Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 143

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part II, Item 7
Chunk 143
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 $1 $320 $— $340 $1 (1)Excludes certain equity securities that have no readily determinable fair value.

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Level 3 Financial Assets and Financial LiabilitiesCertain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement. 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 in the Company's 2024 Form 10-K, the Company classifies variable annuity assets and liabilities in Level 3 of the fair value hierarchy.

Information about Debt SecuritiesThe significant unobservable input used to value our corporate and government debt securities and mortgage and other asset-backed securities is an adjustment for liquidity. This adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security. The following table summarizes the fair value and significant unobservable inputs that were developed directly by the Company and used in pricing these debt securities. The range and weighted average basis point amounts for liquidity reflect the Company's best estimates of the unobservable adjustments a market participant would make to calculate these fair values. An increase in liquidity spread adjustments would result in a lower fair value measurement, while a decrease would result in a higher fair value measurement.Fair Value as ofUnobservable Adjustment Range (Weighted Average by Quantity) as of(Fair value in millions)September 30,2025December 31,2024Unobservable InputSeptember 30, 2025September 30,2025December 31,2024Debt securitiesCorporate$312 $373 Liquidity60 - 2360 (400)bps60 - 1520 (370)bpsMortgage and other asset-backed securities38 43 Liquidity120 - 500 (290) bps100 - 550 (280)bpsOther debt securities1 1 Total Level 3 debt securities$351 $417 Information about Derivative InstrumentsDerivative Instruments associated with certain equity securities are valued each reporting period using a Monte Carlo simulation and estimated business enterprise value and are recorded in Other assets and Other non-current liabilities in the Consolidated Balance Sheets. The significant unobservable Level 3 measurement inputs used are forecasted earnings measures and equity as well as adjustments to reflect estimated volatility and credit spreads. See Note 11A to the Consolidated Financial Statements for