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1、UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 30,2024OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For

2、the transition period from _ to _Commission File Number 001-38769The Cigna Group(Exact name of registrant as specified in its charter)Delaware82-4991898(State or other jurisdiction of incorporation or organization)(I.R.S.Employer Identification No.)900 Cottage Grove RoadBloomfield,Connecticut 06002(

3、Address of principal executive offices)(Zip Code)(860)226-6000(Registrants telephone number,including area code)Not Applicable(Former name,former address and former fiscal year,if changed since last report)Securities registered pursuant to Section 12(b)of the Act:Title of each classTrading Symbol(s)

4、Name of each exchange on which registeredCommon Stock,Par Value$0.01CINew York Stock Exchange,Inc.Indicate by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 duringthe preceding 12 months(or for such shorter

5、period that the registrant was required to file such reports),and(2)has been subject to such filing requirements forthe past 90 days.Yes NoIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation

6、 S-T during the preceding 12 months(or for such shorter period that the registrant was required to submit such files).Yes NoIndicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or anemerging growth company

7、.See definitions of large accelerated filer,accelerated filer,smaller reporting company,and emerging growth company inRule 12b-2 of the Exchange Act.Large accelerated filerAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by

8、check mark if the registrant has elected not to use the extended transition period for complying with any new orrevised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of th

9、e Exchange Act).Yes NoAs of July 26,2024,279,548,797 shares of the issuers common stock were outstanding.THE CIGNA GROUPTABLE OF CONTENTSPagePART IFINANCIAL INFORMATIONItem 1.Financial Statements(Unaudited)3Consolidated Statements of Income3Consolidated Statements of Comprehensive Income4Consolidate

10、d Balance Sheets5Consolidated Statements of Changes in Total Equity6Consolidated Statements of Cash Flows8Notes to the Consolidated Financial Statements9Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operations37Item 3.Quantitative and Qualitative Disclosures About

11、Market Risk53Item 4.Controls and Procedures53PART IIOTHER INFORMATIONItem 1.Legal Proceedings54Item 1A.Risk Factors54Item 2.Unregistered Sales of Equity Securities and Use of Proceeds54Item 5.Other Information54Item 6.Exhibits56SIGNATURE57As used herein,the term Company refers to one or more of The

12、Cigna Group and its consolidated subsidiaries.Part I.FINANCIAL INFORMATIONItem 1.FINANCIAL STATEMENTSThe Cigna GroupConsolidated Statements of IncomeUnauditedUnauditedThree Months Ended June 30,Six Months Ended June 30,(In millions,except per share amounts)2024202320242023RevenuesPharmacy revenues$4

13、5,101$33,964$87,137$66,108 Premiums11,454 11,039 23,057 22,064 Fees and other revenues3,647 3,305 6,973 6,376 Net investment income321 278 611 555 TOTAL REVENUES60,523 48,586 117,778 95,103 Benefits and expensesPharmacy and other service costs44,492 33,442 85,923 64,901 Medical costs and other benef

14、it expenses9,515 9,034 18,955 18,080 Selling,general and administrative expenses3,684 3,434 7,389 6,972 Amortization of acquired intangible assets420 455 843 914 TOTAL BENEFITS AND EXPENSES58,111 46,365 113,110 90,867 Income from operations2,412 2,221 4,668 4,236 Interest expense and other(375)(363)

15、(697)(721)Loss on sale of businesses (19)Net realized investment(losses)gains(48)26(1,884)(30)Income before income taxes1,989 1,884 2,068 3,485 TOTAL INCOME TAXES360 374 651 669 Net income1,629 1,510 1,417 2,816 Less:Net income attributable to noncontrolling interests81 50 146 89 SHAREHOLDERS NET IN

16、COME$1,548$1,460$1,271$2,727 Shareholders net income per shareBasic$5.51$4.96$4.48$9.24 Diluted$5.45$4.92$4.43$9.15 The accompanying Notes to the Consolidated Financial Statements(unaudited)are an integral part of these statements.3The Cigna GroupConsolidated Statements of Comprehensive IncomeUnaudi

17、tedUnauditedThree Months Ended June 30,Six Months Ended June 30,(In millions)2024202320242023Net income$1,629$1,510$1,417$2,816 Other comprehensive income(loss),net of taxNet unrealized appreciation on securities and derivatives108 20 229 214 Net long-duration insurance and contractholder liabilitie

18、s measurement adjustments(212)(117)(772)(448)Net translation(losses)on foreign currencies(5)(19)(31)(3)Postretirement benefits liability adjustment(9)7(4)17 Other comprehensive loss,net of tax(118)(109)(578)(220)Total comprehensive income1,511 1,401 839 2,596 Comprehensive income(loss)attributable t

19、o noncontrolling interestsNet income attributable to redeemable noncontrolling interests 45 79 Net income attributable to other noncontrolling interests81 5 146 10 Total comprehensive income attributable to noncontrolling interests81 50 146 89 SHAREHOLDERS COMPREHENSIVE INCOME$1,430$1,351$693$2,507

20、The accompanying Notes to the Consolidated Financial Statements(unaudited)are an integral part of these statements.4The Cigna GroupConsolidated Balance SheetsUnauditedAs ofJune 30,As ofDecember 31,(In millions)20242023AssetsCash and cash equivalents$6,788$7,822 Investments1,068 925 Accounts receivab

21、le,net25,111 17,722 Inventories5,173 5,645 Other current assets2,664 2,169 Assets of businesses held for sale5,411 3,068 Total current assets46,215 37,351 Long-term investments15,944 17,985 Reinsurance recoverables4,595 4,835 Property and equipment3,551 3,695 Goodwill44,258 44,259 Other intangible a

22、ssets30,176 30,863 Other assets3,276 3,421 Separate account assets7,431 7,430 Assets of businesses held for sale,non-current 2,922 TOTAL ASSETS$155,446$152,761 LiabilitiesCurrent insurance and contractholder liabilities$5,616$5,514 Pharmacy and other service costs payable27,503 19,815 Accounts payab

23、le9,275 8,553 Accrued expenses and other liabilities9,003 9,955 Short-term debt1,717 2,775 Liabilities of businesses held for sale2,259 2,104 Total current liabilities55,373 48,716 Non-current insurance and contractholder liabilities10,449 10,904 Deferred tax liabilities,net6,953 7,173 Other non-cur

24、rent liabilities3,538 3,441 Long-term debt30,175 28,155 Separate account liabilities7,431 7,430 Liabilities of businesses held for sale,non-current 591 TOTAL LIABILITIES113,919 106,410 Contingencies Note 16Redeemable noncontrolling interests 107 Shareholders equityCommon stock 4 4 Additional paid-in

25、 capital31,048 30,669 Accumulated other comprehensive loss(2,442)(1,864)Retained earnings42,132 41,652 Less:Treasury stock,at cost(29,410)(24,238)TOTAL SHAREHOLDERS EQUITY41,332 46,223 Other noncontrolling interests195 21 Total equity41,527 46,244 Total liabilities and equity$155,446$152,761 Par val

26、ue per share,$0.01;shares issued,402 million as of June 30,2024 and 400 million as of December 31,2023;authorized shares,600 million.The accompanying Notes to the Consolidated Financial Statements(unaudited)are an integral part of these statements.(1)(1)5The Cigna GroupConsolidated Statements of Cha

27、nges in Total EquityUnauditedThree Months Ended June 30,2024(In millions)CommonStockAdditionalPaid-inCapitalAccumulated OtherComprehensive(Loss)RetainedEarningsTreasuryStockShareholdersEquityOther Non-controllingInterestsTotal EquityRedeemableNoncontrollingInterestsBalance at March 31,2024$4$30,292$

28、(2,324)$40,978$(27,769)$41,181$169$41,350$Effects of issuing stock for employeebenefit plans116(1)115 115 Other comprehensive loss(118)(118)(118)Net income1,548 1,548 81 1,629 Common dividends declared(per share:$1.40)(394)(394)(394)Repurchase of common stock640(1,640)(1,000)(1,000)Other transaction

29、s impacting noncontrollinginterests (55)(55)Balance at June 30,2024$4$31,048$(2,442)$42,132$(29,410)$41,332$195$41,527$Three Months Ended June 30,2023(In millions)CommonStockAdditionalPaid-inCapitalAccumulated OtherComprehensive(Loss)RetainedEarningsTreasuryStockShareholdersEquityOther Non-controlli

30、ngInterestsTotal EquityRedeemableNoncontrollingInterestsBalance at March 31,2023$4$30,332$(1,769)$38,841$(22,906)$44,502$16$44,518$78 Effect of issuing stock for employee benefitplans106(1)105 105 Other comprehensive loss(109)(109)(109)Net income1,460 1,460 5 1,465 45 Common dividends declared(per s

31、hare:$1.23)(365)(365)(365)Repurchase of common stock(146)(146)(146)Other transactions impacting noncontrollinginterests(2)(2)(2)(4)(61)Balance at June 30,2023$4$30,436$(1,878)$39,936$(23,053)$45,445$19$45,464$62 The accompanying Notes to the Consolidated Financial Statements(unaudited)are an integra

32、l part of these statements.6The Cigna GroupConsolidated Statements of Changes in Total EquityUnauditedSix Months Ended June 30,2024(In millions)CommonStockAdditionalPaid-inCapitalAccumulated OtherComprehensive(Loss)RetainedEarningsTreasuryStockShareholdersEquityOther Non-controllingInterestsTotal Eq

33、uityRedeemableNoncontrollingInterestsBalance at December 31,2023$4$30,669$(1,864)$41,652$(24,238)$46,223$21$46,244$107 Effect of issuing stock for employee benefitplans379(115)264 264 Other comprehensive loss(578)(578)(578)Net income1,271 1,271 146 1,417 Common dividends declared(per share:$2.80)(79

34、1)(791)(791)Repurchase of common stock(5,057)(5,057)(5,057)Other transactions impacting noncontrollinginterests 28 28(107)Balance at June 30,2024$4$31,048$(2,442)$42,132$(29,410)$41,332$195$41,527$Six Months Ended June 30,2023(In millions)CommonStockAdditionalPaid-inCapitalAccumulated OtherComprehen

35、sive(Loss)RetainedEarningsTreasuryStockShareholdersEquityOther Non-controllingInterestsTotal EquityRedeemableNoncontrollingInterestsBalance at December 31,2022$4$30,233$(1,658)$37,940$(21,844)$44,675$13$44,688$66 Effect of issuing stock for employee benefitplans205(105)100 100 Other comprehensive lo

36、ss(220)(220)(220)Net income2,727 2,727 10 2,737 79 Common dividends declared(per share:$2.46)(731)(731)(731)Repurchase of common stock(1,104)(1,104)(1,104)Other transactions impacting noncontrollinginterests(2)(2)(4)(6)(83)Balance at June 30,2023$4$30,436$(1,878)$39,936$(23,053)$45,445$19$45,464$62

37、The accompanying Notes to the Consolidated Financial Statements(unaudited)are an integral part of these statements.7The Cigna GroupConsolidated Statements of Cash FlowsUnauditedSix Months Ended June 30,(In millions)20242023Cash Flows from Operating ActivitiesNet income$1,417$2,816 Adjustments to rec

38、oncile net income to net cash provided by operating activities:Depreciation and amortization1,479 1,504 Realized investment losses,net1,884 30 Deferred income tax benefit(199)(207)Loss on sale of businesses19 Net changes in assets and liabilities,net of non-operating effects:Accounts receivable,net(

39、7,313)(1,144)Inventories472 263 Reinsurance recoverable and Other assets(559)109 Insurance liabilities(125)1,727 Pharmacy and other service costs payable7,820 1,547 Accounts payable and Accrued expenses and other liabilities(15)638 Other,net225 237 NET CASH PROVIDED BY OPERATING ACTIVITIES5,105 7,52

40、0 Cash Flows from Investing ActivitiesProceeds from investments sold:Debt securities and equity securities393 646 Investment maturities and repayments:Debt securities and equity securities414 502 Commercial mortgage loans37 82 Other sales,maturities and repayments(primarily short-term and other long

41、-term investments)451 313 Investments purchased or originated:Debt securities and equity securities(493)(3,339)Commercial mortgage loans(52)(59)Other(primarily short-term and other long-term investments)(865)(685)Property and equipment purchases,net(670)(805)Divestitures,net of cash sold 27 Other,ne

42、t(350)(79)NET CASH USED IN INVESTING ACTIVITIES(1,135)(3,397)Cash Flows from Financing ActivitiesDeposits and interest credited to contractholder deposit funds84 96 Withdrawals and benefit payments from contractholder deposit funds(135)(100)Net change in short-term debt(467)183 Repayment of long-ter

43、m debt(3,000)(80)Net proceeds on issuance of long-term debt4,462 1,491 Repurchase of common stock(5,012)(1,116)Issuance of common stock221 59 Common stock dividend paid(793)(730)Other,net(198)(275)NET CASH USED IN FINANCING ACTIVITIES(4,838)(472)Effect of foreign currency rate changes on cash,cash e

44、quivalents and restricted cash(12)9 Net(decrease)increase in cash,cash equivalents and restricted cash(880)3,660 Cash,cash equivalents and restricted cash January 1,8,337 5,976 Cash,cash equivalents and restricted cash,June 30,7,457 9,636 Cash and cash equivalents reclassified to assets of businesse

45、s held for sale(625)Cash,cash equivalents and restricted cash June 30,per Consolidated Balance Sheets$6,832$9,636 Supplemental Disclosure of Cash Information:Income taxes paid,net of refunds$567$926 Interest paid$643$632 Includes$467 million reported in Assets of businesses held for sale as of Janua

46、ry 1,2024.Restricted cash and cash equivalents were reported in other long-term investments.The accompanying Notes to the Consolidated Financial Statements(unaudited)are an integral part of these statements.(1)(2)(2)(1)(2)8THE CIGNA GROUPNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)TABLE

47、 OF CONTENTSNote NumberFootnotePageBUSINESS AND CAPITAL STRUCTURE1Description of Business102Summary of Significant Accounting Policies103Accounts Receivable,Net114Supplier Finance Program115Assets and Liabilities of Businesses Held for Sale126Earnings Per Share127Debt148Common and Preferred Stock16I

48、NSURANCE INFORMATION9Insurance and Contractholder Liabilities1710Reinsurance21INVESTMENTS11Investments2212Fair Value Measurements2613Variable Interest Entities2914Accumulated Other Comprehensive Income(Loss)29COMPLIANCE,REGULATION AND CONTINGENCIES15Income Taxes3016Contingencies and Other Matters31R

49、ESULTS DETAILS17Segment Information329Note 1 Description of BusinessThe Cigna Group,together with its subsidiaries(either individually or collectively referred to as the Company,we,us or our),is a global healthcompany committed to creating a better future for every individual and every community.We

50、relentlessly challenge ourselves to partner and innovate solutionsfor better health.Powered by our people and our brands,we advance our mission to improve the health and vitality of those we serve.Our subsidiaries offer a differentiated set of pharmacy,medical,behavioral,dental and related products

51、and services.The majority of these products andservices are offered through employers and other entities such as governmental and non-governmental organizations,unions and associations.Cigna Healthcarealso offers health and dental insurance and Medicare products to individuals in the United States a

52、nd select international markets.In addition to theseoperations,The Cigna Group also has certain run-off operations.A full description of our segments follows:The Evernorth Health Services reportable segment includes the Pharmacy Benefit Services and the Specialty and Care Services operating segments

53、,whichpartner with health plans,employers,governmental organizations and health care providers to solve challenges in the areas of pharmacy benefits,homedelivery pharmacy,specialty pharmacy,specialty distribution,and care delivery and management solutions.Pharmacy Benefit Services drives high-qualit

54、y,cost-effective pharmacy care through various services such as drug claim adjudication,retail pharmacy networkadministration,benefit design consultation,drug utilization review,drug formulary management and access to our home delivery pharmacy.Specialty and CareServices provides specialty drugs for

55、 the treatment of complex and rare diseases,specialty distribution of pharmaceuticals and medical supplies,as well asclinical programs to help our clients drive better whole-person health outcomes through Care Delivery and Management Solutions.The Companys reportingunits remain aligned with its oper

56、ating segments and Evernorth Health Services goodwill was allocated on a relative fair value basis.The Cigna Healthcare reportable segment includes the U.S.Healthcare and International Health operating segments,which provide comprehensive medicaland coordinated solutions to clients and customers.U.S

57、.Healthcare provides medical plans and specialty benefits and solutions for insured and self-insuredclients,Medicare Advantage,Medicare Supplement and Medicare Stand-Alone Prescription Drug Plans for seniors and individual health insurance plans.International Health provides health care solutions in

58、 our international markets,as well as health care benefits for globally mobile individuals and employees ofmultinational organizations.In January 2024,the Company entered into a definitive agreement to sell the Medicare Advantage,Medicare Stand-Alone Prescription Drug Plans,Medicareand Other Supplem

59、ental Benefits and CareAllies businesses within the U.S.Healthcare operating segment to Health Care Service Corporation(HCSC)forapproximately$3.3 billion cash,subject to applicable regulatory approvals and other customary closing conditions(the HCSC transaction).See Note 5 to theConsolidated Financi

60、al Statements for further information.Other Operations comprises the remainder of our business operations,which includes our continuing business(corporate-owned life insurance(COLI)andour run-off and other non-strategic businesses.Our run-off businesses include(i)variable annuity reinsurance busines

61、s that was effectively exited throughreinsurance with Berkshire Hathaway Life Insurance Company of Nebraska(Berkshire)in 2013,(ii)settlement annuity business,and(iii)individual lifeinsurance and annuity and retirement benefits businesses which were sold through reinsurance agreements.Corporate refle

62、cts amounts not allocated to operating segments,including net interest expense(defined as interest on corporate financing less net investmentincome on investments not supporting segment and other operations),certain litigation matters,expense associated with our frozen pension plans,charitablecontri

63、butions,operating severance,certain overhead and enterprise-wide project costs and eliminations for products and services sold between segments.Note 2 Summary of Significant Accounting Policies Basis of PresentationThe Consolidated Financial Statements include the accounts of The Cigna Group and its

64、 consolidated subsidiaries.Intercompany transactions and accountshave been eliminated in consolidation.These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted inthe United States of America(GAAP).Amounts recorded in the Consolidated Financial

65、 Statements necessarily reflect managements estimates and assumptions about medical costs,investment,taxand receivable valuations,interest rates and other factors.Significant estimates are discussed throughout10these Notes;however,actual results could differ from those estimates.The impact of a chan

66、ge in estimate is generally included in earnings in the period ofadjustment.These interim Consolidated Financial Statements are unaudited but include all adjustments(including normal recurring adjustments)necessary,in the opinionof management,for a fair statement of financial position and results of

67、 operations for the periods reported.The interim Consolidated Financial Statements andNotes should be read in conjunction with the Consolidated Financial Statements and Notes included in the 2023 Annual Report on Form 10-K(2023 Form 10-K).The preparation of interim Consolidated Financial Statements

68、necessarily relies heavily on estimates.This and other factors,including the seasonal natureof portions of the health care and related benefits business,as well as competitive and other market conditions,call for caution in estimating full-year resultsbased on interim results of operations.Recent Ac

69、counting PronouncementsThe Companys 2023 Form 10-K includes discussion of significant recent accounting pronouncements that either have impacted or may impact our financialstatements in the future.There are no updates on significant accounting pronouncements recently adopted or recently issued and n

70、ot yet adopted that haveoccurred since the Company filed its 2023 Form 10-K.Note 3 Accounts Receivable,NetThe following amounts were included within Accounts receivable,net:(In millions)June 30,2024December 31,2023Pharmaceutical manufacturers receivables$12,555$8,169 Noninsurance customer receivable

71、s10,946 8,044 Insurance customer receivables2,325 2,359 Other receivables289 272 Total$26,115$18,844 Accounts receivable,net classified as assets of businesses held for sale(1,004)(1,122)Total$25,111$17,722 These accounts receivable are reported net of our allowances of$4.4 billion as of June 30,202

72、4 and$3.7 billion as of December 31,2023.These allowancesinclude contractual allowances for certain rebates receivable with pharmaceutical manufacturers and certain accounts receivable from third-party payors,discounts and claims adjustments issued to customers in the form of client credits,an allow

73、ance for current expected credit losses and other non-creditadjustments.The Companys allowance for current expected credit losses was$95 million as of June 30,2024 and$90 million as of December 31,2023.Accounts Receivable Factoring FacilityThe Company maintains an uncommitted factoring facility(the

74、Facility)under which certain accounts receivable may be sold on a non-recourse basis to afinancial institution.The Facility began in July 2023 with an initial term of two years,followed by automatic one year renewal terms unless terminated byeither party.The Facilitys total capacity at inception was

75、$1.0 billion and was amended to$1.5 billion during the three months ended June 30,2024.Furtherinformation regarding the accounting policy for the Facility can be found in Note 3 in the Companys 2023 Form 10-K.For the three and six months ended June 30,2024,we sold$1.3 billion and$3.2 billion of acco

76、unts receivable under the Facility and factoring fees paid werenot material.As of June 30,2024,there were$322 million of sold accounts receivable that have not been collected from pharmaceutical manufacturers andhave been removed from the Companys Consolidated Balance Sheets.At December 31,2023,all

77、sold accounts receivable had been collected frompharmaceutical manufacturers.As of June 30,2024 and December 31,2023,there were$713 million and$515 million,respectively,of collections frompharmaceutical manufacturers that have not been remitted to the financial institution.Such amounts are recorded

78、within Accrued expenses and other liabilitiesin the Consolidated Balance Sheets.Note 4 Supplier Finance ProgramThe Company facilitates a voluntary supplier finance program(the Program)that provides suppliers the opportunity to sell their accounts receivable due fromus(i.e.,our payment obligations to

79、 the suppliers)to a financial institution,on a non-recourse basis,in11order to be paid earlier than our payment terms require.Further information regarding the Programs terms can be found in Note 4 in the Companys 2023 Form10-K.As of June 30,2024 and December 31,2023,$1.7 billion and$1.5 billion,res

80、pectively,of the Companys outstanding payment obligations were confirmed asvalid within the Program by the financial institution and are reflected in Accounts payable in the Consolidated Balance Sheets.The amounts confirmed as validfor both periods are predominately associated with one supplier.As o

81、f June 30,2024,we have been informed by the financial institution that$348 million ofthe Companys outstanding payment obligations were voluntarily elected by suppliers to be sold to the financial institution under the Program.Note 5 Assets and Liabilities of Businesses Held for SaleIn January 2024,t

82、he Company entered into the HCSC transaction for a total purchase price of approximately$3.3 billion cash,subject to applicable regulatoryapprovals and other customary closing conditions.The transaction is expected to close in the first quarter of 2025.The assets and liabilities of businesses held f

83、or sale were as follows:(In millions)June 30,2024December 31,2023Cash and cash equivalents$625$467 Investments1,401 1,438 Accounts receivable,net1,004 1,122 Other assets,including Goodwill 2,381 2,963 Total assets of businesses held for sale5,411 5,990 Insurance and contractholder liabilities1,557 1

84、,636 All other liabilities702 1,059 Total liabilities of businesses held for sale$2,259$2,695 Includes Goodwill of$396 million as of June 30,2024 and December 31,2023.Integration and Transaction-related CostsIn 2024 and 2023,the Company incurred transaction-related costs associated with the HCSC tra

85、nsaction.In 2023,the Company also incurred net costs mainlyrelated to the sale of our international life,accident and supplemental benefits businesses(Chubb transaction).These costs incurred in both 2024 and 2023consisted primarily of certain projects to separate or integrate the Companys systems,pr

86、oducts and services,fees for legal,advisory and other professionalservices and certain employment-related costs.These costs were$63 million pre-tax($47 million after-tax)for the three months ended and$100 million pre-tax($76 million after-tax)for the six months ended June 30,2024,compared with$6 mil

87、lion pre-tax($5 million after-tax)for the three months ended and$7million pre-tax($6 million after-tax)for the six months ended June 30,2023.Note 6 Earnings Per ShareBasic and diluted earnings per share were computed as follows:Three Months EndedJune 30,2024June 30,2023(Shares in thousands,dollars i

88、n millions,except per share amounts)BasicEffect ofDilutionDilutedBasicEffect ofDilutionDilutedShareholders net income$1,548$1,548$1,460$1,460 Shares:Weighted average281,133 281,133 294,512 294,512 Common stock equivalents2,919 2,919 2,367 2,367 Total shares281,133 2,919 284,052 294,512 2,367 296,879

89、 Earnings per share$5.51$(0.06)$5.45$4.96$(0.04)$4.92(1)(1)12Six Months EndedJune 30,2024June 30,2023(Shares in thousands,dollars in millions,except per share amounts)BasicEffect ofDilutionDilutedBasicEffect ofDilutionDilutedShareholders net income$1,271$1,271$2,727$2,727 Shares:Weighted average283,

90、799 283,799 295,105 295,105 Common stock equivalents3,085 3,085 2,831 2,831 Total shares283,799 3,085 286,884 295,105 2,831 297,936 Earnings per share$4.48$(0.05)$4.43$9.24$(0.09)$9.15 The following outstanding employee stock options were not included in the computation of diluted earnings per share

91、 because their effect was anti-dilutive:Three Months Ended June 30,Six Months Ended June 30,(In millions)2024202320242023Anti-dilutive options0.8 0.9 1.2 0.9 The Company held approximately 122.5 million shares of common stock in treasury at June 30,2024,107.4 million shares as of December 31,2023 an

92、d 103.3million shares as of June 30,2023.The increase in Treasury stock as of June 30,2024 and the reduction in weighted average shares outstanding for the six months ended June 30,2024 was drivenin part by 9.3 million shares of our common stock repurchased under the accelerated share repurchase agr

93、eements(the ASR agreements),approximately 1.7million of which were received in the three months ended June 30,2024.See Note 8 for additional information.13Note 7 DebtThe outstanding amounts of debt(net of issuance costs,discounts or premiums)and finance leases were as follows:(In millions)June 30,20

94、24December 31,2023Short-term debtCommercial paper$790$1,237$500 million,0.613%Notes due March 2024 500$790 million,3.500%Notes due June 2024 996$900 million,3.250%Notes due April 2025885 Other,including finance leases42 42 Total short-term debt$1,717$2,775 Long-term debt$900 million,3.250%Notes due

95、April 2025 882$1,216 million,4.125%Notes due November 20251,215 2,197$1,284 million,4.500%Notes due February 20261,285 1,502$550 million,1.250%Notes due March 2026 549 798$700 million,5.685%Notes due March 2026698 698$1,500 million,3.400%Notes due March 20271,459 1,450$259 million,7.875%Debentures d

96、ue May 2027259 259$600 million,3.050%Notes due October 2027598 597$3,800 million,4.375%Notes due October 20283,790 3,787$1,000 million,5.000%Notes due May 2029994$1,400 million,2.400%Notes due March 2030 1,394 1,493$1,500 million,2.375%Notes due March 2031 1,383 1,397$750 million,5.125%Notes due May

97、 2031745$45 million,8.080%Step Down Notes due January 203345 45$800 million,5.400%Notes due March 2033795 794$1,250 million,5.250%Notes due February 2034 1,242$190 million,6.150%Notes due November 2036190 190$2,200 million,4.800%Notes due August 20382,193 2,193$750 million,3.200%Notes due March 2040

98、744 744$121 million,5.875%Notes due March 2041119 119$448 million,6.125%Notes due November 2041486 487$317 million,5.375%Notes due February 2042315 315$1,500 million,4.800%Notes due July 20461,467 1,467$1,000 million,3.875%Notes due October 2047990 989$3,000 million,4.900%Notes due December 20482,97

99、0 2,970$1,250 million,3.400%Notes due March 20501,237 1,237$1,500 million,3.400%Notes due March 20511,479 1,479$1,500 million,5.600%Notes due February 20541,482 Other,including finance leases52 66 Total long-term debt$30,175$28,155 Included in the February 2024 debt tender offers discussed below.The

100、 Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments.See Note 11 to the Consolidated Financial Statements for further informationabout the Companys interest rate risk management and these derivative instruments.Short-term and Credit Facilities

101、 DebtRevolving Credit Agreements.Our revolving credit agreements provide us with the ability to borrow amounts for general corporate purposes,includingproviding liquidity support if necessary under our commercial paper program discussed below.As of June 30,2024,there were no outstanding balances und

102、erthese revolving credit agreements.(1)(2)(2)(1)(1)(1)(1)(2)(2)(2)(1)(2)14In April 2024,The Cigna Group replaced its previous revolving credit agreements and entered into the following(the Credit Agreements):a$5.0 billion five-year revolving credit and letter of credit agreement that will mature in

103、April 2029 with an option to extend the maturity date foradditional one-year periods,subject to consent of the banks.The Company can borrow up to$5.0 billion under the credit agreement for generalcorporate purposes,with up to$500 million available for issuance of letters of credit.a$1.5 billion 364-

104、day revolving credit agreement that will mature in April 2025.The Company can borrow up to$1.5 billion under the creditagreement for general corporate purposes.This agreement includes the option to term out any revolving loans that are outstanding at maturity byconverting them into a term loan matur

105、ing on the one-year anniversary of conversion.Each of the Credit Agreements include an option to increase commitments in an aggregate amount of up to$1.5 billion across both facilities for a maximumtotal commitment of$8.0 billion.The Credit Agreements allow for borrowings at either a base rate or an

106、 adjusted term Secured Overnight Funding Rate(SOFR)plus,in each case,an applicable margin based on the Companys senior unsecured credit ratings.Each of the two facilities is diversified among 22 large commercial banks,all of which had an A-equivalent or higher rating by at least one NationallyRecogn

107、ized Statistical Rating Organization(NRSRO)as of June 30,2024.Each facility also contains customary covenants and restrictions,including afinancial covenant that the Companys leverage ratio,as defined in the Credit Agreements,may not exceed 60%subject to certain exceptions upon theconsummation of an

108、 acquisition.Commercial Paper.Under our commercial paper program,we may issue short-term,unsecured commercial paper notes privately placed on a discounted basisthrough certain broker-dealers at any time not to exceed an aggregate amount of$5.0 billion.In July 2024,our commercial paper program size w

109、as increased to$6.5 billion.Amounts available under the program may be borrowed,repaid and re-borrowed from time to time.The net proceeds of issuances have been andare expected to be used for general corporate purposes.The weighted average interest rate of our commercial paper was 5.47%at June 30,20

110、24.Long-term debtDebt Issuance and Debt Tender Offers.In February 2024,we issued$4.5 billion of new senior notes,as detailed in the table below.The proceeds from thisdebt were used to pay the consideration for the cash tender offers as described below.We used the remaining net proceeds to fund the r

111、epayment of our seniornotes that matured in March 2024 and for general corporate purposes,including repayment of indebtedness and repurchases of shares of our common stock.Interest on this debt is paid semi-annually.PrincipalMaturity DateInterest RateNet ProceedsRedeemable DateMake whole premiumbasi

112、s points over U.S.Treasury rate$1,000 millionMay 15,20295.000%$995 millionApril 15,202915$750 millionMay 15,20315.125%$746 millionMarch 15,203115$1,250 millionFebruary 15,20345.250%$1,244 millionNovember 15,203320$1,500 millionFebruary 15,20545.600%$1,485 millionAugust 15,205320 Redeemable at any ti

113、me prior to this date at a make whole premium,defined below.Redeemable at par on or after this date.Make whole premium calculated using the most directly comparable U.S.Treasury rate plus the amount of basis points set forth in this column.In the first quarter of 2024,the Company completed the repur

114、chase of a total of$1.8 billion in aggregate principal amount of existing senior notes that weretendered to the Company pursuant to cash tender offers.Interest ExpenseInterest expense on corporate financing was$378 million for the three months ended and$747 million for the six months ended June 30,2

115、024,compared with$350 million for the three months ended and$695 million for the six months ended June 30,2023.Debt CovenantsThe Company was in compliance with its debt covenants as of June 30,2024.(1)(2)(1)(2)15Note 8 Common and Preferred StockDividendsThe following table provides details of the Co

116、mpanys dividend payments:Record DatePayment DateAmount per ShareTotal Amount Paid(in millions)2024March 6,2024March 21,2024$1.40$401June 4,2024June 20,2024$1.40$3922023March 8,2023March 23,2023$1.23$368June 7,2023June 22,2023$1.23$362On July 24,2024,the Board of Directors declared the third quarter

117、cash dividend of$1.40 per share of The Cigna Group common stock to be paid onSeptember 19,2024 to shareholders of record on September 4,2024.The Company currently intends to pay regular quarterly dividends,with futuredeclarations subject to approval by its Board of Directors and the Boards determina

118、tion that the declaration of dividends remains in the best interests of TheCigna Group and its shareholders.The decision of whether to pay future dividends and the amount of any such dividends will be based on the Companysfinancial position,results of operations,cash flows,capital requirements,the r

119、equirements of applicable law and any other factors the Board may deemrelevant.Accelerated Share Repurchase AgreementsIn February 2024,as part of our share repurchase program,we entered into separate accelerated share repurchase agreements with Deutsche Bank AG andBank of America,N.A.(collectively,t

120、he Counterparties)to repurchase$3.2 billion of common stock in aggregate.The total number of shares of our commonstock repurchased under the agreements was approximately 9.3 million,at$344.98 per share.The per share amount was calculated based on the daily volume-weighted average share price of our

121、common stock over the term of the agreements,less a discount.16Note 9 Insurance and Contractholder LiabilitiesA.Account Balances Insurance and Contractholder LiabilitiesThe Companys insurance and contractholder liabilities were comprised of the following:June 30,2024December 31,2023June 30,2023(In m

122、illions)CurrentNon-currentTotalCurrentNon-currentTotalTotalUnpaid claims and claim expensesCigna Healthcare$5,124$78$5,202$5,017$75$5,092$5,336 Other Operations165 151 316 99 154 253 297 Future policy benefitsCigna Healthcare90 506 596 97 518 615 595 Other Operations162 3,200 3,362 163 3,375 3,538 3

123、,587 Contractholder deposit fundsCigna Healthcare10 125 135 12 133 145 158 Other Operations360 6,021 6,381 362 6,178 6,540 6,647 Market risk benefits25 840 865 37 966 1,003 1,069 Unearned premiums737 28 765 846 22 868 1,425 Total6,673 10,949 17,622 6,633 11,421 18,054 Insurance and contractholder li

124、abilities classifiedas liabilities of businesses held for sale(1,057)(500)(1,557)(1,119)(517)(1,636)Total insurance and contractholder liabilities$5,616$10,449$16,065$5,514$10,904$16,418$19,114 Amounts classified as liabilities of businesses held for sale include$900 million of Unpaid claims,$417 mi

125、llion of Future policy benefits,$129 million of Unearned premiums and$111 million ofContractholder deposit funds as of June 30,2024 and$823 million of Unpaid claims,$429 million of Future policy benefits,$261 million of Unearned premiums and$123 million ofContractholder deposit funds as of December

126、31,2023.Insurance and contractholder liabilities expected to be paid within one year are classified as current.B.Unpaid Claims and Claim Expenses Cigna HealthcareThis liability reflects estimates of the ultimate cost of claims that have been incurred but not reported,expected development on reported

127、 claims,claims thathave been reported but not yet paid(reported claims in process)and other medical care expenses and services payable that are primarily comprised of accrualsfor incentives and other amounts payable to health care professionals and facilities.The total of incurred but not reported l

128、iabilities plus expected development on reported claims and reported claims in process was$4.8 billion at June 30,2024and$5.0 billion at June 30,2023.(1)(1)17Activity,net of intercompany transactions,in the unpaid claims liability for the Cigna Healthcare segment was as follows:Six Months Ended June

129、 30,(In millions)2024 2023Beginning balance$5,092$4,176 Less:Reinsurance and other amounts recoverable236 221 Beginning balance,net4,856 3,955 Incurred costs related to:Current year18,821 17,974 Prior years(284)(202)Total incurred18,537 17,772 Paid costs related to:Current year14,397 13,408 Prior ye

130、ars3,960 3,199 Total paid18,357 16,607 Ending balance,net5,036 5,120 Add:Reinsurance and other amounts recoverable166 216 Ending balance$5,202$5,336 Includes unpaid claims amounts classified as liabilities of businesses held for sale.As of June 30,2024 and December 31,2023,$900 million and$823 milli

131、on classified as liabilities of businessesheld for sale,respectively.Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims ofcertain business for which the Company administers the plan benefits without an

132、y right of offset.See Note 10 to the Consolidated Financial Statements foradditional 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 theCompanys key assumptions were as fol

133、lows:Six Months Ended June 30,20242023(Dollars in millions)$%$%Actual completion factors$83 0.2%$29 0.1%Medical cost trend201 0.6 173 0.5 Total favorable variance$284 0.8%$202 0.6%Percentage of current year incurred costs as reported for the year ended December 31,2023.Percentage of current year inc

134、urred costs as reported for the year ended December 31,2022.Favorable prior year development in both years reflects lower than expected utilization of medical services as compared to our assumptions.C.Future Policy BenefitsCigna HealthcareThe weighted average interest rates applied and duration for

135、future policy benefits in the Cigna Healthcare segment,consisting primarily of supplementalhealth products including individual Medicare supplement,limited benefit health products and individual private medical insurance,were as follows:As ofJune 30,2024June 30,2023Interest accretion rate2.70%2.20%C

136、urrent discount rate5.31%5.36%Weighted average duration7.8 years7.8 years(1)(1)(1)(2)(1)(2)18The net liability for future policy benefits for the segments supplemental health products represents the present value of benefits expected to be paid topolicyholders,net of the present value of expected ne

137、t premiums,which is the portion of expected future gross premium expected to be collected frompolicyholders that is required to provide for all expected future benefits and expenses.The present values of expected net premiums and expected future policybenefits for the Cigna Healthcare segment were a

138、s follows:Six Months Ended June 30,(In millions)2024 2023Present value of expected net premiumsBeginning balance$9,233$8,557 Reversal of effect of beginning of period discount rate assumptions1,154 1,537 Effect of assumption changes and actual variances from expected experience(90)51 Issuances and l

139、apses848 570 Net premiums collected(699)(658)Interest and other 142 106 Ending balance at original discount rate10,588 10,163 Effect of end of period discount rate assumptions(1,357)(1,491)Ending balance$9,231$8,672 Present value of expected policy benefitsBeginning balance$9,633$8,945 Reversal of e

140、ffect of discount rate assumptions1,220 1,611 Effect of assumption changes and actual variances from expected experience(87)54 Issuances and lapses855 558 Benefit payments(725)(661)Interest and other 147 121 Ending balance at original discount rate11,043 10,628 Effect of discount rate assumptions(1,

141、432)(1,565)Ending balance$9,611$9,063 Liability for future policy benefits$380$391 Other216 204 Total liability for future policy benefits$596$595 Includes$417 million and$429 million of future policy benefits classified as liabilities of businesses held for sale in the Consolidated Balance Sheets a

142、s of June 30,2024 and December 31,2023,respectively.Includes the effect of actual variances from expectations,which(decreased)increased the total liability for future policy benefits by$(2)million and$2 million,respectively,for the six monthsended June 30,2024 and June 30,2023.Includes the foreign e

143、xchange 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 iscalculated at the cohort level after discounting the reserves at the current discount rate.As of June 30,2024 and June 30,2023

144、undiscounted expected future gross premiums were$18.9 billion and$17.7 billion,respectively.As of June 30,2024 and June 30,2023 discounted expectedfuture gross premiums were$13.2 billion and$12.3 billion,respectively.As of June 30,2024 and June 30,2023,undiscounted expected future policy benefits we

145、re$13.7 billion and$12.9 billion,respectively.The liability for future policyholder benefits includes immaterial businesses shown as reconciling items above,most of which are in run-off.$73 million and$154 million reported in Reinsurance recoverables in the Consolidated Balance Sheets as of June 30,

146、2024 and June 30,2023,respectively,relate to the liability for future policybenefits.Additionally,$80 million of reinsurance recoverables are reported in assets of businesses held for sale in the Consolidated Balance Sheets as of June 30,2024.Other OperationsThe weighted average interest rates appli

147、ed and duration for future policy benefits in Other Operations,consisting of annuity and life insurance products,wereas follows:As ofJune 30,2024June 30,2023Interest accretion rate5.64%5.64%Current discount rate5.38%5.02%Weighted average duration11.2 years11.7 yearsObligations for annuities represen

148、t discounted periodic benefits to be paid to an individual or groups of individuals over their remaining lives.OtherOperations traditional insurance contracts,which are in run-off,have no premium remaining to be collected;(1)(2)(3)(4)(2)(3)(5)(6)(1)(7)(1)(2)(3)(4)(5)(6)(7)19therefore,future policy b

149、enefit reserves represent the present value of expected future policy benefits,discounted using the current discount rate,and theremaining amortizable deferred profit liability.Future policy benefits for Other Operations includes deferred profit liability of$0.4 billion as of both June 30,2024 and J

150、une 30,2023.Future policy benefitsexcluding deferred profit liability were$3.0 billion as of June 30,2024 and$3.2 billion as of December 31,2023,June 30,2023 and December 31,2022.Thechange in future policy benefits reserves year-to-date was primarily driven by benefit payments,as well as changes in

151、the current discount rate.Undiscountedexpected future policy benefits were$4.4 billion as of June 30,2024 and$4.5 billion as of June 30,2023.As of June 30,2024 and June 30,2023,$0.9 billionand$1.0 billion,respectively,of the future policy benefit reserve was recoverable through treaties with externa

152、l reinsurers.D.Contractholder Deposit FundsContractholder deposit fund liabilities within Other Operations were$6.4 billion as of June 30,2024,$6.5 billion as of December 31,2023,$6.6 billion as ofJune 30,2023 and$6.7 billion as of December 31,2022.Approximately 38%of the balance is reinsured extern

153、ally.Activity in these liabilities is presented netof reinsurance in the Consolidated Statements of Cash Flows.The net year-to-date decrease in contractholder deposit fund liabilities generally relates towithdrawals and benefit payments from contractholder deposit funds,partially offset by deposits

154、and interest credited to contractholder deposit funds.As of June 30,2024,the weighted average crediting rate,net amount at risk and cash surrender value for contractholder deposit fund liabilities not effectivelyexited through reinsurance were 3.25%,$2.9 billion and$2.8 billion,respectively.The comp

155、arative amounts as of June 30,2023 were 3.26%,$3.2 billion and$2.8 billion,respectively.More than 99%of the$4.0 billion liability as of June 30,2024 and the$4.1 billion liability as of June 30,2023 not reinsuredexternally is for contracts with guaranteed interest rates of 3%-4%,and approximately$1.1

156、 billion and$1.2 billion,as of June 30,2024 and June 30,2023,respectively,represented contracts with policies at the guarantee.As of both June 30,2024 and June 30,2023,$1.2 billion was 50-150 basis points(bps)above the guarantee and the remaining$1.7 billion represented contracts above the guarantee

157、 that pay the policyholder based on the greater of a guaranteedminimum cash value or the actual cash value.As of both June 30,2024 and June 30,2023,more than 90%of these contracts have actual cash values of at least110%of the guaranteed cash value.E.Market Risk BenefitsLiabilities for market risk be

158、nefits consist of variable annuity reinsurance contracts in Other Operations.These liabilities arise under annuities and riders toannuities written by ceding companies that guarantee the benefit received at death and,for a subset of policies,also provide contractholders the option,within30 days of a

159、 policy anniversary after the appropriate waiting period,to elect minimum income payments.The Companys capital market risk exposure onvariable annuity reinsurance contracts arises when the reinsured guaranteed minimum benefit exceeds the contractholders account value in the relatedunderlying mutual

160、funds at the time the insurance benefit is payable under the respective contract.The Company receives and pays premium periodically basedon the terms of the reinsurance agreements.Market risk benefits activity was as follows:Six Months Ended June 30,(Dollars in millions)20242023Balance,beginning of

161、year$1,003$1,268 Balance,beginning of year,before the effect of nonperformance risk(own credit risk)1,085 1,379 Changes due to expected run-off(6)(14)Changes due to capital markets versus expected(133)(194)Changes due to policyholder behavior versus expected(17)8 Assumption changes(32)Balance,end of

162、 period,before the effect of changes in nonperformance risk(own credit risk)929 1,147 Nonperformance risk(own credit risk),end of period(64)(78)Balance,end of period$865$1,069 Reinsured market risk benefit,end of period$927$1,143 20The following table presents the net amount at risk and the average

163、attained age of contractholders(weighted by exposure)for contracts assumed by theCompany.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 earliestpossible date in accordance with the insurance contract.The Compan

164、y should be reimbursed in full for these payments unless the Berkshire reinsurance limit isexceeded,as discussed further in Note 10 to the Consolidated Financial Statements.(Dollars in millions,excludes impact of reinsurance ceded)June 30,2024June 30,2023Net amount at risk$1,391$1,871 Average attain

165、ed age of contractholders(weighted by exposure)77.8 years76.3 yearsNote 10 ReinsuranceThe Companys insurance subsidiaries enter into agreements with other insurance companies to limit losses from large exposures and to permit recovery of aportion of incurred losses.Reinsurance is ceded primarily in

166、acquisition and disposition transactions when the underwriting company is not being acquired.Reinsurance does not relieve the originating insurer of liability.Therefore,reinsured liabilities must continue to be reported along with the related reinsurancerecoverables.The Company regularly evaluates t

167、he financial condition of its reinsurers and monitors concentrations of its credit risk.A.Reinsurance RecoverablesThe majority of the Companys reinsurance recoverables resulted from acquisition and disposition transactions in which the underwriting company was notacquired.The Company bears the risk

168、of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to theCompany.The Company reviews its reinsurance arrangements and establishes reserves against the recoverables primarily for expected credit losses.The Companys reinsurance recoverables

169、as of June 30,2024 are presented at amount due by range of external credit rating and collateral level in the followingtable,with reinsurance recoverables that are market risk benefits separately presented at fair value:(In millions)Fair value of collateralcontractually requiredto meet or exceedcarr

170、ying value ofrecoverableCollateral provisionsexist that may mitigaterisk of credit loss No collateralTotalOngoing OperationsA-equivalent and higher current ratings$8$80$88 BBB-to BBB+equivalent current credit ratings 61 61 Not rated151 8 224 383 Total recoverables related to ongoing operations151 16

171、 365 532 Acquisition,disposition or run-off activitiesBBB+equivalent and higher current ratings Lincoln National Life and Lincoln Life&Annuity of New York 2,568 2,568 Empower Annuity Insurance Company 127 127 Prudential Insurance Company of America335 335 Life Insurance Company of North America 318

172、318 Other161 22 14 197 Not rated 6 4 10 Total recoverables related to acquisition,disposition or run-off activities496 2,914 145 3,555 Total reinsurance recoverables before market risk benefits$647$2,930$510$4,087 Allowance for uncollectible reinsurance(34)Market risk benefits927 Total reinsurance r

173、ecoverables$4,980 Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level.Certified by an NRSRO.Includes$182 million of current reinsurance recoverables that are reported in Other current assets and

174、$203 million of reinsurance recoverables classified as assets of businesses held for sale.(1)(2)(2)(2)(3)(1)(2)(3)21Collateral levels are defined internally based on the fair value of the collateral relative to the carrying amount of the reinsurance recoverable,the frequency atwhich collateral is re

175、quired to be replenished and the potential for volatility in the collaterals fair value.B.Effective Exit of Variable Annuity Reinsurance BusinessThe Company entered into an agreement with Berkshire to effectively exit the variable annuity reinsurance business via a reinsurance transaction in 2013.Va

176、riable annuity contracts are accounted for as assumed and ceded reinsurance and categorized as market risk benefits as discussed in Note 9 to theConsolidated Financial Statements.Berkshire reinsured 100%of the Companys future cash flows in this business,net of other reinsurance arrangementsexisting

177、at that time.The reinsurance agreement is subject to an overall limit with approximately$3.0 billion remaining at June 30,2024.As a result of thereinsurance transaction,amounts payable are offset by a corresponding reinsurance recoverable,provided the increased recoverable remains within the overall

178、Berkshire limit.(In millions)Reinsurer June 30,2024December 31,2023Collateral and Other Termsat June 30,2024Berkshire$762$873 90%were secured by assets in a trust.Sun Life Assurance Company of Canada75 92 Liberty Re(Bermuda)Ltd.85 104 100%were secured by assets in a trust.SCOR SE27 31 75%were secure

179、d by a letter of credit.Market risk benefits$949$1,100 All reinsurers are rated A-equivalent and higher by an NRSRO.Includes incurred but not reported(IBNR)and outstanding claims of$22 million as of June 30,2024 and$19 million as of December 31,2023.These amounts are excluded from market riskbenefit

180、s as of June 30,2024 in Note 9 and Note 10A to the Consolidated Financial Statements.The impact of nonperformance risk(i.e.,the risk that a counterparty might default)on the variable annuity reinsurance asset was immaterial for the three andsix months ended June 30,2024 and June 30,2023.Note 11 Inve

181、stmentsThe Cigna Groups investment portfolio consists of a broad range of investments including debt securities,equity securities,commercial mortgage loans,policyloans,other long-term investments,short-term investments and derivative financial instruments.The sections below provide more detail regar

182、ding ourinvestment balances and realized investment gains and losses.See Note 12 to the Consolidated Financial Statements for information about the valuation of theCompanys investment portfolio.Further information about our accounting policies for investment assets can be found in Note 12 in the Com

183、panys 2023 Form10-K.The following table summarizes the Companys investments by category and current or long-term classification:June 30,2024December 31,2023(In millions)CurrentLong-termTotalCurrentLong-termTotalDebt securities$621$8,729$9,350$590$9,265$9,855 Equity securities26 1,582 1,608 31 3,331

184、3,362 Commercial mortgage loans191 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 investments324 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(94)

185、(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 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

186、alesser extent,other long-term investments.(1)(2)(1)(2)(1)(1)22A.Investment PortfolioDebt SecuritiesThe amortized cost and fair value by contractual maturity periods for debt securities were as follows as of June 30,2024:(In millions)AmortizedCostFairValueDue in one year or less$666$643 Due after on

187、e year through five years3,732 3,497 Due after five years through ten years3,175 2,945 Due after ten years2,137 1,913 Mortgage and other asset-backed securities387 352 Total$10,097$9,350 Actual maturities of these securities could differ from their contractual maturities used in the table above beca

188、use issuers may have the right to call or prepayobligations,with or without penalties.Gross unrealized appreciation(depreciation)on debt securities by type of issuer is shown below:(In millions)AmortizedCostAllowance forCredit LossUnrealizedAppreciationUnrealizedDepreciationFairValueJune 30,2024Fede

189、ral government and agency$288$18$(10)$296 State and local government37 1(1)37 Foreign government353 6(14)345 Corporate9,032(90)99(721)8,320 Mortgage and other asset-backed387 (35)352 Total$10,097$(90)$124$(781)$9,350 December 31,2023Federal government and agency$251$24$(8)$267 State and local govern

190、ment37 2(1)38 Foreign government355 10(13)352 Corporate9,338(33)158(630)8,833 Mortgage and other asset-backed398 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

191、is neededbased on criteria that include:severity of decline;financial health and specific prospects of the issuer;andchanges in the regulatory,economic or general market environment of the issuers industry or geographic region.23The table below summarizes debt securities with a decline in fair value

192、 from amortized cost for which an allowance for credit losses has not been recorded,byinvestment grade and the length of time these securities have been in an unrealized loss position.Unrealized depreciation on these debt securities is primarilydue to declines in fair value resulting from increasing

193、 interest rates since these securities were purchased.June 30,2024December 31,2023(Dollars in millions)FairValueAmortizedCostUnrealizedDepreciationNumberof IssuesFairValueAmortizedCostUnrealizedDepreciationNumberof IssuesOne year or lessInvestment grade$718$730$(12)301$330$338$(8)142 Below investmen

194、t grade123 127(4)334161 170(9)135 More than one yearInvestment grade5,273 5,971(698)1,5305,441 6,036(595)1,590 Below investment grade598 665(67)326701 775(74)486 Total$6,712$7,493$(781)2,491$6,633$7,319$(686)2,353 Equity SecuritiesThe following table provides the values of the Companys equity securi

195、ty investments:June 30,2024December 31,2023(In millions)CostCarrying Value CostCarrying ValueEquity securities with readily determinable fair values$655$46$656$51 Equity securities with no readily determinable fair value3,313 1,562 3,248 3,311 Total$3,968$1,608$3,904$3,362 We are a minority owner in

196、 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 ourinvestment in V

197、illageMD 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 inNet realized investment(losses)gains in the Companys Consolidated Statements of Income.Consistent with our strategy to invest in targeted startup and growth-st

198、age companies in the health care industry,approximately 90%of our investments inequity securities are in the health care sector.Commercial Mortgage LoansMortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type,location and borrower.Loans ar

199、egenerally 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.Theannual r

200、eview performed in the second quarter of 2024 confirmed ongoing strong overall credit quality in line with the previous years results.For moreinformation on the Companys accounting policies and methodologies regarding these investments,see Note 12 in the Companys 2023 Form 10-K.The following table s

201、ummarizes the credit risk profile of the Companys commercial mortgage loan portfolio:(Dollars in millions)June 30,2024December 31,2023Loan-to-Value RatioCarrying ValueAverage DebtService CoverageRatioAverage Loan-to-Value RatioCarrying ValueAverage DebtService CoverageRatioAverage Loan-to-Value Rati

202、oBelow 60%$685 2.15$802 2.1360%to 79%619 1.76574 1.7780%to 100%205 1.02157 0.65Total$1,509 1.8265%$1,533 1.8264%24Other Long-Term InvestmentsOther long-term investments include investments in unconsolidated entities,including certain limited partnerships and limited liability companies holding reale

203、state,securities or loans.These investments are carried at cost plus the Companys ownership percentage of reporting income or loss,based on the financialstatements of the underlying investments that are generally reported at fair value.Income or loss from these investments is reported on a one quart

204、er lag due tothe 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 flowestimates indicate that the

205、 carrying value may not be recoverable.Additionally,statutory and other restricted deposits and foreign currency swaps carried at fairvalue 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

206、 30,2024December 31,2023Real estate investments$1,724$1,606 Securities partnerships2,504 2,400 Other218 175 Total$4,446$4,181 B.Derivative Financial InstrumentsThe Company uses derivative financial instruments to manage the characteristics of investment assets(such as duration,yield,currency and liq

207、uidity)to meetthe varying demands of the related insurance and contractholder liabilities.The Company also uses derivative financial instruments to hedge the risk of changesin the net assets of certain of its foreign subsidiaries due to changes in foreign currency exchange rates and to hedge the int

208、erest rate risk of certain long-termdebt.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 havebeen no other material changes to the Companys derivative financial instruments during the six months ended

209、 June 30,2024.Please refer to the Companys2023 Form 10-K for further discussion of the types of derivative financial instruments and associated accounting policies.The effects of derivative financialinstruments used in our individual hedging strategies were not material to the Consolidated Financial

210、 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.C.Realized Investment Gains and LossesThe following realized gains and losses on investments exclude realized gains and

211、losses attributed to the Companys separate accounts because those gains andlosses generally accrue directly to separate account policyholders:Three Months Ended June 30,Six Months Ended June 30,(In millions)2024202320242023Net realized investment gains(losses),excluding credit(loss)/recovery and oth

212、er investmentwrite-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)Net realized investment losses for the three months ended June 30,2024 were primarily due to expected credit loss

213、charges on debt securities.Net realizedinvestment losses for the six months ended June 30,2024 were primarily driven by the impairment of equity securities in 2024.25Note 12 Fair Value MeasurementsThe Company carries certain financial instruments at fair value in the financial statements including d

214、ebt securities,certain equity securities,short-terminvestments and derivatives.Other financial instruments are measured at fair value only under certain conditions,such as when impaired or when there areobservable price changes for equity securities with no readily determinable fair value.Fair value

215、 is defined as the price at which an asset could be exchanged in an orderly transaction between market participants at the balance sheet date.Aliabilitys fair value is defined as the amount that would be paid to transfer the liability to a market participant,not the amount that would be paid to sett

216、le theliability with the creditor.The Companys financial assets and liabilities carried at fair value have been classified based upon a hierarchy defined by GAAP.The hierarchy gives thehighest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and

217、 liabilities(Level 1)and the lowest ranking tofair values determined using methodologies and models with unobservable inputs(Level 3).An assets or a liabilitys classification is based on the lowest levelof input that is significant to its measurement.For example,a financial asset or liability carrie

218、d at fair value would be classified in Level 3 if unobservableinputs were significant to the instruments fair value,even though the measurement may be derived using inputs that are both observable(Levels 1 and 2)andunobservable(Level 3).For a description of the policies,methods and assumptions that

219、are used to estimate fair value and determine the fair value hierarchy for each class of financialinstruments,see Note 13 in the Companys 2023 Form 10-K.A.Financial Assets and Financial Liabilities Carried at Fair ValueThe following table provides information about the Companys financial assets and

220、liabilities carried at fair value.Further information regarding insuranceassets and liabilities carried at fair value is provided in Note 9E to the Consolidated Financial Statements.Separate account assets are also recorded at fair valueon the Companys Consolidated Balance Sheets and are reported se

221、parately in the Separate Accounts section below as gains and losses related to these assetsgenerally accrue directly to contractholders:(In millions)Quoted Prices in Active Markets forIdentical Assets(Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)TotalJu

222、ne 30,2024December 31,2023June 30,2024December 31,2023June 30,2024December 31,2023June 30,2024December 31,2023Financial assets at fair valueDebt securitiesFederal government andagency$162$130$134$137$296$267 State and local government 37 38 37 38 Foreign government 345 352 345 352 Corporate 7,968 8,

223、432 352 401 8,320 8,833 Mortgage and other asset-backed 308 319 44 46 352 365 Total debt securities162 130 8,792 9,278 396 447 9,350 9,855 Equity securities 1 4 44 47 1 46 51 Short-term investments 324 206 324 206 Derivative assets 161 131 1 161 132 Financial liabilities at fairvalueDerivative liabi

224、lities$2$4$2$4 Excludes certain equity securities that have no readily determinable fair value.Level 3 Financial Assets and Financial LiabilitiesCertain inputs for instruments classified in Level 3 are unobservable(supported by little or no market activity)and significant to their resulting fair val

225、uemeasurement.Unobservable inputs reflect the Companys best estimate of what hypothetical market participants would use to determine a transaction price forthe asset or liability at the reporting date.Additionally,as discussed in Note 9E to the Consolidated Financial Statements,the Company classifie

226、s variableannuity assets and liabilities in Level 3 of the fair value hierarchy.(1)(1)26Quantitative Information about Unobservable InputsThe significant unobservable input used to value our corporate and government debt securities and mortgage and other asset-backed securities is an adjustmentfor l

227、iquidity.This adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security.The following table summarizes the fair value and significant unobservable inputs that were developed directly by the Company and used in pricing t

228、hese debtsecurities.The range and weighted average basis point amounts for liquidity reflect the Companys best estimates of the unobservable adjustments a marketparticipant would make to calculate these fair values.Fair Value as ofUnobservable Adjustment Range(WeightedAverage by Quantity)as of(Fair

229、value in millions)June 30,2024December 31,2023Unobservable Input June 30,2024June 30,2024December 31,2023Debt securitiesCorporate$352$401 Liquidity60-1340(270)bps70-1235(310)bpsMortgage and other asset-backed securities44 46 Liquidity115-595(300)bps95-640(310)bpsTotal Level 3 debt securities$396$447

230、 An increase in liquidity spread adjustments would result in a lower fair value measurement,while a decrease would result in a higher fair value measurement.Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair ValueThe following table summarizes the changes in financial asse

231、ts and financial liabilities classified in Level 3.Gains and losses reported in the table may includenet changes in fair value that are attributable to both observable and unobservable inputs.Three Months Ended June 30,Six Months Ended June 30,(In millions)2024202320242023Debt and Equity SecuritiesB

232、eginning balance$422$471$447$447 Losses included in Shareholders net income(40)(1)(61)Losses included in Other comprehensive loss(2)(5)(5)Purchases,sales and settlementsPurchases11 11 4 Settlements(1)(18)(15)(27)Total purchases,sales and settlements10(18)(4)(23)Transfers into/(out of)Level 3Transfer

233、s into Level 315 32 31 71 Transfers out of Level 3(8)(25)(11)(41)Total transfers into/(out of)Level 37 7 20 30 Ending balance$397$454$397$454 Total losses included in Shareholders net income attributable to instruments held at the reporting date$(41)$(1)$(61)$Change in unrealized gain or(loss)includ

234、ed in Other comprehensive loss for assets held at the end of thereporting period$(2)$(6)$(6)$(5)Total gains and losses included in Shareholders net income in the tables above are reflected in the Consolidated Statements of Income as Net realizedinvestment(losses)gains and Net investment income.Gains

235、 and losses included in Other comprehensive loss,net of tax in the tables above are reflected in Net unrealized appreciation on securities and derivativesin the Consolidated Statements of Comprehensive Income.Transfers into or out of the Level 3 category occur when unobservable inputs,such as the Co

236、mpanys best estimate of what a market participant would use todetermine a current transaction price,become more or less significant to the fair value measurement.Market activity typically decreases during periods ofeconomic uncertainty and this decrease in activity reduces the availability of market

237、 observable data.As a result,the level of unobservable judgment that mustbe applied to the pricing of certain instruments increases and is typically observed through the widening of liquidity spreads.Transfers between Level 2 andLevel 3 during 2024 and 202327primarily reflected changes in liquidity

238、estimates for certain private placement issuers across several sectors.See discussion under Quantitative Informationabout Unobservable Inputs above for more information.Separate AccountsThe investment income and fair value gains and losses of Separate account assets generally accrue directly to the

239、contractholders and,together with theirdeposits and withdrawals,are excluded from the Companys Consolidated Statements of Income and Cash Flows.The separate account activity for the sixmonths ended June 30,2024 and 2023 was primarily driven by changes in the market values of the underlying separate

240、account investments.Fair values of Separate account assets were as follows:Quoted Prices in Active Marketsfor Identical Assets(Level 1)Significant Other ObservableInputs(Level 2)Significant Unobservable Inputs(Level 3)Total(In millions)June 30,2024December 31,2023June 30,2024December 31,2023June 30,

241、2024December 31,2023June 30,2024December 31,2023Guaranteed separate accounts(See Note16)$229$226$343$352$572$578 Non-guaranteed separate accounts160 158 5,819 5,797 222 217 6,201 6,172 Subtotal$389$384$6,162$6,149$222$217 6,773 6,750 Non-guaranteed separate accounts priced atnet asset value(NAV)as a

242、 practicalexpedient 658 680 Total$7,431$7,430 Non-guaranteed separate accounts include$3.9 billion as of June 30,2024 and$4.0 billion as of December 31,2023 in assets supporting the Companys pension plans,including$0.2 billionclassified in Level 3 as of both June 30,2024 and December 31,2023.Separat

243、e account assets classified in Level 3 primarily support the Companys pension plans and include certain newly-issued,privately-placed,complex orilliquid securities that are priced using methods discussed above,as well as commercial mortgage loans.Activity,including transfers into and out of Level 3,

244、was not material for the three and six months ended June 30,2024 or 2023.Separate account investments in securities partnerships,real estate,real estate funds and hedge funds are generally valued based on the separate accountsownership share of the equity of the investee(NAV as a practical expedient

245、),including changes in the fair values of its underlying investments.Substantiallyall of these assets support the Companys pension plans.The following table provides additional information on these investments:Fair Value as ofUnfunded Commitment asof June 30,2024Redemption Frequency(if currently eli

246、gible)Redemption NoticePeriod(In millions)June 30,2024December 31,2023Securities partnerships$412$419$234 Not applicableNot applicableReal estate and real estate funds245 258 3 Quarterly30-90 daysHedge funds1 3 Up to annually,varying by fund30-90 daysTotal$658$680$237 As of June 30,2024,the Company

247、does not have plans to sell any of these assets at less than fair value.These investments are structured to satisfy longer-terminvestment objectives.Securities partnerships are contractually non-redeemable and the underlying investment assets are expected to be liquidated by the fundmanagers within

248、ten years after inception.B.Assets and Liabilities Measured at Fair Value under Certain ConditionsSome financial assets and liabilities are not carried at fair value,such as commercial mortgage loans that are carried at unpaid principal,investment real estatethat is carried at depreciated cost and e

249、quity securities with no readily determinable fair value when there are no observable market transactions.However,these financial assets and liabilities may be measured using fair value under certain conditions,such as when investments become impaired and are writtendown to their fair value,or when

250、there are observable price changes from orderly market transactions of equity securities that otherwise had no readilydeterminable fair value.In the first quarter of 2024,our equity investment in VillageMD was written down to an estimated fair value of$0.9 billion resulting in an investment loss of$

251、1.8 billion recorded in Net realized investment(losses)gains in the Companys Consolidated Statements of Income.For the three months ended June 30,2024and six months ended June 30,2023,impairments recognized requiring the assets(1)(1)(1)28and liabilities described above to be measured at fair value w

252、ere not material.Observable price changes for equity securities with no readily determinable fairvalue were not material for the three and six months ended June 30,2024 and June 30,2023.C.Fair Value Disclosures for Financial Instruments Not Carried at Fair ValueThe following table includes the Compa

253、nys financial instruments not recorded at fair value but for which fair value disclosure is required.In addition touniversal life products and finance leases,financial instruments that are carried in the Companys Consolidated Balance Sheets at amounts that approximate fairvalue are excluded from the

254、 following table:Classification inFair ValueHierarchyJune 30,2024December 31,2023(In millions)Fair ValueCarrying ValueFair ValueCarrying ValueCommercial mortgage loansLevel 3$1,402$1,509$1,430$1,533 Long-term debt,including current maturities,excluding finance leasesLevel 2$28,560$31,008$28,033$29,5

255、85 Note 13 Variable Interest EntitiesWe perform ongoing qualitative analyses of our involvement with variable interest entities to determine if consolidation is required.The Company determinedthat it was not a primary beneficiary in any material variable interest entity as of June 30,2024 or Decembe

256、r 31,2023.The Companys involvement withvariable interest entities for which it is not the primary beneficiary has not materially changed from December 31,2023.For details of our accounting policyfor variable interest entities and the composition of variable interest entities with which the Company i

257、s involved,refer to Note 14 in the Companys 2023 Form10-K.The Company has not provided,and does not intend to provide,financial support to any of these variable interest entities in excess of its maximumexposure.Note 14 Accumulated Other Comprehensive Income(Loss)Accumulated Other Comprehensive Inco

258、me(Loss)(AOCI)includes net unrealized appreciation on securities and derivatives,change in discount rate andinstrument-specific credit risk for certain long-duration insurance contractholder liabilities(Note 9 to the Consolidated Financial Statements),foreign currencytranslation and the net postreti

259、rement benefits liability adjustment.AOCI includes the Companys share from unconsolidated entities reported on the equitymethod.Generally,tax effects in AOCI are established at the currently enacted tax rate and reclassified to Shareholders net income in the same period that therelated pre-tax AOCI

260、reclassifications are recognized.Shareholders other comprehensive loss,net of tax,for the three and six months ended June 30,2024 and June 30,2023,is primarily attributable to the changein discount rates for certain long-duration liabilities(following the adoption of Targeted Improvements to the Acc

261、ounting for Long-Duration Contracts in 2023)and unrealized changes in the market values of securities and derivatives,including the impacts from unconsolidated entities reported on the equity method.Changes in the components of AOCI were as follows:Three Months Ended June 30,Six Months Ended June 30

262、,(In millions)2024202320242023Securities and DerivativesBeginning balance$292$(138)$171$(332)Unrealized appreciation on securities and derivatives106 7 249 259 Tax(expense)(29)(12)(68)(66)Net unrealized appreciation(depreciation)on securities and derivatives77(5)181 193 Reclassification adjustment f

263、or losses included in Shareholders net income(Net realized investment(losses)gains)39 31 61 26 Reclassification adjustment for tax(benefit)included in Shareholders net income(8)(6)(13)(5)Net losses reclassified from AOCI to Shareholders net income31 25 48 21 Other comprehensive income,net of tax108

264、20 229 214 Ending balance$400$(118)$400$(118)29Three Months Ended June 30,Six Months Ended June 30,(In millions)2024202320242023Net long-duration insurance and contractholder liabilities measurement adjustmentsBeginning balance$(1,531)$(587)$(971)$(256)Current period change in discount rate for cert

265、ain long-duration liabilities(288)(147)(1,020)(558)Tax benefit76 36 262 137 Net current period change in discount rate for certain long-duration liabilities(212)(111)(758)(421)Current period change in instrument-specific credit risk for market risk benefits(7)(18)(33)Tax benefit 1 4 6 Net current pe

266、riod change in instrument-specific credit risk for market risk benefits(6)(14)(27)Other comprehensive(loss),net of tax(212)(117)(772)(448)Ending balance$(1,743)$(704)$(1,743)$(704)Three Months Ended June 30,Six Months Ended June 30,(In millions)2024202320242023Translation of foreign currenciesBeginn

267、ing balance$(175)$(138)$(149)$(154)Translation of foreign currencies(4)(20)(28)(5)Tax(expense)benefit(1)1(3)2 Shareholders other comprehensive income(loss),net of tax(5)(19)(31)(3)Ending balance$(180)$(157)$(180)$(157)Three Months Ended June 30,Six Months Ended June 30,(In millions)2024202320242023P

268、ostretirement benefits liabilityBeginning balance$(910)$(906)$(915)$(916)Reclassification adjustment for amortization of net prior actuarial losses and prior service costs(Interestexpense and other)7 11 15 24 Reclassification adjustment for tax(benefit)included in Shareholders net income(3)(3)(6)Net

269、 adjustments reclassified from AOCI to Shareholders net income7 8 12 18 Valuation update(20)(2)(20)(2)Tax benefit4 1 4 1 Net change due to valuation update(16)(1)(16)(1)Other comprehensive(loss)income,net of tax(9)7(4)17 Ending balance$(919)$(899)$(919)$(899)Three Months Ended June 30,Six Months End

270、ed June 30,(In millions)2024202320242023Total Accumulated other comprehensive lossBeginning balance$(2,324)$(1,769)$(1,864)$(1,658)Shareholders other comprehensive(loss),net of tax(118)(109)(578)(220)Ending balance$(2,442)$(1,878)$(2,442)$(1,878)Note 15 Income TaxesIncome Tax ExpenseThe 18.1%effecti

271、ve tax rate for the three months ended June 30,2024 was lower than the 19.9%rate for the three months ended June 30,2023,primarily as aresult of decreases in state taxes following a favorable state audit resolution.The 31.5%effective tax rate for the six months ended June 30,2024 was higherthan the

272、19.2%rate for the six months ended June 30,2023 largely driven by an increase for a valuation allowance relative to the impairment of equitysecurities,partially offset by decreases in state taxes and a decrease relative to the businesses held for sale.30As of June 30,2024,we had approximately$689 mi

273、llion in deferred tax assets(DTAs)associated with the impairment of equity securities,as well asunrealized investment losses that are partially recorded in Accumulated other comprehensive loss.A valuation allowance of$422 million,established in the sixmonths ended June 30,2024,drove the higher effec

274、tive tax rate and was almost entirely related to the impairment of equity securities discussed in Note 11.Forthe remainder of the DTAs,we have determined that a valuation allowance is not currently required based on the Companys ability to carry back losses andour ability and intent to hold certain

275、securities until recovery.We continue to monitor and evaluate the need for any additional valuation allowance.Note 16 Contingencies and Other MattersThe Company,through its subsidiaries,is contingently liable for various guarantees provided in the ordinary course of business.A.Financial Guarantees:R

276、etiree and Life Insurance BenefitsThe Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree benefits.For the majority of these benefits,thesponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefit

277、s and are required to maintain assets that exceed acertain percentage of benefit obligations.If employers fail to do so,the Company or an affiliate of the buyer of the retirement benefits business has the right toredirect the management of the related assets to provide for benefit payments.As of Jun

278、e 30,2024,employers maintained assets that generally exceeded thebenefit obligations under these arrangements of approximately$410 million.An additional liability is established if management believes that the Companywill be required to make payments under the guarantees;there were no additional lia

279、bilities required for these guarantees,net of reinsurance,as of June 30,2024.Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy.The Company does not expect that these financial guarantees will have a material effect on the Companys c

280、onsolidated results of operations,liquidity orfinancial condition.B.Certain Other GuaranteesThe Company had indemnification obligations as of June 30,2024 in connection with acquisition and disposition transactions.These indemnificationobligations are triggered by the breach of representations or co

281、venants provided by the Company,such as representations for the presentation of financialstatements,filing of tax returns,compliance with laws or regulations or identification of outstanding litigation.These obligations are typically subject tovarious time limitations,defined by the contract or by o

282、peration of law,such as statutes of limitation.In some cases,the maximum potential amount due issubject to contractual limitations based on a stated dollar amount or a percentage of the transaction purchase price,while in other cases limitations are notspecified or applicable.The Company does not be

283、lieve that it is possible to determine the maximum potential amount due under these obligations because notall amounts due under these indemnification obligations are subject to limitation.There were no recorded liabilities for these indemnification obligations as ofJune 30,2024.C.Guaranty Fund Asse

284、ssmentsThe Company operates in a regulatory environment that may require its participation in assessments under state insurance guaranty association laws.TheCompanys exposure to assessments for certain obligations of insolvent insurance companies to policyholders and claimants is based on its share

285、of businesswritten in the relevant jurisdictions.There were no material charges or credits resulting from existing or new guaranty fund assessments for the six months ended June 30,2024.D.Legal and Regulatory MattersThe Company is routinely involved in numerous claims,lawsuits,regulatory inquiries a

286、nd audits,government investigations,including under the federal FalseClaims Act and state false claims acts initiated by a government investigating body or by a qui tam relators filing of a complaint under court seal,and otherlegal matters arising,for the most part,in the ordinary course of managing

287、 a global health services business.Additionally,the Company has received and iscooperating with subpoenas or similar processes from various governmental agencies requesting information,all arising in the normal course of its business.Disputed tax matters arising from audits by the Internal Revenue S

288、ervice or other state and foreign jurisdictions,including those resulting in litigation,areaccounted for under GAAP guidance for uncertain tax positions.Pending litigation and legal or regulatory matters that the Company has identified with a reasonably possible material loss and certain other mater

289、ial litigationmatters are described below.For those matters that the Company has identified with a reasonably possible material loss,the Company provides disclosure inthe aggregate of accruals and range of loss,or a statement that such information31cannot be estimated.The Companys accrual for the ma

290、tter discussed below under Litigation Matters is not material.Due to numerous uncertain factorspresented in this case,it is not possible to estimate an aggregate range of loss(if any)for this matter at this time.In light of the uncertainties involved in thismatter,there is no assurance that its ulti

291、mate resolution will not exceed the amount currently accrued by the Company.An adverse outcome in this matter couldbe material to the Companys results of operations,financial condition or liquidity for any particular period.The outcomes of lawsuits are inherentlyunpredictable and we may be unsuccess

292、ful in this ongoing litigation matter or any future claims or litigation.Litigation MattersExpress Scripts Litigation with Elevance.In March 2016,Elevance filed a lawsuit in the United States District Court for the Southern District of New Yorkalleging various breach of contract claims against Expre

293、ss Scripts relating to the parties rights and obligations under the periodic pricing review section of thepharmacy benefit management agreement between the parties including allegations that Express Scripts failed to negotiate new pricing concessions in goodfaith,as well as various alleged service i

294、ssues.Elevance also requested that the court enter declaratory judgment that Express Scripts is required to provideElevance competitive benchmark pricing,that Elevance can terminate the agreement and that Express Scripts is required to provide Elevance with post-termination services at competitive b

295、enchmark pricing for one year following any termination by Elevance.Elevance claimed it is entitled to$13 billion inadditional pricing concessions over the remaining term of the agreement,as well as$1.8 billion for one year following any contract termination by Elevanceand$150 million damages for se

296、rvice issues(Elevances Allegations).On April 19,2016,in response to Elevances complaint,Express Scripts filed itsanswer denying Elevances Allegations in their entirety and asserting affirmative defenses and counterclaims against Elevance.The court subsequently grantedElevances motion to dismiss two

297、of six counts of Express Scripts amended counterclaims.Express Scripts filed its Motion for Summary Judgment on August27,2021.Elevance completed filing of its Response to Express Scripts Motion for Summary Judgment on October 16,2021.Express Scripts filed its Reply inSupport of its Motion for Summar

298、y Judgment on November 19,2021.On March 31,2022,the court granted summary judgment in favor of Express Scripts onall of Elevances pricing claims for damages totaling$14.8 billion and on most of Elevances claims relating to service issues.Elevances only remainingservice claims relate to the review or

299、 processing of prior authorizations,with alleged damages over$100 million.On November 1,2023,the parties signed asettlement agreement pursuant to which Express Scripts agreed to resolve the service-related claims.The settlement agreement is not an admission of liabilityor fault by Express Scripts,th

300、e Company or its subsidiaries.Following the settlement,Elevance retained the right to appeal the pricing-related claims that werepreviously dismissed by the court and Express Scripts retained the ability to reassert its own pricing-related claims in the event any appeal by Elevance issuccessful.Elev

301、ance filed its Notice of Appeal of its pricing-related claims on December 12,2023.Elevance filed its opening appellate brief on April 24,2024.Express Scripts filed its answering appellate brief on July 24,2024.Note 17 Segment InformationSee Note 1 to the Consolidated Financial Statements for a descr

302、iption of our segments.A description of our basis for reporting segment operating results isoutlined below.Intersegment revenues primarily reflect pharmacy and care services transactions between the Evernorth Health Services and Cigna Healthcaresegments.The Company uses pre-tax adjusted income(loss)

303、from operations and adjusted revenues as its principal financial measures of segment operatingperformance because management believes these metrics best reflect the underlying results of business operations and permit analysis of trends in underlyingrevenue,expenses and profitability.We define pre-t

304、ax adjusted income(loss)from operations as income(loss)before income taxes excluding pre-tax income(loss)attributable to noncontrolling interests,net realized investment results,amortization of acquired intangible assets and special items.The Cigna Groupsshare of certain realized investment results

305、of its joint ventures reported in the Cigna Healthcare segment using the equity method of accounting are alsoexcluded.Special items are matters that management believes are not representative of the underlying results of operations due to their nature or size.Adjustedincome(loss)from operations is m

306、easured on an after-tax basis for consolidated results and on a pre-tax basis for segment results.The Company defines adjusted revenues as total revenues excluding the following adjustments:special items and The Cigna Groups share of certain realizedinvestment results of its joint ventures reported

307、in the Cigna Healthcare segment using the equity method of accounting.Special items are matters thatmanagement believes are not representative of the underlying results of operations due to their nature or size.We exclude these items from this measurebecause management believes they are not indicati

308、ve of past or future underlying performance of the business.The Company does not report total assets by segment because this is not a metric used to allocate resources or evaluate segment performance.32The following table presents the special items charges(benefits)recorded by the Company,as well as

309、 the respective financial statement line items impacted:Three Months Ended June 30,Six Months Ended June 30,2024202320242023(In millions)Pre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-taxPre-taxAfter-taxIntegration and transaction-related costs(Selling,general and administrative expenses)$63$47$6$5$10

310、0$76$7$6 Loss(gain)on sale of businesses 19(43)Deferred tax expenses,net(Income taxes,less amount attributable to noncontrollinginterests)17 34 Total impact from special items$63$64$6$5$119$67$7$6 33Summarized segment financial information was as follows:(In millions)EvernorthHealth ServicesCignaHea

311、lthcareOtherOperationsCorporate andEliminationsTotalThree months ended June 30,2024Revenues from external customers$48,251$11,821$130$60,202 Intersegment revenues1,232 1,203 20(2,455)Net investment income65 172 77 7 321 Total revenues49,548 13,196 227(2,448)60,523 Net realized investment results fro

312、m certain equity method investments(53)(53)Adjusted revenues$49,548$13,143$227$(2,448)$60,470 Income(loss)before income taxes$1,299$1,205$(17)$(498)$1,989 Pre-tax adjustments to reconcile to adjusted income from operations(Income)attributable to noncontrolling interests(95)(95)Net realized investmen

313、t(gains)losses(1)(5)1 (5)Amortization of acquired intangible assets416 4 420 Special itemsIntegration and transaction-related costs 63 63 Pre-tax adjusted income(loss)from operations$1,619$1,204$(16)$(435)$2,372(In millions)EvernorthHealth ServicesCignaHealthcareOtherOperationsCorporate andEliminati

314、onsTotalThree months ended June 30,2023Revenues from external customers$36,721$11,505$82$48,308 Intersegment revenues1,422 1,044 (2,466)Net investment income62 135 76 5 278 Total revenues38,205 12,684 158(2,461)48,586 Net realized investment results from certain equity method investments 30 30 Adjus

315、ted revenues$38,205$12,714$158$(2,461)$48,616 Income(loss)before income taxes$1,128$1,156$29$(429)$1,884 Pre-tax adjustments to reconcile to adjusted income from operations(Income)attributable to noncontrolling interests(54)(1)(55)Net realized investment(gains)losses(1)5 4 Amortization of acquired i

316、ntangible assets443 12 455 Special itemsIntegration and transaction-related costs 6 6 Pre-tax adjusted income(loss)from operations$1,516$1,172$29$(423)$2,294 Includes Net realized investment losses/gains as presented in our Consolidated Statements of Income,as well as the Companys share of certain r

317、ealized investment results of its joint venturesreported in the Cigna Healthcare segment using the equity method of accounting,which are presented within Fees and other revenues in our Consolidated Statements of Income.(1)(1)(1)34(In millions)EvernorthHealth ServicesCignaHealthcareOtherOperationsCor

318、porate andEliminationsTotalSix months ended June 30,2024Revenues from external customers$93,137$23,833$196$1$117,167 Intersegment revenues2,513 2,327 45(4,885)Net investment income124 321 152 14 611 Total revenues95,774 26,481 393(4,870)117,778 Net realized investment results from certain equity met

319、hod investments(61)(61)Adjusted revenues$95,774$26,420$393$(4,870)$117,717 Income(loss)before income taxes$863$2,148$1$(944)$2,068 Pre-tax adjustments to reconcile to adjusted income from operations(Income)attributable to noncontrolling interests(172)(172)Net realized investment losses 1,455 367 1 1

320、,823 Amortization of acquired intangible assets833 10 843 Special itemsIntegration and transaction-related costs 100 100 Loss on sale of businesses 19 19 Pre-tax adjusted income(loss)from operations$2,979$2,544$2$(844)$4,681(In millions)EvernorthHealth ServicesCignaHealthcareOtherOperationsCorporate

321、 andEliminationsTotalSix months ended June 30,2023Revenues from external customers$71,232$23,155$161$94,548 Intersegment revenues3,040 2,007 (5,047)Net investment income112 278 154 11 555 Total revenues74,384 25,440 315(5,036)95,103 Net realized investment results from certain equity method investme

322、nts(8)(8)Adjusted revenues$74,384$25,432$315$(5,036)$95,095 Income(loss)before income taxes$2,046$2,233$50$(844)$3,485 Pre-tax adjustments to reconcile to adjusted income from operations(Income)attributable to noncontrolling interests(96)(2)(98)Net realized investment(gains)losses(1)29(6)22 Amortiza

323、tion of acquired intangible assets887 27 914 Special itemsIntegration and transaction-related costs 7 7 Pre-tax adjusted income(loss)from operations$2,836$2,287$44$(837)$4,330 Includes Net realized investment losses/gains as presented in our Consolidated Statements of Income,as well as the Companys

324、share of certain realized investment results of its joint venturesreported in the Cigna Healthcare segment using the equity method of accounting,which are presented within Fees and other revenues in our Consolidated Statements of Income.(1)(1)(1)35Revenue from external customers includes Pharmacy re

325、venues,Premiums and Fees and other revenues.The following table presents these revenues byproduct,premium and service type:Three Months Ended June 30,Six Months Ended June 30,(In millions)2024202320242023Products(Pharmacy revenues)(ASC 606)Network revenues$25,276$16,406$49,442$32,154 Home delivery a

326、nd specialty revenues18,017 16,594 34,475 32,619 Other revenues2,897 2,249 5,443 4,116 Total Evernorth Health Services46,190 35,249 89,360 68,889 Total Other Operations16 33 Intercompany eliminations(1,105)(1,285)(2,256)(2,781)Total Pharmacy revenues45,101 33,964 87,137 66,108 Insurance premiums(ASC

327、 944)Cigna Healthcare U.S.HealthcareEmployer insured4,350 4,091 8,743 8,171 Medicare Advantage2,207 2,180 4,494 4,416 Stop loss1,665 1,514 3,333 3,017 Individual and Family Plans975 1,293 2,015 2,501 Other1,220 1,047 2,478 2,164 U.S.Healthcare10,417 10,125 21,063 20,269 International Health891 820 1

328、,776 1,606 Total Cigna Healthcare11,308 10,945 22,839 21,875 Other115 76 163 155 Intercompany eliminations31 18 55 34 Total Premiums11,454 11,039 23,057 22,064 Services(Fees)(ASC 606)Evernorth Health Services3,251 2,838 6,194 5,337 Cigna Healthcare1,608 1,602 3,179 3,208 Other Operations17 1 42 2 Ot

329、her revenues152 63 242 129 Intercompany eliminations(1,381)(1,199)(2,684)(2,300)Total Fees and other revenues3,647 3,305 6,973 6,376 Total revenues from external customers$60,202$48,308$117,167$94,548 Cigna Healthcare includes the U.S.Healthcare and International Health operating segments,which prov

330、ide comprehensive medical and coordinated solutions to clients and customers.During thefourth quarter of 2023,the U.S.Commercial and U.S.Government operating segments merged to form the U.S.Healthcare operating segment.Information presented for the three and six monthsended June 30,2023 has been res

331、tated to conform to the new operating segment presentation.Financial and performance guarantees.Evernorth Health Services may also provide certain financial and performance guarantees,including a minimum levelof discounts a client may receive,generic utilization rates and various service levels.Clie

332、nts may be entitled to receive compensation if we fail to meet theguarantees.Actual performance is compared to the contractual guarantee for each measure throughout the period and the Company defers revenue for anyestimated payouts within Accrued expenses and other liabilities(current).These estimat

333、es are adjusted and paid following the end of the annual guaranteeperiod.Historically,adjustments to original estimates have not been material.This guarantee liability was$1.7 billion as of June 30,2024 and$1.6 billion as ofDecember 31,2023.Major customers.Revenues from a single pharmacy benefit client were approximately 16%of consolidated revenues for both the three and six months endedJune 30,20