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Item 8. Financial Statements and Supplementary Data

2026-02-26 compared with 2025-02-27 · 357 added, 371 removed, 1804 unchanged (29% of the section changed)

91 unchanged sentences

Other comprehensive income (loss), net of tax

Net unrealized appreciation (depreciation) on securities and derivatives

Net unrealized (depreciation) appreciation on securities and derivatives

( 238 ) 661 503

Net long-duration insurance and contractholder liabilities measurement adjustments ( 291 ) ( 1,067 ) ( 715 )

Net translation (losses) gains on foreign currencies

Net translation gains (losses) on foreign currencies

Postretirement benefits liability adjustment ( 7 ) ( 22 ) 1

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5,823 3,301 5,166

Comprehensive income (loss) attributable to noncontrolling interests

Comprehensive income attributable to noncontrolling interests

Net income attributable to redeemable noncontrolling interests — — 180

Net income attributable to other noncontrolling interests 331 344 28

Other comprehensive loss attributable to redeemable noncontrolling interests — — ( 2 )

Total comprehensive income attributable to noncontrolling interests 331 344 208

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Separate account assets 7,511 7,278

Assets of businesses held for sale, non-current — 2,922

TOTAL ASSETS $ 157,919 $ 155,881

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Separate account liabilities 7,511 7,278

Liabilities of businesses held for sale, non-current — 591

TOTAL LIABILITIES 116,045 114,638

Contingencies — Note 22

Redeemable noncontrolling interests — 107

Shareholders' equity

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TOTAL SHAREHOLDERS' EQUITY 41,713 41,033

Other noncontrolling interests 210 21

Noncontrolling interests 161 210

Total equity 41,874 41,243

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Investment losses, net

Deferred income tax benefit

Deferred income tax expense (benefit)

326 ( 95 ) ( 1,659 )

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Other sales, maturities and repayments (primarily short-term and other long-term investments)

752 586 1,039

Investments purchased or originated:

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Other, net ( 34 ) 58 ( 19 )

NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES ( 2,102 ) ( 5,174 ) 3,098

NET CASH USED IN INVESTING ACTIVITIES ( 4,407 ) ( 2,102 ) ( 5,174 )

Cash Flows from Financing Activities

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Withdrawals and benefit payments from contractholder deposit funds ( 253 ) ( 228 ) ( 223 )

Net change in short-term debt ( 402 ) 1,198 ( 2,059 )

Net change in short-term debt, excluding term loan ( 927 ) ( 402 ) 1,198

Net proceeds on issuance of term loan 1,999 — —

Repayment of term loan ( 2,000 ) — —

Repayment of long-term debt ( 4,197 ) ( 3,000 ) ( 2,967 )

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Effect of foreign currency rate changes on cash, cash equivalents and restricted cash 32 ( 20 ) 16

Net increase in cash, cash equivalents and restricted cash 594 2,361 428

Net (decrease) increase in cash, cash equivalents and restricted cash ( 1,195 ) 594 2,361

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

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Supplemental Disclosure of Cash Information:

Income taxes paid, net of refunds $ 898 $ 1,471 $ 1,850

Interest paid $ 1,350 $ 1,342 $ 1,330

(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 are an integral part of these statements .

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4 Supplier Finance Program

5 Assets and Liabilities of Businesses Held for Sale

5 Divestiture

6 Earnings Per Share

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W ORKFORCE M ANAGEMENT AND C OMPENSATION

16 Strategic Optimization Program

18 Employee Incentive Plans

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The Cigna Group ® , together with its subsidiaries (either individually or collectively referred to as the "Company," "we," "us" or "our"), is a global health company committed to creating a better future for every individual and every community.

We relentlessly challenge ourselves to partner and innovate solutions for better health.

Powered by our dedicated people and valued brands, we advance our mission to improve the health and vitality of those we serve.

Our subsidiaries offer a differentiated set of pharmacy, medical, behavioral, dental, and related products and services.

The majority of these products and services are offered through employers and other entities, such as governmental and nongovernmental organizations, unions and associations.

Cigna Healthcare also offers health and dental insurance products to individuals in the United States and select international markets.

Certain subsidiaries also offer health and dental insurance products to individuals in the United States and select international markets.

In addition to these operations, The Cigna Group also has certain run-off operations.

A full description of our segments follows:

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.

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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 also includes the Medicare Advantage and related businesses pending divestiture to Health Care Services Corporation ("HCSC") (see Note 5 to the Consolidated Financial Statements for further information).

International Health provides health care solutions in our international markets, as well as health care benefits for globally mobile individuals and employees of multinational organizations.

Other Operations comprises the remainder of our business operations, which includes certain continuing (corporate-owned life insurance ("COLI")), run-off and other non-strategic businesses.

Our run-off businesses include the (i) variable annuity reinsurance business that was effectively exited through reinsurance with Berkshire Hathaway Life Insurance Company of Nebraska ("Berkshire") in 2013, (ii) settlement annuity business and (iii) individual life insurance and annuity and retirement benefits businesses, which were sold through reinsurance agreements.

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

International Health provides health care solutions in our international markets, as well as health solutions for globally mobile individuals and employees of multinational organizations.

Healthcare also included the Medicare Advantage and related businesses until the divestiture of such businesses to Health Care Services Corporation ("HCSC") on March 19, 2025 (see Note 5 to the Consolidated Financial Statements for further information).

Other Operations comprises the remainder of our business operations, which includes certain continuing business (corporate-owned life insurance ("COLI")), as well as run-off and other non-strategic businesses.

(ii) settlement annuity business;

and (iii) individual life insurance and annuity and retirement benefits businesses, which were sold through reinsurance agreements.

Corporate reflects amounts not allocated to operating segments, including net interest expense (defined as interest on corporate financing less net investment income on investments not supporting segment and other operations), certain litigation matters, expense associated with our frozen pension plans, charitable contributions, operating severance, certain overhead and enterprise-wide project costs, and eliminations for products and services sold between segments.

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These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP").

Certain amounts in the Consolidated Statements of Cash Flows and Note 20 "Income Taxes" to the Consolidated Financial Statements have been reclassified to conform to current year presentation and did not have a significant impact on our Consolidated Financial Statements.

Amounts recorded in the Consolidated Financial Statements necessarily reflect management's estimates and assumptions about medical costs, investment, tax and receivable valuations, interest rates, and other factors.

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There were no new accounting standards adopted during the year ended December 31, 2025 that had a material impact on our Consolidated Financial Statements.

There are no significant accounting pronouncements not yet adopted as of December 31, 2024.

Accounting Guidance Not Yet Adopted

Accounting Standards Update ("ASU") 2025-06, Targeted Improvements to the Accounting for Internal-Use Software (Subtopic 350-40).

Required to be adopted January 1, 2028, with early adoption permitted and requires the following:

• Seeks to improve the operability of the recognition guidance considering different methods of software development, mainly more iterative methods, by:

◦ Aligning internal-use software capitalization requirements to probable completion and required funding and authorization.

◦ Clarifying certain criteria for probable completion, including that the significant performance requirements of the software be identified and no longer subject to substantial revision.

• Transition options include prospective from the date of adoption as well as retrospective and modified 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 information systems and controls.

ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40).

Required to be adopted for the annual reporting period ending December 31, 2027 and for interim reporting periods beginning January 1, 2028 and requires:

• Additional expense detail in the footnotes disaggregating income statement captions including any of the following:

inventory purchases;

employee compensation;

depreciation;

and intangible asset amortization, as well as a qualitative description of remaining expenses to reconcile to the total expense within those income statement captions;

• Disclosure of the definition and total amount of selling expenses;

• Transition options include prospective from the date of adoption as well as retrospective adoption.

The only financial statement impact resulting from adoption will be increased disclosure.

The Company continues to evaluate the effects the adoption requirements on information systems and controls.

Significant Accounting Policies

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The Company administers programs through which we may receive rebates and other vendor consideration from pharmaceutical manufacturers.

The amounts of such rebates or other vendor consideration shared with pharmacy benefit management services clients

vary based on the contractual arrangement with the client and in some cases the type of consideration received from the pharmaceutical manufacturer.

The amounts of such rebates or other vendor consideration shared with pharmacy benefit management services clients vary based on the contractual arrangement with the client and in some cases the type of consideration received from the pharmaceutical manufacturer.

Rebates and other vendor consideration payable to pharmacy benefit management services clients are recorded as a reduction of Pharmacy revenues.

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Benefits and expenses are recognized when incurred and, for our Cigna Healthcare business, are presented net of pharmaceutical manufacturer rebates.

For experience-rated contracts, premium revenue includes an adjustment for experience-rated refunds based on contract terms and calculated using the customer's experience (including estimates of incurred but not reported claims).

Premiums received for the Company's Medicare Advantage plans, Medicare Part D plans and Individual and Family Plans from the Centers for Medicare and Medicaid Services ("CMS") and customers are recognized as revenue ratably over the contract period.

CMS provides risk-adjusted premium payments for Medicare Advantage plans and Medicare Part D plans based on our customer demographics and medical diagnoses, which may change from period to period based on the underlying health factors of our customers.

The Company recognizes changes to risk-adjusted premiums as revenue when the amounts are determinable and collection is reasonably assured.

Revenue adjustments are generally settled semiannually with CMS.

The final revenue adjustment is generally settled with CMS in the year following the contract year.

Medicare Part D premiums include payments from CMS for risk-sharing adjustments that are estimated quarterly based on claim experience by comparing actual incurred prescription drug costs to the estimated costs submitted in the original contracts.

These adjustments may result in more or less revenue from CMS.

Final revenue adjustments generally occur in the year following the contract year.

The Patient Protection and Affordable Care Act ("ACA") prescribed a risk adjustment program to mitigate the risk for participating health insurance companies selling individual coverage on the public exchanges.

The risk adjustment program reallocates funds from insurers with lower risk populations to insurers with higher risk populations based on the relative risk scores of participants.

We estimate our receivable or payable based on the risk of our customers compared to the risk of other customers in the same state and market, considering data obtained from industry studies and the United States Department of Health and Human Services ("HHS").

Receivables or payables are recorded as adjustments to premium revenue based on our year-to-date experience when the amounts are reasonably estimable and collection is reasonably assured.

Final revenue adjustments are determined by HHS in the year following the policy year.

For experience-rated contracts, premium revenue includes an adjustment for

experience-rated refunds based on contract terms and calculated using the customer's experience (including estimates of incurred but not reported claims).

The Patient Protection and Affordable Care Act ("ACA") established a risk adjustment program that transfers funds among insurers based on the relative risk of their covered populations of individuals who purchased insurance on a public exchange.

We recognize receivables or payables from the Centers for Medicare and Medicaid Services ("CMS") for the Company's Individual and Family Plans as adjustments to premium revenue when amounts are reasonably estimable and collection is reasonably assured, using year-to-date experience and industry data.

Final settlements are determined by the United States Department of Health and Human Services ("HHS") in the subsequent year.

Premium revenue may also include an adjustment to reflect the estimated effect of rebates due to customers under medical loss ratio provisions of the ACA.

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Liabilities related to experience-rated refunds, risk adjustment programs and the minimum medical loss ratio are included in Accrued expenses and other liabilities (current).

Premiums for long-duration insurance contracts, including supplemental health, accident and individual life insurance and annuity products, and excluding universal life and investment-related products, are recognized as revenue when due.

Premiums for supplemental health, accident and individual life insurance and annuity long-duration products are recognized as revenue when due.

Cigna Healthcare long-duration premium revenues are associated with contracts that provide coverage greater than one year or are guaranteed to be renewed at the option of the policyholder beyond one year.

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Revenue for universal life products is recognized as follows:

• Investment income on assets supporting universal life products is recognized in Net investment income as earned.

• Investment income on assets supporting universal life products is recognized in Net investment income/losses as earned.

• Charges for mortality, administration and policy surrender are recognized in Premiums as earned.

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Expenses are recognized when claims are incurred and income is credited to policyholders in accordance with contract provisions.

The unrecognized portion of premiums received is recorded as unearned premiums included in Insurance and contractholder liabilities (current and non-current) (see Note 9 to the Consolidated Financial Statements for further information).

The unrecognized portion of premiums received is recorded as unearned premiums included in Insurance and contractholder liabilities (current and non-current).

See Note 9 to the Consolidated Financial Statements for further information.

Fees and Related Expenses

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We bill pharmaceutical manufacturers based on management's interpretation of contractual terms and estimate a contractual allowance based on the best information available at the time a claim is processed.

Contractual allowances for certain rebates receivable from pharmaceutical manufacturers are determined by reviewing payment experience and specific known items that

could be adjusted under contract terms.

Contractual allowances for certain rebates receivable from pharmaceutical manufacturers are determined by reviewing payment experience and specific known items that could be adjusted under contract terms.

The Company's estimation process for contractual allowances for pharmaceutical manufacturer receivables generally results in an allowance for balances outstanding greater than 90 days.

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Accounts receivable, net classified as assets of businesses held for sale

( 1,927 ) ( 1,122 )

Total $ 28,768 $ 24,227

These receivables are reported net of our allowances of $ 6.8 billion and $ 5.0 billion as of December 31, 2025 and 2024, respectively.

As of December 31, 2024 and 2023, these allowances were primarily comprised of $ 4.3 billion and $ 3.1 billion, respectively, associated with contractual allowances for certain pharmaceutical manufacturers rebate receivables;

As of December 31, 2025 and 2024, these allowances were primarily comprised of $ 6.2 billion and $ 4.3 billion, respectively,

associated with contractual allowances for certain pharmaceutical manufacturers rebate receivables;

$ 270 million and $ 388 million, respectively, associated with contractual allowances for third-party payor noninsurance customer receivables;

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Accounts Receivable Factoring Facility

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

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 at inception was $ 1.0 billion and was amended to $ 1.5 billion in May 2024.

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

The transactions under the Facility are accounted for as a sale and recorded as a reduction to accounts receivable in the Consolidated Balance Sheets because control of, and risk related to, the accounts receivable are transferred to the financial institution.

Although the sale is made without recourse, we provide collection services related to the transferred assets.

Amounts associated with this Facility are reflected within Net cash provided by operating activities in the Consolidated Statements of

Amounts associated with this Facility are reflected within Net cash provided by operating activities in the Consolidated Statements of Cash Flows.

Factoring fees paid under this Facility are reflected in Interest expense and other in the Consolidated Statements of Income.

We sold pharmaceutical manufacturers receivables under the Facility of $ 4.4 billion and $ 5.5 billion during the years ended December 31, 2025 and December 31, 2024, respectively.

For the years ended December 31, 2024 and December 31, 2023, factoring fees paid were not material.

For the years ended December 31, 2025, 2024 and 2023, factoring fees paid were not material.

As of December 31, 2025 and December 31, 2024, all sold accounts receivable had been collected from pharmaceutical manufacturers and had been removed from the Company's Consolidated Balance Sheets.

As of December 31, 2024 and December 31, 2023, there were $ 1.0 billion and $ 515 million, respectively, of collections from pharmaceutical manufacturers that had not been remitted to the financial institution.

As of December 31, 2025 and December 31, 2024, there were $ 0.4 billion and $ 1.0 billion, respectively, of collections from pharmaceutical manufacturers that had not been remitted to the financial institution.

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

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

As of December 31, 2024, we have been informed by the financial institution that an immaterial amount of the Company's outstanding payment obligations were voluntarily elected by suppliers to be sold to the financial institution under the Program.

Note 5 – Assets and Liabilities of Businesses Held for Sale

Note 5 – Divestiture

Accounting Policy .

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Deferred policy acquisition costs continue to be amortized.

In January 2024, the Company entered into a definitive agreement to sell the Medicare Advantage, Medicare Individual Stand-Alone Prescription Drug Plans, Medicare and Other Supplemental Benefits, and CareAllies businesses (the "Disposal Group") to HCSC subject to applicable regulatory approvals and other customary closing conditions, including purchase price adjustments to align with the final balance sheet of the divested businesses (the "HCSC transaction").

The initial $ 3.3 billion purchase price is anticipated to increase at closing, reflecting higher statutory surplus for the legal entities that will convey to HCSC.

The transaction is expected to close in the first quarter of 2025.

The Company determined that the Disposal Group met the criteria to be classified as held for sale and aggregated and classified the assets and liabilities as held for sale in our Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023.

The Company measured the assets and liabilities of the Disposal Group at estimated fair value less costs to sell based on an estimated $ 4.7 billion purchase price as of December 31, 2024 and initial $ 3.3 billion purchase price as of December 31, 2023 and recognized within Net gain (loss) on sale of businesses in the Consolidated Statements of Income an estimated loss of $ 472 million pre-tax ($ 363 million after-tax) for the year ended December 31, 2024 and $ 1.5 billion pre-tax ($ 1.4 billion after-tax) for the year ended December 31, 2023.

The estimated loss on sale for both periods primarily represents goodwill impairments of $ 302 million pre-tax in 2024 and $ 1.2 billion pre-tax in 2023.

The assets and liabilities of businesses held for sale were as follows:

(In millions) December 31, 2024 December 31, 2023

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") on March 19, 2025 (the "HCSC transaction").

The final purchase price and total cash proceeds collected in 2025 were $ 4.9 billion, representing an increase from the initial $ 3.3 billion purchase price, driven by higher statutory surplus for the legal entities when conveyed to HCSC and post-closing contractual adjustments.

The Company recognized within Net gain (loss) on sale of businesses in the Consolidated Statements of Income a gain of $ 9 million pre-tax ($ 401 million after-tax) for the year ended December 31, 2025, a loss of $ 472 million ($ 363 million after-tax) for the year ended December 31, 2024, and a loss of $ 1.5 billion ($ 1.4 billion after-tax) for the year ended December 31, 2023.

See Note 21 to the Consolidated Financial Statements for discussion of tax matters for the year ended December 31, 2025 resulting in an after-tax gain on sale of businesses.

The estimated loss on sale for both the years ended December 31, 2024 and December 31, 2023 primarily represented goodwill impairments of $ 302 million pre-tax in 2024 and $ 1.2 billion pre-tax in 2023.

The assets and liabilities held for sale as of December 31, 2024 were as follows:

(In millions) December 31, 2024

Cash and cash equivalents $ 1,339

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Total liabilities of businesses held for sale $ 2,410

(1) Includes Goodwill of $ 94 million as of December 31, 2024 and $ 396 million as of December 31, 2023.

(1) Included Goodwill of $ 94 million .

Integration and Transaction-Related Costs

In 2025, 2024 and 2023, the Company incurred transaction-related costs associated with the HCSC transaction.

In 2023 and 2022, the Company also incurred net costs mainly related to the sale of our international life, accident and supplemental benefits businesses.

Additionally in 2022, the Company incurred costs related to the sale of the Group Disability and Life business as well as the acquisition of MDLIVE, Inc.

These costs incurred consisted primarily of certain projects to separate or integrate the Company's systems, products and services;

These costs incurred consisted primarily of certain projects to separate the Company's systems, products and services;

fees for legal, advisory and other professional services;

and certain employment-related costs.

These costs were $ 275 million pre-tax ($ 211 million after-tax), $ 45 million pre-tax ($ 35 million after-tax) and $ 135 million pre-tax ($ 103 million after-tax) for the years ended December 31, 2024, December 31, 2023 and December 31, 2022, respectively.

These costs were $ 327 million pre-tax ($ 247 million after-tax) for the year ended December 31, 2025, compared with $ 275 million pre-tax ($ 211 million after-tax) for the year ended December 31, 2024, and $ 45 million pre-tax ($ 35 million after-tax) for the year ended December 31, 2023.

Note 6 – Earnings Per Share

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Commercial paper $ — $ 880

$ 500 million, 0.613 % Notes due March 2024

$ 790 million, 3.500 % Notes due June 2024 (1)

$ 900 million, 3.250 % Notes due April 2025

$ 1,216 million, 4.125 % Notes due November 2025

$ 550 million, 1.250 % Notes due March 2026

Other, including finance leases 43 43

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Long-term debt

$ 900 million, 3.250 % Notes due April 2025 (2)

$ 1,216 million, 4.125 % Notes due November 2025 (1)

$ 1,284 million, 4.500 % Notes due February 2026

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$ 1,400 million, 2.400 % Notes due March 2030 (1)

$ 1,000 million, 4.500 % Notes due September 2030

$ 1,500 million, 2.375 % Notes due March 2031 (1)

$ 750 million, 5.125 % Notes due May 2031 (1)

$ 1,250 million, 4.875 % Notes due September 2032

$ 45 million, 8.080 % Step Down Notes due January 2033

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$ 1,250 million, 5.250 % Notes due February 2034 (1)

$ 1,500 million, 5.250 % Notes due January 2036

$ 190 million, 6.150 % Notes due November 2036

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$ 1,500 million, 5.600 % Notes due February 2054

$ 750 million, 6.000 % Notes due January 2056

Other, including finance leases 68 41

Total long-term debt $ 30,871 $ 28,937

(1) Included in the February 2024 debt tender offers discussed below.

(1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments as of December 31, 2025.

See Note 11 to the Consolidated Financial Statements for further information about the Company's interest rate risk management and these derivative instruments.

Short-Term and Credit Facilities Debt

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 December 31, 2024, there were no outstanding balances under these revolving credit agreements.

In April 2024, The Cigna Group replaced its previous revolving credit agreements and entered into the following (the "Credit Agreements"):

• A $ 5.0 billion five-year revolving credit and letter of credit agreement that will mature in April 2029 with an option to extend the maturity date for additional one-year periods, subject to consent of the banks.

The Company can borrow up to $ 5.0 billion under the credit agreement for general corporate purposes, with up to $ 500 million available for issuance of letters of credit.

• A $ 1.5 billion 364-day revolving credit agreement that will mature in April 2025.

The Company can borrow up to $ 1.5 billion under the credit agreement for general corporate purposes.

This agreement includes the option to "term out" any revolving loans that are outstanding at maturity by converting them into a term loan maturing on the one-year anniversary of conversion.

Each of the Credit Agreements includes an option to increase commitments in an aggregate amount of up to $ 1.5 billion across both facilities for a maximum total commitment of $ 8.0 billion.

The Credit Agreements allow for borrowings at either a base rate or an adjusted term Secured Overnight Funding Rate ("SOFR") plus, in each case, an applicable margin based on the Company's senior unsecured credit ratings.

Each facility also contains customary covenants and restrictions, including a financial covenant that the Company's leverage ratio, as defined in the Credit Agreements, may not exceed 60 % subject to certain exceptions upon the consummation of an acquisition.

Commercial Paper.

Under our commercial paper program, we may issue short-term, unsecured commercial paper notes privately placed on a discounted basis through certain broker-dealers at any time not to exceed an aggregate amount of $ 6.5 billion.

Our commercial paper program size was increased from $ 5.0 billion to $ 6.5 billion in July 2024.

Amounts available under the program may be borrowed, repaid and re-borrowed from time to time.

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

The weighted average interest rate of our commercial paper was 4.65 % at December 31, 2024.

Long-Term Debt

Debt Issuance and Debt Tender Offers.

In February 2024, we issued $ 4.5 billion of new senior notes, as detailed in the table below.

The proceeds from this debt were used to pay the consideration for the cash tender offers as described below.

We used the remaining net proceeds to fund the repayment of our senior notes that matured in March 2024 and for general corporate purposes, including repayment of indebtedness and repurchases of shares of our common stock.

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.

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$ 1,000 million

May 15, 2029 5.000 % $ 995 million April 15, 2029 15

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

$ 1,250 million

May 15, 2031 5.125 % $ 746 million March 15, 2031 15

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

$ 1,500 million

February 15, 2034 5.250 % $ 1,244 million November 15, 2033 20

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

$ 750 million

February 15, 2054 5.600 % $ 1,485 million August 15, 2053 20

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 the most directly comparable U.S.

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

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

In the first quarter of 2024, the Company completed the repurchase of a total of $ 1.8 billion in aggregate principal amount of existing senior notes that were tendered to the Company pursuant to cash tender offers.

In August 2025, the Company entered into a new 364 -day term loan facility (the "Term Loan Facility") and borrowed $ 2.0 billion to partially 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 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 December 31, 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 an additional one-year period, subject to consent of the banks (the "Credit Agreement").

The Company can borrow up to $ 6.5 billion under the Credit Agreement for general corporate purposes, with up to $ 500 million available for issuance of letters of credit.

The Credit Agreement includes an option to increase commitments up to $ 1.5 billion for a maximum total commitment of $ 8.0 billion.

The Credit Agreement allows for borrowings at either a base rate, term Secured Overnight Financing Rate ("SOFR") or daily simple SOFR, plus, in each case, an applicable margin based on the Company's senior unsecured credit ratings.

The Credit Agreement also contains customary covenants and restrictions, including a financial covenant that the Company's leverage ratio, as defined in the Credit Agreement, may not exceed 60 %, subject to certain exceptions upon the consummation of an acquisition.

Commercial Paper.

Amounts available under the program may be borrowed, repaid and re-borrowed from time to time.

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

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

Debt Maturities.

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December 6, 2023 December 21, 2023 $ 1.23 $ 358

On January 30, 2025, the Board of Directors declared the first quarter cash dividend of $ 1.51 per share of The Cigna Group common stock to be paid on March 20, 2025 to shareholders of record on March 5, 2025.

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.

On February 5, 2026 , the Board of Directors of The Cigna Group (the "Board") declared the first quarter cash dividend of $ 1.56 per share of The Cigna Group common stock to be paid on March 19, 2026 to shareholders of record on March 5, 2026 .

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.

Accelerated Share Repurchase Agreements

In February 2024, as part of our share repurchase program, we entered into separate accelerated share repurchase agreements with Deutsche Bank AG and Bank of America, N.A.

to repurchase $ 3.2 billion of common stock in aggregate.

The total number of shares of our common stock repurchased under the agreements was approximately 9.3 million, at $ 344.98 per share.

The per share amount was calculated based on the daily volume-weighted average share price of our common stock over the term of the agreements, less a discount.

Note 9 – Insurance and Contractholder Liabilities

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$ 4,180 $ 61 $ 4,241 $ 4,932 $ 86 $ 5,018

Other Operations 147 144 291 99 154 253

Other 167 176 343 147 144 291

Future policy benefits

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Total insurance and contractholder liabilities $ 5,710 $ 9,938 $ 15,648 $ 5,388 $ 10,254 $ 15,642

(1) Amounts classified as liabilities of businesses held for sale include $ 983 million of Unpaid claims, $ 408 million of Future policy benefits, $ 85 million of Unearned premiums and $ 103 million of Contractholder deposit funds as of December 31, 2024 and $ 823 million of Unpaid claims, $ 429 million of Future policy benefits, $ 261 million of Unearned premiums and $ 123 million of Contractholder deposit funds as of December 31, 2023.

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

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Completion factors are impacted by several key items including changes in:

1) electronic (auto-adjudication) versus manual claim processing;

2) frequency and timeliness of provider claims submissions;

3) number of customers;

and 4) the mix of products.

The Company uses historical completion factors combined with an analysis of current trends and operational factors to develop current estimates of completion factors.

The Company estimates the liability for claims incurred in each month by applying the current

estimates of completion factors to the current paid claims data.

(i) electronic (auto-adjudication) versus manual claim processing;

(ii) frequency and timeliness of provider claims submissions;

(iii) number of customers;

and (iv) the mix of products.

The Company uses historical completion factors combined with an analysis of current trends and operational factors to

develop current estimates of completion factors.

The Company estimates the liability for claims incurred in each month by applying the current estimates of completion factors to the current paid claims data.

This approach implicitly assumes that historical completion rates will be a useful indicator for the current period.

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and changes in consumer demographics and consumption behavior.

The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $ 4.6 billion at December 31, 2024 and $ 4.8 billion at December 31, 2023.

The total of incurred but not reported liabilities plus expected development on reported claims and reported claims in process was $ 4.0 billion as of December 31, 2025 and $ 4.6 billion as of December 31, 2024.

The decrease was driven by the HCSC transaction.

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

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Total paid 32,916 37,888 34,773

Divestiture and other 1,323 — —

Ending balance, net 4,094 4,859 4,856

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Ending balance $ 4,241 $ 5,018 $ 5,092

(1) Includes unpaid claims amounts classified as liabilities of businesses held for sale.

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

(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 and December 31, 2023, includes $ 983 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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Outstanding liabilities for the periods presented, net of reinsurance $ 5,204

Other long-duration liabilities not included in development table above 186

Divestiture and other ( 1,110 )

Net unpaid claims and claims expenses - Cigna Healthcare

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Mortality, morbidity and surrender assumptions are based on the Company's own experience and published actuarial tables and are updated at least annually, to the extent changes in circumstances require.

Interest rate assumptions are based on market-level yields for low credit risk fixed income instruments ("upper-medium grade fixed income instrument").

Interest rate assumptions are based on market-level yields for low credit risk fixed income instruments ("upper-medium grade fixed income instruments").

For interest accretion purposes, interest rates are fixed at the year of the cohort's inception;

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Deferred profit liability is amortized based on expected future benefit payments.

As of December 31, 2024, approximately 34 % of the liability for future policy benefits, excluding amounts held for sale, was supported by assets in trust for the benefit of the ceding company under reinsurance agreements.

As of December 31, 2025, approximately 36 % of the liability for future policy benefits was supported by assets in trust for the benefit of the ceding company under reinsurance agreements.

Cigna Healthcare

The weighted average interest rates applied and duration for future policy benefits in the Cigna Healthcare segment, consisting primarily of supplemental health products including individual Medicare supplement, limited benefit health products and individual private medical insurance, were as follows:

December 31, 2024 December 31, 2023

Interest accretion rate 2.85 % 2.54 %

Current discount rate 5.10 % 4.92 %

Weighted average duration 8.7 years 7.9 years

The net liability for future policy benefits for the segment's supplemental health products represents the present value of benefits expected to be paid to policyholders, net of the present value of expected net premiums, which is the portion of expected future gross premium expected to be collected from policyholders that is required to provide for all expected future benefits and expenses.

The present values of expected net premiums and expected future policy benefits for the Cigna Healthcare segment were as follows:

For the Years Ended December 31,

(In millions) 2024 (1)

Present value of expected net premiums

Beginning balance $ 9,233 $ 8,557

Reversal of effect of beginning of period discount rate assumptions 1,154 1,537

Effect of assumption changes and actual variances from expected experience (2)

Issuances and lapses 1,982 1,255

Net premiums collected ( 1,441 ) ( 1,370 )

Interest and other (3)

Ending balance at original discount rate 11,685 10,387

Effect of end of period discount rate assumptions ( 1,232 ) ( 1,154 )

Ending balance (4)

$ 10,453 $ 9,233

Present value of expected policy benefits

Beginning balance $ 9,633 $ 8,945

Reversal of effect of discount rate assumptions 1,220 1,611

Effect of assumption changes and actual variances from expected experience (2)

Issuances and lapses 1,893 1,309

Benefit payments ( 1,473 ) ( 1,374 )

Interest and other (3)

Ending balance at original discount rate 12,145 10,853

Effect of discount rate assumptions ( 1,309 ) ( 1,220 )

Ending balance (5)

$ 10,836 $ 9,633

Liability for future policy benefits $ 383 $ 400

Total liability for future policy benefits (1)(7)

(1) Includes $ 408 million and $ 429 million of future policy benefits classified as liabilities of businesses held for sale in the Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023, respectively.

(2) Includes the effect of actual variances from expectations, which decreased the total liability for future policy benefits by $( 44 ) million and $( 12 ) million for the years ended December 31, 2024 and December 31, 2023, respectively.

(3) Includes the foreign exchange rate impact of translating from transactional and functional currency to United States dollar and the impact of flooring the liability at zero.

The flooring impact is calculated at the cohort level after discounting the reserves at the current discount rate.

(4) As of December 31, 2024 and December 31, 2023, undiscounted expected future gross premiums were $ 21.4 billion and $ 18.7 billion, respectively.

As of December 31, 2024 and December 31, 2023, discounted expected future gross premiums were $ 14.3 billion and $ 13.5 billion, respectively.

(5) As of December 31, 2024 and December 31, 2023, undiscounted expected future policy benefits were $ 16.1 billion and $ 13.3 billion, respectively.

(6) The liability for future policyholder benefits includes immaterial businesses shown as reconciling items above, most of which are in run-off.

(7) $ 85 million and $ 72 million reported in Reinsurance recoverables in the Consolidated Balance Sheets as of December 31, 2024 and December 31, 2023, respectively, relate to the liability for future policy benefits.

Additionally, $ 80 million and $ 79 million of reinsurance recoverables are reported in assets of businesses held for sale in the Consolidated Balance Sheets as of December 31, 2024, and December 31, 2023, respectively.

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 years ended December 31, 2025 and December 31, 2024 were not material.

Other Operations

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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 includes deferred profit liability of $ 366 million and $ 384 million as of December 31, 2024 and December 31, 2023, respectively.

Future policy benefits for Other Operations include deferred profit liability of $ 347 million and $ 366 million as of December 31, 2025 and December 31, 2024, respectively.

As of December 31, 2025, December 31, 2024 and December 31, 2023, future policy benefits excluding deferred profit liability were $ 2.9 billion, $ 2.9 billion and $ 3.2 billion, respectively.

The decrease in future policy benefit reserves as of December 31, 2024 was primarily driven by benefit payments and current discount rate increases.

Undiscounted expected future policy benefits were $ 4.2 billion and $ 4.3 billion as of December 31, 2025 and December 31, 2024, respectively.

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

Approximately 38 % of the balance is reinsured externally as of both December 31, 2024 and December 31, 2023.

Approximately 37 % and 38 % of the balance is reinsured externally as of December 31, 2025 and December 31, 2024, respectively.

Activity in these liabilities is presented net of reinsurance in the Consolidated Statements of Cash Flows.

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

More than 99 % of the $ 4.0 billion liability, as of both December 31, 2024 and December 31, 2023, not reinsured externally is for contracts with guaranteed interest rates of 3 % - 4 %, and approximately $ 1.2 billion as of both December 31, 2024 and December 31, 2023, represented contracts with policies at the guarantee.

As of both December 31, 2024 and December 31, 2023, $ 1.2 billion was 50 - 150 basis points ("bps") above the guarantee and the remaining $ 1.6 billion represented contracts above the guarantee that pay the policyholder based on the greater of a guaranteed minimum cash value or the actual cash value.

More than 99 % of the $ 3.9 billion liability as of December 31, 2025 and the $ 4.0 billion liability as of December 31, 2024 not reinsured externally is for contracts with guaranteed interest rates of 3 % - 4 %, and approximately $ 1.2 billion represented contracts with policies at the guarantee for both period ends.

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

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These liabilities arise under annuities and riders to annuities written by ceding companies that guarantee the benefit received at death and, for a subset of policies, also provide contractholders the option, within 30 days of a policy anniversary after the appropriate waiting period, to elect minimum income payments.

The Company's capital market risk exposure on variable annuity reinsurance contracts arises when the reinsured guaranteed minimum benefit exceeds the contractholder's account value in the related underlying mutual funds at the time

the insurance benefit is payable under the respective contract.

The Company receives and pays premium periodically based on the terms of the reinsurance agreements.

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For the Years Ended December 31,

(Dollars in millions) 2024 2023

(In millions) 2025 2024

Balance, beginning of year $ 785 $ 1,003

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The net amount at risk is the amount that the Company would have to pay to contractholders if all deaths or annuitizations occurred as of the earliest possible date in accordance with the insurance contract.

As of December 31, 2024, the account value increased primarily due to favorable equity market performance, which resulted in a decrease to the net amount at risk.

As of December 31, 2025, the account value and net amount at risk decreased, reflecting a reduction in contractholders and favorable equity market performance.

The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded.

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Reinsurance does not relieve the originating insurer of liability.

Therefore, reinsured liabilities must continue to be reported along with the related reinsurance recoverables.

Therefore, reinsured

liabilities must continue to be reported along with the related reinsurance recoverables.

The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk.

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(2) Certified by a nationally recognized statistical ratings organization ("NRSRO").

(3) Comprised of 21 reinsurers of which 73 % is held by two reinsurers, Lincoln National Life Insurance Company and Lincoln Life and Annuity Company of New York.

(4) Includes $ 159 million of current reinsurance recoverables that are reported in Other current assets and $ 195 million of reinsurance recoverables classified as assets of businesses held for sale.

(3) Comprised of six reinsurers, of which 76 % is held by two reinsurers, Lincoln National Life Insurance Company and Lincoln Life and Annuity Company of New York.

(4) Includes $ 120 million of current reinsurance recoverables that are reported in Other current assets.

The Company entered into an agreement with Berkshire to effectively exit the variable annuity reinsurance business via a reinsurance transaction in 2013.

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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 at December 31, 2024.

The reinsurance agreement is subject to an overall limit, with approximately $ 3.0 billion remaining as of December 31, 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 December 31, 2024 and 2023, market risk benefits (shown in the table net of nonperformance risk as of December 31, 2024) are predominantly reinsured by Berkshire, which is rated AA+ by an NRSRO.

Approximately 95 % of the Berkshire recoverable is secured by assets in a trust.

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

As of December 31, 2025, approximately 100 % of the Berkshire recoverable is secured by assets in a trust.

Effects of Reinsurance

Total short-duration contract premiums (direct, assumed and ceded) were $ 43.9 billion, $ 42.3 billion and $ 36.9 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

Total long-duration contract premiums (direct, assumed and ceded) were $ 2.0 billion, $ 1.9 billion and $ 3.0 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

Net short-duration contract premiums (direct, assumed and ceded) were $ 39.3 billion, $ 43.9 billion and $ 42.3 billion for the years ended December 31, 2025, 2024 and 2023, respectively.

Net long-duration contract premiums (direct, assumed and ceded) were $ 1.0 billion, $ 2.0 billion and $ 1.9 billion for the years ended December 31, 2025, 2024 and 2023, respectively.

Reinsurance recoveries of $ 671 million, $ 573 million and $ 456 million as of December 31, 2025, 2024 and 2023, respectively, have been netted against Medical costs and other benefit expenses in the Company’s Consolidated Statements of Income.

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the amounts assumed and ceded were not material.

Total short-duration contract written premiums were $ 42.6 billion, $ 41.1 billion and $ 35.0 billion for the years ended December 31, 2024, 2023 and 2022, respectively.

Written premiums for short-duration contracts were not materially different from the recognized premium amounts.

Note 11 – Investments

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Accounting Policy.

Debt securities, commercial mortgage loans, derivative financial instruments and short-term investments with contractual maturities during the next 12 months are classified on the balance sheet as current investments, unless they are held as statutory deposits or restricted for other purposes and then they are classified as Long-term investments.

Equity securities may include funds that are used in our cash management strategy and are classified as current investments.

All other investments are classified as Long-term investments.

See Note 12 for information about the valuation of the Company's investment portfolio.

Debt securities, commercial mortgage loans, derivative financial instruments and short-term investments with contractual maturities during the next 12 months are classified on the balance sheet as current investments unless they are held as statutory deposits or restricted for other purposes, in which case they are classified as Long-term investments.

All other investments are classified as Long-term investments, with the exception of equity security funds that are used in our cash management strategy and are classified as current investments.

See Note 12 to the Consolidated Financial Statements for information about the valuation of the Company's investment portfolio.

Investment Portfolio

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Debt securities (including bonds, mortgage and other asset-backed securities, and preferred stocks redeemable by the investor) are classified as available for sale and are carried at fair value with changes in fair value recorded either in Accumulated other comprehensive loss within Shareholders' equity or in credit loss expense based on fluctuations in the allowance for credit losses, as further discussed below.

When the Company intends to sell or determines that it is more likely than not to be required to sell an impaired debt security, the excess of amortized cost over fair value is directly written down with a charge to Net investment losses.

Certain asset-backed securities are considered variable interest entities.

See Note 13 for additional information.

The Company reviews declines in fair value from a debt security's amortized cost basis to determine whether a credit loss exists and, when appropriate, recognizes a credit loss allowance with a corresponding charge to credit loss expense, presented in Net investment losses in the Company's Consolidated Statements of Income.

See Note 13 to the Consolidated Financial Statements for additional information.

The Company reviews declines in fair value from a debt security's amortized cost basis to determine whether a credit loss exists and, when appropriate, recognizes a credit loss allowance with a corresponding charge to credit loss expense, presented in Net investment gains/losses in the Company's Consolidated Statements of Income.

The allowance for credit loss represents the excess of amortized cost over the greater of its fair value or the net present value of the debt security's projected future cash flows (based on qualitative and quantitative factors, including the probability of default and the estimated timing and amount of recovery).

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The Company does not measure an allowance for credit losses for accrued interest receivables.

When interest payments are delinquent based on contractual terms or when certain terms (interest rate or maturity date) of the investment have been restructured, accrued interest, reported in Other current assets, is written off through a charge to Net investment income and interest income is recognized on a cash basis.

When interest payments are delinquent based on contractual terms or when certain terms (interest rate or maturity date) of the investment have been restructured, accrued interest, reported in Other current assets, is written off through a charge to Net investment income/losses and interest income is recognized on a cash basis.

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

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Equity securities with a readily determinable fair value consist primarily of public equity investments in the health care sector and mutual funds that invest in fixed income debt securities while those without a readily determinable fair value consist of private equity investments.

Changes in the fair values of equity securities that have a readily determinable fair value are reported in Net investment losses.

Changes in the fair values of equity securities that have a readily determinable fair value are reported in Net investment gains/losses.

Equity securities without a readily determinable fair value are carried at cost minus impairment plus or minus changes resulting from observable price changes.

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Total $ 6,870 $ 3,556 $ 3,850 $ 561

We are a minority owner in VillageMD, a provider of primary, multi-specialty and urgent care services that is majority-owned by Walgreens Boots Alliance, Inc.

These securities are included in equity securities with no readily determinable fair value in the above

We determined our investment in VillageMD was fully impaired and recorded a $ 2.7 billion loss in Net investment losses in the Company's Consolidated Statements of Income during the year ended December 31, 2024.

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

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Commercial mortgage loans are carried at unpaid principal balances, net of an allowance for expected credit losses, and classified as either current or long-term investments based on their contractual maturities.

Changes in the allowance for expected credit losses are recognized as credit loss expense and presented in Net investment losses in the Company's Consolidated Statements of Income.

Changes in the allowance for expected credit losses are recognized as credit loss expense and presented in Net investment gains/losses in the Company's Consolidated Statements of Income.

Each period, the Company establishes (or adjusts) its allowance for expected credit losses for commercial mortgage loans.

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Commercial mortgage loans are considered impaired and written off against the allowance when it is probable that the Company will not collect all amounts due per the terms of the promissory note.

In the event of a foreclosure, the allowance for credit losses is based on the excess of the carrying value of the mortgage loan over the fair value of its underlying collateral.

In situations involving foreclosure or the use of real estate operations to recover value, the allowance for credit losses is determined by the extent to which the mortgage loan’s carrying value exceeds the fair value of its underlying collateral.

Mortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type, location and borrower.

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Additionally, foreign currency swaps carried at fair value and certain restricted deposits are reported in the table below as "Other." See discussion below for information on the Company's accounting policies for derivative financial instruments.

Other long-term investments and related commitments are diversified by issuer, property type and geographic regions.

These investments are primarily unconsolidated variable interest entities (see Note 13 for additional information).

Other long-term investments and related commitments are diversified by issuer, property type and geographic region.

These investments are primarily unconsolidated variable interest entities (see Note 13 to the Consolidated Financial Statements for additional information).

The following table provides unfunded commitment and carrying value information for these investments.

The Company expects to disburse approximately 30 % of the committed amounts in 2026.

Our limited partnership investments are reduced as the Company receives cash distributions for returns on its investment that were previously recognized in Net investment income.

Our limited partnership investments are reduced as the Company receives cash distributions for returns on its investment that were previously recognized in Net investment income/losses.

The amount of these cash distributions was $ 314 million in 2025, $ 344 million in 2024 and $ 253 million in 2023.

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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.

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

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

Accounting Policy.

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Swap fair values are reported in Long-term investments or Other non-current liabilities.

Offsetting changes in fair values attributable to the foreign exchange risk of the swap contracts and the hedged bonds are reported in Net investment losses.

Offsetting changes in fair values attributable to the foreign exchange risk of the swap contracts and the hedged bonds are reported in Net investment gains/losses.

The portion of the swap contracts' changes in fair value excluded from the assessment of hedge effectiveness is recorded in Other comprehensive loss and recognized in Net investment

income as swap coupon payments are accrued, offsetting the foreign-denominated coupons received on the designated bonds.

income/losses as swap coupon payments are accrued, offsetting the foreign-denominated coupons received on the designated bonds.

Net cash flows are reported in Operating activities, while exchanges of notional principal amounts are reported in Investing activities.

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Fair value hedge - Foreign currency swap contracts

$ 975 $ 1,026

Fair value hedge - Interest rate swap contracts $ 3,150 $ 2,700

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(1) Includes a $ 182 million impairment of dividend receivable for the year ended December 31, 2024.

See the Equity Securities section of Note 11A to the Consolidated Financial Statements for additional information.

Investment Gains and Losses

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Net investment losses before income taxes were $ 24 million, $ 2,737 million and $ 78 million for the years ended December 31, 2025, 2024 and 2023, respectively.

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

Net investment losses in 2024 were primarily driven by the impairment of equity securities 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.

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.

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government bonds and exchange-listed equity securities.

A relatively small portion of the Company's investment assets are classified in this category given the narrow definition of Level 1 and the Company's investment asset strategy to maximize investment returns.

Level 2 Financial Assets and Financial Liabilities

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Derivative Assets and Liabilities classified in Level 2 represent over-the-counter instruments, such as foreign currency forward and swap contracts.

Fair values for these instruments are determined using market-observable inputs, including forward currency and interest rate curves and widely published market-observable indices.

Fair values for these instruments are determined using market-observable inputs, including forward currency and

interest rate curves and widely published market-observable indices.

Credit risk related to the counterparty and the Company is considered when estimating the fair values of these derivatives.

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Unobservable inputs reflect the Company's best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date.

Additionally, as discussed in Note 9E to the Consolidated Financial Statements, the Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy.

Additionally, as discussed in Note 9E, the Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy.

The Company classifies certain newly issued, privately placed, complex or illiquid securities in Level 3.

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Recent trades in the subject security or similar securities are assessed when available, and the Company may also review published research in its evaluation, as well as the issuer's financial statements.

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) December 31, 2024 December 31, 2023 Unobservable Input December 31, 2024 December 31, 2024 December 31, 2023

(Fair value in millions) December 31,

2025 December 31,

2024 Unobservable Input

December 31, 2025

2025 December 31,

Debt securities

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Total Level 3 debt securities $ 325 $ 417

Information about Derivative Instruments.

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

The estimation of enterprise value is derived from a discounted cash flow model utilizing management's forecasts and industry benchmarks.

The significant unobservable Level 3 measurement inputs used as of December 31, 2025 are:

volatility of adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") ( 55 %), volatility of equity ( 85 %), correlation ( 35 %), purchaser credit spread ( 0.7 %) and weighted average cost of capital ( 13.5 %).

Changes in these assumptions could increase or decrease the fair value measurements.

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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(In millions) 2025 2024

Debt Securities

Beginning balance $ 417 $ 447

Losses included in Shareholders' net income

(Losses) gains included in Other comprehensive loss

( 90 ) ( 69 )

Gains (losses) included in Other comprehensive loss

Purchases, sales and settlements

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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 in the tables above are reflected in the Consolidated Statements of Income as Net investment losses and Net investment income.

Gains and losses included in Other comprehensive loss, net of tax in the tables above are reflected in Net unrealized appreciation (depreciation) on securities and derivatives in the Consolidated Statements of Comprehensive Income.

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

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

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Fees and charges earned for mortality risks, asset management or administrative services are reported in either Premiums or Fees and other revenues.

Investments that are measured using the practical expedient of net asset value ("NAV") are excluded from the fair value hierarchy.

The separate account activity for the year ended December 31, 2024 and 2023 was primarily driven by changes in the market values of the underlying separate account investments.

Investments that are measured using the practical expedient of net asset value are excluded from the fair value hierarchy.

The separate account activity for the years ended December 31, 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) December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023

(In millions) December 31,

2025 December 31,

2024 December 31,

2025 December 31,

2024 December 31,

2025 December 31,

2024 December 31,

2025 December 31,

Guaranteed separate accounts (see Note 22)

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Subtotal $ 518 $ 498 $ 6,099 $ 5,920 $ 209 $ 228 6,826 6,646

Non-guaranteed separate accounts priced at NAV as a practical expedient (1)

Non-guaranteed separate accounts priced at net asset value as a practical expedient (1)

Total $ 7,487 $ 7,278

(1) Non-guaranteed separate accounts include $ 3.8 billion as of December 31, 2024 and $ 4.0 billion as of December 31, 2023 in assets supporting the Company's pension plans, including $ 0.2 billion classified in Level 3 both as of December 31, 2024 and December 31, 2023.

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

Separate account assets classified in Level 1 primarily include exchange-listed equity securities.

Level 2 assets primarily include corporate and structured bonds valued using recent trades of similar securities or pricing models that discount future cash flows at estimated market interest rates, as described above, and actively traded institutional and retail mutual fund investments.

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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.

During 2024, we determined our investment in VillageMD was fully impaired and recorded a $ 2.7 billion loss in Net investment losses in the Company's Consolidated Statements of Income.

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

Observable price changes for equity securities with no readily determinable fair value were not material for the year ended December 31, 2024 and December 31, 2023.

For the year ended December 31, 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 years ended December 31, 2025 or December 31, 2024.

Fair Value Disclosures for Financial Instruments Not Carried at Fair Value

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Our noncontrolling interest in each of these limited partnerships is generally less than 9 % of the partnership ownership interests.

See Note 11 for further information on the Company's accounting policy for other long-term investments.

See Note 11 to the Consolidated Financial Statements for further information on the Company's accounting policy for other long-term investments.

The Company has guaranteed debt payments to mortgage lenders for certain real estate limited partnerships should potential environmental obligations arise.

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Other Variable Interest Entities .

The Company is involved in other types of variable interest entities, including certain asset-backed and corporate securities, real estate joint ventures that develop properties for residential and commercial use, independent physician associations that provide care management services, and international health care joint ventures.

As of December 31, 2025, the Company's maximum exposure to loss is $ 0.4 billion from certain asset-backed and corporate securities and $ 1.0 billion from real estate joint ventures, which represents the sum of our carrying value and the additional funding commitments for these entities.

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Operating joint ventures had a carrying value of $( 211 ) million as of December 31, 2025 and $ 656 million as of December 31, 2024, of which $( 296 ) million as of December 31, 2025 and $ 43 million as of December 31, 2024 related to our joint venture in China.

Total Accumulated Other Comprehensive Income (Loss) ("AOCI") includes losses of $ 979 million as of December 31, 2024 and $ 510 million as of December 31, 2023 related to the Company's share of operating joint ventures primarily driven by the requirement to update discount rate assumptions for certain long-duration liabilities.

The carrying value of our joint venture in China includes the Company's share of Accumulated Other Comprehensive Income (Loss) ("AOCI") losses of $ 1,672 million as of December 31, 2025 and $ 979 million as of December 31, 2024, primarily related to the requirement to update discount rate assumptions for certain long-duration liabilities as well as the impact of unrealized investment gains and losses.

For the years ended December 31, 2025, 2024 and 2023, none of our equity method investments were individually significant.

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Revenues $ 7,747 $ 7,309 $ 5,962

Net income (loss) $ 607 $ 98 $ ( 12 )

$ 755 $ 607 $ 98

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

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Note 15 – Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss) includes net unrealized appreciation (depreciation) on securities and derivatives, change in discount rate and instrument-specific credit risk for certain long-duration insurance contractholder liabilities (Note 9 to the Consolidated Financial Statements), foreign currency translation, and the net postretirement benefits liability adjustment.

AOCI includes 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 years ended 2024, 2023 and 2022 is primarily attributable to the change in discount rates for certain long-duration liabilities and unrealized changes in the market values of securities and derivatives, including the impacts from unconsolidated entities reported on the equity method.

Shareholders' other comprehensive loss, net of tax, for the years ended December 31, 2025, 2024 and 2023 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:

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Beginning balance $ 832 $ 171 $ ( 332 )

Unrealized appreciation (depreciation) on securities and derivatives, before reclassification, net of tax (expense) benefit of $( 207 ), $( 146 ) and $ 467 , respectively

Unrealized (depreciation) appreciation on securities and derivatives, before reclassification, net of tax benefit (expense) of $ 118 , $( 207 ) and $( 146 ), respectively

( 309 ) 601 474

Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 20 ), $( 16 ) and $( 8 ), respectively

Other comprehensive income (loss), net of tax

Shareholders' other comprehensive (loss) income, net of tax

( 238 ) 661 503

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Beginning balance $ ( 2,038 ) $ ( 971 ) $ ( 256 )

Net current period change in discount rate for certain long-duration liabilities, net of tax benefit (expense) of $ 357 , $ 222 and $( 122 ), respectively

Net current period change in discount rate for certain long-duration liabilities, before reclassification, net of tax benefit of $ 71 , $ 357 and $ 222 , respectively

( 225 ) ( 1,044 ) ( 691 )

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 $ 87 , $ 357 and $ 222 , respectively

( 281 ) ( 1,044 ) ( 691 )

Net current period change in instrument-specific credit risk for market risk benefits, net of tax benefit of $ 3 , $ 6 and $ 5 , respectively

( 10 ) ( 23 ) ( 24 )

Other comprehensive (loss) income, net of tax

Shareholders' other comprehensive (loss), net of tax

( 291 ) ( 1,067 ) ( 715 )

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Beginning balance $ ( 198 ) $ ( 149 ) $ ( 154 )

Net translation of foreign currencies, before reclassification, net of tax benefit (expense) of $ 2 , $ 5 and $( 33 ), respectively

( 60 ) 5 ( 310 )

Net translation of foreign currencies, before reclassification, net of tax (expense) benefit of $( 9 ), $ 2 and $ 5 , respectively

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

Other comprehensive (loss) income, net of tax

Net translation (loss) on foreign currencies attributable to noncontrolling interests — — ( 2 )

Shareholders' other comprehensive (loss) income, net of tax

Shareholders' other comprehensive income (loss), net of tax

Ending balance $ ( 127 ) $ ( 198 ) $ ( 149 )

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Amounts reclassified to Shareholders' net income, net of tax (benefit) of $( 8 ), $( 7 ) and $( 11 ), respectively

Net change due to valuation update, before reclassification, net of tax benefit (expense) of $ 14 , $ 12 and $( 115 ), respectively

Net change due to valuation update, before reclassification, net of tax benefit of $ 9 , $ 14 and $ 12 , respectively

( 32 ) ( 44 ) ( 34 )

Other comprehensive (loss) income, net of tax

Shareholders' other comprehensive (loss) income, net of tax

( 7 ) ( 22 ) 1

Ending balance $ ( 944 ) $ ( 937 ) $ ( 915 )

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Ending balance $ ( 2,806 ) $ ( 2,341 ) $ ( 1,864 )

Note 16 – Strategic Optimization Program

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.

At commencement, this program was expected to continue through December 2026;

however, the Company is continuing to evaluate additional opportunities and expects that the program will continue through 2028.

The program 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 year ended December 31, 2025, we reported total costs of $ 749 million pre-tax ($ 565 million after-tax) associated with this initiative.

The total costs included $ 616 million, pre-tax in Selling, general and administrative expenses which were primarily associated with severance ($ 378 million) and asset impairments ($ 101 million).

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

We expect substantially all of the accrued liability to be paid by the end of 2026.

See Note 23 to the Consolidated Financial Statements for further details of the strategic optimization program by segment.

The following table presents a roll forward of the accrued liability recorded in Accrued expenses and other liabilities during the year ended December 31, 2025:

(In millions)

Balance, December 31, 2024

2025 payments

Balance, December 31, 2025

Note 17 – Pension

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Interest cost 196 194

Actuarial (gains) losses, net (1)

Actuarial losses (gains), net (1)

Benefits paid from plan assets ( 309 ) ( 328 )

( 12 ) ( 18 )

Benefit obligation, December 31 3,630 3,643

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Amounts presented in Consolidated Balance Sheets

(1) 2024 gains reflect an increase in the discount rate, while 2023 losses reflect a decrease in the discount rate.

(1) 2025 losses reflect a decrease in the discount rate, while 2024 gains reflect an increase in the discount rate.

We fund our qualified pension plans at least at the minimum amount required by the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006.

The Company made immaterial contributions to the qualified pension plans in 2024.

For 2025, contributions to the qualified pension plans are expected to be immaterial.

Contributions made by the Company to the qualified pension plan in 2025 and anticipated contributions for 2026 are immaterial.

Future years' contributions will ultimately be based on a wide range of factors, including but not limited to asset returns, discount rates and funding targets.

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Cost of Our Plans

Net pension cost was as follows:

Net pension cost (benefit) was as follows:

For the Years Ended December 31,

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Curtailment loss — 1 —

Net (benefit) cost $ ( 12 ) $ 53 $ ( 41 )

Net cost (benefit) $ 2 $ ( 12 ) $ 53

Assumptions Used for Pension

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The Company will evaluate further allocation changes to equity securities, other investments and fixed-income securities as funding levels change.

See Note 12 for further details regarding how fair value is determined, including the level within the fair value hierarchy and the procedures we use to validate fair value measurements.

See Note 12 to the Consolidated Financial Statements for further details regarding how fair value is determined, including the level within the fair value hierarchy and the procedures we use to validate fair value measurements.

The Company classifies substantially all debt securities in Level 2 for pension plan assets.

These assets are valued using recent trades of similar securities or are fund investments priced using their daily net asset value that is the exit price.

All domestic equity securities and international equity funds within pension assets are classified as Level 3.

All domestic equity securities and international equity funds within pension assets are classified in Level 3.

Securities partnerships, real estate and hedge funds are valued using net asset value as a practical expedient and are excluded from the fair value hierarchy.

See Note 12 for additional disclosures related to these assets invested in the separate accounts of the Company's subsidiary.

Certain securities as described in Note 12, as well as commercial mortgage loans and guaranteed deposit account contracts, are classified in Level 3 because unobservable inputs used in their valuation are significant.

See Note 12 to the Consolidated Financial Statements for additional disclosures related to these assets invested in the separate accounts of the Company's subsidiary.

Certain securities as described in Note 12 to the Consolidated Financial Statements, as well as commercial mortgage loans and guaranteed deposit account contracts, are classified in Level 3 because unobservable inputs used in their valuation are significant.

The Company sponsors a 401(k) plan.

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Options exercisable at year-end 3,806 $ 216.90 3,941 $ 196.01 4,616 $ 179.28

Compensation expense of $ 69 million related to unvested stock options at December 31, 2024 will be recognized over the next two years (weighted average period).

Compensation expense of $ 62 million related to unvested stock options as of December 31, 2025 will be recognized over the next two years (weighted average period).

The table below summarizes information for stock options exercised:

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Fair value of restricted stock awards is equal to the market price of The Cigna Group common stock on the date of grant.

This fair value is reduced by awards that are expected to forfeit.

This fair value is reduced by awards that are expected to be forfeited.

At the grant date, the Company estimates forfeitures based on experience and adjusts the expense to reflect actual forfeitures over the vesting period.

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$ 35,130 $ 9,129 $ 44,259

Goodwill transferred to assets of businesses held for sale (1)

— ( 1,553 ) ( 1,553 )

Goodwill acquired 114 — 114

Impact of foreign currency translation and other adjustments 190 ( 193 ) ( 3 )

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$ 35,982 $ 8,942 $ 44,924

(1) See Note 5 to the Consolidated Financial Statements for further discussion of 2024 and 2023 goodwill impairments.

Other Intangible Assets

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The fair value of purchased customer relationships and the amortization method were determined as of the dates of purchase using an income approach that relies on projected future net cash flows, including key assumptions for customer attrition and discount rates.

The Company's definite-lived intangible assets are amortized on an accelerated or straight-line basis, reflecting their pattern of economic benefits, over periods from 6 to 30 years.

The Company's definite-lived intangible assets are amortized on an accelerated or straight-line basis, reflecting their pattern of economic benefits, over periods from 1 year to 30 years.

Management revises amortization periods if it believes there has been a change in the length of time that an intangible asset will continue to have value.

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Other 346 155 191

Other intangible assets (1)

38,687 9,250 29,437

Value of business acquired ("VOBA" reported in Other assets) (2)

Total 39,370 10,810 28,560

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38,687 9,250 29,437

Value of business acquired (reported in Other assets) (2)

Value of business acquired ("VOBA") (reported in Other assets) (2)

Total $ 38,898 $ 9,392 $ 29,506

(1) Includes $ 20 million and $ 77 million of Other intangible assets classified as assets of businesses held for sale as of December 31, 2024 and December 31, 2023, respectively.

(2) Includes $ 69 million of VOBA classified as assets of businesses held for sale as of both December 31, 2024 and December 31, 2023.

The Company has indefinite-lived intangible assets totaling $ 8.5 billion at both December 31, 2024 and December 31, 2023, largely consisting of the Express Scripts trade name.

(1) Includes $ 20 million of Other intangible assets classified as assets of businesses held for sale as of December 31, 2024.

(2) Includes $ 69 million of VOBA classified as assets of businesses held for sale as of December 31, 2024.

The Company has indefinite-lived intangible assets totaling $ 8.4 billion as of December 31, 2025 and $ 8.5 billion as of December 31, 2024, largely consisting of the Express Scripts trade name.

Property and Equipment

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Components of Property and Equipment.

Property and equipment was comprised of the following:

Property and equipment were comprised of the following:

(In millions) Cost Accumulated Amortization Net Carrying Value

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Total property and equipment 13,753 10,102 3,651

13,410 9,454 3,956

December 31, 2024

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13,410 9,454 3,956

(1) Includes $ 302 million and $ 176 million of Property and equipment net carrying value classified as assets of businesses held for sale as of December 31, 2024 and December 31, 2023 , respectively.

(1) Includes $ 302 million of Property and equipment net carrying value classified as assets of businesses held for sale as of December 31, 2024.

Components of Depreciation and Amortization.

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The liabilities for uncertain tax positions are classified as current when the position is expected to be settled within 12 months or the statute of limitation expires within 12 months.

Income taxes attributable to the Company's foreign operations are generally provided using the respective foreign jurisdictions' tax rate.

Income taxes attributable to the Company's foreign operations are provided using the foreign jurisdictions' applicable tax rate.

The Company prospectively adopted ASU 2023-09, Improvements to Income Tax Disclosures .

As a result, disclosures for 2025 reflect the requirements of ASU 2023-09, including the reconciliation of the statutory federal income tax rate and disaggregated tax payment information.

Prior years (2024 and 2023) are presented under the previous disclosure requirements.

Income Tax Expense

14 unchanged sentences

( 52 ) ( 17 ) ( 80 )

Total deferred tax benefits

Total deferred taxes (tax benefits)

326 ( 95 ) ( 1,659 )

Total income taxes $ 1,493 $ 1,491 $ 141

Total income taxes were different from the amount computed using the nominal federal income tax rate for the following reasons:

Total income taxes were different from the amount computed using the statutory federal income tax rate in 2025 for the following reasons:

For the Year Ended December 31,

(in millions) $ %

Tax expense at statutory rate $ 1,634 21.0 %

State income tax effect, net of federal income tax effect (1)

Nontaxable or nondeductible items 13 0.2

Effects of cross-border tax laws:

Global intangible low-taxed income ("GILTI") 127 1.6

Other cross-border tax laws 11 0.1

Tax credits ( 83 ) ( 1.1 )

Change in valuation allowance ( 74 ) ( 1.0 )

Change in unrecognized tax benefits 37 0.5

Impact of sale of business ( 173 ) ( 2.2 )

Tax equity investments ( 102 ) ( 1.3 )

Other reconciling items 3 0.2

Foreign tax effects:

Effect of rates different than U.S.

statutory ( 360 ) ( 4.6 )

Cantonal income taxes 206 2.6

Change in valuation allowance 384 4.9

Other countries ( 223 ) ( 2.9 )

Total income taxes $ 1,493 19.2 %

(1) The jurisdictions that make up the majority (greater than 50 percent) of the state and local tax impact are Florida and California.

Total income taxes were different from the amount computed using the statutory federal income tax rate in 2024 and 2023 for the following reasons:

For the Years Ended December 31,

2024 2023 2022

(In millions) $ % $ %

Tax expense at nominal rate $ 1,107 21.0 % $ 1,158 21.0 % $ 1,763 21.0 %

Tax expense at statutory rate $ 1,107 21.0 % $ 1,158 21.0 %

Change in valuation allowance 767 14.6 1,290 23.4

State income tax (benefit), net of federal income tax benefit

62 1.2 ( 39 ) ( 0.7 ) 16 0.2

State income tax effect, net of federal income tax effect 62 1.2 ( 39 ) ( 0.7 )

Investment tax credits ( 111 ) ( 2.1 ) ( 48 ) ( 0.8 )

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Swiss tax attributes — — ( 1,674 ) ( 30.4 )

Impact of sale of businesses — — — — ( 37 ) ( 0.4 )

Other 47 0.9 ( 7 ) ( 0.1 )

Total income taxes $ 1,491 28.3 % $ 141 2.6 %

Consolidated pre-tax income from the Company's foreign operations was approximately 62 % of the Company's pre-tax income in 2024, 48 % in 2023 and 46 % in 2022.

The increase over 2023 is primarily attributable to a reduction in domestic earnings driven by the current-year impairment of equity securities (discussed below).

Investment Tax Credits.

Tax Equity Investments.

Company investments in renewable energy projects provided $ 968 million, $ 1,057 million and $ 453 million of investment tax credits for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company accounted for the tax credits using the deferral method and accordingly reduced the associated carrying value of the related assets by these amounts.

Impairment of Equity Securities .

In 2024, the Company recorded a deferred tax benefit of $ 636 million and an equal amount of valuation allowance in connection with the impairment of equity securities.

The valuation allowance had the effect of increasing the Company's effective tax rate.

Pre-tax Income Disaggregation.

Consolidated pre-tax income from the Company's foreign operations was approximately 53 % of the Company's pre-tax income in 2025, 62 % in 2024 and 48 % in 2023.

The change relative to 2024 is primarily attributable to lower 2024 domestic earnings driven by the impairment of equity securities in 2024 (see Note 11 to the Consolidated Financial Statements).

Deferred Income Taxes

22 unchanged sentences

$ ( 6,686 ) $ ( 6,082 )

(1) Deferred tax liabilities, net in the Consolidated Balance Sheets as of December 31, 2024, excludes $ 954 million reported in Other assets and $ 61 million reported in liabilities of businesses held for sale.

Deferred tax liabilities, net in the Consolidated Balance Sheets as of December 31, 2023, excludes $ 1,055 million reported in Other assets and $ 69 million reported in liabilities of businesses held for sale.

Management believes that future results will be sufficient to realize the Company's gross deferred tax assets ("DTAs") that remain after valuation allowance.

(1) Deferred tax liabilities, net in the Consolidated Balance Sheets excludes $ 459 million and $ 954 million reported in Other assets as of December 31, 2025 and December 31, 2024, respectively, and $ 61 million reported in liabilities of businesses held for sale as of December 31, 2024.

Management believes that it is more likely than not that future results will be sufficient to realize the Company's gross deferred tax assets ("DTAs") that remain after valuation allowance.

Valuation allowances have been established against certain federal, state and foreign tax attributes.

There are multiple expiration dates associated with these tax attributes.

As of December 31, 2024, the Company had approximately $ 880 million in DTAs associated with the impairment of equity securities and other unrealized investment losses (See Note 11).

As discussed above, a valuation allowance of $ 636 million has been established against the DTAs related to the impairment of equity securities.

We have determined that a valuation allowance against the remaining DTAs is not currently required based on the Company's loss carryback capacity and ability and intent to hold certain investment securities until recovery.

Foreign Jurisdiction Tax Attributes.

As of both December 31, 2024 and 2023, the Company had DTAs of approximately $ 1.8 billion associated with foreign tax law changes and agreements in certain tax jurisdictions and a related $ 772 million valuation allowance against these deferred tax assets based on projections of future earnings and requirements to utilize the assets within certain time periods.

It is possible in future periods that the Company may revalue these net deferred tax assets due to modifications in certain assumptions, such as forecasted future earnings.

Sale of Medicare Advantage and Related Businesses .

As of December 31, 2024 and 2023, the Company has recorded $ 773 million and $ 584 million, respectively, of deferred tax benefits and a valuation allowance of $ 715 million and $ 584 million, respectively, in connection with the HCSC transaction.

The valuation allowance has been recorded due to the uncertainty relative to the recovery of the deferred tax benefits as the Company does not anticipate having capital gain capacity to offset these capital losses.

As of December 31, 2025 and 2024, the Company had DTAs of approximately $ 1.6 billion and $ 1.8 billion, respectively, and had a related $ 1.2 billion and $ 0.8 billion valuation allowance, respectively, against these deferred tax assets based on projections of future earnings and requirements to utilize the assets within certain time periods.

In 2025, the Company recorded an increase to the valuation allowance as a result of management's reassessment of the composition of future foreign and domestic earnings.

It is possible that the Company may revalue these net deferred tax assets in future periods due to modifications in certain assumptions, such as forecasted future earnings.

Capital DTAs:

Impairments, Unrealized Investment Losses and Sale of Medicare Advantage and Related Businesses .

As of December 31, 2025 and 2024, the Company had approximately $ 819 million and $ 880 million, respectively, in DTAs associated with the impairment of equity securities and other unrealized investment losses (see Note 11 to the Consolidated Financial Statements), as well as $ 237 million and $ 773 million, respectively, of DTAs in connection with the HCSC transaction, reflecting total capital DTAs of approximately $1,056 million and $1,653 million, respectively.

A valuation allowance of $ 1,025 million and $ 1,351 million, respectively, has been established against these DTAs as of December 31, 2025 and 2024 due to the uncertainty relative to the recovery of the deferred tax benefits as the Company does not anticipate having sufficient sources of capital income to support these capital losses.

We have determined that a valuation allowance against the remaining capital DTAs is not currently required based on the Company's loss carryback capacity and ability and intent to hold certain investment securities until recovery.

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

During 2025, the reallocation of the HCSC transaction purchase price by legal entity resulted in an equal write-off of the DTAs and valuation allowance associated with the tax-deductible capital loss on the sale, resulting in zero net impact to the Company's total tax provision.

Additionally, a reallocation of available sources of capital income generated a substantial portion of the after-tax gain on sale presented in Note 5 to the Consolidated Financial Statements.

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 as a result of this reallocation.

Uncertain Tax Positions

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Balance at January 1, $ 1,477 $ 1,399 $ 1,343

(Decrease) increase due to prior year positions ( 7 ) ( 26 ) 8

Decrease due to prior year positions

( 50 ) ( 7 ) ( 26 )

Increase due to current year positions

Reduction related to settlements with taxing authorities

( 62 ) ( 22 ) ( 13 )

Reduction related to lapse of applicable statute of limitations

( 14 ) ( 58 ) ( 12 )

Balance at December 31, $ 1,538 $ 1,477 $ 1,399

1 unchanged sentence

The Company classifies net interest expense on uncertain tax positions as a component of income tax expense and in Other non-current liabilities in the Consolidated Balance Sheets.

In addition to the amounts in the table above, the liability for net interest expense on uncertain tax positions was approximately $ 228 million, $ 220 million and $ 176 million as of December 31, 2024, December 31, 2023 and December 31, 2022, respectively.

In addition to the amounts in the table above, the liability for net interest expense on uncertain tax positions was approximately $ 223 million, $ 228 million and $ 220 million as of December 31, 2025, 2024 and 2023, respectively.

Other Tax Matters

The statutes of limitations for the Company's consolidated federal income tax returns through 2016 have closed.

The statute of limitations for the Company's 2020 tax return has also closed.

The statute of limitations for the Company's 2020 and 2021 tax returns have also closed.

However, The Cigna Group filed amended returns for both the 2015 and 2016 tax years, which are under review by the Internal Revenue Service ("IRS").

Additionally, the IRS is examining the Company's returns for 2017, 2018, 2019, 2022 and 2023.

The IRS has examined Express Scripts' tax returns for 2010 through 2018, for which there remains significant disputed matters.

The IRS has examined Express Scripts' tax returns for 2010 through 2017, for which there remain significant disputed matters.

In addition, the Company has pending refund claims for various years.

2 unchanged sentences

Generally, no further state or foreign audit activity is expected for tax years prior to 2013 for Express Scripts entities and 2014 for all other entities of The Cigna Group.

On December 15, 2022, the European Union ("EU") Member States formally adopted the EU's Pillar Two Directive, which generally provides for a minimum effective tax rate of 15%, as established by the Organization for Economic Co-operation and Development ("OECD") Pillar Two Framework that was supported by over 130 countries worldwide.

The EU effective dates are January 1, 2024 and January 1, 2025, for different aspects of the directive.

A significant number of other countries are also implementing similar legislation, and the OECD continues to release additional guidance on these rules.

The Company is within the scope of the OECD Pillar Two model rules and continues to evaluate the potential impact on future periods of the Pillar Two Framework.

The Organization for Economic Co-operation and Development ("OECD") Pillar Two Framework defines a minimum effective tax rate of 15%.

The Company is within the scope of the OECD Pillar Two model rules, which did not have a significant impact on our 2025 results.

We will continue to monitor the potential impact on future periods but do not currently expect Pillar Two to significantly impact future periods.

Income Taxes Paid

For the year ended December 31, 2025, the Company made tax payments, net of refunds, in the amount of $ 399 million to the following jurisdictions:

federal refund ($ 4 million), U.S.

state payment ($ 140 million), and foreign payments ($ 263 million), primarily Switzerland.

The Company’s federal tax payments reflect the benefit of $ 968 million of renewable energy tax credits, which have been applied against the Company’s federal tax liability under existing tax rules.

For the years ended December 31, 2024 and 2023, the company made tax payments, net of refunds in the amount of $ 898 million and $ 1,471 million, respectively.

For the years ended December 31, 2024 and 2023, the Company’s federal tax payments reflect the benefit of $ 1,057 million and $ 453 million, respectively, of renewable energy tax credits, which were applied against the Company’s federal tax liability under existing tax rules.

Note 22 – Contingencies and Other Matters

31 unchanged sentences

If the Company can reasonably estimate the cost to defend, a liability for these costs is accrued when the claim is reported.

Pending litigation and legal or regulatory matters that the Company has identified with a reasonably possible material loss and certain other material litigation matters are described below.

For those matters that the Company has identified with a reasonably possible material loss, the Company provides disclosure in the aggregate of accruals and range of loss, or a statement that such information cannot be estimated.

The Company's accrual for the matter discussed below under "Litigation Matters" is not material.

Due to numerous uncertain factors presented in this case, it is not possible to estimate an aggregate range of loss (if any) for this matter at this time.

In light of the uncertainties involved in this matter, there is no assurance that its ultimate resolution will not exceed the amount currently accrued by the Company.

An adverse outcome in this matter could be material to the Company's results of operations, financial condition or liquidity for any particular period.

The outcomes of lawsuits are inherently unpredictable and we may be unsuccessful in this ongoing litigation matter or any future claims or litigation.

Litigation Matters

Express Scripts Litigation with Elevance .

In March 2016, Elevance Health, Inc.

("Elevance") filed a lawsuit in the United States District Court for the Southern District of New York alleging various breach of contract claims against Express Scripts relating to the parties' rights and obligations under the periodic pricing review section of the pharmacy benefit management agreement between the parties, including allegations that Express Scripts failed to negotiate new pricing concessions in good faith, as well as various alleged service issues.

Elevance also requested that the court enter declaratory judgment that Express Scripts is required to provide Elevance competitive benchmark pricing, that Elevance can terminate the agreement, and that Express Scripts is required to provide Elevance with post-termination services at competitive benchmark pricing for one year following any termination by Elevance.

Elevance claimed it is entitled to $ 13 billion in additional pricing concessions over the remaining term of the agreement, as well as $ 1.8 billion for one year following any contract termination by Elevance and $ 150 million damages for service issues ("Elevance's Allegations").

On April 19, 2016, in response to Elevance's complaint, Express Scripts filed its answer denying Elevance's Allegations in their entirety and asserting affirmative defenses and counterclaims against Elevance.

The court subsequently granted Elevance's motion to dismiss two of six counts of Express Scripts' amended counterclaims.

Express Scripts filed its Motion for Summary Judgment on

August 27, 2021.

Elevance completed filing of its Response to Express Scripts' Motion for Summary Judgment on October 16, 2021.

Express Scripts filed its Reply in Support of its Motion for Summary Judgment on November 19, 2021.

On March 31, 2022, the court granted summary judgment in favor of Express Scripts on all of Elevance's pricing claims for damages totaling $ 14.8 billion and on most of Elevance's claims relating to service issues.

Elevance's only remaining service claims relate to the review or processing of prior authorizations, with alleged damages over $ 100 million.

On November 1, 2023, the parties signed a settlement agreement pursuant to which Express Scripts agreed to resolve the service-related claims.

The settlement agreement is not an admission of liability or fault by Express Scripts, the Company or its subsidiaries.

Following the settlement, Elevance retained the right to appeal the pricing-related claims that were previously dismissed by the court, and Express Scripts retained the ability to reassert its own pricing-related claims in the event any appeal by Elevance is successful.

Elevance filed its Notice of Appeal of its pricing-related claims on December 12, 2023.

Elevance filed its opening appellate brief on April 24, 2024.

Express Scripts filed its answering appellate brief on July 24, 2024.

The Second Circuit held oral arguments on Elevance's appeal on October 22, 2024.

On October 31, 2024, the Second Circuit released a unanimous opinion summarily affirming the district court's entry of summary judgment in favor of Express Scripts.

Elevance filed a petition for rehearing en banc on November 14, 2024;

the petition was denied on December 19, 2024.

Note 23 – Segment Information

2 unchanged sentences

Intersegment revenues primarily reflect pharmacy and care services transactions between the Evernorth Health Services and Cigna Healthcare segments.

The Chairman and Chief Executive Officer is the chief operating decision maker ("CODM") responsible for making decisions about resources to be allocated to the segment and assessing its performance.

The Chairman and Chief Executive Officer is the chief operating decision maker ("CODM") responsible for making decisions about resources to be allocated to each segment and assessing its performance.

The Company uses "pre-tax adjusted income (loss) from operations" and "adjusted revenues" as its principal financial measures of segment operating performance because management, including the CODM, believes these metrics reflect the underlying results of business operations and facilitate analysis of trends in underlying revenue, expenses and profitability to enable resource allocation decisions.

12 unchanged sentences

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

Strategic optimization program

(primarily Selling, general and administrative expenses)

$ 749 $ 565 $ — $ — $ — $ —

Deferred tax expenses (benefits), net

(Income taxes, less amount attributable to noncontrolling interests)

— 427 — 84 — ( 1,071 )

Integration and transaction-related costs

(Selling, general and administrative expenses)

327 247 275 211 45 35

(Benefits) charges associated with litigation matters

(Selling, general and administrative expenses)

( 17 ) ( 13 ) — — 201 171

Net (gain) loss on sale of businesses

( 13 ) ( 404 ) ( 24 ) ( 2 ) 1,499 1,429

Impairment of dividend receivable

(Net investment income)

Deferred tax expenses (benefits), net

(Income taxes, less amount attributable to noncontrolling interests) — 84 — ( 1,071 ) — —

Net (gain) loss on sale of businesses ( 24 ) ( 2 ) 1,499 1,429 ( 1,662 ) ( 1,332 )

— — 182 138 — —

Charge for organizational efficiency plan

(Selling, general and administrative expenses)

Charges (benefits) associated with litigation matters

(Selling, general and administrative expenses) — — 201 171 ( 28 ) ( 20 )

— — — — 252 193

Total impact from special items $ 1,046 $ 822 $ 433 $ 431 $ 1,997 $ 757

11 unchanged sentences

— ( 249 ) — — ( 249 )

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

Adjusted revenues $ 234,953 $ 47,163 $ 674 $ ( 8,139 ) $ 274,651

4 unchanged sentences

Interest (expense) and other ( 1 ) 9

Less income attributable to noncontrolling interests 405 —

Income attributable to noncontrolling interests 475 —

Pre-tax adjusted income (loss) from operations 7,221 4,153 89 ( 1,593 ) 9,870

4 unchanged sentences

( 475 ) — — — ( 475 )

Net investment losses (2)

Net investment (gains) losses (2)

( 20 ) ( 210 ) 2 3 ( 225 )

1 unchanged sentence

Special items

Strategic optimization program

174 22 133 420 749

Integration and transaction-related costs

Impairment of dividend receivable 182 — — — 182

(Gain) loss on sale of businesses ( 496 ) 472 — — ( 24 )

— — — 327 327

Net (gain) on sale of businesses

( 4 ) ( 9 ) — — ( 13 )

(Benefits) associated with litigation matters

— ( 17 ) — — ( 17 )

Pre-tax adjusted income (loss) from operations $ 7,221 $ 4,153 $ 89 $ ( 1,593 ) $ 9,870

13 unchanged sentences

Net investment results from certain equity method investments — ( 204 ) — — ( 204 )

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

Adjusted revenues $ 202,155 $ 52,914 $ 828 $ ( 8,798 ) $ 247,099

4 unchanged sentences

Interest (expense) and other ( 2 ) 7

Less income attributable to noncontrolling interests 144 2

Income attributable to noncontrolling interests 405 —

Pre-tax adjusted income (loss) from operations 7,001 4,229 ( 9 ) ( 1,688 ) 9,533

9 unchanged sentences

Integration and transaction-related costs

Loss on sale of businesses

— — — 275 275

Charge for organizational efficiency plan

Impairment of dividend receivable

182 — — — 182

Charges associated with litigation matters

Net (gain) loss on sale of businesses

( 496 ) 472 — — ( 24 )

31 unchanged sentences

Special items

Integration and transaction-related costs — — — 135 135

(Gain) on sale of businesses — — ( 1,662 ) — ( 1,662 )

Net loss on sale of businesses

— 1,481 18 — 1,499

Charge for organizational efficiency plan

(Benefits) associated with litigation matters — — — ( 28 ) ( 28 )

— — — 252 252

Charges associated with litigation matters

44 157 — — 201

Integration and transaction-related costs

Pre-tax adjusted income (loss) from operations $ 6,442 $ 4,478 $ 96 $ ( 1,698 ) $ 9,318

Other Financial Information

Other segment information

Depreciation and amortization $ 2,438 $ 569 $ 3 $ 25 $ 3,035

25 unchanged sentences

Total Cigna Healthcare 39,677 45,512 43,882

Divested International businesses — — 1,596

Other Operations excluding Divested International businesses 380 281 225

Other Operations 288 380 281

Corporate and eliminations 296 104 74

13 unchanged sentences

Major Customers.

Revenues from a single pharmacy benefit client were approximately 16 % of consolidated revenues for the year ended December 31, 2024.

Revenues from a single pharmacy benefit client were approximately 19 % and 16 % of total revenues from external customers for the years ended December 31, 2025 and 2024, respectively.

These amounts were reported in the Evernorth Health Services segment.

Additionally, revenues from U.S.

Federal Government agencies, under a number of contracts, were approximately 11 %, 15 % and 14 % of consolidated revenues for the years ended December 31, 2024, 2023 and 2022, respectively.

Federal Government agencies, under a number of contracts, were 11 % and 15 % of total revenues from external customers for the years ended December 31, 2024 and 2023, respectively.

These amounts were reported in the Evernorth Health Services and Cigna Healthcare segments.

For the year ended December 31, 2025, revenues from U.S.

Federal Government agencies were less than 10%.

and Foreign Revenues.

and foreign revenues from external customers are shown below.

The Company's foreign revenues are generated by its foreign operating entities.

In the periods shown, no single foreign country contributed more than 2 % of consolidated revenues from external customers.

For the Years Ended December 31,

(In millions) 2024 2023 2022

United States $ 241,563 $ 189,840 $ 174,540

Foreign countries (1)

4,585 4,259 4,823

Total revenues from external customers $ 246,148 $ 194,099 $ 179,363

(1) In 2022, included revenues from the divested International businesses of $ 1.6 billion.

Revenues from U.S.

external customers as a percentage of total revenues from external customers were 98 % for the years ended December 31, 2025, 2024 and 2023 .

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data