What changed in this filing

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Item 1. Financial Statements

2025-10-30 compared with 2025-07-31 · 225 added, 166 removed, 941 unchanged (29% of the section changed)

3 unchanged sentences

Unaudited Unaudited

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

Three Months Ended September 30, Nine Months Ended September 30,

(In millions, except per share amounts) 2025 2024

31 unchanged sentences

Unaudited Unaudited

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

Three Months Ended September 30, Nine Months Ended September 30,

(In millions) 2025

1 unchanged sentence

Other comprehensive income (loss), net of tax

Net unrealized appreciation on securities and derivatives

Net unrealized (depreciation) appreciation on securities and derivatives

( 401 ) 264 ( 180 ) 493

Net long-duration insurance and contractholder liabilities measurement adjustments 421 ( 28 ) ( 356 ) ( 800 )

Net translation gains (losses) on foreign currencies

Net translation (losses) gains on foreign currencies

( 10 ) 39 68 8

Postretirement benefits liability adjustment 7 4 10 —

Other comprehensive loss, net of tax

Other comprehensive income (loss), net of tax

17 279 ( 458 ) ( 299 )

7 unchanged sentences

Consolidated Balance Sheets

June 30, As of

September 30, As of

(In millions) 2025 2024

39 unchanged sentences

(1) Par value per share, $ 0.01 ;

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

shares issued, 404 million as of September 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 June 30, 2025

Three Months Ended September 30, 2025

(In millions) Common

9 unchanged sentences

Noncontrolling

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

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

Effects of issuing stock for employee benefit plans 110 ( 3 ) 107 107

Other comprehensive loss ( 226 ) ( 226 ) ( 226 ) —

Other comprehensive income 17 17 17 —

1,868 1,868 105 1,973 —

3 unchanged sentences

Other transactions impacting noncontrolling interests — — ( 112 ) ( 112 ) —

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

Balance at September 30, 2025 $ 4 $ 31,698 $ ( 2,799 ) $ 47,028 $ ( 34,126 ) $ 41,805 $ 209 $ 42,014 $ —

Three Months Ended September 30, 2024

(In millions) Common

9 unchanged sentences

Noncontrolling

Balance at March 31, 2024

Balance at June 30, 2024

$ 4 $ 31,048 $ ( 2,442 ) $ 42,132 $ ( 29,410 ) $ 41,332 $ 195 $ 41,527 $ —

Effect of issuing stock for employee benefit plans 138 ( 2 ) 136 136

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

Other comprehensive income 279 279 279 —

Net income 739 739 86 825 —

3 unchanged sentences

Other transactions impacting noncontrolling interests — — ( 78 ) ( 78 ) —

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

Balance at September 30, 2024 $ 4 $ 31,186 $ ( 2,163 ) $ 42,480 $ ( 29,412 ) $ 42,095 $ 203 $ 42,298 $ —

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

1 unchanged sentence

Consolidated Statements of Changes in Total Equity

Six Months Ended June 30, 2025

Nine Months Ended September 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

8 unchanged sentences

Other transactions impacting noncontrolling interests — — ( 292 ) ( 292 ) —

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 September 30, 2025 $ 4 $ 31,698 $ ( 2,799 ) $ 47,028 $ ( 34,126 ) $ 41,805 $ 209 $ 42,014 $ —

Nine Months Ended September 30, 2024

8 unchanged sentences

Other transactions impacting noncontrolling interests — — ( 50 ) ( 50 ) ( 107 )

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

Balance at September 30, 2024 $ 4 $ 31,186 $ ( 2,163 ) $ 42,480 $ ( 29,412 ) $ 42,095 $ 203 $ 42,298 $ —

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

1 unchanged sentence

Consolidated Statements of Cash Flows

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions) 2025

29 unchanged sentences

Property and equipment purchases, net ( 890 ) ( 1,069 )

Acquisitions, net of cash acquired ( 597 ) ( 132 )

Divestitures, net of cash sold 2,346 —

1 unchanged sentence

Other, net ( 24 ) ( 19 )

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 400 ( 1,135 )

NET CASH USED IN INVESTING ACTIVITIES ( 3,987 ) ( 1,911 )

Cash Flows from Financing Activities

1 unchanged sentence

Withdrawals and benefit payments from contractholder deposit funds ( 201 ) ( 180 )

Net change in short-term debt 296 ( 467 )

Net change in short-term debt, excluding term loan ( 915 ) 366

Net proceeds on issuance of term loan 1,999 —

Repayment of term loan ( 2,000 ) —

Repayment of long-term debt ( 1,643 ) ( 3,000 )

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

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

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

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

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

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

$ 6,071 $ 5,935

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Interest paid $ 1,043 $ 1,037

(1) Restricted cash and cash equivalents were reported in other long-term investments.

(1) Restricted cash and cash equivalents were reported in other long-term investments and Other assets.

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

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The Company's 2024 Form 10-K includes discussion of significant recent accounting pronouncements that either have impacted or may impact our financial statements in the future.

There are no updates on significant accounting pronouncements recently adopted or recently issued and not yet adopted that have occurred since the Company filed its 2024 Form 10-K.

There are no updates on significant accounting pronouncements recently adopted that have occurred since the Company filed its 2024 Form 10-K.

There are no significant accounting pronouncements recently issued and not yet adopted that are expected to impact our operations or financial statements, with the exception of Accounting Standards Update 2025-06, Targeted Improvements to the Accounting for Internal-Use Software .

In September 2025, the Financial Accounting Standards Board issued new guidance related to Targeted Improvements to the Accounting for Internal-Use Software (Subtopic 350-40), Accounting Standards Update ("ASU") 2025-06, which seeks to improve the operability of the recognition guidance considering different methods of software development, mainly more iterative methods.

The guidance is required to be adopted January 1, 2028 with early adoption permitted, and transition options include prospective from the date of adoption as well as retrospective adoption.

The Company is currently evaluating the impact of this guidance on our results of operations and financial position, as well as potential impacts to systems and controls.

Note 3 – Accounts Receivable, Net

The following amounts were included within Accounts receivable, net:

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

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

Noninsurance customer receivables $ 15,007 $ 11,879

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Total $ 31,709 $ 24,227

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 accounts receivable are reported net of our allowances of $ 7.0 billion and $ 5.0 billion as of September 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 $ 388 million as of June 30, 2025 and $ 84 million as of December 31, 2024.

The Company's allowance for current expected credit losses was $ 160 million as of September 30, 2025 and $ 84 million as of December 31, 2024.

Accounts Receivable Factoring Facility

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.

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.

The Facility automatically renewed in July 2025 and is subject to automatic one-year renewal terms unless terminated by either party.

We sold manufacturer accounts receivable under the Facility of $ 1.3 billion for both the three months ended September 30, 2025 and 2024, respectively, and $ 4.0 billion and $ 4.5 billion for the nine months ended September 30, 2025 and 2024, respectively.

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

As of September 30, 2025, there were $ 0.8 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.

As of September 30, 2025, all collections from manufacturers have been remitted to the financial institution.

As of December 31, 2024, there were $ 1.0 billion 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.

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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 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.

As of both September 30, 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.

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

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.

As of September 30, 2025, we have been informed by the financial institution that $ 606 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

On March 19, 2025, the Company completed the sale of our Medicare Advantage, Medicare Individual Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits, and CareAllies ® businesses (the "Disposal Group" or the "HCSC transaction").

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.

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 ("CMS").

The purchase price increased from $ 3.3 billion to $ 4.9 billion, reflecting higher statutory surplus for the legal entities when conveyed to HCSC and post-closing contractual adjustments.

During the three and nine months ended September 30, 2025, the Company recognized a gain of $ 38 million pre-tax ($ 241 million after-tax) and $ 75 million pre-tax ($ 353 million after-tax), respectively, within Gain (loss) on sale of businesses in the Consolidated Statements of Income.

See Note 15 to the Consolidated Financial Statements for discussion of tax matters resulting in an after-tax gain on sale of businesses.

The Company received approximately $ 4.2 billion cash proceeds at closing.

We expect receipt of the remaining approximately $ 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") and completion of post-closing contractual adjustments.

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.

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and certain employment-related costs.

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.

These costs were $ 7 million pre-tax ($ 6 million after-tax) for the three months ended and $ 297 million pre-tax ($ 226 million after-tax) for the nine months ended September 30, 2025, compared with $ 77 million pre-tax ($ 59 million after-tax) for the three months ended and $ 177 million pre-tax ($ 135 million after-tax) for the nine months ended September 30, 2024.

Note 6 – Earnings Per Share

1 unchanged sentence

Three Months Ended

June 30, 2025 June 30, 2024

September 30, 2025 September 30, 2024

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

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Earnings per share $ 7.02 $ ( 0.04 ) $ 6.98 $ 2.65 $ ( 0.02 ) $ 2.63

Six Months Ended

June 30, 2025 June 30, 2024

Nine Months Ended

September 30, 2025 September 30, 2024

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

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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,

Three Months Ended September 30, Nine Months Ended September 30,

(In millions) 2025 2024 2025 2024

Anti-dilutive options 2.1 0.8 1.9 1.0

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.

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

Note 7 – Debt

Short-Term and Long-Term Debt.

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.

During the nine months ended September 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.

Debt Issuance.

In September 2025, we issued $ 4.5 billion of new senior notes, as detailed in the table below.

The proceeds from this debt issuance were used to repay the $ 2.0 billion of loans outstanding under the Term Loan Facility as described below.

We used the remaining net proceeds for general corporate purposes, including investments and repayment of indebtedness.

Interest on this debt is paid semiannually.

Principal Maturity Date Interest Rate Net Proceeds Redeemable Date (1)

"Make Whole" Premium (2)

$ 1,000 million

September 15, 2030 4.500 % $ 994 million August 15, 2030 15

$ 1,250 million

September 15, 2032 4.875 % $ 1,245 million July 15, 2032 15

$ 1,500 million

January 15, 2036 5.250 % $ 1,490 million October 15, 2035 15

$ 750 million

January 15, 2056 6.000 % $ 736 million July 15, 2055 20

(1) Redeemable at any time prior to this date at a "make whole" premium, defined below.

Redeemable at par on or after this date.

(2) "Make whole" premium calculated using a comparable U.S.

Treasury rate plus the amount of basis points set forth in this column.

In August 2025, the Company entered into a new 364 -day term loan facility (the "Term Loan Facility") and borrowed $ 2.0 billion to fund an investment in Shields Health Solutions ("Shields"), a leading specialty pharmacy management company.

The full outstanding balance was repaid and the Term Loan Facility was terminated in September 2025, using proceeds from the debt issuance described above.

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.

Our Credit Agreement (defined below) 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 September 30, 2025, there was no outstanding balance under the 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").

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

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

There was no commercial paper balance as of September 30, 2025.

Debt Covenants.

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

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

Interest Expense.

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.

Interest expense on long-term and short-term debt was $ 363 million for the three months ended and $ 1.1 billion for the nine months ended September 30, 2025, compared with $ 380 million for the three months ended and $ 1.1 billion for the nine months ended September 30, 2024.

Note 8 – Common and Preferred Stock

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

September 4, 2025 September 18, 2025 $ 1.51 $ 402

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

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.

September 4, 2024 September 19, 2024 $ 1.40 $ 390

On October 22, 2025, the Board of Directors of The Cigna Group (the "Board") declared the fourth quarter cash dividend of $ 1.51 per share of The Cigna Group common stock to be paid on December 18, 2025 to shareholders of record on December 4, 2025.

The Company currently intends to pay regular quarterly dividends, with future declarations subject to approval by the Board and the Board's determination that the declaration of dividends remains in the best interests of The Cigna Group and its shareholders.

The decision of whether to pay future dividends and the amount of any such dividends will be based on the Company's financial position, results of operations, cash flows, capital requirements, the requirements of applicable law and any other factors the Board may deem relevant.

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

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

September 30, 2025 December 31, 2024 September 30, 2024

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

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Total insurance and contractholder liabilities $ 6,018 $ 10,079 $ 16,097 $ 5,388 $ 10,254 $ 15,642 $ 16,050

(1) Amounts classified as liabilities of businesses held for sale include $ 983 million of Unpaid claims, $ 408 million of Future policy benefits, $ 85 million of Unearned premiums and $ 103 million of Contractholder deposit funds as of December 31, 2024 and $ 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.

(1) Amounts classified as liabilities of businesses held for sale include $ 983 million of Unpaid claims, $ 408 million of Future policy benefits, $ 85 million of Unearned premiums and $ 103 million of Contractholder deposit funds as of December 31, 2024 and $ 937 million of Unpaid claims, $ 422 million of Future policy benefits, $ 98 million of Unearned premiums and $ 111 million of Contractholder deposit funds as of September 30, 2024.

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

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

The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $ 4.5 billion as of 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.

The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $ 4.5 billion as of September 30, 2025 and $ 4.7 billion as of September 30, 2024.

The decrease was driven by the HCSC transaction, partially offset by an increase in stop loss reserves primarily due to seasonality.

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

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions) 2025 (1)

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(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, June 30, 2024 and December 31, 2023, includes $ 983 million, $ 900 million and $ 823 million classified as liabilities of businesses held for sale, respectively.

As of December 31, 2024, September 30, 2024 and December 31, 2023, includes $ 983 million, $ 937 million and $ 823 million, respectively, classified as liabilities of businesses held for sale.

Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset.

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

Six Months Ended June 30,

Nine Months Ended September 30,

(Dollars in millions) $ % (1)

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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 six months ended June 30, 2025 and June 30, 2024 were not material.

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

Other Operations

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

June 30, 2025 June 30, 2024

September 30, 2025 September 30, 2024

Interest accretion rate 5.64 % 5.64 %

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

Future policy benefits for Other Operations include deferred profit liability of $ 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.

Future policy benefits for Other Operations include deferred profit liability of $ 0.4 billion as of both September 30, 2025 and September 30, 2024.

Future policy benefits excluding deferred profit liability were $ 2.9 billion as of both September 30, 2025 and December 31, 2024, $ 3.1 billion as of September 30, 2024, and $ 3.2 billion as of December 31, 2023.

Undiscounted expected future policy benefits were $ 4.2 billion as of September 30, 2025 and $ 4.3 billion as of September 30, 2024.

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

Contractholder Deposit Funds

Contractholder deposit fund liabilities within Other Operations were $ 6.2 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.

Contractholder deposit fund liabilities within Other Operations were $ 6.1 billion as of September 30, 2025, $ 6.3 billion as of December 31, 2024, $ 6.3 billion as of September 30, 2024 and $ 6.5 billion as of December 31, 2023.

Approximately 37 % of the balance is reinsured externally.

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

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.

As of September 30, 2025, the weighted average crediting rate, net amount at risk and cash surrender value for contractholder deposit fund liabilities not effectively exited through reinsurance were 3.26 %, $ 2.6 billion and $ 2.8 billion, respectively.

The comparative amounts as of September 30, 2024 were 3.33 %, $ 2.9 billion and $ 2.8 billion, respectively.

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

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

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

Market Risk Benefits

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Market risk benefits activity was as follows:

Six Months Ended June 30,

Nine Months Ended September 30,

(In millions) 2025 2024

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Changes due to policyholder behavior versus expected ( 20 ) ( 26 )

Assumption changes ( 17 ) 37

Balance, end of period, before the effect of changes in nonperformance risk (own credit risk) 757 1,011

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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) June 30, 2025 June 30, 2024

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

Net amount at risk $ 1,141 $ 1,361

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

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:

The Company's reinsurance recoverables as of September 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

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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 as of June 30, 2025.

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

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

As of September 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:

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

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

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Debt Securities

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

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

(In millions) Amortized

11 unchanged sentences

Depreciation Fair

June 30, 2025

September 30, 2025

Federal government and agency $ 214 $ — $ 16 $ ( 4 ) $ 226

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(Dollars in millions) Fair

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(In millions) Cost Carrying Value Cost Carrying Value

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Total $ 6,808 $ 3,517 $ 3,850 $ 561

In the third quarter of 2025, the Company invested $ 3.5 billion in preferred stock of Shields and a compounding dividend is recorded in Fees and other revenues within the Consolidated Statements of Income.

The investment is included in equity securities with no readily determinable fair value in the table above.

Commercial Mortgage Loans

5 unchanged sentences

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

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

(Dollars in millions) September 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

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Carrying Value as of

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

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

Real estate investments $ 1,800 $ 1,763

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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 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.

The Company also has derivative instruments associated with certain equity securities;

see Note 12 to the Consolidated Financial Statements for further discussion.

As of September 30, 2025, the notional value of interest rate swap contracts increased to $ 2.8 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 nine months ended September 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 June 30, 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 September 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 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.

Net investment gains (losses), before income taxes were $ 26 million and $ 76 million, respectively, for the three and nine months ended September 30, 2025, versus $( 921 ) million and $( 2,805 ) million, respectively, for the three and nine months ended September 30, 2024.

Net investment results for the three and nine months ended September 30, 2025 increased, reflecting the absence of the impairment of equity securities recorded in 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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Financial Assets and Financial Liabilities Carried at Fair Value

The following table provides information about the Company's financial assets and liabilities carried at fair value.

Further information regarding insurance assets and liabilities carried at fair value is provided in Note 9E to the Consolidated Financial Statements.

The following table provides information about the Company's investment and derivative financial assets and liabilities carried at fair value on a recurring basis.

Further information regarding insurance assets and liabilities carried at fair value is provided in Note 9E to the Consolidated Financial Statements in the Company's 2024 Form 10-K.

Separate account assets are also recorded at fair value on the Company's Consolidated Balance Sheets and are reported separately in the Separate Accounts section below as gains and losses related to these assets generally accrue directly to contractholders.

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(Level 3) Total

2025 December 31, 2024 June 30,

September 30,

2025 December 31, 2024 September 30,

2025 December 31, 2024

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Additionally, as discussed in Note 9E in the Company's 2024 Form 10-K, the Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy.

Quantitative Information about Unobservable Inputs

Information about Debt Securities

The significant unobservable input used to value our corporate and government debt securities and mortgage and other asset-backed securities is an adjustment for liquidity.

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

(Fair value in millions) June 30,

(Fair value in millions) September 30,

2025 December 31,

2024 Unobservable Input

June 30, 2025

September 30, 2025

September 30,

2025 December 31,

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Total Level 3 debt securities $ 351 $ 417

Information about Derivative Instruments

Derivative Instruments associated with certain equity securities are valued each reporting period using a Monte Carlo simulation and estimated business enterprise value and are recorded in Other assets and Other non-current liabilities in the Consolidated Balance Sheets.

The significant unobservable Level 3 measurement inputs used are forecasted earnings measures and equity as well as adjustments to reflect estimated volatility and credit spreads.

See Note 11A to the Consolidated Financial Statements for further information.

Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value

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Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

(In millions) 2025 2024 2025 2024

Debt and Equity Securities

Beginning balance $ 362 $ 397 $ 417 $ 447

1 unchanged sentence

( 9 ) ( 10 ) ( 23 ) ( 71 )

Gains (losses) included in Other comprehensive loss

3 ( 2 ) 10 ( 5 )

Gains included in Other comprehensive income (loss)

Purchases, sales and settlements

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$ ( 6 ) $ ( 9 ) $ ( 23 ) $ ( 71 )

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

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

$ 11 $ 8 $ 18 $ 3

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.

Gains and losses included in Other comprehensive income (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.

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.

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Transfers between Level 2 and Level 3 during 2025 and 2024 primarily reflected changes in liquidity estimates for certain private placement issuers across several sectors.

See discussion under Quantitative Information about Unobservable Inputs above for more information.

See discussion under Level 3 Financial Assets and Financial Liabilities above for more information.

Separate Accounts

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

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

The separate account activity for the nine months ended September 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) June 30,

(In millions) September 30,

2025 December 31,

2024 June 30,

2024 September 30,

2025 December 31,

2024 June 30,

2024 September 30,

2025 December 31,

2024 June 30,

2024 September 30,

2025 December 31,

6 unchanged sentences

Total $ 7,533 $ 7,278

(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.

(1) Non-guaranteed separate accounts include $ 3.8 billion as of both September 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 September 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 and six months ended June 30, 2025 or 2024.

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

Assets and Liabilities Measured at Fair Value under Certain Conditions

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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 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.

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

For the nine months ended September 30, 2024, we determined our investment in VillageMD was fully impaired and recorded a $ 2.7 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 nine months ended September 30, 2025 or September 30, 2024.

Fair Value Disclosures for Financial Instruments Not Carried at Fair Value

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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 June 30, 2025 December 31, 2024

Classification in Fair Value Hierarchy September 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 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 (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.

AOCI includes the Company's share from unconsolidated entities reported on the equity method.

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

Shareholders' other comprehensive loss, 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.

Shareholders' other comprehensive loss, net of tax, for the three and nine months ended September 30, 2025 and September 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

September 30,

Nine Months Ended

September 30,

(In millions) 2025 2024 2025 2024

1 unchanged sentence

Beginning balance $ 1,053 $ 400 $ 832 $ 171

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

Unrealized (depreciation) appreciation on securities and derivatives, before reclassification, net of tax benefit (expense) of $ 137 , $( 65 ), $ 93 and $( 133 ), respectively

( 406 ) 254 ( 237 ) 435

Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 1 ), $( 2 ), $( 14 ) and $( 15 ), respectively

Other comprehensive income, net of tax

Other comprehensive (loss) income, net of tax

( 401 ) 264 ( 180 ) 493

2 unchanged sentences

Beginning balance $ ( 2,815 ) $ ( 1,743 ) $ ( 2,038 ) $ ( 971 )

Net current period change in discount rate for certain long-duration liabilities, before reclassification, net of tax benefit of $ 205 , $ 76 , $ 238 and $ 262 , respectively

Net current period change in discount rate for certain long-duration liabilities, before reclassification, net of tax (expense) benefit of $( 146 ), $ 3 , $ 92 and $ 265 , respectively

427 ( 31 ) ( 296 ) ( 789 )

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

Net current period change in discount rate for certain long-duration liabilities, net of tax (expense) benefit of $( 146 ), $ 3 , $ 108 and $ 265 , respectively

427 ( 31 ) ( 352 ) ( 789 )

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

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

( 6 ) 3 ( 4 ) ( 11 )

Other comprehensive income (loss), net of tax

421 ( 28 ) ( 356 ) ( 800 )

Ending balance $ ( 2,394 ) $ ( 1,771 ) $ ( 2,394 ) $ ( 1,771 )

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— — ( 9 ) ( 16 )

Other comprehensive (loss) income, net of tax

( 3 ) ( 9 ) 3 ( 4 )

Other comprehensive income, net of tax

Ending balance $ ( 927 ) $ ( 915 ) $ ( 927 ) $ ( 915 )

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Beginning balance $ ( 2,816 ) $ ( 2,442 ) $ ( 2,341 ) $ ( 1,864 )

Shareholders' other comprehensive loss, net of tax benefit of $ 105 , $ 42 , $ 187 and $ 183 , respectively

Shareholders' other comprehensive income (loss), net of tax (expense) benefit of $( 10 ), $( 70 ), $ 177 and $ 113 , respectively

17 279 ( 458 ) ( 299 )

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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.

This program is expected to continue through December 2026 and includes 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 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.

During the three and nine months ended September 30, 2025, we reported total costs of $ 222 million pre-tax ($ 168 million after-tax) and $ 566 million pre-tax ($ 429 million after-tax), respectively, associated with this initiative.

During the three and nine months ended September 30, 2025, the total costs included a charge in Selling, general and administrative ("SG&A") expenses of $ 181 million, pre-tax and $ 467 million, pre-tax, respectively, that was primarily associated with employee severance.

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

1 unchanged sentence

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:

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

(In millions)

1 unchanged sentence

2025 payments

Balance, June 30, 2025

Balance, September 30, 2025

Note 15 – Income Taxes

Income Tax Expense

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.

The effective tax rates of 14.0 % and 15.9 % for the three and nine months ended September 30, 2025, respectively, were lower than the effective tax rates of 30.8 % and 31.2 % for the three and nine months ended September 30, 2024, respectively.

The decrease in the three and nine months comparative rates 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.

During the three months ended September 30, 2025, the reallocation of the HCSC transaction purchase price by legal entity resulted in an equal write-off of the deferred tax asset ("DTA") and valuation allowance associated with the tax-deductible capital loss on the sale, resulting in zero net impact on the Company's total tax provision.

Additionally, the decrease in valuation allowance associated with the tax-deductible capital loss on the sale recorded in the three months ended September 30, 2025 generated a substantial portion of the after-tax gain on sale discussed in Note 5 to the Consolidated Financial Statements.

This valuation allowance decrease was offset by an increase in valuation allowance associated with DTAs on the impairment of equity securities, as discussed below.

As such, there was no material change to the realizability assessment of the Company's consolidated DTAs and no material net impact to the Company's consolidated tax expense.

We continue to monitor and evaluate the need for any additional valuation allowance.

As of September 30, 2025, we had approximately $ 824 million in DTAs associated with the impairment of equity securities as well as unrealized investment losses.

A valuation allowance of $ 788 million and $ 635 million as of the nine months ended September 30, 2025 and September 30, 2024, respectively, primarily relates to the impairment of equity securities discussed in Note 11 to the Consolidated Financial Statements.

The increase in valuation allowance primarily associated with the impairment of equity securities resulted from the reallocation of available sources of capital income, as discussed above.

Note 16 – Contingencies and Other Matters

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For the majority of these benefits, the sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations.

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

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

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

to provide for benefit payments.

As of September 30, 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 June 30, 2025.

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

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

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Certain Other Guarantees

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

The Company had indemnification obligations as of September 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.

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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 June 30, 2025.

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

Guaranty Fund Assessments

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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 six months ended June 30, 2025.

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

Legal and Regulatory Matters

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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.

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.

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.

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.

1 unchanged sentence

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 June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 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 — —

Strategic optimization program (primarily Selling, general and administrative expenses) $ 222 $ 168 $ — $ — $ 566 $ 429 $ — $ —

Integration and transaction-related costs (Selling, general and administrative expenses) 7 6 77 59 297 226 177 135

(Gain) loss on sale of businesses ( 38 ) ( 241 ) 87 62 ( 79 ) ( 356 ) 106 19

(Benefits) associated with litigation matters (Selling, general and administrative expenses) ( 17 ) ( 13 ) — — ( 17 ) ( 13 ) — —

Deferred tax expenses, net (Income taxes, less amount attributable to noncontrolling interests) — 19 — 41 — 53 — 75

Impairment of dividend receivable (Net investment income) — — 182 138 — — 182 138

Total impact from special items $ 174 $ ( 61 ) $ 346 $ 300 $ 767 $ 339 $ 465 $ 367

4 unchanged sentences

Corporate and Eliminations

Three months ended June 30, 2025

Three months ended September 30, 2025

Revenues from external customers $ 59,982 $ 9,460 $ 68 $ 5 $ 69,515

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Interest (expense) and other ( 2 ) 2

Less income attributable to noncontrolling interests 117 —

Income attributable to noncontrolling interests 123 —

Pre-tax adjusted income (loss) from operations 1,903 1,038 36 ( 399 ) 2,578

4 unchanged sentences

( 123 ) — — — ( 123 )

Net investment (gains) losses (2)

Net investment losses (gains) (2)

17 ( 218 ) ( 5 ) 2 ( 204 )

3 unchanged sentences

Integration and transaction-related costs — — — 7 7

(Gain) on sale of businesses — ( 38 ) — — ( 38 )

(Benefits) associated with litigation matters — ( 17 ) — — ( 17 )

Pre-tax adjusted income (loss) from operations $ 1,903 $ 1,038 $ 36 $ ( 399 ) $ 2,578

7 unchanged sentences

Corporate and Eliminations

Three months ended June 30, 2024

Three months ended September 30, 2024

Revenues from external customers $ 51,552 $ 11,919 $ 137 $ 1 $ 63,609

Intersegment revenues 1,045 1,279 18 ( 2,342 )

Net investment income

Net investment (loss) income

( 142 ) 142 79 6 85

1 unchanged sentence

Net investment results from certain equity method investments — ( 177 ) — — ( 177 )

Special item related to impairment of dividend receivable 182 — — — 182

Adjusted revenues $ 52,637 $ 13,163 $ 234 $ ( 2,335 ) $ 63,699

4 unchanged sentences

Interest (expense) and other — 3

Less income attributable to noncontrolling interests 95 —

Income attributable to noncontrolling interests 99 —

Pre-tax adjusted income (loss) from operations $ 1,876 $ 1,174 $ ( 6 ) $ ( 425 ) $ 2,619

4 unchanged sentences

( 99 ) — — — ( 99 )

Net investment (gains) losses (2)

Net investment losses (gains) (2)

748 ( 8 ) 4 — 744

2 unchanged sentences

Integration and transaction-related costs — — — 77 77

Loss on sale of businesses — 87 — — 87

Impairment of dividend receivable 182 — — — 182

Pre-tax adjusted income (loss) from operations $ 1,876 $ 1,174 $ ( 6 ) $ ( 425 ) $ 2,619

7 unchanged sentences

Corporate and Eliminations

Six months ended June 30, 2025

Nine months ended September 30, 2025

Revenues from external customers $ 169,470 $ 31,986 $ 260 $ 5 $ 201,721

22 unchanged sentences

Special items

Integration and transaction-related costs — — — 290 290

Strategic optimization program 83 14 99 370 566

Integration and transaction-related costs — — — 297 297

(Gain) on sale of businesses ( 4 ) ( 75 ) — — ( 79 )

(Benefits) associated with litigation matters — ( 17 ) — — ( 17 )

Pre-tax adjusted income (loss) from operations $ 5,033 $ 3,419 $ 61 $ ( 1,192 ) $ 7,321

7 unchanged sentences

Corporate and Eliminations

Six months ended June 30, 2024

Nine months ended September 30, 2024

Revenues from external customers $ 144,689 $ 35,752 $ 333 $ 2 $ 180,776

Intersegment revenues 3,558 3,606 63 ( 7,227 )

Net investment income

Net investment (loss) income

( 18 ) 463 231 20 696

1 unchanged sentence

Net investment results from certain equity method investments — ( 238 ) — — ( 238 )

Special item related to impairment of dividend receivable 182 — — — 182

Adjusted revenues $ 148,411 $ 39,583 $ 627 $ ( 7,205 ) $ 181,416

18 unchanged sentences

Loss on sale of businesses

— 106 — — 106

Impairment of dividend receivable

182 — — — 182

Pre-tax adjusted income (loss) from operations $ 4,855 $ 3,718 $ ( 4 ) $ ( 1,269 ) $ 7,300

5 unchanged sentences

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

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

Three Months Ended September 30, Nine Months Ended September 30,

(In millions) 2025 2024 2025 2024

33 unchanged sentences

Total revenues from external customers $ 69,515 $ 63,609 $ 201,721 $ 180,776

(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.

(1) Other revenues for the three months ended September 30, 2025 and 2024 were $ 276 million and $ 267 million, respectively, and for the nine months ended September 30, 2025 and 2024 were $ 552 million and $ 509 million, respectively.

Financial and performance guarantees.

4 unchanged sentences

Historically, adjustments to original estimates have not been material.

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

This guarantee liability was $ 1.6 billion as of September 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