Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 150

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part II, Item 7
Chunk 150
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 evaluate the need for any additional valuation allowance.

As of September 30, 2025, we had approximately $824 million in DTAs associated with the impairment of equity securities as well as unrealized investment losses. A valuation allowance of $788 million and $635 million as of the nine months ended September 30, 2025 and September 30, 2024, respectively, primarily relates to the impairment of equity securities discussed in Note 11 to the Consolidated Financial Statements. The increase in valuation allowance primarily associated with the impairment of equity securities resulted from the reallocation of available sources of capital income, as discussed above. 

Note 16 – Contingencies and Other MattersThe Company, through its subsidiaries, is contingently liable for various guarantees provided in the ordinary course of business.A.Financial Guarantees: Retiree and Life Insurance BenefitsThe Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree benefits. For the majority of these benefits, the sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations. If employers fail to do so, the Company or an affiliate of the buyer of the retirement benefits business has the right to redirect the management of the related assets 

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to provide for benefit payments. As of September 30, 2025, employers maintained assets that generally exceeded the benefit obligations under these arrangements of approximately $400 million. An additional liability is established if management believes that the Company will be required to make payments under the guarantees; there were no additional liabilities required for these guarantees, net of reinsurance, as of September 30, 2025. Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy.The Company does not expect that these financial guarantees will have a material effect on the Company's consolidated results of operations, liquidity or financial condition.B.Certain Other GuaranteesThe Company had indemnification obligations as of September 30, 2025 in connection with acquisition and disposition transactions. These indemnification obligations are triggered by the breach of representations or covenants provided by the Company, such as representations for the presentation of financial statements, filing of tax returns, compliance with laws or regulations, or identification of outstanding litigation. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential amount due is subject