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Insurance and Contractholder Liabilities
 6 Months Ended
Jun. 30, 2022
Insurance Loss Reserves [Abstract]  
Insurance and Contractholder Liabilities
Note 9 – Insurance and Contractholder Liabilities
A.Account Balances – Insurance and Contractholder Liabilities
The Company's insurance and contractholder liabilities were comprised of the following:
June 30, 2022December 31, 2021June 30, 2021
(In millions)CurrentNon-currentTotalCurrentNon-currentTotalTotal
Contractholder deposit funds$371 $6,606 $6,977 $352 $6,702 $7,054 $7,122 
Future policy benefits246 8,454 8,700 312 9,194 9,506 9,531 
Unearned premiums575 415 990 558 418 976 912 
Unpaid claims and claim expenses
Cigna Healthcare
4,432 58 4,490 4,159 102 4,261 4,228 
Other Operations506 195 701 548 180 728 722 
Total6,130 15,728 21,858 5,929 16,596 22,525 
Insurance and contractholder liabilities classified as Liabilities of businesses held for sale (1)
(476)(3,951)(4,427)(611)(4,033)(4,644)
Total insurance and contractholder liabilities$5,654 $11,777 $17,431 $5,318 $12,563 $17,881 $22,515 
(1) Amounts classified as Liabilities of businesses held for sale primarily include $3.6 billion of Future policy benefits, $0.4 billion of Unpaid claims and $0.4 billion of Unearned premiums as of June 30, 2022 and $3.8 billion of Future policy benefits, $0.4 billion of Unpaid claims and $0.4 billion of Unearned premiums as of December 31, 2021.
Insurance and contractholder liabilities expected to be paid within one year are classified as current.
Unpaid Claims and Claim Expenses – Cigna HealthcareThis liability reflects estimates of the ultimate cost of claims that have been incurred but not reported, including expected development on reported claims, those that have been reported but not yet paid (reported claims in process) and other medical care expenses and services payable that are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities. This liability includes amounts from the International Health businesses now reported in Cigna Healthcare following our change in segment reporting in 2021. The prior year roll forward has been updated to reflect this segment change. The total of incurred but not reported liabilities plus expected development on reported claims, including reported claims in process, was $4.1 billion at June 30, 2022 and $3.9 billion at June 30, 2021.
Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment for the six months ended June 30 was as follows:
 Six Months Ended
(In millions)June 30, 2022June 30, 2021
Beginning balance$4,261 $3,695 
Less: Reinsurance and other amounts recoverable261 237 
Beginning balance, net4,000 3,458 
Incurred costs related to:
Current year15,751 15,716 
Prior years(268)(228)
Total incurred15,483 15,488 
Paid costs related to:
Current year11,900 12,065 
Prior years3,290 2,858 
Total paid15,190 14,923 
Ending balance, net4,293 4,023 
Add: Reinsurance and other amounts recoverable197 205 
Ending balance$4,490 $4,228 
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 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 for the six months ended June 30 were as follows:
Six Months Ended
(Dollars in millions)June 30, 2022June 30, 2021
$
% (1)
$
% (2)
Actual completion factors$84 0.2 %$92 0.3 %
Medical cost trend184 0.6 136 0.5 
Total favorable variance$268 0.8 %$228 0.8 %
(1) Percentage of current year incurred costs as reported for the year ended December 31, 2021.
(2) Percentage of current year incurred costs as reported for the year ended December 31, 2020.
Favorable prior year development in both years reflects lower than expected utilization of medical services as compared to our assumptions.
Unpaid Claims and Claim Expenses – Other Operations
Liability balance details. The liability details for unpaid claims and claim expenses are as follows. The liability balance no longer includes the International Health businesses now reported in Cigna Healthcare following our change in segment reporting. The prior year roll forward has been updated to reflect the segment change.
(In millions)June 30, 2022June 30, 2021
Other Operations
International businesses held for sale and our interest in a joint venture in Türkiye
$412 $438 
Other Operations289 284 
Unpaid claims and claim expenses - Other Operations
$701 $722 
Activity in the unpaid claims and claim expenses for international businesses held for sale and our interest in a joint venture in Türkiye is presented in the following table. Liabilities associated with Other Operations are excluded because they pertain to obligations for long-duration insurance contracts or, if short-duration, the liabilities have been largely reinsured.
Six Months Ended
(In millions)
June 30, 2022 (1)
June 30, 2021
Beginning balance$447 $452 
Less: Reinsurance46 45 
Beginning balance, net401 407 
Incurred claims related to:
Current year490 501 
Prior years4 (4)
Total incurred494 497 
Paid claims related to:
Current year306 314 
Prior years187 181 
Total paid493 495 
Foreign currency(28)(16)
Ending balance, net374 393 
Add: Reinsurance38 45 
Ending balance
$412 $438 
(1) Includes unpaid claims amounts classified as Liabilities of businesses held for sale.

Reinsurance in the table above reflects amounts due from reinsurers related to unpaid claims liabilities. See Note 10 for additional information on reinsurance.