Company: CI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739940-25-000028
Chunk: 83

Company: Cigna Group
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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 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 30,2025December 31,2024Unobservable InputJune 30, 2025June 30,2025December 31,2024Debt securitiesCorporate$319 $373 Liquidity60 - 2020 (360)bps60 - 1520 (370)bpsMortgage and other asset-backed securities40 43 Liquidity110 - 660 (370) bps100 - 550 (280)bpsOther debt securities1 1 Total Level 3 debt securities$360 $417 

Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair ValueThe following table summarizes the changes in financial assets and financial liabilities classified in Level 3. Gains and losses reported in the table may include net changes in fair value that are attributable to both observable and unobservable inputs.Three Months EndedJune 30,Six Months EndedJune 30,(In