Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 87

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 1
Chunk 87
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 2)Significant Unobservable Inputs(Level 3)TotalSeptember 30,2025December 31, 2024September 30,2025December 31, 2024September 30,2025December 31, 2024September 30,2025December 31, 2024Financial assets at fair valueDebt securitiesFederal government and agency$105 $165 $121 $116 $— $— $226 $281 State and local government— — 25 37 — — 25 37 Foreign government— — 412 344 — — 412 344 Corporate— — 7,130 8,049 313 374 7,443 8,423 Mortgage and other asset-backed— — 207 295 38 43 245 338 Total debt securities105 165 7,895 8,841 351 417 8,351 9,423 Equity securities (1)76 1 46 36 12 — 134 37 Short-term investments— — 276 170 — — 276 170 Derivative assets— — 74 168 936 — 1,010 168 Financial liabilities at fair valueDerivative liabilities$— $— $20 $1 $320 $— $340 $1 (1)Excludes certain equity securities that have no readily determinable fair value.

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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.

Information about Debt SecuritiesThe 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