Company: CI
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001739940-25-000028
Chunk: 73

Company: Cigna Group
Filing Date: 2025-07-31
Form: 10-Q
Item: Part I, Item 1
Chunk 73
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 balance$5,018 $5,092 Less: Reinsurance and other amounts recoverable159 236 Beginning balance, net4,859 4,856 Incurred costs related to:Current year18,163 18,821 Prior years(297)(284)Total incurred17,866 18,537 Paid costs related to:Current year13,019 14,397 Prior years3,889 3,960 Total paid16,908 18,357 Less: Divestiture and other1,323 — Ending balance, net4,494 5,036 Add: Reinsurance and other amounts recoverable142 166 Ending balance$4,636 $5,202 (1) Includes unpaid claims amounts classified as liabilities of businesses held for sale prior to the completion of the HCSC transaction. As of December 31, 2024, June 30, 2024 and December 31, 2023, includes $983 million, $900 million and $823 million classified as liabilities of businesses held for sale, respectively.Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 10 to the Consolidated Financial Statements for additional information on reinsurance.Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions were as follows:Six Months Ended June 30,20252024(Dollars in millions)$% (1)$% (2)Actual completion factors and other$170 0.5 %$83 0.2 %Medical cost trend127 0.3 201 0.6 Total favorable variance$297 0.8 %$284 0.8 %(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.

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