Shareholders Equity and Dividend Restrictions

12 Months Ended

Dec. 31, 2020

Stockholders' Equity And Dividend Restrictions

Shareholders' Equity and Dividend Restrictions

State insurance departments and foreign jurisdictions that regulate certain of the Company’s subsidiaries prescribe accounting practices (differing in some respects from GAAP) to determine statutory net income and surplus. The Company’s life, accident and health insurance and Health Maintenance Organization (“HMO”) subsidiaries are regulated by such statutory requirements. The statutory net income of the Company’s life, accident and health insurance and HMO subsidiaries for the years ended, and their statutory surplus as of December 31, were as follows:


(In billions)	2020		2019		2018
Net income	$	4.0	$	3.8	$	3.4
Surplus	$	12.9	$	13.8	$	12.2

The Company’s HMO and life, accident and health insurance subsidiaries are also subject to minimum statutory surplus requirements and may be required to maintain investments on deposit with state departments of insurance or other regulatory bodies. Additionally, these subsidiaries may be subject to regulatory restrictions on the amount of annual dividends or other distributions (such as loans or cash advances) that insurance companies may extend to their parent companies without prior approval. As of December 31, 2020, these amounts, including restricted GAAP net assets of the Company’s subsidiaries, were as follows:


(In billions)	2020
Minimum statutory surplus required by regulators	$	4.9
Investments on deposit with regulatory bodies	$	0.4
Maximum dividend distributions permitted in 2021 without regulatory approval	$	2.5
Maximum loans to the parent company permitted without regulatory approval	$	0.8
Restricted GAAP net assets of Cigna Corporation's subsidiaries	$	13.5

Permitted practices used by the Company’s insurance subsidiaries in 2020 that differed from prescribed regulatory accounting had an immaterial impact on statutory surplus.