The Cigna Group's investment portfolio consists of a broad range of investments including debt securities, equity securities, commercial mortgage loans, policy loans, other long-term investments, short-term investments and derivative financial instruments. The sections below provide more detail regarding our investment balances and realized investment gains and losses. See Note 12 to the Consolidated Financial Statements for information about the valuation of the Company's investment portfolio. Further information about our accounting policies for investment assets can be found in Note 12 in the Company's 2023 Form 10-K.


	June 30, 2024						December 31, 2023
(In millions)	Current		Long-term		Total		Current		Long-term		Total
Debt securities	$	621	$	8,729	$	9,350	$	590	$	9,265	$	9,855
Equity securities	26		1,582		1,608		31		3,331		3,362
Commercial mortgage loans	191		1,318		1,509		182		1,351		1,533
Policy loans	—		1,176		1,176		—		1,211		1,211
Other long-term investments	—		4,446		4,446		—		4,181		4,181
Short-term investments	324		—		324		206		—		206
Total	$	1,162	$	17,251	$	18,413	$	1,009	$	19,339	$	20,348
Investments classified as assets of businesses held for sale (1)	(94)		(1,307)		(1,401)		(84)		(1,354)		(1,438)
Investments per Consolidated Balance Sheets	$	1,068	$	15,944	$	17,012	$	925	$	17,985	$	18,910

(1) Investments related to the HCSC transaction that were held for sale as of June 30, 2024. These investments were primarily comprised of debt securities and commercial mortgage loans, and to a lesser extent, other long-term investments.



(In millions)	Amortized Cost		Fair Value
Due in one year or less	$	666	$	643
Due after one year through five years	3,732		3,497
Due after five years through ten years	3,175		2,945
Due after ten years	2,137		1,913
Mortgage and other asset-backed securities	387		352
Total	$	10,097	$	9,350

Actual maturities of these securities could differ from their contractual maturities used in the table above because issuers may have the right to call or prepay obligations, with or without penalties.


(In millions)	Amortized Cost		Allowance for Credit Loss		Unrealized Appreciation		Unrealized Depreciation		Fair Value
June 30, 2024
Federal government and agency	$	288	$	—	$	18	$	(10)	$	296
State and local government	37		—		1		(1)		37
Foreign government	353		—		6		(14)		345
Corporate	9,032		(90)		99		(721)		8,320
Mortgage and other asset-backed	387		—		—		(35)		352
Total	$	10,097	$	(90)	$	124	$	(781)	$	9,350


December 31, 2023
Federal government and agency	$	251	$	—	$	24	$	(8)	$	267
State and local government	37		—		2		(1)		38
Foreign government	355		—		10		(13)		352
Corporate	9,338		(33)		158		(630)		8,833
Mortgage and other asset-backed	398		—		1		(34)		365
Total	$	10,379	$	(33)	$	195	$	(686)	$	9,855

Review of declines in fair value. Management reviews debt securities in an unrealized loss position to determine whether a credit loss allowance is needed based on criteria that include:

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. Unrealized depreciation on these debt securities is primarily due to declines in fair value resulting from increasing interest rates since these securities were purchased.


	June 30, 2024							December 31, 2023
(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	$	718	$	730	$	(12)	301	$	330	$	338	$	(8)	142
Below investment grade	123		127		(4)		334	161		170		(9)		135
More than one year
Investment grade	5,273		5,971		(698)		1,530	5,441		6,036		(595)		1,590
Below investment grade	598		665		(67)		326	701		775		(74)		486
Total	$	6,712	$	7,493	$	(781)	2,491	$	6,633	$	7,319	$	(686)	2,353


	June 30, 2024				December 31, 2023
(In millions)	Cost		Carrying Value		Cost		Carrying Value
Equity securities with readily determinable fair values	$	655	$	46	$	656	$	51
Equity securities with no readily determinable fair value	3,313		1,562		3,248		3,311
Total	$	3,968	$	1,608	$	3,904	$	3,362

We are a minority owner in VillageMD, a provider of primary, multi-specialty and urgent care services that is majority-owned by Walgreens Boots Alliance, Inc. These securities are included in equity securities with no readily determinable fair value in the above table. In the first quarter of 2024, we determined our investment in VillageMD was impaired and wrote down the carrying value to an estimated fair value of $0.9 billion, resulting in a $1.8 billion loss recorded in Net realized investment (losses) gains in the Company's Consolidated Statements of Income.

Consistent with our strategy to invest in targeted startup and growth-stage companies in the health care industry, approximately 90% of our investments in equity securities are in the health care sector.

Mortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type, location and borrower. Loans are generally issued at fixed rates of interest and are secured by high quality, primarily completed and substantially leased operating properties.

The Company regularly evaluates and monitors credit risk from the initial mortgage loan underwriting and throughout the investment holding period. The annual review performed in the second quarter of 2024 confirmed ongoing strong overall credit quality in line with the previous year's results. For more information on the Company's accounting policies and methodologies regarding these investments, see Note 12 in the Company's 2023 Form 10-K.


(Dollars in millions)	June 30, 2024					December 31, 2023
Loan-to-Value Ratio	Carrying Value		Average Debt Service Coverage Ratio	Average Loan-to-Value Ratio		Carrying Value		Average Debt Service Coverage Ratio	Average Loan-to-Value Ratio
Below 60%	$	685	2.15			$	802	2.13
60% to 79%	619		1.76			574		1.77
80% to 100%	205		1.02			157		0.65



Total	$	1,509	1.82	65	%	$	1,533	1.82	64	%

Other long-term investments include investments in unconsolidated entities, including certain limited partnerships and limited liability companies holding real estate, securities or loans. These investments are carried at cost plus the Company's ownership percentage of reporting income or loss, based on the financial statements of the underlying investments that are generally reported at fair value. Income or loss from these investments is reported on a one quarter lag due to the timing of when financial information is received from the general partner or manager of the investments.

Other long-term investments also include investment real estate carried at depreciated cost less any impairment write-downs to fair value when cash flow estimates indicate that the carrying value may not be recoverable. Additionally, statutory and other restricted deposits and foreign currency swaps carried at fair value are reported in the table below as Other. The following table provides the carrying value information for these investments:


	Carrying Value as of
(In millions)	June 30, 2024		December 31, 2023
Real estate investments	$	1,724	$	1,606
Securities partnerships	2,504		2,400
Other	218		175
Total	$	4,446	$	4,181

The Company uses derivative financial instruments to manage the characteristics of investment assets (such as duration, yield, currency and liquidity) to meet the varying demands of the related insurance and contractholder liabilities. The Company also uses derivative financial instruments to hedge the risk of changes in the net assets of certain of its foreign subsidiaries due to changes in foreign currency exchange rates and to hedge the interest rate risk of certain long-term debt.

As of June 30, 2024, the notional value of interest rate swap contracts increased to $1.9 billion compared to $1.5 billion as of December 31, 2023. There have been no other material changes to the Company's derivative financial instruments during the six months ended June 30, 2024. Please refer to the Company's 2023 Form 10-K for further discussion of the types of derivative financial instruments and associated accounting policies. The effects of derivative financial instruments used in our individual hedging strategies were not material to the Consolidated Financial Statements as of June 30, 2024 and December 31, 2023. The gross fair values of our derivative financial instruments are presented in Note 12 to the Consolidated Financial Statements.

The following realized gains and losses on investments exclude realized gains and losses attributed to the Company's separate accounts because those gains and losses generally accrue directly to separate account policyholders:



	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2024		2023		2024		2023
Net realized investment gains (losses), excluding credit (loss)/recovery and other investment write-downs	$	13	$	31	$	7	$	(20)


Credit (loss)/recovery and other investment write-downs	(61)		(5)		(1,891)		(10)
Net realized investment (losses) gains, before income taxes	$	(48)	$	26	$	(1,884)	$	(30)