Company: CI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739940-25-000028
Chunk: 17

Company: Cigna Group
Filing Date: 2025-07-31
Form: 10-Q
Item: Part II, Item 4
Chunk 17
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— $224 $281 State and local government— — 24 37 — — 24 37 Foreign government— — 401 344 — — 401 344 Corporate— — 7,171 8,049 320 374 7,491 8,423 Mortgage and other asset-backed— — 209 295 40 43 249 338 Total debt securities105 165 7,924 8,841 360 417 8,389 9,423 Equity securities (1)63 1 53 36 2 — 118 37 Short-term investments— — 250 170 — — 250 170 Derivative assets— — 64 168 — — 64 168 Financial liabilities at fair valueDerivative liabilities$— $— $30 $1 $— $— $30 $1 (1)Excludes certain equity securities that have no readily determinable fair value.

21

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.

Quantitative Information about Unobservable InputsThe 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)June 30,