Company: CI
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001739940-25-000037
Chunk: 9

Company: Cigna Group
Filing Date: 2025-10-30
Form: 10-Q
Item: Part II, Item 4
Chunk 9
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2 %(1)Percentage of current year incurred costs as reported for the year ended December 31, 2024.(2)Percentage of current year incurred costs as reported for the year ended December 31, 2023.Favorable prior year development in both years primarily reflects lower than expected utilization of medical services as compared to our assumptions.

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C.Future Policy Benefits

Cigna HealthcareFuture policy benefits for the Cigna Healthcare segment were primarily related to the businesses divested to HCSC on March 19, 2025. Excluding the divestiture, changes in the future policy benefits for the nine months ended September 30, 2025 and September 30, 2024 were not material.

Other OperationsThe weighted average interest rates applied and duration for future policy benefits in Other Operations, consisting of annuity and life insurance products, were as follows:As ofSeptember 30, 2025September 30, 2024Interest accretion rate 5.64 %5.64 %Current discount rate 5.11 %4.81 %Weighted average duration 10.8 years11.3 yearsObligations for annuities represent discounted periodic benefits to be paid to an individual or groups of individuals over their remaining lives. Other Operations' traditional insurance contracts, which are in run-off, have no premium remaining to be collected; therefore, future policy benefit reserves represent the present value of expected future policy benefits, discounted using the current discount rate, and the remaining amortizable deferred profit liability.

Future policy benefits for Other Operations include deferred profit liability of $0.4 billion as of both September 30, 2025 and September 30, 2024. Future policy benefits excluding deferred profit liability were $2.9 billion as of both September 30, 2025 and December 31, 2024, $3.1 billion as of September 30, 2024, and $3.2 billion as of December 31, 2023. Undiscounted expected future policy benefits were $4.2 billion as of September 30, 2025 and $4.3 billion as of September 30, 2024. As of both September 30, 2025 and September 30, 2024, $0.9 billion of the future policy benefit reserve was recoverable through treaties with external reinsurers.

D.Contractholder Deposit Funds

Contract