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Investments (Tables)
 12 Months Ended
Dec. 31, 2020
Investments [Abstract]  
Investments by Category The following table summarizes the Company's investments by category and current or long-term classification.
December 31, 2020December 31, 2019
(In millions)CurrentLong-termTotalCurrentLong-termTotal
Debt securities$959 $17,172 $18,131 $928 $22,827 $23,755 
Equity securities— 501 501 — 303 303 
Commercial mortgage loans13 1,406 1,419 — 1,947 1,947 
Policy loans— 1,351 1,351 — 1,357 1,357 
Other long-term investments— 2,832 2,832 — 2,403 2,403 
Short-term investments359 — 359 423 — 423 
Total1,351 28,837 30,188 
Investments classified as assets of business held for sale(1)
(414)(7,295)(7,709)
Investments per Consolidated Balance Sheets$1,331 $23,262 $24,593 $937 $21,542 $22,479 
(1)On December 31, 2020, Cigna completed the sale of its U.S. Group Disability and Life business and transferred a total of $8.4 billion of investments to New York Life Insurance Company as part of this divestiture. The table above includes $7.7 billion as of December 31, 2019 of investments associated with this business that was previously held for sale.
Debt Securities by Contractual Maturity
The amortized cost and fair value by contractual maturity periods for debt securities were as follows at December 31, 2020:
(In millions)Amortized
Cost		Fair
Value
Due in one year or less$991 $1,001 
Due after one year through five years5,412 5,699 
Due after five years through ten years5,581 6,178 
Due after ten years3,809 4,818 
Mortgage and other asset-backed securities427 435 
Total$16,220 $18,131 
Gross Unrealized Appreciation (Depreciation) on Debt Securities
Gross unrealized appreciation (depreciation) on debt securities by type of issuer is shown below. As a result of the U.S. Group Disability and Life business divestiture, debt securities with a fair value of $7.8 billion, primarily in the Corporate and State and local government sectors, were transferred to New York Life on December 31, 2020. These debt securities included unrealized appreciation of $864 million and unrealized depreciation of $2 million. See Note 5 for further information.
(In millions)Amortized
Cost		Allowance for Credit LossUnrealized
Appreciation		Unrealized
Depreciation		Fair
Value
December 31, 2020
Federal government and agency$334 $— $122 $— $456 
State and local government150 — 17 — 167 
Foreign government2,201 — 318 (8)2,511 
Corporate13,108 (19)1,506 (33)14,562 
Mortgage and other asset-backed427 (7)27 (12)435 
Total$16,220 $(26)$1,990 $(53)$18,131 
Investments supporting liabilities of the Company’s run-off settlement annuity business (included in total above) (1)
$2,282 $(5)$838 $(3)$3,112 
December 31, 2019
Federal government and agency$498 $— $235 $— $733 
State and local government729 — 81 — 810 
Foreign government2,027 — 230 (1)2,256 
Corporate18,149 — 1,299 (28)19,420 
Mortgage and other asset-backed506 — 31 (1)536 
Total$21,909 $— $1,876 $(30)$23,755 
Investments supporting liabilities of the Company’s run-off settlement annuity business (included in total above) (1)
$2,229 $— $740 $(4)$2,965 
(1)Net unrealized appreciation for these investments is excluded from accumulated other comprehensive income.
Summary of Debt Securities with a Decline in Fair Value
The table below summarizes debt securities with a decline in fair value from amortized cost for which an allowance for credit losses has not been recorded, by investment grade and the length of time these securities have been in an unrealized loss position. These debt securities are primarily corporate securities with a decline in fair value that reflects an increase in market yields since purchase. See discussion of Realized Investment Gains and Losses below for further information on the credit loss expense recorded for the Company's investments.
December 31, 2020December 31, 2019
(Dollars in millions)Fair
Value		Amortized
Cost		Unrealized
Depreciation		Number
of Issues		Fair
Value		Amortized
Cost		Unrealized
Depreciation		Number
of Issues
One year or less
Investment grade$1,026 $1,045 $(19)300$723 $729 $(6)267 
Below investment grade$381 $405 $(24)232$340 $348 $(8)355 
More than one year
Investment grade$18 $18 $— 6$366 $378 $(12)118 
Below investment grade$90 $100 $(10)33$84 $88 $(4)93 
Total$1,515 $1,568 $(53)571$1,513 $1,543 $(30)833 
Roll-Forward of the Allowance for Credit Losses on Debt Securities
The table below presents a roll-forward of the allowance for credit losses on debt securities for the year ended December 31, 2020.
(In millions)2020
Balance at beginning of period$— 
Additions for debt securities where no credit loss has previously been recognized82 
Reductions for securities sold during the period(15)
Decrease for debt securities where credit losses have previously been recorded(41)
Balance December 31,$26 
Equity Security Investments
The following table provides the values of the Company's equity security investments as of December 31, 2020 and December 31, 2019.
December 31, 2020 December 31, 2019
(In millions) CostCarrying Value CostCarrying Value
Equity securities with readily determinable fair values$180 $202 $61 $64 
Equity securities with no readily determinable fair value$225 $255 $183 $192 
Hybrid equity securities$58 $44 $58 $47 
Total$463 $501 $302 $303 
Summary of the Credit Risk Profile of the Commercial Mortgage Loan Portfolio
The following table summarizes the credit risk profile of the Company’s commercial mortgage loan portfolio based on loan-to-value and debt service coverage ratios as of December 31, 2020 and December 31, 2019. As a result of the U.S. Group Disability and Life business divestiture, $0.6 billion of commercial mortgage loans were transferred to New York Life on December 31, 2020, see Note 5 for further information.
(Dollars in millions)December 31, 2020December 31, 2019
Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value Ratio
Below 60%$533 2.28$1,136 2.19
60% to 79%751 2.08723 1.98
80% to 100%141 1.3388 1.62
Allowance for credit losses(6)
Total$1,419 2.0861 %$1,947 2.0958 %
Carrying Value Information for Other Long-Term Investments The following table provides unfunded commitment and carrying value information for these investments. The Company expects to disburse approximately 38% of the committed amounts in 2021.
Unfunded Commitments as of
Carrying value as of December 31,
(In millions)20202019December 31, 2020
Real estate investments$951 $788 $677 
Securities partnerships1,683 1,409 1,617 
Other198 206 31 
Total$2,832 $2,403 $2,325 
Short-Term Investments and Cash Equivalents
Short-term investments and cash equivalents included the following types of issuers. The increase since prior year end is substantially attributable to proceeds received on December 31, 2020 from the U.S. Group Disability and Life business divestiture, see Note 5 for further information.
(In millions)December 31, 2020December 31, 2019
Corporate securities$2,669 $1,985 
Federal government securities$158 $472 
Foreign government securities$90 $65 
Money market funds$5,134 $631 
Summary of Derivative Instruments Held The following table summarizes the types and notional quantity of derivative instruments held by the Company. As of December 31, 2020 and December 31, 2019, the effects of these individual hedging strategies were not material to the Consolidated Financial Statements, including gains or losses reclassified from accumulated other comprehensive income into shareholders' net income, as well as amounts excluded from the assessment of hedge effectiveness.
Notional Value as of
(In millions)December 31, 2020December 31, 2019
PurposeType of Instrument
Fair value hedge: To hedge the foreign exchange-related changes in fair values of certain foreign-denominated bonds. The notional value of these derivatives matches the amortized cost of the hedged bonds.
Foreign currency swap contracts
$925 $817 
Net investment hedge: To reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in Euros, Korean Won and Taiwan Dollar. The notional value of hedging instruments matches the hedged amount of subsidiary net assets.
Foreign currency swap contracts
$526 $438 
Foreign currency forward contracts
$636 $406 
Economic hedge: To hedge the foreign exchange-related changes in fair value of U.S. dollar-denominated investment assets to reflect the local currency for the Company’s foreign subsidiary in South Korea. The notional value of hedging instruments generally aligns with the fair value of the hedged investments.
Foreign currency forward contracts
$538 $410 
Components of Net Investment Income
The components of Net investment income for the years ended December 31 were as follows:
(In millions)202020192018
Debt Securities$962 $986 $1,009 
Equity securities11 5 28 
Commercial mortgage loans80 88 78 
Policy loans64 66 70 
Other long-term investments127 167 156 
Short-term investments and cash52 131 194 
Total investment income1,296 1,443 1,535 
Less investment expenses52 53 55 
Net investment income$1,244 $1,390 $1,480 
Realized Gains and Losses on Investments The following realized gains and losses on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business (consistent with accounting for a premium deficiency, see Note 9 for further information), as well as realized gains and losses attributed to the Company’s separate accounts because those gains and losses generally accrue directly to separate account policyholders.
(In millions)202020192018
Net realized investment gains (losses), excluding credit loss expense and asset write-downs$186 $189 $(34)
Credit loss (expense) recoveries on invested assets(27)— — 
Other investment asset write-downs(10)(12)(47)
Net realized investment gains (losses), before income taxes$149 $177 $(81)
Sales Information for Available-for-Sale Debt Securities
The following table presents sales information for available-for-sale debt securities. Gross gains on sales and gross losses on sales exclude amounts required to adjust future policy benefits for the run-off settlement annuity business.
(In millions)202020192018
Proceeds from sales$2,186 $3,077 $2,625 
Gross gains on sales$89 $72 $28 
Gross losses on sales$(23)$(19)$(47)