30 unchanged sentences
The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
−Removed: Assessment of Held for Sale and Associated Loss on Sale
−Removed: As described in Notes 6 and 20 to the consolidated financial statements, the Company determined that the Medicare Advantage, Medicare Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits and CareAllies businesses met the criteria to be classified as held for sale and aggregated and classified the assets and liabilities as held for sale in the Consolidated Balance Sheet as of December 31, 2023.
−Removed: The Company measured the assets and liabilities held for sale at estimated fair value less costs to sell and recognized an estimated loss of $1.5 billion pre-tax that was included within (Loss) gain on sale of businesses in the Consolidated Statement of Income for the year ended December 31, 2023.
−Removed: The estimated loss on sale represents primarily asset write-downs and estimated costs to sell.
−Removed: The fair value of a reporting unit is generally estimated based on discounted cash flow analysis and market approach models using assumptions that management believes a hypothetical market participant would use to determine a current transaction price.
−Removed: Following a change in reporting units or held for sale determination, goodwill is allocated using relative fair value.
−Removed: The significant assumptions and estimates used in determining fair value primarily include the discount rate and future cash flows.
−Removed: Future cash flows are primarily driven by forecasted revenues, benefit expenses, operating expenses and long-term growth rates.
−Removed: The principal considerations for our determination that performing procedures relating to the assessment of held for sale classification and the associated loss on sale is a critical audit matter are (i) the significant judgment by management when determining the held for sale classification and developing the fair value estimate of the reporting unit, including goodwill allocated to businesses held for sale using relative fair value;
−Removed: (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to (a) management's determination of the held for sale classification, and (b) management’s significant assumptions used to develop the fair value estimate of the reporting unit, including goodwill allocated to businesses held for sale using relative fair value related to the discount rate, forecasted revenues, benefit expenses, operating expenses and long-term growth rates (collectively referred to as the "significant assumptions");
+Added: Valuation of incurred but not reported (IBNR) liabilities plus expected development on reported claims and reported claims in process for the Cigna Healthcare segment
+Added: As described in Note 9 to the consolidated financial statements, the total of incurred but not reported (IBNR) liabilities plus expected development on reported claims and reported claims in process for the Cigna Healthcare segment as of December 31, 2024 was $4.6 billion.
+Added: Management estimates the liability for claims incurred in each month by applying the current estimates of completion factors to the current paid claims data.
+Added: As disclosed by management, the unpaid claims liability is primarily impacted by assumptions related to completion factors and medical cost trend.
+Added: Management develops completion factors by comparing the claim incurral date to the date claims were paid.
+Added: Completion factors are impacted by several key items including changes in:
+Added: 1) electronic (auto-adjudication) versus manual claim processing;
+Added: 2) frequency and timeliness of provider claims submissions;
+Added: 3) number of customers and 4) the mix of products.
+Added: Management uses historical completion factors combined with an analysis of current trends and operational factors to develop current estimates of completion factors.
+Added: Medical cost trend is primarily impacted by medical service utilization and unit costs.
+Added: The principal considerations for our determination that performing procedures relating to the valuation of IBNR liabilities plus expected development on reported claims and reported claims in process for the Cigna Healthcare segment is a critical audit matter are (i) the significant judgment by management when developing the estimate of IBNR liabilities plus expected development on reported claims and reported claims in process for the Cigna Healthcare segment;
+Added: (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating management's significant assumptions related to completion factors and medical cost trend;
and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.
−Removed: These procedures included testing the effectiveness of controls relating to (i) management’s assessment of held for sale classification and (ii) management’s estimation of the loss on sale of businesses, including controls over the fair value estimation of the reporting unit, including goodwill allocated to businesses held for sale using relative fair value.
−Removed: These procedures also included, among others, (i) evaluating the reasonableness of management’s assessment of held for sale classification, which included reading the written agreement in place between the parties related to the sale;
−Removed: (ii) testing management’s process for estimating the loss on sale of businesses and developing the fair value estimate of the reporting unit, including goodwill allocated to businesses held for sale using relative fair value;
−Removed: (iii) evaluating the appropriateness of the discounted cash flow analysis and market approach used by management;
−Removed: (iv) testing the completeness and accuracy of underlying data used in the discounted cash flow analysis and market approach;
−Removed: and (v) evaluating the reasonableness of the significant assumptions used by management.
−Removed: Evaluating management’s significant assumptions involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the reporting unit;
−Removed: (ii) the consistency with external market and industry data;
−Removed: and (iii) whether these assumptions were consistent with evidence obtained in other areas of the audit.
−Removed: Professionals with specialized skill and knowledge were used to assist in evaluating the reasonableness of the discount rate and long-term growth rates significant assumptions.
+Added: These procedures included testing the effectiveness of controls relating to the valuation of IBNR liabilities plus expected development on reported claims and reported claims in process for the Cigna Healthcare segment, including controls over the development of significant assumptions related to completion factors and medical cost trend.
+Added: These procedures also included, among others, (i) testing the completeness and accuracy of data provided by management and (ii) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management's estimate by performing one or a combination of procedures, including (a) developing an independent estimate of IBNR liabilities plus expected development on reported claims and reported claims in process for the Cigna Healthcare segment, and comparing the independent range of outcomes to management's estimate;
+Added: (b) evaluating the appropriateness of management’s actuarial methodologies and the reasonableness of management's significant assumptions related to completion factors and medical cost trend by considering claims reporting and payment experience, historical trends, and other industry data;
+Added: and (c) evaluating the consistency of management's actuarial methodologies period-over-period.
/s/ PricewaterhouseCoopers LLP
18 unchanged sentences
Income from operations
+Added: 9,417 8,536 8,450
Interest expense and other ( 1,435 ) ( 1,446 ) ( 1,228 )
−Removed: Debt extinguishment costs — — ( 141 )
−Removed: (Loss) gain on sale of businesses ( 1,499 ) 1,662 —
−Removed: Net realized investment (losses) gains
+Added: Net gain (loss) on sale of businesses
24 ( 1,499 ) 1,662
+Added: Net investment losses
+Added: ( 2,737 ) ( 78 ) ( 487 )
Income before income taxes
+Added: 5,269 5,513 8,397
TOTAL INCOME TAXES 1,491 141 1,615
−Removed: Net income 5,372 6,782 5,420
+Added: 3,778 5,372 6,782
Net income attributable to noncontrolling interests
3 unchanged sentences
Diluted $ 12.12 $ 17.39 $ 21.41
−Removed: (1) Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI") in 2023.
−Removed: See Note 2 to the Consolidated Financial Statements for further information.
The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.
8 unchanged sentences
Net long-duration insurance and contractholder liabilities measurement adjustments ( 1,067 ) ( 715 ) 509
−Removed: Net translation gains (losses) on foreign currencies
+Added: Net translation (losses) gains on foreign currencies
Postretirement benefits liability adjustment ( 22 ) 1 420
2 unchanged sentences
Total comprehensive income
+Added: 3,301 5,166 6,190
Comprehensive income (loss) attributable to noncontrolling interests
4 unchanged sentences
SHAREHOLDERS' COMPREHENSIVE INCOME
−Removed: (1) Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023.
−Removed: See Note 2 to the Consolidated Financial Statements for further information.
+Added: $ 2,957 $ 4,958 $ 6,114
The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.
45 unchanged sentences
Total liabilities and equity $ 155,881 $ 152,761
−Removed: (1) Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023.
−Removed: See Note 2 to the Consolidated Financial Statements for further information.
(1) Par value per share, $ 0.01 ;
5 unchanged sentences
(In millions) Common Stock Additional Paid-in Capital Accumulated Other Comprehensive (Loss) Retained Earnings Treasury Stock Shareholders' Equity Other Non- controlling Interests Total Equity Redeemable Noncontrolling Interests
−Removed: Balance at December 31, 2020, as previously disclosed
−Removed: $ 4 $ 28,975 $ ( 861 ) $ 28,575 $ ( 6,372 ) $ 50,321 $ 7 $ 50,328 $ 58
−Removed: Cumulative effect of adopting LDTI (ASU 2018-12) ( 164 ) 25 ( 139 ) ( 139 )
−Removed: Balance at December 31, 2020, as retrospectively restated 4 28,975 ( 1,025 ) 28,600 ( 6,372 ) 50,182 7 50,189 58
+Added: Balance at December 31, 2021 4 29,574 ( 1,068 ) 32,623 ( 14,175 ) 46,958 18 46,976 54
Effect of issuing stock for employee benefit plans 659 ( 76 ) 583 583
6 unchanged sentences
Other transactions impacting noncontrolling interests — — ( 72 ) ( 72 ) 3
−Removed: Balance at December 31, 2021, as retrospectively restated $ 4 $ 29,574 $ ( 1,068 ) $ 32,623 $ ( 14,175 ) $ 46,958 $ 18 $ 46,976 $ 54
+Added: Balance at December 31, 2022 $ 4 $ 30,233 $ ( 1,658 ) $ 37,940 $ ( 21,844 ) $ 44,675 $ 13 $ 44,688 $ 66
Effect of issuing stock for employee benefit plans 477 ( 112 ) 365 365
6 unchanged sentences
Other transactions impacting noncontrolling interests ( 41 ) ( 41 ) ( 20 ) ( 61 ) ( 139 )
−Removed: Balance at December 31, 2022, as retrospectively restated $ 4 $ 30,233 $ ( 1,658 ) $ 37,940 $ ( 21,844 ) $ 44,675 $ 13 $ 44,688 $ 66
+Added: Balance at December 31, 2023 $ 4 $ 30,669 $ ( 1,864 ) $ 41,652 $ ( 24,238 ) $ 46,223 $ 21 $ 46,244 $ 107
Effect of issuing stock for employee benefit plans 619 ( 120 ) 499 499
16 unchanged sentences
Depreciation and amortization 2,775 3,035 2,937
−Removed: Realized investment losses (gains), net
−Removed: 78 487 ( 198 )
+Added: Investment losses, net
Deferred income tax benefit
( 95 ) ( 1,659 ) ( 472 )
−Removed: Loss (gain) on sale of businesses
+Added: Net (gain) loss on sale of businesses
( 24 ) 1,499 ( 1,662 )
−Removed: Debt extinguishment costs — — 141
Net changes in assets and liabilities, net of non-operating effects:
23 unchanged sentences
Divestitures, net of cash sold 521 13 4,835
+Added: Renewable energy tax credit equity investments ( 1,030 ) ( 313 ) ( 125 )
Other, net 58 ( 19 ) ( 45 )
4 unchanged sentences
Net change in short-term debt ( 402 ) 1,198 ( 2,059 )
−Removed: Payments for debt extinguishment — — ( 136 )
Repayment of long-term debt ( 3,000 ) ( 2,967 ) ( 500 )
6 unchanged sentences
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash ( 20 ) 16 ( 86 )
−Removed: Net increase (decrease) in cash, cash equivalents and restricted cash 2,361 428 ( 4,697 )
+Added: Net increase in cash, cash equivalents and restricted cash 594 2,361 428
Cash, cash equivalents and restricted cash January 1, (1)
+Added: 8,337 5,976 5,548
Cash, cash equivalents and restricted cash, December 31, (1)
7 unchanged sentences
Interest paid $ 1,342 $ 1,330 $ 1,229
−Removed: (1) Amounts have been restated to reflect the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023.
−Removed: See Note 2 to the Consolidated Financial Statements for further information.
(1) Restricted cash and cash equivalents were reported in other long-term investments.
8 unchanged sentences
4 Supplier Finance Program
−Removed: Mergers, Acquisitions and Divestitures
5 Assets and Liabilities of Businesses Held for Sale
3 unchanged sentences
9 Insurance and Contractholder Liabilities
+Added: 10 Reinsurance
+Added: 11 Investments
12 Fair Value Measurements
3 unchanged sentences
W ORKFORCE M ANAGEMENT AND C OMPENSATION
−Removed: Organizational Efficiency Plan
17 Employee Incentive Plans
−Removed: P ROPERTY , L EASES AND O THER A SSET B ALANCES
+Added: P ROPERTY AND O THER A SSET B ALANCES
18 Goodwill, Other Intangibles , and Property and Equipment
1 unchanged sentence
19 Shareholders' Equity and Dividend Restrictions
+Added: 20 Income Taxes
21 Contingencies and Other Matters
2 unchanged sentences
Note 1 – Description of Business
−Removed: 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 committed to creating a better future built on the vitality of every individual and every community.
+Added: 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 committed to creating a better future for every individual and every community.
We relentlessly challenge ourselves to partner and innovate solutions for better health.
1 unchanged sentence
Our subsidiaries offer a differentiated set of pharmacy, medical, behavioral, dental, and related products and services.
−Removed: The majority of these products and services are offered through employers and other groups such as governmental and non-governmental organizations, unions and associations.
−Removed: Cigna Healthcare also offers commercial health and dental insurance and Medicare products to individuals in the United States and selected international markets.
+Added: The majority of these products and services are offered through employers and other entities, such as governmental and nongovernmental organizations, unions and associations.
+Added: Cigna Healthcare also offers health and dental insurance products to individuals in the United States and select international markets.
In addition to these operations, The Cigna Group also has certain run-off operations.
A full description of our segments follows:
−Removed: Evernorth Health Services partners with health plans, employers, governmental organizations and health care providers to solve challenges in the areas of pharmacy benefits, home delivery pharmacy, specialty pharmacy, specialty distribution, and care delivery and management solutions.
−Removed: Cigna Healthcare includes the U.S.
+Added: The Evernorth Health Services reportable segment includes the Pharmacy Benefit Services and the Specialty and Care Services operating segments, which provide independent and coordinated health solutions and capabilities to enable the health care system to work better and help people live richer, healthier lives.
+Added: Pharmacy Benefit Services drives high-quality, cost-effective pharmacy care through various services such as drug claim adjudication, retail pharmacy network administration, benefit design consultation, drug utilization review, drug formulary management and access to our home delivery pharmacy.
+Added: Specialty and Care Services provides specialty drugs for the treatment of complex and rare diseases, specialty distribution of pharmaceuticals and medical supplies, as well as clinical programs to help our clients drive better whole-person health outcomes through care services.
+Added: The Cigna Healthcare reportable segment includes the U.S.
Healthcare and International Health operating segments, which provide comprehensive medical and coordinated solutions to clients and customers.
−Removed: During the fourth quarter of 2023, the U.S.
−Removed: Commercial and U.S.
−Removed: Government operating segments merged to form the U.S.
−Removed: Healthcare operating segment.
−Removed: Healthcare provides commercial medical plans and specialty benefits and solutions for insured and self-insured clients, Medicare Advantage, Medicare Supplement and Medicare Part D plans for seniors and individual health insurance plans.
+Added: Healthcare provides medical plans and other benefits and solutions for insured clients, self-insured clients and individual health insurance plans.
+Added: Healthcare also includes the Medicare Advantage and related businesses pending divestiture to Health Care Services Corporation ("HCSC") (see Note 5 to the Consolidated Financial Statements for further information).
International Health provides health care solutions in our international markets, as well as health care benefits for globally mobile individuals and employees of multinational organizations.
−Removed: In January 2024, the Company entered into a definitive agreement to sell the Medicare Advantage, Medicare Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits and CareAllies businesses within the U.S.
−Removed: Healthcare operating segment to Health Care Service Corporation ("HCSC") for $ 3.3 billion cash, subject to applicable regulatory approvals and other customary closing conditions (the "HCSC transaction").
−Removed: Other Operations comprises the remainder of our business operations, which includes ongoing businesses and exited businesses.
−Removed: Our ongoing businesses include continuing business (corporate-owned life insurance ("COLI")), and our run-off businesses.
−Removed: Our run-off businesses include (i) variable annuity reinsurance business (formerly 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 which were sold through reinsurance agreements.
−Removed: Our exited businesses include the international life, accident and supplemental benefits businesses sold in July 2022 (the "Chubb transaction") and our interest in a joint venture in Türkiye sold in December 2022.
+Added: Other Operations comprises the remainder of our business operations, which includes certain continuing (corporate-owned life insurance ("COLI")), run-off and other non-strategic businesses.
+Added: Our run-off businesses include the (i) variable annuity reinsurance 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, which were sold through reinsurance agreements.
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.
4 unchanged sentences
These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").
−Removed: 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.
−Removed: See "Recent Accounting Pronouncements" below.
−Removed: 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.
+Added: Certain amounts in the Consolidated Statements of Cash Flows and Note 20 "Income Taxes" to the Consolidated Financial Statements have been reclassified to conform to current year presentation and did not have a significant impact on our Consolidated Financial Statements.
+Added: Amounts recorded in the Consolidated Financial Statements necessarily reflect management's estimates and assumptions about medical costs, investment, tax and receivable valuations, interest rates, and other factors.
Significant estimates are discussed throughout these Notes;
2 unchanged sentences
Recent Accounting Pronouncements
−Removed: Targeted Improvements to the Accounting for Long-Duration Contracts, Accounting Standards Update ("ASU") 2018-12 and related amendments
−Removed: The Cigna Group adopted LDTI January 1, 2023, which includes the following key provisions:
−Removed: • Changes to the measurement of the future policy benefits liability for traditional and limited-pay insurance contracts:
−Removed: • 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.
−Removed: • 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.
−Removed: The upper-medium grade fixed income instrument yield is interpreted to mean A-rated.
−Removed: • 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.
−Removed: Other related deferred or capitalized balances (such as unearned revenue liability and value of business acquired) may use this simplified amortization method.
−Removed: • 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.
−Removed: • Additional disclosures, including disaggregated roll forwards for the liability for future policy benefits, market risk benefits, contractholder deposit funds and DAC, as well as information about significant inputs, judgments, assumptions and methods used in measurement.
−Removed: • The transition methods applied at adoption were:
−Removed: • 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.
−Removed: The impact of remeasuring the future policy benefits liability for the discount rate was recorded through accumulated other comprehensive income.
−Removed: • DAC followed the transition method used for future policyholder benefits.
−Removed: • Market risk benefits were remeasured at fair value at the beginning of the earliest period presented.
−Removed: 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 was recognized in accumulated other comprehensive income.
−Removed: Effects of adoption:
−Removed: • The new guidance applies to our long-duration insurance products predominantly within the Cigna Healthcare segment and Other Operations.
−Removed: • The cumulative effects of adopting the new standard were immaterial.
−Removed: The impacts were a decrease to January 1, 2021 Shareholders' equity of $ 139 million and an increase to Shareholders' net income for the years ended December 31, 2022 and December 31, 2021 of $ 36 million and $ 5 million, respectively.
−Removed: The corresponding impact to diluted earnings per share was an increase of $ 0.11 and $ 0.02 for the years ended December 31, 2022 and December 31, 2021, respectively.
−Removed: • 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.
−Removed: • Prior period balances in the Company's footnote disclosures have been updated to reflect adjustments resulting from the adoption of this standard.
−Removed: Refer to Note 10 to the Consolidated Financial Statements for the Company's updated accounting policies.
−Removed: • It is possible that our income recognition pattern could change on a prospective basis for several reasons:
−Removed: • Applying periodic assumption updates, versus the locked-in model, may change our timing of profit or loss recognition.
−Removed: • 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.
−Removed: 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.
−Removed: 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.
−Removed: Accounting Guidance Not Yet Adopted
+Added: There were no new accounting standards adopted during the year ended December 31, 2024 that had a material impact on our Consolidated Financial Statements.
There are no significant accounting pronouncements not yet adopted as of December 31, 2024.
6 unchanged sentences
Inventories consist of prescription drugs and medical supplies and are stated at the lower of first-in-first-out cost or net realizable value.
−Removed: Other Assets (Current and Non-Current)
−Removed: Other current assets consist primarily of prepaid expenses, income tax receivables, accrued investment income and the current portion of reinsurance recoverables.
−Removed: Other assets (non-current) consist primarily of the Company's net deferred tax asset associated with foreign tax attributes (see Note 23) and the carrying value of our equity-method investments in business-related joint ventures in China, the U.S.
−Removed: and other foreign jurisdictions.
−Removed: Earnings or losses from these equity-method investments in joint ventures are recorded in Fees and other revenues.
−Removed: See Note 15 for additional information on unconsolidated subsidiaries.
−Removed: Additionally, Other assets (non-current) includes operating lease right-of-use assets, various insurance-related assets and overfunded pension obligations (see Note 18).
−Removed: See Note 21 for the Company's accounting policy related to leases.
−Removed: Redeemable Noncontrolling Interests
−Removed: Redeemable noncontrolling interests in our Consolidated Balance Sheets represents the noncontrolling shareholders' preferred and common stock interests of the Company's consolidated less than fully owned subsidiaries.
−Removed: Those shareholders may choose to require the Company to purchase their equity interest.
−Removed: For certain entities, we may also have the right to require those shareholders to sell their equity interest to us.
−Removed: As these redeemable noncontrolling interests provide for redemption features not solely within our control, we classify the redeemable noncontrolling interests outside of permanent equity.
−Removed: The noncontrolling interest was initially recorded at fair value.
−Removed: In subsequent reporting periods, the values are adjusted to reflect the earnings, losses and distributions attributable to the noncontrolling interest.
−Removed: When a shareholder's right to require the Company to purchase its equity interest is exercisable, the redeemable noncontrolling interest is recorded at estimated redemption value.
−Removed: When the estimated redemption value for a redeemable noncontrolling interest exceeds its initial carrying value, an adjustment to increase or decrease the redeemable noncontrolling interest is recorded with an offsetting adjustment to Retained earnings or Additional paid-in capital in the absence of Retained earnings.
−Removed: When an adjustment is made to the carrying value of the redeemable noncontrolling interest, the calculation of Shareholders' net income per share will be adjusted if the redemption value exceeds fair value.
−Removed: Accrued Expenses and Other Current and Non-Current Liabilities
−Removed: Accrued expenses and other liabilities (current) primarily includes financial and performance guarantee liabilities (see section G) and other liabilities arising from pharmacy contracts, management compensation, various insurance-related liabilities, including experience-rated refunds, reinsurance contracts and the risk adjustment and minimum medical loss ratio rebate accruals under The Patient Protection and Affordable Care Act (the "ACA"), and amounts due to financial institutions under the accounts receivable factoring facility (see Note 3).
−Removed: Other non-current liabilities primarily include uncertain tax positions (see Note 23), amounts held for self-funded clients to cover the administration and payment of claims that may emerge post contract termination, lease liabilities (see Note 21) and underfunded pension obligations (see Note 18).
−Removed: The Company accrues for legal and regulatory matters when a loss contingency is both probable and estimable.
−Removed: The estimated loss is generally recorded in Selling, general and administrative expenses and represents the Company's best estimate of the loss contingency.
−Removed: If the loss estimate is a range, the Company accrues the minimum amount in the range if no amount is better than any other estimated amount in the range.
−Removed: Legal costs to defend the Company's litigation and arbitration matters are expensed as incurred in cases that the Company cannot reasonably estimate the ultimate cost to defend.
−Removed: If the Company can reasonably estimate the cost to defend, a liability
−Removed: for these costs is accrued when the claim is reported.
−Removed: Litigation and legal or regulatory matters that the Company has identified with a reasonable possibility of material loss are described in Note 24.
Translation of Foreign Currencies
28 unchanged sentences
The Company administers programs through which we may receive rebates and other vendor consideration from pharmaceutical manufacturers.
−Removed: The amounts of such rebates or other vendor consideration shared with pharmacy benefit management services clients vary based on the contractual arrangement with the client and in some cases the type of consideration received from the pharmaceutical manufacturer.
+Added: The amounts of such rebates or other vendor consideration shared with pharmacy benefit management services clients
+Added: vary based on the contractual arrangement with the client and in some cases the type of consideration received from the pharmaceutical manufacturer.
Rebates and other vendor consideration payable to pharmacy benefit management services clients are recorded as a reduction of Pharmacy revenues.
1 unchanged sentence
Historically, these adjustments have not been material.
−Removed: In retail, home delivery and specialty transactions, amounts may be collected from third-party payors.
−Removed: These are billed and collected in accordance with the Company's standard accounts receivable collection procedures.
Other pharmacy service revenues are earned by distributing specialty pharmaceuticals and medical supplies to providers, clinics and hospitals.
10 unchanged sentences
The Company's contracts with certain retail pharmacies give the Company the right to adjust reimbursement rates during the annual guarantee period.
−Removed: Incremental costs of obtaining service and pharmacy contracts for short-term arrangements are expensed as incurred.
Premiums and Related Expenses
3 unchanged sentences
Premiums received for the Company's Medicare Advantage plans, Medicare Part D plans and Individual and Family Plans from the Centers for Medicare and Medicaid Services ("CMS") and customers are recognized as revenue ratably over the contract period.
−Removed: CMS provides risk-adjusted premium payments for Medicare Advantage plans and Medicare Part D plans based on our customer demographics and medical diagnoses, which may change from period to period based on the underlying health of our customers.
+Added: CMS provides risk-adjusted premium payments for Medicare Advantage plans and Medicare Part D plans based on our customer demographics and medical diagnoses, which may change from period to period based on the underlying health factors of our customers.
The Company recognizes changes to risk-adjusted premiums as revenue when the amounts are determinable and collection is reasonably assured.
−Removed: Revenue adjustments are generally settled semi-annually with CMS.
+Added: Revenue adjustments are generally settled semiannually with CMS.
The final revenue adjustment is generally settled with CMS in the year following the contract year.
2 unchanged sentences
Final revenue adjustments generally occur in the year following the contract year.
−Removed: The ACA prescribed a risk-adjustment program to mitigate the risk for participating health insurance companies selling individual coverage on the public exchanges.
+Added: The Patient Protection and Affordable Care Act ("ACA") prescribed a risk adjustment program to mitigate the risk for participating health insurance companies selling individual coverage on the public exchanges.
The risk adjustment program reallocates funds from insurers with lower risk populations to insurers with higher risk populations based on the relative risk scores of participants.
4 unchanged sentences
These rebate liabilities are settled in the subsequent year.
−Removed: Premiums for long-duration insurance contracts, including individual life, accident and supplemental health insurance and annuity products, and excluding universal life and investment-related products, are recognized as revenue when due.
−Removed: Cigna Healthcare'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.
+Added: Liabilities related to experience-rated refunds, risk adjustment programs and the minimum medical loss ratio are included in Accrued expenses and other liabilities (current).
+Added: Premiums for long-duration insurance contracts, including supplemental health, accident and individual life insurance and annuity products, and excluding universal life and investment-related products, are recognized as revenue when due.
+Added: Cigna Healthcare 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.
Benefits and expenses are matched with premiums.
7 unchanged sentences
Fees and Related Expenses
−Removed: The majority of the Company's service fees are derived from administrative services only ("ASO") arrangements, fee-for-service clinical solutions, Wholesale Marketplace Drug Formulary Management services, health benefit management services and administration of services to specialty pharmacy manufacturers.
−Removed: ASO arrangements allow plan sponsors to self-fund claims and assume the risk of medical or other benefit costs.
−Removed: Most of the Company's ASO arrangements are for medical and specialty solutions, including pharmacy benefits.
−Removed: Generally, the Company's ASO arrangements are short-term.
−Removed: Contract modifications typically occur on renewal and are prospective in nature.
−Removed: In return for fees from these clients, the Company provides access to our participating provider networks and other services supporting benefit management, including claims administration, behavioral health services, disease management, utilization management and cost containment programs.
−Removed: In general, the Company considers these services to be a combined performance obligation to provide cost effective administration of plan benefits over the contract period.
−Removed: Fees are billed, due and recognized monthly at contracted rates based on current membership or utilization.
−Removed: This recognition pattern aligns with the benefits from services provided to clients.
−Removed: These revenues are reported in Fees and other revenues in the Consolidated Statements of Income.
−Removed: The Company may also provide performance guarantees that provide potential refunds to clients if certain service standards, clinical outcomes or financial metrics are not met.
−Removed: If these standards, outcomes and metrics are not met, the Company may be financially at risk up to a stated percentage of the contracted fee or a stated dollar amount.
−Removed: The Company defers revenue by recording a liability for estimated payouts associated with these guarantees within Accrued expenses and other liabilities.
−Removed: The amount of revenue deferred is estimated for each type of guarantee using either a most likely amount or expected value method depending on the nature of the guarantee and the information available to estimate refunds.
−Removed: Estimates are refined each reporting period as additional information on the Company's performance becomes available and upon final reconciliation and settlement following the guarantee period.
−Removed: Amounts accrued and paid for these performance guarantees during the reporting periods were not material.
−Removed: Expenses associated with administrative programs and services are recognized as incurred in Selling, general and administrative expenses.
−Removed: The Company also earns revenue, as part of its integrated pharmacy benefits performance obligation, by offering fee-for-service clinical solutions to our clients, such as drug utilization management and medication adherence counseling.
−Removed: These clinical programs help clients to drive better health outcomes at a lower cost by identifying and addressing potentially unsafe or wasteful prescribing, dispensing and utilization of prescription drugs and communicating with, or supporting communications with physicians, pharmacies and patients.
−Removed: Fees are billed, due and recognized at contracted rates either on a periodic basis or as services are provided.
−Removed: This recognition pattern aligns with the benefits from services provided.
−Removed: These revenues are reported in Fees and other revenues in the Consolidated Statements of Income.
−Removed: Direct costs associated with these programs are recognized in Pharmacy and other service costs, and other related expenses are recorded as incurred in Selling, general and administrative expenses.
−Removed: The Company earns fees from our Wholesale Marketplace Drug Formulary Management services.
−Removed: These services include either our drug formulary administrative service arrangements or our formulary processing arrangements.
+Added: The majority of the Company's service fee revenues are derived from the following programs:
+Added: • Administrative Services Only ("ASO") arrangements allow plan sponsors to self-fund claims and assume the risk of medical or other benefit costs.
+Added: In return for fees from these clients, the Company provides access to our participating provider networks and other services supporting benefit management.
+Added: • Fee-for-service clinical solutions offered to clients, such as drug utilization management and medication adherence counseling help clients to drive better health outcomes at a lower cost by identifying and addressing potentially unsafe or wasteful prescribing, dispensing and utilization of prescription drugs, and communicating with, or supporting communications with, physicians, pharmacies and patients.
+Added: • Wholesale Marketplace Drug Formulary Management services include either our drug formulary administrative service arrangements or our formulary processing arrangements.
Drug formulary administrative services may include formulary consultation, administration of rebate contracts, rebate submission, collection from drug manufacturers and the distribution of rebates to clients.
Services may also include facilitating audits of data submissions and reporting of rebates to clients.
−Removed: Clients agree to pay administrative fees that are billed, due and recognized at contracted rates as services are performed.
−Removed: These revenues are reported gross in Fees and other revenues and associated costs are reported in Pharmacy and other service costs in the Consolidated Statements of Income.
−Removed: For certain other clients in our formulary processing arrangements, the Company does not control the right to retain rebates before they are transferred to the client for services performed.
−Removed: Clients agree to allow the Company to retain a portion of each rebate collected in exchange for formulary processing services provided.
−Removed: These drug formulary service and administrative fee revenues are reported net in Fees and other revenues in the Consolidated Statements of Income.
−Removed: Revenue is recognized as rebates are processed.
−Removed: The Company also earns fees by providing health benefit management solutions that drive cost reductions and improve quality outcomes.
−Removed: Clients are primarily sponsors of health benefit plans and fees may be stated as a per-member-per-month fee or as a per-claim fee.
−Removed: The Company considers the services to be a single performance obligation to stand ready to provide utilization management services over the contract period (generally three years).
+Added: • Health benefit management solutions are offered primarily to sponsors of health benefit plans to drive cost reductions and improve quality outcomes for clients as well as provide behavioral health services to third-party health plans, employers and administrators.
In certain arrangements, the Company assumes the financial obligation for third-party provider costs for medical services provided to the health plan's customers.
−Removed: Fees are recorded gross in Fees and other revenues in the Consolidated Statements of Income because the Company is acting as a principal in arranging for and controlling the services provided by third-party network providers.
−Removed: Contractual fees vary based on enrollment and provider costs and are billed, due
−Removed: and recognized monthly.
−Removed: Direct costs associated with these programs are recognized in Pharmacy and other service costs, and other related expenses are recorded in Selling, general and administrative expenses as incurred.
−Removed: Certain health benefit management contracts require the Company to share the results of medical cost experience that differ from specified targets.
−Removed: This variable consideration is estimated at contract inception and adjusted through the contract period.
−Removed: The estimated profits and costs are recognized net in Fees and other revenues.
−Removed: The Company also earns other service fees related to administrating services to specialty pharmacy manufacturers that are recorded in Fees and other revenues in the Consolidated Statements of Income.
−Removed: These revenues are billed, due and recognized at contracted rates as services are provided.
+Added: Arrangements are generally short-term (one year or less) except for certain three-year health benefit management solutions contracts, and each consists of a single performance obligation.
+Added: Performance obligations are satisfied as services are provided to clients, either on a stand-ready or utilization basis.
+Added: Fees are billed, due and recognized at contracted rates on a periodic basis, generally monthly or agreed-upon arrangements terms.
+Added: Fee revenues for services are generally recorded on a gross basis with the associated direct and indirect costs presented in Pharmacy and other service costs, or Selling, general and administrative expenses.
+Added: Retained rebates reported in Fees and other revenues in our formulary processing arrangements are either recognized gross as services are provided to clients, consistent with the related service fee, or net as rebates are processed.
+Added: The latter applies in arrangements in which the Company is permitted to retain a portion of rebates collected in exchange for services, but the Company does not obtain control of the retained rebate until rebates are transferred to the client.
+Added: Fees for services may include variable consideration as a component of the transaction price, which is estimated at contract inception, recognized and adjusted through the contract period through Accrued expenses and other liabilities.
+Added: Variable consideration includes certain health benefit management contracts requiring the Company to share the results of medical cost experience that differ from specified targets and ASO performance guarantees that compensate clients if certain service standards, clinical outcomes or financial metrics are not met.
Note 3 – Accounts Receivable, Net
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We bill pharmaceutical manufacturers based on management's interpretation of contractual terms and estimate a contractual allowance based on the best information available at the time a claim is processed.
−Removed: Contractual allowances for certain rebates receivable from pharmaceutical manufacturers are determined by reviewing payment experience and specific known items that could be adjusted under contract terms.
+Added: Contractual allowances for certain rebates receivable from pharmaceutical manufacturers are determined by reviewing payment experience and specific known items that
+Added: could be adjusted under contract terms.
The Company's estimation process for contractual allowances for pharmaceutical manufacturer receivables generally results in an allowance for balances outstanding greater than 90 days.
Contractual allowances for certain receivables from third-party payors are based on their contractual terms and are estimated based on the Company's best information available at the time revenue is recognized.
−Removed: Discounts and claims adjustments issued to customers in the form of client credits and other non-credit adjustments are based on the current status of each customer's receivable balance, current economic and market conditions and a variety of other factors, including the length of time the receivables are past due, the financial health of customers and our past experience.
The allowance for expected credit losses for current accounts receivable is based primarily on past collections experience relative to the length of time receivables are past due;
however, when available evidence reasonably supports an assumption that counterparty credit risk over the expected payment period will differ from current and historical payment collections, a forecasting adjustment is reflected in the allowance for expected credit losses.
+Added: Discounts and claims adjustments issued to customers in the form of client credits and other non-credit adjustments are based on the current status of each customer's receivable balance, current economic and market conditions and a variety of other factors, including the length of time the receivables are past due, the financial health of customers and our past experience.
Receivables and any associated allowance are written off only when all collection attempts have failed and such amounts are determined unrecoverable.
1 unchanged sentence
When circumstances related to specific collection patterns change, estimates of the recoverability of receivables are adjusted.
−Removed: The Company's accounts receivable include amounts due from pharmaceutical manufacturers, clients, third-party payors and customers, and are presented net of allowances.
−Removed: These balances include:
−Removed: • Pharmaceutical manufacturers receivables - amounts due from pharmaceutical manufacturers.
+Added: The Company's accounts receivable include amounts due from clients, third-party payors, customers and pharmaceutical manufacturers, and are presented net of allowances.
+Added: These balances include the following:
• Noninsurance customer receivables - amounts due from customers for noninsurance services, primarily pharmacy benefit management and ASO contracts.
+Added: • Pharmaceutical manufacturers receivables - amounts due from pharmaceutical manufacturers.
• Insurance customer receivables - amounts due from customers under insurance and managed care contracts, primarily premiums receivable and amounts due from CMS.
2 unchanged sentences
(In millions) December 31, 2024 December 31, 2023
−Removed: Pharmaceutical manufacturers receivables $ 8,169 $ 7,108
Noninsurance customer receivables $ 11,879 $ 8,044
+Added: Pharmaceutical manufacturers receivables 10,914 8,169
Insurance customer receivables 3,199 2,359
2 unchanged sentences
Accounts receivable, net classified as assets of businesses held for sale
+Added: ( 1,927 ) ( 1,122 )
Total $ 24,227 $ 17,722
−Removed: These receivables are reported net of our allowances of $ 3.7 billion as of December 31, 2023 and $ 1.9 billion as of December 31, 2022 as follows:
−Removed: • Included in our Pharmaceutical manufacturers receivables are contractual allowances for certain rebates receivable with pharmaceutical manufacturers of $ 3.1 billion as of December 31, 2023 and $ 1.3 billion as of December 31, 2022.
−Removed: • Included in our Noninsurance customer receivables are contractual allowances from third-party payors of $ 386 million as of December 31, 2023 and $ 336 million as of December 31, 2022 based upon the contractual payment terms.
−Removed: • The remaining allowances of $ 219 million as of December 31, 2023 and $ 226 million as of December 31, 2022 include discounts and claims adjustments issued to customers in the form of client credits, an allowance for current expected credit losses and other non-credit adjustments.
−Removed: The Company's allowance for current expected credit losses was $ 90 million as of December 31, 2023 and $ 86 million as of December 31, 2022.
+Added: These receivables are reported net of our allowances of $ 5.0 billion and $ 3.7 billion as of December 31, 2024 and 2023, respectively.
+Added: As of December 31, 2024 and 2023, these allowances were primarily comprised of $ 4.3 billion and $ 3.1 billion, respectively, associated with contractual allowances for certain pharmaceutical manufacturers rebate receivables;
+Added: $ 388 million and $ 386 million, respectively, associated with contractual allowances for third-party payor noninsurance customer receivables;
+Added: and $ 84 million and $ 90 million, respectively, associated with allowances for current expected credit losses.
+Added: The remaining allowances include discounts and claims adjustments issued to customers in the form of client credits and other non-credit adjustments.
Accounts Receivable Factoring Facility
−Removed: 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 .
−Removed: 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.
+Added: The Company maintains an uncommitted factoring facility (the "Facility") under which certain accounts receivable may be sold on a nonrecourse basis to a financial institution.
+Added: The Facility began in July 2023 with an initial term of two years , followed by automatic one-year renewal terms unless terminated by either party.
+Added: The Facility's total capacity at inception was $ 1.0 billion and was amended to $ 1.5 billion in May 2024.
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.
−Removed: Amounts associated with this Facility are reflected within Net cash provided by operating activities in the Consolidated Statements of Cash Flows.
+Added: Amounts associated with this Facility are reflected within Net cash provided by operating activities in the Consolidated Statements of
Factoring fees paid under this Facility are reflected in Interest expense and other in the Consolidated Statements of Income.
−Removed: For the year ended December 31, 2023, we sold $ 2.1 billion of accounts receivable under the Facility and factoring fees paid were not material.
−Removed: As of December 31, 2023, all sold accounts receivable have been collected from manufacturers, $ 515 million of which have not been remitted to the financial institution.
+Added: We sold pharmaceutical manufacturers receivables under the Facility of $ 5.5 billion and $ 2.1 billion during the years ended December 31, 2024 and December 31, 2023, respectively.
+Added: For the years ended December 31, 2024 and December 31, 2023, factoring fees paid were not material.
+Added: As of December 31, 2024 and December 31, 2023, all sold accounts receivable had been collected from pharmaceutical manufacturers and had been removed from the Company's Consolidated Balance Sheets.
+Added: As of December 31, 2024 and December 31, 2023, there were $ 1.0 billion and $ 515 million, respectively, of collections from pharmaceutical manufacturers that had not been remitted to the financial institution.
Such amounts are recorded within Accrued expenses and other liabilities in the Consolidated Balance Sheets.
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No guarantees or pledged assets are provided by the Company or any of our subsidiaries under the Program.
−Removed: As of December 31, 2023 and December 31, 2022, $ 1.5 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 Consolidated Balance Sheets.
+Added: The obligations confirmed as valid within the Program by the financial institutions were as follows and are reflected in Accounts payable in the Consolidated Balance Sheets:
+Added: For the Years Ended December 31,
+Added: (in millions) 2024
+Added: Confirmed obligations outstanding at the beginning of the year $ 1,536 $ 1,303
+Added: Invoices confirmed during the year 39,091 36,224
+Added: confirmed invoices paid during the year 38,990 35,991
+Added: Confirmed obligations outstanding at the end of the year $ 1,637 $ 1,536
The amounts confirmed as valid for both periods are predominately associated with one supplier.
−Removed: As of December 31, 2023, we have been informed by the financial institution that $ 298 million of the Company's outstanding payment obligations were voluntarily elected by suppliers to be sold to the financial institution under the Program.
−Removed: Note 5 – Mergers, Acquisitions and Divestitures
−Removed: Investment in CarepathRx Health Systems Solutions
−Removed: In July 2023, Evernorth Health, Inc.
−Removed: 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.
−Removed: 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.
−Removed: The purchase price has been allocated to the acquired tangible and intangible assets, including customer relationships, trade names, internal-use software and goodwill.
−Removed: Amortization of the acquired intangibles is included in Fees and other revenues.
−Removed: The Company's share of CHSS' net loss and amortization of acquired intangibles were immaterial for the year ended December 31, 2023.
−Removed: The Company guaranteed $ 125 million of CHSS' credit facilities through July 2026.
−Removed: The fair value of the guarantee is reflected in other liabilities and is not material.
−Removed: The acquisition also includes separate put and call options to increase our ownership, which
−Removed: become exercisable annually beginning as early as April 2025.
−Removed: The net fair value of the options, determined using a Monte Carlo simulation, are not material and are included in Other non-current liabilities and Other assets, respectively.
−Removed: Divestiture of International Businesses
−Removed: In July 2022, the Company completed the sale of its life, accident and supplemental benefits businesses in six countries (Hong Kong, Indonesia, New Zealand, South Korea, Taiwan and Thailand) (the "Chubb transaction") for approximately $ 5.4 billion in cash and recognized a gain of $ 1.7 billion pre-tax ($ 1.4 billion after-tax), which included recognition of previously unrealized capital losses on investments sold and translation loss on foreign currencies.
−Removed: In 2023, we recorded immaterial adjustments to the sales price reflecting resolution of certain contractual matters.
−Removed: In December 2022, the Company also divested its ownership interest in a joint venture in Türkiye.
−Removed: Integration and Transaction-related Costs
−Removed: As part of our strategic plan, we incurred non-routine costs associated with the disposition and acquisition of certain businesses.
−Removed: In 2023, the Company incurred net costs related to the HCSC and Chubb transactions.
−Removed: In 2022 and 2021, the Company incurred costs related to the Chubb transaction, the sale of the Group Disability and Life business, the acquisition of MDLIVE and the terminated merger with Elevance Health, Inc.
−Removed: ("Elevance"), formerly known as Anthem, Inc.
−Removed: These costs were $ 45 million pre-tax ($ 35 million after-tax) for the year ended December 31, 2023, compared with $ 135 million pre-tax ($ 103 million after-tax) for the year ended December 31, 2022 and $ 169 million pre-tax ($ 71 million after-tax) for the year ended December 31, 2021.
−Removed: These costs consisted primarily of certain projects to separate or integrate the Company's systems, products and services, fees for legal, advisory and other professional services and certain employment-related costs.
−Removed: After-tax costs for the year ended December 31, 2021 included a tax benefit from the resolution of a tax matter related to the sold Group Disability and Life business.
+Added: As of December 31, 2024, we have been informed by the financial institution that an immaterial amount of the Company's outstanding payment obligations were voluntarily elected by suppliers to be sold to the financial institution under the Program.
Note 5 – Assets and Liabilities of Businesses Held for Sale
7 unchanged sentences
Deferred policy acquisition costs continue to be amortized.
−Removed: In January 2024, the Company entered into the HCSC transaction for a total purchase price of approximately $ 3.3 billion cash, subject to applicable regulatory approvals and other customary closing conditions.
+Added: In January 2024, the Company entered into a definitive agreement to sell the Medicare Advantage, Medicare Individual Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits, and CareAllies businesses (the "Disposal Group") to HCSC subject to applicable regulatory approvals and other customary closing conditions, including purchase price adjustments to align with the final balance sheet of the divested businesses (the "HCSC transaction").
+Added: The initial $ 3.3 billion purchase price is anticipated to increase at closing, reflecting higher statutory surplus for the legal entities that will convey to HCSC.
The transaction is expected to close in the first quarter of 2025.
−Removed: During the fourth quarter of 2023, the Company determined that the Medicare Advantage, Medicare Stand-Alone Prescription Drug Plans, Medicare Supplement and CareAllies businesses met the criteria to be classified as held for sale and aggregated and classified the assets and liabilities as held for sale in our Consolidated Balance Sheet as of December 31, 2023.
−Removed: The Company measured the assets and liabilities held for sale at estimated fair value less costs to sell and recognized an estimated loss of $ 1.5 billion pre-tax ($ 1.4 billion after-tax) that was included within (Loss) gain on sale of businesses in the Consolidated Statements of Income for the year ended December 31, 2023.
−Removed: The estimated loss on sale represents primarily asset write-downs and estimated costs to sell.
+Added: The Company determined that the Disposal Group met the criteria to be classified as held for sale and aggregated and classified the assets and liabilities as held for sale in our Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023.
+Added: The Company measured the assets and liabilities of the Disposal Group at estimated fair value less costs to sell based on an estimated $ 4.7 billion purchase price as of December 31, 2024 and initial $ 3.3 billion purchase price as of December 31, 2023 and recognized within Net gain (loss) on sale of businesses in the Consolidated Statements of Income an estimated loss of $ 472 million pre-tax ($ 363 million after-tax) for the year ended December 31, 2024 and $ 1.5 billion pre-tax ($ 1.4 billion after-tax) for the year ended December 31, 2023.
+Added: The estimated loss on sale for both periods primarily represents goodwill impairments of $ 302 million pre-tax in 2024 and $ 1.2 billion pre-tax in 2023.
The assets and liabilities of businesses held for sale were as follows:
−Removed: (In millions) December 31, 2023
+Added: (In millions) December 31, 2024 December 31, 2023
Cash and cash equivalents $ 1,339 $ 467
6 unchanged sentences
Total liabilities of businesses held for sale $ 2,410 $ 2,695
−Removed: (1) Includes Goodwill of $ 396 million.
+Added: (1) Includes Goodwill of $ 94 million as of December 31, 2024 and $ 396 million as of December 31, 2023.
+Added: Integration and Transaction-Related Costs
+Added: In 2024 and 2023, the Company incurred transaction-related costs associated with the HCSC transaction.
+Added: In 2023 and 2022, the Company also incurred net costs mainly related to the sale of our international life, accident and supplemental benefits businesses.
+Added: Additionally in 2022, the Company incurred costs related to the sale of the Group Disability and Life business as well as the acquisition of MDLIVE, Inc.
+Added: These costs incurred consisted primarily of certain projects to separate or integrate the Company's systems, products and services;
+Added: fees for legal, advisory and other professional services;
+Added: and certain employment-related costs.
+Added: These costs were $ 275 million pre-tax ($ 211 million after-tax), $ 45 million pre-tax ($ 35 million after-tax) and $ 135 million pre-tax ($ 103 million after-tax) for the years ended December 31, 2024, December 31, 2023 and December 31, 2022, respectively.
Note 6 – Earnings Per Share
10 unchanged sentences
Shareholders' net income
+Added: $ 3,434 $ 3,434 $ 5,164 $ 5,164 $ 6,704 $ 6,704
Weighted average 280,294 280,294 293,892 293,892 309,546 309,546
2 unchanged sentences
Earnings per share $ 12.25 $ ( 0.13 ) $ 12.12 $ 17.57 $ ( 0.18 ) $ 17.39 $ 21.66 $ ( 0.25 ) $ 21.41
−Removed: Amounts reflected above for the years ended December 31, 2022 and 2021 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:
7 unchanged sentences
Commercial paper $ 880 $ 1,237
−Removed: $ 17 million, 8.300 % Notes due January 2023
$ 500 million, 0.613 % Notes due March 2024
−Removed: $ 700 million, Floating Rate Notes due July 2023
−Removed: $ 1,000 million, 3.000 % Notes due July 2023
−Removed: $ 1,187 million, 3.750 % Notes due July 2023
−Removed: $ 500 million, 0.613 % Notes due March 2024
$ 790 million, 3.500 % Notes due June 2024 (1)
+Added: $ 900 million, 3.250 % Notes due April 2025 (2)
+Added: $ 1,216 million, 4.125 % Notes due November 2025 (1)
Other, including finance leases 43 42
1 unchanged sentence
Long-term debt
−Removed: $ 500 million, 0.613 % Notes due March 2024
−Removed: $ 1,000 million, 3.500 % Notes due June 2024
$ 900 million, 3.250 % Notes due April 2025 (2)
7 unchanged sentences
$ 3,800 million, 4.375 % Notes due October 2028
+Added: $ 1,000 million, 5.000 % Notes due May 2029
$ 1,400 million, 2.400 % Notes due March 2030 (1) (2)
$ 1,500 million, 2.375 % Notes due March 2031 (2)
+Added: $ 750 million, 5.125 % Notes due May 2031
$ 45 million, 8.080 % Step Down Notes due January 2033
$ 800 million, 5.400 % Notes due March 2033
+Added: $ 1,250 million, 5.250 % Notes due February 2034 (2)
$ 190 million, 6.150 % Notes due November 2036
9 unchanged sentences
$ 1,500 million, 3.400 % Notes due March 2051
+Added: $ 1,500 million, 5.600 % Notes due February 2054
Other, including finance leases 41 66
1 unchanged sentence
(1) Included in the February 2024 debt tender offers discussed below.
−Removed: (2) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments.
+Added: (2) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments as of December 31, 2024.
See Note 11 to the Consolidated Financial Statements for further information about the Company's interest rate risk management and these derivative instruments.
−Removed: (3) Interest rate step down to 8.080 % effective January 15, 2023.
Short-Term and Credit Facilities Debt
2 unchanged sentences
As of December 31, 2024, there were no outstanding balances under these revolving credit agreements.
−Removed: In April 2023, The Cigna Group entered into the following revolving credit agreements (the "Credit Agreements"):
+Added: In April 2024, The Cigna Group replaced its previous revolving credit agreements and entered into the following (the "Credit Agreements"):
• A $ 5.0 billion five-year revolving credit and letter of credit agreement that will mature in April 2029 with an option to extend the maturity date for additional one-year periods, subject to consent of the banks.
3 unchanged sentences
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.
−Removed: 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.
+Added: Each of the Credit Agreements includes an option to increase commitments in an aggregate amount of up to $ 1.5 billion across both facilities for a maximum total commitment of $ 8.0 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.
−Removed: 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 December 31, 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.
−Removed: The Credit Agreements replaced a prior $ 3.0 billion five-year revolving credit and letter of credit agreement maturing in April 2027;
−Removed: a $ 1.0 billion three-year revolving credit agreement maturing in April 2025;
−Removed: and a $ 1.0 billion 364-day revolving credit agreement maturing in April 2023.
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 $ 6.5 billion.
+Added: Our commercial paper program size was increased from $ 5.0 billion to $ 6.5 billion in July 2024.
Amounts available under the program may be borrowed, repaid and re-borrowed from time to time.
3 unchanged sentences
Debt Issuance and Debt Tender Offers.
−Removed: On February 5, 2024, we issued $ 4.5 billion of new senior notes.
+Added: In February 2024, we issued $ 4.5 billion of new senior notes, as detailed in the table below.
The proceeds from this debt were used to pay the consideration for the cash tender offers as described below.
−Removed: We intend to use the remaining net proceeds to fund the repayment of our senior notes maturing in March 2024 and for general corporate purposes, which may include repayment of indebtedness and repurchases of shares of our common stock.
−Removed: Concurrent with the debt issuance, we commenced tender offers to purchase for cash up to $ 2.25 billion in aggregate principal amount of outstanding notes, which included any and all of the $ 1.0 billion senior notes due June 2024.
−Removed: Following the early tender results, we increased the tender offers to up to $ 2.55 billion aggregate principal amount.
−Removed: On February 22, 2024, we purchased $ 1.8 billion principal amount of notes at early settlement of the tender offers.
−Removed: The tender offers will expire on March 5, 2024.
−Removed: On March 7, 2023, the Company issued $ 1.5 billion of new senior notes.
−Removed: The proceeds of this issuance were used for general corporate purposes, and included repayment of outstanding debt securities.
−Removed: Interest on this debt is paid semi-annually.
−Removed: Principal Maturity Date Interest Rate Net Proceeds
+Added: We used the remaining net proceeds to fund the repayment of our senior notes that matured in March 2024 and for general corporate purposes, including repayment of indebtedness and repurchases of shares of our common stock.
+Added: Interest on this debt is paid semiannually.
+Added: Principal Maturity Date Interest Rate Net Proceeds Redeemable Date (1)
+Added: "Make Whole" Premium (2)
$ 1,000 million
−Removed: March 15, 2026 5.685 % $ 698 million
+Added: May 15, 2029 5.000 % $ 995 million April 15, 2029 15
$ 750 million
−Removed: March 15, 2033 5.400 % $ 796 million
−Removed: (1) Redeemable at any time discounted at the U.S.
−Removed: Treasury rate plus 20 basis points.
−Removed: Redeemable at par on or after March 15, 2024.
−Removed: (2) Redeemable at any time discounted at the U.S.
−Removed: Treasury rate plus 25 basis points.
−Removed: Redeemable at par on or after December 15, 2032.
+Added: May 15, 2031 5.125 % $ 746 million March 15, 2031 15
+Added: $ 1,250 million
+Added: February 15, 2034 5.250 % $ 1,244 million November 15, 2033 20
+Added: $ 1,500 million
+Added: February 15, 2054 5.600 % $ 1,485 million August 15, 2053 20
+Added: (1) Redeemable at any time prior to this date at a "make whole" premium, defined below.
+Added: Redeemable at par on or after this date.
+Added: (2) "Make whole" premium calculated using the most directly comparable U.S.
+Added: Treasury rate plus the amount of basis points set forth in this column.
+Added: In the first quarter of 2024, the Company completed the repurchase of a total of $ 1.8 billion in aggregate principal amount of existing senior notes that were tendered to the Company pursuant to cash tender offers.
Debt Maturities.
−Removed: Maturities of outstanding long-term debt as of December 31, 2023 are as follows and exclude the impact of the 2024 debt issuance and debt tender offers described above:
+Added: Maturities of outstanding long-term debt as of December 31, 2024 are as follows:
(In millions) Scheduled Maturities (1)
2 unchanged sentences
Finance leases are excluded from this table.
−Removed: See Note 21 - Leases for finance lease maturity amounts.
Interest Expense
−Removed: Interest expense on long-term and short-term debt was $ 1.4 billion in 2023 and $ 1.3 billion in both 2022 and 2021.
+Added: Interest expense on long-term and short-term debt was $ 1.5 billion in 2024, $ 1.4 billion in 2023 and $ 1.3 billion in 2022.
Debt Covenants
14 unchanged sentences
Issued- December 31, 402,512 399,894 397,819
−Removed: During 2023, 2022 and 2021, The Cigna Group declared quarterly cash dividends of $ 1.23 , $ 1.12 and $ 1.00 per share of the Company's common stock, respectively.
The following table provides details of the Company's dividend payments:
12 unchanged sentences
December 6, 2022 December 21, 2022 $ 1.12 $ 334
−Removed: On February 2, 2024, the Board of Directors declared the first quarter cash dividend of $ 1.40 per share of The Cigna Group common stock to be paid on March 21, 2024 to shareholders of record on March 6, 2024.
−Removed: 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.
+Added: On January 30, 2025, the Board of Directors declared the first quarter cash dividend of $ 1.51 per share of The Cigna Group common stock to be paid on March 20, 2025 to shareholders of record on March 5, 2025.
+Added: The Company currently intends to pay regular quarterly dividends, with future declarations subject to approval by its Board of Directors and the Board of Director'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.
Accelerated Share Repurchase Agreements
−Removed: In February 2024, as part of our existing share repurchase program, we entered into separate accelerated share repurchase agreements ("2024 ASR agreements") with Deutsche Bank AG and Bank of America, N.A.
−Removed: (collectively, the "2024 Counterparties") to repurchase $ 3.2 billion of common stock in aggregate.
−Removed: We remitted $ 3.2 billion to the 2024 Counterparties and received an initial delivery of approximately 7.6 million shares of our common stock on February 15, 2024 representing $ 2.6 billion of the total remitted.
−Removed: The final number of shares to be received under the ASR agreements will be determined based on the daily volume-weighted average share price of our common stock over the term of the agreements, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements.
−Removed: We expect final settlement under the ASR agreements to occur in the second quarter of 2024.
−Removed: At final settlement, we may be entitled to receive additional shares of our common stock from the Counterparties or we may be required to make a payment.
−Removed: If we are obligated to make a payment, we may elect to satisfy such obligation in cash or shares of our common stock.
−Removed: In June 2022, as part of our existing share repurchase program, we entered into separate accelerated share repurchase agreements ("2022 ASR agreements") with Mizuho Markets Americas LLC and Morgan Stanley & Co.
−Removed: LLC (collectively, the "2022 Counterparties") to repurchase $ 3.5 billion of common stock in aggregate.
−Removed: In July 2022, we remitted $ 3.5 billion to the 2022 Counterparties and received an initial delivery of 10.4 million shares of our common stock representing $ 2.8 billion of the total remitted.
−Removed: Upon final settlement of the 2022 ASR agreements in November 2022, we received an additional 1.9 million shares of our common stock for no additional consideration as the value of this stock was held back by the 2022 Counterparties pending final settlement of the agreements.
−Removed: The total number of shares of our common stock repurchased under the 2022 ASR agreements was 12.3 million based on an average daily volume-weighted average share price of our common stock over the term of the agreements, less a discount, of $ 285.10 per share.
+Added: In February 2024, as part of our share repurchase program, we entered into separate accelerated share repurchase agreements with Deutsche Bank AG and Bank of America, N.A.
+Added: to repurchase $ 3.2 billion of common stock in aggregate.
+Added: The total number of shares of our common stock repurchased under the agreements was approximately 9.3 million, at $ 344.98 per share.
+Added: The per share amount was calculated based on the daily volume-weighted average share price of our common stock over the term of the agreements, less a discount.
Note 9 – Insurance and Contractholder Liabilities
21 unchanged sentences
Total insurance and contractholder liabilities $ 5,388 $ 10,254 $ 15,642 $ 5,514 $ 10,904 $ 16,418
−Removed: (1) Amounts classified as liabilities of businesses held for sale include $ 823 million of Unpaid claims, $ 429 million of Future policy benefits, $ 261 million of Unearned premiums and $ 123 million of Contractholder deposit funds as of December 31, 2023.
+Added: (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 $ 823 million of Unpaid claims, $ 429 million of Future policy benefits, $ 261 million of Unearned premiums and $ 123 million of Contractholder deposit funds as of December 31, 2023.
Insurance and contractholder liabilities expected to be paid within one year are classified as current.
−Removed: 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.
−Removed: Additionally, see below updated accounting policies and incremental disclosures associated with future policy benefits (Note 10C), contractholder deposit funds (Note 10D), and market risk benefits (Note 10E).
Accounting Policy - Unearned Premium.
14 unchanged sentences
Completion factors are impacted by several key items including changes in:
−Removed: 1) electronic (auto-adjudication) versus manual
−Removed: claim processing;
+Added: 1) electronic (auto-adjudication) versus manual claim processing;
2) frequency and timeliness of provider claims submissions;
−Removed: 3) number of customers and 4) the mix of products.
+Added: 3) number of customers;
+Added: and 4) the mix of products.
The Company uses historical completion factors combined with an analysis of current trends and operational factors to develop current estimates of completion factors.
−Removed: The Company estimates the liability for claims incurred in each month by applying the current estimates of completion factors to the current paid claims data.
+Added: The Company estimates the liability for claims incurred in each month by applying the current
+Added: estimates of completion factors to the current paid claims data.
This approach implicitly assumes that historical completion rates will be a useful indicator for the current period.
The Company relies more heavily on medical cost trend analysis that reflects expected claim payment patterns and other relevant operational considerations for more recent months.
−Removed: Medical cost trend is primarily impacted by medical service utilization and unit costs that are affected by changes in the level and mix of health benefits offered, including inpatient, outpatient and pharmacy, the impact of copays and deductibles, changes in provider practices and changes in consumer demographics and consumption behavior.
+Added: Medical cost trend is primarily impacted by medical service utilization and unit costs that are affected by changes in the level and mix of health benefits offered, including inpatient, outpatient and pharmacy;
+Added: the impact of copays and deductibles;
+Added: changes in provider practices;
+Added: and changes in consumer demographics and consumption behavior.
The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $ 4.6 billion at December 31, 2024 and $ 4.8 billion at December 31, 2023.
16 unchanged sentences
Ending balance $ 5,018 $ 5,092 $ 4,176
−Removed: $ 5,092 $ 4,176 $ 4,261
−Removed: (1) Includes $ 823 million classified as liabilities of businesses held for sale as of December 31, 2023.
+Added: (1) Includes unpaid claims amounts classified as liabilities of businesses held for sale.
+Added: As of December 31, 2024 and December 31, 2023, includes $ 983 million and $ 823 million classified as liabilities of businesses held for sale, respectively.
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.
3 unchanged sentences
(Dollars in millions) $ % (1)
−Removed: Actual completion factors $ 70 0.2 % $ 62 0.2 %
+Added: Actual completion factors and other
+Added: $ 223 0.6 % $ 70 0.2 %
Medical cost trend 233 0.7 209 0.7
2 unchanged sentences
(2) Percentage of current year incurred costs as reported for the year ended December 31, 2022.
−Removed: Favorable prior year development in both years reflects lower than expected utilization of medical services as compared to our assumptions.
+Added: Favorable prior year development in both years primarily reflects lower than expected utilization of medical services as compared to our assumptions.
The following table depicts the incurred and paid claims development and unpaid claims liability as of December 31, 2024 (net of reinsurance) reported in the Cigna Healthcare segment.
2 unchanged sentences
Incurral Year 2023
−Removed: (Unaudited) 2023 Unpaid Claims & Claim Expenses
+Added: 2024 Unpaid Claims and Claim Expenses
(In millions)
27 unchanged sentences
Interest rate assumptions are based on market-level yields for low credit risk fixed income instruments ("upper-medium grade fixed income instrument").
−Removed: 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.
+Added: For interest accretion purposes, interest rates are fixed at the year of the cohort's inception;
+Added: however, for purposes of liability measurement, they 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.
12 unchanged sentences
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.
−Removed: The present values of expected net premiums and expected future policy benefits for the Cigna Healthcare segment are as follows:
+Added: The present values of expected net premiums and expected future policy benefits for the Cigna Healthcare segment were as follows:
For the Years Ended December 31,
24 unchanged sentences
Total liability for future policy benefits (1)(7)
−Removed: (1) Includes the effect of actual variances from expectations, which (decreased)/increased the total liability for future policy benefits by $( 12 ) million and $ 46 million, respectively, for the years ended December 31, 2023 and December 31, 2022.
+Added: (1) Includes $ 408 million and $ 429 million of future policy benefits classified as liabilities of businesses held for sale in the Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023, respectively.
+Added: (2) Includes the effect of actual variances from expectations, which decreased the total liability for future policy benefits by $( 44 ) million and $( 12 ) million for the years ended December 31, 2024 and December 31, 2023, respectively.
(3) 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.
5 unchanged sentences
(7) $ 85 million and $ 72 million reported in Reinsurance recoverables in the Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023, respectively, relate to the liability for future policy benefits.
−Removed: Additionally, $ 79 million of reinsurance recoverables are reported in assets of businesses held for sale in the Consolidated Balance Sheets as of December 31, 2023.
−Removed: (7) Includes $ 429 million of future policy benefits classified as liabilities of businesses held for sale in the Consolidated Balance Sheets as of December 31, 2023.
+Added: Additionally, $ 80 million and $ 79 million of reinsurance recoverables are reported in assets of businesses held for sale in the Consolidated Balance Sheets as of December 31, 2024, and December 31, 2023, respectively.
Other Operations
8 unchanged sentences
Future policy benefits for Other Operations includes deferred profit liability of $ 366 million and $ 384 million as of December 31, 2024 and December 31, 2023, respectively.
−Removed: Future policy benefits excluding deferred profit liability were $ 3.2 billion as of both December 31, 2023 and December 31, 2022, and $ 4.3 billion as of December 31, 2021.
−Removed: These balances exclude amounts classified as liabilities of businesses held for sale of $ 3.8 billion as of December 31, 2021.
−Removed: The change in future policy benefits reserves year-to-date was primarily driven by changes in the current discount rate.
−Removed: Undiscounted expected future policy benefits were $ 4.5 billion as of December 31, 2023 and $ 4.6 billion as of December 31, 2022.
+Added: As of December 31, 2024, December 31, 2023 and December 31, 2022, future policy benefits excluding deferred profit liability were $ 2.9 billion, $ 3.2 billion and $ 3.2 billion, respectively.
+Added: The decrease in future policy benefit reserves as of December 31, 2024 was primarily driven by benefit payments and current discount rate increases.
+Added: Undiscounted expected future policy benefits were $ 4.3 billion and $ 4.5 billion as of December 31, 2024 and December 31, 2023, respectively.
As of December 31, 2024 and December 31, 2023, $ 0.9 billion and $ 1.0 billion, respectively, of the future policy benefit reserve was recoverable through treaties with external reinsurers.
10 unchanged sentences
The comparative amounts as of December 31, 2023 were 3.31 %, $ 3.0 billion and $ 2.8 billion, respectively.
−Removed: More than 99 % of the $ 4.0 billion liability as of December 31, 2023 and the $ 4.1 billion liability as of December 31, 2022 not reinsured externally is for contracts with guaranteed interest rates of 3 % - 4 %, and approximately $ 1.2 billion represented contracts with policies at the guarantee.
−Removed: At both of these same period ends, $ 1.2 billion was 50 - 150 basis points ("bps") above the guarantee and the remaining $ 1.6 billion as of December 31, 2023 and $ 1.7 billion as of December 31, 2022 represented contracts above the guarantee that pay the policyholder based on the greater of a guaranteed minimum cash value or the actual cash value.
−Removed: More than 90 % of these contracts have actual cash values of at least 110% of the guaranteed cash value.
+Added: More than 99 % of the $ 4.0 billion liability, as of both December 31, 2024 and December 31, 2023, not reinsured externally is for contracts with guaranteed interest rates of 3 % - 4 %, and approximately $ 1.2 billion as of both December 31, 2024 and December 31, 2023, represented contracts with policies at the guarantee.
+Added: As of both December 31, 2024 and December 31, 2023, $ 1.2 billion was 50 - 150 basis points ("bps") above the guarantee and the remaining $ 1.6 billion represented contracts above the guarantee that pay the policyholder based on the greater of a guaranteed minimum cash value or the actual cash value.
+Added: As of both December 31, 2024 and December 31, 2023, more than 90 % of these contracts have actual cash values of at least 110% of the guaranteed cash value.
Market Risk Benefits
−Removed: Liabilities for market risk benefits consist of variable annuity reinsurance contracts (formerly referred to as GMDB and GMIB contracts) in Other Operations.
+Added: 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.
−Removed: 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.
+Added: 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
+Added: the insurance benefit is payable under the respective contract.
The Company receives and pays premium periodically based on the terms of the reinsurance agreements.
1 unchanged sentence
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.
−Removed: Nonperformance risk reflects risk that a party might default and therefore not fulfill its obligations (i.e.
−Removed: nonpayment risk).
+Added: 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.
17 unchanged sentences
The net amount at risk is the amount that 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.
−Removed: As of December 31, 2023, the account value increased primarily due to favorable equity market performance, which resulted in an decrease to the net amount at risk.
+Added: As of December 31, 2024, the account value increased primarily due to favorable equity market performance, which resulted in a decrease to the net amount at risk.
The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded.
10 unchanged sentences
The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk.
−Removed: Reinsurance Recoverables
Accounting Policy.
5 unchanged sentences
Estimates of the allowance for expected credit losses are based on internal and external data used to develop expected loss rates over the anticipated duration of the recoverable asset that vary by external credit rating and collateral level.
−Removed: The majority of the Company's reinsurance recoverables resulted from acquisition and disposition transactions in which the underwriting company was not acquired.
−Removed: The Company reviews its reinsurance arrangements and establishes reserves against the recoverables.
+Added: Collateral levels are defined internally based on the fair value of the collateral relative to the carrying amount of the reinsurance recoverable, the frequency at which collateral is required to be replenished and the potential for volatility in the collateral's fair value.
The Company's reinsurance recoverables as of December 31, 2024 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:
7 unchanged sentences
Not rated 144 1 3 148
−Removed: Total recoverables related to ongoing operations 151 5 331 487
Acquisition, disposition or run-off activities
BBB+ equivalent and higher current ratings (2)(3)
−Removed: Lincoln National Life and Lincoln Life & Annuity of New York — 2,656 — 2,656
−Removed: Empower Annuity Insurance Company — — 130 130
−Removed: Prudential Insurance Company of America 341 — — 341
−Removed: Life Insurance Company of North America — 356 — 356
−Removed: Other 166 19 14 199
+Added: 476 2,854 136 3,466
Not rated — 6 3 9
−Removed: Total recoverables related to acquisition, disposition or run-off activities 507 3,038 148 3,693
Total reinsurance recoverables before market risk benefits $ 620 $ 2,868 $ 438 $ 3,926
2 unchanged sentences
Total reinsurance recoverables (4)
−Removed: (1) Certified by a NRSRO.
(1) Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level.
−Removed: (3) Prior to the adoption of LDTI, "acquisition, disposition or run-off activities" in the table above included Berkshire and certain Other recoverables that are related to the Company's variable annuity reinsurance products discussed in section B below.
−Removed: These amounts are now reported at fair market value as MRBs, as further discussed in Note 10 to the Consolidated Financial Statements.
−Removed: At December 31, 2022, we reported $ 711 million of recoverables related to the GMDB variable annuity reinsurance product.
−Removed: 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.
+Added: (2) Certified by a Nationally Recognized Statistical Ratings Organization ("NRSRO").
+Added: (3) Comprised of 21 reinsurers of which 73 % is held by two reinsurers, Lincoln National Life Insurance Company and Lincoln Life and Annuity Company of New York.
(4) Includes $ 159 million of current reinsurance recoverables that are reported in Other current assets and $ 195 million of reinsurance recoverables classified as assets of businesses held for sale.
−Removed: 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.
−Removed: Effective Exit of Variable Annuity Reinsurance Business
The Company entered into an agreement with Berkshire to effectively exit the variable annuity reinsurance business via a reinsurance transaction in 2013.
3 unchanged sentences
As a result of the reinsurance transaction, amounts payable are offset by a corresponding reinsurance recoverable, provided the increased recoverable remains within the overall Berkshire limit.
−Removed: (In millions)
−Removed: Reinsurer (1)
−Removed: December 31, 2023 December 31, 2022 Collateral and Other Terms
−Removed: at December 31, 2023
−Removed: Berkshire $ 873 $ 1,116 95 % were secured by assets in a trust.
−Removed: Sun Life Assurance Company of Canada 92 115
−Removed: Liberty Re (Bermuda) Ltd.
−Removed: 104 128 100 % were secured by assets in a trust.
−Removed: SCOR SE 31 39 80 % were secured by a letter of credit.
−Removed: Market risk benefits (2)
−Removed: $ 1,100 $ 1,398
−Removed: (1) All reinsurers are rated A- equivalent and higher by an NRSRO.
−Removed: (2) Includes IBNR and outstanding claims of $ 19 million.
−Removed: These amounts are excluded from market risk benefits at December 31, 2023 in Note 10 and Note 11A to the Consolidated Financial Statements.
−Removed: 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.
−Removed: The impact of nonperformance risk (i.e., the risk that a counterparty might default) on the variable annuity reinsurance asset was immaterial for the years ended 2023, 2022 and 2021.
+Added: As of both December 31, 2024 and 2023, market risk benefits (shown in the table net of nonperformance risk as of December 31, 2024) are predominantly reinsured by Berkshire, which is rated AA+ by an NRSRO.
+Added: Approximately 95 % of the Berkshire recoverable is secured by assets in a trust.
Effects of Reinsurance
−Removed: The following table presents direct, assumed and ceded earned premiums for both short-duration and long-duration insurance contracts.
−Removed: It also presents reinsurance recoveries that have been netted against Medical costs and other benefit expenses in the Company's Consolidated Statements of Income.
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
−Removed: Short-duration contracts
−Removed: Direct $ 42,266 $ 36,747 $ 36,513
−Removed: Assumed 303 416 335
−Removed: Ceded ( 277 ) ( 265 ) ( 148 )
−Removed: Total short-duration contract premiums (1)
−Removed: 42,292 36,898 36,700
−Removed: Long-duration contracts
−Removed: Direct 2,084 3,219 4,753
−Removed: Assumed 72 85 99
−Removed: Ceded ( 211 ) ( 286 ) ( 398 )
−Removed: Total long-duration contract premiums 1,945 3,018 4,454
−Removed: Total premiums $ 44,237 $ 39,916 $ 41,154
−Removed: Total reinsurance recoveries $ 456 $ 702 $ 552
−Removed: (1) Total short-duration contracts written premiums were $ 41.1 billion, $ 35.0 billion and $ 35.6 billion for 2023, 2022 and 2021, respectively.
+Added: Total short-duration contract premiums (direct, assumed and ceded) were $ 43.9 billion, $ 42.3 billion and $ 36.9 billion for the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: Total long-duration contract premiums (direct, assumed and ceded) were $ 2.0 billion, $ 1.9 billion and $ 3.0 billion for the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: Reinsurance recoveries of $ 573 million, $ 456 million and $ 702 million as of December 31, 2024, 2023 and 2022, respectively, have been netted against Medical costs and other benefit expenses in the Company’s Consolidated Statements of Income.
+Added: Both short- and long-duration premiums are primarily direct premiums;
+Added: the amounts assumed and ceded were not material.
+Added: Total short-duration contract written premiums were $ 42.6 billion, $ 41.1 billion and $ 35.0 billion for the years ended December 31, 2024, 2023 and 2022, respectively.
Note 11 – Investments
−Removed: The 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.
−Removed: The sections below provide more detail regarding our investment balances and realized investment gains and losses.
−Removed: See Note 13 for information about the valuation of the Company's investment portfolio.
−Removed: Debt securities, commercial mortgage loans, derivative financial instruments and short-term investments with contractual maturities during the next twelve months are classified on the balance sheet as current investments, unless they are held as statutory deposits or restricted for other purposes and then they are classified in Long-term investments.
−Removed: Equity securities may include funds that are used in our cash management strategy and are classified as current investments.
−Removed: All other investments are classified as Long-term investments.
The following table summarizes the Company's investments by category and current or long-term classification:
12 unchanged sentences
(1) Investments related to the HCSC transaction that were held for sale as of December 31, 2024.
−Removed: These investments were primarily comprised of debt securities and commercial mortgage loans, and to a lesser extent, other long term investments.
+Added: These investments were primarily comprised of debt securities.
+Added: Accounting Policy.
+Added: Debt securities, commercial mortgage loans, derivative financial instruments and short-term investments with contractual maturities during the next 12 months are classified on the balance sheet as current investments, unless they are held as statutory deposits or restricted for other purposes and then they are classified as Long-term investments.
+Added: Equity securities may include funds that are used in our cash management strategy and are classified as current investments.
+Added: All other investments are classified as Long-term investments.
+Added: See Note 12 for information about the valuation of the Company's investment portfolio.
Investment Portfolio
2 unchanged sentences
Debt securities (including bonds, mortgage and other asset-backed securities, and preferred stocks redeemable by the investor) are classified as available for sale and are carried at fair value with changes in fair value recorded either in Accumulated other comprehensive loss within Shareholders' equity or in credit loss expense based on fluctuations in the allowance for credit losses, as further discussed below.
−Removed: Prior to the adoption of LDTI on January 1, 2023, net unrealized appreciation on debt securities supporting the Company's run-off settlement annuity business was reported in Non-current insurance and contractholder liabilities rather than Accumulated other comprehensive loss.
−Removed: See Note 16 for impact to Accumulated other comprehensive loss.
−Removed: When the Company intends to sell or determines that it is more likely than not to be required to sell an impaired debt security, the excess of amortized cost over fair value is directly written down with a charge to Net realized investment (losses) gains.
+Added: When the Company intends to sell or determines that it is more likely than not to be required to sell an impaired debt security, the excess of amortized cost over fair value is directly written down with a charge to Net investment losses.
Certain asset-backed securities are considered variable interest entities.
See Note 13 for additional information.
−Removed: The Company reviews declines in fair value from a debt security's amortized cost basis to determine whether a credit loss exists, and when appropriate, recognizes a credit loss allowance with a corresponding charge to credit loss expense, presented in Net realized investment (losses) gains in the Company's Consolidated Statements of Income.
+Added: The Company reviews declines in fair value from a debt security's amortized cost basis to determine whether a credit loss exists and, when appropriate, recognizes a credit loss allowance with a corresponding charge to credit loss expense, presented in Net investment losses in the Company's Consolidated Statements of Income.
The allowance for credit loss represents the excess of amortized cost over the greater of its fair value or the net present value of the debt security's projected future cash flows (based on qualitative and quantitative factors, including the probability of default and the estimated timing and amount of recovery).
31 unchanged sentences
Review of Declines in Fair Value.
−Removed: Management reviews impaired debt securities to determine whether a credit loss allowance is needed based on criteria that include:
−Removed: • severity of decline;
+Added: Management reviews debt securities in an unrealized loss position 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;
−Removed: • changes in the regulatory, economic or general market environment of the issuer's industry or geographic region.
+Added: 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).
19 unchanged sentences
Equity securities with a readily determinable fair value consist primarily of public equity investments in the health care sector and mutual funds that invest in fixed income debt securities while those without a readily determinable fair value consist of private equity investments.
−Removed: Changes in the fair values of equity securities that have a readily determinable fair value are reported in Net realized investment (losses) gains.
−Removed: Equity securities without a readily determinable fair value are carried at cost minus impairment, if any, plus or minus changes resulting from observable price changes.
+Added: Changes in the fair values of equity securities that have a readily determinable fair value are reported in Net investment losses.
+Added: Equity securities without a readily determinable fair value are carried at cost minus impairment plus or minus changes resulting from observable price changes.
The following table provides the values of the Company's equity security investments:
−Removed: The amount of impairments or value changes resulting from observable price changes on equity securities with no readily determinable fair value still held was not material to the financial statements as of December 31, 2023 or 2022.
December 31, 2024 December 31, 2023
3 unchanged sentences
Total $ 3,850 $ 561 $ 3,904 $ 3,362
−Removed: In 2023, we became a minority owner in VillageMD by investing $ 2.7 billion in VillageMD preferred equity.
−Removed: VillageMD is a provider of primary, multi-specialty and urgent care services that is majority-owned by Walgreens Boots Alliance, Inc.
−Removed: These securities are included in Equity securities with no readily determinable fair value in the above table.
−Removed: A compounding dividend of 5.5 % accrues annually on $ 2.2 billion of our cost basis in these shares.
−Removed: 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.
+Added: We are a minority owner in VillageMD, a provider of primary, multi-specialty and urgent care services that is majority-owned by Walgreens Boots Alliance, Inc.
+Added: These securities are included in equity securities with no readily determinable fair value in the above
+Added: We determined our investment in VillageMD was fully impaired and recorded a $ 2.7 billion loss in Net investment losses in the Company's Consolidated Statements of Income during the year ended December 31, 2024.
Commercial Mortgage Loans
1 unchanged sentence
Commercial mortgage loans are carried at unpaid principal balances, net of an allowance for expected credit losses, and classified as either current or long-term investments based on their contractual maturities.
−Removed: Changes in the allowance for expected credit losses are recognized as credit loss expense and presented in Net realized investment (losses) gains in the Company's Consolidated Statements of Income.
+Added: Changes in the allowance for expected credit losses are recognized as credit loss expense and presented in Net investment losses in the Company's Consolidated Statements of Income.
Each period, the Company establishes (or adjusts) its allowance for expected credit losses for commercial mortgage loans.
7 unchanged sentences
Credit Quality .
−Removed: The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period.
+Added: The Company regularly evaluates and monitors credit risk.
Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at origination that is then updated each year as part of the annual portfolio loan review.
The Company evaluates and monitors credit quality on a consistent and ongoing basis.
−Removed: Quality ratings are based on our evaluation of a number of key inputs related to the loan, including real estate market-related factors such as rental rates and vacancies, and property-specific inputs such as growth rate assumptions and lease rollover statistics.
−Removed: However, the two most significant contributors to the credit quality rating are the debt service coverage and loan-to-value ratios.
+Added: The annual portfolio review performed in the second quarter of 2024 confirmed ongoing strong overall credit quality in line with the previous year's results.
+Added: Quality ratings are based on our evaluation of a number of key inputs related to the loan.
+Added: The two most significant contributors to the credit quality rating are the debt service coverage and loan-to-value ratios.
The debt service coverage ratio measures the amount of property cash flow available to meet annual interest and principal payments on debt, with a ratio below 1.0 indicating that there is not enough cash flow to cover the required loan payments.
14 unchanged sentences
Other long-term investments include investments in unconsolidated entities, including certain limited partnerships and limited liability companies holding real estate, securities or loans, and health care-related investments.
−Removed: 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.
+Added: These investments are carried at cost plus the Company's ownership percentage of reporting income or loss, based on the financial statements of the
+Added: 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.
16 unchanged sentences
Total $ 4,576 $ 4,181 $ 2,659
−Removed: Short-term Investments and Cash Equivalents
+Added: Short-Term Investments
Accounting Policy.
Security investments with maturities of greater than three months to one year from time of purchase are classified as short-term, available for sale and carried at fair value that approximates cost.
−Removed: Cash equivalents consist of short-term investments with maturities of three months or less from the time of purchase and are carried at cost that approximates fair value.
+Added: Concentration of Risk
+Added: The Company did not have a concentration of investments in a single issuer or borrower exceeding 10% of shareholders' equity as of December 31, 2024 or 2023.
Derivative Financial Instruments
7 unchanged sentences
Various qualitative or quantitative methods appropriate for each hedge are used to formally assess and document hedge effectiveness at inception and each period throughout the life of a hedge.
−Removed: The Company's derivative financial instruments are presented as follows:
Fair Value Hedges of the Foreign Exchange-Related Changes in Fair Values of Certain Foreign-Denominated Bonds :
+Added: This program hedges the foreign exchange-related changes in fair values of certain foreign-denominated bonds.
+Added: The notional value of these derivatives matches the amortized cost of the hedged bonds.
+Added: A majority of these instruments are denominated in Euros, with the remaining instruments denominated in British Pounds Sterling and Australian Dollars.
Swap fair values are reported in Long-term investments or Other non-current liabilities.
−Removed: Offsetting changes in fair values attributable to the foreign exchange risk of the swap contracts and the hedged bonds are reported in Net realized investment (losses) gains.
−Removed: The portion of the swap contracts' changes in fair value excluded from the assessment of hedge effectiveness is recorded in Other comprehensive loss and recognized in Net investment income as swap coupon payments are accrued, offsetting the foreign-denominated coupons received on the designated bonds.
+Added: Offsetting changes in fair values attributable to the foreign exchange risk of the swap contracts and the hedged bonds are reported in Net investment losses.
+Added: The portion of the swap contracts' changes in fair value excluded from the assessment of hedge effectiveness is recorded in Other comprehensive loss and recognized in Net investment
+Added: income as swap coupon payments are accrued, offsetting the foreign-denominated coupons received on the designated bonds.
Net cash flows are reported in Operating activities, while exchanges of notional principal amounts are reported in Investing activities.
Fair Value Hedges of the Interest Rate Exposure on the Company's Long-Term Debt :
+Added: This program converts a portion of the interest rate exposure on the Company's long-term debt from fixed to variable rates.
+Added: This more closely aligns the Company's interest expense with the interest income received on its cash equivalent and short-term investment balances.
+Added: The variable rates are benchmarked to SOFR.
Using fair value hedge accounting, the fair values of the swap contracts are reported in other assets or other liabilities.
The critical terms of these swaps match those of the long-term debt being hedged.
−Removed: As a result, the carrying value of the hedged debt is adjusted to reflect changes in its fair value driven by the SOFR.
+Added: As a result, the carrying value of the hedged debt is adjusted to reflect changes in its fair value driven by SOFR.
The effects of those adjustments on interest expense are offset by the effects of corresponding changes in the swaps' fair value.
1 unchanged sentence
Cash flows relating to these contracts are reported in Operating activities.
−Removed: • Net investment hedges of certain foreign subsidiaries that conduct their business principally in currencies other than the U.S.
+Added: Net Investment Hedges of Certain Foreign Subsidiaries Operating Principally in Currencies Other than the U.S.
+Added: This program reduces the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in currencies other than the U.S.
+Added: The notional value of hedging instruments matches the hedged amount of subsidiary net assets.
+Added: Foreign currency swap contracts are denominated in Euros.
The fair values of the foreign currency swap and forward contracts are reported in other assets or other liabilities.
1 unchanged sentence
The portion of the change in fair values relating to foreign exchange spot rates will be recognized in earnings upon deconsolidation of the hedged foreign subsidiaries.
−Removed: The remaining changes in fair value of these instruments are excluded from our effectiveness assessment and recognized in Interest expense and other over the term of the instrument.
Cash flows relating to these contracts are reported in Investing activities.
4 unchanged sentences
(In millions) December 31, 2024 December 31, 2023
−Removed: Purpose Type of Instrument
−Removed: Fair value hedge:
−Removed: To hedge the foreign exchange-related changes in fair values of certain foreign-denominated bonds.
−Removed: The notional value of these derivatives matches the amortized cost of the hedged bonds.
−Removed: A majority of these instruments are denominated in Euros, with the remaining instruments denominated in British Pounds Sterling and Australian Dollars.
−Removed: Foreign currency swap contracts
+Added: Type of Instrument
+Added: Fair value hedge - Foreign currency swap contracts
$ 975 $ 1,026
−Removed: Fair value hedge:
−Removed: To convert a portion of the interest rate exposure on the Company's long-term debt from fixed to variable rates.
−Removed: This more closely aligns the Company's interest expense with the interest income received on its cash equivalent and short-term investment balances.
−Removed: The variable rates are benchmarked to SOFR.
−Removed: Interest rate swap contracts $ 1,500 $ 1,500
−Removed: Net investment hedge:
−Removed: To reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in currencies other than the U.S.
−Removed: The notional value of hedging instruments matches the hedged amount of subsidiary net assets.
−Removed: Foreign currency swap contracts are denominated in Euros.
−Removed: Foreign currency swap contracts
−Removed: Concentration of Risk
−Removed: The Company did not have a concentration of investments in a single issuer or borrower exceeding 10% of shareholders' equity as of December 31, 2023 or 2022.
+Added: Fair value hedge - Interest rate swap contracts $ 2,700 $ 1,500
+Added: Net investment hedge - Foreign currency swap contracts
Net Investment Income
9 unchanged sentences
Equity securities (1)
+Added: ( 114 ) 123 14
Commercial mortgage loans 61 65 59
5 unchanged sentences
Net investment income $ 973 $ 1,166 $ 1,155
−Removed: Realized Investment Gains and Losses
+Added: (1) Includes a $ 182 million impairment of dividend receivable for the year ended December 31, 2024.
+Added: See the Equity Securities section of Note 11A to the Consolidated Financial Statements for additional information.
+Added: Investment Gains and Losses
Accounting Policy.
−Removed: 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.
−Removed: 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.
−Removed: Prior period net realized investment losses have been updated to reflect the impact of adopting LDTI.
−Removed: 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:
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
−Removed: Net realized investment (losses) gains, excluding credit loss expense and asset write-downs
−Removed: $ ( 68 ) $ ( 451 ) $ 196
−Removed: Credit (loss) / recovery and other investment write-down (losses) ( 10 ) ( 36 ) 2
−Removed: Net realized investment (losses) gains, before income taxes
−Removed: $ ( 78 ) $ ( 487 ) $ 198
−Removed: Net realized investment losses for the years ended December 31, 2023 and December 31, 2022 were primarily due to mark-to-market losses on a strategic health care equity securities investment.
+Added: Investment gains and losses are based on specifically identified assets and result from sales, investment asset write-downs, changes 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.
+Added: Net investment losses before income taxes were $ 2,737 million, $ 78 million and $ 487 million for the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: This increase was primarily driven by the impairment of equity securities in 2024.
+Added: These amounts exclude investment gains and losses attributed to the Company's separate accounts because those gains and losses generally accrue directly to separate account policyholders.
Note 12 – Fair Value Measurements
+Added: Accounting Policy.
The Company carries certain financial instruments at fair value in the financial statements including debt securities, certain equity securities, short-term investments and derivatives.
27 unchanged sentences
(Level 3) Total
−Removed: December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
+Added: 2024 December 31, 2023 December 31,
+Added: 2024 December 31, 2023 December 31,
+Added: 2024 December 31, 2023 December 31,
+Added: 2024 December 31, 2023
Financial assets at fair value
24 unchanged sentences
Debt and Equity Securities .
−Removed: Approximately 94 % of the Company's investments in debt and equity securities are classified in Level 2 including most public and private corporate debt and equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks.
Third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics because many debt securities do not trade daily.
12 unchanged sentences
Credit risk related to the counterparty and the Company is considered when estimating the fair values of these derivatives.
−Removed: However, the Company is largely protected by collateral arrangements with counterparties and determined that no adjustments for credit risk were required as of December 31, 2023 or December 31, 2022.
The nature and use of these derivative financial instruments are described in Note 11.
4 unchanged sentences
The Company classifies certain newly issued, privately placed, complex or illiquid securities in Level 3.
−Removed: Approximately 5 % of debt and equity securities are priced using significant unobservable inputs and classified in this category.
+Added: Approximately 5 % of debt securities are priced using significant unobservable inputs and classified in this category.
Fair values of mortgage and other asset-backed securities, as well as corporate and government debt securities, are primarily determined using pricing models that incorporate the specific characteristics of each asset and related assumptions, including the investment type and structure, credit quality, industry and maturity date in comparison to current market indices, spreads, and liquidity of assets with similar characteristics.
6 unchanged sentences
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.
+Added: 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.
Fair Value as of Unobservable Adjustment Range (Weighted Average by Quantity) as of
5 unchanged sentences
bps 95 - 640 ( 310 )
+Added: Other debt securities 1 —
Total Level 3 debt securities $ 417 $ 447
−Removed: 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
1 unchanged sentence
Gains and losses reported in the table may include net changes in fair value that are attributable to both observable and unobservable inputs.
−Removed: For the Years Ended December 31,
(In millions) 2024 2023
−Removed: Debt and Equity Securities
+Added: Debt Securities
Beginning balance $ 447 $ 447
−Removed: (Losses) gains included in Shareholders' net income
−Removed: Gains (losses) included in Other comprehensive loss
+Added: Losses included in Shareholders' net income
+Added: (Losses) gains included in Other comprehensive loss
Purchases, sales and settlements
Purchases 17 10
+Added: Sales ( 2 ) —
Settlements ( 21 ) ( 52 )
8 unchanged sentences
Change in unrealized gain or (loss) included in Other comprehensive loss for assets held at the end of the reporting period
−Removed: 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) gains and Net investment income.
+Added: Total gains and losses included in Shareholders' net income in the tables above are reflected in the Consolidated Statements of Income as Net investment losses and Net investment income.
Gains and losses included in Other comprehensive loss, net of tax in the tables above are reflected in Net unrealized appreciation (depreciation) on securities and derivatives in the Consolidated Statements of Comprehensive Income.
7 unchanged sentences
Separate account assets and liabilities are contractholder funds maintained in accounts with specific investment objectives.
+Added: Our subsidiaries or external advisors manage invested assets of separate accounts on behalf of contractholders, including The Cigna Group Pension Plan, variable universal life products sold through our corporate-owned life insurance products and the run-off businesses.
The assets of these accounts are legally segregated and are not subject to claims that arise out of any of the Company's other businesses.
17 unchanged sentences
Total $ 7,278 $ 7,430
−Removed: (1) Non-guaranteed separate accounts include $ 4.0 billion as of December 31, 2023 and December 31, 2022 in assets supporting the Company's pension plans, including $ 0.2 billion classified in Level 3 as of December 31, 2023 and December 31, 2022.
+Added: (1) Non-guaranteed separate accounts include $ 3.8 billion as of December 31, 2024 and $ 4.0 billion as of December 31, 2023 in assets supporting the Company's pension plans, including $ 0.2 billion classified in Level 3 both as of December 31, 2024 and December 31, 2023.
+Added: Non-guaranteed separate accounts are primarily comprised of securities partnerships, real estate and real estate funds.
Separate account assets classified as Level 1 primarily include exchange-listed equity securities.
−Removed: Level 2 assets primarily include:
−Removed: • corporate and structured bonds valued using recent trades of similar securities or pricing models that discount future cash flows at estimated market interest rates as described above;
−Removed: • actively-traded institutional and retail mutual fund investments.
+Added: Level 2 assets primarily include corporate and structured bonds valued using recent trades of similar securities or pricing models that discount future cash flows at estimated market interest rates as described above, and actively traded institutional and retail mutual fund investments.
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 years ended December 31, 2024 or 2023.
−Removed: 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 .
−Removed: Substantially all of these assets support the Company's pension plans.
−Removed: The following table provides additional information on these investments:
−Removed: Fair Value as of Unfunded Commitment as of December 31, 2023 Redemption Frequency
−Removed: (if currently eligible) Redemption Notice
−Removed: (In millions) December 31, 2023 December 31, 2022
−Removed: Securities partnerships $ 419 $ 451 $ 254 Not applicable Not applicable
−Removed: Real estate funds 258 302 — Quarterly 30 - 90 days
−Removed: Hedge funds 3 4 — Up to annually, varying by fund 30 - 90 days
−Removed: Total $ 680 $ 757 $ 254
−Removed: As of December 31, 2023, the Company does not have plans to sell any of these assets at less than fair value.
−Removed: These investments are structured to satisfy longer-term investment objectives.
−Removed: 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.
Assets and Liabilities Measured at Fair Value under Certain Conditions
1 unchanged sentence
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.
−Removed: For the years ended December 31, 2023 and 2022, realized investment gains and losses, including those from impairments recognized and observable price changes, were not material.
+Added: During 2024, we determined our investment in VillageMD was fully impaired and recorded a $ 2.7 billion loss in Net investment losses in the Company's Consolidated Statements of Income.
+Added: For the year ended December 31, 2023, impairments recognized requiring the assets and liabilities described above to be measured at fair value were not material.
+Added: Observable price changes for equity securities with no readily determinable fair value were not material for the year ended December 31, 2024 and December 31, 2023.
Fair Value Disclosures for Financial Instruments Not Carried at Fair Value
11 unchanged sentences
the risks and rewards created by and shared through the entity;
−Removed: • the Company's ability to direct its activities, receive its benefits and absorb its losses relative to the other parties involved with the entity including its sponsors, equity holders, guarantors, creditors and servicers.
+Added: and the Company's ability to direct its activities, receive its benefits and absorb its losses relative to the other parties involved with the entity, including its sponsors, equity holders, guarantors, creditors and servicers.
The Company determined it was no t a primary beneficiary in any material variable interest entity as of December 31, 2024 or 2023.
11 unchanged sentences
Other Variable Interest Entities .
−Removed: The Company is involved in other types of variable interest entities, including certain asset-backed and corporate securities, real estate joint ventures that develop properties for residential and commercial use, independent physician associations ("IPAs") that provide care management services and international health care joint ventures.
+Added: The Company is involved in other types of variable interest entities, including certain asset-backed and corporate securities, real estate joint ventures that develop properties for residential and commercial use, independent physician associations that provide care management services, and international health care joint ventures.
As of December 31, 2024, the Company's maximum exposure to loss is $ 0.4 billion from certain asset-backed and corporate securities and $ 0.9 billion from real estate joint ventures, which represents the sum of our carrying value and the additional funding commitments for these entities.
−Removed: carrying values and maximum exposures for the remaining unconsolidated variable interest entities were not material as of December 31, 2023.
+Added: The carrying values and maximum exposures for the remaining unconsolidated variable interest entities were not material as of December 31, 2024.
The Company has not provided, and does not intend to provide, financial support to any of the variable interest entities in excess of its maximum exposure.
1 unchanged sentence
Note 14 – Collectively Significant Operating Unconsolidated Subsidiaries
−Removed: In addition to equity method investments, including certain limited partnerships and limited liability companies holding real estate, securities or loans (as disclosed in Note 12), we maintain a portfolio of operating joint ventures accounted for as equity method investments.
−Removed: Operating joint ventures accounted for under the equity method had a carrying value of $ 911 million as of December 31, 2023 and $ 734 million as of December 31, 2022, of which $ 214 million as of December 31, 2023 and $ 602 million as of December 31, 2022 related to our joint venture in China.
−Removed: Total Accumulated Other Comprehensive Income ("AOCI") includes losses of $ 510 million as of December 31, 2023 and $ 88 million as of December 31, 2022 related to the Company's share from unconsolidated entities reported on the equity method primarily driven by the requirement to update discount rate assumptions for certain long-duration liabilities following the adoption of LDTI (discussed in Note 2 to the Consolidated Financial Statements).
−Removed: For the years ended December 31, 2023, 2022 and 2021, none of our unconsolidated subsidiary investments were individually significant.
+Added: In addition to equity method investments in certain limited partnerships and limited liability companies holding real estate, securities or loans (as disclosed in Note 11), we maintain a portfolio of operating joint ventures accounted for as equity method investments.
+Added: Operating joint ventures had a carrying value of $ 656 million as of December 31, 2024 and $ 911 million as of December 31, 2023, of which $ 43 million as of December 31, 2024 and $ 214 million as of December 31, 2023 related to our joint venture in China.
+Added: Total Accumulated Other Comprehensive Income (Loss) ("AOCI") includes losses of $ 979 million as of December 31, 2024 and $ 510 million as of December 31, 2023 related to the Company's share of operating joint ventures primarily driven by the requirement to update discount rate assumptions for certain long-duration liabilities.
+Added: For the years ended December 31, 2024, 2023 and 2022, none of our equity method investments were individually significant.
+Added: In the fourth quarter of 2024, we sold a portion of an operating joint venture, reducing our ownership.
+Added: As a result, we recognized $ 496 million within Net gain (loss) on sale of businesses in our Consolidated Statements of Income.
Accounting Policy.
−Removed: We record in our Consolidated Statements of Income our proportionate share of net income or loss generated by equity method operating joint ventures within Fees and other revenues.
+Added: We record in our Consolidated Statements of Income our proportionate share of net income or loss generated by operating joint ventures within Fees and other revenues.
In certain instances, income or loss is reported on a one-month lag due to the timing of when financial information is received.
−Removed: The below summarized results of operations and financial position of the operating joint venture investments accounted for under the equity method reflects the latest available financial information and does not represent the Company's proportionate share of the assets, liabilities or earnings of such entities.
−Removed: Prior period operating joint venture amounts have been retrospectively restated to reflect the adoption of amended accounting guidance for long-duration insurance contracts, as discussed in Note 2 to the Consolidated Financial Statements.
+Added: The below summarized results of operations and financial position of the operating joint ventures reflects the latest available financial information and does not represent the Company's proportionate share of the assets, liabilities or earnings of such entities.
For the Years Ended December 31,
6 unchanged sentences
Note 15 – Accumulated Other Comprehensive Income (Loss)
−Removed: 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 10 to the Consolidated Financial Statements), foreign currency translation and the net postretirement benefits liability adjustment.
+Added: Accumulated Other Comprehensive Income (Loss) includes net unrealized appreciation (depreciation) 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.
−Removed: Shareholders' other comprehensive (loss), net of tax, for the years ended 2023, 2022 and 2021, is primarily driven by the change in discount rates for certain long-duration liabilities, unrealized changes in the market values of securities and derivatives and changes in postretirement benefits liabilities, including the impacts from unconsolidated entities reported on the equity method.
−Removed: 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:
+Added: Shareholders' other comprehensive loss, net of tax, for the years ended 2024, 2023 and 2022 is primarily attributable to 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.
+Added: Changes in the components of AOCI were as follows:
For the Years Ended December 31,
1 unchanged sentence
Securities and Derivatives
−Removed: Beginning balance, as previously disclosed $ 900
−Removed: Cumulative effect of accounting for Long-duration Insurance Contracts guidance (ASU 2018-12) 668
−Removed: Beginning balance, as retrospectively restated $ ( 332 ) $ 1,266 1,568
−Removed: Unrealized appreciation (depreciation) on securities and derivatives 620 ( 2,274 ) ( 335 )
−Removed: Tax (expense) benefit ( 146 ) 467 52
−Removed: Net unrealized appreciation (depreciation) on securities and derivatives 474 ( 1,807 ) ( 283 )
−Removed: Reclassification adjustment for losses included in Shareholders' net income ((Loss) gain on sale of businesses) — 172 —
−Removed: Reclassification adjustment for losses (gains) included in Shareholders' net income (Net realized investment (losses) gains) 38 47 ( 24 )
−Removed: Reclassification adjustment for (gains) included in Shareholders' net income (Selling, general and administrative expenses) ( 1 ) — —
−Removed: Reclassification adjustment for tax (benefit) expense included in Shareholders' net income ( 8 ) ( 10 ) 5
−Removed: Net losses (gains) reclassified from AOCI to Shareholders' net income 29 209 ( 19 )
+Added: Beginning balance $ 171 $ ( 332 ) $ 1,266
+Added: Unrealized appreciation (depreciation) on securities and derivatives, before reclassification, net of tax (expense) benefit of $( 207 ), $( 146 ) and $ 467 , respectively
+Added: 601 474 ( 1,807 )
+Added: Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 16 ), $( 8 ) and $( 48 ), respectively
Other comprehensive income (loss), net of tax
+Added: 661 503 ( 1,598 )
Ending balance $ 832 $ 171 $ ( 332 )
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
Net long-duration insurance and contractholder liabilities measurement adjustments
−Removed: Beginning balance, as previously disclosed $ —
−Removed: Cumulative effect of accounting for Long-duration Insurance Contracts guidance (ASU 2018-12) ( 832 )
−Removed: Beginning balance, as retrospectively restated $ ( 256 ) $ ( 765 ) ( 832 )
−Removed: Current period change in discount rate for certain long-duration liabilities ( 913 ) 642 59
−Removed: Tax benefit (expense) 222 ( 122 ) ( 3 )
−Removed: Net current period change in discount rate for certain long-duration liabilities ( 691 ) 520 56
−Removed: Current period change in instrument-specific credit risk for market risk benefits ( 29 ) ( 14 ) 13
−Removed: Tax benefit (expense) 5 3 ( 2 )
−Removed: Net current period change in instrument-specific credit risk for market risk benefits ( 24 ) ( 11 ) 11
+Added: Beginning balance $ ( 971 ) $ ( 256 ) $ ( 765 )
+Added: Net current period change in discount rate for certain long-duration liabilities, net of tax benefit (expense) of $ 357 , $ 222 and $( 122 ), respectively
+Added: ( 1,044 ) ( 691 ) 520
+Added: Net current period change in instrument-specific credit risk for market risk benefits, net of tax benefit of $ 6 , $ 5 and $ 3 , respectively
+Added: ( 23 ) ( 24 ) ( 11 )
Other comprehensive (loss) income, net of tax
+Added: ( 1,067 ) ( 715 ) 509
Ending balance $ ( 2,038 ) $ ( 971 ) $ ( 256 )
−Removed: (1) Established upon the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023.
−Removed: See Note 2 to the Consolidated Financial Statements for further information.
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
Translation of foreign currencies
−Removed: Beginning balance, as retrospectively restated $ ( 154 ) $ ( 233 ) $ ( 15 )
−Removed: Translation of foreign currencies — ( 277 ) ( 213 )
−Removed: Tax benefit (expense) 5 ( 33 ) ( 19 )
−Removed: Net translation of foreign currencies 5 ( 310 ) ( 232 )
−Removed: Reclassification adjustment for losses included in Net income ((Loss) gain on sale of businesses) — 358 —
−Removed: Reclassification adjustment for tax expense included in Net income — 29 —
−Removed: Net translation losses reclassified from AOCI to Net income — 387 —
−Removed: Translation of foreign currencies — 81 ( 213 )
−Removed: Tax benefit (expense) 5 ( 4 ) ( 19 )
−Removed: Other comprehensive income (loss), net of tax 5 77 ( 232 )
+Added: Beginning balance $ ( 149 ) $ ( 154 ) $ ( 233 )
+Added: Net translation of foreign currencies, before reclassification, net of tax benefit (expense) of $ 2 , $ 5 and $( 33 ), respectively
+Added: ( 60 ) 5 ( 310 )
+Added: Amounts reclassified to Shareholders' net income, net of tax expense of $ — , $ — and $ 29 , respectively
+Added: Other comprehensive (loss) income, net of tax
Net translation (loss) on foreign currencies attributable to noncontrolling interests — — ( 2 )
−Removed: Shareholders' other comprehensive income (loss), net of tax 5 79 ( 218 )
+Added: Shareholders' other comprehensive (loss) income, net of tax
Ending balance $ ( 198 ) $ ( 149 ) $ ( 154 )
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
Postretirement benefits liability
Beginning balance $ ( 915 ) $ ( 916 ) $ ( 1,336 )
−Removed: Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (Interest expense and other) 46 65 85
−Removed: Reclassification adjustment for (gains) included in Shareholders' net income ((Loss) gain on sale of businesses) — ( 1 ) —
−Removed: Reclassification adjustment for settlement (Interest expense and other) — — 4
−Removed: Reclassification adjustment for tax (benefit) included in Shareholders' net income ( 11 ) ( 16 ) ( 21 )
−Removed: Net adjustments reclassified from AOCI to Shareholders' net income 35 48 68
−Removed: Valuation update ( 46 ) 487 448
−Removed: Tax benefit (expense) 12 ( 115 ) ( 106 )
−Removed: Net change due to valuation update ( 34 ) 372 342
−Removed: Other comprehensive income, net of tax 1 420 410
+Added: Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 7 ), $( 11 ) and $( 16 ), respectively
+Added: Net change due to valuation update, before reclassification, net of tax benefit (expense) of $ 14 , $ 12 and $( 115 ), respectively
+Added: ( 44 ) ( 34 ) 372
+Added: Other comprehensive (loss) income, net of tax
Ending balance $ ( 937 ) $ ( 915 ) $ ( 916 )
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
Total Accumulated other comprehensive loss
−Removed: Beginning balance, as previously disclosed $ ( 861 )
−Removed: Cumulative effect of accounting for Long-duration Insurance Contracts guidance (ASU 2018-12) ( 164 )
−Removed: Beginning balance, as retrospectively restated $ ( 1,658 ) $ ( 1,068 ) ( 1,025 )
−Removed: Shareholders' other comprehensive (loss), net of tax ( 206 ) ( 590 ) ( 43 )
+Added: Beginning balance $ ( 1,864 ) $ ( 1,658 ) $ ( 1,068 )
+Added: Shareholders' other comprehensive (loss), net of tax benefit of $ 149 , $ 79 and $ 165 , respectively
+Added: ( 477 ) ( 206 ) ( 590 )
Ending balance $ ( 2,341 ) $ ( 1,864 ) $ ( 1,658 )
−Removed: Note 17 – Organizational Efficiency Plan
−Removed: During the fourth quarter of 2023, the Company approved a strategic realignment to drive greater operating effectiveness and efficiency.
−Removed: This plan positions us to be more efficient and focused to deliver differentiated value and services to our clients and customers.
−Removed: We recognized a charge in Selling, general and administrative expenses of $ 252 million, pre-tax ($ 193 million, after-tax).
−Removed: This charge included $ 232 million of accrued expenses primarily for severance costs related to headcount reductions, as well as, $ 20 million of one-time expenses related to abandonment of leased assets and impairment of property and equipment.
−Removed: We expect substantially all of the accrued liability to be paid by the end of 2024.
−Removed: The following table summarizes a roll forward of the accrued liability recorded in Accrued expenses and other liabilities:
−Removed: (In millions)
−Removed: Balance, December 31, 2022
−Removed: Fourth quarter 2023 charge
−Removed: 2023 payments
−Removed: Balance, December 31, 2023
Note 16 – Pension
9 unchanged sentences
Under the corridor method, net unrecognized actuarial gains (losses) are initially recorded in Accumulated other comprehensive loss.
−Removed: When the unrecognized gain (loss) exceeds 10% of the
−Removed: benefit obligation, that excess is amortized to expense over the expected remaining lives of plan participants.
+Added: When the unrecognized gain (loss) exceeds 10% of the benefit obligation, that excess is amortized to expense over the expected remaining lives of plan participants.
The net plan expense is reported in Interest expense and other in the Consolidated Statements of Income.
−Removed: For balance sheet purposes, we measure plan assets at fair value.
+Added: We measure plan assets at fair value for balance sheet purposes and to measure pension benefit costs.
When the actual return differs from the expected return, those differences are reflected in the net unrealized actuarial gain (loss) discussed above.
−Removed: However, to measure pension benefit costs, we use a market-related asset valuation that differs from the actual fair value for domestic pension plan assets invested in non-fixed income investments.
−Removed: The market-related value recognizes the difference between actual and expected long-term returns in the portfolio over five years, a method that reduces the short-term impact of market fluctuations on pension costs.
−Removed: The market-related asset value was approximately $ 4.0 billion, compared with a fair value of approximately $ 4.1 billion at December 31, 2023.
Funded Status and Amounts Included in Accumulated Other Comprehensive Loss
7 unchanged sentences
Interest cost 194 204
−Removed: Actuarial losses (gains), net (1)
+Added: Actuarial (gains) losses, net (1)
Benefits paid from plan assets ( 328 ) ( 294 )
9 unchanged sentences
Amounts presented in Consolidated Balance Sheets
−Removed: (1) 2023 losses reflect a decrease in the discount rate while 2022 gains reflect an increase in the discount rate.
+Added: (1) 2024 gains reflect an increase in the discount rate, while 2023 losses reflect a decrease in the discount rate.
We fund our qualified pension plans at least at the minimum amount required by the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006.
2 unchanged sentences
Future years' contributions will ultimately be based on a wide range of factors, including but not limited to asset returns, discount rates and funding targets.
−Removed: Non-qualified pension plans are generally funded on a pay-as-you-go basis as there are no plan assets for these plans.
+Added: Nonqualified pension plans are generally funded on a pay-as-you-go basis as there are no plan assets for these plans.
Benefit Payments.
17 unchanged sentences
Prior actuarial losses, net 39 52 89
−Removed: Settlement loss — — 4
+Added: Curtailment loss 1 — —
Net (benefit) cost $ ( 12 ) $ 53 $ ( 41 )
24 unchanged sentences
Total equity securities 27 33
−Removed: Securities partnerships 419 452
−Removed: Real estate funds, including pooled separate accounts (1)
+Added: Securities partnerships, including pooled separate accounts (1)
+Added: Real estate and real estate funds, including pooled separate accounts (1)
Commercial mortgage loans 27 46
13 unchanged sentences
The Company sponsors a 401(k) plan.
−Removed: All employees are immediately eligible for the plan at hire and the Company matches a portion of employees' contributions to the plan.
−Removed: Participants in the plan may invest in various funds that invest in the Company's common stock, several diversified stock funds, a bond fund or stable value funds.
+Added: All employees are immediately eligible for the plan at hire.
+Added: The Company matches a portion of employees' contributions to the plan and may increase its matching contributions if the Company's annual performance meets certain targets.
+Added: Plan participants may invest in various funds that invest in the Company's common stock, several diversified stock funds, a bond fund or stable value funds.
The Company common stock fund under the plan constitutes an "employee stock ownership plan" as defined in the Internal Revenue Code.
Dividends from the Company common stock fund are reinvested in a participant's stock fund account unless the participant elects to receive the dividends in cash.
−Removed: The Company may elect to increase its matching contributions if the Company's annual performance meets certain targets.
−Removed: The Company's annual expense for the plan was as follows:
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
−Removed: Expense $ 296 $ 274 $ 268
+Added: The Company's annual expense for the plan was $ 301 million, $ 296 million and $ 274 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Note 17 – Employee Incentive Plans
54 unchanged sentences
Restricted Stock
−Removed: The Company awards restricted stock (grants and units) to the Company's employees that vest over periods ranging from one to three years .
+Added: The Company awards restricted stock (grants and units) to the Company's employees that vest over periods ranging from one year to three years .
Recipients of restricted stock awards accumulate dividends during the vesting period, but generally forfeit their awards and accumulated dividends if their employment terminates before the vesting date.
Accounting Policy.
−Removed: Fair value of restricted stock awards is equal to the market price of The Cigna Group's common stock on the date of grant.
+Added: Fair value of restricted stock awards is equal to the market price of The Cigna Group common stock on the date of grant.
This fair value is reduced by awards that are expected to forfeit.
15 unchanged sentences
Approximately 8,900 employees held 1.3 million restricted stock awards at the end of 2024 with $ 203 million of related compensation expense to be recognized over the next two years (weighted average period).
−Removed: Strategic Performance Shares ("SPS")
+Added: Strategic Performance Shares ("SPSs")
The Company awards SPSs to executives and certain other key employees generally with a performance period of three years .
6 unchanged sentences
Expense is initially accrued for "performance condition" SPSs based on the most likely outcome, but evaluated for adjustment each period for updates in the expected outcome.
−Removed: Expense is adjusted to the actual outcome (number of shares awarded times the share price at the grant date) at the end of the performance period.
+Added: Expense is adjusted to the actual outcome (number of shares awarded multiplied by the share price at the grant date) at the end of the performance period.
The following table shows the status of, and changes in, SPSs:
14 unchanged sentences
Shares of The Cigna Group common stock distributed upon SPS vesting
+Added: 257 $ 86 257 $ 76 137 $ 31
Approximately 600 employees held 601,000 SPSs at the end of 2024, and $ 64 million of related compensation expense is expected to be recognized over the next two years .
14 unchanged sentences
On a quarterly basis, the Company performs a qualitative impairment assessment to determine if events or changes in circumstances indicate that it is more likely than not that the carrying value of a reporting unit exceeds its estimated fair value.
−Removed: Fair value of a reporting unit is generally estimated based on discounted cash flow analysis and market approach models using assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price.
+Added: The fair value of a reporting unit is generally estimated based on discounted cash flow analysis and market approach models using assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price.
Following a change in reporting units or held for sale determination, goodwill is allocated using relative fair value.
The significant assumptions and estimates used in determining fair value primarily include the discount rate and future cash flows.
−Removed: A discount rate is selected to correspond with each reporting unit's weighted average cost of capital, consistent with
−Removed: that used for investment decisions considering the specific and detailed operating plans and strategies within each reporting unit.
+Added: A discount rate is selected to correspond with each reporting unit's weighted average cost of capital, consistent with that used for investment decisions considering the specific and detailed operating plans and strategies within each reporting unit.
Projections of future cash flows differ by reporting unit and are consistent with our ongoing strategic projections.
−Removed: Future cash flows for Evernorth Health Services are primarily driven by the forecasted gross margins of the business, as well as operating expenses and long-term growth rates.
+Added: Future cash flows for Evernorth Health Services reporting units are primarily driven by the forecasted gross margins of the business, as well as operating expenses and long-term growth rates.
Future cash flows for our other reporting units are primarily driven by forecasted revenues, benefit expenses, operating expenses and long-term growth rates.
1 unchanged sentence
Goodwill activity was as follows:
−Removed: (In millions) Evernorth Health Services Cigna Healthcare Other Operations Total
+Added: (In millions) Evernorth Health Services Cigna Healthcare Total
Balance at January 1, 2023
$ 35,130 $ 10,681 $ 45,811
−Removed: Goodwill disposed — — ( 234 ) ( 234 )
+Added: Goodwill transferred to assets of businesses held for sale (1)
+Added: — ( 1,553 ) ( 1,553 )
Impact of foreign currency translation and other adjustments — 1 1
1 unchanged sentence
35,130 9,129 44,259
−Removed: Goodwill transferred to assets of businesses held for sale — ( 1,553 ) — ( 1,553 )
+Added: Goodwill acquired 114 — 114
Impact of foreign currency translation and other adjustments 190 ( 193 ) ( 3 )
1 unchanged sentence
$ 35,434 $ 8,936 $ 44,370
−Removed: (1) Includes $ 234 million classified as assets of businesses held for sale, all reported within Other Operations.
+Added: (1) See Note 5 to the Consolidated Financial Statements for further discussion of 2024 and 2023 goodwill impairments.
Other Intangible Assets
2 unchanged sentences
The fair value of purchased customer relationships and the amortization method were determined as of the dates of purchase using an income approach that relies on projected future net cash flows, including key assumptions for customer attrition and discount rates.
−Removed: The Company's definite-lived intangible assets are amortized on an accelerated or straight-line basis, reflecting their pattern of economic benefits, over periods from three to 30 years.
+Added: The Company's definite-lived intangible assets are amortized on an accelerated or straight-line basis, reflecting their pattern of economic benefits, over periods from 6 to 30 years.
Management revises amortization periods if it believes there has been a change in the length of time that an intangible asset will continue to have value.
12 unchanged sentences
Other intangible assets (1)
−Removed: Value of business acquired ("VOBA" reported in Other assets)
38,687 9,250 29,437
+Added: Value of business acquired ("VOBA" reported in Other assets) (2)
+Added: Total $ 38,898 $ 9,392 $ 29,506
December 31, 2023
3 unchanged sentences
Other intangible assets (1)
+Added: 38,695 7,755 30,940
Value of business acquired (reported in Other assets) (2)
Total $ 38,906 $ 7,897 $ 31,009
−Removed: (1) Includes $ 69 million of VOBA and $ 77 million of Other intangible assets classified as assets of businesses held for sale.
−Removed: The Company has indefinite-lived intangible assets totaling $ 8.5 billion at December 31, 2023 and December 31, 2022, largely consisting of the Express Scripts trade name.
+Added: (1) Includes $ 20 million and $ 77 million of Other intangible assets classified as assets of businesses held for sale as of December 31, 2024 and December 31, 2023, respectively.
+Added: (2) Includes $ 69 million of VOBA classified as assets of businesses held for sale as of both December 31, 2024 and December 31, 2023.
+Added: The Company has indefinite-lived intangible assets totaling $ 8.5 billion at both December 31, 2024 and December 31, 2023, largely consisting of the Express Scripts trade name.
Property and Equipment
6 unchanged sentences
buildings and improvements, 10 to 40 years;
−Removed: purchased and internally developed software, three to five years ;
−Removed: and furniture and equipment (including computer equipment), three to 10 years.
+Added: purchased and internally developed software, 3 to 5 years;
+Added: and furniture and equipment (including computer equipment), 3 to 10 years.
Improvements to leased facilities are depreciated over the lesser of the remaining lease term or the estimated life of the improvement .
14 unchanged sentences
Total property and equipment (1)
−Removed: (1) Includes $ 176 million of Property and equipment net carrying value classified as assets of businesses held for sale.
+Added: 12,437 8,566 3,871
+Added: (1) Includes $ 302 million and $ 176 million of Property and equipment net carrying value classified as assets of businesses held for sale as of December 31, 2024 and December 31, 2023 , respectively.
Components of Depreciation and Amortization.
9 unchanged sentences
(In millions) Pre-tax Amortization
−Removed: Note 21 – Leases
−Removed: The Company's leases are primarily for office space and certain computer and other equipment and have terms of up to 35 years.
−Removed: Accounting policy.
−Removed: The Company determines if an arrangement is a lease and its lease classification (operating or finance) at inception.
−Removed: Both operating and finance leases result in (1) a right-of-use ("ROU") asset that represents our right to use the underlying asset for the lease term and (2) a lease liability that represents our obligation to make lease payments arising from the lease.
−Removed: ROU assets and lease liabilities are reflected in the following lines in the Company's Consolidated Balance Sheets:
−Removed: ROU Asset Current Lease Liability Non-Current Lease Liability
−Removed: Operating lease Other assets Accrued expenses and other liabilities (current) Other liabilities (non-current)
−Removed: Finance lease Property and equipment Short-term debt Long-term debt
−Removed: These lease assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term.
−Removed: Most of the Company's leases do not provide an implicit rate, so the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.
−Removed: The ROU asset also includes any lease pre-payments made and excludes lease incentives for operating leases.
−Removed: The Company's expected life of a lease may consider options to extend or terminate a lease when it is reasonably certain that the Company will exercise that option.
−Removed: The Company has lease agreements with lease and non-lease components that are accounted for as a single lease component.
−Removed: Operating lease ROU assets are amortized on a straight-line basis over the lease term, which is representative of the pattern in which benefit is expected to be derived from the right to use the underlying asset.
−Removed: Variable lease payments are expensed as incurred and represent amounts that are neither fixed in nature, such as maintenance and other services provided by the lessor, nor tied to an index or rate.
−Removed: The components of lease expense were as follows:
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
−Removed: Operating lease cost $ 115 $ 124 $ 170
−Removed: Finance lease cost:
−Removed: Amortization of ROU assets 41 33 22
−Removed: Interest on lease liabilities 4 2 2
−Removed: Total finance lease cost 45 35 24
−Removed: Variable lease cost 38 41 39
−Removed: Total lease cost $ 198 $ 200 $ 233
−Removed: Supplemental cash flow information related to leases was as follows:
−Removed: For the Years Ended December 31,
−Removed: (In millions) 2023 2022 2021
−Removed: Cash paid for amounts included in the measurement of lease liabilities:
−Removed: Operating cash outflows from operating leases $ 132 $ 148 $ 167
−Removed: Operating cash outflows from finance leases $ 4 $ 2 $ 2
−Removed: Financing cash outflows from finance leases $ 39 $ 33 $ 22
−Removed: ROU assets obtained in exchange for lease obligations:
−Removed: Operating leases $ 103 $ 43 $ 122
−Removed: Finance leases $ 48 $ 84 $ 20
−Removed: Operating and finance lease ROU assets and lease liabilities were as follows:
−Removed: (In millions) December 31, 2023 December 31, 2022
−Removed: Operating leases:
−Removed: Operating lease ROU assets in Other assets
−Removed: Accrued expenses and other liabilities $ 105 $ 114
−Removed: Other non-current liabilities 340 346
−Removed: Total operating lease liabilities $ 445 $ 460
−Removed: Finance leases:
−Removed: Property and equipment, gross $ 177 $ 145
−Removed: Accumulated depreciation ( 73 ) ( 48 )
−Removed: Property and equipment, net $ 104 $ 97
−Removed: Short-term debt $ 42 $ 33
−Removed: Long-term debt 66 66
−Removed: Total finance lease liabilities $ 108 $ 99
−Removed: As of December 31, 2023, the weighted average remaining lease term was 6 years for operating leases and 3 years for finance leases, and the weighted average discount rate was 3.45 % for operating leases and 4.29 % for finance leases.
−Removed: Maturities of lease liabilities are as follows:
−Removed: (In millions) Operating Leases Finance Leases
−Removed: 2024 $ 110 $ 46
−Removed: Thereafter 98 —
−Removed: Total lease payments 497 115
−Removed: imputed interest 52 7
−Removed: Total $ 445 $ 108
Note 19 – Shareholders' Equity and Dividend Restrictions
13 unchanged sentences
Maximum loans to the parent company permitted without regulatory approval $ 1.4
−Removed: Restricted GAAP net assets of The Cigna Group's subsidiaries $ 12.3
+Added: Restricted GAAP net assets of subsidiaries of The Cigna Group
(1) Excludes amounts associated with foreign operated equity method joint ventures.
7 unchanged sentences
The current income tax provision generally represents estimated amounts due on income tax returns for the year reported to various jurisdictions plus the effect of any uncertain tax positions.
+Added: The Company uses the deferral method of accounting on investments that generate tax credits.
+Added: Under this method, the investment tax credits are recognized as a reduction to the related asset, which are generally reported in Other assets in the Consolidated Balance Sheets.
The Company recognizes a liability for uncertain tax positions if management believes the probability that the positions will be sustained is 50% or less.
11 unchanged sentences
Total current taxes 1,586 1,800 2,087
−Removed: Deferred taxes (benefits)
+Added: Deferred taxes (tax benefits)
income tax benefits
( 142 ) ( 533 ) ( 275 )
−Removed: Foreign income (tax benefits) taxes
+Added: Foreign income taxes (tax benefits)
64 ( 1,046 ) ( 28 )
9 unchanged sentences
Tax expense at nominal rate $ 1,107 21.0 % $ 1,158 21.0 % $ 1,763 21.0 %
−Removed: Impact of sale of businesses — — ( 37 ) ( 0.4 ) — —
−Removed: Impact of businesses held for sale ( 213 ) ( 3.9 ) — — — —
−Removed: Effect of foreign earnings ( 173 ) ( 3.1 ) ( 96 ) ( 1.2 ) ( 33 ) ( 0.5 )
+Added: Change in valuation allowance 767 14.6 1,290 23.4 — —
State income tax (benefit), net of federal income tax benefit
62 1.2 ( 39 ) ( 0.7 ) 16 0.2
−Removed: Swiss tax attributes ( 1,674 ) ( 30.4 ) — — — —
+Added: Investment tax credits ( 111 ) ( 2.1 ) ( 48 ) ( 0.8 ) ( 14 ) ( 0.2 )
+Added: Impact of businesses held for sale ( 129 ) ( 2.4 ) ( 213 ) ( 3.9 ) — —
+Added: Effect of foreign earnings ( 252 ) ( 4.9 ) ( 173 ) ( 3.1 ) ( 96 ) ( 1.2 )
Other foreign tax attributes — — ( 153 ) ( 2.8 ) — —
−Removed: Change in valuation allowance 1,290 23.4 — — — —
+Added: Swiss tax attributes — — ( 1,674 ) ( 30.4 ) — —
+Added: Impact of sale of businesses — — — — ( 37 ) ( 0.4 )
Other 47 0.9 ( 7 ) ( 0.1 ) ( 17 ) ( 0.2 )
1 unchanged sentence
Consolidated pre-tax income from the Company's foreign operations was approximately 62 % of the Company's pre-tax income in 2024, 48 % in 2023 and 46 % in 2022.
−Removed: The increase over 2022 is primarily driven by an increase to the Company's international pharmaceutical operations, partially offset by a reduction in earnings from the sold entities.
−Removed: Foreign Jurisdiction Tax Attributes.
−Removed: Impacting the effective tax rate for the year ended December 31, 2023 was the recording of the Company's net deferred tax asset associated with foreign tax law changes and agreements in certain tax jurisdictions.
−Removed: The Company established deferred tax assets of approximately $ 1.8 billion associated with the foreign tax attributes and a related $ 772 million valuation allowance against these deferred tax assets based on projections of future earnings and requirements to utilize the assets within certain time periods.
−Removed: It is possible in future periods that the Company may revalue these net deferred tax assets due to modifications in certain assumptions such as forecasted future earnings.
−Removed: Sale of Medicare Advantage and Related Businesses .
−Removed: The Company recorded $ 584 million of deferred tax benefits and an equal amount of valuation allowance in connection with the HCSC transaction.
−Removed: The valuation allowance has been recorded due to the uncertainty relative to the recovery of the deferred tax benefits as the Company does not currently have capital gain capacity to offset these capital losses.
+Added: The increase over 2023 is primarily attributable to a reduction in domestic earnings driven by the current-year impairment of equity securities (discussed below).
+Added: Investment Tax Credits.
+Added: Company investments in renewable energy projects provided $ 1,057 million, $ 453 million and $ 129 million of investment tax credits for the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: The Company accounted for the tax credits using the deferral method and accordingly reduced the associated carrying value of the related assets by these amounts.
+Added: Impairment of Equity Securities .
+Added: In 2024, the Company recorded a deferred tax benefit of $ 636 million and an equal amount of valuation allowance in connection with the impairment of equity securities.
+Added: The valuation allowance had the effect of increasing the Company's effective tax rate.
Deferred Income Taxes
2 unchanged sentences
Deferred tax assets
−Removed: Employee and retiree benefit plans $ 217 $ 189
+Added: Foreign tax attributes $ 1,752 $ 1,827
+Added: Deferred loss - sale of business 773 584
+Added: Investments 561 —
Other insurance and contractholder liabilities 300 353
Loss carryforwards 270 200
−Removed: Deferred loss - sale of business 584 —
Other accrued liabilities 207 244
−Removed: Policy acquisition expenses 39 36
+Added: Employee and retiree benefit plans 177 217
Unrealized depreciation on investments and foreign currency translation 93 81
−Removed: Foreign tax attributes 1,827 —
+Added: Policy acquisition expenses — 39
Other 256 242
3 unchanged sentences
Deferred tax liabilities
−Removed: Depreciation and amortization 371 512
Acquisition-related basis differences 7,822 8,105
+Added: Depreciation and amortization 243 371
+Added: Policy acquisition expenses 74 —
Total deferred tax liabilities 8,139 8,476
2 unchanged sentences
(1) Deferred tax liabilities, net in the Consolidated Balance Sheets as of December 31, 2024, excludes $ 954 million reported in Other assets and $ 61 million reported in liabilities of businesses held for sale.
−Removed: Management believes that future results will be sufficient to realize a majority of the Company's gross deferred tax assets.
−Removed: As of December 31, 2023, we had approximately $ 218 million in deferred tax assets ("DTAs") associated with unrealized investment losses that are partially recorded in Accumulated other comprehensive loss.
−Removed: We have determined that a valuation allowance against the DTAs is not currently required based on the Company's ability to carry back losses and our ability and intent to hold certain securities until recovery.
−Removed: We continue to monitor and evaluate the need for any valuation allowance in the future.
−Removed: As of December 31, 2023, we had approximately $ 1.8 billion in DTAs associated with the foreign tax attributes as discussed above.
−Removed: We have determined that approximately $ 772 million valuation allowance against these DTAs is required based on the Company's taxable income projections and the requirement to utilize the assets within certain time periods.
−Removed: Additionally, the Company has $ 584 million of deferred tax assets and a full valuation allowance associated with the HCSC transaction, as discussed above.
−Removed: Valuation allowances are established against deferred tax assets when it is determined that it is more likely than not that the asset will not be recognized.
+Added: Deferred tax liabilities, net in the Consolidated Balance Sheets as of December 31, 2023, excludes $ 1,055 million reported in Other assets and $ 69 million reported in liabilities of businesses held for sale.
+Added: Management believes that future results will be sufficient to realize the Company's gross deferred tax assets ("DTAs") that remain after valuation allowance.
Valuation allowances have been established against certain federal, state and foreign tax attributes.
There are multiple expiration dates associated with these tax attributes.
+Added: As of December 31, 2024, the Company had approximately $ 880 million in DTAs associated with the impairment of equity securities and other unrealized investment losses (See Note 11).
+Added: As discussed above, a valuation allowance of $ 636 million has been established against the DTAs related to the impairment of equity securities.
+Added: We have determined that a valuation allowance against the remaining DTAs is not currently required based on the Company's loss carryback capacity and ability and intent to hold certain investment securities until recovery.
+Added: Foreign Jurisdiction Tax Attributes.
+Added: As of both December 31, 2024 and 2023, the Company had DTAs of approximately $ 1.8 billion associated with foreign tax law changes and agreements in certain tax jurisdictions and a related $ 772 million valuation allowance against these deferred tax assets based on projections of future earnings and requirements to utilize the assets within certain time periods.
+Added: It is possible in future periods that the Company may revalue these net deferred tax assets due to modifications in certain assumptions, such as forecasted future earnings.
+Added: Sale of Medicare Advantage and Related Businesses .
+Added: As of December 31, 2024 and 2023, the Company has recorded $ 773 million and $ 584 million, respectively, of deferred tax benefits and a valuation allowance of $ 715 million and $ 584 million, respectively, in connection with the HCSC transaction.
+Added: The valuation allowance has been recorded due to the uncertainty relative to the recovery of the deferred tax benefits as the Company does not anticipate having capital gain capacity to offset these capital losses.
Uncertain Tax Positions
8 unchanged sentences
Balance at December 31, $ 1,477 $ 1,399 $ 1,343
−Removed: Substantially all unrecognized tax benefits would impact Shareholders' net income if recognized.
+Added: Substantially all unrecognized tax benefits would increase Shareholders' net income if recognized.
The Company classifies net interest expense on uncertain tax positions as a component of income tax expense and in Other non-current liabilities in the Consolidated Balance Sheets.
−Removed: In addition to the amounts in the table above, the liability for net interest
−Removed: expense on uncertain tax positions was approximately $ 220 million as of December 31, 2023, $ 176 million as of December 31, 2022 and $ 148 million as of December 31, 2021.
+Added: In addition to the amounts in the table above, the liability for net interest expense on uncertain tax positions was approximately $ 228 million, $ 220 million and $ 176 million as of December 31, 2024, December 31, 2023 and December 31, 2022, respectively.
Other Tax Matters
−Removed: The statutes of limitations for The Cigna Group's consolidated federal income tax returns through 2016 have closed.
+Added: The statutes of limitations for the Company's consolidated federal income tax returns through 2016 have closed.
+Added: The statute of limitations for the Company's 2020 tax return has also closed.
However, The Cigna Group filed amended returns for both the 2015 and 2016 tax years, which are under review by the Internal Revenue Service ("IRS").
−Removed: Additionally, the IRS is examining The Cigna Group's returns for 2017 and 2018.
−Removed: The statutes of limitations for Express Scripts' consolidated federal income tax returns through 2012 has closed.
−Removed: However, for 2010 through 2012 tax years, there remains a significant disputed matter.
−Removed: The IRS is also examining Express Scripts' consolidated federal income tax returns for 2013 through 2018.
+Added: Additionally, the IRS is examining the Company's returns for 2017 and 2018.
+Added: The IRS has examined Express Scripts' tax returns for 2010 through 2018, for which there remains significant disputed matters.
+Added: In addition, the Company has pending refund claims for various years.
The Company has established adequate reserves for these matters.
The Company conducts business in a number of state and foreign jurisdictions and may be engaged in multiple audit proceedings at any given time.
−Removed: Generally, no further state or foreign audit activity is expected for tax years prior to 2014 for The Cigna Group's entities and 2010 for Express Scripts' entities.
+Added: Generally, no further state or foreign audit activity is expected for tax years prior to 2013 for Express Scripts entities and 2014 for all other entities of The Cigna Group.
On December 15, 2022, the European Union ("EU") Member States formally adopted the EU's Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development ("OECD") Pillar Two Framework that was supported by over 130 countries worldwide.
1 unchanged sentence
A significant number of other countries are also implementing similar legislation, and the OECD continues to release additional guidance on these rules.
−Removed: The Company is within the scope of the OECD Pillar Two model rules and continues to evaluate the potential impact on future periods of the Pillar Two Framework, pending legislative adoption by additional individual countries but expects the impact to not materially change its results from operations.
+Added: The Company is within the scope of the OECD Pillar Two model rules and continues to evaluate the potential impact on future periods of the Pillar Two Framework.
Note 21 – Contingencies and Other Matters
16 unchanged sentences
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.
−Removed: There were no liabilities for these indemnification obligations as of December 31, 2023.
+Added: There were no recorded liabilities for these indemnification obligations as of December 31, 2024.
Guaranty Fund Assessments
5 unchanged sentences
Additionally, the Company has received and is cooperating with subpoenas or similar processes from various governmental agencies requesting information, all arising in the normal course of its business.
−Removed: Disputed tax matters arising from audits by the Internal Revenue Service or other state and foreign jurisdictions, including those resulting in litigation, are accounted for under GAAP guidance for uncertain tax positions, as described in Note 23.
+Added: Disputed tax matters arising from audits by the IRS or other state and foreign jurisdictions, including those resulting in litigation, are accounted for under GAAP guidance for uncertain tax positions, as described in Note 20.
+Added: Accounting Policy.
+Added: The Company accrues for legal and regulatory matters when a loss contingency is both probable and estimable.
+Added: The estimated loss is generally recorded in Selling, general and administrative expenses and represents the Company's best estimate of the loss contingency.
+Added: If the loss estimate is a range, the Company accrues the minimum amount in the range if no amount is better than any other estimated amount in the range.
+Added: Legal costs to defend the Company's litigation and arbitration matters are expensed as incurred in cases that the Company cannot reasonably estimate the ultimate cost to defend.
+Added: If the Company can reasonably estimate the cost to defend, a liability for these costs is accrued when the claim is reported.
Pending litigation and legal or regulatory matters that the Company has identified with a reasonably possible material loss and certain other material litigation matters are described below.
7 unchanged sentences
Express Scripts Litigation with Elevance .
−Removed: 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.
+Added: In March 2016, Elevance Health, Inc.
+Added: ("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.
2 unchanged sentences
The court subsequently granted Elevance's motion to dismiss two of six counts of Express Scripts' amended counterclaims.
−Removed: Express Scripts filed its Motion for Summary Judgment on August 27, 2021.
+Added: Express Scripts filed its Motion for Summary Judgment on
+Added: August 27, 2021.
Elevance completed filing of its Response to Express Scripts' Motion for Summary Judgment on October 16, 2021.
4 unchanged sentences
The settlement agreement is not an admission of liability or fault by Express Scripts, the Company or its subsidiaries.
−Removed: Following the settlement, Elevance retains the right to appeal the pricing-related claims that were previously dismissed by the court and Express Scripts retains the ability to reassert its own pricing-related claims in the event any appeal by Elevance is successful.
+Added: Following the settlement, Elevance retained the right to appeal the pricing-related claims that were previously dismissed by the court, and Express Scripts retained the ability to reassert its own pricing-related claims in the event any appeal by Elevance is successful.
Elevance filed its Notice of Appeal of its pricing-related claims on December 12, 2023.
−Removed: Elevance’s opening appellate brief is due March 25, 2024.
+Added: Elevance filed its opening appellate brief on April 24, 2024.
+Added: Express Scripts filed its answering appellate brief on July 24, 2024.
+Added: The Second Circuit held oral arguments on Elevance's appeal on October 22, 2024.
+Added: On October 31, 2024, the Second Circuit released a unanimous opinion summarily affirming the district court's entry of summary judgment in favor of Express Scripts.
+Added: Elevance filed a petition for rehearing en banc on November 14, 2024;
+Added: the petition was denied on December 19, 2024.
Note 22 – Segment Information
2 unchanged sentences
Intersegment revenues primarily reflect pharmacy and care services transactions between the Evernorth Health Services and Cigna Healthcare segments.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: Special items are matters
−Removed: that management believes are not representative of the underlying results of operations due to their nature or size.
+Added: The Chairman and Chief Executive Officer is the chief operating decision maker ("CODM") responsible for making decisions about resources to be allocated to the segment and assessing its performance.
+Added: The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management, including the CODM, believes these metrics reflect the underlying results of business operations and facilitate analysis of trends in underlying revenue, expenses and profitability to enable resource allocation decisions.
+Added: We define pre-tax adjusted income (loss) from operations as income (loss) before income taxes excluding pre-tax income (loss) attributable to noncontrolling interests, net investment gains/losses, amortization of acquired intangible assets and special items.
+Added: The Cigna Group's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are also excluded.
+Added: Special items are matters that management, including the CODM, 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:
−Removed: 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.
−Removed: Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size.
−Removed: We exclude these items from this measure because management believes they are not indicative of past or future underlying performance of the business.
−Removed: The Company does not report total assets by segment because this is not a metric used to allocate resources or evaluate segment performance.
+Added: special items and The Cigna Group's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting.
+Added: Special items are matters that management, including the CODM, believes are not representative of the underlying results of operations due to their nature or size.
+Added: We exclude these items from this measure because management, including the CODM, believes they are not indicative of past or future underlying performance of the business.
+Added: The Company does not report total assets by segment because this is not a metric used by the CODM 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:
2 unchanged sentences
(In millions) Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax
−Removed: Loss (gain) on sale of businesses $ 1,499 $ 1,429 $ ( 1,662 ) $ ( 1,332 ) $ — $ —
+Added: Integration and transaction-related costs
+Added: (Selling, general and administrative expenses) $ 275 $ 211 $ 45 $ 35 $ 135 $ 103
+Added: Impairment of dividend receivable
+Added: (Net investment income) 182 138 — — — —
+Added: Deferred tax expenses (benefits), net
+Added: (Income taxes, less amount attributable to noncontrolling interests) — 84 — ( 1,071 ) — —
+Added: Net (gain) loss on sale of businesses ( 24 ) ( 2 ) 1,499 1,429 ( 1,662 ) ( 1,332 )
Charge for organizational efficiency plan
2 unchanged sentences
(Selling, general and administrative expenses) — — 201 171 ( 28 ) ( 20 )
−Removed: Integration and transaction-related costs
−Removed: (Selling, general and administrative expenses) 45 35 135 103 169 71
−Removed: Deferred tax (benefits), net
−Removed: (Income taxes, less amount attributable to noncontrolling interests) — ( 1,071 ) — — — —
−Removed: Debt extinguishment costs — — — — 141 110
Total impact from special items $ 433 $ 431 $ 1,997 $ 757 $ ( 1,533 ) $ ( 1,232 )
−Removed: Effective January 1, 2023, we adopted amended accounting guidance for long-duration insurance contracts.
−Removed: See Note 2 to the Consolidated Financial Statements for further information.
−Removed: Prior period summarized segment information has been retrospectively adjusted to conform to this new basis of accounting.
Summarized segment financial information was as follows:
8 unchanged sentences
Total revenues 201,973 53,118 828 ( 8,798 ) 247,121
−Removed: Net realized investment results from certain equity method investments
+Added: Net investment results from certain equity method investments
+Added: — ( 204 ) — — ( 204 )
+Added: Special item related to impairment of dividend receivable 182 — — — 182
Adjusted revenues $ 202,155 $ 52,914 $ 828 $ ( 8,798 ) $ 247,099
−Removed: Depreciation and amortization $ 2,438 $ 569 $ 3 $ 25 $ 3,035
+Added: Pharmacy and other service costs 190,968 —
+Added: Medical costs — 37,887
+Added: Selling, general and administrative expenses 3,779 10,805
+Added: Other segment items (1)
+Added: Interest (expense) and other ( 2 ) 7
+Added: Less income attributable to noncontrolling interests 405 —
+Added: Pre-tax adjusted income (loss) from operations 7,001 4,229 ( 9 ) ( 1,688 ) 9,533
Income (loss) before income taxes
3 unchanged sentences
( 405 ) — — — ( 405 )
−Removed: Net realized investment losses (1)
+Added: Net investment losses (2)
2,129 401 3 — 2,533
1 unchanged sentence
Special items
−Removed: Loss on sale of businesses — 1,481 18 — 1,499
−Removed: Charge for organizational efficiency plan — — — 252 252
−Removed: Charges associated with litigation matters 44 157 — — 201
Integration and transaction-related costs — — — 275 275
+Added: Impairment of dividend receivable 182 — — — 182
+Added: (Gain) loss on sale of businesses ( 496 ) 472 — — ( 24 )
Pre-tax adjusted income (loss) from operations $ 7,001 $ 4,229 $ ( 9 ) $ ( 1,688 ) $ 9,533
+Added: Other Segment Information
+Added: Depreciation and amortization $ 2,319 $ 417 $ 9 $ 30 $ 2,775
+Added: (1) Other segment items represent the difference between segment adjusted revenues less significant segment expenses and pre-tax adjusted income (loss) from operations, and they do not represent significant segment items relative to the CODM's review and oversight.
+Added: (2) Includes Net investment gains/losses as presented in our Consolidated Statements of Income, as well as the Company's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting, which are presented within Fees and other revenues in our Consolidated Statements of Income.
(In millions) Evernorth Health Services
3 unchanged sentences
Revenues from external customers $ 147,588 $ 46,219 $ 291 $ 1 $ 194,099
−Removed: $ 135,786 $ 41,738 $ 1,839 $ — $ 179,363
Intersegment revenues 5,670 4,332 — ( 10,002 )
2 unchanged sentences
Total revenues 153,499 51,148 596 ( 9,978 ) 195,265
−Removed: Net realized investment results from certain equity method investments — 126 — — 126
+Added: Net investment results from certain equity method investments — 57 — — 57
Adjusted revenues $ 153,499 $ 51,205 $ 596 $ ( 9,978 ) $ 195,322
−Removed: Depreciation and amortization $ 2,283 $ 638 $ 6 $ 10 $ 2,937
+Added: Pharmacy and other service costs 143,571 —
+Added: Medical costs — 35,678
+Added: Selling, general and administrative expenses 3,340 11,055
+Added: Other segment items (1)
+Added: Interest (expense) and other ( 2 ) 8
+Added: Less income attributable to noncontrolling interests 144 2
+Added: Pre-tax adjusted income (loss) from operations 6,442 4,478 96 ( 1,698 ) 9,318
Income (loss) before income taxes
3 unchanged sentences
( 144 ) ( 2 ) — — ( 146 )
−Removed: Net realized investment losses (1)
+Added: Net investment losses (2)
— 133 2 — 135
1 unchanged sentence
Special items
−Removed: (Gain) on sale of businesses — — ( 1,662 ) — ( 1,662 )
−Removed: Charge for organizational efficiency plan — — — 22 22
−Removed: (Benefits) associated with litigation matters — — — ( 28 ) ( 28 )
Integration and transaction-related costs
+Added: Loss on sale of businesses
+Added: — 1,481 18 — 1,499
+Added: Charge for organizational efficiency plan
+Added: — — — 252 252
+Added: Charges associated with litigation matters
+Added: 44 157 — — 201
Pre-tax adjusted income (loss) from operations $ 6,442 $ 4,478 $ 96 $ ( 1,698 ) $ 9,318
−Removed: (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.
+Added: Other Segment Information
+Added: Depreciation and amortization $ 2,438 $ 569 $ 3 $ 25 $ 3,035
+Added: (1) Other segment items represent the difference between segment adjusted revenues less significant segment expenses and pre-tax adjusted income (loss) from operations, and they do not represent significant segment items relative to the CODM's review and oversight.
+Added: (2) Includes Net investment gains/losses as presented in our Consolidated Statements of Income, as well as the Company's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting, which are presented within Fees and other revenues in our Consolidated Statements of Income.
(In millions) Evernorth Health Services
4 unchanged sentences
Intersegment revenues 4,463 2,535 — ( 6,998 )
−Removed: Net investment income (loss)
+Added: Net investment income
86 638 424 7 1,155
Total revenues 140,335 44,911 2,263 ( 6,991 ) 180,518
−Removed: Net realized investment results from certain equity method investments — — — — —
+Added: Net investment results from certain equity method investments — 126 — — 126
Adjusted revenues $ 140,335 $ 45,037 $ 2,263 $ ( 6,991 ) $ 180,644
−Removed: Depreciation and amortization $ 2,316 $ 551 $ 52 $ 4 $ 2,923
+Added: Pharmacy and other service costs 131,284 —
+Added: Medical costs — 31,119
+Added: Selling, general and administrative expenses 2,856 9,827
+Added: Other segment items (1)
+Added: Interest (expense) and other ( 2 ) 12
+Added: Less income attributable to noncontrolling interests 66 4
+Added: Pre-tax adjusted income (loss) from operations 6,127 4,099 509 ( 1,466 ) 9,269
Income (loss) before income taxes
3 unchanged sentences
( 66 ) ( 4 ) ( 14 ) — ( 84 )
−Removed: Net realized investment losses (gains) (1)
+Added: Net investment losses (2)
— 530 83 — 613
1 unchanged sentence
Special items
+Added: Integration and transaction-related costs — — — 135 135
+Added: (Gain) on sale of businesses — — ( 1,662 ) — ( 1,662 )
Charge for organizational efficiency plan — — — 22 22
(Benefits) associated with litigation matters — — — ( 28 ) ( 28 )
−Removed: Integration and transaction-related costs — — — 169 169
−Removed: Debt extinguishment costs — — — 141 141
Pre-tax adjusted income (loss) from operations $ 6,127 $ 4,099 $ 509 $ ( 1,466 ) $ 9,269
−Removed: (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.
+Added: Other Financial Information
+Added: Depreciation and amortization $ 2,283 $ 638 $ 6 $ 10 $ 2,937
+Added: (1) Other segment items represent the difference between segment adjusted revenues less significant segment expenses and pre-tax adjusted income (loss) from operations, and they do not represent significant segment items relative to the CODM's review and oversight.
+Added: (2) Includes Net investment gains/losses as presented in our Consolidated Statements of Income, as well as the Company's share of certain investment results of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting, which are presented within Fees and other revenues in our Consolidated Statements of Income.
Revenue from external customers includes Pharmacy revenues, Premiums and Fees and other revenues.
−Removed: 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) and to reflect the merger of the U.S.
−Removed: Commercial and U.S.
−Removed: Government operating segments into the U.S.
−Removed: Healthcare operating segment (as discussed in Note 1 to the Consolidated Financial Statements).
The following table presents these revenues by product, premium and service type:
5 unchanged sentences
Other revenues 11,545 9,047 6,753
−Removed: Intercompany eliminations ( 5,050 ) ( 4,416 ) ( 4,398 )
+Added: Total Evernorth Health Services
+Added: 189,361 142,293 132,982
+Added: Other Operations
+Added: Corporate and eliminations ( 4,059 ) ( 5,050 ) ( 4,416 )
Total Pharmacy revenues
+Added: 185,362 137,243 128,566
Insurance premiums (ASC 944)
9 unchanged sentences
Divested International businesses — — 1,596
−Removed: Other 281 225 221
−Removed: Intercompany eliminations 74 1 ( 9 )
+Added: Other Operations excluding Divested International businesses 380 281 225
+Added: Corporate and eliminations 104 74 1
Total Premiums
−Removed: Services (Fees) (ASC 606)
+Added: 45,996 44,237 39,916
+Added: Services (Fees) (ASC 606) and Other revenues (1)
Evernorth Health Services
3 unchanged sentences
Other Operations
−Removed: Other revenues 210 168 188
−Removed: Intercompany eliminations ( 5,026 ) ( 2,583 ) ( 2,067 )
+Added: Corporate and eliminations ( 4,868 ) ( 5,025 ) ( 2,583 )
Total Fees and other revenues (1)
+Added: 14,790 12,619 10,881
Total revenues from external customers $ 246,148 $ 194,099 $ 179,363
+Added: (1) Other revenues for the years ended December 31, 2024, 2023 and 2022 were $ 584 million, $ 210 million and $ 168 million, respectively.
+Added: Major Customers.
+Added: Revenues from a single pharmacy benefit client were approximately 16 % of consolidated revenues for the year ended December 31, 2024.
+Added: These amounts were reported in the Evernorth Health Services segment.
+Added: Additionally, revenues from U.S.
+Added: Federal Government agencies, under a number of contracts, were approximately 11 %, 15 % and 14 % of consolidated revenues for the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: These amounts were reported in the Evernorth Health Services and Cigna Healthcare segments.
+Added: and Foreign Revenues.
and foreign revenues from external customers are shown below.
7 unchanged sentences
Total revenues from external customers $ 246,148 $ 194,099 $ 179,363
−Removed: (1) The divested International businesses as described in Note 5 comprised of $ 1.6 billion and $ 3.2 billion in 2022 and 2021, respectively.
−Removed: Revenues from U.S.
−Removed: Federal Government agencies, under a number of contracts, were 15 % of consolidated revenues in 2023 and 14 % in both 2022 and 2021.
−Removed: These amounts were reported in the Evernorth Health Services and Cigna Healthcare segments.
+Added: (1) In 2022, included revenues from the divested International businesses of $ 1.6 billion.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.