Shareholders Equity and Dividend Restrictions

12 Months Ended

Dec. 31, 2017

Shareholders Equity And Dividend Restrictions [Abstract]

Stockholders' Equity And Dividend Restrictions

Note 19– Shareholders’ Equity and Dividend Restrictions

State insurance departments and foreign jurisdictions that regulate certain of the Company’s subsidiaries prescribe accounting practices (differing in some respects from GAAP) to determine statutory net income and surplus. The Company’s life, accident and health insurance and Health Maintenance Organization (“HMO”) subsidiaries are regulated by such statutory requirements. Due to regulatory changes in the jurisdiction of one of our foreign insurance affiliates, surplus increased significantly in 2017, primarily due to including deferred policy acquisition costs as an admitted asset. The statutory net income of the Company’s life, accident and health insurance and HMO subsidiaries for the years ended, and their statutory surplus as of December 31, were as follows:

(In billions)	2017		2016		2015
Net income	$	2.5	$	2.0	$	2.1
Surplus	$	10.4	$	8.5	$	8.0

The Company’s HMO and life, accident and health insurance subsidiaries are also subject to minimum statutory surplus requirements and may be required to maintain investments on deposit with state departments of insurance or other regulatory bodies. Additionally, these subsidiaries may be subject to regulatory restrictions on the amount of annual dividends or other distributions (such as loans or cash advances) that insurance companies may extend to the parent company without prior approval. As of December 31, 2017, these amounts, including restricted GAAP net assets of the Company’s subsidiaries, were as follows:

(In billions)	2017
Minimum statutory surplus required by regulators	$	3.2
Investments on deposit with regulatory bodies	$	0.6
Maximum dividend distributions permitted in 2018 without regulatory approval	$	1.6
Maximum loans to the parent company permitted without regulatory approval	$	1.3
Restricted GAAP net assets of Cigna Corporation's subsidiaries	$	12.0

There were no permitted practices for the Company’s insurance subsidiaries that significantly differed from prescribed regulatory accounting practices.