,911 | 3,213 | ||
Total shares (in shares) | 297,131 | 307,517 | 297,663 | 315,647 | ||
EPS, basic (in dollars per share) | $ 4.79 | $ 9.07 | [1] | $ 14.03 | $ 17.64 | [1] |
EPS, effect of dilution (in dollars per share) | (0.05) | (0.10) | (0.14) | (0.18) | ||
EPS, diluted (in dollars per share) | $ 4.74 | $ 8.97 | [1] | $ 13.89 | $ 17.46 | [1] |
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Stock Options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive options (in shares) | 0.9 | 0 | 0.9 | 1.3 |
Earnings Per Share - Shares of
Earnings Per Share - Shares of Common Stock Held in Treasury (Details) - shares shares in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Earnings Per Share [Abstract] | |||
Shares of common stock held in treasury | 105.7 | 99.1 | 91.8 |
Debt - Outstanding Amounts of D
Debt - Outstanding Amounts of Debt and Finance Leases (Details) - USD ($) | Sep. 30, 2023 | Jan. 15, 2023 | Dec. 31, 2022 | |
Short-term debt | ||||
Commercial paper | $ 1,513,000,000 | $ 0 | ||
Other, including finance leases | 39,000,000 | 33,000,000 | ||
Total short-term debt | 3,046,000,000 | 2,993,000,000 | [1] | |
Long-term debt | ||||
Other, including finance leases | 62,000,000 | 66,000,000 | ||
Total long-term debt | 28,094,000,000 | 28,100,000,000 | [1] | |
$17 million, 8.3% Notes due January 2023 | ||||
Short-term debt | ||||
Current maturities | 0 | 17,000,000 | ||
Long-term debt | ||||
Gross value | $ 17,000,000 | |||
Interest Rate | 8.30% | |||
$63 million, 7.65% Notes due March 2023 | ||||
Short-term debt | ||||
Current maturities | $ 0 | 63,000,000 | ||
Long-term debt | ||||
Gross value | $ 63,000,000 | |||
Interest Rate | 7.65% | |||
$700 million, Floating Rate Notes due July 2023 | ||||
Short-term debt | ||||
Current maturities | $ 0 | 700,000,000 | ||
Long-term debt | ||||
Gross value | 700,000,000 | |||
$1,000 million, 3% Notes due July 2023 | ||||
Short-term debt | ||||
Current maturities | 0 | 994,000,000 | ||
Long-term debt | ||||
Gross value | $ 1,000,000,000 | |||
Interest Rate | 3% | |||
$1,187 million, 3.75% Notes due July 2023 | ||||
Short-term debt | ||||
Current maturities | $ 0 | 1,186,000,000 | ||
Long-term debt | ||||
Gross value | $ 1,187,000,000 | |||
Interest Rate | 3.75% | |||
$500 million, 0.613% Notes due March 2024 | ||||
Short-term debt | ||||
Current maturities | $ 500,000,000 | 0 | ||
Long-term debt | ||||
Long-term debt | 0 | 499,000,000 | ||
Gross value | $ 500,000,000 | |||
Interest Rate | 0.613% | |||
$1,000 million, 3.500% Notes due June 2024 | ||||
Short-term debt | ||||
Current maturities | $ 994,000,000 | 0 | ||
Long-term debt | ||||
Long-term debt | 0 | 990,000,000 | ||
Gross value | $ 1,000,000,000 | |||
Interest Rate | 3.50% | |||
$900 million, 3.250% Notes due April 2025 (1) | ||||
Long-term debt | ||||
Long-term debt | $ 871,000,000 | 872,000,000 | ||
Gross value | $ 900,000,000 | |||
Interest Rate | 3.25% | |||
$2,200 million, 4.125% Notes due November 2025 | ||||
Long-term debt | ||||
Long-term debt | $ 2,197,000,000 | 2,195,000,000 | ||
Gross value | $ 2,200,000,000 | |||
Interest Rate | 4.125% | |||
$1,500 million, 4.500% Notes due February 2026 | ||||
Long-term debt | ||||
Long-term debt | $ 1,502,000,000 | 1,503,000,000 | ||
Gross value | $ 1,500,000,000 | |||
Interest Rate | 4.50% | |||
$800 million, 1.250% Notes due March 2026 | ||||
Long-term debt | ||||
Long-term debt | $ 798,000,000 | 797,000,000 | ||
Gross value | $ 800,000,000 | |||
Interest Rate | 1.25% | |||
$700 million, 5.685% Notes due March 2026 | ||||
Long-term debt | ||||
Long-term debt | $ 697,000,000 | 0 | ||
Gross value | $ 700,000,000 | |||
Interest Rate | 5.685% | |||
$1,500 million, 3.400% Notes due March 2027 | ||||
Long-term debt | ||||
Long-term debt | $ 1,448,000,000 | 1,436,000,000 | ||
Gross value | $ 1,500,000,000 | |||
Interest Rate | 3.40% | |||
$259 million, 7.875% Debentures due May 2027 | ||||
Long-term debt | ||||
Long-term debt | $ 259,000,000 | 259,000,000 | ||
Gross value | $ 259,000,000 | |||
Interest Rate | 7.875% | |||
$600 million, 3.050% Notes due October 2027 | ||||
Long-term debt | ||||
Long-term debt | $ 597,000,000 | 597,000,000 | ||
Gross value | $ 600,000,000 | |||
Interest Rate | 3.05% | |||
$3,800 million, 4.375% Notes due October 2028 | ||||
Long-term debt | ||||
Long-term debt | $ 3,787,000,000 | 3,785,000,000 | ||
Gross value | $ 3,800,000,000 | |||
Interest Rate | 4.375% | |||
$1,500 million, 2.400% Notes due March 2030 | ||||
Long-term debt | ||||
Long-term debt | $ 1,492,000,000 | 1,492,000,000 | ||
Gross value | $ 1,500,000,000 | |||
Interest Rate | 2.40% | |||
$1,500 million, 2.375% Notes due 2031 | ||||
Long-term debt | ||||
Long-term debt | $ 1,359,000,000 | 1,380,000,000 | ||
Gross value | $ 1,500,000,000 | |||
Interest Rate | 2.375% | |||
$45 million, 8.080% Step Down Notes due January 2033 (2) | ||||
Long-term debt | ||||
Long-term debt | $ 45,000,000 | 45,000,000 | ||
Gross value | $ 45,000,000 | |||
Interest Rate | 8.08% | 8.08% | ||
$800 million, 5.400% Notes due March 2033 | ||||
Long-term debt | ||||
Long-term debt | $ 794,000,000 | 0 | ||
Gross value | $ 800,000,000 | |||
Interest Rate | 5.40% | |||
$190 million, 6.150% Notes due November 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, 4.800% Notes due August 2038 | ||||
Long-term debt | ||||
Long-term debt | $ 2,193,000,000 | 2,192,000,000 | ||
Gross value | $ 2,200,000,000 | |||
Interest Rate | 4.80% | |||
$750 million, 3.200% Notes due March 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 March 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 November 2041 | ||||
Long-term debt | ||||
Long-term debt | $ 487,000,000 | 488,000,000 | ||
Gross value | $ 448,000,000 | |||
Interest Rate | 6.125% | |||
$317 million, 5.375% Notes due February 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, 4.800% Notes due July 2046 | ||||
Long-term debt | ||||
Long-term debt | $ 1,466,000,000 | 1,466,000,000 | ||
Gross value | $ 1,500,000,000 | |||
Interest Rate | 4.80% | |||
$1,000 million, 3.875% Notes due October 2047 | ||||
Long-term debt | ||||
Long-term debt | $ 989,000,000 | 989,000,000 | ||
Gross value | $ 1,000,000,000 | |||
Interest Rate | 3.875% | |||
$3,000 million, 4.900% Notes due December 2048 | ||||
Long-term debt | ||||
Long-term debt | $ 2,969,000,000 | 2,968,000,000 | ||
Gross value | $ 3,000,000,000 | |||
Interest Rate | 4.90% | |||
$1,250 million, 3.400% Notes due March 2050 | ||||
Long-term debt | ||||
Long-term debt | $ 1,237,000,000 | 1,236,000,000 | ||
Gross value | $ 1,250,000,000 | |||
Interest Rate | 3.40% | |||
$1,500 million, 3.400% Notes due March 2051 | ||||
Long-term debt | ||||
Long-term debt | $ 1,478,000,000 | $ 1,478,000,000 | ||
Gross value | $ 1,500,000,000 | |||
Interest Rate | 3.40% | |||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Debt - Debt Issuances and Redem
Debt - Debt Issuances and Redemptions (Details) $ in Millions | Mar. 07, 2023 USD ($) | Sep. 30, 2023 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 1,500 | |
$700 million, 5.685% Notes due March 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.685% | |
$700 million, 5.685% Notes due March 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 700 | |
Interest rate | 5.685% | |
Net proceeds | $ 698 | |
$700 million, 5.685% Notes due March 2026 | Senior Notes | Treasury rate | ||
Debt Instrument [Line Items] | ||
Redemption price discount, spread on variable rate | 0.0020 | |
$800 million, 5.400% Notes due March 2033 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.40% | |
$800 million, 5.400% Notes due March 2033 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 800 | |
Interest rate | 5.40% | |
Net proceeds | $ 796 | |
$800 million, 5.400% Notes due March 2033 | Senior Notes | Treasury rate | ||
Debt Instrument [Line Items] | ||
Redemption price discount, spread on variable rate | 0.0025 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 30, 2023 USD ($) position revolvingCreditFacility | Apr. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Commercial paper average interest rate | 5.50% | |||||
Interest expense on long-term and short-term debt | $ 353,000,000 | $ 317,000,000 | $ 1,048,000,000 | $ 947,000,000 | ||
Commercial Paper | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 5,000,000,000 | 5,000,000,000 | ||||
Revolving credit agreements, April 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding balances | $ 0 | $ 0 | ||||
Aggregate amount of options to increase commitments | $ 1,500,000,000 | |||||
Maximum total commitment | $ 6,500,000,000 | |||||
Number of revolving credit facilities | revolvingCreditFacility | 2 | |||||
Number of participating banks | position | 21 | |||||
Leverage ratio covenant | 60% | |||||
Five-year Revolving Credit Agreement, Maturing April 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 4,000,000,000 | |||||
Credit agreement term | 5 years | |||||
Credit agreement extension term | 1 year | |||||
Five-year Revolving Credit Agreement, Maturing April 2028 | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 500,000,000 | |||||
364-day Revolving Credit Agreement, Maturing April 2024 | ||||||
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 | |||||
Revolving Credit And Letter Of Credit Facility Maturing April 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 3,000,000,000 | |||||
Credit agreement term | 5 years | |||||
Revolving Credit Facility Maturing April 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||
Credit agreement term | 3 years | |||||
364 Day Revolving Credit Agreement, Maturing April 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||
Credit agreement term | 364 days |
Common and Preferred Stock - Di
Common and Preferred Stock - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||||||||
Oct. 25, 2023 | Sep. 21, 2023 | Jun. 22, 2023 | Mar. 23, 2023 | Sep. 22, 2022 | Jun. 23, 2022 | Mar. 24, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Subsequent Event [Line Items] | ||||||||||||||||
Common dividends declared (in dollars per share) | $ 1.23 | $ 1.23 | $ 1.23 | $ 1.12 | $ 1.12 | $ 1.12 | $ 3.69 | $ 3.36 | ||||||||
Amount per share (in dollars per share) | $ 1.23 | $ 1.23 | $ 1.23 | $ 1.12 | $ 1.12 | $ 1.12 | ||||||||||
Total amount paid | $ 362 | $ 362 | $ 368 | $ 341 | $ 352 | $ 357 | $ 1,092 | $ 1,050 | [1] | |||||||
Subsequent Event | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Common dividends declared (in dollars per share) | $ 1.23 | |||||||||||||||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Insurance and Contractholder _3
Insurance and Contractholder Liabilities - Account Balances (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Current | |||||
Market risk benefits, current | $ 41 | $ 51 | |||
Unearned Premiums, Current | 1,362 | 576 | |||
Current insurance and contractholder liabilities | 7,352 | 5,409 | [1] | ||
Non-current | |||||
Market risk benefits, noncurrent | 893 | 1,217 | |||
Unearned premiums, noncurrent | 23 | 22 | |||
Non-current insurance and contractholder liabilities | 11,286 | 11,976 | [1] | ||
Total | |||||
Market risk benefits | 934 | 1,268 | $ 1,337 | ||
Unearned premiums | 1,385 | 598 | 1,283 | ||
Total insurance and contractholder liabilities | 18,638 | 17,385 | 18,281 | ||
Cigna Healthcare | |||||
Current | |||||
Unpaid claims and claim expenses, current | 5,240 | 4,117 | |||
Future policy benefits, current | 64 | 43 | |||
Contractholder deposit funds, current | 12 | 14 | |||
Non-current | |||||
Unpaid claims and claim expenses, noncurrent | 77 | 59 | |||
Future policy benefits, noncurrent | 526 | 544 | |||
Contractholder deposit funds, noncurrent | 139 | 157 | |||
Total | |||||
Unpaid claims and claim expenses | 5,317 | 4,176 | 4,250 | $ 4,261 | |
Total liability for future policy benefits | 590 | 587 | 593 | ||
Contractholder deposit funds | 151 | 171 | 181 | ||
Other Operations | |||||
Current | |||||
Unpaid claims and claim expenses, current | 105 | 107 | |||
Future policy benefits, current | 164 | 150 | |||
Contractholder deposit funds, current | 364 | 351 | |||
Non-current | |||||
Unpaid claims and claim expenses, noncurrent | 169 | 177 | |||
Future policy benefits, noncurrent | 3,216 | 3,442 | |||
Contractholder deposit funds, noncurrent | 6,243 | 6,358 | |||
Total | |||||
Unpaid claims and claim expenses | 274 | 284 | 280 | ||
Total liability for future policy benefits | 3,380 | 3,592 | 3,610 | ||
Contractholder deposit funds | $ 6,607 | $ 6,709 | $ 6,747 | $ 6,900 | |
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Insurance and Contractholder _4
Insurance and Contractholder Liabilities - Unpaid Claims and Claim Expenses - Cigna Healthcare - Activity (Details) - Cigna Healthcare - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total of incurred but not reported liabilities plus expected claim development on reported claims, including reported claims in process | $ 5,000 | $ 4,000 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 4,176 | 4,261 |
Less: Reinsurance and other amounts recoverable | 221 | 261 |
Beginning balance, net | 3,955 | 4,000 |
Incurred costs related to: | ||
Current year | 26,788 | 23,431 |
Prior years | (237) | (278) |
Total incurred | 26,551 | 23,153 |
Paid costs related to: | ||
Current year | 22,053 | 19,655 |
Prior years | 3,362 | 3,450 |
Total paid | 25,415 | 23,105 |
Ending balance, net | 5,091 | 4,048 |
Add: Reinsurance and other amounts recoverable | 226 | 202 |
Ending balance | $ 5,317 | $ 4,250 |
Insurance and Contractholder _5
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 | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 237 | $ 278 |
Favorable (unfavorable) variance, percentage | 0.80% | 0.90% |
Actual completion factors | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 45 | $ 81 |
Favorable (unfavorable) variance, percentage | 0.20% | 0.30% |
Medical cost trend | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 192 | $ 197 |
Favorable (unfavorable) variance, percentage | 0.60% | 0.60% |
Insurance and Contractholder _6
Insurance and Contractholder Liabilities - Future Policy Benefits - Interest Rates and Duration (Details) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Insurance and Contractholder Liabilities [Line Items] | ||
Observable inputs from published spot rate curve term (in years) | 30 years | |
Cigna Healthcare | ||
Insurance and Contractholder Liabilities [Line Items] | ||
Interest accretion rate | 2.85% | 2.34% |
Current discount rate | 6.03% | 5.67% |
Weighted average duration | 7 years | 7 years 6 months |
Other Operations | ||
Insurance and Contractholder Liabilities [Line Items] | ||
Interest accretion rate | 5.64% | 5.64% |
Current discount rate | 5.73% | 5.28% |
Weighted average duration | 10 years 10 months 24 days | 11 years 9 months 18 days |
Insurance and Contractholder _7
Insurance and Contractholder Liabilities - Future Policy Benefits - Present Value of Expected Premiums and Benefits (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cigna Healthcare | ||||
Liability for Future Policy Benefit, Expected Net Premium [Roll Forward] | ||||
Beginning balance | $ 8,557 | $ 9,314 | ||
Reversal of effect of beginning of period discount rate assumptions | 1,537 | (367) | ||
Effect of assumption changes and actual variances from expected experience (1) | $ 314 | $ 1,101 | ||
Issuances and lapses | 822 | 718 | ||
Net premiums collected | (1,019) | (956) | ||
Interest and other | 58 | 44 | ||
Ending balance at original discount rate | 10,269 | 9,854 | ||
Effect of end of period discount rate assumptions | (1,681) | (1,576) | ||
Ending balance | 8,588 | 8,278 | 8,557 | 9,314 |
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Beginning balance | 8,945 | 9,794 | ||
Reversal of effect of discount rate assumptions | 1,611 | (379) | ||
Effect of assumption changes and actual variances from expected experience (1) | 112 | 1,006 | ||
Issuances and lapses | 902 | 827 | ||
Benefit payments | (1,017) | (1,081) | ||
Interest and other | 184 | 161 | ||
Ending balance at original discount rate | 10,737 | 10,328 | ||
Effect of discount rate assumptions | (1,765) | (1,652) | ||
Ending balance | 8,972 | 8,676 | 8,945 | 9,794 |
Liability for future policy benefits | 384 | 398 | ||
Other | 206 | 195 | ||
Total liability for future policy benefits | 590 | 593 | 587 | |
Effect of actual variances from expectations | (12) | 58 | ||
Undiscounted expected future gross premiums | 18,500 | 17,100 | ||
Discounted expected future gross premiums | 12,500 | 11,800 | ||
Undiscounted expected future policy benefits | 13,100 | 12,400 | ||
Future policy benefit reserve, reinsurance recoverable | 154 | 156 | ||
Other Operations | ||||
Liability for Future Policy Benefit, Expected Future Policy Benefit [Roll Forward] | ||||
Total liability for future policy benefits | 3,380 | 3,610 | 3,592 | |
Undiscounted expected future policy benefits | 4,500 | 4,700 | ||
Future policy benefit reserve, reinsurance recoverable | 1,000 | 1,100 | ||
Future policy benefits, DPL | 390 | 380 | ||
Future policy benefit, excluding DPL | $ 3,000 | $ 3,200 | $ 3,200 | 4,300 |
Future policy benefits classified as liabilities of business held for sale | $ 3,800 |
Insurance and Contractholder _8
Insurance and Contractholder Liabilities - Contractholder Deposit Funds (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Insurance and Contractholder Liabilities [Line Items] | ||||
Contractholder deposit fund liabilities, approximate percent reinsured externally | 38% | |||
Cigna Healthcare | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Contractholder deposit funds | $ 151 | $ 171 | $ 181 | |
Other Operations | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Contractholder deposit funds | $ 6,607 | $ 6,709 | $ 6,747 | $ 6,900 |
Weighted average crediting rate | 3.27% | 3.14% | ||
Net amount at risk | $ 3,100 | $ 3,300 | ||
Cash surrender value | $ 2,800 | $ 2,800 | ||
Other Operations | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 To 0400 | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Contractholder deposit funds not reinsured externally, percent with guaranteed interest rates of 0300 to 0400 | 99% | 99% | ||
Contractholder deposit funds not reinsured externally | $ 4,100 | $ 4,100 | ||
Other Operations | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 To 0400 | Policyholder Account Balance, at Guaranteed Minimum Crediting Rate | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Contractholder deposit funds not reinsured externally | 1,200 | 1,200 | ||
Other Operations | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 To 0400 | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Contractholder deposit funds not reinsured externally | 1,200 | 1,200 | ||
Other Operations | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 To 0400 | Policyholder Account Balance, Above Guaranteed Minimum Crediting Rate, Based On Greater Of Guaranteed Minimum Cash Value Or Actual Cash Value | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Contractholder deposit funds not reinsured externally | $ 1,700 | $ 1,700 | ||
Percentage with cash values at more than 110% of guaranteed cash value | 90% | 90% | ||
Other Operations | Minimum | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Above guaranteed minimum crediting rate | 0.0050 | 0.0050 | ||
Other Operations | Minimum | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 To 0400 | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Guaranteed minimum credit rating | 3% | 3% | ||
Other Operations | Maximum | Policyholder Account Balance, above Guaranteed Minimum Crediting Rate, Range from 0051 to 0150 | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Above guaranteed minimum crediting rate | 0.0150 | 0.0150 | ||
Other Operations | Maximum | Policyholder Account Balance, Guaranteed Minimum Crediting Rate, Range from 0300 To 0400 | ||||
Insurance and Contractholder Liabilities [Line Items] | ||||
Guaranteed minimum credit rating | 4% | 4% |
Insurance and Contractholder _9
Insurance and Contractholder Liabilities - Summary of Market Risk Benefit (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Insurance Loss Reserves [Abstract] | ||
Annuitization election period | 30 days | |
Market Risk Benefit [Roll Forward] | ||
Balance, beginning of year | $ 1,268 | $ 1,824 |
Balance, beginning of year, before the effect of nonperformance risk (own credit risk) | 1,379 | 1,949 |
Changes due to expected run-off | (15) | (44) |
Changes due to capital markets versus expected | (352) | (510) |
Changes due to policyholder behavior versus expected | (1) | (4) |
Assumption changes | (16) | 65 |
Balance, end of period, before the effect of changes in nonperformance risk (own credit risk) | 995 | 1,456 |
Nonperformance risk (own credit risk), end of period | (61) | (119) |
Balance, end of period | 934 | 1,337 |
Reinsured market risk benefit, end of period | $ 993 | $ 1,450 |
Insurance and Contractholder_10
Insurance and Contractholder Liabilities - Net Amount of Risk and Average Age of Contractholders (Details) - Variable Annuity - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Net Amount at Risk by Product and Guarantee [Line Items] | ||
Net amount at risk | $ 1,986 | $ 2,881 |
Average attained age of contractholders (weighted by exposure) | 75 years 10 months 24 days | 74 years |
Reinsurance - Reinsurance Recov
Reinsurance - Reinsurance Recoverables (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | $ 4,200 | ||
Allowance for uncollectible reinsurance | (35) | ||
Market risk benefits | 993 | $ 1,450 | |
Total reinsurance recoverables | 5,158 | ||
Berkshire Hathway Life Insurance Company Of Nebraska and Other Recoverables | |||
Ceded Credit Risk [Line Items] | |||
Market risk benefits | 993 | ||
Fair value of collateral contractually required to meet or exceed carrying value of recoverable | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 694 | ||
Collateral provisions exist that may mitigate risk of credit loss | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 3,093 | ||
No collateral | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 413 | ||
Variable Annuity | Berkshire Hathway Life Insurance Company Of Nebraska and Other Recoverables | |||
Ceded Credit Risk [Line Items] | |||
Market risk benefits | $ 1,400 | ||
Variable Annuity | Berkshire Hathway Life Insurance Company Of Nebraska and Other Recoverables | GMDB | |||
Ceded Credit Risk [Line Items] | |||
Market risk benefits | $ 711 | ||
Ongoing Operations | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 424 | ||
Ongoing Operations | Other Current Assets | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 238 | ||
Ongoing Operations | A- equivalent and higher current ratings | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 86 | ||
Ongoing Operations | BBB- to BBB+ equivalent current credit ratings | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 59 | ||
Ongoing Operations | Not rated | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 279 | ||
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 157 | ||
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 | 157 | ||
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 3 | ||
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 | 3 | ||
Ongoing Operations | No collateral | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 264 | ||
Ongoing Operations | No collateral | A- equivalent and higher current ratings | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 86 | ||
Ongoing Operations | No collateral | BBB- to BBB+ equivalent current credit ratings | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 59 | ||
Ongoing Operations | No collateral | Not rated | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 119 | ||
Acquisition, disposition or run-off activities | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 3,776 | ||
Acquisition, disposition or run-off activities | BBB+ equivalent and higher current ratings | Lincoln National Life and Lincoln Life & Annuity of New York | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 2,690 | ||
Acquisition, disposition or run-off activities | BBB+ equivalent and higher current ratings | Empower Annuity Insurance Company | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 130 | ||
Acquisition, disposition or run-off activities | BBB+ equivalent and higher current ratings | Prudential Insurance Company of America | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 364 | ||
Acquisition, disposition or run-off activities | BBB+ equivalent and higher current ratings | Life Insurance Company of North America | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 372 | ||
Acquisition, disposition or run-off activities | BBB+ equivalent and higher current ratings | Other | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 209 | ||
Acquisition, disposition or run-off activities | Not rated | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 11 | ||
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 | 537 | ||
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | BBB+ 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 | BBB+ equivalent and higher current ratings | Empower Annuity Insurance Company | |||
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 | BBB+ equivalent and higher current ratings | Prudential Insurance Company of America | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 364 | ||
Acquisition, disposition or run-off activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | BBB+ 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 | BBB+ equivalent and higher current ratings | Other | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 173 | ||
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 | 3,090 | ||
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | BBB+ equivalent and higher current ratings | Lincoln National Life and Lincoln Life & Annuity of New York | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 2,690 | ||
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | BBB+ equivalent and higher current ratings | Empower Annuity Insurance Company | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 0 | ||
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | BBB+ 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 | BBB+ equivalent and higher current ratings | Life Insurance Company of North America | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 372 | ||
Acquisition, disposition or run-off activities | Collateral provisions exist that may mitigate risk of credit loss | BBB+ equivalent and higher current ratings | Other | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 21 | ||
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 | 7 | ||
Acquisition, disposition or run-off activities | No collateral | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 149 | ||
Acquisition, disposition or run-off activities | No collateral | BBB+ 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 | BBB+ equivalent and higher current ratings | Empower Annuity Insurance Company | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 130 | ||
Acquisition, disposition or run-off activities | No collateral | BBB+ 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 | BBB+ 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 | BBB+ equivalent and higher current ratings | Other | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | 15 | ||
Acquisition, disposition or run-off activities | No collateral | Not rated | |||
Ceded Credit Risk [Line Items] | |||
Reinsurance recoverables | $ 4 |
Reinsurance - Effective Exit of
Reinsurance - Effective Exit of Variable Annuity Reinsurance Business (Details) - Variable Annuity - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Ceded Credit Risk [Line Items] | |||||
Market risk benefits reinsurance recoverable, including IBNR and outstanding claims, less premiums due | $ 1,014 | $ 1,014 | $ 1,398 | ||
Incurred but not yet paid and outstanding claims | 21 | 21 | 27 | ||
Premiums due | 3 | ||||
Impact of non-performance risk | |||||
Berkshire | |||||
Ceded Credit Risk [Line Items] | |||||
Percent of future claim payments reinsured | 100% | 100% | |||
Remaining overall limit under reinsurance agreement | $ 3,100 | $ 3,100 | |||
Market risk benefits reinsurance recoverable, including IBNR and outstanding claims, less premiums due | 810 | $ 810 | 1,116 | ||
Berkshire | Secured | Market risk benefits reinsurance recoverable, including IBNR and outstanding claims, less premiums due | Collateralization risk | |||||
Ceded Credit Risk [Line Items] | |||||
Concentration percentage | 90% | ||||
Sun Life Assurance Company of Canada | |||||
Ceded Credit Risk [Line Items] | |||||
Market risk benefits reinsurance recoverable, including IBNR and outstanding claims, less premiums due | 81 | $ 81 | 115 | ||
Liberty Re (Bermuda) Ltd. | |||||
Ceded Credit Risk [Line Items] | |||||
Market risk benefits reinsurance recoverable, including IBNR and outstanding claims, less premiums due | 94 | $ 94 | 128 | ||
Liberty Re (Bermuda) Ltd. | Secured | Market risk benefits reinsurance recoverable, including IBNR and outstanding claims, less premiums due | Collateralization risk | |||||
Ceded Credit Risk [Line Items] | |||||
Concentration percentage | 100% | ||||
SCOR SE | |||||
Ceded Credit Risk [Line Items] | |||||
Market risk benefits reinsurance recoverable, including IBNR and outstanding claims, less premiums due | $ 29 | $ 29 | $ 39 | ||
SCOR SE | Secured | Market risk benefits reinsurance recoverable, including IBNR and outstanding claims, less premiums due | Collateralization risk | |||||
Ceded Credit Risk [Line Items] | |||||
Concentration percentage | 85% |
Investments - Investments by Ca
Investments - Investments by Category (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | |||
Current investments | $ 1,046 | $ 905 | [1] |
Long-term investments | 18,974 | 16,288 | [1] |
Total investments | 20,020 | 17,193 | |
Debt securities | |||
Schedule of Investments [Line Items] | |||
Current investments | 612 | 654 | |
Long-term investments | 8,927 | 9,218 | |
Total investments | 9,539 | 9,872 | |
Equity securities | |||
Schedule of Investments [Line Items] | |||
Current investments | 31 | 45 | |
Long-term investments | 3,345 | 577 | |
Total investments | 3,376 | 622 | |
Commercial mortgage loans | |||
Schedule of Investments [Line Items] | |||
Current investments | 215 | 67 | |
Long-term investments | 1,402 | 1,547 | |
Total investments | 1,617 | 1,614 | |
Policy loans | |||
Schedule of Investments [Line Items] | |||
Current investments | 0 | 0 | |
Long-term investments | 1,224 | 1,218 | |
Total investments | 1,224 | 1,218 | |
Other long-term investments | |||
Schedule of Investments [Line Items] | |||
Current investments | 0 | 0 | |
Long-term investments | 4,076 | 3,728 | |
Total investments | 4,076 | 3,728 | |
Short-term investments | |||
Schedule of Investments [Line Items] | |||
Current investments | 188 | 139 | |
Long-term investments | 0 | 0 | |
Total investments | $ 188 | $ 139 | |
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Investments - Debt Securities b
Investments - Debt Securities by Contractual Maturity Periods (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Due in one year or less | $ 657 | |
Due after one year through five years | 3,983 | |
Due after five years through ten years | 3,306 | |
Due after ten years | 2,294 | |
Mortgage and other asset-backed securities | 394 | |
Total | 10,634 | $ 10,842 |
Fair Value | ||
Due in one year or less | 631 | |
Due after one year through five years | 3,710 | |
Due after five years through ten years | 2,914 | |
Due after ten years | 1,938 | |
Mortgage and other asset-backed securities | 346 | |
Total | $ 9,539 | $ 9,872 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Investments [Line Items] | |||
Derivative gain (loss) recognized in the income statement | |||
Derivative gain (loss) recognized in other comprehensive income | |||
Derivative gain (loss) reclassified from other comprehensive income into shareholders' net income | |||
Equity securities with no readily determinable fair value | 3,323 | $ 484 | |
VillageMD | |||
Schedule of Investments [Line Items] | |||
Equity securities with no readily determinable fair value | $ 2,700 | ||
Dividend | 5.50% | ||
Value of shares for annual dividend accrual | $ 2,200 |
Investments - Gross Unrealized
Investments - Gross Unrealized Appreciation (Depreciation) on Debt Securities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 10,634 | $ 10,842 |
Allowance for Credit Loss | (45) | (44) |
Unrealized Appreciation | 73 | 133 |
Unrealized Depreciation | (1,123) | (1,059) |
Fair Value | 9,539 | 9,872 |
Federal government and agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 278 | 292 |
Allowance for Credit Loss | 0 | 0 |
Unrealized Appreciation | 19 | 32 |
Unrealized Depreciation | (14) | (12) |
Fair Value | 283 | 312 |
State and local government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 41 | 43 |
Allowance for Credit Loss | 0 | 0 |
Unrealized Appreciation | 0 | 0 |
Unrealized Depreciation | (3) | (2) |
Fair Value | 38 | 41 |
Foreign government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 373 | 375 |
Allowance for Credit Loss | 0 | 0 |
Unrealized Appreciation | 4 | 11 |
Unrealized Depreciation | (21) | (21) |
Fair Value | 356 | 365 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,548 | 9,742 |
Allowance for Credit Loss | (45) | (44) |
Unrealized Appreciation | 50 | 89 |
Unrealized Depreciation | (1,037) | (981) |
Fair Value | 8,516 | 8,806 |
Mortgage and other asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 394 | 390 |
Allowance for Credit Loss | 0 | 0 |
Unrealized Appreciation | 0 | 1 |
Unrealized Depreciation | (48) | (43) |
Fair Value | $ 346 | $ 348 |
Investments - Summary of Debt S
Investments - Summary of Debt Securities with a Decline in Fair Value (Details) $ in Millions | Sep. 30, 2023 USD ($) position | Dec. 31, 2022 USD ($) position |
Total | ||
Fair Value | $ 7,998 | $ 7,901 |
Total Amortized Cost | 9,121 | 8,960 |
Unrealized Depreciation | $ (1,123) | $ (1,059) |
Number of Issues | position | 4,188 | 3,777 |
Investment grade | Debt securities | ||
One year or less | ||
Fair Value | $ 1,679 | $ 5,533 |
Amortized Cost | 1,746 | 6,127 |
Unrealized Depreciation | $ (67) | $ (594) |
Number of Issues | position | 589 | 1,659 |
More than one year | ||
Fair Value | $ 5,262 | $ 1,151 |
Amortized Cost | 6,200 | 1,487 |
Unrealized Depreciation | $ (938) | $ (336) |
Number of Issues | position | 1,646 | 462 |
Below investment grade | Debt securities | ||
One year or less | ||
Fair Value | $ 283 | $ 887 |
Amortized Cost | 291 | 964 |
Unrealized Depreciation | $ (8) | $ (77) |
Number of Issues | position | 1,094 | 1,287 |
More than one year | ||
Fair Value | $ 774 | $ 330 |
Amortized Cost | 884 | 382 |
Unrealized Depreciation | $ (110) | $ (52) |
Number of Issues | position | 859 | 369 |
Investments - Equity Security I
Investments - Equity Security Investments (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | [1] | Dec. 31, 2022 | |
Cost | ||||
Equity securities with readily determinable fair values | $ 662 | $ 673 | ||
Equity securities with no readily determinable fair value | 3,217 | 380 | ||
Total | 3,879 | 1,053 | ||
Carrying Value | ||||
Equity securities with readily determinable fair values | 53 | 138 | ||
Equity securities with no readily determinable fair value | 3,323 | 484 | ||
Total | 3,376 | $ 622 | ||
Other Commitments [Line Items] | ||||
Amount funded | $ 4,005 | $ 2,457 | ||
Equity Securities FV NI | Product Concentration Risk | Health Care Sector | ||||
Other Commitments [Line Items] | ||||
Concentration percentage | 95% | |||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Investments [Line Items] | ||
Carrying value, after allowance for credit loss | $ 1,617 | $ 1,614 |
Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 1.97 | 1.89 |
Average Loan-to-Value Ratio | 62% | 60% |
Below 60% | ||
Schedule of Investments [Line Items] | ||
Carrying value, after allowance for credit loss | $ 909 | $ 901 |
Below 60% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 2.18 | 2.12 |
60% to 79% | ||
Schedule of Investments [Line Items] | ||
Carrying value, after allowance for credit loss | $ 542 | $ 564 |
60% to 79% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 1.80 | 1.73 |
80% to 100% | ||
Schedule of Investments [Line Items] | ||
Carrying value, after allowance for credit loss | $ 166 | $ 149 |
80% to 100% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 1.48 | 1.17 |
Investments - Carrying Values o
Investments - Carrying Values of Other Long-Term Investments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Investments [Line Items] | ||
Other long-term investments | $ 4,076 | $ 3,728 |
Real estate investments | ||
Schedule of Investments [Line Items] | ||
Other long-term investments | 1,511 | 1,319 |
Securities partnerships | ||
Schedule of Investments [Line Items] | ||
Other long-term investments | 2,360 | 2,166 |
Other | ||
Schedule of Investments [Line Items] | ||
Other long-term investments | $ 205 | $ 243 |
Investments - Realized Gains an
Investments - Realized Gains and Losses on Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Investments [Abstract] | ||||||
Net realized investment (losses) gains, excluding credit loss expense and asset write-downs | $ (9) | $ (67) | $ (29) | $ (454) | ||
Credit loss (expense) | (5) | (15) | (3) | (39) | ||
Other investment asset write-downs | 0 | 0 | (12) | 0 | ||
Net realized investment (losses), before income taxes | $ (14) | $ (82) | [1] | $ (44) | $ (493) | [1] |
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Financial assets at fair value: | ||
Equity securities | $ 53 | $ 138 |
Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 9,539 | 9,872 |
Equity securities | 53 | 138 |
Short-term investments | 188 | 139 |
Recurring | Forwards, swaps, options | ||
Financial assets at fair value: | ||
Derivative assets | 193 | 231 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 146 | 147 |
Equity securities | 3 | 6 |
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 |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 8,959 | 9,278 |
Equity securities | 48 | 132 |
Short-term investments | 188 | 139 |
Significant Other Observable Inputs (Level 2) | Recurring | Forwards, swaps, options | ||
Financial assets at fair value: | ||
Derivative assets | 193 | 230 |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 434 | 447 |
Equity securities | 2 | 0 |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring | Forwards, swaps, options | ||
Financial assets at fair value: | ||
Derivative assets | 0 | 1 |
Federal government and agency | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 283 | 312 |
Federal government and agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 146 | 147 |
Federal government and agency | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 137 | 165 |
Federal government and agency | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
State and local government | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 38 | 41 |
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 | 38 | 41 |
State and local government | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
Foreign government | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 356 | 365 |
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 | 356 | 365 |
Foreign government | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 0 | 0 |
Corporate | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 8,516 | 8,806 |
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 | 8,125 | 8,394 |
Corporate | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 391 | 412 |
Mortgage and other asset-backed | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | 346 | 348 |
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 | 303 | 313 |
Mortgage and other asset-backed | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt Securities | $ 43 | $ 35 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Separate Account Assets | ||||
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 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Unobservable Inputs (Details) - Recurring - Significant Unobservable Inputs (Level 3) $ in Millions | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 434 | $ 447 |
Corporate | Securities Priced by the Company | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 391 | $ 412 |
Corporate | Securities Priced by the Company | Minimum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0060 | 0.0060 |
Corporate | Securities Priced by the Company | Maximum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.1060 | 0.1060 |
Corporate | Securities Priced by the Company | Weighted Average | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0300 | 0.0270 |
Mortgage and other asset-backed securities | Securities Priced by the Company | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 43 | $ 35 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Minimum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0120 | 0.0105 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Maximum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0595 | 0.0520 |
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 | 0.0300 | 0.0310 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Transfers into/(out of) Level 3 | ||||
Change in unrealized gain or (loss) included in Other comprehensive (loss) income for assets held at the end of the reporting period | $ (4) | $ (33) | $ (9) | $ (60) |
Debt and Equity Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 454 | 447 | ||
Beginning balance, including held for sale assets | 512 | 796 | ||
(Losses) gains included in Shareholders' net income | (1) | 4 | (1) | 14 |
Losses included in Other comprehensive (loss) income | (5) | (11) | (5) | (62) |
Purchases, sales and settlements | ||||
Purchases | 6 | 81 | 10 | 157 |
Settlements | (5) | (54) | (32) | (206) |
Total purchases, sales and settlements | 1 | 27 | (22) | (49) |
Transfers into/(out of) Level 3 | ||||
Transfers into Level 3 | 0 | 6 | 71 | 124 |
Transfers out of Level 3 | (13) | (34) | (54) | (319) |
Total transfers into/(out of) Level 3 | (13) | (28) | 17 | (195) |
Ending balance | 436 | 504 | 436 | 504 |
Total losses included in Shareholders' net income attributable to instruments held at the reporting date | $ (1) | $ 0 | $ (1) | $ (2) |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Separate Account Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Guaranteed separate accounts | $ 552 | $ 585 | |
Non-guaranteed separate accounts | 5,790 | 5,936 | |
Subtotal | 6,342 | 6,521 | |
Non-guaranteed separate accounts priced at NAV as a practical expedient | 686 | 757 | |
Separate account assets | 7,028 | 7,278 | [1] |
Pension Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-guaranteed separate accounts | 3,800 | 4,000 | |
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 | 210 | 203 | |
Non-guaranteed separate accounts | 151 | 211 | |
Subtotal | 361 | 414 | |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Guaranteed separate accounts | 342 | 382 | |
Non-guaranteed separate accounts | 5,435 | 5,522 | |
Subtotal | 5,777 | 5,904 | |
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 | 204 | 203 | |
Subtotal | 204 | 203 | |
Significant Unobservable Inputs (Level 3) | Pension Plans | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Non-guaranteed separate accounts | $ 200 | $ 200 | |
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
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 | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |||||
Separate accounts assets classified in Level 3, period increase (decrease), including transfers in and out of Level 3 | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Unfunded Commitments | 204 | 204 | |||
Recurring | NAV | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Fair Value | 686 | 686 | $ 757 | ||
Securities partnerships | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Unfunded Commitments | 204 | $ 204 | |||
Securities partnerships | Recurring | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Expected liquidation period after inception | 10 years | ||||
Securities partnerships | Recurring | NAV | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Fair Value | 416 | $ 416 | 451 | ||
Real estate funds | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Unfunded Commitments | 0 | $ 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 | 266 | $ 266 | 302 | ||
Hedge funds | |||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||||
Unfunded Commitments | 0 | $ 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 | $ 4 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value under Certain Conditions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Realized investment losses on assets measured at fair value under certain conditions, after-tax | ||||
Realized investment gains on equity securities with no readily determinable fair value |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Disclosures for Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
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 | $ 26,225 | $ 28,653 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans | 1,470 | 1,491 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans | 1,617 | 1,614 |
Long-term debt, including current maturities, excluding finance leases | $ 29,526 | $ 30,994 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ in Billions | Sep. 30, 2023 USD ($) entity | Dec. 31, 2022 USD ($) entity |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of VIEs | entity | 0 | 0 |
Variable Interest Entity, Not Primary Beneficiary | Securities limited partnerships and real estate limited partnerships | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss, variable interest entities | $ 5.1 | $ 4.8 |
Variable Interest Entity, Not Primary Beneficiary | Real estate joint ventures | ||
Variable Interest Entity [Line Items] | ||
Maximum exposure to loss, variable interest entities | $ 0.9 | $ 0.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance | $ 45,464 | $ 45,701 | [1] | $ 44,688 | [1] | $ 46,976 | [1] |
Other comprehensive (loss) income, net of tax | (241) | 16 | [1] | (461) | (1,262) | [1] | |
Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests | 0 | 1 | [1] | 0 | (2) | [1] | |
Shareholders other comprehensive income (loss), net of tax | (241) | 15 | [1] | (461) | (1,260) | [1] | |
Balance | 45,702 | 44,806 | [1] | 45,702 | 44,806 | [1] | |
Accumulated Other Comprehensive (Loss) | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance | (1,878) | (2,343) | [1] | (1,658) | [1] | (1,068) | [1] |
Shareholders other comprehensive income (loss), net of tax | (241) | 15 | [1] | (461) | (1,260) | [1] | |
Balance | (2,119) | (2,328) | [1] | (2,119) | (2,328) | [1] | |
Securities and Derivatives | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance | (118) | (247) | (332) | 1,266 | |||
Other comprehensive income (loss) before reclassifications, before tax | (257) | (325) | 2 | (2,259) | |||
Other comprehensive income (loss), before reclassifications, tax | 57 | (7) | (9) | 393 | |||
Other comprehensive income (loss) before reclassifications, after-tax | (200) | (332) | (7) | (1,866) | |||
Reclassification adjustment, tax | (3) | (3) | (8) | (9) | |||
Net amounts reclassified from AOCI to net income | 8 | 182 | 29 | 203 | |||
Shareholders other comprehensive income (loss), net of tax | (192) | (150) | 22 | (1,663) | |||
Balance | (310) | (397) | (310) | (397) | |||
AOCI, Accumulated Gain (Loss), Debt Securities, Available-For-Sale And Derivatives, (Gain) Loss On Sale Of Business, Parent | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Reclassification adjustment, before tax | 0 | 171 | 0 | 171 | |||
Reclassification adjustment for losses included in Shareholders' net income (Net realized investment losses) | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Reclassification adjustment, before tax | 12 | 14 | 38 | 41 | |||
Reclassification adjustment for (gains) included in Shareholders' net income (Selling, general and administrative expenses) | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Reclassification adjustment, before tax | (1) | 0 | (1) | 0 | |||
Net long-duration insurance and contractholder liabilities measurement adjustments (1) | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance | (704) | (300) | (256) | (765) | |||
Shareholders other comprehensive income (loss), net of tax | (28) | (19) | (476) | 446 | |||
Balance | (732) | (319) | (732) | (319) | |||
Current period change in discount rate for certain long-duration liabilities | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive income (loss) before reclassifications, before tax | (27) | (55) | (585) | 549 | |||
Other comprehensive income (loss), before reclassifications, tax | 12 | 23 | 149 | (98) | |||
Other comprehensive income (loss) before reclassifications, after-tax | (15) | (32) | (436) | 451 | |||
Current period change in instrument-specific credit risk for market risk benefits | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive income (loss) before reclassifications, before tax | (17) | 16 | (50) | (6) | |||
Other comprehensive income (loss), before reclassifications, tax | 4 | (3) | 10 | 1 | |||
Other comprehensive income (loss) before reclassifications, after-tax | (13) | 13 | (40) | (5) | |||
Translation of foreign currencies including portion attributable to noncontrolling interest | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Other comprehensive income (loss) including temporary equity, before reclassifications, before tax | (31) | (90) | (36) | (332) | |||
Other comprehensive income (loss) including temporary equity, before reclassifications, tax | 2 | 0 | 4 | (28) | |||
Other comprehensive income (loss) including temporary equity, before reclassifications, after-tax | (29) | (90) | (32) | (360) | |||
Reclassification adjustment, before tax | 0 | 236 | 0 | 236 | |||
Reclassification adjustment, tax | 0 | 29 | 0 | 29 | |||
Net amounts reclassified from AOCI to net income | 0 | 265 | 0 | 265 | |||
Translation of foreign currencies, before tax | (31) | 146 | (36) | (96) | |||
Translation of foreign currencies, tax | 2 | 29 | 4 | 1 | |||
Other comprehensive (loss) income, net of tax | (29) | 175 | (32) | (95) | |||
Translation of foreign currencies attributable to parent | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance | (157) | (500) | (154) | (233) | |||
Shareholders other comprehensive income (loss), net of tax | (29) | 174 | (32) | (93) | |||
Balance | (186) | (326) | (186) | (326) | |||
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 | 0 | 1 | 0 | (2) | |||
Postretirement benefits liability | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance | (899) | (1,296) | (916) | (1,336) | |||
Other comprehensive income (loss) before reclassifications, before tax | 0 | 0 | (2) | 18 | |||
Other comprehensive income (loss), before reclassifications, tax | 0 | 0 | 1 | (4) | |||
Other comprehensive income (loss) before reclassifications, after-tax | 0 | 0 | (1) | 14 | |||
Reclassification adjustment, tax | (3) | (5) | (9) | (12) | |||
Net amounts reclassified from AOCI to net income | 8 | 10 | 26 | 36 | |||
Shareholders other comprehensive income (loss), net of tax | 8 | 10 | 25 | 50 | |||
Balance | (891) | (1,286) | (891) | (1,286) | |||
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 | 11 | 17 | 35 | 50 | |||
Reclassification adjustment for (gains) included in Shareholders' net income ((Loss) gain on sale of businesses) | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Reclassification adjustment, before tax | $ 0 | $ (2) | $ 0 | $ (2) | |||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Consolidated effective tax rate | 21.30% | 20.40% | 19.90% | 21% |
Deferred tax assets associated with unrealized investment losses | $ 331 | $ 331 |
Contingencies and Other Matte_2
Contingencies and Other Matters (Details) | 1 Months Ended | 9 Months Ended | |||
Sep. 29, 2023 USD ($) | Mar. 31, 2022 USD ($) | Apr. 19, 2016 claim | Mar. 31, 2016 USD ($) | Sep. 30, 2023 USD ($) | |
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 Elevance | Judicial Ruling | Pricing Concessions | |||||
Commitments And Contingencies [Line Items] | |||||
Damages sought by Elevance | $ 14,800,000,000 | ||||
Express Scripts Litigation with Elevance | Pending Litigation | Pricing Concessions Through Remaining Contract Term | |||||
Commitments And Contingencies [Line Items] | |||||
Damages sought by Elevance | $ 13,000,000,000 | ||||
Express Scripts Litigation with Elevance | Pending Litigation | Pricing Concessions After Remaining Term of Agreement | |||||
Commitments And Contingencies [Line Items] | |||||
Damages sought by Elevance | 1,800,000,000 | ||||
Express Scripts Litigation with Elevance | Pending Litigation | Damages for Service Issues | |||||
Commitments And Contingencies [Line Items] | |||||
Damages sought by Elevance | $ 150,000,000 | 100,000,000 | |||
Express Scripts counterclaims against Elevance | |||||
Commitments And Contingencies [Line Items] | |||||
Number of counts dismissed | claim | 2 | ||||
Number of counts | claim | 6 | ||||
Medicare Advantage, Private Individual | |||||
Commitments And Contingencies [Line Items] | |||||
Settled value plus interest and attorneys fees | $ 37,000,000 | ||||
Medicare Advantage, DOJ Investigations | |||||
Commitments And Contingencies [Line Items] | |||||
Settled value plus interest and attorneys fees | $ 135,000,000 | ||||
Indemnification obligations | |||||
Commitments And Contingencies [Line Items] | |||||
Liability for guarantees | 0 | ||||
Retiree and Life Insurance Benefits | Financial Guarantees | |||||
Commitments And Contingencies [Line Items] | |||||
Maximum guarantee exposure | 420,000,000 | ||||
Assets maintained by employers (minimum) | 420,000,000 | ||||
Liability for guarantees | $ 0 |
Segment Information - Summary o
Segment Information - Summary of Special Items (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pre-tax | ||||
(Benefits) charges associated with litigation matters (Selling, general and administrative expenses) | $ 201 | $ 0 | $ 201 | $ (28) |
(Gain) loss on sale of business | 21 | (1,735) | 21 | (1,735) |
Integration and transaction-related costs, pre-tax | 13 | 24 | 20 | 112 |
Charge for organizational efficiency plan (Selling, general and administrative expenses) | 0 | 0 | 0 | 22 |
Total impact from special items | 235 | (1,711) | 242 | (1,629) |
After-tax | ||||
(Benefits) charges associated with litigation matters (Selling, general and administrative expenses) | 171 | 0 | 171 | (20) |
(Gain) on sale of business | 19 | (1,388) | 19 | (1,388) |
Integration and transaction-related costs, after-tax | 9 | 23 | 15 | 86 |
Charge for organizational efficiency plan (Selling, general and administrative expenses) | 0 | 0 | 0 | 17 |
Total impact from special items | $ 199 | $ (1,365) | $ 205 | $ (1,305) |
Segment Information - Summarize
Segment Information - Summarized Segment Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | $ 48,727 | $ 45,077 | $ 143,275 | $ 133,822 | ||
Net investment income (loss) | 321 | 204 | [1] | 876 | 943 | [1] |
TOTAL REVENUES | 49,048 | 45,281 | [1] | 144,151 | 134,765 | [1] |
Net realized investment results from certain equity method investments | 30 | 80 | 22 | 134 | ||
Adjusted revenues | 49,078 | 45,361 | 144,173 | 134,899 | ||
Depreciation and amortization | 2,270 | 2,202 | [1] | |||
Income before income taxes | 1,840 | 3,491 | [1] | 5,325 | 7,039 | [1] |
Pre-tax adjustments to reconcile to adjusted income from operations | ||||||
(Income) loss attributable to noncontrolling interests | (44) | (22) | (142) | (54) | ||
Net realized investment (gains) losses | 44 | 162 | 66 | 627 | ||
Amortization of acquired intangible assets | 454 | 460 | [1] | 1,368 | 1,419 | [1] |
Special items | ||||||
(Benefits) charges associated with litigation matters | 201 | 0 | 201 | (28) | ||
(Gain) loss on sale of business | 21 | (1,735) | 21 | (1,735) | ||
Integration and transaction-related costs | 13 | 24 | 20 | 112 | ||
Charge for organizational efficiency plan | 0 | 0 | 0 | 22 | ||
Pre-tax adjusted income (loss) from operations | 2,529 | 2,380 | 6,859 | 7,402 | ||
Evernorth Health Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | 37,230 | 34,670 | 108,462 | 100,675 | ||
Cigna Healthcare | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | 11,426 | 10,329 | 34,581 | 31,411 | ||
Other Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | 71 | 78 | 232 | 1,736 | ||
Operating Segments | Evernorth Health Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Net investment income (loss) | 63 | 25 | 175 | 51 | ||
TOTAL REVENUES | 38,596 | 35,698 | 112,980 | 104,147 | ||
Net realized investment results from certain equity method investments | 0 | 0 | 0 | 0 | ||
Adjusted revenues | 38,596 | 35,698 | 112,980 | 104,147 | ||
Income before income taxes | 1,272 | 1,200 | 3,318 | 3,114 | ||
Pre-tax adjustments to reconcile to adjusted income from operations | ||||||
(Income) loss attributable to noncontrolling interests | (44) | (17) | (140) | (41) | ||
Net realized investment (gains) losses | 1 | 0 | 0 | 0 | ||
Amortization of acquired intangible assets | 443 | 442 | 1,330 | 1,329 | ||
Special items | ||||||
(Benefits) charges associated with litigation matters | 44 | 44 | 0 | |||
(Gain) loss on sale of business | 0 | 0 | 0 | 0 | ||
Integration and transaction-related costs | 0 | 0 | 0 | 0 | ||
Charge for organizational efficiency plan | 0 | |||||
Pre-tax adjusted income (loss) from operations | 1,716 | 1,625 | 4,552 | 4,402 | ||
Operating Segments | Cigna Healthcare | ||||||
Segment Reporting Information [Line Items] | ||||||
Net investment income (loss) | 176 | 101 | 454 | 545 | ||
TOTAL REVENUES | 12,738 | 11,097 | 38,178 | 33,771 | ||
Net realized investment results from certain equity method investments | 30 | 80 | 22 | 134 | ||
Adjusted revenues | 12,768 | 11,177 | 38,200 | 33,905 | ||
Income before income taxes | 1,019 | 876 | 3,252 | 2,953 | ||
Pre-tax adjustments to reconcile to adjusted income from operations | ||||||
(Income) loss attributable to noncontrolling interests | 0 | (1) | (2) | (2) | ||
Net realized investment (gains) losses | 35 | 158 | 64 | 542 | ||
Amortization of acquired intangible assets | 11 | 17 | 38 | 89 | ||
Special items | ||||||
(Benefits) charges associated with litigation matters | 157 | 157 | 0 | |||
(Gain) loss on sale of business | 0 | 0 | 0 | 0 | ||
Integration and transaction-related costs | 0 | 0 | 0 | 0 | ||
Charge for organizational efficiency plan | 0 | |||||
Pre-tax adjusted income (loss) from operations | 1,222 | 1,050 | 3,509 | 3,582 | ||
Operating Segments | Other Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net investment income (loss) | 76 | 75 | 230 | 344 | ||
TOTAL REVENUES | 147 | 153 | 462 | 2,080 | ||
Net realized investment results from certain equity method investments | 0 | 0 | 0 | 0 | ||
Adjusted revenues | 147 | 153 | 462 | 2,080 | ||
Income before income taxes | (3) | 1,755 | 47 | 2,138 | ||
Pre-tax adjustments to reconcile to adjusted income from operations | ||||||
(Income) loss attributable to noncontrolling interests | 0 | (4) | 0 | (11) | ||
Net realized investment (gains) losses | 8 | 4 | 2 | 85 | ||
Amortization of acquired intangible assets | 0 | 1 | 0 | 1 | ||
Special items | ||||||
(Benefits) charges associated with litigation matters | 0 | 0 | 0 | |||
(Gain) loss on sale of business | 21 | (1,735) | 21 | (1,735) | ||
Integration and transaction-related costs | 0 | 0 | 0 | 0 | ||
Charge for organizational efficiency plan | 0 | |||||
Pre-tax adjusted income (loss) from operations | 26 | 21 | 70 | 478 | ||
Corporate and Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net investment income (loss) | 6 | 3 | 17 | 3 | ||
TOTAL REVENUES | (2,433) | (1,667) | (7,469) | (5,233) | ||
Net realized investment results from certain equity method investments | 0 | 0 | 0 | 0 | ||
Adjusted revenues | (2,433) | (1,667) | (7,469) | (5,233) | ||
Income before income taxes | (448) | (340) | (1,292) | (1,166) | ||
Special items | ||||||
Pre-tax adjusted income (loss) from operations | (435) | (316) | (1,272) | (1,060) | ||
Corporate | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | 0 | 0 | 0 | 0 | ||
Pre-tax adjustments to reconcile to adjusted income from operations | ||||||
(Income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||
Net realized investment (gains) losses | 0 | 0 | 0 | 0 | ||
Amortization of acquired intangible assets | 0 | 0 | 0 | 0 | ||
Special items | ||||||
(Benefits) charges associated with litigation matters | 0 | 0 | (28) | |||
(Gain) loss on sale of business | 0 | 0 | 0 | 0 | ||
Integration and transaction-related costs | 13 | 24 | 20 | 112 | ||
Charge for organizational efficiency plan | 22 | |||||
Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | (2,439) | (1,670) | (7,486) | (5,236) | ||
Intersegment Eliminations | Evernorth Health Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | (1,303) | (1,003) | (4,343) | (3,421) | ||
Intersegment Eliminations | Cigna Healthcare | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | (1,136) | (667) | (3,143) | (1,815) | ||
Intersegment Eliminations | Other Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues from customers | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Segment Information - Revenue f
Segment Information - Revenue from External Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |||
Revenue from External Customer [Line Items] | ||||||
Premiums | $ 10,998 | $ 9,586 | [1] | $ 33,062 | $ 30,368 | [1] |
Total revenues from external customers | 48,727 | 45,077 | 143,275 | 133,822 | ||
Intersegment Eliminations | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 17 | 2 | 51 | 0 | ||
Total revenues from external customers | (2,439) | (1,670) | (7,486) | (5,236) | ||
Operating Segments | International businesses [to be] sold to Chubb | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 0 | 0 | 0 | 1,500 | ||
Operating Segments | Other | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 70 | 76 | 225 | 219 | ||
Evernorth Health Services | ||||||
Revenue from External Customer [Line Items] | ||||||
Total revenues from external customers | 37,230 | 34,670 | 108,462 | 100,675 | ||
Evernorth Health Services | Intersegment Eliminations | ||||||
Revenue from External Customer [Line Items] | ||||||
Total revenues from external customers | (1,303) | (1,003) | (4,343) | (3,421) | ||
Cigna Healthcare | ||||||
Revenue from External Customer [Line Items] | ||||||
Total revenues from external customers | 11,426 | 10,329 | 34,581 | 31,411 | ||
Cigna Healthcare | Intersegment Eliminations | ||||||
Revenue from External Customer [Line Items] | ||||||
Total revenues from external customers | (1,136) | (667) | (3,143) | (1,815) | ||
Other Operations | ||||||
Revenue from External Customer [Line Items] | ||||||
Total revenues from external customers | 71 | 78 | 232 | 1,736 | ||
Other Operations | Intersegment Eliminations | ||||||
Revenue from External Customer [Line Items] | ||||||
Total revenues from external customers | 0 | 0 | 0 | 0 | ||
Pharmacy revenues | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | 34,531 | 32,762 | [1] | 100,639 | 95,431 | [1] |
Pharmacy revenues | Intersegment Eliminations | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | (1,109) | (1,034) | (3,890) | (3,349) | ||
Network revenues | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | 16,926 | 16,583 | 49,080 | 48,221 | ||
Home delivery and specialty revenues | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | 16,324 | 15,583 | 48,943 | 45,550 | ||
Other revenues | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | 2,390 | 1,630 | 6,506 | 5,009 | ||
Cigna Healthcare | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 10,911 | 9,508 | 32,786 | 28,649 | ||
Insured | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 4,144 | 3,821 | 12,315 | 11,312 | ||
Stop loss | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 1,548 | 1,384 | 4,565 | 4,053 | ||
Other Commercial Medical Products | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 362 | 353 | 1,095 | 1,065 | ||
Medicare Advantage | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 2,189 | 1,949 | 6,605 | 6,080 | ||
Medicare Part D | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 224 | 240 | 984 | 986 | ||
Short-duration (Individual and family plans) | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 1,266 | 697 | 3,767 | 2,014 | ||
Long-duration(2) (Individual Medicare supplement and limited benefit health products) | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 344 | 332 | 1,015 | 993 | ||
Short-duration (Group medical insurance) | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 743 | 655 | 2,174 | 1,911 | ||
Long-duration(2) (Individual private medical insurance) | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Premiums | 91 | 77 | 266 | 235 | ||
Service | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | 3,198 | 2,729 | [1] | 9,574 | 8,023 | [1] |
Service | Intersegment Eliminations | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | (1,347) | (638) | (3,647) | (1,887) | ||
Fees | Evernorth Health Services | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | 2,862 | 1,875 | 8,199 | 5,289 | ||
Fees | Cigna Healthcare | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | 1,639 | 1,530 | 4,847 | 4,504 | ||
Fees | Other Operations | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | 1 | 0 | 3 | 9 | ||
Other revenues | Operating Segments | ||||||
Revenue from External Customer [Line Items] | ||||||
Revenues | $ 43 | $ (38) | $ 172 | $ 108 | ||
[1]Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023. See Note 2 to the Consolidated Financial Statements for further information. |
Segment Information - Financial
Segment Information - Financial and Performance Guarantees (Details) - USD ($) $ in Billions | Sep. 30, 2023 | Dec. 31, 2022 |
Pharmacy Benefits Management Services | Guarantees | ||
Loss Contingencies [Line Items] | ||
Guarantee liability | $ 1.3 | $ 1.3 |