(State or other jurisdiction | (I.R.S. Employer | ||||
of incorporation or organization) | Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller Reporting Company | |||||||||
Emerging growth company |
Page | ||||||||
Cigna Corporation Consolidated Statements of Income | |||||||||||
Unaudited | |||||||||||
Three Months Ended March 31, | |||||||||||
(In millions, except per share amounts) | 2021 | 2020 | |||||||||
Revenues | |||||||||||
Pharmacy revenues | $ | $ | |||||||||
Premiums | |||||||||||
Fees and other revenues | |||||||||||
Net investment income | |||||||||||
TOTAL REVENUES | |||||||||||
Benefits and expenses | |||||||||||
Pharmacy and other service costs | |||||||||||
Medical costs and other benefit expenses | |||||||||||
Selling, general and administrative expenses | |||||||||||
Amortization of acquired intangible assets | |||||||||||
TOTAL BENEFITS AND EXPENSES | |||||||||||
Income from operations | |||||||||||
Interest expense and other | ( | ( | |||||||||
Debt extinguishment costs | ( | ( | |||||||||
Net realized investment gains (losses) | ( | ||||||||||
Income before income taxes | |||||||||||
TOTAL INCOME TAXES | |||||||||||
Net income | |||||||||||
Less: Net income attributable to noncontrolling interests | |||||||||||
SHAREHOLDERS' NET INCOME | $ | $ | |||||||||
Shareholders’ net income per share | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ |
Cigna Corporation Consolidated Statements of Comprehensive Income | ||||||||||||||
Unaudited | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Net income | $ | $ | ||||||||||||
Other comprehensive loss, net of tax | ||||||||||||||
Net unrealized appreciation (depreciation) on securities and derivatives | ( | ( | ||||||||||||
Net translation gains (losses) on foreign currencies | ( | ( | ||||||||||||
Postretirement benefits liability adjustment | ||||||||||||||
Other comprehensive loss, net of tax | ( | ( | ||||||||||||
Total comprehensive income | ||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | ||||||||||||||
Net income attributable to redeemable noncontrolling interest | ||||||||||||||
Net income attributable to other noncontrolling interests | ||||||||||||||
Other comprehensive (loss) attributable to redeemable noncontrolling interest | ( | ( | ||||||||||||
Total comprehensive income attributable to noncontrolling interests | ||||||||||||||
SHAREHOLDERS' COMPREHENSIVE INCOME | $ | $ |
Cigna Corporation Consolidated Balance Sheets | ||||||||||||||
Unaudited | ||||||||||||||
As of March 31, | As of December 31, | |||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Investments | ||||||||||||||
Accounts receivable, net | ||||||||||||||
Inventories | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Long-term investments | ||||||||||||||
Reinsurance recoverables | ||||||||||||||
Deferred policy acquisition costs | ||||||||||||||
Property and equipment | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets | ||||||||||||||
Other assets | ||||||||||||||
Separate account assets | ||||||||||||||
TOTAL ASSETS | $ | $ | ||||||||||||
Liabilities | ||||||||||||||
Current insurance and contractholder liabilities | $ | $ | ||||||||||||
Pharmacy and other service costs payable | ||||||||||||||
Accounts payable | ||||||||||||||
Accrued expenses and other liabilities | ||||||||||||||
Short-term debt | ||||||||||||||
Total current liabilities | ||||||||||||||
Non-current insurance and contractholder liabilities | ||||||||||||||
Deferred tax liabilities, net | ||||||||||||||
Other non-current liabilities | ||||||||||||||
Long-term debt | ||||||||||||||
Separate account liabilities | ||||||||||||||
TOTAL LIABILITIES | ||||||||||||||
Contingencies — Note 15 | ||||||||||||||
Redeemable noncontrolling interests | ||||||||||||||
Shareholders’ equity | ||||||||||||||
Common stock (1) | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Less: treasury stock, at cost | ( | ( | ||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | ||||||||||||||
Other noncontrolling interests | ||||||||||||||
Total equity | ||||||||||||||
Total liabilities and equity | $ | $ |
Cigna Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Statements of Changes in Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) | Retained Earnings | Treasury Stock | Shareholders’ Equity | Other Non- controlling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Effect of issuing stock for employee benefit plans | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends declared (per share: $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other transactions impacting noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) | Retained Earnings | Treasury Stock | Shareholders’ Equity | Other Non- controlling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of issuing stock for employee benefit plans | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common dividends declared (per share: $ | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other transactions impacting noncontrolling interests | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | $ |
Unaudited | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Cash Flows from Operating Activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Realized investment (gains) losses, net | ( | |||||||||||||
Deferred income tax (benefit) | ( | ( | ||||||||||||
Debt extinguishment costs | ||||||||||||||
Net changes in assets and liabilities, net of non-operating effects: | ||||||||||||||
Accounts receivable | ( | ( | ||||||||||||
Inventories | ||||||||||||||
Deferred policy acquisition costs | ( | ( | ||||||||||||
Reinsurance recoverable and Other assets | ( | |||||||||||||
Insurance liabilities | ||||||||||||||
Pharmacy and other service costs payable | ||||||||||||||
Accounts payable and Accrued expenses and other liabilities | ( | |||||||||||||
Other, net | ||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | ||||||||||||||
Cash Flows from Investing Activities | ||||||||||||||
Proceeds from investments sold: | ||||||||||||||
Debt securities and equity securities | ||||||||||||||
Investment maturities and repayments: | ||||||||||||||
Debt securities and equity securities | ||||||||||||||
Commercial mortgage loans | ||||||||||||||
Other sales, maturities and repayments (primarily short-term and other long-term investments) | ||||||||||||||
Investments purchased or originated: | ||||||||||||||
Debt securities and equity securities | ( | ( | ||||||||||||
Other (primarily short-term and other long-term investments) | ( | ( | ||||||||||||
Property and equipment purchases, net | ( | ( | ||||||||||||
Other, net | ||||||||||||||
NET CASH (USED IN) INVESTING ACTIVITIES | ( | ( | ||||||||||||
Cash Flows from Financing Activities | ||||||||||||||
Deposits and interest credited to contractholder deposit funds | ||||||||||||||
Withdrawals and benefit payments from contractholder deposit funds | ( | ( | ||||||||||||
Net change in short-term debt | ( | ( | ||||||||||||
Payments for debt extinguishment | ( | ( | ||||||||||||
Repayment of long-term debt | ( | ( | ||||||||||||
Net proceeds on issuance of long-term debt | ||||||||||||||
Repurchase of common stock | ( | ( | ||||||||||||
Issuance of common stock | ||||||||||||||
Common stock dividend paid | ( | |||||||||||||
Other, net | ( | |||||||||||||
NET CASH (USED IN) FINANCING ACTIVITIES | ( | ( | ||||||||||||
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | ( | ( | ||||||||||||
Net (decrease) in cash, cash equivalents and restricted cash | ( | ( | ||||||||||||
Cash, cash equivalents and restricted cash January 1, (1) | ||||||||||||||
Cash, cash equivalents and restricted cash, March 31, | ||||||||||||||
Cash reclassified to assets of business held for sale | ( | |||||||||||||
Cash, cash equivalents and restricted cash March 31, per Consolidated Balance Sheets (2) | $ | $ | ||||||||||||
Supplemental Disclosure of Cash Information: | ||||||||||||||
Income taxes paid, net of refunds | $ | $ | ||||||||||||
Interest paid | $ | $ |
Unaudited | |||||||||||
As of March 31, | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents, included in other long-term investments | |||||||||||
Total cash, cash equivalents and restricted cash and cash equivalents | $ | $ |
Note Number | Footnote | Page | ||||||
BUSINESS AND CAPITAL STRUCTURE | ||||||||
INSURANCE INFORMATION | ||||||||
INVESTMENTS | ||||||||
PROPERTY, LEASES AND OTHER ASSET BALANCES | ||||||||
COMPLIANCE, REGULATION AND CONTINGENCIES | ||||||||
RESULTS DETAILS | ||||||||
(In millions) | March 31, 2021 | December 31, 2020 | |||||||||
Noninsurance customer receivables | $ | $ | |||||||||
Pharmaceutical manufacturers receivable | |||||||||||
Insurance customer receivables | |||||||||||
Other receivables | |||||||||||
Total | $ | $ |
Three Months Ended | |||||||||||||||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | ||||||||||||||||||||||||||||||||||
(Shares in thousands, dollars in millions, except per share amounts) | Basic | Effect of Dilution | Diluted | Basic | Effect of Dilution | Diluted | |||||||||||||||||||||||||||||
Shareholders’ net income | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
Shares: | |||||||||||||||||||||||||||||||||||
Weighted average | |||||||||||||||||||||||||||||||||||
Common stock equivalents | |||||||||||||||||||||||||||||||||||
Total shares | |||||||||||||||||||||||||||||||||||
EPS | $ | $ | ( | $ | $ | $ | ( | $ |
Three Months Ended March 31, | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Anti-dilutive options |
(In millions) | March 31, 2021 | December 31, 2020 | ||||||||||||
Short-term debt | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
Commercial paper | ||||||||||||||
Other, including finance leases | ||||||||||||||
Total short-term debt | $ | $ | ||||||||||||
Long-term debt | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
$ | ||||||||||||||
Other, including finance leases | ||||||||||||||
Total long-term debt | $ | $ |
Principal | Maturity Date | Interest Rate | Net Proceeds | |||||||||||||||||
$ | March 15, 2024 | $ | ||||||||||||||||||
$ | March 15, 2026 | $ | ||||||||||||||||||
$ | March 15, 2031 | $ | ||||||||||||||||||
$ | March 15, 2051 | $ |
March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||||||||||||||||||||||
(In millions) | Current | Non-current | Total | Current | Non-current | Total | Total | ||||||||||||||||||||||||||||||||||
Contractholder deposit funds | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Future policy benefits | |||||||||||||||||||||||||||||||||||||||||
Unearned premiums | |||||||||||||||||||||||||||||||||||||||||
Unpaid claims and claim expenses | |||||||||||||||||||||||||||||||||||||||||
U.S. Medical | |||||||||||||||||||||||||||||||||||||||||
Other segments | |||||||||||||||||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||||||||
Insurance and contractholder liabilities classified as liabilities of business held for sale (1) | ( | ||||||||||||||||||||||||||||||||||||||||
Total insurance and contractholder liabilities | $ | $ | $ | $ | $ | $ | $ |
Three Months Ended | |||||||||||
(In millions) | March 31, 2021 | March 31, 2020 | |||||||||
Beginning balance | $ | $ | |||||||||
Less: Reinsurance and other amounts recoverable | |||||||||||
Beginning balance, net | |||||||||||
Incurred costs related to: | |||||||||||
Current year | |||||||||||
Prior years | ( | ( | |||||||||
Total incurred | |||||||||||
Paid costs related to: | |||||||||||
Current year | |||||||||||
Prior years | |||||||||||
Total paid | |||||||||||
Ending balance, net | |||||||||||
Add: Reinsurance and other amounts recoverable | |||||||||||
Ending balance | $ | $ |
Three Months Ended | ||||||||||||||||||||||||||
(Dollars in millions) | March 31, 2021 | March 31, 2020 | ||||||||||||||||||||||||
$ | %(1) | $ | %(2) | |||||||||||||||||||||||
Actual completion factors | $ | % | $ | % | ||||||||||||||||||||||
Medical cost trend | ||||||||||||||||||||||||||
Total favorable variance | $ | % | $ | % |
(In millions) | March 31, 2021 | March 31, 2020 | |||||||||
Other Operations | |||||||||||
Group Disability and Life | $ | $ | |||||||||
Other Operations | |||||||||||
Total Other Operations | |||||||||||
International Markets | |||||||||||
Unpaid claims and claim expenses Other Operations and International Markets | $ | $ |
Three Months Ended | |||||||||||
(In millions) | March 31, 2021 | March 31, 2020 (1) | |||||||||
Beginning balance | $ | $ | |||||||||
Less: Reinsurance | |||||||||||
Beginning balance, net | |||||||||||
Incurred claims related to: | |||||||||||
Current year | |||||||||||
Prior years: | |||||||||||
Interest accretion | |||||||||||
All other incurred | ( | ||||||||||
Total incurred | |||||||||||
Paid claims related to: | |||||||||||
Current year | |||||||||||
Prior years | |||||||||||
Total paid | |||||||||||
Foreign currency | ( | ( | |||||||||
Ending balance, net | |||||||||||
Add: Reinsurance | |||||||||||
Ending balance | $ | $ |
(Dollars in millions) | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Collateral provisions exist that may mitigate risk of credit loss(3) | No collateral | Total | ||||||||||||||||||||||
Ongoing Operations | ||||||||||||||||||||||||||
Upper-medium grade and higher (1) | $ | $ | $ | $ | ||||||||||||||||||||||
Lower-medium grade (2) | ||||||||||||||||||||||||||
Not rated | ||||||||||||||||||||||||||
Total recoverables related to ongoing operations | ||||||||||||||||||||||||||
Acquisition, disposition or runoff activities | ||||||||||||||||||||||||||
Upper-medium grade and higher (1) | ||||||||||||||||||||||||||
Lincoln National Life and Lincoln Life & Annuity of New York | ||||||||||||||||||||||||||
Berkshire | ||||||||||||||||||||||||||
Prudential Retirement Insurance and Annuity | ||||||||||||||||||||||||||
Life Insurance Company of North America | ||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||
Not rated | ||||||||||||||||||||||||||
Total recoverables related to acquisition, disposition or runoff activities | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||
Allowance for uncollectible reinsurance | ( | |||||||||||||||||||||||||
Total reinsurance recoverables | $ |
Three Months Ended March 31, | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Total ceded premiums | $ | $ | |||||||||
Total reinsurance recoveries | $ | $ |
(Dollars in millions, excludes impact of reinsurance ceded) | March 31, 2021 | December 31, 2020 | |||||||||
Account value | $ | $ | |||||||||
Net amount at risk | $ | $ | |||||||||
Number of contractholders (estimated) |
(In millions) | ||||||||||||||||||||||||||
Line of Business | Reinsurer | March 31, 2021 | December 31, 2020 | Collateral and Other Terms at March 31, 2021 | ||||||||||||||||||||||
GMIB | Berkshire | $ | $ | |||||||||||||||||||||||
Sun Life Assurance Company of Canada | ||||||||||||||||||||||||||
Liberty Re (Bermuda) Ltd. | ||||||||||||||||||||||||||
Total GMIB recoverables reported in Other current assets and Other assets | $ | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||
(In millions) | Current | Long-term | Total | Current | Long-term | Total | ||||||||||||||||||||||||||||||||
Debt securities | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | ||||||||||||||||||||||||||||||||||||||
Policy loans | ||||||||||||||||||||||||||||||||||||||
Other long-term investments | ||||||||||||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
(In millions) | Amortized Cost | Fair Value | ||||||||||||
Due in one year or less | $ | $ | ||||||||||||
Due after one year through five years | ||||||||||||||
Due after five years through ten years | ||||||||||||||
Due after ten years | ||||||||||||||
Mortgage and other asset-backed securities | ||||||||||||||
Total | $ | $ |
(In millions) | Amortized Cost | Allowance for Credit Loss | Unrealized Appreciation | Unrealized Depreciation | Fair Value | |||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||
Federal government and agency | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||
State and local government | ( | |||||||||||||||||||||||||||||||
Foreign government | ( | |||||||||||||||||||||||||||||||
Corporate | ( | ( | ||||||||||||||||||||||||||||||
Mortgage and other asset-backed | ( | ( | ||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
Investments supporting liabilities of the Company’s run-off settlement annuity business (included in total above) (1) | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
December 31, 2020 | ||||||||||||||||||||||||||||||||
Federal government and agency | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
State and local government | ||||||||||||||||||||||||||||||||
Foreign government | ( | |||||||||||||||||||||||||||||||
Corporate | ( | ( | ||||||||||||||||||||||||||||||
Mortgage and other asset-backed | ( | ( | ||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||
Investments supporting liabilities of the Company’s run-off settlement annuity business (included in total above) (1) | $ | $ | ( | $ | $ | ( | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in millions) | Fair Value | Amortized Cost | Unrealized Depreciation | Number of Issues | Fair Value | Amortized Cost | Unrealized Depreciation | Number of Issues | ||||||||||||||||||||||||||||||||||||||||||
One year or less | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade | $ | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Below investment grade | $ | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
More than one year | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment grade | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Below investment grade | $ | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | ( |
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||
(In millions) | 2021 | 2020 | |||||||||
Beginning balance | $ | $ | |||||||||
Additions for debt securities where no credit loss has previously been recognized | |||||||||||
Reductions for securities sold during the period | |||||||||||
Decrease for debt securities where credit losses have previously been recorded | ( | ||||||||||
Ending balance | $ | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(In millions) | Cost | Carrying Value | Cost | Carrying Value | ||||||||||||||||||||||
Equity securities with readily determinable fair values | $ | $ | $ | $ | ||||||||||||||||||||||
Equity securities with no readily determinable fair value | $ | $ | $ | $ | ||||||||||||||||||||||
Hybrid equity securities | $ | $ | $ | $ | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
(Dollars in millions) | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||
Loan-to-Value Ratio | Carrying Value | Average Debt Service Coverage Ratio | Average Loan-to-Value Ratio | Carrying Value | Average Debt Service Coverage Ratio | Average Loan-to-Value Ratio | |||||||||||||||||||||||||||||||||||
Below 60% | $ | $ | |||||||||||||||||||||||||||||||||||||||
60% to 79% | |||||||||||||||||||||||||||||||||||||||||
80% to 100% | |||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses | ( | ( | |||||||||||||||||||||||||||||||||||||||
Total | $ | % | $ | % |
Carrying value as of | ||||||||||||||
(In millions) | March 31, 2021 | December 31, 2020 | ||||||||||||
Real estate investments | $ | $ | ||||||||||||
Securities partnerships | ||||||||||||||
Other | ||||||||||||||
Total | $ | $ |
(In millions) | March 31, 2021 | December 31, 2020 | ||||||||||||
Corporate securities | $ | $ | ||||||||||||
Federal government securities | $ | $ | ||||||||||||
Foreign government securities | $ | $ | ||||||||||||
Money market funds | $ | $ |
Notional Value as of | ||||||||||||||||||||
(In millions) | March 31, 2021 | December 31, 2020 | ||||||||||||||||||
Purpose | Type of Instrument | |||||||||||||||||||
Fair value hedge: To hedge the foreign exchange-related changes in fair values of certain foreign-denominated bonds. The notional value of these derivatives matches the amortized cost of the hedged bonds. | Foreign currency swap contracts | $ | $ | |||||||||||||||||
Net investment hedge: To reduce the risk of changes in net assets due to changes in foreign currency spot exchange rates for certain foreign subsidiaries that conduct their business principally in Euros, Korean Won and Taiwan Dollar. The notional value of hedging instruments matches the hedged amount of subsidiary net assets. | Foreign currency swap contracts | $ | $ | |||||||||||||||||
Foreign currency forward contracts | $ | $ | ||||||||||||||||||
Economic hedge: To hedge the foreign exchange-related changes in fair value of U.S. dollar-denominated investment assets to reflect the local currency for the Company’s foreign subsidiary in South Korea. The notional value of hedging instruments generally aligns with the fair value of the hedged investments. | Foreign currency forward contracts | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Net realized investment gains (losses), excluding credit loss expense and asset write-downs | $ | $ | ( | |||||||||||
Credit loss (expense) on invested assets | ( | ( | ||||||||||||
Other investment asset write-downs | ( | |||||||||||||
Net realized investment gains (losses), before income taxes | $ | $ | ( |
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Proceeds from sales | $ | $ | ||||||||||||
Gross gains on sales | $ | $ | ||||||||||||
Gross losses on sales | $ | ( | $ | ( |
(In millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2021 | As of December 31, 2020 | As of March 31, 2021 | As of December 31, 2020 | As of March 31, 2021 | As of December 31, 2020 | As of March 31, 2021 | As of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Financial assets at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Federal government and agency | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
State and local government | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate | ||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total debt securities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate funds priced at NAV as a practical expedient (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities at fair value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities | $ | $ | $ | $ | $ | $ | $ | $ |
Fair Value as of | Unobservable Adjustment Range (Weighted Average by Quantity) as of | ||||||||||||||||||||||||||||||||||
(Fair value in millions ) | March 31, 2021 | December 31, 2020 | Unobservable input March 31, 2021 | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||
Debt securities | |||||||||||||||||||||||||||||||||||
Corporate and government debt securities | $ | $ | Liquidity | bps | bps | ||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | Liquidity | bps | bps | ||||||||||||||||||||||||||||||||
Weighting of credit spreads | bps | bps | |||||||||||||||||||||||||||||||||
Securities not priced by the Company (1) | |||||||||||||||||||||||||||||||||||
Total Level 3 debt securities | $ | $ |
For the Three Months Ended March 31, | |||||||||||
(In millions) | 2021 | 2020 | |||||||||
Debt and Equity Securities | |||||||||||
Beginning balance | $ | $ | |||||||||
Total gains (losses) included in shareholders’ net income | ( | ( | |||||||||
Gains (losses) included in other comprehensive income | ( | ( | |||||||||
Gains (losses) required to adjust future policy benefits for settlement annuities (1) | ( | ( | |||||||||
Purchases, sales and settlements | |||||||||||
Purchases | |||||||||||
Sales | ( | ||||||||||
Settlements | ( | ( | |||||||||
Total purchases, sales and settlements | $ | $ | |||||||||
Transfers into/(out of) Level 3 | |||||||||||
Transfers into Level 3 | |||||||||||
Transfers out of Level 3 | ( | ( | |||||||||
Total transfers into/(out of) Level 3 | $ | $ | |||||||||
Ending balance | $ | $ | |||||||||
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date | $ | ( | $ | ( | |||||||
Change in unrealized gains or losses included in other comprehensive income for assets held at the end of the reporting period | $ | ( | $ | ( |
(In millions) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Guaranteed separate accounts (See Note 15) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Non-guaranteed separate accounts (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||
Non-guaranteed separate accounts priced at NAV as a practical expedient (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Separate account assets per Consolidated Balance Sheets | $ | $ |
Fair Value as of | Unfunded Commitment as of March 31, 2021 | Redemption Frequency (if currently eligible) | Redemption Notice Period | |||||||||||||||||||||||||||||
(In millions) | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||
Securities partnerships | $ | $ | $ | Not applicable | Not applicable | |||||||||||||||||||||||||||
Real estate funds | Quarterly | |||||||||||||||||||||||||||||||
Hedge funds | Up to annually, varying by fund | |||||||||||||||||||||||||||||||
Total | $ | $ | $ |
Classification in Fair Value Hierarchy | March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||
(In millions) | Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||||||||||||||||
Commercial mortgage loans | Level 3 | $ | $ | $ | $ | |||||||||||||||||||||||||||
Long-term debt, including current maturities, excluding finance leases | Level 2 | $ | $ | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Securities and Derivatives | ||||||||||||||
Beginning balance | $ | $ | ||||||||||||
Appreciation (depreciation) on securities and derivatives | ( | ( | ||||||||||||
Tax (expense) benefit | ||||||||||||||
Net appreciation (depreciation) on securities and derivatives | ( | ( | ||||||||||||
Reclassification adjustment for (gains) losses included in shareholders' net income (net realized investment (gains) losses) | ||||||||||||||
Reclassification adjustment for tax expense (benefit) included in shareholders’ net income | ( | ( | ||||||||||||
Net (gains) losses reclassified from AOCI to net income | ||||||||||||||
Other comprehensive (loss), net of tax | ( | ( | ||||||||||||
Ending balance | $ | $ | ||||||||||||
Translation of foreign currencies | ||||||||||||||
Beginning balance | $ | ( | $ | ( | ||||||||||
Translation of foreign currencies | ( | ( | ||||||||||||
Tax (expense) benefit | ( | ( | ||||||||||||
Net translation of foreign currencies | ( | ( | ||||||||||||
Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests | ( | ( | ||||||||||||
Shareholders' other comprehensive (loss), net of tax | ( | ( | ||||||||||||
Ending balance | $ | ( | $ | ( | ||||||||||
Postretirement benefits liability | ||||||||||||||
Beginning balance | $ | ( | $ | ( | ||||||||||
Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (interest expense and other) | ||||||||||||||
Reclassification adjustment for settlement (interest expense and other) | ||||||||||||||
Reclassification adjustment for tax expense (benefit) included in shareholders’ net income | ( | ( | ||||||||||||
Net adjustments reclassified from AOCI to net income | ||||||||||||||
Other comprehensive income, net of tax | ||||||||||||||
Ending balance | $ | ( | $ | ( |
(In millions) | March 31, 2021 | December 31, 2020 | ||||||||||||
Operating leases: | ||||||||||||||
Operating lease ROU assets | $ | $ | ||||||||||||
Accrued expenses and other liabilities | $ | $ | ||||||||||||
Total operating lease liabilities | $ | $ | ||||||||||||
Finance leases: | ||||||||||||||
Property and equipment, gross | $ | $ | ||||||||||||
Accumulated depreciation | ( | ( | ||||||||||||
$ | $ | |||||||||||||
$ | $ | |||||||||||||
Total finance lease liabilities | $ | $ |
Three Months Ended | ||||||||||||||||||||||||||
(In millions) | March 31, 2021 | March 31, 2020 | ||||||||||||||||||||||||
Description of Special Item Charges (Benefits) and Financial Statement Line Item(s) | After-tax | Before-tax | After-tax | Before-tax | ||||||||||||||||||||||
Debt extinguishment costs | $ | $ | $ | $ | ||||||||||||||||||||||
Integration and transaction-related costs (Selling, general and administrative expenses) | ||||||||||||||||||||||||||
Charges associated with litigation matters (Selling, general and administrative expenses) | ( | ( | ||||||||||||||||||||||||
Charge for organizational efficiency plan (Selling, general and administrative expenses) | ||||||||||||||||||||||||||
Contractual adjustment for a former client (Pharmacy revenues) | ( | ( | ||||||||||||||||||||||||
Total impact from special items | $ | $ | $ | $ |
(In millions) | Evernorth | U.S. Medical | International Markets | Other Operations | Corporate and Eliminations | Total | ||||||||||||||||||||||||||||||||
Three months ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Inter-segment revenues | ( | |||||||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net realized investment results from certain equity method investments | ||||||||||||||||||||||||||||||||||||||
Adjusted revenues | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Income (loss) before taxes | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Pre-tax adjustments to reconcile to adjusted income from operations | ||||||||||||||||||||||||||||||||||||||
(Income) attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Net realized investment (gains) losses (1) | ( | |||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | ||||||||||||||||||||||||||||||||||||||
Special items | ||||||||||||||||||||||||||||||||||||||
Debt extinguishment costs | ||||||||||||||||||||||||||||||||||||||
Integration and transaction-related costs | ||||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters | ( | ( | ||||||||||||||||||||||||||||||||||||
Pre-tax adjusted income (loss) from operations | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
(In millions) | Evernorth | U.S. Medical | International Markets | Other Operations | Corporate and Eliminations | Total | ||||||||||||||||||||||||||||||||
Three months ended March 31, 2020 | ||||||||||||||||||||||||||||||||||||||
Revenues from external customers | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Inter-segment revenues | ( | |||||||||||||||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Net realized investment results from certain equity method investments | ||||||||||||||||||||||||||||||||||||||
Special item related to contractual adjustment for a former client | ( | ( | ||||||||||||||||||||||||||||||||||||
Adjusted revenues | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Income (loss) before taxes | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
Pre-tax adjustments to reconcile to adjusted income from operations | ||||||||||||||||||||||||||||||||||||||
(Income) attributable to noncontrolling interests | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Net realized investment (gains) losses (1) | ||||||||||||||||||||||||||||||||||||||
Amortization of acquired intangible assets | ||||||||||||||||||||||||||||||||||||||
Special items | ||||||||||||||||||||||||||||||||||||||
Debt extinguishment costs | ||||||||||||||||||||||||||||||||||||||
Integration and transaction-related costs | ||||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters | ||||||||||||||||||||||||||||||||||||||
Charge for organizational efficiency plan | ||||||||||||||||||||||||||||||||||||||
Contractual adjustment for a former client | ( | ( | ||||||||||||||||||||||||||||||||||||
Pre-tax adjusted income (loss) from operations | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Products (Pharmacy revenues) (ASC 606) | ||||||||||||||
Network revenues | $ | $ | ||||||||||||
Home delivery and specialty revenues | ||||||||||||||
Other | ||||||||||||||
Total pharmacy revenues | $ | $ | ||||||||||||
Insurance premiums (ASC 944) | ||||||||||||||
U.S. Medical premiums | ||||||||||||||
U.S. Commercial | ||||||||||||||
Health Insurance | ||||||||||||||
Stop loss | ||||||||||||||
Other | ||||||||||||||
U.S. Government | ||||||||||||||
Medicare Advantage | ||||||||||||||
Medicare Part D | ||||||||||||||
Other | ||||||||||||||
Total U.S. Medical premiums | ||||||||||||||
International Markets premiums | ||||||||||||||
Domestic disability, life and accident premiums | ||||||||||||||
Other premiums | ||||||||||||||
Total premiums | ||||||||||||||
Services (ASC 606) | ||||||||||||||
Fees | ||||||||||||||
Other external revenues | ||||||||||||||
Total services | ||||||||||||||
Total revenues from external customers | $ | $ |
PAGE | |||||
Financial highlights by segment | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
(Dollars in millions, except per share amounts) | 2021 | 2020 | % Change | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||
Adjusted revenues by segment | ||||||||||||||||||||||||||
Evernorth | $ | 30,620 | $ | 27,168 | 13 | % | ||||||||||||||||||||
U.S. Medical | 10,362 | 9,860 | 5 | |||||||||||||||||||||||
International Markets | 1,572 | 1,470 | 7 | |||||||||||||||||||||||
Other Operations | 139 | 1,339 | (90) | |||||||||||||||||||||||
Corporate, net of eliminations | (1,708) | (1,445) | (18) | |||||||||||||||||||||||
Adjusted revenues | 40,985 | 38,392 | 7 | |||||||||||||||||||||||
Net realized investment results from certain equity method investments | (14) | (10) | (40) | |||||||||||||||||||||||
Special items | — | 87 | N/M | |||||||||||||||||||||||
Total revenues | $ | 40,971 | $ | 38,469 | 7 | % | ||||||||||||||||||||
Shareholders’ net income | $ | 1,161 | $ | 1,181 | (2) | % | ||||||||||||||||||||
Adjusted income from operations | $ | 1,664 | $ | 1,758 | (5) | % | ||||||||||||||||||||
Earnings per share (diluted) | ||||||||||||||||||||||||||
Shareholders’ net income | $ | 3.30 | $ | 3.15 | 5 | % | ||||||||||||||||||||
Adjusted income from operations | $ | 4.73 | $ | 4.69 | 1 | % | ||||||||||||||||||||
Pre-tax adjusted income (loss) from operations by segment | ||||||||||||||||||||||||||
Evernorth | $ | 1,223 | $ | 1,082 | 13 | % | ||||||||||||||||||||
U.S. Medical | 987 | 1,199 | (18) | |||||||||||||||||||||||
International Markets | 262 | 282 | (7) | |||||||||||||||||||||||
Other Operations | 24 | 77 | (69) | |||||||||||||||||||||||
Corporate, net of eliminations | (354) | (405) | 13 | |||||||||||||||||||||||
Consolidated pre-tax adjusted income from operations | 2,142 | 2,235 | (4) | |||||||||||||||||||||||
Income attributable to noncontrolling interests | 12 | 9 | 33 | |||||||||||||||||||||||
Net realized investment (gains) losses (1) | (13) | (98) | 87 | |||||||||||||||||||||||
Amortization of acquired intangible assets | (495) | (498) | 1 | |||||||||||||||||||||||
Special items | (133) | (251) | 47 | |||||||||||||||||||||||
Income before income taxes | $ | 1,513 | $ | 1,397 | 8 | % |
Consolidated Results of Operations (GAAP basis) | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
(Dollars in millions) | 2021 | 2020 | % Change | ||||||||||||||||||||
Pharmacy revenues | $ | 28,025 | $ | 25,098 | 12 | % | |||||||||||||||||
Premiums | 10,214 | 10,840 | (6) | ||||||||||||||||||||
Fees and other revenues | 2,341 | 2,178 | 7 | ||||||||||||||||||||
Net investment income | 391 | 353 | 11 | ||||||||||||||||||||
Total revenues | 40,971 | 38,469 | 7 | ||||||||||||||||||||
Pharmacy and other service costs | 27,235 | 24,190 | 13 | ||||||||||||||||||||
Medical costs and other benefit expenses | 8,005 | 8,322 | (4) | ||||||||||||||||||||
Selling, general and administrative expenses | 3,279 | 3,398 | (4) | ||||||||||||||||||||
Amortization of acquired intangible assets | 495 | 498 | (1) | ||||||||||||||||||||
Total benefits and expenses | 39,014 | 36,408 | 7 | ||||||||||||||||||||
Income from operations | 1,957 | 2,061 | (5) | ||||||||||||||||||||
Interest expense and other | (314) | (391) | 20 | ||||||||||||||||||||
Debt extinguishment costs | (131) | (185) | 29 | ||||||||||||||||||||
Net realized investment gains (losses) | 1 | (88) | N/M | ||||||||||||||||||||
Income before income taxes | 1,513 | 1,397 | 8 | ||||||||||||||||||||
Total income taxes | 342 | 208 | 64 | ||||||||||||||||||||
Net income | 1,171 | 1,189 | (2) | ||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 10 | 8 | 25 | ||||||||||||||||||||
Shareholders' net income | $ | 1,161 | $ | 1,181 | (2) | % | |||||||||||||||||
Consolidated effective tax rate | 22.6 | % | 14.9 | % | 770 | bps | |||||||||||||||||
Medical customers (in thousands) | |||||||||||||||||||||||
U.S. Medical | 15,016 | 15,552 | (3) | % | |||||||||||||||||||
International Markets | 1,687 | 1,666 | 1 | ||||||||||||||||||||
Total | 16,703 | 17,218 | (3) | % |
Reconciliation of Shareholders’ Net Income (GAAP) to Adjusted Income from Operations | ||||||||||||||||||||||||||
Dollars in Millions | Diluted Earnings Per Share | |||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Shareholders’ net income | $ | 1,161 | $ | 1,181 | $ | 3.30 | $ | 3.15 | ||||||||||||||||||
After-tax adjustments required to reconcile to adjusted income from operations | ||||||||||||||||||||||||||
Net realized investment (gains) losses (1) | 13 | 77 | 0.04 | 0.21 | ||||||||||||||||||||||
Amortization of acquired intangible assets | 388 | 309 | 1.10 | 0.82 | ||||||||||||||||||||||
Special items | ||||||||||||||||||||||||||
Debt extinguishment costs | 101 | 140 | 0.29 | 0.38 | ||||||||||||||||||||||
Integration and transaction-related costs | 22 | 74 | 0.06 | 0.20 | ||||||||||||||||||||||
Charges associated with litigation matters | (21) | 19 | (0.06) | 0.05 | ||||||||||||||||||||||
Charge for organizational efficiency plan | — | 24 | — | 0.06 | ||||||||||||||||||||||
Contractual adjustment for a former client | — | (66) | — | (0.18) | ||||||||||||||||||||||
Total special items | 102 | 191 | 0.29 | 0.51 | ||||||||||||||||||||||
Adjusted income from operations | $ | 1,664 | $ | 1,758 | $ | 4.73 | $ | 4.69 |
Three Months Ended March 31, | ||||||||||||||
(In millions) | 2021 | 2020 | ||||||||||||
Operating activities | $ | 1,093 | $ | 1,887 | ||||||||||
Investing activities | $ | (717) | $ | (269) | ||||||||||
Financing activities | $ | (4,051) | $ | (1,818) |
(In millions, on an undiscounted basis) | Total | 2021 | 2022 to 2023 | 2024 to 2025 | Thereafter | |||||||||||||||||||||||||||
On-Balance Sheet | ||||||||||||||||||||||||||||||||
Long-term debt (1) | $ | 49,597 | $ | 1,316 | $ | 5,898 | $ | 6,757 | $ | 35,626 | ||||||||||||||||||||||
Off-Balance Sheet | ||||||||||||||||||||||||||||||||
Purchase Obligations | $ | 3,593 | $ | 1,313 | $ | 1,462 | $ | 522 | $ | 296 | ||||||||||||||||||||||
Financial Summary | Three Months Ended March 31, | Change Favorable (Unfavorable) | |||||||||||||||||||||
(In millions) | 2021 | 2020 | |||||||||||||||||||||
Total revenues | $ | 30,620 | $ | 27,255 | 12 | % | |||||||||||||||||
Less: Contractual adjustment for a former client | — | (87) | N/M | ||||||||||||||||||||
Adjusted revenues(1) | $ | 30,620 | $ | 27,168 | 13 | ||||||||||||||||||
Gross profit | $ | 1,843 | $ | 1,701 | 8 | ||||||||||||||||||
Adjusted gross profit(1) | $ | 1,843 | $ | 1,614 | 14 | ||||||||||||||||||
Pre-tax adjusted income from operations | $ | 1,223 | $ | 1,082 | 13 | % | |||||||||||||||||
Pre-tax adjusted margin | 4.0 | % | 4.0 | % |
Three Months Ended March 31, | Change Favorable (Unfavorable) | ||||||||||||||||||||||
(Dollars and adjusted scripts in millions) | 2021 | 2020 | |||||||||||||||||||||
Selected Financial Information(1) | |||||||||||||||||||||||
Pharmacy revenue by distribution channel | |||||||||||||||||||||||
Adjusted network revenues | $ | 15,138 | $ | 12,791 | 18 | % | |||||||||||||||||
Adjusted home delivery and specialty revenues | 12,774 | 12,005 | 6 | ||||||||||||||||||||
Other revenues | 1,388 | 1,242 | 12 | ||||||||||||||||||||
Total adjusted pharmacy revenues | $ | 29,300 | $ | 26,038 | 13 | % | |||||||||||||||||
Pharmacy script volume | |||||||||||||||||||||||
Adjusted network scripts(2) | 323 | 288 | 12 | % | |||||||||||||||||||
Adjusted home delivery and specialty scripts(2) | 70 | 72 | (3) | ||||||||||||||||||||
Total adjusted scripts(2) | 393 | 360 | 9 | % | |||||||||||||||||||
Generic fill rate | |||||||||||||||||||||||
Network | 87.3 | % | 88.2 | % | (90) | bps | |||||||||||||||||
Home delivery | 86.0 | % | 84.8 | % | 120 | bps | |||||||||||||||||
Overall generic fill rate | 87.2 | % | 87.9 | % | (70) | bps |
Financial Summary | Three Months Ended March 31, | Change Favorable (Unfavorable) | |||||||||||||||||||||
(In millions) | 2021 | 2020 | |||||||||||||||||||||
Adjusted revenues | $ | 10,362 | $ | 9,860 | 5 | % | |||||||||||||||||
Pre-tax adjusted income from operations | $ | 987 | $ | 1,199 | (18) | % | |||||||||||||||||
Pre-tax adjusted margin | 9.5 | % | 12.2 | % | (270) | bps | |||||||||||||||||
Medical care ratio | 81.8 | % | 78.3 | % | (350) | bps | |||||||||||||||||
Expense ratio | 21.7 | % | 21.8 | % | 10 | bps |
As of March 31, | |||||||||||||||||||||||
(In thousands) | 2021 | 2020 | % Change | ||||||||||||||||||||
U.S. Commercial | 2,133 | 2,133 | — | % | |||||||||||||||||||
U.S. Government | 1,464 | 1,412 | 4 | % | |||||||||||||||||||
Insured | 3,597 | 3,545 | 1 | % | |||||||||||||||||||
Service | 11,419 | 12,007 | (5) | % | |||||||||||||||||||
Total | 15,016 | 15,552 | (3) | % |
(In millions) | As of March 31, 2021 | As of December 31, 2020 | % Change | ||||||||||||||||||||
Unpaid claims and claim expenses – U.S. Medical | $ | 3,549 | $ | 3,184 | 11 | % |
Financial Summary | Three Months Ended March 31, | Change Favorable (Unfavorable) | |||||||||||||||||||||
(In millions) | 2021 | 2020 | |||||||||||||||||||||
Adjusted revenues | $ | 1,572 | $ | 1,470 | 7 | % | |||||||||||||||||
Pre-tax adjusted income from operations | $ | 262 | $ | 282 | (7) | % | |||||||||||||||||
Pre-tax adjusted margin | 16.7 | % | 19.2 | % | (250) | bps | |||||||||||||||||
Loss ratio | 59.0 | % | 57.8 | % | (120) | bps | |||||||||||||||||
Acquisition cost ratio | 11.0 | % | 9.1 | % | (190) | bps | |||||||||||||||||
Expense ratio (excluding acquisition costs) | 17.7 | % | 17.4 | % | (30) | bps |
Financial Summary | Three Months Ended March 31, | Change Favorable (Unfavorable) | |||||||||||||||||||||
(In millions) | 2021 | 2020 | |||||||||||||||||||||
Adjusted revenues | $ | 139 | $ | 1,339 | (90) | % | |||||||||||||||||
Pre-tax adjusted income from operations | $ | 24 | $ | 77 | (69) | % | |||||||||||||||||
Pre-tax adjusted margin | 17.3 | % | 5.8 | % | 1,150 | bps |
Financial Summary | Three Months Ended March 31, | Change Favorable (Unfavorable) | |||||||||||||||||||||
(In millions) | 2021 | 2020 | |||||||||||||||||||||
Pre-tax adjusted income (loss) from operations | $ | (354) | $ | (405) | 13 | % |
(In millions) | March 31, 2021 | December 31, 2020 | ||||||||||||
Debt securities | $ | 17,649 | $ | 18,131 | ||||||||||
Equity securities | 550 | 501 | ||||||||||||
Commercial mortgage loans | 1,347 | 1,419 | ||||||||||||
Policy loans | 1,344 | 1,351 | ||||||||||||
Other long-term investments | 2,897 | 2,832 | ||||||||||||
Short-term investments | 511 | 359 | ||||||||||||
Total | $ | 24,298 | $ | 24,593 |
(In millions) | March 31, 2021 | December 31, 2020 | ||||||||||||
Federal government and agency | $ | 394 | $ | 456 | ||||||||||
State and local government | 162 | 167 | ||||||||||||
Foreign government | 2,420 | 2,511 | ||||||||||||
Corporate | 14,214 | 14,562 | ||||||||||||
Mortgage and other asset-backed | 459 | 435 | ||||||||||||
Total | $ | 17,649 | $ | 18,131 |
Period | Total # of shares purchased (1) | Average price paid per share | Total # of shares purchased as part of publicly announced program (2) | Approximate dollar value of shares that may yet be purchased as part of publicly announced program (3) | ||||||||||||||||||||||
January 1-31, 2021 | 3,639,296 | $ | 217.79 | 3,638,504 | $ | 3,080,714,000 | ||||||||||||||||||||
February 1-28, 2021 | 5,508,484 | $ | 209.68 | 5,114,482 | $ | 2,008,520,487 | ||||||||||||||||||||
March 1-31, 2021 | 4,014,992 | $ | 236.10 | 3,993,044 | $ | 1,065,659,301 | ||||||||||||||||||||
Total | 13,162,772 | $ | 219.98 | 12,746,030 | N/A |
Number | Description | Method of Filing | ||||||
4.1 | Filed by registrant as Exhibit 4.1 to the Current Report on Form 8-K on March 3, 2021 and incorporated herein by reference. | |||||||
10.1* | Filed herewith. | |||||||
10.2* | Filed herewith. | |||||||
10.3* | Filed herewith. | |||||||
10.4* | Filed herewith. | |||||||
10.5* | Filed by registrant as Exhibit 10.1 to the Current Report on Form 8-K on May 3, 2021 and incorporated herein by reference. | |||||||
10.6 | Filed by registrant as Exhibit 10.1 to the Current Report on Form 8-K on April 30, 2021 and incorporated herein by reference. | |||||||
31.1 | Filed herewith. | |||||||
31.2 | Filed herewith. | |||||||
32.1 | Furnished herewith. | |||||||
32.2 | Furnished herewith. | |||||||
101 | Financial statements from the quarterly report on Form 10-Q of Cigna Corporation for the quarter ended March 31, 2021 formatted in inline XBRL (eXtensible Business Reporting Language): (i) the Consolidated Statements of Income; (ii) the Consolidated Statements of Comprehensive Income; (iii) the Consolidated Balance Sheets; (iv) the Consolidated Statements of Total Equity; (v) the Consolidated Statements of Cash Flow; and (vi) the Notes to the Consolidated Financial Statements | Filed herewith. | ||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | Filed herewith. |
CIGNA CORPORATION | ||||||||
/s/ Brian C. Evanko | ||||||||
Brian C. Evanko | ||||||||
Executive Vice President and | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer and Authorized Signatory) |
Shares Granted | Approximate Vest Date | ||||
Date: May 7, 2021 | /s/ David M. Cordani | ||||
Chief Executive Officer |
Date: May 7, 2021 | /s/ Brian C. Evanko | ||||
Chief Financial Officer |
/s/ David M. Cordani | ||
David M. Cordani | ||
Chief Executive Officer | ||
May 7, 2021 |
/s/ Brian C. Evanko | ||
Brian C. Evanko | ||
Chief Financial Officer | ||
May 7, 2021 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,171 | $ 1,189 |
Other comprehensive loss, net of tax | ||
Net unrealized appreciation (depreciation) on securities and derivatives | (273) | (428) |
Net translation gains (losses) on foreign currencies | (119) | (175) |
Postretirement benefits liability adjustment | 18 | 13 |
Other comprehensive loss, net of tax | (374) | (590) |
Total comprehensive income | 797 | 599 |
Comprehensive income (loss) attributable to noncontrolling interests | ||
Net income attributable to redeemable noncontrolling interest | 5 | 4 |
Net income attributable to other noncontrolling interests | 5 | 4 |
Other comprehensive (loss) attributable to redeemable noncontrolling interest | (4) | (4) |
Total comprehensive income attributable to noncontrolling interests | 6 | 4 |
SHAREHOLDERS' COMPREHENSIVE INCOME | $ 791 | $ 595 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued (in shares) | 393,000,000 | 390,000,000 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Consolidated Statements of Changes in Total Equity - USD ($) $ in Millions |
Total |
Adjustment upon Adoption |
Shareholders’ Equity |
Shareholders’ Equity
Adjustment upon Adoption
|
Common Stock |
Additional Paid-in Capital |
Accumulated Other Comprehensive (Loss) |
Retained Earnings |
Retained Earnings
Adjustment upon Adoption
|
Treasury Stock |
Other Non- controlling Interests |
---|---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2019 | $ 45,344 | $ (30) | $ 45,338 | $ (30) | $ 4 | $ 28,306 | $ (941) | $ 20,162 | $ (30) | $ (2,193) | $ 6 |
Changes in Total Equity [Roll Forward] | |||||||||||
Effect of issuing stock for employee benefit plans | 170 | 170 | 248 | (78) | |||||||
Other comprehensive loss | (586) | (586) | (586) | ||||||||
Net income | 1,185 | 1,181 | 1,181 | 4 | |||||||
Common dividends declared | (15) | (15) | (15) | ||||||||
Repurchase of common stock | (979) | (979) | (979) | ||||||||
Other transactions impacting noncontrolling interests | (3) | (3) | |||||||||
Balance at Mar. 31, 2020 | 45,086 | 45,079 | 4 | 28,554 | (1,527) | 21,298 | (3,250) | 7 | |||
Balance at Dec. 31, 2019 | 35 | ||||||||||
Change in Redeemable Noncontrolling Interests | |||||||||||
Other comprehensive loss | (4) | ||||||||||
Net income | 4 | ||||||||||
Other transactions impacting noncontrolling interests | 0 | ||||||||||
Balance at Mar. 31, 2020 | $ 35 | ||||||||||
Change in Redeemable Noncontrolling Interests | |||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | ||||||||||
Balance at Dec. 31, 2020 | $ 50,328 | 50,321 | 4 | 28,975 | (861) | 28,575 | (6,372) | 7 | |||
Changes in Total Equity [Roll Forward] | |||||||||||
Effect of issuing stock for employee benefit plans | 192 | 192 | 279 | (87) | |||||||
Other comprehensive loss | (370) | (370) | (370) | ||||||||
Net income | 1,166 | 1,161 | 1,161 | 5 | |||||||
Common dividends declared | (347) | (347) | (347) | ||||||||
Repurchase of common stock | (2,808) | (2,808) | (2,808) | ||||||||
Other transactions impacting noncontrolling interests | (6) | (6) | |||||||||
Balance at Mar. 31, 2021 | 48,155 | $ 48,149 | $ 4 | $ 29,254 | $ (1,231) | $ 29,389 | $ (9,267) | $ 6 | |||
Balance at Dec. 31, 2020 | 58 | ||||||||||
Change in Redeemable Noncontrolling Interests | |||||||||||
Other comprehensive loss | (4) | ||||||||||
Net income | 5 | ||||||||||
Other transactions impacting noncontrolling interests | 0 | ||||||||||
Balance at Mar. 31, 2021 | $ 59 |
Consolidated Statements of Changes in Total Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||
Common dividends declared (in dollars per share) | $ 1.00 | $ 0.04 |
Consolidated Statements of Cash Flows - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|||||
Cash Flows from Operating Activities | ||||||
Net income | $ 1,171 | $ 1,189 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 715 | 693 | ||||
Realized investment (gains) losses, net | (1) | 88 | ||||
Deferred income tax (benefit) | (35) | (161) | ||||
Debt extinguishment costs | 131 | 185 | ||||
Net changes in assets and liabilities, net of non-operating effects: | ||||||
Accounts receivable | (1,420) | (1,056) | ||||
Inventories | 247 | 96 | ||||
Deferred policy acquisition costs | (60) | (138) | ||||
Reinsurance recoverable and Other assets | 40 | (210) | ||||
Insurance liabilities | 443 | 341 | ||||
Pharmacy and other service costs payable | 415 | 408 | ||||
Accounts payable and Accrued expenses and other liabilities | (637) | 308 | ||||
Other, net | 84 | 144 | ||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,093 | 1,887 | ||||
Proceeds from investments sold: | ||||||
Debt securities and equity securities | 378 | 756 | ||||
Investment maturities and repayments: | ||||||
Debt securities and equity securities | 328 | 408 | ||||
Commercial mortgage loans | 72 | 5 | ||||
Other sales, maturities and repayments (primarily short-term and other long-term investments) | 364 | 346 | ||||
Investments purchased or originated: | ||||||
Debt securities and equity securities | (980) | (1,174) | ||||
Other (primarily short-term and other long-term investments) | (637) | (380) | ||||
Property and equipment purchases, net | (242) | (267) | ||||
Other, net | 0 | 37 | ||||
NET CASH (USED IN) INVESTING ACTIVITIES | (717) | (269) | ||||
Cash Flows from Financing Activities | ||||||
Deposits and interest credited to contractholder deposit funds | 47 | 267 | ||||
Withdrawals and benefit payments from contractholder deposit funds | (35) | (255) | ||||
Net change in short-term debt | (1,030) | (180) | ||||
Payments for debt extinguishment | (126) | (192) | ||||
Repayment of long-term debt | (4,199) | (4,209) | ||||
Net proceeds on issuance of long-term debt | 4,262 | 3,470 | ||||
Repurchase of common stock | (2,794) | (956) | ||||
Issuance of common stock | 204 | 153 | ||||
Common stock dividend paid | (345) | 0 | ||||
Other, net | (35) | 84 | ||||
NET CASH (USED IN) FINANCING ACTIVITIES | (4,051) | (1,818) | ||||
Effect of foreign currency rate changes on cash, cash equivalents and restricted cash | (26) | (37) | ||||
Net (decrease) in cash, cash equivalents and restricted cash | (3,701) | (237) | ||||
Cash, cash equivalents and restricted cash January 1, | [1] | 10,245 | 5,411 | |||
Cash, cash equivalents and restricted cash, March 31, | 6,544 | 5,174 | ||||
Cash reclassified to assets of business held for sale | 0 | (597) | ||||
Cash, cash equivalents, and restricted cash December 31, per Consolidated Balance Sheets | [2] | 6,544 | 4,577 | |||
Supplemental Disclosure of Cash Information: | ||||||
Income taxes paid, net of refunds | 122 | 81 | ||||
Interest paid | $ 331 | $ 395 | ||||
|
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2021 |
Mar. 31, 2020 |
||
---|---|---|---|---|
Statement of Cash Flows [Abstract] | ||||
Cash reclassified to assets of business held for sale | $ 0 | $ 597 | ||
Cash and cash equivalents | 6,505 | 4,452 | ||
Restricted cash and cash equivalents, included in other long-term investments | 39 | 125 | ||
Total cash, cash equivalents and restricted cash and cash equivalents | [1] | $ 6,544 | $ 4,577 | |
|
Description of Business |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Cigna Corporation, together with its subsidiaries (either individually or collectively referred to as “Cigna,” the “Company,” “we,” “our” or “us”) is a global health services organization with a mission of helping those we serve improve their health, well-being and peace of mind by making health care simple, affordable and predictable. We offer a differentiated set of pharmacy, medical, dental and related products and services by our subsidiaries. The majority of these products are offered through employers and other groups such as governmental and non-governmental organizations, unions and associations. Cigna also offers commercial health and dental insurance, Medicare and Medicaid products and health, life and accident insurance coverages to individuals in the United States and selected international markets. In addition to these ongoing operations, Cigna also has certain run-off operations. The Company reports its results in the segments detailed below: In connection with the sale of the U.S. Group Disability and Life business on December 31, 2020, the remainder of our operations previously referred to as "Group Disability and Other" in our 2020 Form 10-K is now referred to as "Other Operations". There were no changes to the underlying business included in this category. Our business that offers group voluntary products and services was not sold to New York Life and results of this business are reported in the U.S. Medical segment. In connection with the launch of Evernorth in the third quarter of 2020, two reporting segments were renamed. Health Services was renamed as Evernorth and Integrated Medical was renamed U.S. Medical. In addition, two of our operating segments were renamed: Commercial and Government were renamed U.S. Commercial and U.S. Government respectively. There were no changes to the underlying businesses reported in the segments. Evernorth includes a broad range of coordinated and point solution health services capabilities, as well as those from partners across the health care system in pharmacy solutions, benefits management solutions, care solutions and intelligence solutions, which are provided to health plans, employers, government organizations and health care providers. U.S. Medical includes U.S. Commercial and U.S. Government businesses that provide comprehensive medical and coordinated solutions to clients and customers. U.S. Commercial products and services include medical, pharmacy, behavioral health, dental, vision, health advocacy programs and other products and services for insured and administrative services only ("ASO") clients. U.S. Government solutions include Medicare Advantage, Medicare Supplement and Medicare Part D plans for seniors, Medicaid plans and individual health insurance plans both on and off the public exchanges. International Markets includes supplemental health, life and accident insurance products and health care coverage in our international markets, as well as health care benefits for globally mobile employees of multinational organizations. The remainder of our business operations are reported in Other Operations, consisting of the following: •Group Disability and Life. Prior to the sale of the U.S. Group Disability and Life business on December 31, 2020, this segment provided group long-term and short-term disability, group life, accident, voluntary and specialty insurance products and related services. •Corporate-Owned Life Insurance (“COLI”) offers permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for the purpose of financing employer-paid future benefit obligations. •Run-off businesses: •Reinsurance: predominantly comprised of guaranteed minimum death benefit (“GMDB”) and guaranteed minimum income benefit (“GMIB”) business effectively exited through reinsurance with Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire”) in 2013. •Settlement Annuity business in run-off. •Individual Life Insurance and Annuity and Retirement Benefits businesses: deferred gains from the sales of these businesses. Corporate reflects amounts not allocated to operating segments, including net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment and other operations), certain litigation matters, expense associated with our frozen pension plans, charitable contributions, severance, certain overhead and project costs and intersegment eliminations for products and services sold between segments.
|
Summary of Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Consolidated Financial Statements include the accounts of Cigna Corporation and its consolidated subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Amounts recorded in the Consolidated Financial Statements necessarily reflect management’s estimates and assumptions about medical costs, investment and receivable valuations, interest rates and other factors. Significant estimates are discussed throughout these Notes; however, actual results could differ from those estimates. The impact of a change in estimate is generally included in earnings in the period of adjustment. These interim Consolidated Financial Statements are unaudited but include all adjustments (including normal recurring adjustments) necessary, in the opinion of management, for a fair statement of financial position and results of operations for the periods reported. The interim Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes included in the 2020 Annual Report on Form 10-K (“2020 Form 10-K”). The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates. This and other factors, including the seasonal nature of portions of the health care and related benefits business, competitive and other market conditions, as well as COVID-19 related impacts, call for caution in estimating full-year results based on interim results of operations.Recent Accounting PronouncementsThe Company's 2020 Form 10-K includes discussion of significant recent accounting pronouncements that either have impacted our financial statements or may impact them in the future. There have been no updates on recently issued accounting pronouncements that have occurred since the Company filed its 2020 Form 10-K. There were no new accounting standards adopted in the first quarter of 2021 that had a material impact to our financial statements.
|
Accounts Receivable, Net |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | Accounts Receivable, Net The following amounts were included within Accounts receivable, net:
|
Mergers, Acquisitions and Divestitures |
3 Months Ended |
---|---|
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Divestitures | Mergers, Acquisitions and DivestituresAcquisition of MDLIVEIn April 2021, Cigna's Evernorth segment completed the 100% acquisition of MDLIVE, Inc. ("MDLIVE"), a 24/7 virtual care platform. The acquisition of MDLIVE will enable Evernorth to continue expanding access to virtual care and delivering a more affordable, convenient and connected care experience for consumers. The Company will complete the purchase price allocation in the second quarter of 2021. Divestiture of U.S. Group Disability and Life businessOn December 31, 2020, Cigna completed the sale of its U.S. Group Disability and Life business to New York Life Insurance Company for cash proceeds of $6.2 billion. The Company recognized a gain of $4.2 billion pre-tax ($3.2 billion after-tax), which includes recognition of previously unrealized capital gains on investments sold.Integration and Transaction-related CostsIn the first three months of 2021, the Company incurred costs related to the acquisition of MDLIVE, the terminated merger with Anthem, Inc. (“Anthem”), the sale of the U.S. Group Disability and Life business and other transactions. In the first three months of 2020, the Company incurred costs related to the acquisition and integration of Express Scripts Holding Company ("Express Scripts"), the terminated merger with Anthem, the sale of the U.S. Group Disability and Life insurance business and other transactions. These costs were $29 million pre-tax ($22 million after-tax) for the three months ended March 31, 2021, compared with $97 million pre-tax ($74 million after-tax) for the three months ended March 31, 2020, and consisted primarily of certain projects related to the Company’s systems, products and services, fees for legal, advisory and other professional services and certain employment-related costs. |
Earnings Per Share |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share (“EPS”) Basic and diluted earnings per share were computed as follows:
The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive.
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Debt |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The outstanding amounts of debt and finance leases were as follows:
Debt Issuance and Redemption. In order to decrease future interest expense, mitigate future refinancing risk and raise proceeds for general corporate purposes, the Company entered into the following transactions during the three months ended March 31, 2021: •Debt issuance: On March 3, 2021, the Company issued $4.3 billion of new senior notes. The proceeds of this issuance were mainly used to redeem outstanding debt securities. The remaining proceeds are available for general corporate purposes. Interest on this debt is paid semi-annually.
•Debt redemption: In the first quarter of 2021, the Company completed the redemption of a total of $4.2 billion in aggregate principal amount of certain of its outstanding debt securities. The Company recorded a pre-tax loss of $131 million ($101 million after-tax), consisting primarily of premium payments. An additional $301 million of outstanding debt securities due February 2022 were redeemed on April 2, 2021. The effect of a pre-tax loss from this April redemption is not expected to be material to results of operations for the second quarter of 2021. Revolving Credit Agreements. Our revolving credit agreements provide us with the ability to borrow amounts for general corporate purposes, including for the purpose of providing liquidity support if necessary under our commercial paper program discussed below. For the first quarter of 2021, Cigna had a $3.25 billion revolving credit and letter of credit agreement maturing in April 2023 that was diversified among 23 banks. Under the facility $3.25 billion was available for general corporate purposes and up to $500 million was available for issuance of letters of credit. The facility included options to extend the termination date for additional one-year periods and increase the facility by $500 million, subject to the consent of the banks. Additionally, for the first quarter of 2021, Cigna had a $1.0 billion 364-day revolving credit agreement maturing in October 2021 that was diversified among 23 banks. Under this agreement, Cigna could borrow up to $1.0 billion for general corporate purposes. The agreement included the option to “term out” any revolving loans that were outstanding at maturity by converting them into a term loan maturing on the one-year anniversary of conversion. The revolving credit agreements contained customary covenants and restrictions, including a financial covenant that Cigna’s leverage ratio may not exceed 60%. As of March 31, 2021, there were no outstanding balances under these revolving credit agreements. In April 2021, Cigna entered into a $3.0 billion -year revolving credit and letter of credit agreement that matures in April 2026 and a $1.0 billion -year revolving credit agreement that matures in April 2024, which are diversified among 23 banks and replace the -year revolving credit and letter of credit agreement that was scheduled to mature in April 2023. Under the current agreements, Cigna can borrow up to $3.0 billion and $1.0 billion, respectively, for general corporate purposes, with up to $500 million available under the -year facility for issuance of letters of credit. The revolving credit agreements also include an option to extend the termination date for an additional one-year period, subject to consent of the banks. Additionally, in April 2021, Cigna entered into a $1.0 billion 364-day revolving credit agreement that will mature in April 2022 and is diversified among 23 banks. This agreement replaces the $1.0 billion 364-day revolving credit agreement that was scheduled to expire in October 2021. Pursuant to this revolving credit agreement, Cigna can borrow up to $1.0 billion for general corporate purposes. The agreement includes the option to “term out” any revolving loans that are outstanding at maturity by converting them into a term loan maturing on the one-year anniversary of conversion. Each of the -year facility, the -year facility and the 364-day facility include an option to increase commitments in an aggregate amount of up to $1.5 billion across all three facilities. Each of the three facilities also contain customary covenants and restrictions including a financial covenant that the Company’s leverage ratio may not exceed 60%, subject to certain exceptions upon the consummation of an acquisition. Commercial Paper. Under our commercial paper program we may issue short-term, unsecured commercial paper notes privately placed on a discount basis through certain broker dealers at any time not to exceed $4.25 billion. Amounts available under the program may be borrowed, repaid and re-borrowed from time to time. The net proceeds of issuances have been and are expected to be used for general corporate purposes. The Company was in compliance with its debt covenants as of March 31, 2021.
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Insurance and Contractholder Liabilities |
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Insurance Loss Reserves [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance and Contractholder Liabilities | Insurance and Contractholder Liabilities A.Account Balances – Insurance and Contractholder Liabilities The Company’s insurance and contractholder liabilities were comprised of the following:
(1)Amounts classified as Liabilities of business held for sale primarily include $5.1 billion of unpaid claims, $726 million of contractholder deposit funds and $640 million of future policy benefits as of March 31, 2020. Insurance and contractholder liabilities expected to be paid within one year are classified as current. Unpaid Claims and Claim Expenses – U.S. MedicalThis liability reflects estimates of the ultimate cost of claims that have been incurred but not reported, including expected development on reported claims, those that have been reported but not yet paid (reported claims in process) and other medical care expenses and services payable that are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities.The total of incurred but not reported liabilities plus expected development on reported claims, including reported claims in process, was $3.3 billion at March 31, 2021 and $2.7 billion at March 31, 2020. Activity, net of intercompany transactions, in the unpaid claims liability for the U.S. Medical segment for the three months ended March 31 was as follows:
Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 8 for additional information on reinsurance. Variances in incurred costs related to prior years’ unpaid claims and claim expenses that resulted from the differences between actual experience and the Company’s key assumptions for the three months ended March 31 were as follows:
(1)Percentage of current year incurred costs as reported for the year ended December 31, 2020. (2)Percentage of current year incurred costs as reported for the year ended December 31, 2019. Favorable prior year development in both years reflects lower than expected utilization of medical services. Unpaid Claims and Claim Expenses – International Markets and Other Operations Liability balance details. The liability details for unpaid claims and claim expenses are as follows:
Activity in the Company’s liabilities for unpaid claims and claim expenses for International Markets and, prior to the sale, Group Disability and Life, is presented in the following table. Liabilities associated with Other Operations are excluded because they pertain to obligations for long-duration insurance contracts or, if short-duration, the liabilities have been fully reinsured.
(1)Includes unpaid claims amounts classified as Liabilities of business held for sale. Reinsurance in the table above reflects amounts due from reinsurers related to unpaid claims liabilities. The Company’s insurance subsidiaries enter into agreements with other companies primarily to limit losses from large exposures and to permit recovery of a portion of incurred losses. See Note 8 for additional information on reinsurance. Following the sale of the Company's Group Disability and Life business (see Note 4 for further information), the liability for unpaid claims and claim expenses relates to products sold in the International Markets segment. Prior to the sale, the majority of the liability related to disability claims with long tailed payouts. See Note 9C to the Consolidated Financial Statements included in our 2020 Form 10-K for additional discussion of these disability reserves that are now sold.
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Reinsurance |
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Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance | Reinsurance The Company’s insurance subsidiaries enter into agreements with other insurance companies to assume and cede reinsurance. Reinsurance is ceded primarily in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance is also used to limit losses from large exposures and to permit recovery of a portion of direct or assumed losses. Reinsurance does not relieve the originating insurer of liability. Therefore, reinsured liabilities must continue to be reported along with the related reinsurance recoverables. The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk. A.Reinsurance Recoverables The majority of the Company’s reinsurance recoverables resulted from acquisition and disposition transactions in which the underwriting company was not acquired. Included in the table below are $216 million of current reinsurance recoverables that are reported in Other current assets as of March 31, 2021; as of December 31, 2020 there was $217 million of current reinsurance recoverables reported in Other current assets. The Company’s reinsurance recoverables as of March 31, 2021 are presented in the following table by range of external credit rating and collateral level.
(1)Includes A- equivalent and higher current ratings certified by a nationally recognized statistical rating organization ("NRSRO") (2)Includes BBB- to BBB+ equivalent current credit ratings certified by an NRSRO (3)Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level Collateral levels are defined internally based on the fair value of the collateral relative to the carrying amount of the reinsurance recoverable, the frequency at which collateral is required to be replenished and the potential for volatility in the collateral’s fair value. The Company bears the risk of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company. The Company reviews its reinsurance arrangements and establishes reserves against the recoverables, as further described above. Effects of ReinsuranceIn the Company’s Consolidated Statements of Income, premiums were reported net of amounts ceded to reinsurers and medical costs and other benefit expenses were reported net of reinsurance recoveries in the following amounts:
The Company entered into an agreement with Berkshire to effectively exit the GMDB and GMIB business via a reinsurance transaction in 2013. Berkshire reinsured 100% of the Company’s future claim payments in this business, net of other reinsurance arrangements existing at that time. The reinsurance agreement is subject to an overall limit with approximately $3.2 billion remaining at March 31, 2021. GMDB is accounted for as assumed and ceded reinsurance and GMIB assets and liabilities are reported as derivatives at fair value as discussed below. GMIB assets are reported in Other current assets and Other assets, and GMIB liabilities are reported in Accrued expenses and other liabilities and Other non-current liabilities. Assumptions used in fair value measurement these assets and liabilities are discussed in Note 10 of the Company's 2020 Form 10-K. GMDB The GMDB exposure arises under annuities written by ceding companies that guarantee the benefit received at death. The Company’s exposure arises when the guaranteed minimum death benefit exceeds the fair value of the related mutual fund investments at the time of a contractholder’s death. The following table presents the account value, net amount at risk and the number of contractholders for guarantees assumed by the Company in the event of death. The net amount at risk is the amount that the Company would have to pay if all contractholders died as of the specified date. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded.
GMIB The Company reinsured contracts with issuers of GMIB products. The Company’s exposure represents the excess of a contractually guaranteed amount over the level of variable annuity account values. Payment by the Company depends on the actual account value in the related underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments that can only occur within 30 days of a policy anniversary after the appropriate waiting period. The Company has purchased retrocessional coverage (“GMIB assets”) for these contracts including retrocessional coverage from Berkshire. GMIB liabilities totaling $595 million as of March 31, 2021 and $729 million as of December 31, 2020 are classified as Level 3 because fair value inputs are largely unobservable. There were three reinsurers covering 100% of the GMIB exposures as of March 31, 2021 and December 31, 2020 as follows:
All reinsurers are rated A- equivalent and higher by an NRSRO. Amounts included in shareholders’ net income for GMIB assets and liabilities were not material for the three months ended March 31, 2021 or March 31, 2020.
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Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | InvestmentsCigna’s investment portfolio consists of a broad range of investments including debt securities, equity securities, commercial mortgage loans, policy loans, other long-term investments, short-term investments and derivative financial instruments. The sections below provide more detail regarding our investment balances and realized investment gains and losses. See Note 10 for information about the valuation of the Company’s investment portfolio. Further information about our accounting policies for investment assets can be found in Note 11 of the Company's 2020 Form 10-K. The following table summarizes the Company's investments by category and current or long-term classification.
The amortized cost and fair value by contractual maturity periods for debt securities were as follows at March 31, 2021:
Actual maturities of these securities could differ from their contractual maturities used in the table above because issuers may have the right to call or prepay obligations, with or without penalties. Gross unrealized appreciation (depreciation) on debt securities by type of issuer is shown below.
(1)Net unrealized appreciation for these investments is excluded from accumulated other comprehensive income. Review of declines in fair value. Management reviews impaired debt securities to determine whether a credit loss allowance is needed based on criteria that include: •severity of decline; •financial health and specific prospects of the issuer; and •changes in the regulatory, economic or general market environment of the issuer’s industry or geographic region. The table below summarizes debt securities with a decline in fair value from amortized cost for which an allowance for credit losses has not been recorded, by investment grade and the length of time these securities have been in an unrealized loss position. These debt securities are primarily corporate securities with a decline in fair value that reflects an increase in market yields since purchase. See discussion of Realized Investment Gains and Losses below for further information on the credit loss expense recorded for the Company's investments.
The table below presents a roll-forward of the allowance for credit losses on debt securities for the three months ended March 31:
Equity Securities The following table provides the values of the Company's equity security investments as of March 31, 2021 and December 31, 2020. The amount of impairments or value changes resulting from observable price changes on equity securities still held was not material to the financial statements as of March 31, 2021 or December 31, 2020.
Mortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type, location and borrower. Loans are generally issued at fixed rates of interest and are secured by high quality, primarily completed and substantially leased operating properties. Commercial mortgage loans are classified as either current or long-term investments based on their contractual maturities. Credit quality. The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period. Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at origination that is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on a consistent and ongoing basis. Quality ratings are based on our evaluation of a number of key inputs related to the loan, including real estate market-related factors such as rental rates and vacancies, and property-specific inputs such as growth rate assumptions and lease rollover statistics. However, the two most significant contributors to the credit quality rating are the debt service coverage and loan-to-value ratios. The debt service coverage ratio measures the amount of property cash flow available to meet annual interest and principal payments on debt, with a ratio below 1.0 indicating that there is not enough cash flow to cover the required loan payments. The loan-to-value ratio, commonly expressed as a percentage, compares the amount of the loan to the fair value of the underlying property collateralizing the loan. The following table summarizes the credit risk profile of the Company’s commercial mortgage loan portfolio based on loan-to-value and debt service coverage ratios as of March 31, 2021 and December 31, 2020.
The Company’s annual in-depth review of its commercial mortgage loan investments is the primary mechanism for identifying emerging risks in the portfolio. The Company’s investment professionals completed the annual in-depth review in the second quarter of 2020 that included an analysis of each underlying property’s most recent annual financial statements, rent rolls, operating plans, budgets, a physical inspection of the property and other pertinent factors. Based on historical results, current leases, lease expirations and rental conditions in each market, the Company estimated the current year and future stabilized property income and fair value for each loan. The Company re-evaluates a loan’s credit quality between annual reviews if new property information is received or an event such as delinquency or a borrower’s request for restructure causes management to believe that the Company’s estimate of financial performance, fair value or the risk profile of the underlying property has been impacted. All commercial mortgage loans in the Company's portfolio are current as of March 31, 2021 and December 31, 2020. Other Long-Term Investments Other long-term investments include investments in unconsolidated entities, including certain limited partnerships and limited liability companies holding real estate, securities or loans. These investments are carried at cost plus the Company's ownership percentage of reporting income or loss, based on the financial statements of the underlying investments that are generally reported at fair value. Income or loss from these investments is reported on a one quarter lag due to the timing of when financial information is received from the general partner or manager of the investments. Other long-term investments also include investment real estate carried at depreciated cost less any impairment write-downs to fair value when cash flows indicate that the carrying value may not be recoverable. Additionally, statutory and other restricted deposits, healthcare related investment partnerships and foreign currency swaps carried at fair value are reported in the table below as Other. The following table provides the carrying value information for these investments.
Short-Term Investments and Cash Equivalents Short-term investments and cash equivalents included the following types of issuers. The decrease in Money market funds is primarily due to the deployment of proceeds received on December 31, 2020 from the U.S. Group Disability and Life business divestiture for Corporate purposes.
The Company uses derivative financial instruments to manage the characteristics of investment assets (such as duration, yield, currency and liquidity) to meet the varying demands of the related insurance and contract holder liabilities. The Company also uses derivative financial instruments to hedge the risk of changes in the net assets of certain of its foreign subsidiaries due to changes in foreign currency exchange rates. The Company has written and purchased GMIB reinsurance contracts in its run-off reinsurance business that are accounted for as freestanding derivatives as discussed in Note 8. Derivatives in the Company’s separate accounts are excluded from the following discussion because associated gains and losses generally accrue directly to separate account policyholders. Derivative instruments used by the Company typically include foreign currency swap contracts and foreign currency forward contracts. Foreign currency swap contracts periodically exchange cash flows between two currencies for principal and interest. Foreign currency forward contracts require the Company to purchase a foreign currency in exchange for the functional currency of its operating unit at a future date. The Company manages the credit risk of these derivative instruments by diversifying its portfolio among approved dealers of high credit quality and through routine monitoring of credit risk exposures. Certain of the Company’s over-the-counter derivative instruments require either the Company or the counterparty to post collateral or demand immediate payment depending on the amount of the net liability position of the derivative instrument and predefined financial strength or credit rating thresholds. These collateral posting requirements vary by counterparty. The Company may incur a loss if dealers failed to perform under derivative contracts, however collateral has been posted by dealers to cover substantially all of the net fair values owed at March 31, 2021 and December 31, 2020. The fair value of collateral posted by the Company was not significant as of March 31, 2021 or December 31, 2020. The gross fair values of our derivative financial instruments are presented in Note 10. The following table summarizes the types and notional quantity of derivative instruments held by the Company. As of March 31, 2021 and December 31, 2020, the effects of these individual hedging strategies were not material to the Consolidated Financial Statements, including gains or losses reclassified from accumulated other comprehensive income into shareholders' net income, as well as amounts excluded from the assessment of hedge effectiveness.
As there has been no material change in the types of derivative financial instruments the Company uses, refer to the Company’s 2020 Form 10-K for a discussion of our accounting policy. Realized Investment Gains and LossesThe following realized gains and losses on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business (consistent with accounting for a premium deficiency), as well as realized gains and losses attributed to the Company’s separate accounts because those gains and losses generally accrue directly to separate account policyholders.
Net realized investment gains, excluding credit loss expense and asset write-downs for the three months ended March 31, 2021 was primarily driven by mark-to-market gains on equity securities, partially offset by mark-to-market losses on derivatives. This activity for the three months ended March 31, 2020 was primarily driven by mark-to-market losses on equity securities and derivatives, partially offset by gains on sales of debt securities. Credit loss (expense) recoveries on invested assets reflect credit losses incurred on debt securities primarily relating to issuers in certain industries that have been impacted by the global COVID-19 pandemic. Realized gains and losses on equity securities still held at March 31, 2021 and 2020 were not material. The following table presents sales information for available-for-sale debt securities. Gross gains on sales and gross losses on sales exclude amounts required to adjust future policy benefits for the run-off settlement annuity business.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company carries certain financial instruments at fair value in the financial statements including debt securities, certain equity securities, short-term investments and derivatives. Other financial instruments are measured at fair value only under certain conditions, such as when impaired or when there are observable price changes for equity securities with no readily determinable fair value. Fair value is defined as the price at which an asset could be exchanged in an orderly transaction between market participants at the balance sheet date. A liability’s 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 settle the liability with the creditor. The Company’s financial assets and liabilities carried at fair value have been classified based upon a hierarchy defined by GAAP. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level of input that is significant to its measurement. For example, a financial asset or liability carried at fair value would be classified in Level 3 if unobservable inputs were significant to the instrument’s fair value, even though the measurement may be derived using inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The Company estimates fair values using prices from third parties or internal pricing methods. Fair value estimates received from third-party pricing services are based on reported trade activity and quoted market prices when available, and other market information that a market participant would use to estimate fair value. The internal pricing methods are performed by the Company’s investment professionals and generally involve using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality as well as other qualitative factors. In instances where there is little or no market activity for the same or similar instruments, fair value is estimated using methods, models and assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price. These valuation techniques involve some level of estimation and judgment that becomes significant with increasingly complex instruments or pricing models. The Company is responsible for determining fair value and for assigning the appropriate level within the fair value hierarchy based on the significance of unobservable inputs. The Company reviews methodologies, processes and controls of third-party pricing services and compares prices on a test basis to those obtained from other external pricing sources or internal estimates. The Company performs ongoing analyses of both prices received from third-party pricing services and those developed internally to determine that they represent appropriate estimates of fair value. The controls executed by the Company include evaluating changes in prices and monitoring for potentially stale valuations. The Company also performs sample testing of sales values to confirm the accuracy of prior fair value estimates. The minimal exceptions identified during these processes indicate that adjustments to prices are infrequent and do not significantly impact valuations. An annual due-diligence review of the most significant pricing service is conducted to review their processes, methodologies and controls. This review includes a walk-through of inputs for a sample of securities held across various asset types to validate the documented pricing process. A.Financial Assets and Financial Liabilities Carried at Fair Value The following table provides information as of March 31, 2021 and December 31, 2020 about the Company’s financial assets and liabilities carried at fair value. Separate account assets are also recorded at fair value on the Company’s Consolidated Balance Sheets and are reported separately in the Separate Accounts section below as gains and losses related to these assets generally accrue directly to policyholders.
(1)Excludes certain equity securities that have no readily determinable fair value. (2)As a practical expedient, certain real estate funds are carried at fair value based on the Company’s ownership share of the equity of the investee (Net Asset Value (“NAV”)) including changes in the fair value of its underlying investments. The Company has $46 million in unfunded commitments in these funds as of March 31, 2021. (3)Derivative assets above include $6 million that are presented in the Short-term investments category that is disclosed in Note 9. See Note 9 for more information on our Derivative Financial Instruments. Level 1 Financial Assets Inputs for instruments classified in Level 1 include unadjusted quoted prices for identical assets in active markets accessible at the measurement date. Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets. Assets in Level 1 include actively-traded U.S. government bonds and exchange-listed equity securities. A relatively small portion of the Company’s investment assets are classified in this category given the narrow definition of Level 1 and the Company’s investment asset strategy to maximize investment returns. Level 2 Financial Assets and Financial Liabilities Inputs for instruments classified in Level 2 include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active or other inputs that are market observable or can be corroborated by market data for the term of the instrument. Such other inputs include market interest rates and volatilities, spreads and yield curves. An instrument is classified in Level 2 if the Company determines that unobservable inputs are insignificant. Debt and equity securities. Approximately 94% of the Company’s investments in debt and equity securities are classified in Level 2 including most public and private corporate debt and hybrid equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks. Third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics because many debt securities do not trade daily. Pricing models are used to determine these prices when recent trades are not available. These models calculate fair values by discounting future cash flows at estimated market interest rates. Such market rates are derived by calculating the appropriate spreads over comparable U.S. Treasury securities based on the credit quality, industry and structure of the asset. Typical inputs and assumptions to pricing models include, but are not limited to, a combination of benchmark yields, reported trades, issuer spreads, liquidity, benchmark securities, bids, offers, reference data and industry and economic events. For mortgage-backed securities, inputs and assumptions may also include characteristics of the issuer, collateral attributes, prepayment speeds and credit rating. Nearly all of these instruments are valued using recent trades or pricing models. Less than 1% of the fair value of investments classified in Level 2 represents foreign bonds that are valued using a single, unadjusted market-observable input derived by averaging multiple broker-dealer quotes, consistent with local market practice. Short-term investments are carried at fair value that approximates cost. The Company compares market prices for these securities to recorded amounts on a regular basis to validate that current carrying amounts approximate exit prices. The short-term nature of the investments and corroboration of the reported amounts over the holding period support their classification in Level 2. Derivative assets and liabilities classified in Level 2 represent over-the-counter instruments such as foreign currency forward and swap contracts. Fair values for these instruments are determined using market observable inputs including forward currency and interest rate curves and widely published market observable indices. Credit risk related to the counterparty and the Company is considered when estimating the fair values of these derivatives. However, the Company is largely protected by collateral arrangements with counterparties and determined that no adjustments for credit risk were required as of March 31, 2021 or December 31, 2020. The nature and use of these derivative financial instruments are described in Note 9. Level 3 Financial Assets and Financial Liabilities Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. The Company classifies certain newly-issued, privately-placed, complex or illiquid securities in Level 3. Approximately 5% of debt and equity securities are priced using significant unobservable inputs and classified in this category. Fair values of mortgage and other asset-backed securities, as well as corporate and government debt securities, are primarily determined using pricing models that incorporate the specific characteristics of each asset and related assumptions including the investment type and structure, credit quality, industry and maturity date in comparison to current market indices, spreads and liquidity of assets with similar characteristics. Inputs and assumptions for pricing may also include characteristics of the issuer, collateral attributes and prepayment speeds for mortgage and other asset-backed securities. Recent trades in the subject security or similar securities are assessed when available, and the Company may also review published research in its evaluation, as well as the issuer’s financial statements. Quantitative Information about Unobservable Inputs The following table summarizes the fair value and significant unobservable inputs used in pricing the following debt securities that were developed directly by the Company as of March 31, 2021 and December 31, 2020. The range and weighted average basis point (“bps”) amounts for liquidity and credit spreads (adjustment to discount rates) reflect the Company’s best estimates of the unobservable adjustments a market participant would make to calculate these fair values. Corporate and government debt securities. The significant unobservable input used to value the following corporate and government debt securities is an adjustment for liquidity. This adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security. Mortgage and other asset-backed securities. The significant unobservable inputs used to value the following mortgage and other asset-backed securities are liquidity and weighting of credit spreads. An adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure when there is limited trading activity for the security. An adjustment to weight credit spreads is needed to value a more complex bond structure with multiple underlying collateral and no standard market valuation technique. The weighting of credit spreads is primarily based on the underlying collateral’s characteristics and their proportional cash flows supporting the bond obligations.
(1)The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company. Significant increases in liquidity or credit spreads would result in lower fair value measurements while decreases in these inputs would result in higher fair value measurements. The unobservable inputs are generally not interrelated and a change in the assumption used for one unobservable input is not accompanied by a change in the other unobservable input. Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value The following tables summarize the changes in financial assets and financial liabilities classified in Level 3 for the three months ended March 31, 2021 and 2020. Gains and losses reported in these tables may include net changes in fair value that are attributable to both observable and unobservable inputs.
(1)Amounts do not accrue to shareholders. . Total gains and losses included in Shareholders’ net income in the tables above are reflected in the Consolidated Statements of Income as Net realized investment gains (losses) and Net investment income. Gains and losses included in Other comprehensive income in the tables above are reflected in Net unrealized appreciation (depreciation) on securities and derivatives in the Consolidated Statements of Comprehensive Income. Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company’s best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Market activity typically decreases during periods of economic uncertainty, and this decrease in activity reduces the availability of market observable data. As a result, the level of unobservable judgement that must be applied to the pricing of certain instruments increases, and is typically observed through the widening of liquidity and credit spreads. Transfers between Level 2 and Level 3 during 2021 and 2020 primarily reflected changes in liquidity and credit risk estimates for certain private placement issuers across several sectors. Transfers into and out of Level 3 were higher in 2020 due to significant fluctuations in liquidity and credit spreads experienced as a result of the uncertainty over the economic impacts related to COVID-19. See discussion under Quantitative Information about Unobservable Inputs above for more information. Separate Accounts The investment income and fair value gains and losses of separate account assets generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company’s Consolidated Statements of Income and Cash Flows. Fair values of separate account assets at March 31, 2021 and December 31, 2020 were as follows:
(1)Non-guaranteed separate accounts included $4.2 billion as of March 31, 2021 and December 31, 2020 in assets supporting the Company’s pension plans, including $0.3 billion classified in Level 3 as of March 31, 2021 and December 31, 2020. Separate account assets classified as Level 1 primarily include exchange-listed equity securities. Level 2 assets primarily include: •corporate and structured bonds valued using recent trades of similar securities or pricing models that discount future cash flows at estimated market interest rates as described above; and •actively-traded institutional and retail mutual fund investments. Separate account assets classified in Level 3 primarily support Cigna’s pension plans and include certain newly-issued, privately-placed, complex or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans. Activity, including transfers into and out of Level 3, was not material for the three months ended March 31, 2021 or 2020. Separate account investments in securities partnerships, real estate and hedge funds are generally valued based on the separate account’s ownership share of the equity of the investee (NAV as a practical expedient) including changes in the fair values of its underlying investments. Substantially all of these assets support the Cigna Pension Plans. The following table provides additional information on these investments.
As of March 31, 2021, the Company does not have plans to sell any of these assets at less than fair value. These investments are structured to satisfy longer-term investment objectives. Securities partnerships are contractually non-redeemable, and the underlying investment assets are expected to be liquidated by the fund managers within ten years after inception. B.Assets and Liabilities Measured at Fair Value under Certain Conditions Some financial assets and liabilities are not carried at fair value each reporting period, but may be measured using fair value only under certain conditions such as when investments become impaired, including investment real estate and commercial mortgage loans and certain equity securities with no readily determinable fair value. For the three months ended March 31, 2021 and 2020, there were no such impairments. Equity securities with no readily determinable fair value are also measured at fair value when there are observable price changes from orderly transactions with the same issuer. Realized investment gains and losses from these observable price changes for the three months ended March 31, 2021 and March 31, 2020 were not material. Carrying values represented less than 1% of total investments as of both March 31, 2021 and March 31, 2020. C.Fair Value Disclosures for Financial Instruments Not Carried at Fair Value The following table includes the Company’s financial instruments not recorded at fair value that are subject to fair value disclosure requirements at March 31, 2021 and December 31, 2020. In addition to universal life products and finance leases, financial instruments that are carried in the Company’s Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table.
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Variable Interest Entities |
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Mar. 31, 2021 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest EntitiesWe perform ongoing qualitative analyses of our involvement with variable interest entities to determine if consolidation is required. The Company determined it was not a primary beneficiary in any material variable interest entity as of March 31, 2021 or December 31, 2020. The Company’s involvement with variable interest entities for which it is not the primary beneficiary has not changed materially from December 31, 2020. For details of our accounting policy for variable interest entities and the composition of variable interest entities with which the Company is involved, refer to Note 13 in our 2020 Form 10-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 maximum exposure. |
Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) (“AOCI”) AOCI includes unrealized appreciation on securities and derivatives (excluding appreciation on investments supporting future policy benefit liabilities of the run-off settlement annuity business) (See Note 9), foreign currency translation and the net postretirement benefits liability adjustment. AOCI includes the Company’s share from unconsolidated entities reported on the equity method. Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to net income in the same period that the related pre-tax AOCI reclassifications are recognized. Changes in the components of AOCI were as follows:
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Leases | Leases Operating and finance lease Right-of-Use (“ROU”) assets and lease liabilities were as follows:
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Leases | Leases Operating and finance lease Right-of-Use (“ROU”) assets and lease liabilities were as follows:
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Income Taxes |
3 Months Ended |
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Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome Tax ExpenseThe 22.6% effective tax rate for the three months ended March 31, 2021 was higher than the 14.9% rate for the same period in 2020. This increase is primarily attributable to the absence of favorable items which reduced the rate in 2020, including settlements of uncertain tax positions and the remeasurement of deferred state income taxes; partially offset by the elimination of the nondeductible health insurer tax in 2021 |
Contingencies and Other Matters |
3 Months Ended |
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Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Other Matters | Contingencies and Other Matters The Company, through its subsidiaries, is contingently liable for various guarantees provided in the ordinary course of business. A.Financial Guarantees: Retiree and Life Insurance Benefits The Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree benefits. For the majority of these benefits, the sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations. If employers fail to do so, the Company or an affiliate of Prudential Retirement Insurance and Annuity, the buyer of the retirement benefits business (see Note 8 for further information) has the right to redirect the management of the related assets to provide for benefit payments. As of March 31, 2021, employers maintained assets that generally exceeded the benefit obligations under these arrangements of approximately $445 million. An additional liability is established if management believes that the Company will be required to make payments under the guarantees; there were no additional liabilities required for these guarantees, net of reinsurance, as of March 31, 2021. 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 Company’s consolidated results of operations, liquidity or financial condition. B.Certain Other Guarantees The Company had indemnification obligations as of March 31, 2021 in connection with acquisition and disposition transactions. These indemnification obligations are triggered by the breach of representations or covenants provided by the Company, such as representations for the presentation of financial statements, filing of tax returns, compliance with law or identification of outstanding litigation. These obligations are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential amount due is subject to contractual limitations based on a percentage of the transaction purchase price, while in other cases limitations are not specified or applicable. The Company does not believe that it is possible to determine the maximum potential amount due under these obligations because not all amounts due under these indemnification obligations are subject to limitation. There were no liabilities for these indemnification obligations as of March 31, 2021. C.Guaranty Fund Assessments The Company operates in a regulatory environment that may require its participation in assessments under state insurance guaranty association laws. The Company’s exposure to assessments for certain obligations of insolvent insurance companies to policyholders and claimants is based on its share of business written in the relevant jurisdictions. There were no material effects for existing or new guaranty fund assessments for the three months ended March 31, 2021. D.Legal and Regulatory Matters The Company is routinely involved in numerous claims, lawsuits, regulatory inquiries and audits, government investigations, including under the federal False Claims Act and state false claims acts initiated by a government investigating body or by a qui tam relator’s filing of a complaint under court seal, and other legal matters arising, for the most part, in the ordinary course of managing a global health service business. Additionally, the Company has received and is cooperating 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 Service or other state and foreign jurisdictions, including those resulting in litigation, are accounted 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 material litigation matters are described below. For those matters that the Company has identified with a reasonably possible material loss, the Company provides disclosure in the aggregate of accruals and range of loss, or a statement that such information cannot be estimated. The Company’s accruals for the matters discussed below under “Litigation Matters” and “Regulatory Matters” are not material. Due to numerous uncertain factors presented in these cases, it is not possible to estimate an aggregate range of loss (if any) for these matters at this time. In light of the uncertainties involved in these matters, there is no assurance that their ultimate resolution will not exceed the amounts currently accrued by the Company. An adverse outcome in one or more of these matters could be material to the Company’s results of operations, financial condition or liquidity for any particular period. The outcomes of lawsuits are inherently unpredictable and we may be unsuccessful in these ongoing litigation matters or any future claims or litigation. Litigation Matters Risk Corridors and CSR Litigation with the Federal Government. As a result of a Supreme Court decision in April 2020, the Company filed suit in early May 2020 against the United States in the U.S. Court of Federal Claims seeking to recover two types of payments the Federal Government owes Cigna under the risk corridors and cost-sharing reduction (“CSR”) programs of The Patient Protection and Affordable Care Act. In aggregate, the complaint sought to recover more than $315 million: $120 million in risk corridors payments and more than $195 million in CSR payments. We received $120 million in payments in September 2020, which resolved our risk corridors claim. Our claim seeking recovery for CSR payments is stayed until either the Federal Circuit’s judgments in the CSR appeals become final and non-appealable or the Supreme Court resolves any petition for writ of certiorari. Cigna Litigation with Anthem. In February 2017, the Company filed suit against Anthem, Inc. in the Delaware Court of Chancery (the “Chancery Court”) seeking, among other relief, payment of the $1.85 billion reverse termination fee under the parties’ 2015 merger agreement and damages. Anthem countersued, alleging its own claims for damages. A trial was held during the first quarter of 2019. In August 2020, the Chancery Court issued an opinion finding that, although Cigna breached its contractual obligation to use reasonable best efforts to support the Anthem/Cigna merger, its actions did not cause the merger to fail. The Court denied claims by both parties for damages and further denied Cigna’s claim for the reverse termination fee. The Company filed a Notice of Appeal with the Delaware Supreme Court on October 30, 2020, and sought reversal of the portion of the Chancery Court’s decision denying Cigna the reverse termination fee. Briefing on the appeal was completed on January 29, 2021 and oral arguments were held on April 14, 2021. On May 3, 2021, the Delaware Supreme Court issued an order affirming the decision of the Chancery Court. Express Scripts Litigation with Anthem. In March 2016, Anthem filed a lawsuit in the United States District Court for the Southern District of New York alleging various breach of contract claims against Express Scripts relating to the parties’ rights and obligations under the periodic pricing review section of the pharmacy benefit management agreement between the parties including allegations that Express Scripts failed to negotiate new pricing concessions in good faith, as well as various alleged service issues. Anthem also requested that the court enter declaratory judgment that Express Scripts is required to provide Anthem competitive benchmark pricing, that Anthem can terminate the agreement and that Express Scripts is required to provide Anthem with post-termination services at competitive benchmark pricing for one year following any termination by Anthem. Anthem claims it is entitled to $13 billion in additional pricing concessions over the remaining term of the agreement, as well as $1.8 billion for one year following any contract termination by Anthem and $150 million damages for service issues (“Anthem’s Allegations”). On April 19, 2016, in response to Anthem’s complaint, Express Scripts filed its answer denying Anthem’s Allegations in their entirety and asserting affirmative defenses and counterclaims against Anthem. The court subsequently granted Anthem’s motion to dismiss two of six counts of Express Scripts’ amended counterclaims. The current scheduling order runs through the completion of summary judgment briefing in October 2021. There is no tentative trial date. Regulatory Matters Civil Investigative Demand. The U.S. Department of Justice (“DOJ”) is conducting industry-wide investigations of Medicare Advantage organizations’ risk adjustment practices under Medicare Parts C and D including medical chart reviews and health exams. For certain Medicare Advantage organizations, those investigations have resulted in litigation. The Company has received information requests (civil investigative demands) from the DOJ (U.S. Attorney’s Offices for the Eastern District of Pennsylvania and the Southern District of New York ("SDNY")). We are continuing to cooperate with the DOJ and have responded and continue to respond to its requests. Additionally, in relation to the SDNY’s investigation, a qui tam action that was filed by a relator in the United States District Court for the Southern District of New York in 2017 was unsealed on August 6, 2020. The action asserts claims related to risk adjustment practices arising from certain health exams conducted as part of Cigna’s Medicare Advantage business. The DOJ has not intervened in the case at this time.
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Segment Information |
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Segment Information | Segment Information See Note 1 for a description of our segments. A description of our basis for reporting segment operating results is outlined below. Intersegment revenues primarily reflect pharmacy related transactions between the Evernorth and U.S. Medical segments. The Company uses “pre-tax adjusted income from operations” and “adjusted revenues” as its principal financial measures of segment operating performance because management believes they best reflect the underlying results of business operations and permit analysis of trends in underlying revenue, expenses and profitability. We define pre-tax adjusted income from operations as income before taxes excluding net realized investment gains and losses, amortization of acquired intangible assets and special items. Cigna’s share of certain realized investment results of its joint ventures reported in the International Markets segment using the equity method of accounting are also excluded. Income or expense amounts excluded from adjusted income from operations because they are not indicative of underlying performance or the responsibility of operating segment management include: •Realized investment gains (losses) including changes in market values of certain financial instruments between balance sheet dates, as well as gains and losses associated with invested asset sales. Cigna's share of certain realized investment results of its joint ventures reported in the International Markets segment using the equity method of accounting are also excluded. •Amortization of acquired intangible assets because these relate to costs incurred for acquisitions. •Special items, if any, that management believes are not representative of the underlying results of operations due to the nature or size of these matters. The Company does not report total assets by segment because this is not a metric used to allocate resources or evaluate segment performance. The term adjusted revenues is defined as total revenues excluding the following adjustments: special items and Cigna's share of certain realized investment results of its joint ventures reported in the International Markets segment using the equity method of accounting. We exclude these items from this measure because management believes they are not indicative of past or future underlying performance of the business. The following tables present the special items recorded by the Company for the three months ended March 31, 2021 and 2020.
(1)Includes the Company's share of certain realized investment results of its joint ventures reported in the International Markets segment using the equity method of accounting. Revenue from external customers includes pharmacy revenues, premiums and fees and other revenues. The following table presents these revenues by product, premium and service type for the three months ended March 31:
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Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of Cigna Corporation and its consolidated subsidiaries. Intercompany transactions and accounts have been eliminated in consolidation. These Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Amounts recorded in the Consolidated Financial Statements necessarily reflect management’s estimates and assumptions about medical costs, investment and receivable valuations, interest rates and other factors. Significant estimates are discussed throughout these Notes; however, actual results could differ from those estimates. The impact of a change in estimate is generally included in earnings in the period of adjustment. These interim Consolidated Financial Statements are unaudited but include all adjustments (including normal recurring adjustments) necessary, in the opinion of management, for a fair statement of financial position and results of operations for the periods reported. The interim Consolidated Financial Statements and Notes should be read in conjunction with the Consolidated Financial Statements and Notes included in the 2020 Annual Report on Form 10-K (“2020 Form 10-K”). The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates. This and other factors, including the seasonal nature of portions of the health care and related benefits business, competitive and other market conditions, as well as COVID-19 related impacts, call for caution in estimating full-year results based on interim results of operations.
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Unpaid Claims and Claims Expenses | Unpaid Claims and Claim Expenses – U.S. MedicalThis liability reflects estimates of the ultimate cost of claims that have been incurred but not reported, including expected development on reported claims, those that have been reported but not yet paid (reported claims in process) and other medical care expenses and services payable that are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities. |
Reinsurance | Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims of certain business for which the Company administers the plan benefits without any right of offset. See Note 8 for additional information on reinsuranceThe Company’s insurance subsidiaries enter into agreements with other insurance companies to assume and cede reinsurance. Reinsurance is ceded primarily in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance is also used to limit losses from large exposures and to permit recovery of a portion of direct or assumed losses. Reinsurance does not relieve the originating insurer of liability. Therefore, reinsured liabilities must continue to be reported along with the related reinsurance recoverables. The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk. Collateral levels are defined internally based on the fair value of the collateral relative to the carrying amount of the reinsurance recoverable, the frequency at which collateral is required to be replenished and the potential for volatility in the collateral’s fair value. The Company bears the risk of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company. The Company reviews its reinsurance arrangements and establishes reserves against the recoverables, as further described above. GMDB is accounted for as assumed and ceded reinsurance and GMIB assets and liabilities are reported as derivatives at fair value as discussed below. GMIB assets are reported in Other current assets and Other assets, and GMIB liabilities are reported in Accrued expenses and other liabilities and Other non-current liabilities. Assumptions used in fair value measurement these assets and liabilities are discussed in Note 10 of the Company's 2020 Form 10-K.
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Investments | Review of declines in fair value. Management reviews impaired debt securities to determine whether a credit loss allowance is needed based on criteria that include: •severity of decline; •financial health and specific prospects of the issuer; and •changes in the regulatory, economic or general market environment of the issuer’s industry or geographic region. Mortgage loans held by the Company are made exclusively to commercial borrowers and are diversified by property type, location and borrower. Loans are generally issued at fixed rates of interest and are secured by high quality, primarily completed and substantially leased operating properties. Commercial mortgage loans are classified as either current or long-term investments based on their contractual maturities. Credit quality. The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period. Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at origination that is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on a consistent and ongoing basis. Quality ratings are based on our evaluation of a number of key inputs related to the loan, including real estate market-related factors such as rental rates and vacancies, and property-specific inputs such as growth rate assumptions and lease rollover statistics. However, the two most significant contributors to the credit quality rating are the debt service coverage and loan-to-value ratios. The debt service coverage ratio measures the amount of property cash flow available to meet annual interest and principal payments on debt, with a ratio below 1.0 indicating that there is not enough cash flow to cover the required loan payments. The loan-to-value ratio, commonly expressed as a percentage, compares the amount of the loan to the fair value of the underlying property collateralizing the loan. The Company’s annual in-depth review of its commercial mortgage loan investments is the primary mechanism for identifying emerging risks in the portfolio. The Company’s investment professionals completed the annual in-depth review in the second quarter of 2020 that included an analysis of each underlying property’s most recent annual financial statements, rent rolls, operating plans, budgets, a physical inspection of the property and other pertinent factors. Based on historical results, current leases, lease expirations and rental conditions in each market, the Company estimated the current year and future stabilized property income and fair value for each loan. The Company re-evaluates a loan’s credit quality between annual reviews if new property information is received or an event such as delinquency or a borrower’s request for restructure causes management to believe that the Company’s estimate of financial performance, fair value or the risk profile of the underlying property has been impacted. Other long-term investments include investments in unconsolidated entities, including certain limited partnerships and limited liability companies holding real estate, securities or loans. These investments are carried at cost plus the Company's ownership percentage of reporting income or loss, based on the financial statements of the underlying investments that are generally reported at fair value. Income or loss from these investments is reported on a one quarter lag due to the timing of when financial information is received from the general partner or manager of the investments. Other long-term investments also include investment real estate carried at depreciated cost less any impairment write-downs to fair value when cash flows indicate that the carrying value may not be recoverable. Additionally, statutory and other restricted deposits, healthcare related investment partnerships and foreign currency swaps carried at fair value are reported in the table below as Other.
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Derivative Financial Instruments | The Company uses derivative financial instruments to manage the characteristics of investment assets (such as duration, yield, currency and liquidity) to meet the varying demands of the related insurance and contract holder liabilities. The Company also uses derivative financial instruments to hedge the risk of changes in the net assets of certain of its foreign subsidiaries due to changes in foreign currency exchange rates. The Company has written and purchased GMIB reinsurance contracts in its run-off reinsurance business that are accounted for as freestanding derivatives as discussed in Note 8. Derivatives in the Company’s separate accounts are excluded from the following discussion because associated gains and losses generally accrue directly to separate account policyholders. Derivative instruments used by the Company typically include foreign currency swap contracts and foreign currency forward contracts. Foreign currency swap contracts periodically exchange cash flows between two currencies for principal and interest. Foreign currency forward contracts require the Company to purchase a foreign currency in exchange for the functional currency of its operating unit at a future date. The Company manages the credit risk of these derivative instruments by diversifying its portfolio among approved dealers of high credit quality and through routine monitoring of credit risk exposures. Certain of the Company’s over-the-counter derivative instruments require either the Company or the counterparty to post collateral or demand immediate payment depending on the amount of the net liability position of the derivative instrument and predefined financial strength or credit rating thresholds.
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Fair Value Measurements | The Company carries certain financial instruments at fair value in the financial statements including debt securities, certain equity securities, short-term investments and derivatives. Other financial instruments are measured at fair value only under certain conditions, such as when impaired or when there are observable price changes for equity securities with no readily determinable fair value. Fair value is defined as the price at which an asset could be exchanged in an orderly transaction between market participants at the balance sheet date. A liability’s 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 settle the liability with the creditor. The Company’s financial assets and liabilities carried at fair value have been classified based upon a hierarchy defined by GAAP. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level of input that is significant to its measurement. For example, a financial asset or liability carried at fair value would be classified in Level 3 if unobservable inputs were significant to the instrument’s fair value, even though the measurement may be derived using inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The Company estimates fair values using prices from third parties or internal pricing methods. Fair value estimates received from third-party pricing services are based on reported trade activity and quoted market prices when available, and other market information that a market participant would use to estimate fair value. The internal pricing methods are performed by the Company’s investment professionals and generally involve using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality as well as other qualitative factors. In instances where there is little or no market activity for the same or similar instruments, fair value is estimated using methods, models and assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price. These valuation techniques involve some level of estimation and judgment that becomes significant with increasingly complex instruments or pricing models. The Company is responsible for determining fair value and for assigning the appropriate level within the fair value hierarchy based on the significance of unobservable inputs. The Company reviews methodologies, processes and controls of third-party pricing services and compares prices on a test basis to those obtained from other external pricing sources or internal estimates. The Company performs ongoing analyses of both prices received from third-party pricing services and those developed internally to determine that they represent appropriate estimates of fair value. The controls executed by the Company include evaluating changes in prices and monitoring for potentially stale valuations. The Company also performs sample testing of sales values to confirm the accuracy of prior fair value estimates. The minimal exceptions identified during these processes indicate that adjustments to prices are infrequent and do not significantly impact valuations. An annual due-diligence review of the most significant pricing service is conducted to review their processes, methodologies and controls. This review includes a walk-through of inputs for a sample of securities held across various asset types to validate the documented pricing process.Level 1 Financial Assets Inputs for instruments classified in Level 1 include unadjusted quoted prices for identical assets in active markets accessible at the measurement date. Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets. Assets in Level 1 include actively-traded U.S. government bonds and exchange-listed equity securities. A relatively small portion of the Company’s investment assets are classified in this category given the narrow definition of Level 1 and the Company’s investment asset strategy to maximize investment returns. Level 2 Financial Assets and Financial Liabilities Inputs for instruments classified in Level 2 include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active or other inputs that are market observable or can be corroborated by market data for the term of the instrument. Such other inputs include market interest rates and volatilities, spreads and yield curves. An instrument is classified in Level 2 if the Company determines that unobservable inputs are insignificant. Debt and equity securities. Approximately 94% of the Company’s investments in debt and equity securities are classified in Level 2 including most public and private corporate debt and hybrid equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks. Third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics because many debt securities do not trade daily. Pricing models are used to determine these prices when recent trades are not available. These models calculate fair values by discounting future cash flows at estimated market interest rates. Such market rates are derived by calculating the appropriate spreads over comparable U.S. Treasury securities based on the credit quality, industry and structure of the asset. Typical inputs and assumptions to pricing models include, but are not limited to, a combination of benchmark yields, reported trades, issuer spreads, liquidity, benchmark securities, bids, offers, reference data and industry and economic events. For mortgage-backed securities, inputs and assumptions may also include characteristics of the issuer, collateral attributes, prepayment speeds and credit rating. Nearly all of these instruments are valued using recent trades or pricing models. Less than 1% of the fair value of investments classified in Level 2 represents foreign bonds that are valued using a single, unadjusted market-observable input derived by averaging multiple broker-dealer quotes, consistent with local market practice. Short-term investments are carried at fair value that approximates cost. The Company compares market prices for these securities to recorded amounts on a regular basis to validate that current carrying amounts approximate exit prices. The short-term nature of the investments and corroboration of the reported amounts over the holding period support their classification in Level 2. Derivative assets and liabilities classified in Level 2 represent over-the-counter instruments such as foreign currency forward and swap contracts. Fair values for these instruments are determined using market observable inputs including forward currency and interest rate curves and widely published market observable indices. Credit risk related to the counterparty and the Company is considered when estimating the fair values of these derivatives. However, the Company is largely protected by collateral arrangements with counterparties and determined that no adjustments for credit risk were required as of March 31, 2021 or December 31, 2020. The nature and use of these derivative financial instruments are described in Note 9. Level 3 Financial Assets and Financial Liabilities Certain inputs for instruments classified in Level 3 are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. The Company classifies certain newly-issued, privately-placed, complex or illiquid securities in Level 3. Approximately 5% of debt and equity securities are priced using significant unobservable inputs and classified in this category. Fair values of mortgage and other asset-backed securities, as well as corporate and government debt securities, are primarily determined using pricing models that incorporate the specific characteristics of each asset and related assumptions including the investment type and structure, credit quality, industry and maturity date in comparison to current market indices, spreads and liquidity of assets with similar characteristics. Inputs and assumptions for pricing may also include characteristics of the issuer, collateral attributes and prepayment speeds for mortgage and other asset-backed securities. Recent trades in the subject security or similar securities are assessed when available, and the Company may also review published research in its evaluation, as well as the issuer’s financial statements. Corporate and government debt securities. The significant unobservable input used to value the following corporate and government debt securities is an adjustment for liquidity. This adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security. Mortgage and other asset-backed securities. The significant unobservable inputs used to value the following mortgage and other asset-backed securities are liquidity and weighting of credit spreads. An adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure when there is limited trading activity for the security. An adjustment to weight credit spreads is needed to value a more complex bond structure with multiple underlying collateral and no standard market valuation technique. The weighting of credit spreads is primarily based on the underlying collateral’s characteristics and their proportional cash flows supporting the bond obligations. Significant increases in liquidity or credit spreads would result in lower fair value measurements while decreases in these inputs would result in higher fair value measurements. The unobservable inputs are generally not interrelated and a change in the assumption used for one unobservable input is not accompanied by a change in the other unobservable input.Total gains and losses included in Shareholders’ net income in the tables above are reflected in the Consolidated Statements of Income as Net realized investment gains (losses) and Net investment income. Gains and losses included in Other comprehensive income in the tables above are reflected in Net unrealized appreciation (depreciation) on securities and derivatives in the Consolidated Statements of Comprehensive Income. Transfers into or out of the Level 3 category occur when unobservable inputs, such as the Company’s best estimate of what a market participant would use to determine a current transaction price, become more or less significant to the fair value measurement. Market activity typically decreases during periods of economic uncertainty, and this decrease in activity reduces the availability of market observable data. As a result, the level of unobservable judgement that must be applied to the pricing of certain instruments increases, and is typically observed through the widening of liquidity and credit spreads. Separate account assets classified as Level 1 primarily include exchange-listed equity securities. Level 2 assets primarily include: •corporate and structured bonds valued using recent trades of similar securities or pricing models that discount future cash flows at estimated market interest rates as described above; and •actively-traded institutional and retail mutual fund investments. Separate account assets classified in Level 3 primarily support Cigna’s pension plans and include certain newly-issued, privately-placed, complex or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans.Separate account investments in securities partnerships, real estate and hedge funds are generally valued based on the separate account’s ownership share of the equity of the investee (NAV as a practical expedient) including changes in the fair values of its underlying investments. Substantially all of these assets support the Cigna Pension Plans.Some financial assets and liabilities are not carried at fair value each reporting period, but may be measured using fair value only under certain conditions such as when investments become impaired, including investment real estate and commercial mortgage loans and certain equity securities with no readily determinable fair value. For the three months ended March 31, 2021 and 2020, there were no such impairments. Equity securities with no readily determinable fair value are also measured at fair value when there are observable price changes from orderly transactions with the same issuer.
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Separate Accounts | Separate AccountsThe investment income and fair value gains and losses of separate account assets generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company’s Consolidated Statements of Income and Cash Flows. |
AOCI | AOCI includes unrealized appreciation on securities and derivatives (excluding appreciation on investments supporting future policy benefit liabilities of the run-off settlement annuity business) (See Note 9), foreign currency translation and the net postretirement benefits liability adjustment. AOCI includes the Company’s share from unconsolidated entities reported on the equity method. Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to net income in the same period that the related pre-tax AOCI reclassifications are recognized. |
Commitment and Contingencies | The Company is routinely involved in numerous claims, lawsuits, regulatory inquiries and audits, government investigations, including under the federal False Claims Act and state false claims acts initiated by a government investigating body or by a qui tam relator’s filing of a complaint under court seal, and other legal matters arising, for the most part, in the ordinary course of managing a global health service business. Additionally, the Company has received and is cooperating 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 Service or other state and foreign jurisdictions, including those resulting in litigation, are accounted 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 material litigation matters are described below. For those matters that the Company has identified with a reasonably possible material loss, the Company provides disclosure in the aggregate of accruals and range of loss, or a statement that such information cannot be estimated. The Company’s accruals for the matters discussed below under “Litigation Matters” and “Regulatory Matters” are not material. Due to numerous uncertain factors presented in these cases, it is not possible to estimate an aggregate range of loss (if any) for these matters at this time. In light of the uncertainties involved in these matters, there is no assurance that their ultimate resolution will not exceed the amounts currently accrued by the Company. An adverse outcome in one or more of these matters could be material to the Company’s results of operations, financial condition or liquidity for any particular period. The outcomes of lawsuits are inherently unpredictable and we may be unsuccessful in these ongoing litigation matters or any future claims or litigation.
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Segment Information | A description of our basis for reporting segment operating results is outlined below. Intersegment revenues primarily reflect pharmacy related transactions between the Evernorth and U.S. Medical segments. The Company uses “pre-tax adjusted income from operations” and “adjusted revenues” as its principal financial measures of segment operating performance because management believes they best reflect the underlying results of business operations and permit analysis of trends in underlying revenue, expenses and profitability. We define pre-tax adjusted income from operations as income before taxes excluding net realized investment gains and losses, amortization of acquired intangible assets and special items. Cigna’s share of certain realized investment results of its joint ventures reported in the International Markets segment using the equity method of accounting are also excluded. Income or expense amounts excluded from adjusted income from operations because they are not indicative of underlying performance or the responsibility of operating segment management include: •Realized investment gains (losses) including changes in market values of certain financial instruments between balance sheet dates, as well as gains and losses associated with invested asset sales. Cigna's share of certain realized investment results of its joint ventures reported in the International Markets segment using the equity method of accounting are also excluded. •Amortization of acquired intangible assets because these relate to costs incurred for acquisitions. •Special items, if any, that management believes are not representative of the underlying results of operations due to the nature or size of these matters. The Company does not report total assets by segment because this is not a metric used to allocate resources or evaluate segment performance. The term adjusted revenues is defined as total revenues excluding the following adjustments: special items and Cigna's share of certain realized investment results of its joint ventures reported in the International Markets segment using the equity method of accounting. We exclude these items from this measure because management believes they are not indicative of past or future underlying performance of the business.
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Accounts Receivable, Net (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Net | The following amounts were included within Accounts receivable, net:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were computed as follows:
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Outstanding Employee Stock Options Not Included in the Computation of Diluted Earnings Per Share | The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive.
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Amounts of Debt and Finance Leases | The outstanding amounts of debt and finance leases were as follows:
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Summary of Debt Issuances | The proceeds of this issuance were mainly used to redeem outstanding debt securities. The remaining proceeds are available for general corporate purposes. Interest on this debt is paid semi-annually.
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Insurance and Contractholder Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insurance Loss Reserves [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Insurance and Contractholder Liabilities, Activity in the Unpaid Claims Liability and Liability Details for Unpaid Claims and Claim Expenses | The Company’s insurance and contractholder liabilities were comprised of the following:
(1)Amounts classified as Liabilities of business held for sale primarily include $5.1 billion of unpaid claims, $726 million of contractholder deposit funds and $640 million of future policy benefits as of March 31, 2020. Activity, net of intercompany transactions, in the unpaid claims liability for the U.S. Medical segment for the three months ended March 31 was as follows:
Liability balance details. The liability details for unpaid claims and claim expenses are as follows:
Activity in the Company’s liabilities for unpaid claims and claim expenses for International Markets and, prior to the sale, Group Disability and Life, is presented in the following table. Liabilities associated with Other Operations are excluded because they pertain to obligations for long-duration insurance contracts or, if short-duration, the liabilities have been fully reinsured.
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Variances in Incurred Costs Related to Prior Years' Unpaid Claims and Claims Expenses | Variances in incurred costs related to prior years’ unpaid claims and claim expenses that resulted from the differences between actual experience and the Company’s key assumptions for the three months ended March 31 were as follows:
(1)Percentage of current year incurred costs as reported for the year ended December 31, 2020. (2)Percentage of current year incurred costs as reported for the year ended December 31, 2019.
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Reinsurance (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reinsurance Recoverables by Range of External Credit Rating and Collateral Level | The Company’s reinsurance recoverables as of March 31, 2021 are presented in the following table by range of external credit rating and collateral level.
(1)Includes A- equivalent and higher current ratings certified by a nationally recognized statistical rating organization ("NRSRO") (2)Includes BBB- to BBB+ equivalent current credit ratings certified by an NRSRO (3)Includes collateral provisions requiring the reinsurer to fully collateralize its obligation if its external credit rating is downgraded to a specified level
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Effects of Reinsurance | In the Company’s Consolidated Statements of Income, premiums were reported net of amounts ceded to reinsurers and medical costs and other benefit expenses were reported net of reinsurance recoveries in the following amounts:
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Account Value, Net Amount at Risk and the Number of Contractholders for Guarantees Assumed in the Event of Death | The following table presents the account value, net amount at risk and the number of contractholders for guarantees assumed by the Company in the event of death. The net amount at risk is the amount that the Company would have to pay if all contractholders died as of the specified date. The Company should be reimbursed in full for these payments unless the Berkshire reinsurance limit is exceeded.
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Schedule of Derivative Assets at Fair Value | GMIB liabilities totaling $595 million as of March 31, 2021 and $729 million as of December 31, 2020 are classified as Level 3 because fair value inputs are largely unobservable. There were three reinsurers covering 100% of the GMIB exposures as of March 31, 2021 and December 31, 2020 as follows:
All reinsurers are rated A- equivalent and higher by an NRSRO.
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Investments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments by Category | The following table summarizes the Company's investments by category and current or long-term classification.
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Debt Securities by Contractual Maturity | The amortized cost and fair value by contractual maturity periods for debt securities were as follows at March 31, 2021:
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Gross Unrealized Appreciation (Depreciation) on Debt Securities | Gross unrealized appreciation (depreciation) on debt securities by type of issuer is shown below.
(1)Net unrealized appreciation for these investments is excluded from accumulated other comprehensive income.
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Summary of Debt Securities with a Decline in Fair Value | The table below summarizes debt securities with a decline in fair value from amortized cost for which an allowance for credit losses has not been recorded, by investment grade and the length of time these securities have been in an unrealized loss position. These debt securities are primarily corporate securities with a decline in fair value that reflects an increase in market yields since purchase. See discussion of Realized Investment Gains and Losses below for further information on the credit loss expense recorded for the Company's investments.
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Roll-Forward of the Allowance for Credit Losses on Debt Securities | The table below presents a roll-forward of the allowance for credit losses on debt securities for the three months ended March 31:
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Equity Security Investments | The following table provides the values of the Company's equity security investments as of March 31, 2021 and December 31, 2020. The amount of impairments or value changes resulting from observable price changes on equity securities still held was not material to the financial statements as of March 31, 2021 or December 31, 2020.
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Summary of the Credit Risk Profile of the Commercial Mortgage Loan Portfolio | The following table summarizes the credit risk profile of the Company’s commercial mortgage loan portfolio based on loan-to-value and debt service coverage ratios as of March 31, 2021 and December 31, 2020.
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Carrying Value Information for Other Long-Term Investments | Other long-term investments also include investment real estate carried at depreciated cost less any impairment write-downs to fair value when cash flows indicate that the carrying value may not be recoverable. Additionally, statutory and other restricted deposits, healthcare related investment partnerships and foreign currency swaps carried at fair value are reported in the table below as Other. The following table provides the carrying value information for these investments.
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Short-Term Investments and Cash Equivalents | Short-term investments and cash equivalents included the following types of issuers. The decrease in Money market funds is primarily due to the deployment of proceeds received on December 31, 2020 from the U.S. Group Disability and Life business divestiture for Corporate purposes.
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Summary of Derivative Instruments Held | The following table summarizes the types and notional quantity of derivative instruments held by the Company. As of March 31, 2021 and December 31, 2020, the effects of these individual hedging strategies were not material to the Consolidated Financial Statements, including gains or losses reclassified from accumulated other comprehensive income into shareholders' net income, as well as amounts excluded from the assessment of hedge effectiveness.
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Realized Gains and Losses on Investments | The following realized gains and losses on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business (consistent with accounting for a premium deficiency), as well as realized gains and losses attributed to the Company’s separate accounts because those gains and losses generally accrue directly to separate account policyholders.
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Sales Information for Available-for-Sale Debt Securities | The following table presents sales information for available-for-sale debt securities. Gross gains on sales and gross losses on sales exclude amounts required to adjust future policy benefits for the run-off settlement annuity business.
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets and Financial Liabilities Carried at Fair Value | The following table provides information as of March 31, 2021 and December 31, 2020 about the Company’s financial assets and liabilities carried at fair value. Separate account assets are also recorded at fair value on the Company’s Consolidated Balance Sheets and are reported separately in the Separate Accounts section below as gains and losses related to these assets generally accrue directly to policyholders.
(1)Excludes certain equity securities that have no readily determinable fair value. (2)As a practical expedient, certain real estate funds are carried at fair value based on the Company’s ownership share of the equity of the investee (Net Asset Value (“NAV”)) including changes in the fair value of its underlying investments. The Company has $46 million in unfunded commitments in these funds as of March 31, 2021. (3)Derivative assets above include $6 million that are presented in the Short-term investments category that is disclosed in Note 9. See Note 9 for more information on our Derivative Financial Instruments.
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Fair Value and Significant Unobservable Inputs Used in Pricing Debt Securities | The following table summarizes the fair value and significant unobservable inputs used in pricing the following debt securities that were developed directly by the Company as of March 31, 2021 and December 31, 2020. The range and weighted average basis point (“bps”) amounts for liquidity and credit spreads (adjustment to discount rates) reflect the Company’s best estimates of the unobservable adjustments a market participant would make to calculate these fair values. Corporate and government debt securities. The significant unobservable input used to value the following corporate and government debt securities is an adjustment for liquidity. This adjustment is needed to reflect current market conditions and issuer circumstances when there is limited trading activity for the security. Mortgage and other asset-backed securities. The significant unobservable inputs used to value the following mortgage and other asset-backed securities are liquidity and weighting of credit spreads. An adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure when there is limited trading activity for the security. An adjustment to weight credit spreads is needed to value a more complex bond structure with multiple underlying collateral and no standard market valuation technique. The weighting of credit spreads is primarily based on the underlying collateral’s characteristics and their proportional cash flows supporting the bond obligations.
(1)The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.
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Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value | The following tables summarize the changes in financial assets and financial liabilities classified in Level 3 for the three months ended March 31, 2021 and 2020. Gains and losses reported in these tables may include net changes in fair value that are attributable to both observable and unobservable inputs.
(1)Amounts do not accrue to shareholders.
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Fair Values of Separate Account Assets | Fair values of separate account assets at March 31, 2021 and December 31, 2020 were as follows:
(1)Non-guaranteed separate accounts included $4.2 billion as of March 31, 2021 and December 31, 2020 in assets supporting the Company’s pension plans, including $0.3 billion classified in Level 3 as of March 31, 2021 and December 31, 2020.
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Additional Information on Separate Account Assets Priced at NAV | Separate account investments in securities partnerships, real estate and hedge funds are generally valued based on the separate account’s ownership share of the equity of the investee (NAV as a practical expedient) including changes in the fair values of its underlying investments. Substantially all of these assets support the Cigna Pension Plans. The following table provides additional information on these investments.
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Fair Value Disclosures for Financial Instruments Not Carried at Fair Value | The following table includes the Company’s financial instruments not recorded at fair value that are subject to fair value disclosure requirements at March 31, 2021 and December 31, 2020. In addition to universal life products and finance leases, financial instruments that are carried in the Company’s Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table.
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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Components of AOCI | Changes in the components of AOCI were as follows:
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Leases (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating and Finance Lease Right of Use ("ROU") Assets and Lease Liabilities | Operating and finance lease Right-of-Use (“ROU”) assets and lease liabilities were as follows:
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Special Items | The following tables present the special items recorded by the Company for the three months ended March 31, 2021 and 2020.
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Summarized Segment Financial Information | Summarized segment financial information was as follows:
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Revenue from External Customers | Revenue from external customers includes pharmacy revenues, premiums and fees and other revenues. The following table presents these revenues by product, premium and service type for the three months ended March 31:
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Accounts Receivable, Net - Summary of Accounts Receivable, Net (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Receivables [Abstract] | ||
Noninsurance customer receivables | $ 6,249 | $ 5,534 |
Pharmaceutical manufacturers receivable | 4,978 | 4,676 |
Insurance customer receivables | 2,172 | 1,789 |
Other receivables | 189 | 192 |
Total | $ 13,588 | $ 12,191 |
Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Receivables [Abstract] | ||
Allowance for receivables net current | $ 1,300 | $ 1,200 |
Allowance for current expected credit losses on accounts receivable | $ 70 | $ 65 |
Mergers, Acquisitions and Divestitures - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Apr. 30, 2021 |
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Business Acquisition [Line Items] | ||||
Integration and transaction-related costs, pre-tax | $ 29 | $ 97 | ||
Integration and transaction-related costs, after-tax | $ 22 | $ 74 | ||
U.S Group Disability and Life Insurance | Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash proceeds from sale of business | $ 6,200 | |||
Gain (loss) on sale of business, pre-tax | 4,200 | |||
Gain (loss) on sale of business, after-tax | $ 3,200 | |||
MDLIVE, Inc. | Subsequent Event | ||||
Business Acquisition [Line Items] | ||||
Ownership interest acquired | 100.00% |
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Earnings Per Share [Abstract] | ||
Shareholders’ net income | $ 1,161 | $ 1,181 |
Shares: | ||
Weighted average (in shares) | 348,248 | 370,440 |
Common stock equivalents (in shares) | 3,728 | 4,199 |
Total shares (in shares) | 351,976 | 374,639 |
EPS, basic (in dollars per share) | $ 3.33 | $ 3.19 |
EPS, effect of dilution (in dollars per share) | (0.03) | (0.04) |
EPS, diluted (in dollars per share) | $ 3.30 | $ 3.15 |
Earnings Per Share - Outstanding Employee Stock Options Not Included in the Computation of Diluted Earnings Per Share (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Employee Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive options (in shares) | 1.5 | 4.1 |
Earnings Per Share - Shares of Common Stock Held in Treasury (Details) - shares shares in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|---|
Earnings Per Share [Abstract] | |||
Shares of common stock held in treasury (in shares) | 48.7 | 35.5 | 18.8 |
Debt - Outstanding Amounts of Debt and Finance Leases (Details) - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Short-term debt | ||
Commercial paper | $ 5,000,000 | $ 1,030,000,000 |
Other, including finance leases | 20,000,000 | 18,000,000 |
Total short-term debt | 404,000,000 | 3,374,000,000 |
Long-term debt | ||
Other, including finance leases | 35,000,000 | 36,000,000 |
Total long-term debt | 31,568,000,000 | 29,545,000,000 |
$78 million, 6.37% Notes due 6/2021 | ||
Short-term debt | ||
Current maturities | 78,000,000 | 78,000,000 |
Long-term debt | ||
Gross value | $ 78,000,000 | |
Stated interest rate | 6.37% | |
$1,000 million, Floating Rate Notes due 9/2021 | ||
Short-term debt | ||
Current maturities | $ 0 | 999,000,000 |
Long-term debt | ||
Gross value | 1,000,000,000 | |
$1,250 million, 3.4% Notes due 9/2021 | ||
Short-term debt | ||
Current maturities | $ 0 | 1,249,000,000 |
Long-term debt | ||
Gross value | 1,250,000,000 | |
Stated interest rate | 3.40% | |
Notes due 2022 4% Interest | ||
Short-term debt | ||
Current maturities | $ 120,000,000 | 0 |
Long-term debt | ||
Long-term debt | 0 | 276,000,000 |
Gross value | $ 120,000,000 | 277,000,000 |
Stated interest rate | 4.00% | |
Notes Due 2022, 3.9% Interest | ||
Short-term debt | ||
Current maturities | $ 181,000,000 | 0 |
Long-term debt | ||
Long-term debt | 0 | 972,000,000 |
Gross value | $ 181,000,000 | 973,000,000 |
Stated interest rate | 3.90% | |
$500 million, 3.05% Notes due 2022 | ||
Long-term debt | ||
Long-term debt | $ 491,000,000 | 490,000,000 |
Gross value | $ 500,000,000 | |
Stated interest rate | 3.05% | |
$17 million, 8.3% Notes due 2023 | ||
Long-term debt | ||
Long-term debt | $ 17,000,000 | 17,000,000 |
Gross value | $ 17,000,000 | |
Stated interest rate | 8.30% | |
$63 million, 7.65% Notes due 2023 | ||
Long-term debt | ||
Long-term debt | $ 63,000,000 | 63,000,000 |
Gross value | $ 63,000,000 | |
Stated interest rate | 7.65% | |
$700 million, Floating Rate Notes due 2023 | ||
Long-term debt | ||
Long-term debt | $ 698,000,000 | 698,000,000 |
Gross value | 700,000,000 | |
$1,000 million, 3% Notes due 2023 | ||
Long-term debt | ||
Long-term debt | 978,000,000 | 975,000,000 |
Gross value | $ 1,000,000,000 | |
Stated interest rate | 3.00% | |
$1,187 million, 3.75% Notes due 2023 | ||
Long-term debt | ||
Long-term debt | $ 1,184,000,000 | 2,181,000,000 |
Gross value | $ 1,187,000,000 | |
Stated interest rate | 3.75% | |
$500 million, 0.613% Notes due 2024 | ||
Long-term debt | ||
Long-term debt | $ 498,000,000 | 0 |
Gross value | $ 500,000,000 | |
Stated interest rate | 0.613% | |
$1,000 million, 3.5% Notes due 2024 | ||
Long-term debt | ||
Long-term debt | $ 979,000,000 | 977,000,000 |
Gross value | $ 1,000,000,000 | |
Stated interest rate | 3.50% | |
$900 million, 3.25% Notes due 2025 | ||
Long-term debt | ||
Long-term debt | $ 896,000,000 | 896,000,000 |
Gross value | $ 900,000,000 | |
Stated interest rate | 3.25% | |
$2,200 million, 4.125% Notes due 2025 | ||
Long-term debt | ||
Long-term debt | $ 2,191,000,000 | 2,191,000,000 |
Gross value | $ 2,200,000,000 | |
Stated interest rate | 4.125% | |
$1,500 million, 4.5% Notes due 2026 | ||
Long-term debt | ||
Long-term debt | $ 1,504,000,000 | 1,505,000,000 |
Gross value | $ 1,500,000,000 | |
Stated interest rate | 4.50% | |
$800 million, 1.25% Notes due 2026 | ||
Long-term debt | ||
Long-term debt | $ 796,000,000 | 0 |
Gross value | $ 800,000,000 | |
Stated interest rate | 1.25% | |
$1,500 million, 3.4% Notes due 2027 | ||
Long-term debt | ||
Long-term debt | $ 1,413,000,000 | 1,410,000,000 |
Gross value | $ 1,500,000,000 | |
Stated interest rate | 3.40% | |
$259 million, 7.875% Debentures due 2027 | ||
Long-term debt | ||
Long-term debt | $ 259,000,000 | 259,000,000 |
Gross value | $ 259,000,000 | |
Stated interest rate | 7.875% | |
$600 million, 3.05% Notes due 2027 | ||
Long-term debt | ||
Long-term debt | $ 595,000,000 | 595,000,000 |
Gross value | $ 600,000,000 | |
Stated interest rate | 3.05% | |
$3,800 million, 4.375% Notes due 2028 | ||
Long-term debt | ||
Long-term debt | $ 3,781,000,000 | 3,780,000,000 |
Gross value | $ 3,800,000,000 | |
Stated interest rate | 4.375% | |
$1,500 million, 2.4% Notes due 2030 | ||
Long-term debt | ||
Long-term debt | $ 1,490,000,000 | 1,489,000,000 |
Gross value | $ 1,500,000,000 | |
Stated interest rate | 2.40% | |
$1,500 million, 2.375% Notes due 2031 | ||
Long-term debt | ||
Long-term debt | $ 1,489,000,000 | 0 |
Gross value | $ 1,500,000,000 | |
Stated interest rate | 2.375% | |
$45 million, 8.3% Step Down Notes due 2033 | ||
Long-term debt | ||
Long-term debt | $ 45,000,000 | 45,000,000 |
Gross value | $ 45,000,000 | |
Stated interest rate | 8.30% | |
$190 million, 6.15% Notes due 2036 | ||
Long-term debt | ||
Long-term debt | $ 190,000,000 | 190,000,000 |
Gross value | $ 190,000,000 | |
Stated interest rate | 6.15% | |
$2,200 million, 4.8% Notes due 2038 | ||
Long-term debt | ||
Long-term debt | $ 2,180,000,000 | 2,180,000,000 |
Gross value | $ 2,200,000,000 | |
Stated interest rate | 4.80% | |
$750 million, 3.2% Notes due 2040 | ||
Long-term debt | ||
Long-term debt | $ 742,000,000 | 742,000,000 |
Gross value | $ 750,000,000 | |
Stated interest rate | 3.20% | |
$121 million, 5.875% Notes due 2041 | ||
Long-term debt | ||
Long-term debt | $ 119,000,000 | 119,000,000 |
Gross value | $ 121,000,000 | |
Stated interest rate | 5.875% | |
$448 million, 6.125% Notes due 2041 | ||
Long-term debt | ||
Long-term debt | $ 490,000,000 | 490,000,000 |
Gross value | $ 448,000,000 | |
Stated interest rate | 6.125% | |
$317 million, 5.375% Notes due 2042 | ||
Long-term debt | ||
Long-term debt | $ 315,000,000 | 315,000,000 |
Gross value | $ 317,000,000 | |
Stated interest rate | 5.375% | |
$1,500 million, 4.8% Notes due 2046 | ||
Long-term debt | ||
Long-term debt | $ 1,465,000,000 | 1,465,000,000 |
Gross value | $ 1,500,000,000 | |
Stated interest rate | 4.80% | |
$1,000 million, 3.875% Notes due 2047 | ||
Long-term debt | ||
Long-term debt | $ 988,000,000 | 988,000,000 |
Gross value | $ 1,000,000,000 | |
Stated interest rate | 3.875% | |
$3,000 million, 4.9% Notes due 2048 | ||
Long-term debt | ||
Long-term debt | $ 2,966,000,000 | 2,966,000,000 |
Gross value | $ 3,000,000,000 | |
Stated interest rate | 4.90% | |
$1,250 million, 3.4% Notes due 2050 | ||
Long-term debt | ||
Long-term debt | $ 1,235,000,000 | 1,235,000,000 |
Gross value | $ 1,250,000,000 | |
Stated interest rate | 3.40% | |
$1,500 million , 3.4% Notes due 2051 | ||
Long-term debt | ||
Long-term debt | $ 1,476,000,000 | $ 0 |
Gross value | $ 1,500,000,000 | |
Stated interest rate | 3.40% |
Debt - Narrative (Details) |
1 Months Ended | 3 Months Ended | |||
---|---|---|---|---|---|
Apr. 30, 2021
USD ($)
bank
|
Mar. 31, 2021
USD ($)
bank
|
Mar. 31, 2020
USD ($)
|
Apr. 02, 2021
USD ($)
|
Mar. 03, 2021
USD ($)
|
|
Debt Instrument [Line Items] | |||||
Aggregate principal amount of outstanding debt securities redeemed | $ 4,200,000,000 | ||||
Loss on repurchase of debt, pre-tax | 131,000,000 | $ 185,000,000 | |||
Loss on repurchase of debt, after-tax | 101,000,000 | ||||
Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount of outstanding debt securities redeemed | $ 301,000,000 | ||||
Commercial Paper | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 4,250,000,000 | ||||
Five-year Revolving Credit Agreement, Maturing April 2023 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 3,250,000,000 | ||||
Number of participating banks | bank | 23 | ||||
Amount by which credit facilty amount can be increased | $ 500,000,000 | ||||
Amount by which credit facilty term length can be increased | 1 year | ||||
Credit agreement term | 5 years | ||||
Term of borrowing after exercising the "term out" option | 1 year | ||||
Leverage ratio covenant | 60.00% | ||||
Outstanding balances | $ 0 | ||||
Five-year Revolving Credit Agreement, Maturing April 2023 | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 500,000,000 | ||||
364-day Revolving Credit Agreement, Maturing October 2021 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,000,000,000.0 | ||||
Number of participating banks | bank | 23 | ||||
Credit agreement term | 364 days | ||||
Leverage ratio covenant | 60.00% | ||||
Outstanding balances | $ 0 | ||||
Revolving Credit and Letter of Credit Facility Maturing April 2026, Revolving Credit and Letter of Credit Facility Maturing April 2024, and 364 Day Revolving Credit Agreement Maturing April 2022 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Aggregate amount of options to increase commitments | $ 1,500,000,000 | ||||
Five-year Revolving Credit Agreement, Maturing April 2026 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 3,000,000,000.0 | ||||
Number of participating banks | bank | 23 | ||||
Amount by which credit facilty term length can be increased | 1 year | ||||
Credit agreement term | 5 years | ||||
Leverage ratio covenant | 60.00% | ||||
Five-year Revolving Credit Agreement, Maturing April 2026 | Letter of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 500,000,000 | ||||
Three-year Revolving Credit Agreement, Maturing April 2024 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,000,000,000.0 | ||||
Number of participating banks | bank | 23 | ||||
Amount by which credit facilty term length can be increased | 1 year | ||||
Credit agreement term | 3 years | ||||
Leverage ratio covenant | 60.00% | ||||
Three-year Revolving Credit Agreement, Maturing April 2024 | Letter of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 500,000,000 | ||||
364-day Revolving Credit Agreement, Maturing April 2022 | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,000,000,000.0 | ||||
Number of participating banks | bank | 23 | ||||
Credit agreement term | 364 days | ||||
Term of borrowing after exercising the "term out" option | 1 year | ||||
Leverage ratio covenant | 60.00% | ||||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 4,300,000,000 |
Debt - Summary of Debt Issuances (Details) - USD ($) |
Mar. 03, 2021 |
Mar. 31, 2021 |
---|---|---|
Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 4,300,000,000 | |
$500 million, 0.613% Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate | 0.613% | |
$500 million, 0.613% Notes due 2024 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 500,000,000 | |
Interest rate | 0.613% | |
Net proceeds | $ 499,000,000 | |
$800 million, 1.25% Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.25% | |
$800 million, 1.25% Notes due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 800,000,000 | |
Interest rate | 1.25% | |
Net proceeds | $ 797,000,000 | |
$1,500 million, 2.375% Notes due 2031 | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.375% | |
$1,500 million, 2.375% Notes due 2031 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 1,500,000,000 | |
Interest rate | 2.375% | |
Net proceeds | $ 1,492,000,000 | |
$1,500 million , 3.4% Notes due 2051 | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.40% | |
$1,500 million , 3.4% Notes due 2051 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | $ 1,500,000,000 | |
Interest rate | 3.40% | |
Net proceeds | $ 1,479,000,000 |
Insurance and Contractholder Liabilities - Summary of Insurance and Contractholder Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Current | ||||
Contractholder deposit funds | $ 355 | $ 350 | ||
Future policy benefits | 361 | 327 | ||
Unearned premiums | 561 | 485 | ||
Total insurance and contractholder liabilities | 5,743 | 5,308 | ||
Non-current | ||||
Contractholder deposit funds | 6,806 | 6,823 | ||
Future policy benefits | 8,945 | 9,317 | ||
Unearned premiums | 389 | 394 | ||
Total insurance and contractholder liabilities | 16,424 | 16,844 | ||
Total | ||||
Contractholder deposit funds | 7,161 | 7,173 | ||
Future policy benefits | 9,306 | 9,644 | ||
Unearned premiums | 950 | 879 | ||
Contractholder deposit funds | $ 7,699 | |||
Future policy benefits | 9,651 | |||
Unearned premiums | 840 | |||
Total | 27,309 | |||
Insurance and contractholder liabilities classified as held for sale | (6,441) | |||
Total insurance and contractholder liabilities | 22,167 | 22,152 | 20,868 | |
Unpaid claims classified as liabilities of business held for sale | 5,100 | |||
Contractholder deposit funds classified as liabilities of business held for sale | 726 | |||
Future policy benefits classified as liabilities of business held for sale | 640 | |||
Integrated Medical | ||||
Current | ||||
Unpaid claims and claim expenses | 3,528 | 3,166 | ||
Non-current | ||||
Unpaid claims and claim expenses | 21 | 18 | ||
Total | ||||
Unpaid claims and claim expenses | 3,549 | 3,184 | ||
Unpaid claims and claim expenses | 3,000 | $ 2,892 | ||
Other segments | ||||
Current | ||||
Unpaid claims and claim expenses | 938 | 980 | ||
Non-current | ||||
Unpaid claims and claim expenses | 263 | 292 | ||
Total | ||||
Unpaid claims and claim expenses | $ 1,201 | $ 1,272 | ||
Unpaid claims and claim expenses | $ 6,119 |
Insurance and Contractholder Liabilities - Narrative (Details) - USD ($) $ in Billions |
Mar. 31, 2021 |
Mar. 31, 2020 |
---|---|---|
Integrated Medical | ||
Insurance and Contractholder Liabilities [Line Items] | ||
Total of incurred but not reported liabilities plus expected claim development on reported claims, including reported claims in process | $ 3.3 | $ 2.7 |
Insurance and Contractholder Liabilities - U.S. Medical - Activity (Details) - Integrated Medical - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 3,184 | |
Beginning balance, including disposal groups | $ 2,892 | |
Less: Reinsurance and other amounts recoverable | 224 | |
Less: Reinsurance and other amounts recoverable, including disposal groups | 303 | |
Beginning balance, net | 2,960 | |
Beginning balance, net, including disposal groups | 2,589 | |
Incurred costs related to: | ||
Current year | 7,285 | 6,661 |
Prior years | (185) | (152) |
Total incurred | 7,100 | 6,509 |
Paid costs related to: | ||
Current year | 4,423 | 4,271 |
Prior years | 2,317 | 2,027 |
Total paid | 6,740 | 6,298 |
Ending balance, net | 3,320 | |
Ending balance, net, including disposal groups | 2,800 | |
Add: Reinsurance and other amounts recoverable | 229 | |
Add: Reinsurance and other amounts recoverable, including disposal groups | 200 | |
Ending balance | $ 3,549 | |
Ending balance, including disposal groups | $ 3,000 |
Insurance and Contractholder Liabilities - Variances in Incurred Costs Related to Prior Years' Unpaid Claims and Claims Expenses (Details) - Integrated Medical - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 185 | $ 152 |
Favorable (unfavorable) variance, percentage | 0.70% | 0.60% |
Actual completion factors | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 68 | $ 63 |
Favorable (unfavorable) variance, percentage | 0.20% | 0.30% |
Medical cost trend | ||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract] | ||
Favorable (unfavorable) variance, amount | $ 117 | $ 89 |
Favorable (unfavorable) variance, percentage | 0.50% | 0.30% |
Insurance and Contractholder Liabilities - Liability Details for Unpaid Claims and Claim Expenses (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
Mar. 31, 2020 |
---|---|---|---|
Group Disability And Other And International Markets [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unpaid claims and claim expenses | $ 1,201 | ||
Unpaid claims and claim expenses | $ 6,119 | ||
Total Other Operations | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unpaid claims and claim expenses | 281 | ||
Unpaid claims and claim expenses | 5,293 | ||
Group Disability and Life | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unpaid claims and claim expenses | 0 | ||
Unpaid claims and claim expenses | 5,084 | ||
Other Operations | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unpaid claims and claim expenses | 281 | ||
Unpaid claims and claim expenses | 209 | ||
International Markets [Member] | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unpaid claims and claim expenses | $ 920 | $ 963 | |
Unpaid claims and claim expenses | $ 826 |
Insurance and Contractholder Liabilities - Activity in Liabilities for Unpaid Claims and Claim Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Intenational Markets and Group Disability and Life | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Beginning balance, including disposal groups | $ 5,816 | |
Less: Reinsurance and other amounts recoverable, including disposal groups | 184 | |
Beginning balance, net, including disposal groups | 5,632 | |
Incurred claims related to: | ||
Current year | 1,473 | |
Prior years: | ||
Interest accretion | 42 | |
All other incurred | 46 | |
Total incurred | 1,561 | |
Paid costs related to: | ||
Current year | 490 | |
Prior years | 946 | |
Total paid | 1,436 | |
Foreign currency | (25) | |
Ending balance, net, including disposal groups | 5,732 | |
Add: Reinsurance and other amounts recoverable, including disposal groups | 178 | |
Ending balance, including disposal groups | 5,910 | |
International Markets [Member] | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Beginning balance | $ 963 | |
Less: Reinsurance and other amounts recoverable | 59 | |
Beginning balance, net | 904 | |
Incurred claims related to: | ||
Current year | 724 | |
Prior years: | ||
Interest accretion | 0 | |
All other incurred | (48) | |
Total incurred | 676 | |
Paid costs related to: | ||
Current year | 326 | |
Prior years | 372 | |
Total paid | 698 | |
Foreign currency | (20) | |
Ending balance, net | 862 | |
Add: Reinsurance and other amounts recoverable | 58 | |
Ending balance, including disposal groups | $ 826 | |
Ending balance | $ 920 |
Reinsurance - Narrative (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
reinsurer
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
reinsurer
|
|
GMIB | |||
Effects of Reinsurance [Line Items] | |||
Percent of future claim payments reinsured | 100.00% | 100.00% | |
Annuitization election period | 30 days | ||
GMIB liabilities | $ 595 | $ 729 | |
Number of external reinsurers | reinsurer | 3 | 3 | |
Amounts included in shareholders net income for GMIB assets | |||
Amounts included in shareholders net income for GMIB liabilities | |||
Variable Annuity | Berkshire | |||
Effects of Reinsurance [Line Items] | |||
Percent of future claim payments reinsured | 100.00% | ||
Remaining overall limit under reinsurance agreement | $ 3,200 | ||
Other Current Assets | |||
Effects of Reinsurance [Line Items] | |||
Reinsurance recoverables | $ 216 | $ 217 |
Reinsurance - Reinsurance Recoverables by Range of External Credit Rating and Collateral Level (Details) $ in Millions |
Mar. 31, 2021
USD ($)
|
---|---|
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | $ 5,422 |
Allowance for uncollectible reinsurance | (31) |
Total reinsurance recoverables | 5,391 |
Fair value of collateral contractually required to meet or exceed carrying value of recoverable | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 1,230 |
Collateral provisions exist that may mitigate risk of credit loss | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 3,900 |
No collateral | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 292 |
Ongoing Operations | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 362 |
Ongoing Operations | Upper-medium grade and higher | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 173 |
Ongoing Operations | Lower-medium grade | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 63 |
Ongoing Operations | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 126 |
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 92 |
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Upper-medium grade and higher | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Lower-medium grade | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 92 |
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | Upper-medium grade and higher | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | Lower-medium grade | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | Collateral provisions exist that may mitigate risk of credit loss | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Ongoing Operations | No collateral | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 270 |
Ongoing Operations | No collateral | Upper-medium grade and higher | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 173 |
Ongoing Operations | No collateral | Lower-medium grade | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 63 |
Ongoing Operations | No collateral | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 34 |
Acquisition, disposition or runoff activities | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 5,060 |
Acquisition, disposition or runoff activities | Upper-medium grade and higher | Lincoln National Life and Lincoln Life & Annuity of New York | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 3,022 |
Acquisition, disposition or runoff activities | Upper-medium grade and higher | Berkshire | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 700 |
Acquisition, disposition or runoff activities | Upper-medium grade and higher | Prudential Retirement Insurance and Annuity | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 607 |
Acquisition, disposition or runoff activities | Upper-medium grade and higher | Life Insurance Company of North America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 449 |
Acquisition, disposition or runoff activities | Upper-medium grade and higher | Other | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 265 |
Acquisition, disposition or runoff activities | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 17 |
Acquisition, disposition or runoff activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 1,138 |
Acquisition, disposition or runoff activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Upper-medium grade and higher | Lincoln National Life and Lincoln Life & Annuity of New York | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or runoff activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Upper-medium grade and higher | Berkshire | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 301 |
Acquisition, disposition or runoff activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Upper-medium grade and higher | Prudential Retirement Insurance and Annuity | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 607 |
Acquisition, disposition or runoff activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Upper-medium grade and higher | Life Insurance Company of North America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or runoff activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Upper-medium grade and higher | Other | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 230 |
Acquisition, disposition or runoff activities | Fair value of collateral contractually required to meet or exceed carrying value of recoverable | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or runoff activities | Collateral provisions exist that may mitigate risk of credit loss | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 3,900 |
Acquisition, disposition or runoff activities | Collateral provisions exist that may mitigate risk of credit loss | Upper-medium grade and higher | Lincoln National Life and Lincoln Life & Annuity of New York | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 3,022 |
Acquisition, disposition or runoff activities | Collateral provisions exist that may mitigate risk of credit loss | Upper-medium grade and higher | Berkshire | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 399 |
Acquisition, disposition or runoff activities | Collateral provisions exist that may mitigate risk of credit loss | Upper-medium grade and higher | Prudential Retirement Insurance and Annuity | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or runoff activities | Collateral provisions exist that may mitigate risk of credit loss | Upper-medium grade and higher | Life Insurance Company of North America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 449 |
Acquisition, disposition or runoff activities | Collateral provisions exist that may mitigate risk of credit loss | Upper-medium grade and higher | Other | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 17 |
Acquisition, disposition or runoff activities | Collateral provisions exist that may mitigate risk of credit loss | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 13 |
Acquisition, disposition or runoff activities | No collateral | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 22 |
Acquisition, disposition or runoff activities | No collateral | Upper-medium grade and higher | Lincoln National Life and Lincoln Life & Annuity of New York | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or runoff activities | No collateral | Upper-medium grade and higher | Berkshire | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or runoff activities | No collateral | Upper-medium grade and higher | Prudential Retirement Insurance and Annuity | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or runoff activities | No collateral | Upper-medium grade and higher | Life Insurance Company of North America | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 0 |
Acquisition, disposition or runoff activities | No collateral | Upper-medium grade and higher | Other | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | 18 |
Acquisition, disposition or runoff activities | No collateral | Not rated | |
Ceded Credit Risk [Line Items] | |
Reinsurance recoverables | $ 4 |
Reinsurance - Effects of Reinsurance 10-Q (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Reinsurance Disclosures [Abstract] | ||
Total ceded premiums | $ 149 | $ 128 |
Total reinsurance recoveries | $ 148 | $ 178 |
Reinsurance - Account Value, Net Amount at Risk and Contractholders for GMDB Business (Details) - Variable Annuity - GMDB contractholder in Thousands, $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2021
USD ($)
contractholder
|
Dec. 31, 2019
contractholder
|
Dec. 31, 2020
USD ($)
|
|
Net Amount at Risk by Product and Guarantee [Line Items] | |||
Account value | $ 9,518 | $ 9,523 | |
Net amount at risk | $ 1,518 | $ 1,570 | |
Number of contractholders (estimated) | contractholder | 180 | 185 |
Reinsurance - GMIB Reinsurers (Details) - GMIB - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Ceded Credit Risk [Line Items] | ||
GMIB recoverables | $ 616 | $ 758 |
Berkshire | ||
Ceded Credit Risk [Line Items] | ||
GMIB recoverables | $ 288 | 353 |
Berkshire | Secured | GMIB Assets | Collateralization risk | ||
Ceded Credit Risk [Line Items] | ||
Concentration percentage | 100.00% | |
Sun Life Assurance Company of Canada | ||
Ceded Credit Risk [Line Items] | ||
GMIB recoverables | $ 173 | 215 |
Liberty Re (Bermuda) Ltd. | ||
Ceded Credit Risk [Line Items] | ||
GMIB recoverables | $ 155 | $ 190 |
Liberty Re (Bermuda) Ltd. | Secured | GMIB Assets | Collateralization risk | ||
Ceded Credit Risk [Line Items] | ||
Concentration percentage | 100.00% |
Investments - Investments by Category (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Schedule of Investments [Line Items] | ||
Current | $ 1,477 | $ 1,331 |
Long-term | 22,821 | 23,262 |
Total | 24,298 | 24,593 |
Debt securities | ||
Schedule of Investments [Line Items] | ||
Current | 906 | 959 |
Long-term | 16,743 | 17,172 |
Total | 17,649 | 18,131 |
Equity securities | ||
Schedule of Investments [Line Items] | ||
Current | 0 | 0 |
Long-term | 550 | 501 |
Total | 550 | 501 |
Commercial mortgage loans | ||
Schedule of Investments [Line Items] | ||
Current | 60 | 13 |
Long-term | 1,287 | 1,406 |
Total | 1,347 | 1,419 |
Policy loans | ||
Schedule of Investments [Line Items] | ||
Current | 0 | 0 |
Long-term | 1,344 | 1,351 |
Total | 1,344 | 1,351 |
Other long-term investments | ||
Schedule of Investments [Line Items] | ||
Current | 0 | 0 |
Long-term | 2,897 | 2,832 |
Total | 2,897 | 2,832 |
Short-term investments | ||
Schedule of Investments [Line Items] | ||
Current | 511 | 359 |
Long-term | 0 | 0 |
Total | $ 511 | $ 359 |
Investments - Debt Securities by Contractual Maturity Periods (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Amortized Cost | ||
Due in one year or less | $ 930 | |
Due after one year through five years | 5,394 | |
Due after five years through ten years | 5,769 | |
Due after ten years | 3,869 | |
Mortgage and other asset-backed securities | 461 | |
Total | 16,423 | $ 16,220 |
Fair Value | ||
Due in one year or less | 938 | |
Due after one year through five years | 5,635 | |
Due after five years through ten years | 6,110 | |
Due after ten years | 4,507 | |
Mortgage and other asset-backed securities | 459 | |
Total | $ 17,649 | $ 18,131 |
Investments - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Schedule of Investments [Line Items] | ||||
Stockholders' equity | $ 48,155 | $ 45,086 | $ 50,328 | $ 45,344 |
Realized gains (losses) on investments still held at the reporting date | ||||
Fair value of collateral posted | ||||
Gain (loss) recognized in the income statement | ||||
Gain (loss) recognized in other comprehensive income | ||||
Gains (losses) reclassified from other comprehensive income into shareholders' net income | ||||
Amounts excluded from assessment of hedge effectiveness | ||||
Amount of impairments or value changes resulting from observable price changes on equity securities with no readily available fair value still held | ||||
Retained Earnings | ||||
Schedule of Investments [Line Items] | ||||
Stockholders' equity | 29,389 | $ 21,298 | 28,575 | 20,162 |
Adjustment upon Adoption | ||||
Schedule of Investments [Line Items] | ||||
Stockholders' equity | (30) | |||
Adjustment upon Adoption | Retained Earnings | ||||
Schedule of Investments [Line Items] | ||||
Stockholders' equity | $ (30) | |||
Commercial Portfolio Segment | Real Estate Loan | ||||
Schedule of Investments [Line Items] | ||||
Allowance for credit losses on financing receivables | $ 6 | $ 6 |
Investments - Gross Unrealized Appreciation (Depreciation) on Debt Securities (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | $ 16,423 | $ 16,220 | ||
Allowance for Credit Loss | (35) | (26) | $ (55) | $ 0 |
Unrealized Appreciation | 1,407 | 1,990 | ||
Unrealized Depreciation | (146) | (53) | ||
Fair Value | 17,649 | 18,131 | ||
Run-Off Settlement Annuity Business | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 2,355 | 2,282 | ||
Allowance for Credit Loss | (4) | (5) | ||
Unrealized Appreciation | 590 | 838 | ||
Unrealized Depreciation | (18) | (3) | ||
Fair Value | 2,923 | 3,112 | ||
Federal government and agency | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 298 | 334 | ||
Allowance for Credit Loss | 0 | 0 | ||
Unrealized Appreciation | 99 | 122 | ||
Unrealized Depreciation | (3) | 0 | ||
Fair Value | 394 | 456 | ||
State and local government | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 149 | 150 | ||
Allowance for Credit Loss | 0 | 0 | ||
Unrealized Appreciation | 14 | 17 | ||
Unrealized Depreciation | (1) | 0 | ||
Fair Value | 162 | 167 | ||
Foreign government | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 2,206 | 2,201 | ||
Allowance for Credit Loss | 0 | 0 | ||
Unrealized Appreciation | 237 | 318 | ||
Unrealized Depreciation | (23) | (8) | ||
Fair Value | 2,420 | 2,511 | ||
Corporate | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 13,309 | 13,108 | ||
Allowance for Credit Loss | (24) | (19) | ||
Unrealized Appreciation | 1,037 | 1,506 | ||
Unrealized Depreciation | (108) | (33) | ||
Fair Value | 14,214 | 14,562 | ||
Mortgage and other asset-backed | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Amortized Cost | 461 | 427 | ||
Allowance for Credit Loss | (11) | (7) | ||
Unrealized Appreciation | 20 | 27 | ||
Unrealized Depreciation | (11) | (12) | ||
Fair Value | $ 459 | $ 435 |
Investments - Summary of Debt Securities with a Decline in Fair Value (Details) $ in Millions |
Mar. 31, 2021
USD ($)
position
|
Dec. 31, 2020
USD ($)
position
|
---|---|---|
More than one year | ||
Fair Value | $ 2,933 | $ 1,515 |
Amortized Cost | 3,079 | 1,568 |
Unrealized Depreciation | $ (146) | $ (53) |
Number of Issues | position | 1,448 | 571 |
Investment grade | Debt securities | ||
One year or less | ||
Fair Value | $ 2,225 | $ 1,026 |
Amortized Cost | 2,333 | 1,045 |
Unrealized Depreciation | $ (108) | $ (19) |
Number of Issues | position | 815 | 300 |
More than one year | ||
Fair Value | $ 66 | $ 18 |
Amortized Cost | 70 | 18 |
Unrealized Depreciation | $ (4) | $ 0 |
Number of Issues | position | 15 | 6 |
Below investment grade | Debt securities | ||
One year or less | ||
Fair Value | $ 463 | $ 381 |
Amortized Cost | 485 | 405 |
Unrealized Depreciation | $ (22) | $ (24) |
Number of Issues | position | 567 | 232 |
More than one year | ||
Fair Value | $ 179 | $ 90 |
Amortized Cost | 191 | 100 |
Unrealized Depreciation | $ (12) | $ (10) |
Number of Issues | position | 51 | 33 |
Investments - Roll-Forward of the Allowance for Credit Losses on Debt Securities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Debt Securities, Available-for-sale, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 26 | $ 0 |
Additions for debt securities where no credit loss has previously been recognized | 11 | 55 |
Reductions for securities sold during the period | 0 | 0 |
Decrease for debt securities where credit losses have previously been recorded | (2) | 0 |
Ending Balance | $ 35 | $ 55 |
Investments - Equity Security Investments (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Cost | ||
Equity securities with readily determinable fair values | $ 192 | $ 180 |
Equity securities with no readily determinable fair value | 231 | 225 |
Hybrid equity securities | 58 | 58 |
Total | 481 | 463 |
Carrying Value | ||
Equity securities with readily determinable fair values | 211 | 202 |
Equity securities with no readily determinable fair value | 298 | 255 |
Hybrid equity securities | 41 | 44 |
Total | $ 550 | $ 501 |
Investments - Summary of the Credit Risk Profile of the Commercial Mortgage Loan Portfolio (Details) - Real Estate Loan - Commercial Portfolio Segment $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Schedule of Investments [Line Items] | ||
Allowance for credit losses | $ (6) | $ (6) |
Total | $ 1,347 | $ 1,419 |
Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 2.08 | 2.08 |
Average Loan-to-Value Ratio | 61.00% | 61.00% |
Below 60% | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 513 | $ 533 |
Below 60% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 2.25 | 2.28 |
60% to 79% | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 699 | $ 751 |
60% to 79% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 2.11 | 2.08 |
80% to 100% | ||
Schedule of Investments [Line Items] | ||
Carrying Value | $ 141 | $ 141 |
80% to 100% | Weighted Average | ||
Schedule of Investments [Line Items] | ||
Average Debt Service Coverage Ratio | 1.33 | 1.33 |
Investments - Carrying Values of Other Long-Term Investments (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Schedule of Investments [Line Items] | ||
Other long-term investments | $ 2,897 | $ 2,832 |
Real estate investments | ||
Schedule of Investments [Line Items] | ||
Other long-term investments | 999 | 951 |
Securities partnerships | ||
Schedule of Investments [Line Items] | ||
Other long-term investments | 1,712 | 1,683 |
Other | ||
Schedule of Investments [Line Items] | ||
Other long-term investments | $ 186 | $ 198 |
Investments - Short-Term Investments and Cash Equivalents (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Corporate securities | ||
Short Term Investments And Cash Equivalents [Line Items] | ||
Short-term investments and cash equivalents | $ 2,953 | $ 2,669 |
Federal government securities | ||
Short Term Investments And Cash Equivalents [Line Items] | ||
Short-term investments and cash equivalents | 113 | 158 |
Foreign government securities | ||
Short Term Investments And Cash Equivalents [Line Items] | ||
Short-term investments and cash equivalents | 42 | 90 |
Money market funds | ||
Short Term Investments And Cash Equivalents [Line Items] | ||
Short-term investments and cash equivalents | $ 960 | $ 5,134 |
Investments - Summary of Derivative Instruments Held (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Designated as Hedging Instrument | Fair Value Hedging | Foreign currency swap contracts | ||
Derivative [Line Items] | ||
Notional Value | $ 956 | $ 925 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency swap contracts | ||
Derivative [Line Items] | ||
Notional Value | 526 | 526 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional Value | 706 | 636 |
Not Designated as Hedging Instrument | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional Value | $ 630 | $ 538 |
Investments - Components of Net Investment Income (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Net Investment Income [Line Items] | ||
Net investment income | $ 391 | $ 353 |
Investments - Realized Gains and Losses on Investments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Investments [Abstract] | ||
Net realized investment gains (losses), excluding credit loss expense and asset write-downs | $ 10 | $ (24) |
Credit loss (expense) on invested assets | (9) | (55) |
Other investment asset write-downs | 0 | (9) |
Net realized investment gains (losses), before income taxes | $ 1 | $ (88) |
Investments - Sales Information for Available-for-Sale Debt Securities (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Statement of Financial Position [Abstract] | ||
Proceeds from sales | $ 377 | $ 743 |
Gross gains on sales | 9 | 39 |
Gross losses on sales | $ (3) | $ (7) |
Fair Value Measurements - Financial Assets and Financial Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Financial assets at fair value: | ||
Debt securities | $ 17,649 | $ 18,131 |
Equity securities | 211 | 202 |
Financial liabilities at fair value | ||
Unfunded commitments | 46 | |
Recurring | ||
Financial assets at fair value: | ||
Debt securities | 17,649 | 18,131 |
Equity securities | 252 | 246 |
Short-term investments | 505 | 325 |
Real estate funds priced at NAV as a practical expedient | 146 | 156 |
Recurring | Other Derivatives | ||
Financial assets at fair value: | ||
Derivative assets | 62 | 72 |
Financial liabilities at fair value | ||
Derivative liabilities | 74 | 108 |
Recurring | Other Derivatives | Short-term investments | ||
Financial assets at fair value: | ||
Derivative assets | 6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 164 | 207 |
Equity securities | 56 | 50 |
Short-term investments | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | Other Derivatives | ||
Financial assets at fair value: | ||
Derivative assets | 0 | 0 |
Financial liabilities at fair value | ||
Derivative liabilities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 16,613 | 17,101 |
Equity securities | 165 | 165 |
Short-term investments | 505 | 325 |
Significant Other Observable Inputs (Level 2) | Recurring | Other Derivatives | ||
Financial assets at fair value: | ||
Derivative assets | 62 | 72 |
Financial liabilities at fair value | ||
Derivative liabilities | 74 | 108 |
Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 872 | 823 |
Equity securities | 31 | 31 |
Short-term investments | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring | Other Derivatives | ||
Financial assets at fair value: | ||
Derivative assets | 0 | 0 |
Financial liabilities at fair value | ||
Derivative liabilities | 0 | 0 |
Federal government and agency | ||
Financial assets at fair value: | ||
Debt securities | 394 | 456 |
Federal government and agency | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 394 | 456 |
Federal government and agency | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 164 | 207 |
Federal government and agency | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 230 | 249 |
Federal government and agency | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 0 | 0 |
State and local government | ||
Financial assets at fair value: | ||
Debt securities | 162 | 167 |
State and local government | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 162 | 167 |
State and local government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 0 | 0 |
State and local government | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 162 | 167 |
State and local government | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 0 | 0 |
Foreign government | ||
Financial assets at fair value: | ||
Debt securities | 2,420 | 2,511 |
Foreign government | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 2,420 | 2,511 |
Foreign government | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 0 | 0 |
Foreign government | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 2,407 | 2,498 |
Foreign government | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 13 | 13 |
Corporate | ||
Financial assets at fair value: | ||
Debt securities | 14,214 | 14,562 |
Corporate | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 14,214 | 14,562 |
Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 0 | 0 |
Corporate | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 13,504 | 13,878 |
Corporate | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 710 | 684 |
Mortgage and other asset-backed | ||
Financial assets at fair value: | ||
Debt securities | 459 | 435 |
Mortgage and other asset-backed | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 459 | 435 |
Mortgage and other asset-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 0 | 0 |
Mortgage and other asset-backed | Significant Other Observable Inputs (Level 2) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | 310 | 309 |
Mortgage and other asset-backed | Significant Unobservable Inputs (Level 3) | Recurring | ||
Financial assets at fair value: | ||
Debt securities | $ 149 | $ 126 |
Fair Value Measurements - Narrative (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Percent of debt and equity securities classified in Level 2 | 94.00% | ||
Maximum percentage of investments classified in Level 2 representing foreign bonds priced using unadjusted broker quotes | 1.00% | ||
Percent of debt and equity securities classified in Level 3 | 5.00% | ||
Realized investment losses on assets measured at fair value under certain conditions, after-tax | $ 0 | $ 0 | |
Realized investment gains on equity securities with no readily determinable fair value | |||
Maximum | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Assets measured at fair value under certain conditions as a percent of total investments | 1.00% | 1.00% | |
Separate Account Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Separate accounts assets classified in Level 3, period increase (decrease), , including transfers in and out of Level 3 | |||
Separate accounts assets classified in Level 3, including disposal groups, period increase (decrease), including transfers in and out of Level 3 | |||
Separate Account Assets | Recurring | Securities partnerships | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Expected liquidation period after inception | 10 years | ||
Other Derivatives | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Adjustment for credit risk on derivatives assets | $ 0 | $ 0 | |
Adjustment for credit risk on derivatives liabilities | $ 0 | $ 0 |
Fair Value Measurements - Fair Value and Significant Unobservable Inputs Used in Pricing Debt Securities (Details) - Recurring - Significant Unobservable Inputs (Level 3) $ in Millions |
Mar. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
---|---|---|
Debt securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 872 | $ 823 |
Debt securities | Securities Not Priced by the Company | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | 1 | 1 |
Corporate and government debt securities | Securities Priced by the Company | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 722 | $ 696 |
Corporate and government debt securities | Securities Priced by the Company | Minimum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0060 | 0.0060 |
Corporate and government debt securities | Securities Priced by the Company | Maximum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.1560 | 0.1370 |
Corporate and government debt securities | Securities Priced by the Company | Weighted Average | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0480 | 0.0470 |
Mortgage and other asset-backed securities | Securities Priced by the Company | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 149 | $ 126 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Minimum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0060 | 0.0060 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Minimum | Weighting of credit spreads | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0250 | 0.0300 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Maximum | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0380 | 0.0380 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Maximum | Weighting of credit spreads | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0660 | 0.0670 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Weighted Average | Liquidity | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0090 | 0.0080 |
Mortgage and other asset-backed securities | Securities Priced by the Company | Weighted Average | Weighting of credit spreads | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable Adjustment | 0.0450 | 0.0480 |
Fair Value Measurements - Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Transfers into/(out of) Level 3 | ||
Change in unrealized gains or losses included in other comprehensive income for assets held at the end of the reporting period | $ (16) | $ (66) |
Debt and Equity Securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance | 854 | |
Balance | 555 | |
Total gains (losses) included in shareholders’ net income | (10) | (12) |
Gains (losses) included in other comprehensive income | (16) | (71) |
Gains (losses) required to adjust future policy benefits for settlement annuities | (8) | (10) |
Purchases, sales and settlements | ||
Purchases | 29 | 62 |
Sales | 0 | (12) |
Settlements | (16) | (2) |
Total purchases, sales and settlements | 13 | 48 |
Transfers into/(out of) Level 3 | ||
Transfers into Level 3 | 86 | 348 |
Transfers out of Level 3 | (16) | (92) |
Total transfers into/(out of) Level 3 | 70 | 256 |
Balance | 903 | |
Balance | 766 | |
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date | $ (11) | $ (18) |
Fair Value Measurements - Fair Values of Separate Account Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guaranteed separate accounts | $ 504 | $ 523 |
Non-guaranteed separate accounts | 7,866 | 7,880 |
Subtotal | 8,370 | 8,403 |
Non-guaranteed separate accounts priced at NAV as a practical expedient | 718 | 683 |
Separate account assets per Consolidated Balance Sheets | 9,088 | 9,086 |
Pension Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-guaranteed separate accounts | 4,200 | 4,200 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guaranteed separate accounts | 222 | 226 |
Non-guaranteed separate accounts | 2,071 | 1,925 |
Subtotal | 2,293 | 2,151 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guaranteed separate accounts | 282 | 297 |
Non-guaranteed separate accounts | 5,417 | 5,600 |
Subtotal | 5,699 | 5,897 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Guaranteed separate accounts | 0 | 0 |
Non-guaranteed separate accounts | 378 | 355 |
Subtotal | 378 | 355 |
Significant Unobservable Inputs (Level 3) | Pension Plan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-guaranteed separate accounts | $ 300 | $ 300 |
Fair Value Measurements - Additional Information on Separate Account Assets Priced at NAV (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 46 | |
Recurring | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 146 | $ 156 |
Separate Account Assets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 319 | |
Separate Account Assets | Recurring | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 718 | 683 |
Securities partnerships | Separate Account Assets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | 274 | |
Securities partnerships | Separate Account Assets | Recurring | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 463 | 463 |
Real estate funds | Separate Account Assets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 45 | |
Real estate funds | Separate Account Assets | Minimum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 30 days | |
Real estate funds | Separate Account Assets | Maximum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 90 days | |
Real estate funds | Separate Account Assets | Recurring | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 251 | 215 |
Hedge funds | Separate Account Assets | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Unfunded Commitments | $ 0 | |
Hedge funds | Separate Account Assets | Minimum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 30 days | |
Hedge funds | Separate Account Assets | Maximum | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 90 days | |
Hedge funds | Separate Account Assets | Recurring | NAV | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 4 | $ 5 |
Fair Value Measurements - Fair Value Disclosures for Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities, excluding finance leases | $ 35,649 | $ 37,676 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans | 1,373 | 1,456 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Commercial mortgage loans | 1,347 | 1,419 |
Long-term debt, including current maturities, excluding finance leases | $ 31,912 | $ 31,835 |
Variable Interest Entities (Details) - entity |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of VIEs |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | $ 50,328 | $ 45,344 |
Other comprehensive loss, net of tax | (374) | (590) |
Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests | (4) | (4) |
Shareholders other comprehensive income (loss), net of tax | (370) | (586) |
Balance | 48,155 | 45,086 |
Securities and Derivatives | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | 900 | 975 |
Other comprehensive income (loss) before reclassifications, before tax | (342) | (580) |
Other comprehensive income (loss) before reclassifications, tax | 65 | 127 |
Other comprehensive income (loss) before reclassifications, after-tax | (277) | (453) |
Reclassification adjustment, tax | (1) | (7) |
Net amounts reclassified from AOCI to net income | 4 | 25 |
Shareholders other comprehensive income (loss), net of tax | (273) | (428) |
Balance | 627 | 547 |
Reclassification adjustment for (gains) losses included in shareholders' net income (net realized investment (gains) losses) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, before tax | 5 | 32 |
Translation of foreign currencies | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other comprehensive income (loss) before reclassifications, before tax, including temporary equity | (114) | (160) |
Other comprehensive income (loss) before reclassifications, tax, including temporary equity | (5) | (15) |
Other comprehensive income (loss) before reclassifications, after-tax, including temporary equity | (119) | (175) |
Translation of foreign currencies attributable to noncontrolling interest | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Less: Net translation gain (loss) on foreign currencies attributable to noncontrolling interests | (4) | (4) |
Translation of foreign currencies attributable to parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (15) | (275) |
Shareholders other comprehensive income (loss), net of tax | (115) | (171) |
Balance | (130) | (446) |
Postretirement benefits liability | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance | (1,746) | (1,641) |
Reclassification adjustment, tax | (5) | (5) |
Net amounts reclassified from AOCI to net income | 18 | 13 |
Shareholders other comprehensive income (loss), net of tax | 18 | 13 |
Balance | (1,728) | (1,628) |
Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (interest expense and other) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, before tax | 20 | 18 |
Reclassification adjustment for settlement (interest expense and other) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Reclassification adjustment, before tax | $ 3 | $ 0 |
Leases - Operating and Finance Lease Right of Use ("ROU") Assets and Lease Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Operating leases: | ||
Operating lease ROU assets | $ 534 | $ 552 |
Accrued expenses and other liabilities | 152 | 152 |
Other non-current liabilities | 480 | 491 |
Total operating lease liabilities | 632 | 643 |
Finance leases: | ||
Property and equipment, gross | 103 | 98 |
Accumulated depreciation | (51) | (46) |
Property and equipment, net | 52 | 52 |
Short-term debt | 20 | 18 |
Long-term debt | 35 | 36 |
Total finance lease liabilities | $ 55 | $ 54 |
Balance sheet location of current operating lease liabilities | Accrued expenses and other liabilities | Accrued expenses and other liabilities |
Balance sheet location of non-current operating lease liabilities | Other non-current liabilities | Other non-current liabilities |
Balance sheet location of non-current finance lease assets | Property and equipment | Property and equipment |
Balance sheet location of current finance lease liabilities | Short-term debt | Short-term debt |
Balance sheet location of non-current finance lease liabilities | Long-term debt | Long-term debt |
Income Taxes - 10-Q Narrative (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Income Tax Disclosure [Abstract] | ||
Consolidated effective tax rate | 22.60% | 14.90% |
Contingencies and Other Matters (Details) |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
Apr. 19, 2016
claim
|
Sep. 30, 2020
USD ($)
|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2021
USD ($)
|
Apr. 30, 2020
USD ($)
|
Feb. 28, 2017
USD ($)
|
|
Guaranty Fund Assessments | ||||||
Commitments And Contingencies [Line Items] | ||||||
Provision for loss contingency | ||||||
Litigation Matters and Regulatory Matters | ||||||
Commitments And Contingencies [Line Items] | ||||||
Reserves for litigation matters, pre-tax | ||||||
CSR Litigation with the Federal Government | Pending Litigation | ||||||
Commitments And Contingencies [Line Items] | ||||||
Damages sought by the complaint | $ 315,000,000 | |||||
Express Scripts Litigation with Anthem | Pending Litigation | ||||||
Commitments And Contingencies [Line Items] | ||||||
Number of counts dismissed | claim | 2 | |||||
Number of counts | claim | 6 | |||||
Express Scripts Litigation with Anthem | Pending Litigation | Pricing Concessions Through Remaining Contract Term | ||||||
Commitments And Contingencies [Line Items] | ||||||
Damages sought by Anthem | $ 13,000,000,000 | |||||
Express Scripts Litigation with Anthem | Pending Litigation | Pricing Concessions After Remaining Term of Agreement | ||||||
Commitments And Contingencies [Line Items] | ||||||
Damages sought by Anthem | 1,800,000,000 | |||||
Express Scripts Litigation with Anthem | Pending Litigation | Damages for Service Issues | ||||||
Commitments And Contingencies [Line Items] | ||||||
Damages sought by Anthem | $ 150,000,000 | |||||
Collectibility of Risk Corridor Payments | CSR Litigation with the Federal Government | Pending Litigation | ||||||
Commitments And Contingencies [Line Items] | ||||||
Damages sought by the complaint | 120,000,000 | |||||
Proceeds related to legal claim | $ 120,000,000 | |||||
Collectibility of CSRs | CSR Litigation with the Federal Government | Pending Litigation | ||||||
Commitments And Contingencies [Line Items] | ||||||
Damages sought by the complaint | $ 195,000,000 | |||||
Positive Outcome of Litigation | Cigna Litigation with Anthem | Pending Litigation | ||||||
Commitments And Contingencies [Line Items] | ||||||
Reverse termination fee receivable | $ 1,850,000,000 | |||||
Certain other guarantees, indemnification obligations in connection with acquisition and disposition transactions | ||||||
Commitments And Contingencies [Line Items] | ||||||
Liability for guarantees | 0 | |||||
Retiree and Life Insurance Benefits | Financial Guarantees | ||||||
Commitments And Contingencies [Line Items] | ||||||
Maximum guarantee exposure | 445,000,000 | |||||
Assets maintained by employers (minimum) | 445,000,000 | |||||
Liability for guarantees | $ 0 |
Segment Information - Summary of Special Items (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
After-tax | ||
Debt extinguishment costs | $ 101 | $ 140 |
Integration and transaction-related costs (Selling, general and administrative expenses) | 22 | 74 |
Charges associated with litigation matters (Selling, general and administrative expenses) | (21) | 19 |
Charge for organizational efficiency plan (Selling, general and administrative expenses) | 0 | 24 |
Contractual adjustment for a former client (Pharmacy revenues) | 0 | (66) |
Total impact from special items | 102 | 191 |
Before-tax | ||
Debt extinguishment costs | 131 | 185 |
Integration and transaction-related costs (Selling, general and administrative expenses) | 29 | 97 |
Charges associated with litigation matters (Selling, general and administrative expenses) | (27) | 25 |
Charge for organizational efficiency plan (Selling, general and administrative expenses) | 0 | 31 |
Contractual adjustment for a former client (Pharmacy revenues) | 0 | (87) |
Total impact from special items | $ 133 | $ 251 |
Segment Information - Summarized Segment Financial Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Segment Reporting Information [Line Items] | ||
Revenues from customers | $ 40,580 | $ 38,116 |
Net investment income | 391 | 353 |
TOTAL REVENUES | 40,971 | 38,469 |
Net realized investment results from certain equity method investments | 14 | 10 |
Special item related to contractual adjustment for a former client | (87) | |
Adjusted revenues | 40,985 | 38,392 |
Depreciation and amortization | 715 | 693 |
Income before income taxes | 1,513 | 1,397 |
Pre-tax adjustments to reconcile to adjusted income from operations | ||
(Income) attributable to noncontrolling interests | (12) | (9) |
Net realized investment (gains) losses | 13 | 98 |
Amortization of acquired intangible assets | 495 | 498 |
Special items | ||
Debt extinguishment costs | 131 | 185 |
Integration and transaction-related costs | 29 | 97 |
Charges associated with litigation matters | (27) | 25 |
Charge for organizational efficiency plan | 0 | 31 |
Contractual adjustment for a former client | 0 | (87) |
Pre-tax adjusted income (loss) from operations | 2,142 | 2,235 |
Evernorth | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 29,419 | 26,256 |
Integrated Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 9,602 | 9,268 |
International Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 1,499 | 1,420 |
Other Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 60 | 1,172 |
Operating Segments | Evernorth | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 3 | 25 |
TOTAL REVENUES | 30,620 | 27,255 |
Net realized investment results from certain equity method investments | 0 | 0 |
Special item related to contractual adjustment for a former client | (87) | |
Adjusted revenues | 30,620 | 27,168 |
Income before income taxes | 749 | 694 |
Pre-tax adjustments to reconcile to adjusted income from operations | ||
(Income) attributable to noncontrolling interests | (5) | (4) |
Net realized investment (gains) losses | 2 | 0 |
Amortization of acquired intangible assets | 477 | 479 |
Special items | ||
Debt extinguishment costs | 0 | 0 |
Integration and transaction-related costs | 0 | 0 |
Charges associated with litigation matters | 0 | 0 |
Charge for organizational efficiency plan | 0 | |
Contractual adjustment for a former client | (87) | |
Pre-tax adjusted income (loss) from operations | 1,223 | 1,082 |
Operating Segments | Integrated Medical | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 250 | 126 |
TOTAL REVENUES | 10,362 | 9,860 |
Net realized investment results from certain equity method investments | 0 | 0 |
Special item related to contractual adjustment for a former client | 0 | |
Adjusted revenues | 10,362 | 9,860 |
Income before income taxes | 1,009 | 1,140 |
Pre-tax adjustments to reconcile to adjusted income from operations | ||
(Income) attributable to noncontrolling interests | 0 | 0 |
Net realized investment (gains) losses | (30) | 48 |
Amortization of acquired intangible assets | 8 | 11 |
Special items | ||
Debt extinguishment costs | 0 | 0 |
Integration and transaction-related costs | 0 | 0 |
Charges associated with litigation matters | 0 | 0 |
Charge for organizational efficiency plan | 0 | |
Contractual adjustment for a former client | 0 | |
Pre-tax adjusted income (loss) from operations | 987 | 1,199 |
Operating Segments | International Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 59 | 40 |
TOTAL REVENUES | 1,558 | 1,460 |
Net realized investment results from certain equity method investments | 14 | 10 |
Special item related to contractual adjustment for a former client | 0 | |
Adjusted revenues | 1,572 | 1,470 |
Income before income taxes | 226 | 234 |
Pre-tax adjustments to reconcile to adjusted income from operations | ||
(Income) attributable to noncontrolling interests | (7) | (5) |
Net realized investment (gains) losses | 33 | 46 |
Amortization of acquired intangible assets | 10 | 7 |
Special items | ||
Debt extinguishment costs | 0 | 0 |
Integration and transaction-related costs | 0 | 0 |
Charges associated with litigation matters | 0 | 0 |
Charge for organizational efficiency plan | 0 | |
Contractual adjustment for a former client | 0 | |
Pre-tax adjusted income (loss) from operations | 262 | 282 |
Operating Segments | Other Operations | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 79 | 162 |
TOTAL REVENUES | 139 | 1,339 |
Net realized investment results from certain equity method investments | 0 | 0 |
Special item related to contractual adjustment for a former client | 0 | |
Adjusted revenues | 139 | 1,339 |
Income before income taxes | 16 | 72 |
Pre-tax adjustments to reconcile to adjusted income from operations | ||
(Income) attributable to noncontrolling interests | 0 | 0 |
Net realized investment (gains) losses | 8 | 4 |
Amortization of acquired intangible assets | 0 | 1 |
Special items | ||
Debt extinguishment costs | 0 | 0 |
Integration and transaction-related costs | 0 | 0 |
Charges associated with litigation matters | 0 | 0 |
Charge for organizational efficiency plan | 0 | |
Contractual adjustment for a former client | 0 | |
Pre-tax adjusted income (loss) from operations | 24 | 77 |
Corporate and Eliminations | ||
Segment Reporting Information [Line Items] | ||
Net investment income | 0 | 0 |
TOTAL REVENUES | (1,708) | (1,445) |
Net realized investment results from certain equity method investments | 0 | 0 |
Special item related to contractual adjustment for a former client | 0 | |
Adjusted revenues | (1,708) | (1,445) |
Income before income taxes | (487) | (743) |
Special items | ||
Pre-tax adjusted income (loss) from operations | (354) | (405) |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 0 | 0 |
Pre-tax adjustments to reconcile to adjusted income from operations | ||
(Income) attributable to noncontrolling interests | 0 | 0 |
Net realized investment (gains) losses | 0 | 0 |
Amortization of acquired intangible assets | 0 | 0 |
Special items | ||
Debt extinguishment costs | 131 | 185 |
Integration and transaction-related costs | 29 | 97 |
Charges associated with litigation matters | (27) | 25 |
Charge for organizational efficiency plan | 31 | |
Contractual adjustment for a former client | 0 | |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | (1,708) | (1,445) |
Intersegment Eliminations | Evernorth | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | (1,198) | (974) |
Intersegment Eliminations | Integrated Medical | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | (510) | (466) |
Intersegment Eliminations | International Markets [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | 0 | 0 |
Intersegment Eliminations | Other Operations | ||
Segment Reporting Information [Line Items] | ||
Revenues from customers | $ 0 | $ (5) |
Segment Information - Revenue from External Customers (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Revenue from External Customer [Line Items] | ||
Premiums | $ 10,214 | $ 10,840 |
Total revenues from external customers | 40,580 | 38,116 |
Integrated Medical | ||
Revenue from External Customer [Line Items] | ||
Total revenues from external customers | 9,602 | 9,268 |
International Markets [Member] | ||
Revenue from External Customer [Line Items] | ||
Premiums | 1,450 | 1,375 |
Total revenues from external customers | 1,499 | 1,420 |
Pharmacy revenues | ||
Revenue from External Customer [Line Items] | ||
Revenues | 28,025 | 25,098 |
Network revenues | ||
Revenue from External Customer [Line Items] | ||
Revenues | 14,179 | 12,142 |
Home delivery and specialty revenues | ||
Revenue from External Customer [Line Items] | ||
Revenues | 12,458 | 11,714 |
Other | ||
Revenue from External Customer [Line Items] | ||
Revenues | 1,388 | 1,242 |
U.S. Medical premiums | Integrated Medical | ||
Revenue from External Customer [Line Items] | ||
Premiums | 8,707 | 8,320 |
Health Insurance | Integrated Medical | ||
Revenue from External Customer [Line Items] | ||
Premiums | 3,523 | 3,461 |
Stop loss | Integrated Medical | ||
Revenue from External Customer [Line Items] | ||
Premiums | 1,194 | 1,161 |
Other | Integrated Medical | ||
Revenue from External Customer [Line Items] | ||
Premiums | 310 | 289 |
Medicare Advantage | Integrated Medical | ||
Revenue from External Customer [Line Items] | ||
Premiums | 2,092 | 1,881 |
Medicare Part D | Integrated Medical | ||
Revenue from External Customer [Line Items] | ||
Premiums | 450 | 462 |
Other | Integrated Medical | ||
Revenue from External Customer [Line Items] | ||
Premiums | 1,138 | 1,066 |
Domestic disability, life and accident premiums | ||
Revenue from External Customer [Line Items] | ||
Premiums | 0 | 1,116 |
Other premiums | ||
Revenue from External Customer [Line Items] | ||
Premiums | 57 | 29 |
Total services | ||
Revenue from External Customer [Line Items] | ||
Revenues | 2,341 | 2,178 |
Fees | ||
Revenue from External Customer [Line Items] | ||
Revenues | 2,327 | 2,154 |
Other external revenues | ||
Revenue from External Customer [Line Items] | ||
Revenues | $ 14 | $ 24 |
Segment Information - 10-Q Narrative (Details) - USD ($) $ in Billions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Pharmacy Benefits Management Services | Performance Guarantee | ||
Loss Contingencies [Line Items] | ||
Performance guarantee liability | $ 1.3 | $ 1.1 |
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