v3.26.1
Insurance and Contractholder Liabilities (Tables)
 6 Months Ended
Jun. 30, 2026
Insurance Loss Reserves [Abstract]  
Insurance and Contractholder Liabilities
The Company's insurance and contractholder liabilities were comprised of the following:

June 30, 2026December 31, 2025June 30, 2025
(In millions)CurrentNon-currentTotalCurrentNon-currentTotalTotal
Unpaid claims and claim expenses
Cigna Healthcare
$5,161 $67 $5,228 $4,180 $61 $4,241 $4,636 
Other165 139 304 167 176 343 355 
Future policy benefits
Cigna Healthcare
39 154 193 38 153 191 192 
Other Operations140 2,989 3,129 142 3,081 3,223 3,292 
Contractholder deposit funds334 5,648 5,982 336 5,778 6,114 6,188 
Market risk benefits23 593 616 25 649 674 767 
Unearned premiums827 43 870 822 40 862 742 
Total insurance and contractholder liabilities$6,689 $9,633 $16,322 $5,710 $9,938 $15,648 $16,172 
Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment was as follows:
Six Months Ended June 30,
(In millions)
2026
2025 (1)
Beginning balance$4,241 $5,018 
Less: Reinsurance and other amounts recoverable147 159 
Beginning balance, net4,094 4,859 
Incurred costs related to:
Current year16,093 18,163 
Prior years(268)(297)
Total incurred15,825 17,866 
Paid costs related to:
Current year11,576 13,019 
Prior years3,258 3,889 
Total paid14,834 16,908 
Less: Divestiture and other— 1,323 
Ending balance, net5,085 4,494 
Add: Reinsurance and other amounts recoverable143 142 
Ending balance$5,228 $4,636 
Variances in Incurred Costs Related to Prior Years' Unpaid Claims and Claims Expenses
Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions were as follows:
Six Months Ended June 30,
20262025
(Dollars in millions)$
% (1)
$
% (2)
Actual completion factors and other
$144 0.4 %$170 0.5 %
Medical cost trend124 0.4 127 0.3 
Total favorable variance$268 0.8 %$297 0.8 %
(1)Percentage of current year incurred costs as reported for the year ended December 31, 2025.
(2)Percentage of current year incurred costs as reported for the year ended December 31, 2024.
Future Policy Benefit Activity
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
June 30, 2026June 30, 2025
Interest accretion rate 5.64 %5.64 %
Current discount rate 5.38 %5.27 %
Weighted average duration 10.7 years10.6 years
Summary of Market Risk Benefit
Market risk benefits activity was as follows:
Six Months Ended June 30,
(In millions)20262025
Balance, beginning of year$674 $785 
Balance, beginning of year, before the effect of nonperformance risk (own credit risk)714 838 
Changes due to expected run-off(12)(11)
Changes due to capital markets versus expected(43)(7)
Changes due to policyholder behavior versus expected(9)3 
Balance, end of period, before the effect of changes in nonperformance risk (own credit risk)650 823 
Nonperformance risk (own credit risk), end of period(34)(56)
Balance, end of period$616 $767 
Reinsured market risk benefit, end of period$650 $822 
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 8 to the Consolidated Financial Statements.
(Dollars in millions, excludes impact of reinsurance ceded)June 30, 2026June 30, 2025
Net amount at risk$1,019 $1,236 
Average attained age of contractholders (weighted by exposure)78.5 years78.0 years