What changed in this filing

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Item 1. Financial Statements

2025-07-31 compared with 2025-05-02 · 286 added, 147 removed, 821 unchanged (35% of the section changed)

2 unchanged sentences

Consolidated Statements of Income

Three Months Ended March 31,

Unaudited Unaudited

Three Months Ended June 30, Six Months Ended June 30,

(In millions, except per share amounts) 2025 2024

11 unchanged sentences

Income from operations

2,306 2,412 4,277 4,668

Interest expense and other ( 337 ) ( 375 ) ( 699 ) ( 697 )

Gain (loss) on sale of businesses

Net investment losses

— — 41 ( 19 )

Net investment gains (losses)

52 ( 48 ) 50 ( 1,884 )

Income before income taxes

2,021 1,989 3,669 2,068

TOTAL INCOME TAXES 389 360 628 651

Net income (loss)

1,632 1,629 3,041 1,417

Net income attributable to noncontrolling interests

SHAREHOLDERS' NET INCOME (LOSS) $ 1,323 $ ( 277 )

Shareholders' net income (loss) per share

100 81 186 146

SHAREHOLDERS' NET INCOME $ 1,532 $ 1,548 $ 2,855 $ 1,271

Shareholders' net income per share

Basic $ 5.76 $ 5.51 $ 10.63 $ 4.48

3 unchanged sentences

Consolidated Statements of Comprehensive Income

Three Months Ended March 31,

Unaudited Unaudited

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2025

Net income (loss) $ 1,409 $ ( 212 )

Net income $ 1,632 $ 1,629 $ 3,041 $ 1,417

Other comprehensive income (loss), net of tax

Net unrealized (depreciation) appreciation on securities and derivatives

Net unrealized appreciation on securities and derivatives

321 108 221 229

Net long-duration insurance and contractholder liabilities measurement adjustments ( 609 ) ( 212 ) ( 777 ) ( 772 )

Net translation gains (losses) on foreign currencies

65 ( 5 ) 78 ( 31 )

Postretirement benefits liability adjustment ( 3 ) ( 9 ) 3 ( 4 )

1 unchanged sentence

( 226 ) ( 118 ) ( 475 ) ( 578 )

Total comprehensive income (loss)

Total comprehensive income

1,406 1,511 2,566 839

Net income attributable to noncontrolling interests 100 81 186 146

SHAREHOLDERS' COMPREHENSIVE INCOME (LOSS)

SHAREHOLDERS' COMPREHENSIVE INCOME

$ 1,306 $ 1,430 $ 2,380 $ 693

2 unchanged sentences

Consolidated Balance Sheets

March 31, As of

June 30, As of

(In millions) 2025 2024

39 unchanged sentences

(1) Par value per share, $ 0.01 ;

shares issued, 404 million as of March 31, 2025 and 403 million as of December 31, 2024;

shares issued, 404 million as of June 30, 2025 and 403 million as of December 31, 2024;

authorized shares, 600 million.

2 unchanged sentences

Consolidated Statements of Changes in Total Equity

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

(In millions) Common

9 unchanged sentences

Noncontrolling

Balance at December 31, 2024 $ 4 $ 31,288 $ ( 2,341 ) $ 43,519 $ ( 31,437 ) $ 41,033 $ 210 $ 41,243 $ —

Balance at March 31, 2025 $ 4 $ 31,443 $ ( 2,590 ) $ 44,434 $ ( 33,065 ) $ 40,226 $ 188 $ 40,414 $ —

Effects of issuing stock for employee benefit plans 145 ( 1 ) 144 144

5 unchanged sentences

Other transactions impacting noncontrolling interests — — ( 72 ) ( 72 ) —

Balance at March 31, 2025 $ 4 $ 31,443 $ ( 2,590 ) $ 44,434 $ ( 33,065 ) $ 40,226 $ 188 $ 40,414 $ —

Three Months Ended March 31, 2024

Balance at June 30, 2025 $ 4 $ 31,588 $ ( 2,816 ) $ 45,564 $ ( 34,126 ) $ 40,214 $ 216 $ 40,430 $ —

Three Months Ended June 30, 2024

(In millions) Common

9 unchanged sentences

Noncontrolling

Balance at March 31, 2024

$ 4 $ 30,292 $ ( 2,324 ) $ 40,978 $ ( 27,769 ) $ 41,181 $ 169 $ 41,350 $ —

Effect of issuing stock for employee benefit plans 116 ( 1 ) 115 115

Other comprehensive loss ( 118 ) ( 118 ) ( 118 ) —

Net income 1,548 1,548 81 1,629 —

Common dividends declared (per share:

( 394 ) ( 394 ) ( 394 )

Repurchase of common stock 640 ( 1,640 ) ( 1,000 ) ( 1,000 )

Other transactions impacting noncontrolling interests — — ( 55 ) ( 55 ) —

Balance at June 30, 2024 $ 4 $ 31,048 $ ( 2,442 ) $ 42,132 $ ( 29,410 ) $ 41,332 $ 195 $ 41,527 $ —

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

The Cigna Group

Consolidated Statements of Changes in Total Equity

Six Months Ended June 30, 2025

(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

Balance at December 31, 2024

2 unchanged sentences

Other comprehensive loss ( 475 ) ( 475 ) ( 475 ) —

Net (loss) income ( 277 ) ( 277 ) 65 ( 212 ) —

Net income 2,855 2,855 186 3,041 —

Common dividends declared (per share:

2 unchanged sentences

Other transactions impacting noncontrolling interests — — ( 180 ) ( 180 ) —

Balance at March 31, 2024 $ 4 $ 30,292 $ ( 2,324 ) $ 40,978 $ ( 27,769 ) $ 41,181 $ 169 $ 41,350 $ —

Balance at June 30, 2025 $ 4 $ 31,588 $ ( 2,816 ) $ 45,564 $ ( 34,126 ) $ 40,214 $ 216 $ 40,430 $ —

Six Months Ended June 30, 2024

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 379 ( 115 ) 264 264

Other comprehensive loss ( 578 ) ( 578 ) ( 578 ) —

Net income 1,271 1,271 146 1,417 —

Common dividends declared (per share:

( 791 ) ( 791 ) ( 791 )

Repurchase of common stock — ( 5,057 ) ( 5,057 ) ( 5,057 )

Other transactions impacting noncontrolling interests — — 28 28 ( 107 )

Balance at June 30, 2024 $ 4 $ 31,048 $ ( 2,442 ) $ 42,132 $ ( 29,410 ) $ 41,332 $ 195 $ 41,527 $ —

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

1 unchanged sentence

Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

(In millions) 2025

Cash Flows from Operating Activities

Net income (loss) $ 1,409 $ ( 212 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Net income $ 3,041 $ 1,417

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 1,356 1,479

Investment losses, net

Investment (gains) losses, net

Deferred income tax benefit

39 unchanged sentences

Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 35 ( 12 )

Net (decrease) increase in cash, cash equivalents and restricted cash ( 555 ) 1,807

Net decrease in cash, cash equivalents and restricted cash ( 4,545 ) ( 880 )

Cash, cash equivalents and restricted cash January 1, (1)

Cash, cash equivalents and restricted cash, March 31, (1)

Cash, cash equivalents and restricted cash June 30, (1)

Cash and cash equivalents reclassified to assets of businesses held for sale

Cash, cash equivalents and restricted cash March 31, per Consolidated Balance Sheets (1)

Cash, cash equivalents and restricted cash June 30, per Consolidated Balance Sheets (1)

$ 4,386 $ 6,832

37 unchanged sentences

A full description of our segments follows:

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.

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 healthier lives.

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.

2 unchanged sentences

Healthcare and International Health operating segments, which provide comprehensive medical and coordinated solutions to clients and customers.

Healthcare provides medical plans and other benefits and solutions for insured clients, self-insured clients and individual health insurance plans.

Healthcare provides medical plans and other benefits and solutions for insured and self-insured clients as well as individual health plans.

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.

23 unchanged sentences

The following amounts were included within Accounts receivable, net:

(In millions) March 31, 2025 December 31, 2024

(In millions) June 30, 2025 December 31, 2024

Noninsurance customer receivables $ 14,690 $ 11,879

5 unchanged sentences

Total $ 31,148 $ 24,227

These accounts receivable are reported net of our allowances of $ 5.7 billion and $ 5.0 billion as of March 31, 2025 and December 31, 2024, respectively.

These accounts receivable are reported net of our allowances of $ 6.9 billion and $ 5.0 billion as of June 30, 2025 and December 31, 2024, respectively.

These allowances include contractual allowances for certain rebates receivable with pharmaceutical manufacturers and certain accounts receivable from third-party payors, 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.

The Company's allowance for current expected credit losses was $ 296 million as of March 31, 2025 and $ 84 million as of December 31, 2024.

The Company's allowance for current expected credit losses was $ 388 million as of June 30, 2025 and $ 84 million as of December 31, 2024.

Accounts Receivable Factoring Facility

The Company maintains an uncommitted factoring facility (the "Facility") under which certain accounts receivable may be sold on a non-recourse basis to a financial institution.

The Company maintains an uncommitted factoring facility (the "Facility") with a total capacity of $ 1.5 billion under which certain accounts receivable may be sold on a non-recourse basis to a financial institution.

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.

The Facility's total capacity is $ 1.5 billion.

We sold manufacturer accounts receivable under the Facility of $ 1.4 billion and $ 1.9 billion for the three months ended March 31, 2025 and 2024, respectively.

For the three months ended March 31, 2025 and 2024, factoring fees paid were not material.

As of March 31, 2025 and December 31, 2024, all sold accounts receivable had been collected from pharmaceutical manufacturers.

As of March 31, 2025, all collections had been remitted to the financial institution.

As of December 31, 2024, there was $ 1.0 billion of collections from pharmaceutical manufacturers that have not been remitted to the financial institution.

We sold manufacturer accounts receivable under the Facility of $ 1.3 billion for both the three months ended June 30, 2025 and 2024 and $ 2.7 billion and $ 3.2 billion for the six months ended June 30, 2025 and 2024, respectively.

For the three and six months ended June 30, 2025 and 2024, factoring fees paid were not material.

As of June 30, 2025, there were $ 1.0 billion of sold accounts receivable that have not been collected from manufacturers and have been removed from the Company's Consolidated Balance Sheets.

As of December 31, 2024, all sold accounts receivable had been collected from manufacturers.

As of June 30, 2025 and December 31, 2024, there were $ 297 million and $ 1.0 billion, respectively, of collections from manufacturers that have not been remitted to the financial institution.

Such amounts are recorded within Accrued expenses and other liabilities in the Consolidated Balance Sheets.

1 unchanged sentence

The Company facilitates a voluntary supplier finance program (the "Program") that provides suppliers the opportunity to sell their accounts receivable due from us (i.e., our payment obligations to the suppliers) to a financial institution, on a non-recourse basis, in order to be paid earlier than our payment terms require.

As of each of March 31, 2025 and December 31, 2024, $ 1.6 billion 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.

As of June 30, 2025 and December 31, 2024, $ 1.7 billion and $ 1.6 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.

The amounts confirmed as valid for both periods are predominately associated with one supplier.

As of March 31, 2025, we have been informed by the financial institution that $ 563 million of the Company's outstanding payment obligations were voluntarily elected by suppliers to be sold to the financial institution under the Program.

As of June 30, 2025, we have been informed by the financial institution that $ 763 million of the Company's outstanding payment obligations were voluntarily elected by suppliers to be sold to the financial institution under the Program.

Note 5 – Divestiture

1 unchanged sentence

The purchase price increased from $ 3.3 billion to $ 4.8 billion, subject to post-closing contractual adjustments, reflecting higher statutory surplus for the legal entities when conveyed to HCSC.

For the three months ended March 31, 2025, the Company recognized a gain of $ 37 million pre-tax ($ 112 million after-tax) within Gain (loss) on sale of businesses in the Consolidated Statements of Income.

The Company recognized a gain of $ 37 million pre-tax ($ 112 million after-tax) during the three months ended March 31, 2025 within Gain (loss) on sale of businesses in the Consolidated Statements of Income.

The Company received $ 4.2 billion cash proceeds at closing.

We expect receipt of the remaining $ 0.6 billion in the fourth quarter of 2025 upon HCSC's collection of amounts due from the Centers for Medicare and Medicaid Services.

We expect receipt of the remaining $ 0.6 billion in the fourth quarter of 2025 upon HCSC's collection of amounts due from the Centers for Medicare and Medicaid Services ("CMS").

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.

9 unchanged sentences

Total liabilities of businesses held for sale $ 2,410

(1) Includes Goodwill of $ 94 million as of December 31, 2024.

(1) Includes Goodwill of $ 94 million.

Integration and Transaction-Related Costs

3 unchanged sentences

and certain employment-related costs.

These costs were $ 216 million pre-tax ($ 164 million after-tax) for the three months ended March 31, 2025, compared with $ 37 million pre-tax ($ 29 million after-tax) for the three months ended March 31, 2024.

These costs were $ 74 million pre-tax ($ 56 million after-tax) for the three months ended and $ 290 million pre-tax ($ 220 million after-tax) for the six months ended June 30, 2025, compared with $ 63 million pre-tax ($ 47 million after-tax) for the three months ended and $ 100 million pre-tax ($ 76 million after-tax) for the six months ended June 30, 2024.

Note 6 – Earnings Per Share

1 unchanged sentence

Three Months Ended

March 31, 2025 March 31, 2024

June 30, 2025 June 30, 2024

(Shares in thousands, dollars in millions, except per share amounts) Basic Effect of

1 unchanged sentence

Dilution Diluted

Shareholders' net income (loss)

Shareholders' net income $ 1,532 $ 1,532 $ 1,548 $ 1,548

Weighted average 266,181 266,181 281,133 281,133

Common stock equivalents 1,973 1,973 2,919 2,919

Total shares 266,181 1,973 268,154 281,133 2,919 284,052

Earnings per share $ 5.76 $ ( 0.05 ) $ 5.71 $ 5.51 $ ( 0.06 ) $ 5.45

Six Months Ended

June 30, 2025 June 30, 2024

(Shares in thousands, dollars in millions, except per share amounts) Basic Effect of

Dilution Diluted Basic Effect of

Dilution Diluted

Shareholders' net income

$ 2,855 $ 2,855 $ 1,271 $ 1,271

3 unchanged sentences

Earnings per share $ 10.63 $ ( 0.08 ) $ 10.55 $ 4.48 $ ( 0.05 ) $ 4.43

For the three months ended March 31, 2025, 2.3 million outstanding employee stock options were excluded in the computation of diluted earnings per share because their effect was anti-dilutive.

For the three months ended March 31, 2024, due to the Shareholders' net loss, 8.2 million outstanding employee stock options, unvested restricted stock grants and units, and strategic performance shares were excluded in the computation of diluted earnings per share because their effect was anti-dilutive.

The Company held approximately 134.1 million shares of common stock in treasury as of March 31, 2025, 128.7 million shares as of December 31, 2024 and 117.8 million shares as of March 31, 2024.

The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive:

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2025 2024 2025 2024

Anti-dilutive options 1.5 0.8 1.9 1.2

The Company held approximately 137.4 million shares of common stock in treasury as of June 30, 2025, 128.7 million shares as of December 31, 2024 and 122.5 million shares as of June 30, 2024.

Note 7 – Debt

Short-Term and Long-Term Debt.

During the three months ended March 31, 2025, the Company redeemed at par its $ 700 million 5.685 % senior notes that were due March 2026.

During the six months ended June 30, 2025, the Company redeemed at par its $ 700 million 5.685 % senior notes that were due March 2026 and repaid $ 900 million 3.250 % senior notes that matured in April 2025.

For more information regarding our short-term and long-term debt, see Note 7 of the Company's 2024 Form 10-K.

Revolving Credit Agreements.

Our revolving credit agreements provide us with the ability to borrow amounts for general corporate purposes, including providing liquidity support if necessary under our commercial paper program discussed below.

As of March 31, 2025, there were no outstanding balances under these revolving credit agreements.

Revolving Credit Agreement.

Our revolving credit agreement provides us with the ability to borrow amounts for general corporate purposes, including providing liquidity support if necessary under our commercial paper program discussed below.

As of June 30, 2025, there was no outstanding balance under this revolving credit agreement.

In April 2025, the Company replaced its previous revolving credit agreements and entered into a $ 6.5 billion, five-year revolving credit and letter of credit agreement that will mature in April 2030, with an option to extend the maturity date for additional one-year periods, subject to consent of the banks (the "Credit Agreement").

7 unchanged sentences

The net proceeds of issuances have been and are expected to be used for general corporate purposes.

There was no commercial paper outstanding balance as of March 31, 2025.

The commercial paper program had approximately $ 1.2 billion outstanding as of June 30, 2025 and an average interest rate of 4.51 %.

Debt Covenants.

The Company was in compliance with its debt covenants as of March 31, 2025.

The Company was in compliance with its debt covenants as of June 30, 2025.

Interest Expense

Interest expense on long-term and short-term debt was $ 362 million for the three months ended March 31, 2025 and $ 369 million for the three months ended March 31, 2024.

Interest expense on long-term and short-term debt was $ 338 million for the three months ended and $ 700 million for the six months ended June 30, 2025, compared with $ 378 million for the three months ended and $ 747 million for the six months ended June 30, 2024.

Note 8 – Common and Preferred Stock

2 unchanged sentences

March 5, 2025 March 20, 2025 $ 1.51 $ 412

June 3, 2025 June 18, 2025 $ 1.51 $ 401

March 6, 2024 March 21, 2024 $ 1.40 $ 401

On April 23, 2025, the Board of Directors declared the second quarter cash dividend of $ 1.51 per share of The Cigna Group common stock to be paid on June 18, 2025 to shareholders of record on June 3, 2025.

June 4, 2024 June 20, 2024 $ 1.40 $ 392

On July 22, 2025, the Board of Directors declared the third quarter cash dividend of $ 1.51 per share of The Cigna Group common stock to be paid on September 18, 2025 to shareholders of record on September 4, 2025.

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.

3 unchanged sentences

The Company's insurance and contractholder liabilities were comprised of the following:

March 31, 2025 December 31, 2024 March 31, 2024

June 30, 2025 December 31, 2024 June 30, 2024

(In millions) Current Non-current Total Current Non-current Total Total

17 unchanged sentences

Total insurance and contractholder liabilities $ 6,015 $ 10,157 $ 16,172 $ 5,388 $ 10,254 $ 15,642 $ 16,065

(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 $ 1,378 million of Unpaid claims, $ 427 million of Future policy benefits, $ 161 million of Unearned premiums and $ 115 million of Contractholder deposit funds as of March 31, 2024.

(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 $ 900 million of Unpaid claims, $ 417 million of Future policy benefits, $ 129 million of Unearned premiums and $ 111 million of Contractholder deposit funds as of June 30, 2024.

Insurance and contractholder liabilities expected to be paid within one year are classified as current.

1 unchanged sentence

This liability reflects estimates of the ultimate cost of claims that have been incurred but not reported, expected development on reported claims, claims that have been reported but not yet paid (reported claims in process), and other medical care expenses and services payable that are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities.

The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $ 4.4 billion at March 31, 2025 and $ 5.4 billion at March 31, 2024.

The decrease was driven by the HCSC transaction.

The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $ 4.5 billion as of June 30, 2025 and $ 4.8 billion as of June 30, 2024.

The decrease was driven by the HCSC transaction, partially offset by the change in stop loss reserves.

Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment was as follows:

Three Months Ended March 31,

Six Months Ended June 30,

(In millions) 2025 (1)

15 unchanged sentences

(1) Includes unpaid claims amounts classified as liabilities of businesses held for sale prior to the completion of the HCSC transaction.

As of December 31, 2024, March 31, 2024 and December 31, 2023, includes $ 983 million and $ 1,378 million, $ 823 million classified as liabilities of businesses held for sale, respectively.

As of December 31, 2024, June 30, 2024 and December 31, 2023, includes $ 983 million, $ 900 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.

1 unchanged sentence

Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions were as follows:

Three Months Ended March 31,

Six Months Ended June 30,

(Dollars in millions) $ % (1)

9 unchanged sentences

Future policy benefits for the Cigna Healthcare segment were primarily related to the businesses divested to HCSC on March 19, 2025.

Excluding the divestiture, changes in the future policy benefits for the three months ended March 31, 2025 and March 31, 2024 were not material.

Excluding the divestiture, changes in the future policy benefits for the six months ended June 30, 2025 and June 30, 2024 were not material.

Other Operations

The weighted average interest rates applied and duration for future policy benefits in Other Operations, consisting of annuity and life insurance products, were as follows:

March 31, 2025 March 31, 2024

June 30, 2025 June 30, 2024

Interest accretion rate 5.64 % 5.64 %

4 unchanged sentences

therefore, future policy benefit reserves represent the present value of expected future policy benefits, discounted using the current discount rate, and the remaining amortizable deferred profit liability.

Future policy benefits for Other Operations includes deferred profit liability of $ 359 million as of March 31, 2025 and $ 379 million as of March 31, 2024.

Future policy benefits excluding deferred profit liability were $ 3.0 billion as of March 31, 2025, $ 3.1 billion as of March 31, 2024, $ 2.9 billion as of December 31, 2024, and $ 3.2 billion as of December 31, 2023.

Undiscounted expected future policy benefits were $ 4.3 billion as of March 31, 2025 and $ 4.4 billion as of March 31, 2024.

As of March 31, 2025 and March 31, 2024, $ 0.9 billion and $ 1.0 billion, respectively, of the future policy benefit reserve was recoverable through treaties with external reinsurers.

Future policy benefits for Other Operations include deferred profit liability of $ 353 million as of June 30, 2025 and $ 372 million as of June 30, 2024.

Future policy benefits excluding deferred profit liability were $ 2.9 billion as of both June 30, 2025 and December 31, 2024, $ 3.0 billion as of June 30, 2024, and $ 3.2 billion as of December 31, 2023.

Undiscounted expected future policy benefits were $ 4.2 billion as of June 30, 2025 and $ 4.4 billion as of June 30, 2024.

As of both June 30, 2025 and June 30, 2024, $ 0.9 billion of the future policy benefit reserve was recoverable through treaties with external reinsurers.

Contractholder Deposit Funds

Contractholder deposit fund liabilities within Other Operations were $ 6.3 billion as of both as of March 31, 2025 and December 31, 2024 and $ 6.5 billion as of both March 31, 2024 and December 31, 2023.

Contractholder deposit fund liabilities within Other Operations were $ 6.2 billion as of June 30, 2025, $ 6.3 billion as of December 31, 2024, $ 6.4 billion as of June 30, 2024 and $ 6.5 billion as of December 31, 2023.

Approximately 38 % of the balance is reinsured externally.

1 unchanged sentence

Changes in contractholder deposit fund liabilities generally relates to withdrawals and benefit payments, partially offset by deposits and interest credited.

As of March 31, 2025, the weighted average crediting rate, net amount at risk and cash surrender value for contractholder deposit fund liabilities not effectively exited through reinsurance were 3.20 %, $ 2.8 billion and $ 2.8 billion, respectively.

The comparative amounts as of March 31, 2024 were 3.33 %, $ 3.0 billion and $ 2.8 billion, respectively.

More than 99 % of the $ 4.0 billion liability as of both March 31, 2025 and March 31, 2024 not reinsured externally is for contracts with guaranteed interest rates of 3 % - 4 %, and approximately $ 1.2 billion as of both March 31, 2025 and March 31, 2024 represented contracts with policies at the guarantee.

As of both March 31, 2025 and March 31, 2024, $ 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.

As of both March 31, 2025 and March 31, 2024, more than 90 % of these contracts have actual cash values of at least 110% of the guaranteed cash value.

As of June 30, 2025, the weighted average crediting rate, net amount at risk and cash surrender value for contractholder deposit fund liabilities not effectively exited through reinsurance were 3.22 %, $ 2.7 billion and $ 2.8 billion, respectively.

The comparative amounts as of June 30, 2024 were 3.25 %, $ 2.9 billion and $ 2.8 billion, respectively.

More than 99 % of the $ 3.9 billion liability as of June 30, 2025 and the $ 4.0 billion liability as of June 30, 2024 not reinsured externally is for contracts with guaranteed interest rates of 3 % - 4 %, and approximately $ 1.2 billion and $ 1.1 billion, respectively, represented contracts with policies at the guarantee.

At these same period ends, $ 1.1 billion and $ 1.2 billion was 50 - 150 basis points ("bps") above the guarantee, and the remaining $ 1.6 billion as of June 30, 2025 and $ 1.7 billion as of June 30, 2024 represented contracts above the guarantee that pay the policyholder based on the greater of a guaranteed minimum cash value or the actual cash value.

As of both June 30, 2025 and June 30, 2024, more than 90 % of these contracts have actual cash values of at least 110% of the guaranteed cash value.

Market Risk Benefits

4 unchanged sentences

Market risk benefits activity was as follows:

Three Months Ended March 31,

Six Months Ended June 30,

(In millions) 2025 2024

11 unchanged sentences

The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded, as discussed further in Note 10 to the Consolidated Financial Statements.

(Dollars in millions, excludes impact of reinsurance ceded) March 31, 2025 March 31, 2024

(Dollars in millions, excludes impact of reinsurance ceded) June 30, 2025 June 30, 2024

Net amount at risk $ 1,236 $ 1,391

9 unchanged sentences

The Company reviews its reinsurance arrangements and establishes reserves against the recoverables primarily for expected credit losses.

The Company's reinsurance recoverables as of March 31, 2025 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:

The Company's reinsurance recoverables as of June 30, 2025 are presented at amount due by range of external credit rating and collateral level in the following table, with reinsurance recoverables that are market risk benefits separately presented at fair value:

(In millions) Fair Value of Collateral Contractually Required to Meet or Exceed Carrying Value of Recoverable

21 unchanged sentences

Berkshire reinsured 100 % of the Company's future cash flows in this business, net of other reinsurance arrangements existing at that time.

The reinsurance agreement is subject to an overall limit, with approximately $ 3.0 billion remaining at March 31, 2025.

The reinsurance agreement is subject to an overall limit, with approximately $ 3.0 billion remaining as of June 30, 2025.

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.

As of both March 31, 2025 and 2024, market risk benefits (shown in the table net of nonperformance risk as of March 31, 2025) were predominantly reinsured by Berkshire, which is rated AA+ by an NRSRO.

As of March 31, 2025, approximately 90 % of the Berkshire recoverable is secured by assets in a trust.

As of both June 30, 2025 and 2024, market risk benefits (shown in the table net of nonperformance risk as of June 30, 2025) were predominantly reinsured by Berkshire, which is rated AA+ by an NRSRO.

As of June 30, 2025, approximately 100 % of the Berkshire recoverable is secured by assets in a trust.

Note 11 – Investments

The following table summarizes the Company's investments by category and current or long-term classification:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In millions) Current Long-Term Total Current Long-Term Total

13 unchanged sentences

Debt Securities

The amortized cost and fair value by contractual maturity periods for debt securities were as follows as of March 31, 2025:

The amortized cost and fair value by contractual maturity periods for debt securities were as follows as of June 30, 2025:

(In millions) Amortized

11 unchanged sentences

Depreciation Fair

March 31, 2025

June 30, 2025

Federal government and agency $ 212 $ — $ 16 $ ( 4 ) $ 224

17 unchanged sentences

Unrealized depreciation on these debt securities is primarily due to declines in fair value resulting from increasing interest rates since these securities were purchased.

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(Dollars in millions) Fair

15 unchanged sentences

The following table provides the values of the Company's equity security investments:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In millions) Cost Carrying Value Cost Carrying Value

9 unchanged sentences

The following table summarizes the credit risk profile of the Company's commercial mortgage loan portfolio:

(Dollars in millions) March 31, 2025 December 31, 2024

(Dollars in millions) June 30, 2025 December 31, 2024

Loan-to-Value Ratio Carrying Value Average Debt Service Coverage Ratio Average Loan-to-Value Ratio Carrying Value Average Debt Service Coverage Ratio Average Loan-to-Value Ratio

11 unchanged sentences

Carrying Value as of

(In millions) March 31, 2025 December 31, 2024

(In millions) June 30, 2025 December 31, 2024

Real estate investments $ 1,866 $ 1,763

5 unchanged sentences

The Company also uses derivative financial instruments to hedge the risk of changes in the net assets of certain of its foreign subsidiaries due to changes in foreign currency exchange rates and to hedge the interest rate risk of certain long-term debt.

As of March 31, 2025, the notional value of interest rate swap contracts increased to $ 3.0 billion compared to $ 2.7 billion as of December 31, 2024.

There were no other material changes to the Company's derivative financial instruments during the three months ended March 31, 2025.

As of June 30, 2025, the notional value of interest rate swap contracts decreased to $ 2.6 billion compared with $ 2.7 billion as of December 31, 2024.

There were no other material changes to the Company's individual derivative hedging strategies during the three and six months ended June 30, 2025.

Please refer to the Company's 2024 Form 10-K for further discussion of the types of derivative financial instruments and associated accounting policies.

The effects of derivative financial instruments used in our individual hedging strategies were not material to the Consolidated Financial Statements as of March 31, 2025 and December 31, 2024.

The effects of derivative financial instruments used in our individual hedging strategies were not material to the Consolidated Financial Statements as of June 30, 2025 and December 31, 2024.

The gross fair values of our derivative financial instruments are presented in Note 12 to the Consolidated Financial Statements.

Investment Gains and Losses

Net investment losses before income taxes were $ 2 million for the three months ended March 31, 2025 versus $ 1,836 million for the three months ended March 31, 2024.

This decrease was primarily driven by the impairment of equity securities in 2024.

Net investment gains (losses), before income taxes were $ 52 million and $ 50 million, respectively, for the three and six months ended June 30, 2025, versus $( 48 ) million and $( 1,884 ) million, respectively, for the three and six months ended June 30, 2024.

Net investment results for the three and six months ended June 30, 2025 increased, reflecting investment gains related to a change in fair value of certain equity securities in the second quarter of 2025 and the absence of the impairment of equity securities recorded in the first quarter of 2024.

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.

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(Level 3) Total

2025 December 31, 2024 March 31,

2025 December 31, 2024 June 30,

2025 December 31, 2024

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Fair Value as of Unobservable Adjustment Range (Weighted Average by Quantity) as of

(Fair value in millions) March 31,

(Fair value in millions) June 30,

2025 December 31,

2024 Unobservable Input

March 31, 2025

June 30, 2025

2025 December 31,

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Three Months Ended

Six Months Ended

(In millions) 2025 2024 2025 2024

Debt securities

Debt and Equity Securities

Beginning balance $ 373 $ 422 $ 417 $ 447

Losses included in Shareholders' net income (loss)

Losses included in Shareholders' net income

( 4 ) ( 40 ) ( 14 ) ( 61 )

Gains (losses) included in Other comprehensive loss

3 ( 2 ) 10 ( 5 )

Purchases, sales and settlements

Purchases 25 11 27 11

Sales ( 2 ) — ( 2 ) —

Settlements ( 49 ) ( 1 ) ( 80 ) ( 15 )

5 unchanged sentences

Ending balance $ 362 $ 397 $ 362 $ 397

Total losses included in Shareholders' net income (loss) attributable to instruments held at the reporting date

Total losses included in Shareholders' net income attributable to instruments held at the reporting date

$ ( 4 ) $ ( 41 ) $ ( 17 ) $ ( 61 )

Change in unrealized gain or (loss) included in Other comprehensive loss for assets held at the end of the reporting period

Total gains and losses included in Shareholders' net income (loss) 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 (depreciation) appreciation on securities and derivatives in the Consolidated Statements of Comprehensive Income.

$ 4 $ ( 2 ) $ 7 $ ( 6 )

Total gains and losses included in Shareholders' net income in the tables above are reflected in the Consolidated Statements of Income as Net investment gains (losses) and Net investment income.

Gains and losses included in Other comprehensive loss, net of tax, in the

tables above are reflected in Net unrealized appreciation on securities and derivatives in the Consolidated Statements of Comprehensive Income.

Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company's best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement.

5 unchanged sentences

The investment income and fair value gains and losses of Separate account assets generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company's Consolidated Statements of Income and Cash Flows.

The separate account activity for the three months ended March 31, 2025 and 2024 was primarily driven by changes in the market values of the underlying separate account investments.

The separate account activity for the six months ended June 30, 2025 and 2024 was primarily driven by changes in the market values of the underlying separate account investments.

Fair values of Separate account assets were as follows:

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(Level 3) Total

(In millions) March 31,

(In millions) June 30,

2025 December 31,

2024 March 31,

2024 June 30,

2025 December 31,

2024 March 31,

2024 June 30,

2025 December 31,

2024 March 31,

2024 June 30,

2025 December 31,

6 unchanged sentences

Total $ 7,373 $ 7,278

(1) Non-guaranteed separate accounts include $ 3.8 billion as of each of March 31, 2025 and December 31, 2024 in assets supporting the Company's pension plans, including $ 0.2 billion classified in Level 3 as of each of March 31, 2025 and December 31, 2024, respectively.

(1) Non-guaranteed separate accounts include $ 3.8 billion as of both June 30, 2025 and December 31, 2024 in assets supporting the Company's pension plans, including $ 0.2 billion classified in Level 3 as of both June 30, 2025 and December 31, 2024.

Non-guaranteed separate accounts are primarily comprised of securities partnerships, real estate and real estate funds.

Separate account assets classified in Level 3 primarily support the Company's pension plans and include certain newly issued, privately placed, complex or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans.

Activity, including transfers into and out of Level 3, was not material for the three months ended March 31, 2025 or 2024.

Activity, including transfers into and out of Level 3, was not material for the three and six months ended June 30, 2025 or 2024.

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.

For the three months ended March 31, 2025, impairments recognized requiring the assets and liabilities described above to be measured at fair value were not material.

In the first quarter of 2024, we determined our investment in VillageMD was impaired and recorded a $ 1.8 billion loss in Net investment losses in the Company's Consolidated Statements of Income.

Observable price changes for equity securities with no readily determinable fair value were not material for the three months ended March 31, 2025 and March 31, 2024.

For the six months ended June 30, 2025, impairments recognized requiring the assets and liabilities described above to be measured at fair value were not material.

For the six months ended June 30, 2024, we determined our investment in VillageMD was impaired and recorded a $ 1.8 billion loss in Net investment gains (losses) in the Company's Consolidated Statements of Income.

Observable price changes for equity securities with no readily determinable fair value were not material for the six months ended June 30, 2025 or June 30, 2024.

Fair Value Disclosures for Financial Instruments Not Carried at Fair Value

1 unchanged sentence

In addition to universal life products and finance leases, financial instruments that are carried in the Company's Consolidated Balance Sheets at amounts that approximate fair value are excluded from the following table.

Classification in Fair Value Hierarchy March 31, 2025 December 31, 2024

Classification in Fair Value Hierarchy June 30, 2025 December 31, 2024

(In millions) Fair Value Carrying Value Fair Value Carrying Value

2 unchanged sentences

Note 13 – Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss) ("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 (see Note 9 to the Consolidated Financial Statements), foreign currency translation, and the net postretirement benefits liability adjustment.

Accumulated Other Comprehensive Income (Loss) ("AOCI") includes net unrealized appreciation on securities and derivatives, change in discount rate and instrument-specific credit risk for certain long-duration insurance contractholder liabilities (see 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 (loss) in the same period that the related pre-tax AOCI reclassifications are recognized.

Shareholders' other comprehensive loss, net of tax, for the three months ended March 31, 2025 and March 31, 2024 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.

Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to Shareholders' net income in the same period that the related pre-tax AOCI reclassifications are recognized.

Shareholders' other comprehensive loss, net of tax, for the three and six months ended June 30, 2025 and June 30, 2024 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.

Changes in the components of AOCI were as follows:

Three Months Ended

Six Months Ended

(In millions) 2025 2024 2025 2024

1 unchanged sentence

Beginning balance $ 732 $ 292 $ 832 $ 171

Unrealized (depreciation) appreciation on securities and derivatives, before reclassification, net of tax benefit (expense) of $ 49 and $( 39 ), respectively

Amounts reclassified to Shareholders' net income (loss), net of tax (benefit) of $( 9 ) and $( 5 ), respectively

Other comprehensive (loss) income, net of tax

Unrealized appreciation on securities and derivatives, before reclassification, net of tax (expense) of $( 93 ), $( 29 ), $( 44 ) and $( 68 ), respectively

303 77 169 181

Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 4 ), $( 8 ), $( 13 ) and $( 13 ), respectively

Other comprehensive income, net of tax

321 108 221 229

Ending balance $ 1,053 $ 400 $ 1,053 $ 400

3 unchanged sentences

( 615 ) ( 212 ) ( 723 ) ( 758 )

Amounts reclassified to Shareholders' net income (loss), net of tax expense of $ 16 and $ — , respectively

Amounts reclassified to Shareholders' net income, net of tax expense of $ — , $ — , $ 16 and $ — , respectively

Net current period change in discount rate for certain long-duration liabilities, net of tax benefit of $ 205 , $ 76 , $ 254 and $ 262 , respectively

( 615 ) ( 212 ) ( 779 ) ( 758 )

Net current period change in instrument-specific credit risk for market risk benefits, net of tax benefit of $ 1 and $ 4 , respectively

Net current period change in instrument-specific credit risk for market risk benefits, net of tax (expense) benefit of $( 2 ), $ — , $( 1 ) and $ 4 , respectively

Other comprehensive (loss), net of tax

4 unchanged sentences

Net translation of foreign currencies, before reclassification, net of tax (expense) of $( 2 ), $( 1 ), $( 8 ) and $( 3 ), respectively

65 ( 5 ) 78 ( 31 )

Ending balance $ ( 120 ) $ ( 180 ) $ ( 120 ) $ ( 180 )

2 unchanged sentences

Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 2 ), $ — , $( 4 ) and $( 3 ), respectively

Net change due to valuation update, before reclassification, net of tax benefit of $ 3 , $ 4 , $ 3 and $ 4 , respectively

( 9 ) ( 16 ) ( 9 ) ( 16 )

Other comprehensive (loss) income, net of tax

( 3 ) ( 9 ) 3 ( 4 )

Ending balance $ ( 934 ) $ ( 919 ) $ ( 934 ) $ ( 919 )

5 unchanged sentences

Note 14 – Strategic Optimization Program

In 2025, the Company commenced an enterprise-wide initiative to evolve our business and deliver a more efficient and improved experience for our patients, providers and customers.

This program is expected to continue through December 2026 and include severance and other employee costs, accelerated asset amortization, and the operating results of certain small non-strategic businesses that we plan to discontinue.

In the first quarter of 2025, the Company commenced an enterprise-wide initiative to evolve our business and deliver a more efficient and improved experience for our patients, providers and customers.

This program is expected to continue through December 2026 and include severance and other employee costs, asset impairments and accelerated asset amortization, and the operating results of certain small non-strategic businesses that we plan to discontinue.

As we continue to evaluate additional opportunities to improve the overall efficiency and effectiveness of our operations, we anticipate future charges.

During the three months ended March 31, 2025, we reported total costs of $ 215 million, pre-tax ($ 163 million, after-tax) associated with this initiative, including a charge in Selling, general and administrative expenses of $ 198 million, pre-tax ($ 150 million, after-tax) that was primarily associated with employee severance.

The remainder reflects the operating results of certain non-strategic businesses.

During the three and six months ended June 30, 2025, we reported total costs of $ 129 million, pre-tax ($ 98 million, after-tax) and $ 344 million, pre-tax ($ 261 million, after-tax), respectively, associated with this initiative.

During the three months ended June 30, 2025, the total costs included a charge in Selling, general and administrative ("SG&A") expenses of $ 88 million, pre-tax, that was primarily comprised of asset impairments.

During the six months ended June 30, 2025, the total costs included a charge in SG&A expenses of $ 286 million, pre-tax, that was primarily associated with employee severance.

The remainder for both periods reflects the operating results of certain non-strategic businesses.

We expect substantially all of the accrued liability to be paid by the end of 2025.

The following table summarizes a roll forward of the accrued liability recorded in Accrued expenses and other liabilities during the three months ended March 31, 2025:

See Note 17 to the Consolidated Financial Statements for further details of the Strategic Optimization Program impact by segment.

The following table summarizes a roll forward of the accrued liability recorded in Accrued expenses and other liabilities during the six months ended June 30, 2025:

(In millions)

Balance, December 31, 2024

First quarter 2025 charge

2025 payments

Balance, March 31, 2025

Balance, June 30, 2025

Note 15 – Income Taxes

Income Tax Expense

The 14.5 % effective tax rate for the three months ended March 31, 2025 was lower than the 368.4 % rate for the three months ended March 31, 2024 primarily due to the absence of a valuation allowance related to the impairment of equity securities in 2024, partially offset by the absence of tax benefits recorded in 2024 related to the release of tax reserves following favorable state audit resolutions and the impact related to the HCSC transaction.

As of March 31, 2025, we had approximately $ 856 million in deferred tax assets ("DTAs") associated with the impairment of equity securities as well as unrealized investment losses.

A valuation allowance of $ 636 million, of which $ 427 million was established in the three months ended March 31, 2024, drove the higher effective tax rate and was almost entirely related to the impairment of equity securities discussed in Note 11 to the Consolidated Financial Statements.

The 19.2 % effective tax rate for the three months ended June 30, 2025 was higher than the 18.1 % rate for the three months ended June 30, 2024.

The increase was primarily driven by the absence of tax benefits recorded in 2024 related to the release of tax reserves following favorable state audit resolutions, partially offset by the favorable impact of foreign operations.

The 17.1 % effective tax rate for the six months ended June 30, 2025 was lower than 31.5 % rate for the six months ended June 30, 2024.

The decrease was primarily due to the absence of a valuation allowance related to the impairment of equity securities in 2024, partially offset by the absence of tax benefits recorded in 2024 related to the release of tax reserves following favorable state audit resolutions and the impact related to the HCSC transaction.

As of June 30, 2025, we had approximately $ 847 million in deferred tax assets ("DTAs") associated with the impairment of equity securities as well as unrealized investment losses.

A valuation allowance of $ 636 million, of which $ 422 million was established in the six months ended June 30, 2024, drove the higher effective tax rate and was almost entirely related to the impairment of equity securities discussed in Note 11 to the Consolidated Financial Statements.

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 securities until recovery.

7 unchanged sentences

If employers fail to do so, the Company or an affiliate of the buyer of the retirement benefits business has the right to redirect the management of the related assets to provide for benefit payments.

As of March 31, 2025, employers maintained assets that generally exceeded the benefit obligations under these arrangements of approximately $ 410 million.

As of June 30, 2025, employers maintained assets that generally exceeded the benefit obligations under these arrangements of approximately $ 400 million.

An additional liability is established if management believes that the Company will be required to make payments under the guarantees;

there were no additional liabilities required for these guarantees, net of reinsurance, as of March 31, 2025.

there were no additional liabilities required for these guarantees, net of reinsurance, as of June 30, 2025.

Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy.

1 unchanged sentence

Certain Other Guarantees

The Company had indemnification obligations as of March 31, 2025 in connection with acquisition and disposition transactions.

The Company had indemnification obligations as of June 30, 2025 in connection with acquisition and disposition transactions.

These indemnification obligations are triggered by the breach of representations or covenants provided by the Company, such as representations for the presentation of financial statements, filing of tax returns, compliance with laws or regulations, or identification of outstanding litigation.

2 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.

There were no recorded liabilities for these indemnification obligations as of March 31, 2025.

There were no recorded liabilities for these indemnification obligations as of June 30, 2025.

Guaranty Fund Assessments

1 unchanged sentence

The Company's exposure to assessments for certain obligations of insolvent insurance companies to policyholders and claimants is based on its share of business written in the relevant jurisdictions.

There were no material charges or credits resulting from existing or new guaranty fund assessments for the three months ended March 31, 2025.

There were no material charges or credits resulting from existing or new guaranty fund assessments for the six months ended June 30, 2025.

Legal and Regulatory Matters

18 unchanged sentences

The following table presents the special items charges (benefits) recorded by the Company, as well as the respective financial statement line items impacted:

Three Months Ended March 31,

(In millions) Pre-tax After-tax Pre-tax After-tax

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In millions) Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax Pre-tax After-tax

Strategic optimization program (largely Selling, general and administrative expenses) 129 98 — — 344 261 — —

Integration and transaction-related costs (Selling, general and administrative expenses) $ 74 $ 56 $ 63 $ 47 $ 290 $ 220 $ 100 $ 76

Strategic optimization program (primarily Selling, general and administrative expenses) 215 163 — —

Deferred tax expenses, net (Income taxes, less amount attributable to noncontrolling interests) — 17 — 17

(Gain) loss on sale of businesses — — — — ( 41 ) ( 115 ) 19 ( 43 )

Deferred tax expenses, net (Income taxes, less amount attributable to noncontrolling interests) — 17 — 17 — 34 — 34

Total impact from special items $ 203 $ 171 $ 63 $ 64 $ 593 $ 400 $ 119 $ 67

4 unchanged sentences

Corporate and Eliminations

Three months ended March 31, 2025

Three months ended June 30, 2025

Revenues from external customers $ 57,486 $ 9,358 $ 98 $ — $ 66,942

4 unchanged sentences

Net investment results from certain equity method investments — ( 44 ) — — ( 44 )

Adjusted revenues $ 57,825 $ 10,754 $ 184 $ ( 1,629 ) $ 67,134

Pharmacy and other service costs 54,939 —

Medical costs — 7,482

Selling, general and administrative expenses excluding special items 1,074 2,180

Other segment items (1)

Interest (expense) and other 1 2

Less income attributable to noncontrolling interests 117 —

Pre-tax adjusted income (loss) from operations 1,696 1,094 25 ( 382 ) 2,433

Income (loss) before income taxes

$ 1,430 $ 1,098 $ ( 20 ) $ ( 487 ) $ 2,021

Pre-tax adjustments to reconcile to adjusted income from operations

(Income) attributable to noncontrolling interests

( 117 ) — — — ( 117 )

Net investment (gains) losses (2)

( 80 ) ( 20 ) 4 — ( 96 )

Amortization of acquired intangible assets 416 6 — — 422

Special items

Strategic optimization program 47 10 41 31 129

Integration and transaction-related costs — — — 74 74

Pre-tax adjusted income (loss) from operations $ 1,696 $ 1,094 $ 25 $ ( 382 ) $ 2,433

Other segment information

Depreciation and amortization 587 81 9 5 682

(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.

(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

Cigna Healthcare

Other Operations

Corporate and Eliminations

Three months ended June 30, 2024

Revenues from external customers $ 48,251 $ 11,821 $ 130 $ — $ 60,202

Intersegment revenues 1,232 1,203 20 ( 2,455 )

Net investment income

65 172 77 7 321

Total revenues 49,548 13,196 227 ( 2,448 ) 60,523

Net investment results from certain equity method investments — ( 53 ) — — ( 53 )

Adjusted revenues $ 49,548 $ 13,143 $ 227 $ ( 2,448 ) $ 60,470

1 unchanged sentence

Medical costs — 9,312

Selling, general and administrative expenses excluding special items 980 2,629

Other segment items (1)

Interest (expense) and other ( 2 ) 2

Less income attributable to noncontrolling interests 95 —

Pre-tax adjusted income (loss) from operations $ 1,619 $ 1,204 $ ( 16 ) $ ( 435 ) $ 2,372

Income (loss) before income taxes

$ 1,299 $ 1,205 $ ( 17 ) $ ( 498 ) $ 1,989

Pre-tax adjustments to reconcile to adjusted income from operations

(Income) attributable to noncontrolling interests

( 95 ) — — — ( 95 )

Net investment (gains) losses (2)

( 1 ) ( 5 ) 1 — ( 5 )

Amortization of acquired intangible assets 416 4 — — 420

Special items

Integration and transaction-related costs — — — 63 63

Pre-tax adjusted income (loss) from operations $ 1,619 $ 1,204 $ ( 16 ) $ ( 435 ) $ 2,372

Other segment information

Depreciation and amortization $ 614 $ 113 $ 2 $ 9 $ 738

(In millions) Evernorth Health Services

Cigna Healthcare

Other Operations

Corporate and Eliminations

Six months ended June 30, 2025

Revenues from external customers $ 109,488 $ 22,526 $ 192 $ — $ 132,206

Intersegment revenues 1,956 2,544 25 ( 4,525 )

Net investment income

62 260 142 10 474

Total revenues 111,506 25,330 359 ( 4,515 ) 132,680

Net investment results from certain equity method investments

— ( 94 ) — — ( 94 )

Adjusted revenues $ 111,506 $ 25,236 $ 359 $ ( 4,515 ) $ 132,586

Pharmacy and other service costs 106,060 —

Medical costs — 17,867

Selling, general and administrative expenses 2,098 4,992

24 unchanged sentences

Corporate and Eliminations

Three months ended March 31, 2024

Six months ended June 30, 2024

Revenues from external customers $ 93,137 $ 23,833 $ 196 $ 1 $ 117,167

12 unchanged sentences

Pre-tax adjusted income (loss) from operations 2,979 2,544 2 ( 844 ) 4,681

(Loss) income before income taxes

Income (loss) before income taxes

$ 863 $ 2,148 $ 1 $ ( 944 ) $ 2,068

7 unchanged sentences

Integration and transaction-related costs

— — — 100 100

Loss on sale of businesses

6 unchanged sentences

The following table presents these revenues by product, premium and service type:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(In millions) 2025 2024 2025 2024

25 unchanged sentences

Evernorth Health Services

3,805 3,293 7,229 6,290

Cigna Healthcare

1,679 1,716 3,450 3,321

Other Operations

1 unchanged sentence

Total Fees and other revenues (1)

4,137 3,647 8,032 6,973

Total revenues from external customers $ 66,942 $ 60,202 $ 132,206 $ 117,167

(1) Other revenues for the three months ended March 31, 2025 and 2024 were $ 162 million and $ 90 million, respectively.

(1) Other revenues for the three months ended June 30, 2025 and 2024 were $ 114 million and $ 152 million, respectively, and for the six months ended June 30, 2025 and 2024 were $ 276 million and $ 242 million, respectively.

Financial and performance guarantees.

4 unchanged sentences

Historically, adjustments to original estimates have not been material.

This guarantee liability was $ 1.9 billion as of both March 31, 2025 and December 31, 2024.

This guarantee liability was $ 1.4 billion as of June 30, 2025 and $ 1.9 billion December 31, 2024.

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.

What changed 10-Q

Item 1. Financial Statements