v3.25.3
Insurance and Contractholder Liabilities
 9 Months Ended
Sep. 30, 2025
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, 2025December 31, 2024September 30, 2024
(In millions)CurrentNon-currentTotalCurrentNon-currentTotalTotal
Unpaid claims and claim expenses
Cigna Healthcare
$4,616 $60 $4,676 $4,932 $86 $5,018 $5,088 
Other155 180 335 147 144 291 312 
Future policy benefits
Cigna Healthcare
38 154 192 91 507 598 599 
Other Operations142 3,155 3,297 157 3,140 3,297 3,458 
Contractholder deposit funds
Cigna Healthcare
— — — 9 115 124 130 
Other Operations331 5,801 6,132 366 5,958 6,324 6,346 
Market risk benefits22 687 709 25 760 785 944 
Unearned premiums714 42 756 753 31 784 741 
Total6,480 10,741 17,221 17,618
Insurance and contractholder liabilities classified as liabilities of businesses held for sale (1)
(1,092)(487)(1,579)(1,568)
Total insurance and contractholder liabilities$6,018 $10,079 $16,097 $5,388 $10,254 $15,642 $16,050 
(1) Amounts classified as liabilities of businesses held for sale include $983 million of Unpaid claims, $408 million of Future policy benefits, $85 million of Unearned premiums and $103 million of Contractholder deposit funds as of December 31, 2024 and $937 million of Unpaid claims, $422 million of Future policy benefits, $98 million of Unearned premiums and $111 million of Contractholder deposit funds as of September 30, 2024.

Insurance and contractholder liabilities expected to be paid within one year are classified as current.
Unpaid Claims and Claim Expenses – Cigna Healthcare
This liability reflects estimates of the ultimate cost of claims that have been incurred but not reported, expected development on reported claims, claims 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.
The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $4.5 billion as of September 30, 2025 and $4.7 billion as of September 30, 2024. The decrease was driven by the HCSC transaction, partially offset by an increase in stop loss reserves primarily due to seasonality.
Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment was as follows:
Nine Months Ended September 30,
(In millions)
2025 (1)
2024 (1)
Beginning balance$5,018 $5,092 
Less: Reinsurance and other amounts recoverable159 236 
Beginning balance, net4,859 4,856 
Incurred costs related to:
Current year25,763 28,314 
Prior years(319)(422)
Total incurred25,444 27,892 
Paid costs related to:
Current year20,399 23,761 
Prior years4,055 4,059 
Total paid24,454 27,820 
Less: Divestiture and other1,323 — 
Ending balance, net4,526 4,928 
Add: Reinsurance and other amounts recoverable150 160 
Ending balance$4,676 $5,088 
(1) Includes unpaid claims amounts classified as liabilities of businesses held for sale prior to the completion of the HCSC transaction. As of December 31, 2024, September 30, 2024 and December 31, 2023, includes $983 million, $937 million and $823 million, respectively, classified as liabilities of businesses held for sale.
Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 10 to the Consolidated Financial Statements for additional information on reinsurance.
Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions were as follows:
Nine Months Ended September 30,
20252024
(Dollars in millions)$
% (1)
$
% (2)
Actual completion factors and other
$185 0.5 %$212 0.6 %
Medical cost trend134 0.3 210 0.6 
Total favorable variance$319 0.8 %$422 1.2 %
(1)Percentage of current year incurred costs as reported for the year ended December 31, 2024.
(2)Percentage of current year incurred costs as reported for the year ended December 31, 2023.

Favorable prior year development in both years primarily reflects lower than expected utilization of medical services as compared to our assumptions.
Future Policy Benefits
Cigna Healthcare

Future policy benefits for the Cigna Healthcare segment were primarily related to the businesses divested to HCSC on March 19, 2025. Excluding the divestiture, changes in the future policy benefits for the nine months ended September 30, 2025 and September 30, 2024 were not material.
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, 2025September 30, 2024
Interest accretion rate 5.64 %5.64 %
Current discount rate 5.11 %4.81 %
Weighted average duration 10.8 years11.3 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; therefore, future policy benefit reserves represent the present value of expected future policy benefits, discounted using the current discount rate, and the remaining amortizable deferred profit liability.
Future policy benefits for Other Operations include deferred profit liability of $0.4 billion as of both September 30, 2025 and September 30, 2024. Future policy benefits excluding deferred profit liability were $2.9 billion as of both September 30, 2025 and December 31, 2024, $3.1 billion as of September 30, 2024, and $3.2 billion as of December 31, 2023. Undiscounted expected future policy benefits were $4.2 billion as of September 30, 2025 and $4.3 billion as of September 30, 2024. As of both September 30, 2025 and September 30, 2024, $0.9 billion of the future policy benefit reserve was recoverable through treaties with external reinsurers.
Contractholder Deposit Funds
Contractholder deposit fund liabilities within Other Operations were $6.1 billion as of September 30, 2025, $6.3 billion as of December 31, 2024, $6.3 billion as of September 30, 2024 and $6.5 billion as of December 31, 2023. Approximately 37% of the balance is reinsured externally. Activity in these liabilities is presented net of reinsurance in the Consolidated Statements of Cash Flows. Changes in contractholder deposit fund liabilities generally relates to withdrawals and benefit payments, partially offset by deposits and interest credited.
As of September 30, 2025, the weighted average crediting rate, net amount at risk and cash surrender value for contractholder deposit fund liabilities not effectively exited through reinsurance were 3.26%, $2.6 billion and $2.8 billion, respectively. The comparative amounts as of September 30, 2024 were 3.33%, $2.9 billion and $2.8 billion, respectively. More than 99% of the $3.9 billion liability as of September 30, 2025 and the $4.0 billion liability as of September 30, 2024 not reinsured externally is for contracts with guaranteed interest rates of 3% - 4%, and approximately $1.2 billion and $1.1 billion, respectively, represented contracts with policies at the guarantee. At these same period ends, $1.1 billion and $1.2 billion was 50 - 150 basis points ("bps") above the guarantee, and the remaining $1.6 billion as of September 30, 2025 and $1.7 billion as of September 30, 2024 represented contracts above the guarantee that pay the policyholder based on the greater of a guaranteed minimum cash value or the actual cash value. As of both September 30, 2025 and September 30, 2024, more than 90% of these contracts have actual cash values of at least 110% of the guaranteed cash value.
Market Risk Benefits
Liabilities for market risk benefits ("MRBs") consist of variable annuity reinsurance contracts in Other Operations. These liabilities arise under annuities and riders to annuities written by ceding companies that guarantee the benefit received at death and, for a subset of policies, also provide contractholders the option, within 30 days of a policy anniversary after the appropriate waiting period, to elect minimum income payments. The Company's capital market risk exposure on variable annuity reinsurance contracts arises when the reinsured guaranteed minimum benefit exceeds the contractholder's account value in the related underlying mutual funds at the time the insurance benefit is payable under the respective contract. The Company receives and pays premium periodically based on the terms of the reinsurance agreements.
Market risk benefits activity was as follows:
Nine Months Ended September 30,
(In millions)20252024
Balance, beginning of year$785 $1,003 
Balance, beginning of year, before the effect of nonperformance risk (own credit risk)838 1,085 
Changes due to expected run-off(14)(7)
Changes due to capital markets versus expected(30)(78)
Changes due to policyholder behavior versus expected(20)(26)
Assumption changes(17)37 
Balance, end of period, before the effect of changes in nonperformance risk (own credit risk)757 1,011 
Nonperformance risk (own credit risk), end of period(48)(67)
Balance, end of period$709 $944 
Reinsured market risk benefit, end of period$756 $1,008 
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, 2025September 30, 2024
Net amount at risk$1,141 $1,361 
Average attained age of contractholders (weighted by exposure)78.2 years77.6 years