Company: CI
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001739940-25-000021
Chunk: 29

Company: Cigna Group
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 Paid costs related to:Current year6,078 5,072 Prior years3,472 3,352 Total paid9,550 8,424 Less: Divestiture and other1,323 — Ending balance, net4,370 5,658 Add: Reinsurance and other amounts recoverable138 205 Ending balance$4,508 $5,863 (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, March 31, 2024 and December 31, 2023, includes $983 million and $1,378 million, $823 million classified as liabilities of businesses held for sale, respectively.Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 10 to the Consolidated Financial Statements for additional information on reinsurance.Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions were as follows:Three Months Ended March 31,20252024(Dollars in millions)$% (1)$% (2)Actual completion factors and other$96 0.3 %$76 0.2 %Medical cost trend126 0.3 150 0.4 Total favorable variance$222 0.6 %$226 0.6 %(1)Percentage of current year incurred costs as reported for the year ended December 31, 2024.(2)Percentage of current year incurred costs as reported for the year ended December 31, 2023.Favorable prior year development in both years primarily reflects lower than expected utilization of medical services as compared to our assumptions.

C.Future Policy Benefits

Cigna HealthcareFuture 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 three months ended March 31, 2025 and March 31, 2024 were not material.

14

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