Company: CI
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001739940-25-000021
Chunk: 33

Company: Cigna Group
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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 BBB+ equivalent current credit ratings (2)— — 63 63 Not rated101 3 3 107 Acquisition, disposition or run-off activitiesBBB+ equivalent and higher current ratings (2)(3)304 2,804 208 3,316 Not rated— 6 1 7 Total reinsurance recoverables before market risk benefits$405 $2,819 $452 $3,676 Allowance for uncollectible reinsurance(31)Market risk benefits876 Total reinsurance recoverables (4)$4,521 (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 $146 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 at March 31, 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 March 31, 2025 and 2024, market risk benefits (shown in the table net of nonperformance risk as of March 31, 2025) were predominantly reinsured by Berkshire, which is rated AA+ by an NRSRO. As of March 31, 2025, approximately 90% of the Berkshire recoverable is secured by assets in a trust. 

Note 11 – Investments

The following table summarizes the Company's investments by category and current or long-term classification:March 31, 2025December 31, 2024(In millions)CurrentLong-TermTotalCurrentLong-TermTotalDebt