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Insurance and Contractholder Liabilities (Tables)
 3 Months Ended
Mar. 31, 2023
Insurance Loss Reserves [Abstract]  
Summary of Insurance and Contractholder Liabilities, Activity in the Unpaid Claims Liability and Liability Details for Unpaid Claims and Claim Expenses
The Company's insurance and contractholder liabilities were comprised of the following:
March 31, 2023December 31, 2022March 31, 2022
(In millions)CurrentNon-currentTotalCurrentNon-currentTotalTotal
Unpaid claims and claim expenses
Cigna Healthcare
$4,880 $79 $4,959 $4,117 $59 $4,176 $4,491 
Other Operations97 175 272 107 177 284 744 
Future policy benefits
Cigna Healthcare
59 542 601 43 544 587 681 
Other Operations290 3,341 3,631 150 3,442 3,592 7,981 
Contractholder deposit funds
Cigna Healthcare
12 151 163 14 157 171 181 
Other Operations361 6,309 6,670 351 6,358 6,709 6,843 
Market risk benefits48 1,172 1,220 51 1,217 1,268 1,558 
Unearned premiums1,419 21 1,440 576 22 598 1,030 
Total23,509
Insurance and contractholder liabilities classified as Liabilities of businesses held for sale (1)
(4,562)
Total insurance and contractholder liabilities$7,166 $11,790 $18,956 $5,409 $11,976 $17,385 $18,947 
(1)Amounts classified as Liabilities of businesses held for sale primarily include $3.7 billion of Future policy benefits, $0.4 billion of Unpaid claims and $0.4 billion of Unearned premiums as of March 31, 2022.
Activity, net of intercompany transactions, in the unpaid claims liability for the Cigna Healthcare segment was as follows:
 Three Months Ended
(In millions)March 31, 2023March 31, 2022
Beginning balance$4,176 $4,261 
Less: Reinsurance and other amounts recoverable221 261 
Beginning balance, net3,955 4,000 
Incurred costs related to:
Current year9,041 8,024 
Prior years(144)(276)
Total incurred8,897 7,748 
Paid costs related to:
Current year5,316 4,634 
Prior years2,795 2,822 
Total paid8,111 7,456 
Ending balance, net4,741 4,292 
Add: Reinsurance and other amounts recoverable218 199 
Ending balance$4,959 $4,491 
Variances in Incurred Costs Related to Prior Years' Unpaid Claims and Claims Expenses
Variances in incurred costs related to prior years' unpaid claims and claim expenses that resulted from the differences between actual experience and the Company's key assumptions were as follows:
Three Months Ended
March 31, 2023March 31, 2022
(Dollars in millions)$
% (1)
$
% (2)
Actual completion factors$1 — %$99 0.3 %
Medical cost trend143 0.5 177 0.6 
Total favorable variance$144 0.5 %$276 0.9 %
(1)Percentage of current year incurred costs as reported for the year ended December 31, 2022.
(2)Percentage of current year incurred costs as reported for the year ended December 31, 2021.
Future Policy Benefit Activity
The weighted average interest rates applied and duration for future policy benefits in the Cigna Healthcare segment, consisting primarily of supplemental health products including individual Medicare supplement, limited benefit health products and individual private medical insurance, were as follows:
As of
March 31, 2023March 31, 2022
Interest accretion rate 2.59 %2.64 %
Current discount rate 5.29 %4.90 %
Weighted average duration 8.05 years7.45 years
The present values of expected net premiums and expected future policy benefits for the Cigna Healthcare segment are as follows:
Three Months Ended
(In millions)March 31, 2023March 31, 2022
Present value of expected net premiums
Beginning balance$8,557 $9,314 
Reversal of effect of beginning of period discount rate assumptions1,537 (367)
Effect of assumption changes and actual variances from expected experience— — 
Issuances and lapses 306 143 
Net premiums collected(326)(310)
Interest and other (1)
56 46 
Ending balance at original discount rate10,130 8,826 
Effect of end of period discount rate assumptions(1,312)(376)
Ending balance (2)
$8,818 $8,450 
Present value of expected policy benefits
Beginning balance$8,945 $9,794 
Reversal of effect of discount rate assumptions1,611 (379)
Effect of assumption changes and actual variances from expected experience— — 
Issuances and lapses 307 215 
Benefit payments(326)(385)
Interest and other (1)
58 52 
Ending balance at original discount rate10,595 9,297 
Effect of discount rate assumptions(1,378)(392)
Ending balance (3)
$9,217 $8,905 
Liability for future policy benefits $399 $455 
Other (4)
202 226 
Total liability for future policy benefits (5)
$601 $681 
(1)Includes the foreign exchange rate impact of translating from transactional and functional currency to United States dollar and the impact of flooring the liability at zero. The flooring impact is calculated at the cohort level after discounting the reserves at the current discount rate.
(2)As of March 31, 2023 and March 31, 2022, respectively, undiscounted expected future gross premiums were $17.6 billion and $13.5 billion. As of March 31, 2023 and March 31, 2022, respectively, discounted expected future gross premiums were $12.5 billion and $10.7 billion.
(3)As of March 31, 2023 and March 31, 2022, respectively, undiscounted expected future policy benefits were $12.8 billion and $11.2 billion.
(4)The liability for future policyholder benefits includes immaterial businesses shown as reconciling items above, most of which are in run-off.
(5)$154 million and $171 million of reinsurance recoverable asset reported in the Consolidated Balance Sheets as of March 31, 2023 and March 31, 2022, respectively, relate to the liability for future policy benefits.
The weighted average interest rates applied and duration for future policy benefits in Other Operations, consisting of annuity and life insurance products, were as follows:
As of
March 31, 2023March 31, 2022
Interest accretion rate 5.64 %5.64 %
Current discount rate 4.95 %3.59 %
Weighted average duration 11.7 years13.9 years
Summary of Market Risk Benefit Market risk benefits activity was as follows:
Three Months Ended
(Dollars in millions)March 31, 2023March 31, 2022
Balance, beginning of year$1,268 $1,824 
Balance, beginning of year, before the effect of nonperformance risk (own credit risk)1,379 1,949 
Changes due to expected run-off(6)(19)
Changes due to capital markets versus expected(41)(271)
Changes due to policyholder behavior versus expected6 (9)
Assumption changes(33)39 
Balance, end of year, before the effect of changes in nonperformance risk (own credit risk)1,305 1,689 
Nonperformance risk (own credit risk), end of period(85)(131)
Balance, end of period$1,220 $1,558 
Reinsured market risk benefit, end of period$1,301 $1,681 
(In millions)
Reinsurer (1)
March 31, 2023December 31, 2022
Collateral and Other Terms at March 31, 2023
Berkshire$1,043 $1,116 
90% were secured by assets in a trust.
Sun Life Assurance Company of Canada117 115 
Liberty Re (Bermuda) Ltd.128 128 
100% were secured by assets in a trust.
SCOR SE35 39 
70% were secured by a letter of credit.
Market risk benefits (2)
$1,323 $1,398 
(1)All reinsurers are rated A- equivalent and higher by an NRSRO.
(2)Includes IBNR and outstanding claims of $25 million offset by premium due of $3 million. These amounts are excluded from market risk benefits at March 31, 2023 in Note 9 and Note 10A to the Consolidated Financial Statements. At December 31, 2022, IBNR and outstanding claims of $27 million offset by premium due of $3 million were excluded from the market risk benefits as restated due to the adoption of LDTI.
Account Value, Net Amount at Risk and the Number of Contractholders for Guarantees Assumed in the Event of Death
The following table presents the net amount at risk and the average attained age of contractholders (weighted by exposure) for contracts assumed by the Company. The net amount at risk is the amount the Company would have to pay to contractholders if all deaths or annuitizations occurred as of the earliest possible date in accordance with the insurance contract. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded, as discussed further in Note 10 to the Consolidated Financial Statements.
(Dollars in millions, excludes impact of reinsurance ceded)March 31, 2023March 31, 2022
Net amount at risk$2,183 $1,892 
Average attained age of contractholders (weighted by exposure)75.4 years76.4 years