Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 11

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part II, Item 4
Chunk 11
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 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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Market risk benefits activity was as follows:Nine Months Ended September 30,(In millions)20252024Balance, beginning of year$785 $1,003 Balance, beginning of year, before the effect of nonperformance risk (own credit risk)838 1,085 Changes due to expected run-off(14)(7)Changes due to capital markets versus expected(30)(78)Changes due to policyholder behavior versus expected(20)(26)Assumption changes(17)37 Balance, end of period, before the effect of changes in nonperformance risk (own credit risk)757 1,011 Nonperformance risk (own credit risk), end of period(48)(67)Balance, end of period$709 $944 Reinsured market risk benefit, end of period$756 $1,008 

The following table presents the net amount at risk and the average attained age of contractholders (weighted by exposure) for contracts assumed by the Company. The net amount at risk is the amount 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. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded, as discussed further in Note 10 to the Consolidated Financial Statements.(Dollars in millions, excludes impact of reinsurance ceded)September 30, 2025September 30, 2024Net amount at risk$1,141 $1,361 Average attained age of contractholders (weighted by exposure)78.2 years77.6 years

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.