Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 193

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part II, Item 10
Chunk 193
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Note 10 – ReinsuranceThe Company's insurance subsidiaries enter into agreements with other insurance companies to limit losses from large exposures and to permit recovery of a portion of incurred losses. Reinsurance is ceded primarily in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance does not relieve the originating insurer of liability. 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. 

The majority of the Company's reinsurance recoverables resulted from acquisition and disposition transactions in which the underwriting company was not acquired. The Company bears the risk of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company. The Company reviews its reinsurance arrangements and establishes reserves against the recoverables primarily for expected credit losses.

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The Company's reinsurance recoverables as of September 30, 2025 are presented at amount due by range of external credit rating and collateral level in the following table, with reinsurance recoverables that are market risk benefits separately presented at fair value:(In millions)Fair Value of Collateral Contractually Required to Meet or Exceed Carrying Value of RecoverableCollateral Provisions Exist That May Mitigate Risk of Credit Loss (1)No CollateralTotalOngoing operationsA- equivalent and higher current ratings (2)$— $6 $227 $233 BBB- to BBB+ equivalent current credit ratings (2)— — 64 64 Not rated85 7 3 95 Acquisition, disposition or run-off activitiesBBB+ equivalent and higher current ratings (2)(3)293 2,847 74 3,214 Not rated— 6 1 7 Total reinsurance recoverables before market risk benefits$378 $2,866 $369 $3,613 Allowance for uncollectible reinsurance(23)Market risk benefits756 Total reinsurance recoverables (4)$4,346 (1)Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level.(2)Certified by a nationally recognized statistical ratings organization ("NRSRO").(3)Comprised of six reinsurers, of which 75% is held by two reinsurers, Lincoln National Life Insurance Company and Lincoln Life and Annuity Company of New York