Company: CI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739940-25-000028
Chunk: 77

Company: Cigna Group
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 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 $202 $208 BBB- to BBB+ equivalent current credit ratings (2)— — 65 65 Not rated90 5 3 98 Acquisition, disposition or run-off activitiesBBB+ equivalent and higher current ratings (2)(3)297 2,771 201 3,269 Not rated— 6 1 7 Total reinsurance recoverables before market risk benefits$387 $2,788 $472 $3,647 Allowance for uncollectible reinsurance(30)Market risk benefits822 Total reinsurance recoverables (4)$4,439 (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.(4)Includes $142 million of current reinsurance recoverables that are reported in Other current assets.

The Company entered into an agreement with Berkshire to effectively exit the variable annuity reinsurance business via a reinsurance transaction in 2013. Variable annuity contracts are accounted for as assumed and ceded reinsurance and categorized as market risk benefits as discussed in Note 9 to the Consolidated Financial Statements. Berkshire reinsured 100% of the Company's future cash flows in this business, net of other reinsurance arrangements existing at that time. The reinsurance agreement is subject to an overall limit, with approximately $3.0 billion remaining as of June 30, 2025. As a result of the reinsurance transaction, amounts payable are offset by a corresponding reinsurance recoverable, provided the increased recoverable remains within the overall Berkshire limit. As of both June 30, 2025 and 2024, market risk benefits (shown in the table net of nonperformance risk as of June 30, 2025) were predominantly reinsured by Berkshire, which is rated AA+ by an NRSRO. As of