Company: CI
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001739940-25-000021
Chunk: 136

Company: Cigna Group
Filing Date: 2025-05-02
Form: 10-Q
Item: Part II, Item 4
Chunk 136
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 billion and $2.8 billion, respectively. More than 99% of the $4.0 billion liability as of both March 31, 2025 and March 31, 2024 not reinsured externally is for contracts with guaranteed interest rates of 3% - 4%, and approximately $1.2 billion as of both March 31, 2025 and March 31, 2024 represented contracts with policies at the guarantee. As of both March 31, 2025 and March 31, 2024, $1.2 billion was 50-150 basis points ("bps") above the guarantee and the remaining $1.6 billion represented contracts above the guarantee that pay the policyholder based on the greater of a guaranteed minimum cash value or the actual cash value. As of both March 31, 2025 and March 31, 2024, more than 90% of these contracts have actual cash values of at least 110% of the guaranteed cash value.

E.Market Risk Benefits

Liabilities for market risk benefits ("MRBs") consist of variable annuity reinsurance contracts in Other Operations. These liabilities arise under annuities and riders to annuities written by ceding companies that guarantee the benefit received at death and, for a subset of policies, also provide contractholders the option, within 30 days of a policy anniversary after the appropriate waiting period, to elect minimum income payments. The Company's capital market risk exposure on variable annuity reinsurance contracts arises when the reinsured guaranteed minimum benefit exceeds the contractholder's account value in the related underlying mutual funds at the time the insurance benefit is payable under the respective contract. The Company receives and pays premium periodically based on the terms of the reinsurance agreements.

15

Market risk benefits activity was as follows:Three Months Ended March 31,(In millions)20252024Balance, beginning of year$785 $1,003 Balance, beginning of year, before the effect of nonperformance risk (own credit risk)838 1,085 Changes due to expected run-off(4)(3)Changes due to capital markets versus expected44 (113)Changes due to policyholder behavior versus expected— (14)Balance, end of period, before the effect of changes in nonperformance risk (own credit risk)878 955 Nonperformance risk (own credit risk), end of period(48)(64)Balance, end of period$830 $891 Reinsured market risk