10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

R QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from            to           

Commission file number 1-08323

Cigna Corporation

(Exact name of registrant as specified in its charter)

Delaware	06-1059331
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
900 Cottage Grove Road Bloomfield, Connecticut	06002
(Address of principal executive offices)	(Zip Code)
(860) 226-6000
Registrant’s telephone number, including area code
(860) 226-6741
Registrant’s facsimile number, including area code
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark				YES	NO
·whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.				R	o
·whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).				R	o
·whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer R	Accelerated filer o	Non-accelerated filer o	Smaller Reporting Company o
·whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).				o	R

As of April 15, 2016,  256,513,083 shares of the issuer's common stock were outstanding.

Cigna Corporation

INDEX

PART I	FINANCIAL INFORMATION	Page
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Income	1
	Consolidated Statements of Comprehensive Income	2
	Consolidated Balance Sheets	3
	Consolidated Statements of Changes in Total Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to the Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	59
Item 4.	Controls and Procedures	60
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	61
Item 1.A.	Risk Factors	62
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 4.	Mine Safety Disclosures	63
Item 6.	Exhibits	64
SIGNATURE		65
INDEX TO EXHIBITS		E-1

As used herein, “Cigna” or the “Company” refers to one or more of Cigna Corporation and its consolidated subsidiaries.

Part I.   FINANCIAL INFORMATION

Item 1.   FINANCIAL STATEMENTS

Cigna Corporation

Consolidated Statements of Income

	Unaudited Three Months Ended March 31,
(In millions, except per share amounts)	2016		2015
Revenues
Premiums	$	7,746	$	7,402
Fees and other revenues	1,201		1,138
Net investment income	272		276
Mail order pharmacy revenues	697		578
Realized investment gains (losses):
Other than temporary impairments on debt securities	(27)		(5)
Other realized investment gains (losses), net	(5)		78
Net realized investment gains (losses)	(32)		73
Total revenues	9,884		9,467
Benefits and Expenses
Global Health Care medical costs	4,761		4,604
Other benefit expenses	1,368		1,269
Mail order pharmacy costs	574		492
Other operating expenses	2,321		2,204
Amortization of other acquired intangible assets, net	41		44
Total benefits and expenses	9,065		8,613
Income before Income Taxes	819		854
Income taxes:
Current	294		308
Deferred	11		15
Total income taxes	305		323
Net Income	514		531
Less: Net (Loss) Attributable to Noncontrolling Interests	(5)		(2)
Shareholders’ Net Income	$	519	$	533
Shareholders’ Net Income Per Share:
Basic	$	2.04	$	2.08
Diluted	$	2.00	$	2.04
Dividends Declared Per Share	$	0.04	$	0.04

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

1

Cigna Corporation

Consolidated Statements of Comprehensive Income

	Unaudited Three Months Ended March 31,
(In millions)	2016		2015
Shareholders’ net income	$	519	$	533
Shareholders’ other comprehensive income (loss):
Net unrealized appreciation, securities	173		88
Net unrealized appreciation (depreciation), derivatives	(3)		7
Net translation of foreign currencies	81		(104)
Postretirement benefits liability adjustment	11		11
Shareholders’ other comprehensive income	262		2
Shareholders’ comprehensive income	781		535
Comprehensive income (loss) attributable to noncontrolling interests:
Net (loss) attributable to redeemable noncontrolling interests	(1)		-
Net (loss) attributable to other noncontrolling interests	(4)		(2)
Other comprehensive income (loss) attributable to redeemable noncontrolling interests	3		(9)
Total comprehensive income	$	779	$	524

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

2

Cigna Corporation

Consolidated Balance Sheets

	Unaudited
	As of		As of
	March 31,		December 31,
(In millions, except per share amounts)	2016		2015
Assets
Investments:
Fixed maturities, at fair value (amortized cost, $18,684; $18,456)	$	20,087	$	19,455
Equity securities, at fair value (cost, $193; $190)	194		190
Commercial mortgage loans	1,848		1,864
Policy loans	1,419		1,419
Other long-term investments	1,434		1,404
Short-term investments	465		381
Total investments	25,447		24,713
Cash and cash equivalents	2,401		1,968
Premiums, accounts and notes receivable, net	3,956		3,694
Reinsurance recoverables	6,725		6,813
Deferred policy acquisition costs	1,743		1,659
Property and equipment	1,534		1,534
Deferred tax assets, net	276		379
Goodwill	6,029		6,019
Other assets, including other intangibles	2,788		2,476
Separate account assets	7,985		7,833
Total assets	$	58,884	$	57,088
Liabilities
Contractholder deposit funds	$	8,455	$	8,443
Future policy benefits	9,735		9,479
Unpaid claims and claim expenses	4,724		4,574
Global Health Care medical costs payable	2,646		2,355
Unearned premiums	646		629
Total insurance and contractholder liabilities	26,206		25,480
Accounts payable, accrued expenses and other liabilities	6,746		6,493
Short-term debt	399		149
Long-term debt	4,791		5,020
Separate account liabilities	7,985		7,833
Total liabilities	46,127		44,975
Contingencies — Note 16
Redeemable noncontrolling interests	73		69
Shareholders’ Equity
Common stock (par value per share, $0.25; shares issued, 296; authorized, 600)	74		74
Additional paid-in capital	2,874		2,859
Accumulated other comprehensive loss	(988)		(1,250)
Retained earnings	12,541		12,121
Less treasury stock, at cost	(1,826)		(1,769)
Total shareholders’ equity	12,675		12,035
Noncontrolling interests	9		9
Total equity	12,684		12,044
Total liabilities and equity	$	58,884	$	57,088
Shareholders’ Equity Per Share	$	49.41	$	46.91

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

3

Cigna Corporation

Consolidated Statements of Changes in Total Equity

					Accumulated												Redeemable
Unaudited			Additional		Other								Non-				Non-
For the three months ended March 31, 2016	Common		Paid-in		Comprehensive		Retained		Treasury		Shareholders’		controlling		Total		controlling
(In millions)	Stock		Capital		Loss		Earnings		Stock		Equity		Interests		Equity		Interests
Balance at January 1, 2016	$	74	$	2,859	$	(1,250)	$	12,121	$	(1,769)	$	12,035	$	9	$	12,044	$	69
Effect of issuing stock for employee benefit plans			21				(89)		53		(15)				(15)
Other comprehensive income					262						262				262		3
Net income (loss)							519				519		(4)		515		(1)
Common dividends declared (per share: $0.04)							(10)				(10)				(10)
Repurchase of common stock									(110)		(110)				(110)
Other transactions impacting noncontrolling interests			(6)								(6)		4		(2)		2
Balance at March 31, 2016	$	74	$	2,874	$	(988)	$	12,541	$	(1,826)	$	12,675	$	9	$	12,684	$	73

					Accumulated												Redeemable
			Additional		Other								Non-				Non-
For the three months ended March 31, 2015	Common		Paid-in		Comprehensive		Retained		Treasury		Shareholders’		controlling		Total		controlling
(In millions)	Stock		Capital		Loss		Earnings		Stock		Equity		Interests		Equity		Interests
Balance at January 1, 2015	$	74	$	2,769	$	(936)	$	10,289	$	(1,422)	$	10,774	$	15	$	10,789	$	90
Effect of issuing stock for employee benefit plans			55				(177)		184		62				62
Other comprehensive income (loss)					2						2				2		(9)
Net income (loss)							533				533		(2)		531
Common dividends declared (per share: $0.04)							(10)				(10)				(10)
Repurchase of common stock									(418)		(418)				(418)
Other transactions impacting noncontrolling interests			(1)								(1)		3		2		2
Balance at March 31, 2015	$	74	$	2,823	$	(934)	$	10,635	$	(1,656)	$	10,942	$	16	$	10,958	$	83

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

4

Cigna Corporation

Consolidated Statements of Cash Flows

	Unaudited
	Three Months Ended March 31,
(In millions)	2016		2015
Cash Flows from Operating Activities
Net income	$	514	$	531
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	158		151
Realized investment (gains) losses	32		(73)
Deferred income taxes	11		15
Net changes in assets and liabilities, net of non-operating effects:
Premiums, accounts and notes receivable	(237)		(549)
Reinsurance recoverables	24		(11)
Deferred policy acquisition costs	(62)		(76)
Other assets	(57)		(101)
Insurance liabilities	507		455
Accounts payable, accrued expenses and other liabilities	(263)		157
Current income taxes	262		221
Other, net (1)	5		17
Net cash provided by operating activities (1)	894		737
Cash Flows from Investing Activities
Proceeds from investments sold:
Fixed maturities and equity securities	361		393
Investment maturities and repayments:
Fixed maturities and equity securities	255		284
Commercial mortgage loans	18		166
Other sales, maturities and repayments (primarily short-term and other long-term investments)	102		488
Investments purchased or originated:
Fixed maturities and equity securities	(758)		(648)
Commercial mortgage loans	(1)		(90)
Other (primarily short-term and other long-term investments)	(198)		(420)
Property and equipment purchases	(112)		(115)
Acquisitions, net of cash acquired	-		(107)
Net cash used in investing activities	(333)		(49)
Cash Flows from Financing Activities
Deposits and interest credited to contractholder deposit funds	383		386
Withdrawals and benefit payments from contractholder deposit funds	(343)		(361)
Net change in short-term debt	(6)		(5)
Net proceeds on issuance of long-term debt	-		894
Repurchase of common stock	(139)		(413)
Issuance of common stock	10		99
Other, net (1)	(51)		(70)
Net cash provided by (used in) financing activities (1)	(146)		530
Effect of foreign currency rate changes on cash and cash equivalents	18		(18)
Net increase in cash and cash equivalents	433		1,200
Cash and cash equivalents, January 1,	1,968		1,420
Cash and cash equivalents, March 31,	$	2,401	$	2,620
Supplemental Disclosure of Cash Information:
Income taxes paid, net of refunds	$	37	$	49
Interest paid	$	69	$	69

(1) As required by the adoption of ASU 2016-09, the Company retrospectively reclassified $73 million of cash payments from operating to financing activities for the three months ended March 31, 2015.  These payments were related to employee tax obligations associated with stock compensation. The comparable amount reported in financing activities for the three months ended March 31, 2016 was $67 million.  See Note 2 for further discussion.

The accompanying Notes to the Consolidated Financial Statements (unaudited) are an integral part of these statements.

5

CIGNA CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1 — Basis of Presentation and Significant Events

Basis of Presentation

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 dedicated to a mission of helping individuals improve their health, well-being and sense of security.  To execute on our mission, Cigna’s strategy is to “Go Deep”, “Go Global” and “Go Individual” with a differentiated set of medical, dental, disability, life and accident insurance and related products and services offered by our insurance and other subsidiaries.  The majority of these products are offered through employers and other groups (e.g. 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 U.S. and selected international markets.  In addition to its ongoing operations described above, Cigna also has certain run-off operations.

The Consolidated Financial Statements include the accounts of Cigna Corporation and its 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 valuation, 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.  Certain reclassifications have been made to prior year amounts to conform to the current presentation.  See Note 2 for further discussion.

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 Company’s 2015 Form 10-K.  The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates.  This and certain other factors, including the seasonal nature of portions of the health care and related benefits business as well as competitive and other market conditions, call for caution in estimating full year results based on interim results of operations.

Note 2 — Recent Accounting Changes

The Company’s 2015 Form 10-K includes discussion of significant recent accounting changes that either have impacted or may impact our financial statements in the future.  The following issuances of, and changes in, accounting pronouncements that apply to the Company have occurred since the Company filed its 2015 Form 10-K.

Recently Adopted Accounting Guidance

Amendments to the Consolidation Analysis (Accounting Standards Update (“ASU”) 2015-02).  The Company adopted this new consolidation guidance effective January 1, 2016 with no material effect on its financial statements.  Among other provisions, the guidance defines limited partnerships as VIEs unless substantive kick-out rights or participating rights exist.  See Note 10 for additional disclosures about various real estate and security limited partnerships that are newly identified as variable interest entities for which the Company is not the primary beneficiary.

Improvements to Employee Share-Based Payment Accounting (ASU 2016-09).  In March 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance that changes the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled, requires cash flows related to the excess tax benefits to be classified as an operating activity in the statement of cash flows, permits repurchasing more of an employee’s shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee’s behalf for withheld shares are to be presented as a financing activity in the statement of cash flows, and provides an accounting policy election to account for forfeitures as they occur. In addition, the new guidance changes the calculation of common stock equivalents for earnings per share purposes.  The new standard is required to be adopted as of January 1, 2017.

6

As permitted, the Company elected to early adopt the new guidance effective January 1, 2016.  Adopting this new guidance resulted in $23 million of tax benefits recorded in net income in the first quarter of 2016 in Corporate that previously would have been reported in additional paid-in capital.  The change in the calculation of common stock equivalents added approximately one million weighted average shares for the diluted earnings per share calculations.  The Company applied these provisions prospectively.

The Company applied the provisions of the new guidance related to the presentation of employee taxes paid for withheld shares retrospectively that resulted in reclassifying $73 million of tax withholding from operating to financing activities in its Consolidated Statement of Cash Flows for the three months ended March 31, 2015.  For the three months ended March 31, 2016, the Company reflected $67 million of tax withholding in financing activities.  The ability under the new guidance to repurchase more employee shares for tax withholding purposes had no impact on the Company’s financial statements.  The Company elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period.

Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (ASU 2015-07).  This amendment removed the requirement to categorize all investments for which fair value is measured using the practical expedient of net asset value (“NAV”) per share within the fair value hierarchy.  The Company adopted this new guidance effective January 1, 2016.  Upon adoption, the Company began to separately disclose certain Separate Account investments and provided comparable prior period disclosure.  See Note 7 for this separate disclosure information.

Recently Issued Accounting Guidance Not Yet Adopted

Revenue from Contracts with Customers (ASU 2014-09).  During 2016, the Financial Accounting Standards Board (“FASB”) has issued two new ASUs further clarifying the broader revenue guidance: 1) “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (ASU 2016-08) that clarifies the definition of principals and agents and 2)  “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing” (ASU 2016-10) that clarifies guidance and adds examples to help companies properly identify performance obligations.  This ASU also illustrates when a license provides a customer with a right to use (point in time) versus a right to access (over time) benefit.

These clarifications, together with the broader revenue recognition guidance within ASU 2014-09, are required to be adopted beginning January 1, 2018.  The Company continues to monitor developing implementation guidance and evaluate these new requirements for its non-insurance customer contracts to determine its method and timing of implementation and any resulting estimated effects on its financial statements.

Note 3 — Mergers and Acquisitions

Proposed Merger

On July 23, 2015, the Company entered into a merger agreement with Anthem, Inc. (“Anthem”) and Anthem Merger Sub Corp. (“Merger Sub”), a direct wholly-owned subsidiary of Anthem.  The merger agreement provides (a) for the merger of the Company and Merger Sub, with the Company continuing as the surviving corporation and (b) if certain tax opinions are delivered, immediately following the completion of the initial merger, for the surviving corporation to be merged with and into Anthem, with Anthem continuing as the surviving corporation (collectively, the “merger”).  Subject to certain terms, conditions, and customary operating covenants, each share of Cigna common stock issued and outstanding immediately prior to the effective time of the merger will be converted into the right to receive (a) $103.40 in cash, without interest, and (b) 0.5152 of a share of Anthem common stock.  The closing price of Anthem common stock on May 5, 2016 was $137.07.

At special shareholders’ meetings held in December 2015, Cigna shareholders approved the merger and Anthem shareholders approved the issuance of shares of Anthem common stock in connection with the merger.  Completing the merger remains subject to certain customary conditions, including the receipt of certain necessary governmental and regulatory approvals and the absence of a legal restraint prohibiting the merger.  Completing the merger is not subject to a financing condition.

If the merger agreement is terminated under certain circumstances, Anthem will be required to pay Cigna a termination fee of $1.85 billion.  Anthem’s obligation to pay the termination fee arises if the merger agreement is terminated because:  (1) a governmental entity, such as the Department of Justice or a state Department of Insurance, has prevented the merger for regulatory reasons and that decision is final and non-appealable; or (2) the merger has not closed by January 31, 2017 (subject to extension to April 30, 2017 under certain circumstances) only because all necessary regulatory approvals have not been received.

7

The merger agreement contains customary covenants, including covenants that Cigna conduct its business in the ordinary course during the period between entering into the merger agreement and closing.  In addition, Cigna’s ability to take certain actions prior to closing without Anthem’s consent is subject to certain limitations.  These limitations relate to, among other matters, the payment of dividends, capital expenditures, the payment or retirement of indebtedness or the incurrence of new indebtedness, settlement of material claims or proceedings, mergers or acquisitions, and certain employment-related matters.

While the Company continues to work toward achieving regulatory approval as quickly as possible and to target a closing date in the second half of 2016, the closing will ultimately be subject to the approval and timing of the regulators. In light of the complexity of the regulatory process and the dynamic environment, it is possible that such approvals may not be obtained in 2016.

During the three months ended March 31, 2016, the Company incurred $40 million pre-tax ($36 million after-tax) in costs directly related to the proposed merger.  These costs primarily consisted of fees for legal, advisory and other professional services.

Note 4 — Earnings Per Share (“EPS”)

Basic and diluted earnings per share were computed as follows:

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended March 31,
2016
Shareholders’ net income	$	519			$	519
Shares:
Weighted average	254,822				254,822
Common stock equivalents			4,625		4,625
Total shares	254,822		4,625		259,447
EPS	$	2.04	$	(0.04)	$	2.00
2015
Shareholders’ net income	$	533			$	533
Shares:
Weighted average	256,707				256,707
Common stock equivalents			4,539		4,539
Total shares	256,707		4,539		261,246
EPS	$	2.08	$	(0.04)	$	2.04

The following outstanding employee stock options were not included in the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 because their effect was anti-dilutive.

	Three Months Ended
	March 31,
(In millions)	2016	2015
Anti-dilutive options	1.3	1.4

The Company held 39,638,264 shares of common stock in Treasury as of March 31, 2016, and 38,421,636 shares as of March 31, 2015.

8

Note 5 — Global Health Care Medical Costs Payable

Medical costs payable for the Global Health Care segment reflects estimates of the ultimate cost of claims that have been incurred but not yet reported, 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, as follows:

	March 31,		December 31,
(In millions)	2016		2015
Incurred but not yet reported	$	1,960	$	1,757
Reported claims in process	506		470
Physician incentives and other medical care expenses and services payable	180		128
Global Health Care medical costs payable	$	2,646	$	2,355

Activity in medical costs payable was as follows:

	For the period ended
	March 31,		December 31,
(In millions)	2016		2015
Balance at January 1,	$	2,355	$	2,180
Less:  Reinsurance and other amounts recoverable	243		252
Balance at January 1, net	2,112		1,928
Incurred costs related to:
Current year	4,825		18,564
Prior years	(64)		(210)
Total incurred	4,761		18,354
Paid costs related to:
Current year	2,985		16,588
Prior years	1,449		1,582
Total paid	4,434		18,170
Ending Balance, net	2,439		2,112
Add:  Reinsurance and other amounts recoverable	207		243
Ending Balance	$	2,646	$	2,355

Reinsurance and other amounts recoverable includes amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims for minimum premium products and certain administrative services only business where the right of offset does not exist.  See Note 6 for additional information on reinsurance.  For the three months ended March 31, 2016, actual experience differed from the Company’s key assumptions resulting in favorable incurred costs related to prior years’ medical costs payable of $64 million, or 0.3% of the current year incurred costs as reported for the year ended December 31, 2015.  Actual completion factors accounted for $51 million, or 0.3% of the favorability and actual medical cost trend resulted in $28 million, or 0.1%, offset by approximately $15 million, or 0.1%, related to increased medical costs in the Government segment because of additional provider risk sharing.

For the year ended December 31, 2015, actual experience differed from the Company’s key assumptions, resulting in favorable incurred costs related to prior years’ medical costs payable of $210 million, or 1.3% of the current year incurred costs as reported for the year ended December 31, 2014.  Actual completion factors accounted for $62 million, or 0.4% of favorability, while actual medical cost trend resulted in $115 million, or 0.7%.  The remaining $33 million, or 0.2%, was related to an increase in the 2014 reinsurance reimbursement rate from the Centers for Medicare and Medicaid Services (“CMS”) under The Patient Protection and Affordable Care Act (“Health Care Reform”).

9

The impact of prior year development on shareholders’ net income was $14 million for the three months ended March 31, 2016 compared with $25 million for the three months ended March 31, 2015.  The favorable effect of prior year development for both periods primarily reflects lower than expected utilization of medical services.  Incurred costs related to prior years in the table above do not directly correspond to an increase or decrease to shareholders’ net income.  The primary reason for the difference is that decreases to prior year incurred costs pertaining to the portion of the liability established for moderately adverse conditions are not considered as impacting shareholders’ net income if they are offset by increases in the current year provision for moderately adverse conditions.  The determination of liabilities for Global Health Care medical costs payable requires the Company to make critical accounting estimates.  See Note 2(N) to the Consolidated Financial Statements in the Company’s 2015 Form 10-K for further information about the assumptions and estimates used to establish this liability.

Note 6 — Reinsurance

The Company’s insurance subsidiaries enter into agreements with other insurance companies to assume and cede reinsurance.  Reinsurance is ceded primarily to limit losses from large exposures and to permit recovery of a portion of direct or assumed losses.  Reinsurance is also used in acquisition and disposition transactions when the underwriting company is not being acquired.  Reinsurance does not relieve the originating insurer of liability.  The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk.

Effective Exit of GMDB and GMIB Business

In 2013, the Company entered into an agreement with Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire”) to effectively exit the guaranteed minimum death benefit (“GMDB”) and guaranteed minimum income benefit (“GMIB”) businesses via a reinsurance transaction.  Berkshire reinsured 100% of the Company’s future claim payments in these businesses, net of other reinsurance arrangements existing at that time.  The Berkshire reinsurance agreement is subject to an overall limit with approximately $3.6 billion remaining.

Because this effective exit was accomplished via a reinsurance contract, the amounts related to the reinsured GMDB and GMIB contracts cannot be netted, so the gross assets and liabilities must continue to be measured and reported.  The following disclosures provide further context for the methods and assumptions used to determine GMDB assets and liabilities.

GMDB

The Company estimates this liability with an internal model based on the Company’s experience and future expectations over an extended period, consistent with the long-term nature of this product.  Because the product is premium deficient, the Company records increases to the reserve if it is inadequate based on the model.  As a result of the reinsurance transaction, reserve increases have a corresponding increase in the recorded reinsurance recoverable, provided the increased recoverable remains within the overall Berkshire limit (including the GMIB assets).

Activity in the future policy benefit reserve for the GMDB business was as follows:

	For the period ended
	March 31,		December 31,
(In millions)	2016		2015
Balance at January 1	$	1,252	$	1,270
Add: Unpaid claims	18		16
Less: Reinsurance and other amounts recoverable	1,164		1,186
Balance at January 1, net	106		100
Add: Incurred benefits	1		3
Less: Paid benefits	-		(3)
Ending balance, net	107		106
Less: Unpaid claims	22		18
Add: Reinsurance and other amounts recoverable	1,201		1,164
Ending balance	$	1,286	$	1,252

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Benefits paid and incurred are net of ceded amounts.  The ending net retained reserve is to cover ongoing administrative expenses, as well as the minor claims exposure retained by the Company.

The table below presents the account value, net amount at risk and number of underlying 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.  Unless the Berkshire limit is exceeded, the Company should be reimbursed in full for these payments.

(Dollars in millions, excludes impact of reinsurance ceded)	March 31, 2016		December 31, 2015
Account value	$	10,977	$	11,355
Net amount at risk	$	2,854	$	2,870
Number of contractholders	318,000		324,000

Effects of Reinsurance

In the Company’s Consolidated Statements of Income, premiums were reported net of amounts ceded to reinsurers and Global Health Care medical costs and other benefit expenses were reported net of reinsurance recoveries in the following amounts:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Ceded premiums
Individual life insurance and annuity business sold	$	41	$	41
Other	95		89
Total	$	136	$	130
Reinsurance recoveries
Individual life insurance and annuity business sold	$	68	$	86
Other	96		73
Total	$	164	$	159

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Reinsurance Recoverables

Components of the Company’s reinsurance recoverables are presented below:

(In millions)

Line of Business	Reinsurer(s)	March 31, 2016		December 31, 2015		Collateral and Other Terms at March 31, 2016
GMDB	Berkshire	$	1,156	$	1,123	100% secured by assets in a trust.
	Other	45		41		100% secured by assets in a trust or letter of credit.
Individual Life and Annuity (sold in 1998)	Lincoln National Life and Lincoln Life & Annuity of New York	3,659		3,705		Both companies’ ratings are sufficient to avoid triggering a contractual obligation to fully secure the outstanding balance.
Retirement Benefits Business (sold in 2004)	Prudential Retirement Insurance and Annuity	976		995		100% secured by assets in a trust.
Supplemental Benefits Business (2012 acquisition)	Great American Life	312		315		100% secured by assets in a trust.
Global Health Care, Global Supplemental Benefits, Group Disability and Life	Various	497		553		Recoverables from approximately 80 reinsurers, including the U.S. Government, used in the ordinary course of business.  Excluding the recoverable from the U.S. Government of approximately $100 million, current balances range from less than $1 million up to $90 million, with 18% secured by assets in trusts or letters of credit.
Other run-off reinsurance	Various	80		81		100% of this balance is secured by assets in trusts.
Total reinsurance recoverables		$	6,725	$	6,813

Over 90% of the Company’s reinsurance recoverables were from companies that were rated A or higher by Standard & Poor’s at March 31, 2016.  The Company reviews its reinsurance arrangements and establishes reserves against the recoverables if recovery is not considered probable.  As of March 31, 2016, the Company’s recoverables were net of a reserve of approximately $3 million.  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.

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Note 7 — Fair Value Measurements

The Company carries certain financial instruments at fair value in the financial statements including fixed maturities, equity securities, short-term investments and derivatives.  Other financial instruments are measured at fair value under certain conditions, such as when impaired.

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 may 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, as well as designating 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.  Annually, we conduct an on-site visit of the most significant pricing service to review their processes, methodologies and controls.  This on-site review includes a walk-through of inputs of a sample of securities held across various asset types to validate the documented pricing process.

Financial Assets and Financial Liabilities Carried at Fair Value

The following tables provide information as of March 31, 2016 and December 31, 2015 about the Company’s financial assets and liabilities carried at fair value.  Separate account assets that are also recorded at fair value on the Company’s Consolidated Balance Sheets are reported separately under the heading “Separate account assets” as gains and losses related to these assets generally accrue directly to policyholders.

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	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions)	(Level 1)		(Level 2)		(Level 3)		Total
March 31, 2016
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	183	$	569	$	-	$	752
State and local government	-		1,603		-		1,603
Foreign government	-		2,068		4		2,072
Corporate	-		14,661		406		15,067
Mortgage-backed	-		40		1		41
Other asset-backed	-		243		309		552
Total fixed maturities (1)	183		19,184		720		20,087
Equity securities	33		89		72		194
Subtotal	216		19,273		792		20,281
Short-term investments	-		465		-		465
GMIB assets (2)	-		-		957		957
Other derivative assets (3)	-		11		-		11
Total financial assets at fair value, excluding separate accounts	$	216	$	19,749	$	1,749	$	21,714
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	941	$	941
Other derivative liabilities	-		1		-		1
Total financial liabilities at fair value	$	-	$	1	$	941	$	942
December 31, 2015
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	251	$	528	$	-	$	779
State and local government	-		1,641		-		1,641
Foreign government	-		2,010		4		2,014
Corporate	-		14,122		326		14,448
Mortgage-backed	-		48		1		49
Other asset-backed	-		198		326		524
Total fixed maturities (1)	251		18,547		657		19,455
Equity securities	32		89		69		190
Subtotal	283		18,636		726		19,645
Short-term investments	-		381		-		381
GMIB assets (2)	-		-		907		907
Other derivative assets (3)	-		16		-		16
Total financial assets at fair value, excluding separate accounts	$	283	$	19,033	$	1,633	$	20,949
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	885	$	885
Total financial liabilities at fair value	$	-	$	-	$	885	$	885

(1)	Fixed maturities included $622 million as of March 31, 2016 and $483 million as of December 31, 2015 of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $42 million as of March 31, 2016 and $30 million as of December 31, 2015 of appreciation for securities classified in Level 3. See Note 8 for additional information.
(2)	The GMIB assets represent retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts.
(3)	Other derivative assets included $10 million as of March 31, 2016 and $15 million as of December 31, 2015 of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million as of March 31, 2016 and December 31, 2015 of interest rate swaps qualifying as fair value hedges. See Note 9 for additional information.

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.

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Assets in Level 1 include actively-traded U.S. government bonds and exchange-listed equity securities.  Given the narrow definition of Level 1 and the Company’s investment asset strategy to maximize investment returns, a relatively small portion of the Company’s investment assets are classified in this category.

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.

Fixed maturities and equity securities.  Approximately 95% of the Company’s investments in fixed maturities and equity securities are classified in Level 2 including most public and private corporate debt and equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks.  Because many fixed maturities do not trade daily, third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics.  When recent trades are not available, pricing models are used to determine these prices.  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 which approximates cost.  On a regular basis, the Company compares market prices for these securities to recorded amounts 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.

Other derivatives classified in Level 2 represent over-the-counter instruments such as interest rate and foreign currency 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 adjustment for credit risk was required as of March 31, 2016 or December 31, 2015.  Level 2 also includes exchange-traded interest rate swap contracts.  Credit risk related to the clearinghouse counterparty and the Company is considered minimal when estimating the fair values of these derivatives because of upfront margin deposits and daily settlement requirements.  The nature and use of these other derivatives 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, as well as assets and liabilities relating to GMIB, in Level 3.  Approximately 4% of fixed maturities and equity securities are priced using significant unobservable inputs and classified in this category.

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Fair values of other asset and mortgage-backed securities, corporate and government fixed maturities 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.  For other asset and mortgage-backed securities, inputs and assumptions for pricing may also include collateral attributes and prepayment speeds.  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 tables summarize the fair value and significant unobservable inputs used in pricing the following securities that were developed directly by the Company as of March 31, 2016 and December 31, 2015.  The range and weighted average basis point amounts (“bps”)  for fixed maturity spreads (adjustment to discount rates) and price-to-earnings multiples for equity investments reflect the Company’s best estimates of the unobservable adjustments a market participant would make to calculate these fair values.

Other asset and mortgage-backed securities.  The significant unobservable inputs used to value the following other asset and mortgage-backed securities are liquidity and weighting of credit spreads.  When there is limited trading activity for the security, an adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure.  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.  The resulting wide range of unobservable adjustments in the table below is due to the varying liquidity and quality of the underlying collateral, ranging from high credit quality to below investment grade.

Corporate and government fixed maturities.  The significant unobservable input used to value the following corporate and government fixed maturities is an adjustment for liquidity.  When there is limited trading activity for the security, an adjustment is needed to reflect current market conditions and issuer circumstances.

Equity securities.  The significant unobservable input used to value the following equity securities is a multiple of earnings before interest, taxes, depreciation and amortization (“EBITDA”).  These securities are comprised of private equity investments with limited trading activity and therefore a ratio of EBITDA is used to estimate value based on company circumstances and relative risk characteristics.

(Fair value in millions)	Fair Value		Unobservable Input	Unobservable Adjustment Range (Weighted Average)
As of March 31, 2016
Fixed maturities:
Other asset and mortgage-backed securities	$	310	Liquidity	60 - 450 (190) bps
			Weighting of credit spreads	180 - 680 (230) bps
Corporate and government fixed maturities		360	Liquidity	70 - 1,150 (360) bps
Total fixed maturities		670
Equity securities		72	Price-to-earnings multiples	4.2 - 11.6 (8.2)
Subtotal		742
Securities not priced by the Company(1)		50
Total Level 3 securities	$	792
As of December 31, 2015
Fixed maturities:
Other asset and mortgage-backed securities	$	327	Liquidity	60 - 440 (200) bps
			Weighting of credit spreads	170 - 630 (220) bps
Corporate and government fixed maturities		285	Liquidity	70 - 930 (280) bps
Total fixed maturities		612
Equity securities		69	Price-to-earnings multiples	4.2 - 11.6 (8.3)
Subtotal		681
Securities not priced by the Company(1)		45
Total Level 3 securities	$	726

(1) The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.

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Significant increases in fixed maturity spreads would result in a lower fair value measurement while decreases in these inputs would result in a higher fair value measurement.  Significant decreases in equity price-to-earnings multiples would result in a lower fair value measurement while increases in these inputs would result in a higher fair value measurement.  Generally, the unobservable inputs are not interrelated and a change in the assumption used for one unobservable input is not accompanied by a change in the other unobservable input.

GMIB contracts.  As discussed in Note 6, the Company effectively exited the GMIB business in 2013.  Although these GMIB assets and liabilities must continue to be reported as derivatives at fair value, the only assumption that is expected to impact future shareholders’ net income is the risk of non-performance.  This assumption reflects a market participant’s view of (a) the risk of a subsidiary of the Company not fulfilling its GMIB obligations (GMIB liabilities) and (b) the credit risk that the reinsurers do not pay their obligations (GMIB assets).  As of March 31, 2016, there were three reinsurers for GMIB, with collateral securing 68% of the balance.

The Company reports GMIB liabilities and assets as derivatives at fair value because the cash flows of these liabilities and assets are affected by equity markets and interest rates, but are without significant life insurance risk and are settled in lump sum payments.  Under the terms of these written and purchased contracts, the Company periodically receives and pays fees based on either contractholders’ account values or deposits increased at a contractual rate.  The Company will also pay and receive cash depending on account values and interest rates when contractholders elect to begin to receive minimum income payments.  The Company estimates the fair value of the assets and liabilities for GMIB contracts by calculating the results for many scenarios run through a model utilizing various assumptions that include non-performance risk, among other things.

The non-performance risk adjustment is incorporated by adding an additional spread to the discount rate in the calculation of both (a) the GMIB liabilities to reflect a market participant’s view of the risk of a subsidiary of the Company not fulfilling its GMIB obligations, and (b) the GMIB assets to reflect a market participant’s view of the credit risk of the reinsurers, after considering collateral.

Other assumptions that affect GMIB assets and liabilities include capital market assumptions (including market returns, interest rates and market volatilities of the underlying equity and bond mutual fund investments) and future annuitant behavior (including mortality, lapse and annuity election rates).  As certain assumptions used to estimate fair values for these contracts are largely unobservable (primarily related to future annuitant behavior), the Company classifies GMIB assets and liabilities in Level 3.

The Company regularly evaluates each of the assumptions used in establishing these assets and liabilities.  Significant decreases in assumed lapse rates or spreads used to calculate non-performance risk, or increases in assumed annuity election rates, would result in higher fair value measurements.  A change in one of these assumptions is not necessarily accompanied by a change in another assumption.

GMIB liabilities are reported in the Company’s Consolidated Balance Sheets in accounts payable, accrued expenses and other liabilities.  GMIB assets associated with these contracts represent net receivables in connection with reinsurance that the Company has purchased from three external reinsurers and are reported in the Company’s Consolidated Balance Sheets in other assets, including other intangibles.

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, 2016 and 2015.  Separate account asset changes are reported separately under the heading “Separate account assets” as the changes in fair values of these assets accrue directly to the policyholders.  Gains and losses reported in these tables may include net changes in fair value that are attributable to both observable and unobservable inputs.

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	Changes in Level 3 financial assets and financial liabilities
For the Three Months Ended March 31, 2016(In millions)	Fixed Maturities & Equity Securities		GMIB Assets			GMIB Liabilities		GMIB Net
Balance at January 1, 2016	$	726	$	907		$	(885)	$	22
Gains (losses) included in shareholders’ net income:
GMIB fair value gain/(loss)	-		61			(61)		-
Other	(25)		(1)			(5)		(6)
Total gains (losses) included in shareholders’ net income	(25)		60			(66)		(6)
Gains included in other comprehensive income	-		-			-		-
Gains required to adjust future policy benefits for settlement annuities (1)	11		-			-		-
Purchases, sales and settlements:
Purchases	24		-			-		-
Sales	-		-			-		-
Settlements	(11)		(10		)	10		-
Total purchases, sales and settlements	13		(10		)	10		-
Transfers into/(out of) Level 3:
Transfers into Level 3	128		-			-		-
Transfers out of Level 3	(61)		-			-		-
Total transfers into/(out of) Level 3	67		-			-		-
Balance at March 31, 2016	$	792	$	957		$	(941)	$	16
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date	$	(25)	$	60		$	(66)	$	(6)

	Changes in Level 3 financial assets and financial liabilities
For the Three Months Ended March 31, 2015 (In millions)	Fixed Maturities & Equity Securities			GMIB Assets			GMIB Liabilities		GMIB Net
Balance at January 1, 2015	$	857		$	953		$	(929)	$	24
Gains (losses) included in shareholders’ net income:
GMIB fair value gain/(loss)	-			27			(27)		-
Other	13			(1)			(1)		(2		)
Total gains (losses) included in shareholders’ net income	13			26			(28)		(2		)
Gains included in other comprehensive income	2			-			-		-
Gains required to adjust future policy benefits for settlement annuities (1)	6			-			-		-
Purchases, sales and settlements:
Purchases	11			-			-		-
Sales	(18		)	-			-		-
Settlements	(3		)	(9		)	9		-
Total purchases, sales and settlements	(10		)	(9		)	9		-
Transfers into/(out of) Level 3:
Transfers into Level 3	1			-			-		-
Transfers out of Level 3	(51		)	-			-		-
Total transfers into/(out of) Level 3	(50		)	-			-		-
Balance at March 31, 2015	$	818		$	970		$	(948)	$	22
Total gains (losses) included in shareholders’ net income attributable to instruments held at the reporting date	$	-		$	26		$	(28)	$	(2)

(1)  Amounts do not accrue to shareholders.

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As noted in the tables above, total gains and losses included in shareholders’ net income are reflected in the following captions in the Consolidated Statements of Income:

· Realized investment gains (losses) and net investment income for amounts related to fixed maturities and equity securities and realized investment gains (losses) for the impact of changes in non-performance risk related to GMIB assets and liabilities, similar to hedge ineffectiveness; and

· Other operating expenses for amounts related to GMIB assets and liabilities (GMIB fair value gain/loss), except for the impact of changes in non-performance risk.

In the tables above, gains and losses included in other comprehensive income are reflected in net unrealized appreciation (depreciation) on securities in the Consolidated Statements of Comprehensive Income.

Reclassifications impacting Level 3 financial instruments are reported as transfers into or out of the Level 3 category as of the beginning of the quarter in which the transfer occurs.  Therefore gains and losses in income only reflect activity for the period the instrument was classified in Level 3.

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.  For the three months ended March 31, 2016, transfers between Level 2 and Level 3 primarily reflect changes in liquidity and credit risk estimates for certain private placement issuers in the metals, mining and energy sectors.  For the three months ended March 31, 2015, transfers out of Level 3 primarily reflect a change in the significance of the unobservable inputs related to liquidity and credit estimates used to value several private corporate bonds.

Separate account assets

Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are excluded from the Company’s revenues and expenses.  Beginning in 2016, investments that are measured using the practical expedient of net asset value are excluded from the fair value hierarchy.  Prior periods have been reclassified to conform to the current presentation.  As of March 31, 2016 and December 31, 2015, separate account assets were as follows:

March 31, 2016 (In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Guaranteed separate accounts (See Note 16)	$	231	$	273	$	-	$	504
Non-guaranteed separate accounts (1)	1,372		4,862		317		6,551
Subtotal	$	1,603	$	5,135	$	317	7,055
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)							930
Total separate account assets							$	7,985
December 31, 2015
Guaranteed separate accounts (See Note 16)	$	235	$	274	$	-	$	509
Non-guaranteed separate accounts (1)	1,401		4,698		297		6,396
Subtotal	$	1,636	$	4,972	$	297	6,905
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)							928
Total separate account assets							$	7,833

(1)  Non-guaranteed separate accounts as of March 31, 2016 and December 31, 2015 included $3.6 billion in assets supporting the Company’s pension plans, with $0.3 billion classified in Level 3 and $0.9 billion priced at NAV, as a practical expedient.

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Separate account assets in 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 and separate accounts priced using the daily net asset value that is the exit price.

Separate account assets classified in Level 3 include certain newly issued, privately-placed, complex, or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans that are valued according to the methodologies discussed below.  The following tables summarize the changes in separate account assets reported in Level 3 for the three months ended March 31, 2016 and 2015.

	Three Months Ended
	March 31,
(In millions)	2016		2015
Balance, beginning of period	$	297	$	255
Policyholder gains (losses)	(1)		1
Purchases, sales and settlements:
Purchases	4		10
Sales	(1)		-
Settlements	(2)		(3)
Total purchases, sales and settlements	1		7
Transfers into/(out of) Level 3:
Transfers into Level 3	23		-
Transfers out of Level 3	(3)		(4)
Total transfers into/(out of) Level 3	20		(4)
Balance, end of period	$	317	$	259

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.  The table below provides additional information on these investments.

	Fair Value as of				Unfunded		Redemption Frequency	Redemption Notice
(In millions)	March 31, 2016		December 31, 2015		Commitments		(if currently eligible)*	Period*
Security Partnerships	$	432	$	406	$	274	Not applicable	Not applicable
Real Estate Funds	266		261		-		Quarterly	45-90 days
Hedge Funds	232		261		-		Up to Annually, varying by fund	30-90 days
Total	$	930	$	928	$	274

* The attributes noted are effective as of March 31, 2016 and December 31, 2015.

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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 investments in real estate entities and commercial mortgage loans when they become impaired.  There were no impaired real estate entities or commercial mortgage loans written down to fair value for the three months ended March 31, 2016.  Impaired real estate entities and commercial mortgage loans, classified as Level 3 and representing less than 1% of total investments, were written down to their fair values, resulting in realized investment losses of $4 million, after tax for the three months ended March 31, 2015.

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, 2016 and December 31, 2015.  Financial instruments that are carried in the Company’s Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table.

	Classification in	March 31, 2016				December 31, 2015
(In millions)	the Fair Value Hierarchy	Fair Value		Carrying Value		Fair Value		Carrying Value
Commercial mortgage loans	Level 3	$	1,903	$	1,848	$	1,911	$	1,864
Contractholder deposit funds, excluding universal life products	Level 3	$	1,195	$	1,187	$	1,151	$	1,148
Long-term debt, including current maturities, excluding capital leases	Level 2	$	5,573	$	5,040	$	5,515	$	5,020

The fair values for all financial instruments presented in the table above have been estimated using market information when available.  The following valuation methodologies and inputs are used by the Company to determine fair value.

Commercial mortgage loans.  The Company estimates the fair value of commercial mortgage loans generally by discounting the contractual cash flows at estimated market interest rates that reflect the Company’s assessment of the credit quality of the loans.  Market interest rates are derived by calculating the appropriate spread over comparable U.S. Treasury rates, based on the property type, quality rating and average life of the loan.  The quality ratings reflect the relative risk of the loan, considering debt service coverage, the loan-to-value ratio and other factors.  Fair values of impaired mortgage loans are based on the estimated fair value of the underlying collateral generally determined using an internal discounted cash flow model.  The fair value measurements were classified in Level 3 because the cash flow models incorporate significant unobservable inputs.

Contractholder deposit funds, excluding universal life products. Generally, these funds do not have stated maturities.  Approximately 65% of these balances can be withdrawn by the customer at any time without prior notice or penalty.  The fair value for these contracts is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value.  Most of the remaining contractholder deposit funds are reinsured by the buyers of the individual life and annuity and retirement benefits businesses.  The fair value for these contracts is determined using the fair value of these buyers’ assets supporting these reinsured contracts.  The Company had reinsurance recoverables equal to the carrying value of these reinsured contracts.  These instruments were classified in Level 3 because certain inputs are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.

Long-term debt, including current maturities, excluding capital leases.  The fair value of long-term debt is based on quoted market prices for recent trades.  When quoted market prices are not available, fair value is estimated using a discounted cash flow analysis and the Company’s estimated current borrowing rate for debt of similar terms and remaining maturities.  These measurements were classified in Level 2 because the fair values are based on quoted market prices or other inputs that are market observable or can be corroborated by market data.

Fair values of off-balance-sheet financial instruments were not material as of March 31, 2016 and December 31, 2015.

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Note 8 —Investments

Total Realized Investment Gains and Losses

The following realized gains and (losses) on investments exclude amounts required to adjust future policy benefits for the run-off settlement annuity business:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Fixed maturities	$	(18)	$	7
Equity securities	(10)		13
Commercial mortgage loans	-		5
Other investments, including derivatives	(4)		48
Realized investment gains (losses) before income taxes	(32)		73
Less income taxes (benefits)	(11)		25
Net realized investment gains (losses)	$	(21)	$	48

Included in these realized investment gains (losses) were pre-tax asset write-downs as follows:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Other-than-temporary impairments on debt securities:
Credit-related	$	(18)	$	-
Non credit-related (1)	(9)		(5)
Total other-than-temporary impairments on debt securities	(27)		(5)
Other asset write-downs (2)	(9)		(6)
Total	$	(36)	$	(11)

(1) These write-downs pertain to other-than-temporary declines in fair values due to increases in market yields (widening of credit spreads), particularly within the energy sector, for certain below investment grade fixed maturities with an increased probability of sales activity prior to recovery of amortized cost basis.

(2) Other asset write-downs include other-than-temporary declines in fair values of equity securities and asset writedowns related to real estate investments.

Sales information for available-for-sale fixed maturities and equity securities was as follows:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Proceeds from sales	$	361	$	393
Gross gains on sales	$	12	$	27
Gross losses on sales	$	5	$	2

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Fixed Maturities and Equity Securities

The amortized cost and fair value by contractual maturity periods for fixed maturities were as follows at March 31, 2016:

	Amortized		Fair
(In millions)	Cost		Value
Due in one year or less	$	1,533	$	1,541
Due after one year through five years	6,359		6,652
Due after five years through ten years	6,888		7,216
Due after ten years	3,352		4,085
Mortgage and other asset-backed securities	552		593
Total	$	18,684	$	20,087

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

Gross unrealized appreciation (depreciation) on fixed maturities by type of issuer is shown below.

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Appreciation		Depreciation		Value
(In millions)	March 31, 2016
Federal government and agency	$	463	$	289	$	-	$	752
State and local government	1,451		153		(1)		1,603
Foreign government	1,890		183		(1)		2,072
Corporate	14,328		869		(130)		15,067
Mortgage-backed	40		2		(1)		41
Other asset-backed	512		48		(8)		552
Total	$	18,684	$	1,544	$	(141)	$	20,087

(In millions)	December 31, 2015
Federal government and agency	$	528	$	251	$	-	$	779
State and local government	1,496		147		(2)		1,641
Foreign government	1,870		147		(3)		2,014
Corporate	14,022		632		(206)		14,448
Mortgage-backed	48		2		(1)		49
Other asset-backed	492		39		(7)		524
Total	$	18,456	$	1,218	$	(219)	$	19,455

The above table includes investments with a fair value of $2.8 billion at March 31, 2016 and $2.7 billion at December 31, 2015 supporting liabilities of the Company’s run-off settlement annuity business.  These investments had gross unrealized appreciation of $636 million and gross unrealized depreciation of $14 million at March 31, 2016, compared with gross unrealized appreciation of $521 million and gross unrealized depreciation of $38 million at December 31, 2015.  Such unrealized amounts are reported in future policy benefit liabilities rather than accumulated other comprehensive income.

Review of declines in fair value.  Management reviews fixed maturities with a decline in fair value from cost for impairment based on criteria that include:

·length of time and severity of decline;

·financial health and specific near term prospects of the issuer;

·changes in the regulatory, economic or general market environment of the issuer’s industry or geographic region; and

·the Company’s intent to sell or the likelihood of a required sale prior to recovery.

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The table below summarizes fixed maturities in an unrealized loss position at March 31, 2016 by the length of time these securities have been in an unrealized loss position.  These fixed maturities were primarily corporate securities with a decline in fair value that reflects an increase in market yields since purchase.

	March 31, 2016
	Fair		Amortized		Unrealized		Number
(Dollars in millions)	Value		Cost		Depreciation		of Issues
One year or less:
Investment grade	$	1,787	$	1,840	$	(53)	292
Below investment grade	$	350	$	374	$	(24)	145
More than one year:
Investment grade	$	311	$	340	$	(29)	74
Below investment grade	$	168	$	203	$	(35)	34

There were no available for sale equity securities with a significant unrealized loss reflected in accumulated other comprehensive income at March 31, 2016.  Equity securities also include hybrid investments consisting of preferred stock with call features that are carried at fair value with changes in fair value reported in other realized investment gains (losses) and dividends reported in net investment income.  As of March 31, 2016, fair values of these securities were $37 million and amortized cost was $53 million.  As of December 31, 2015, fair values of these securities were $52 million and amortized cost was $66 million.

Commercial Mortgage Loans

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 a fixed rate of interest and are secured by high quality, primarily completed and substantially leased operating properties.

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 an ongoing basis, classifying each loan as a loan in good standing, potential problem loan or problem loan.

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 tables summarize 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, 2016 and December 31, 2015:

	March 31, 2016
	Debt Service Coverage Ratio
(In millions) Loan-to-Value Ratios	1.30x or Greater		1.20x to 1.29x		1.10x to 1.19x		1.00x to 1.09x		Less than 1.00x		Total
Below 50%	$	259	$	2	$	-	$	60	$	-	$	321
50% to 59%	672		-		-		31		-		703
60% to 69%	589		14		-		19		-		622
70% to 79%	-		-		-		30		36		66
80% to 89%	40		-		-		-		-		40
90% to 100%	-		-		-		-		96		96
Total	$	1,560	$	16	$	-	$	140	$	132	$	1,848

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	December 31, 2015
	Debt Service Coverage Ratio
(In millions) Loan-to-Value Ratios	1.30x or Greater		1.20x to 1.29x		1.10x to 1.19x		1.00x to 1.09x		Less than 1.00x		Total
Below 50%	$	261	$	2	$	-	$	67	$	-	$	330
50% to 59%	683		-		-		24		-		707
60% to 69%	590		14		-		19		-		623
70% to 79%	-		-		-		30		36		66
80% to 89%	40		-		-		-		-		40
90% to 100%	-		-		-		-		98		98
Total	$	1,574	$	16	$	-	$	140	$	134	$	1,864

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 most recent review was completed by the Company’s investment professionals in the second quarter of 2015 and 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 property values and cash flows estimated as part of this review and subsequent fundings and repayments, the portfolio’s average loan-to-value ratio remained at 58% and the portfolio’s average debt service coverage ratio remained at 1.78 at March 31, 2016 when compared to these same metrics at December 31, 2015.

The Company will reevaluate 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.

Potential problem mortgage loans are considered current (no payment is more than 59 days past due), but exhibit certain characteristics that increase the likelihood of future default.  The characteristics management considers include, but are not limited to, the deterioration of debt service coverage below 1.0, estimated loan-to-value ratios increasing to 100% or more, downgrade in quality rating and requests from the borrower for restructuring.  In addition, loans are considered potential problems if principal or interest payments are past due by more than 30 but less than 60 days.  Problem mortgage loans are either in default by 60 days or more or have been restructured as to terms, which could include concessions on interest rate, principal payment or maturity date.  The Company monitors each problem and potential problem mortgage loan on an ongoing basis, and updates the loan categorization and quality rating when warranted.

Problem and potential problem mortgage loans, net of valuation reserves, totaled $137 million at March 31, 2016 and $139 million at December 31, 2015.

Impaired commercial mortgage loans.  A commercial mortgage loan is considered impaired when it is probable that the Company will not collect all amounts due according to the terms of the original loan agreement.  These loans are included in either problem or potential problem loans.  The Company monitors credit risk and assesses the impairment of loans individually and on a consistent basis for all loans in the portfolio.  Impaired loans are carried at the lower of unpaid principal balance or the fair value of the underlying real estate.  Certain commercial mortgage loans without valuation reserves are considered impaired because the Company will not collect all interest due according to the terms of the original agreements; however, the Company expects to recover the unpaid principal because it is less than the fair value of the underlying real estate.

The carrying value of the Company’s impaired commercial mortgage loans and related valuation reserves were as follows:

	March 31, 2016						December 31, 2015
(In millions)	Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	111	$	(15)	$	96	$	113	$	(15)	$	98
Impaired commercial mortgage loans with no valuation reserves	-		-		-		-		-		-
Total	$	111	$	(15)	$	96	$	113	$	(15)	$	98

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The average recorded investment in impaired loans was $112 million during the three months ended March 31, 2016 and $146 million during the three months ended March 31, 2015.  Because of the risk profile of the underlying investment, the Company recognizes interest income on impaired mortgage loans only when payment is actually received.

Changes in valuation reserves for commercial mortgage loans were not material for the three months ended March 31, 2016 and 2015.

Short-term investments and cash equivalents

Short-term investments and cash equivalents include corporate securities of $1.5 billion, federal government securities of $231 million and money market funds of $35 million as of March 31, 2016.  The Company’s short-term investments and cash equivalents as of December 31, 2015 included corporate securities of $925 million, federal government securities of $220 million and money market funds of $55 million.

Note 9 — 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 contractholder liabilities (such as paying claims, investment returns and withdrawals) and to hedge interest rate risk of its long-term debt.  The Company has written and purchased GMIB reinsurance contracts in its run-off reinsurance business that are accounted for as freestanding derivatives.  For information on the Company’s accounting policy for derivative financial instruments, see Note 2(C) to the Consolidated Financial Statements contained in the Company’s 2015 Form 10-K.  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.

Collateral and termination features.  The Company routinely monitors exposure to credit risk associated with derivatives and diversifies the portfolio among approved dealers of high credit quality to minimize this risk.  As of March 31, 2016, the Company had $16 million in cash on deposit representing the upfront margin required for the Company’s centrally-cleared derivative instruments.  Certain of the Company’s over-the-counter derivative instruments contain provisions requiring either the Company or the counterparty to post collateral or demand immediate payment depending on the amount of the net liability position and predefined financial strength or credit rating thresholds.  Collateral posting requirements vary by counterparty.  The net asset or liability positions of these derivatives were not material as of March 31, 2016 or December 31, 2015.

Investment Cash Flow Hedges

The Company uses interest rate, foreign currency, and combination (interest rate and foreign currency) swap contracts to hedge the interest and foreign currency cash flows of its fixed maturity bonds to match associated insurance liabilities.

Using cash flow hedge accounting, fair values are reported in other long-term investments or accounts payable, accrued expenses and other liabilities.  Changes in fair value are reported in accumulated other comprehensive income and amortized into net investment income or reported in other realized investment gains and losses as interest or principal payments are received.

Under the terms of these various contracts, the Company periodically exchanges cash flows between variable and fixed interest rates or between two currencies for both principal and interest.  Foreign currency and combination swaps are primarily Euros, Australian dollars, Canadian dollars, Japanese yen and British pounds and have terms for periods of up to five years.  Net interest cash flows are reported in operating activities.

The notional values of these cash flow swaps were $131 million as of March 31, 2016 and December 31, 2015.

As of March 31, 2016 and December 31, 2015, and for the three months ended March 31, 2016 and 2015, the effects of these derivative instruments on the Consolidated Financial Statements, including the amounts of gains or losses reclassified from accumulated other comprehensive income into shareholders’ net income, were not material.  No amounts were excluded from the assessment of hedge effectiveness and no gains or losses were recognized due to hedge ineffectiveness.

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Interest Rate Fair Value Hedges

The Company entered into interest rate swap contracts to convert a portion of the interest rate exposure on its long-term debt from fixed to variable rates to more closely align interest expense with interest income received on its cash equivalent and short-term investment balances.  The variable rates are benchmarked to LIBOR.

Using fair value hedge accounting, the fair values of the swap contracts are reported in other assets, including other intangibles, or accounts payable, accrued expenses and other liabilities.  As the critical terms of these swaps match those of the long-term debt being hedged, the carrying value of the hedged debt is adjusted to reflect changes in its fair value driven by LIBOR.  The effects of those adjustments on other operating expenses are offset by the effects of corresponding changes in the swaps’ fair value, including interest expense for the difference between the variable and fixed interest rates.

Under the terms of these contracts, the Company provides upfront margin and settles fair value changes and net interest between variable and fixed interest rates daily with a central clearinghouse.  Net interest cash flows are reported in operating activities.

The notional values of these derivative instruments were $750 million as of March 31, 2016 and December 31, 2015.

As of March 31, 2016 and December 31, 2015, and for the three months ended March 31, 2016 and 2015, the effects of these derivative instruments on the Consolidated Financial Statements were not material.

GMIB

The Company’s run-off reinsurance business has written reinsurance contracts with issuers of variable annuities that provide annuitants with certain guarantees of minimum income benefits resulting from the level of variable annuity account values compared with a contractually guaranteed amount (“GMIB liabilities”).  According to the contractual terms of the written reinsurance contracts, payment by the Company depends on the actual account value in the underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments.  The Company has purchased retrocessional coverage (“GMIB assets”) for these contracts, including the agreement with Berkshire in 2013, effectively exiting this business.  See Note 6 for further details.

The fair value effects of GMIB contracts on the financial statements are included in Note 7 and their volume of activity is included in Note 16.  Cash flows on these contracts are reported in operating activities.

Note 10 — Variable Interest Entities

When the Company becomes involved with a variable interest entity, as well as when there is a change in the Company’s involvement with an entity, the Company evaluates the following to determine if it is the primary beneficiary and must consolidate the entity:

·the structure and purpose of the entity;

·the risks and rewards created by and shared through the entity; and

·the Company’s ability to direct its activities, receive its benefits and absorb its losses relative to the other parties involved with the entity including its sponsors, equity holders, guarantors, creditors and servicers.

In the normal course of its investing activities, the Company makes passive investments in securities that are issued by variable interest entities for which the Company is not the sponsor or manager.  These investments are predominantly asset-backed securities primarily collateralized by foreign bank obligations or mortgage-backed securities.  The asset-backed securities largely represent fixed-rate debt securities issued by trusts that hold perpetual floating-rate subordinated notes issued by foreign banks.  The mortgage-backed securities represent senior interests in pools of commercial or residential mortgages created and held by special-purpose entities to provide investors with diversified exposure to these assets.  The Company owns senior securities issued by several entities and receives fixed-rate cash flows from the underlying assets in the pools.  The Company’s maximum potential exposure to loss related to these investments is limited to the carrying amount of $0.6 billion as of March 31, 2016, that is reported in fixed maturities.  The Company’s combined ownership interests are insignificant relative to the total principal amounts issued by these entities.

The Company also owns interests in security and real estate limited partnerships that are variable interest entities.  These partnerships make investments in the equity or mezzanine debt of privately held companies and real estate properties.  General partners unaffiliated with the Company control decisions that most significantly impact the partnership’s operations and the limited partners do not have substantive kick-out or participating rights.  The Company’s maximum exposure to these entities of $1.9 billion across approximately 90 limited partnerships includes $1.0 billion reported in other long-term investments and commitments to contribute an additional $0.9 billion as of March 31, 2016.  The Company’s non-controlling interest in these limited partnerships is generally less than 10%.

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To provide certain services to its Medicare Advantage customers, the Company contracts with independent physician associations (“IPAs”) that are variable interest entities.  Physicians provide health care services to Medicare Advantage customers and the Company provides medical management and administrative services to the IPAs.  The Company’s maximum exposure to loss related to the IPA arrangements is limited to their liability for incurred but not reported medical costs for the Company’s Medicare Advantage customers.  These liabilities are not material and are generally secured by deposits maintained by the IPAs.

The Company is not the primary beneficiary and does not consolidate these entities because either:

·      it has no power to direct the activities that most significantly impact the entities’ economic performance; or

·it has neither the right to receive benefits nor the obligation to absorb losses that could be significant to these variable interest entities.

The Company has not provided, and does not intend to provide, financial support to these entities that it is not contractually required to provide.  The Company performs ongoing qualitative analyses of its involvement with these variable interest entities to determine if consolidation is required.

Note 11 — Pension and Other Postretirement Benefit Plans

The Company and certain of its subsidiaries provide pension, health care and life insurance defined benefits to eligible retired employees, spouses and other eligible dependents through various domestic and foreign plans.  The effect of its foreign pension and other postretirement benefit plans is immaterial to the Company’s results of operations, liquidity and financial position.  The Company froze its defined benefit postretirement medical plan in 2013 and its primary domestic pension plans in 2009.

As further discussed in Note 16, the Company and the Cigna Pension Plan are defendants in a class action lawsuit that has yet to be resolved.  When the parties agree on a final plan amendment, the pension benefit obligation will be updated to reflect additional benefits resulting from this litigation.

For the three months ended March 31, 2016, the Company’s unrecognized actuarial losses and prior service costs (reported in accumulated other comprehensive income) decreased by $16 million pre-tax in the aggregate ($11 million after-tax) resulting in an increase in shareholders’ equity.  This change was primarily a result of amortization.

Pension and Other Postretirement Benefits.  Components of net pension and net other postretirement benefit costs were as follows:

	Pension Benefits				Other Postretirement Benefits
	Three Months Ended				Three Months Ended
	March 31,				March 31,
(In millions)	2016		2015		2016		2015
Service cost	$	-	$	1	$	-	$	-
Interest cost	50		48		3		3
Expected long-term return on plan assets	(62)		(66)		-		-
Amortization of:
Net loss from past experience	17		17		-		-
Prior service cost	-		-		(1)		(1)
Net cost	$	5	$	-	$	2	$	2

The Company funds its domestic qualified pension plans at least at the minimum amount required by the Pension Protection Act of 2006.  The Company did not make any pension contributions during the three months ended March 31, 2016, and does not expect to make any pension contributions for the remainder of 2016.

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Note 12 — Debt

Short-term and long-term debt were as follows:

	March 31,		December 31,
(In millions)	2016		2015
Short-term:
Commercial paper	$	100	$	100
Current maturities of long-term debt	250		-
Other, including capital leases	49		49
Total short-term debt	$	399	$	149
Long-term:
$250 million, 5.375% Notes due 2017	$	-	$	249
$131 million, 6.35% Notes due 2018	131		131
$250 million, 4.375% Notes due 2020 (1)	261		254
$300 million, 5.125% Notes due 2020 (1)	308		303
$78 million, 6.37% Notes due 2021	78		78
$300 million, 4.5% Notes due 2021 (1)	311		304
$750 million, 4% Notes due 2022	743		743
$100 million, 7.65% Notes due 2023	100		100
$17 million, 8.3% Notes due 2023	17		17
$900 million, 3.25% Notes due 2025	892		892
$300 million, 7.875% Debentures due 2027	299		299
$83 million, 8.3% Step Down Notes due 2033	82		82
$500 million, 6.15% Notes due 2036	498		498
$300 million, 5.875% Notes due 2041	296		295
$750 million, 5.375% Notes due 2042	743		743
Other, including capital leases	32		32
Total long-term debt	$	4,791	$	5,020

(1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments.  See Note 9 for further information about the Company’s interest rate risk management and these derivative instruments.

The Company has a five-year revolving credit and letter of credit agreement for $1.5 billion that permits up to $500 million to be used for letters of credit.  This agreement extends through December 12, 2019 and is diversified among 16 banks, with three banks each having 12% of the commitment and the remainder spread among 13 banks.  The credit agreement includes options subject to consent by the administrative agent and the committing banks to increase the commitment amount to $2 billion and to extend the term past December 12, 2019.  The credit agreement is available for general corporate purposes, including for the issuance of letters of credit.  The credit agreement contains customary covenants and restrictions, including a financial covenant that the Company may not permit its leverage ratio – which is total consolidated debt to total consolidated capitalization (each as defined in the credit agreement) – to be greater than 0.50.  The leverage ratio calculation excludes net unrealized appreciation in fixed maturities and the portion of the post-retirement benefits liability adjustment attributable to pension that is included in accumulated other comprehensive loss on the Company’s consolidated balance sheets.

In addition to the $5.2 billion of debt outstanding as of March 31, 2016, the Company had $8.3 billion of borrowing capacity within the maximum debt coverage covenant in the letter of credit agreement.  This additional borrowing capacity includes the $1.5 billion available under the credit agreement.  Letters of credit outstanding as of March 31, 2016 totaled $14 million.

The Company was in compliance with its debt covenants as of March 31, 2016.

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Note 13 — Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) excludes amounts required to adjust future policy benefits for the run-off settlement annuity business and a portion of deferred acquisition costs associated with the corporate owned life insurance business.  Changes in the components of accumulated other comprehensive income (loss) were as follows:

			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Three Months Ended March 31,
2016
Net unrealized appreciation, securities, January 1,	$	612	$	(194)	$	418
Unrealized appreciation on securities arising during the period		227		(72)		155
Reclassification adjustment for losses included in shareholders’ net income (realized investment losses)		28		(10)		18
Net unrealized appreciation, securities arising during the period		255		(82)		173
Net unrealized appreciation, securities, March 31,	$	867	$	(276)	$	591
Net unrealized appreciation, derivatives, January 1,	$	10	$	(3)	$	7
Unrealized (depreciation), derivatives arising during the period		(4)		1		(3)
Net unrealized appreciation, derivatives, March 31,	$	6	$	(2)	$	4
Net translation of foreign currencies, January 1,	$	(295)	$	21	$	(274)
Net translation of foreign currencies arising during the period		83		(2)		81
Net translation of foreign currencies, March 31,	$	(212)	$	19	$	(193)
Postretirement benefits liability adjustment, January 1,	$	(2,155)	$	754	$	(1,401)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)		16		(5)		11
Postretirement benefits liability adjustment, March 31,	$	(2,139)	$	749	$	(1,390)
2015
Net unrealized appreciation, securities, January 1,	$	955	$	(335)	$	620
Unrealized appreciation on securities arising during the period		148		(47)		101
Reclassification adjustment for (gains) included in shareholders’ net income (realized investment gains)		(20)		7		(13)
Net unrealized appreciation, securities arising during the period		128		(40)		88
Net unrealized appreciation, securities, March 31,	$	1,083	$	(375)	$	708
Net unrealized (depreciation), derivatives, January 1,	$	(12)	$	4	$	(8)
Net unrealized appreciation, derivatives arising during the period		10		(3)		7
Net unrealized (depreciation), derivatives, March 31,	$	(2)	$	1	$	(1)
Net translation of foreign currencies, January 1,	$	(71)	$	9	$	(62)
Net translation of foreign currencies arising during the period		(109)		5		(104)
Net translation of foreign currencies, March 31,	$	(180)	$	14	$	(166)
Postretirement benefits liability adjustment, January 1,	$	(2,286)	$	800	$	(1,486)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)		16		(5)		11
Postretirement benefits liability adjustment, March 31,	$	(2,270)	$	795	$	(1,475)

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Note 14 — Income Taxes

A.  Income Tax Expense

The consolidated effective tax rates of 37.2% for the three months ended March 31, 2016 and 37.8% for the three months ended March 31, 2015 reflect the health insurance industry tax that is not deductible for federal income tax purposes.  The effective tax rate for 2016 also reflects tax benefits associated with adopting ASU 2016-09 effective January 1, 2016 as described in Note 2, partially offset by the impact of certain costs related to the pending Anthem transaction that are not tax deductible.

As part of its global capital management strategy, the Company’s foreign operations retain a significant portion of their earnings overseas.  These undistributed earnings are deployed outside of the U.S. in support of the liquidity and capital needs of our foreign operations.  The Company does not intend to repatriate these earnings to the U.S. and as a result, income taxes are provided using the respective foreign jurisdictions’ tax rate.  The Company has accumulated undistributed foreign earnings of $2.4 billion as of March 31, 2016.  If the Company intended to repatriate these foreign earnings to the U.S., the Company’s consolidated balance sheet would have included an additional $340 million of deferred tax liabilities as of March 31, 2016.

B.  Unrecognized Tax Benefits

Changes in unrecognized tax benefits were immaterial for the three months ended March 31, 2016.

C.  Other Tax Matters

The Internal Revenue Service (“IRS”) is expected to complete their examination of the Company’s 2011 and 2012 consolidated federal income tax returns during the second half of 2016.

Note 15 — Segment Information

The financial results of the Company’s businesses are reported in the following segments:

Global Health Care aggregates the Commercial and Government operating segments due to their similar economic characteristics, products and services and regulatory environment:

·The Commercial operating segment encompasses both the U.S. commercial and certain international health care businesses serving employers and their employees, other groups, and individuals.  Products and services include medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services to insured and self-insured customers.

·The Government operating segment offers Medicare Advantage and Medicare Part D plans to seniors and Medicaid plans.

Global Supplemental Benefits includes supplemental health, life and accident insurance products offered in selected international markets and in the U.S.

Group Disability and Life provides group long-term and short-term disability, group life, accident and specialty insurance products and related services.

Other Operations consist of:

·corporate-owned life insurance (“COLI”);

·run-off reinsurance business that is predominantly comprised of GMDB and GMIB business effectively exited through reinsurance with Berkshire in 2013;

·deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business; and

·run-off settlement annuity business.

Corporate reflects amounts not allocated to operating segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options, expense associated with frozen pension plans and certain costs for corporate projects, including overhead.

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In the Company’s segment disclosures, we present ‘‘operating revenues,’’ defined as total revenues excluding realized investment results. The Company excludes realized investment results from this measure because its portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment. As a result, gains or losses created in this process may not be indicative of past or future underlying performance of the business.

The Company uses adjusted income (loss) from operations as its principal financial measure of segment operating performance because management believes it best reflects the underlying results of business operations and permits analysis of trends in underlying revenue, expenses and profitability.  Adjusted income from operations is defined as shareholders’ net income (loss) excluding after-tax realized investment gains and losses, net amortization of other acquired intangible assets and special items.  Income or expense amounts are excluded from adjusted income from operations for the following reasons:

·Realized investment results are excluded because, as noted above, our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment.

·Net amortization of other intangible assets is excluded because it relates to costs incurred for acquisitions and, as a result, it does not relate to the core performance of the Company’s business operations.

·Special items, if any, are excluded because management believes they are not representative of the underlying results of operations.

For the three months ended March 31, 2016, we reported a special item charge consisting of $40 million of pre-tax costs ($36 million after-tax) related to our proposed merger with Anthem.  See Note 3 to the Consolidated Financial Statements for additional details.  There were no special items for the three months ended March 31, 2015.  In connection with adopting ASU 2016-09, in the first quarter of 2016 the Company recognized $23 million for certain income tax effects of stock-based compensation in adjusted income from operations for Corporate.  See Note 2 to the Consolidated Financial Statements for further discussion.

Summarized segment financial information was as follows:

(In millions)	Global Health Care		Global Supplemental Benefits		Group Disability and Life		Other Operations		Corporate		Total
Three Months Ended March 31, 2016
Premiums, fees and other revenues and mail order pharmacy revenues	$	7,812	$	780	$	1,029	$	27	$	(4)	$	9,644
Net investment income	72		26		80		90		4		272
Operating revenues	$	7,884	$	806	$	1,109	$	117	$	-	$	9,916
Total revenues	$	7,867	$	804	$	1,106	$	107	$	-	$	9,884
Shareholders’ net income	$	514	$	59	$	13	$	14	$	(81)	$	519
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment losses	12		1		2		6		-		21
Amortization of other acquired intangible assets, net	18		7		-		-		-		25
Special Item:
Merger-related transaction costs	-		-		-		-		36		36
Total special items	-		-		-		-		36		36
Adjusted income from operations	$	544	$	67	$	15	$	20	$	(45)	$	601
Three Months Ended March 31, 2015
Premiums, fees and other revenues and mail order pharmacy revenues	$	7,371	$	743	$	976	$	32	$	(4)	$	9,118
Net investment income	75		26		83		92		-		276
Operating revenues	$	7,446	$	769	$	1,059	$	124	$	(4)	$	9,394
Total revenues	$	7,495	$	772	$	1,081	$	123	$	(4)	$	9,467
Shareholders’ net income	$	453	$	67	$	65	$	19	$	(71)	$	533
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment (gains)	(32)		(3)		(14)		1		-		(48)
Amortization of other acquired intangible assets, net	23		5		-		-		-		28
Adjusted income from operations	$	444	$	69	$	51	$	20	$	(71)	$	513

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The Company had receivables, net of allowances, from CMS of $1.5 billion as of March 31, 2016 and December 31, 2015.  These amounts were included in the Consolidated Balance Sheet in premiums, accounts and notes receivable and reinsurance recoverables.  Premiums from CMS were 21% of consolidated revenues for the three months ended March 31, 2016 and 22% for the three months ended March 31, 2015.

Note 16 — 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

Separate account assets are contractholder funds maintained in accounts with specific investment objectives.  The Company records separate account liabilities equal to separate account assets.  In certain cases, the Company guarantees a minimum level of benefits for retirement and insurance contracts written in separate accounts.  The Company establishes an additional liability if management believes that the Company will be required to make a payment under these guarantees.

The Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree 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.  This percentage varies depending on the asset class within a sponsoring employer’s portfolio (for example, a bond fund would require a lower percentage than a riskier equity fund) and thus will vary as the composition of the portfolio changes.  If employers do not maintain the required levels of separate account assets, the Company or an affiliate of the buyer of the retirement benefits business (Prudential Retirement Insurance and Annuity Company) has the right to redirect the management of the related assets to provide for benefit payments.  As of March 31, 2016, employers maintained assets that exceeded the benefit obligations.  Benefit obligations under these arrangements were $490 million as of March 31, 2016 and approximately 13% of these are reinsured by an affiliate of the buyer of the retirement benefits business.  The remaining guarantees are provided by the Company with minimal reinsurance from third parties.  There were no additional liabilities required for these guarantees as of March 31, 2016.  Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy.  See Note 7 for further information on the 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. GMIB Contracts

Under these guarantees, the future payment amounts are dependent on underlying mutual fund investment values and interest rate levels prior to and at the date of annuitization election that must occur within 30 days of a policy anniversary after the appropriate waiting period.  Therefore, the future payments are not fixed and determinable under the terms of these contracts.  Accordingly, the Company calculated exposure, without considering any reinsurance coverage, using the following hypothetical assumptions:

·no annuitants surrendered their accounts;

·all annuitants lived to elect their benefit;

·all annuitants elected to receive their benefit on the next available date (2016 through 2022); and

·all underlying mutual fund investment values remained at the March 31, 2016 value of $908 million with no future returns.

The Company has reinsurance coverage in place that covers the exposures on these contracts.  Using these hypothetical assumptions, GMIB exposure is $802 million, which is lower than the recorded liability for GMIB calculated using fair value assumptions.  See Notes 6, 7 and 9 for further information on GMIB contracts.

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C.  Certain Other Guarantees

The Company had indemnification obligations to lenders of up to $178 million as of March 31, 2016, related to borrowings by certain real estate joint ventures that the Company either records as an investment or consolidates.  These borrowings, that are nonrecourse to the Company, are secured by the joint ventures’ real estate properties with fair values in excess of the loan amounts and mature at various dates beginning in 2016 through 2021.  The Company’s indemnification obligations would require payment to lenders for any actual damages resulting from certain acts such as unauthorized ownership transfers, misappropriation of rental payments by others or environmental damages.  Based on initial and ongoing reviews of property management and operations, the Company does not expect that payments will be required under these indemnification obligations.  Any payments that might be required could be recovered through a refinancing or sale of the assets.  In some cases, the Company also has recourse to partners for their proportionate share of amounts paid.  There were no liabilities required for these indemnification obligations as of March 31, 2016.

As of March 31, 2016, the Company guaranteed that it would compensate the lessors for a shortfall of up to $41 million in the market value of certain leased equipment at the end of the leases.  Guarantees of $16 million expire in the fourth quarter of 2016 and $25 million expire in 2022.  The Company had liabilities for these guarantees of $14 million as of March 31, 2016.

The Company does not expect that these guarantees will have a material adverse effect on the Company’s consolidated results of operations, financial condition or liquidity.

The Company had indemnification obligations as of March 31, 2016 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, the filing of tax returns, compliance with law or the 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, 2016.

D. 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.  For the three months ended March 31, 2016 and 2015, charges related to guaranty fund assessments were immaterial to the Company’s results of operations.

The Company is aware of an insurer that is in rehabilitation.  In 2012, the state court denied the regulator’s amended petitions for liquidation and set forth specific requirements and a deadline for the regulator to develop a plan of rehabilitation without liquidating the insurer.  The regulator has appealed the court’s decision.  If the actions taken in the rehabilitation plan fail to improve this insurer’s financial condition, or if the state court’s ruling is overturned on appeal, this insurer may be forced into insolvency.  In that event, the Company would be required to pay guaranty fund assessments related to this insurer.  Due to the uncertainties surrounding this matter, the Company is unable to estimate the amount of any potential guaranty fund assessments.  The Company is monitoring this situation.

E.  Legal and Regulatory Matters

The Company is routinely involved in numerous claims, lawsuits, regulatory audits, investigations and other legal matters arising, for the most part, in the ordinary course of managing a health services business.  These actions may include benefit disputes, breach of contract claims, tort claims, provider disputes, disputes regarding reinsurance arrangements, employment and employment discrimination-related suits, employee benefit claims, wage and hour claims, privacy, intellectual property claims and real estate-related disputes.  There are currently, and may be in the future, attempts to bring class action lawsuits against the industry.  The Company also is regularly engaged in IRS audits and may be subject to examinations by various state and foreign taxing authorities.  Disputed income tax matters arising from these examinations, including those resulting in litigation, are accounted for under the FASB’s guidance for uncertain tax positions.  Further information on income tax matters can be found in Note 14.

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The business of administering and insuring health services programs, particularly health care and group insurance programs, is heavily regulated by federal and state laws and administrative agencies, such as state departments of insurance and the U.S. Departments of Health and Human Services (“HHS”), Treasury, Labor and Justice, as well as the courts.  Health care regulation and legislation in its various forms, including the implementation of Health Care Reform, other regulatory reform initiatives, such as those relating to Medicare programs, or additional changes in existing laws or regulations or their interpretations, could have a material adverse effect on the Company’s business, results of operations and financial condition.

In addition, there is heightened review by federal and state regulators of the health care, disability and life insurance industry business and related reporting practices.  Cigna is frequently the subject of regulatory market conduct reviews and other examinations of its business and reporting practices, audits and investigations by state insurance and health and welfare departments, state attorneys general, CMS and the Office of Inspector General (“OIG”).  With respect to Cigna’s Medicare Advantage business, the CMS and OIG perform audits to determine a health plan’s compliance with federal regulations and contractual obligations, including compliance with proper coding practices (sometimes referred to as Risk Adjustment Data Validation audits or RADV audits), that may result in retrospective adjustments to payments made to health plans.  Regulatory actions can result in assessments, civil or criminal fines or penalties or other sanctions, including loss of licensing or exclusion from participating in government programs.

As a global company, Cigna is also subject to the laws, regulations and rules of the foreign jurisdictions in which it conducts business.  Foreign laws and rules, and regulatory audit and investigation practices, may differ from or be more stringent than, similar requirements in the U.S.

Regulation, legislation and judicial decisions have resulted in changes to industry and the Company’s business practices, financial liability or other sanctions and will continue to do so in the future.

When the Company (in the course of its regular review of pending litigation and legal or regulatory matters) has determined that a material loss is reasonably possible, the matter is disclosed.  Such matters are described in the Litigation Matters and Regulatory Matters sections below.  In accordance with GAAP, when litigation and regulatory matters present loss contingencies that are both probable and estimable, the Company accrues the estimated loss by a charge to net income.  The amount accrued represents the Company’s best estimate of the probable loss at the time.  If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in the Company’s judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues the minimum amount of the range.  In cases when the Company has accrued an estimated loss, the accrued amount may differ materially from the ultimate amount of the loss.  In many proceedings, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount or range of any loss.  The Company provides disclosure in the aggregate for material pending litigation and legal or regulatory matters, including accruals, range of loss, or a statement that such information cannot be estimated.  As a litigation or regulatory matter develops, the Company monitors the matter for further developments that could affect the amount previously accrued, if any, and updates such amount accrued or disclosures previously provided as appropriate.

The outcome of litigation and other legal or regulatory matters is always uncertain, and unfavorable outcomes that are not justified by the evidence or existing law can occur.  The Company believes that it has valid defenses to the matters pending against it and is defending itself vigorously.  Except as otherwise noted, the Company believes that the legal actions, regulatory matters, proceedings and investigations currently pending against it should not have a material adverse effect on the Company’s results of operations, financial condition or liquidity based upon current knowledge and taking into consideration current accruals.  The Company had pre-tax reserves as of March 31, 2016 of approximately $190 million ($125 million after-tax) for the matters discussed below under the heading “Litigation Matters”.  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.

Litigation Matters

Amara cash balance pension plan litigation.  In December, 2001, Janice Amara filed a class action lawsuit in the U.S. District Court for the District of Connecticut against Cigna Corporation and the Cigna Pension Plan (the “Plan”) on behalf of herself and other similarly situated Plan participants affected by the 1998 conversion to a cash balance formula.  The plaintiffs allege various violations of the Employee Retirement Income Security Act of 1974 (“ERISA”), including that the Plan’s cash balance formula discriminates against older employees; that the conversion resulted in a wear-away period (when the pre-conversion accrued benefit exceeded the post-conversion benefit); and that the Plan communications contained inaccurate or inadequate disclosures about these conditions.

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In 2008, the District Court (1) affirmed the Company’s right to convert to a cash balance plan prospectively beginning in 1998; (2) found for plaintiffs on the disclosure claim only; and (3) required the Company to pay pre-1998 benefits under the pre-conversion traditional annuity formula and post-1997 benefits under the post-conversion cash balance formula.  The Second Circuit upheld this decision.  From 2008 through the present, this case has undergone a series of court proceedings that resulted in the original District Court order being largely upheld.  In 2015, the Company submitted to the District Court its proposed method for calculating the additional pension benefits due to class members and plaintiffs responded in August 2015.

In January 2016, the District Court ordered the method of calculating the additional pension benefits due to class members.  The court order left several aspects of the calculation of additional plan benefits open to interpretation.  The parties continue to work towards obtaining agreement around differences in interpretation.  The timing of the resolution of these differences remains uncertain.  Once resolved, the Plan will be amended to comply with the agreed-upon interpretation of the District Court’s order and the benefits will begin to be paid.  The Company’s reserve for this litigation remains reasonable at March 31, 2016 based on a calculation consistent with the Company’s interpretation of the court order.

Ingenix.  In April 2004, the Company was sued in a number of putative nationwide class actions alleging that the Company improperly underpaid claims for out-of-network providers through the use of data provided by Ingenix, Inc., a subsidiary of one of the Company’s competitors.  These actions were consolidated into Franco v. Connecticut General Life Insurance Company, et al., pending in the U.S. District Court for the District of New Jersey.  The consolidated amended complaint, filed in 2009 on behalf of subscribers, health care providers and various medical associations, asserted claims related to benefits and disclosure under ERISA, the Racketeer Influenced and Corrupt Organizations (“RICO”) Act, the Sherman Antitrust Act and New Jersey state law and seeks recovery for alleged underpayments from 1998 through the present.  Other major health insurers have been the subject of, or have settled, similar litigation.

In September 2011, the District Court (1) dismissed all claims by the health care provider and medical association plaintiffs for lack of standing; and (2) dismissed the antitrust claims, the New Jersey state law claims and the ERISA disclosure claim.  In January 2013 and again in April 2014, the District Court denied separate motions by the plaintiffs to certify a nationwide class of subscriber plaintiffs.  The Third Circuit denied plaintiff’s request for an immediate appeal of the January 2013 ruling.  As a result, the case is proceeding on behalf of the named plaintiffs only.  In June 2014, the District Court granted the Company’s motion for summary judgment to terminate all claims, and denied the plaintiffs’ partial motion for summary judgment.  In July 2014, the plaintiffs appealed all of the District Court’s decisions in favor of the Company, including the class certification decision, to the Third Circuit.  On May 2, 2016, the Third Circuit affirmed the District Court’s decisions denying class certification for the claims asserted by members, the granting of summary judgment on the individual plaintiffs’ claims, as well as the dismissal of the antitrust claims.  However, the Third Circuit also reversed the earlier dismissal of the providers’ ERISA claims.  The Company will continue to vigorously defend its position.

Regulatory Matters

CMS actions.  In January 2016, CMS issued to the Company a Notice of Imposition of Immediate Intermediate Sanctions (“the Notice”).  The Notice requires the Company to suspend certain enrollment and marketing activities for its Medicare Advantage-Prescription Drug and Medicare Part D Plans.  The sanctions do not impact the ability of current enrollees to remain covered by the Company’s Medicare Advantage-Prescription Drug or Medicare Part D Plans.

CMS imposed sanctions based on its finding of deficiencies with the Company’s operations of its Parts C and D appeals and grievances, Part D formulary and benefit administration, and compliance program.  The Company is working to resolve these matters as quickly as possible and is cooperating fully with CMS on its review.  The Company does not expect the impact to its 2016 consolidated results of operations, financial condition or cash flows to be material.

Disability claims regulatory matter. During the second quarter of 2013, the Company finalized an agreement with the Departments of Insurance for Maine, Massachusetts, Pennsylvania, Connecticut and California (together, the “monitoring states”) related to the Company’s long-term disability claims handling practices. Most other jurisdictions have joined the agreement as participating, non-monitoring states. As previously disclosed, the Company recorded a charge of $77 million before-tax ($51 million after-tax) in the first quarter of 2013 related to this matter. The agreement requires, among other things: (1) enhanced procedures related to documentation and disposition; (2) a two-year monitoring period followed by a re-examination that is scheduled to begin in the second quarter of 2016; and (3) reassessment of claims denied or closed during a two-year prior period, except California that has a three-year reassessment period. The Company is actively addressing the requirements of the agreement.

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Other Legal Matters

Following announcement of the Company’s merger agreement with Anthem as discussed in Note 3, putative class action complaints (collectively the “complaints” or “Cigna Merger Litigation”) were filed by purported Cigna shareholders on behalf of a purported class of Cigna shareholders.  Additional lawsuits arising out of or relating to the merger agreement or the merger may be filed in the future.

Cigna, members of the Cigna board of directors, Anthem and Anthem Merger Sub Corp (“Merger Sub”) have been named as defendants. The plaintiffs generally assert that the members of the Cigna board of directors breached their fiduciary duties to the Cigna shareholders during merger negotiations and by entering into the merger agreement and approving the merger, and that Cigna, Anthem and Merger Sub aided and abetted such breaches of fiduciary duties. The allegations include, among other things, that (1) the merger consideration undervalues Cigna, (2) the sales process leading up to the merger was flawed due to purported conflicts of interest of members of the Cigna board of directors and (3) certain provisions of the merger agreement inappropriately favor Anthem and inhibit competing bids. Plaintiffs seek, among other things, injunctive relief enjoining the merger, rescission of the merger agreement to the extent already implemented, and costs and damages.

Effective November 24, 2015, solely to avoid the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing, the Company, the Company’s directors, Anthem and Merger Sub entered into a Memorandum of Understanding (“MOU”) to settle the Cigna Merger Litigation. Subject to approval by the Connecticut Superior Court, Judicial District of Hartford and further definitive documentation in a settlement agreement that will be subject to customary conditions, the MOU resolved the Cigna Merger Litigation and provided that the Company would make certain additional disclosures related to the merger. If the Court approves the settlement, the Cigna Merger Litigation will be dismissed with prejudice and all claims that were or could have been brought in any actions challenging any aspect of the merger, the merger agreement and any related disclosures will be released. In connection with the settlement, subject to the ultimate determination of the Court, plaintiffs’ counsel may receive an award of reasonable fees. There can be no assurance that the parties will ultimately enter into a settlement agreement, or that the Court will approve the settlement even if the parties were to enter into such agreement. The MOU may terminate, if, among other reasons, the Court does not approve the settlement or the merger is not consummated for any reason.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

INDEX

Cautionary Statement	39
Overview	40
Consolidated Results of Operations	44
Liquidity and Capital Resources	46
Critical Accounting Estimates	49
Segment Reporting	49
Global Health Care	50
Global Supplemental Benefits	52
Group Disability and Life	53
Other Operations	54
Corporate	54
Investment Assets	55
Market Risk	58

Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide information to assist you in better understanding and evaluating our financial condition as of March 31, 2016 compared with December 31, 2015 and our results of operations for the three months ended March 31, 2016 compared with the same period last year.  We encourage you to read this MD&A in conjunction with our Consolidated Financial Statements included in Part I, Item 1 of this Form 10-Q and our Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Form 10-K”), in particular the “Risk Factors” contained in Part I, Item 1A of that form.

Unless otherwise indicated, financial information in the MD&A is presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  See Note 2 to the Consolidated Financial Statements in our 2015 Form 10-K for additional information regarding our significant accounting policies.  The preparation of interim consolidated financial statements necessarily relies heavily on estimates.  This and certain other factors, such as the seasonal nature of portions of the health care and related benefits business, as well as competitive and other market conditions, call for caution in estimating full year results based on interim results of operations.  In some of our financial tables in this MD&A, we present percentage changes or “N/M” when those changes are so large as to become not meaningful, and changes in percentages are expressed in basis points (“bps”).

In this MD&A, our consolidated measures “operating revenues” and “adjusted income from operations” are not determined in accordance with GAAP and should not be viewed as substitutes for the most directly comparable GAAP measures “total revenues” and “shareholders’ net income.”

We define operating revenues as total revenues excluding realized investment results.  We exclude realized investment results from this measure because our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment.  As a result, gains or losses created in this process may not be indicative of past or future underlying performance of the business.

We use adjusted income (loss) from operations as our principal financial measure of operating performance because management believes it best reflects the underlying results of our business operations and permits analysis of trends in underlying revenue, expenses and profitability.  We define adjusted income from operations as shareholders’ net income (loss) excluding after-tax realized investment gains and losses, net amortization of other acquired intangible assets and special items.  Income or expense amounts are excluded from adjusted income from operations for the following reasons:

·Realized investment results are excluded because, as noted above, our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment.

·Net amortization of other intangible assets is excluded because it relates to costs incurred for acquisitions and, as a result, it does not relate to the core performance of our business operations.

·Special items, if any, are excluded because management believes they are not representative of the underlying results of operations.  For the three months ended March 31, 2016, we reported a special item charge in Corporate consisting of $40 million of pre-tax costs ($36 million after-tax) directly related to the proposed merger with Anthem, Inc. (“Anthem”).  See Note 3 to the Consolidated Financial Statements for additional details.  There were no special items for the three months ended March 31, 2015.

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Cautionary Note Regarding Forward-Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are based on Cigna’s current expectations and projections about future trends, events and uncertainties.  These statements are not historical facts.  Forward-looking statements may include, among others, statements concerning our business strategy and strategic or operational initiatives including our ability to deliver personalized and innovative solutions for customers and clients; future growth and expansion; future financial or operating performance; economic, regulatory or competitive environments; our projected cash position, future pension funding and financing or capital deployment plans; the proposed merger between Cigna and Anthem; statements regarding the timing of resolution of the issues raised by the Centers for Medicare and Medicaid Services (“CMS”); and other statements regarding Cigna’s future beliefs, expectations, plans, intentions, financial condition or performance.  You may identify forward-looking statements by the use of words such as “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “may,” “should,” “will” or other words or expressions of similar meaning, although not all forward-looking statements contain such terms.

Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially from those expressed or implied in forward-looking statements.  Such risks and uncertainties include, but are not limited to: our ability to achieve our financial, strategic and operational plans or initiatives; our ability to predict and manage medical costs and price effectively and develop and maintain good relationships with physicians, hospitals and other health care providers; our ability to identify potential strategic acquisitions or transactions and realize the expected benefits of such strategic transactions; the substantial level of government regulation over our business and the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of litigation, regulatory audits including the CMS review and sanctions, investigations, actions and guaranty fund assessments; uncertainties surrounding participation in government-sponsored programs such as Medicare; the effectiveness and security of our information technology and other business systems; unfavorable industry, economic or political conditions including foreign currency movements; the timing and likelihood of completion of the proposed merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals for the proposed merger that could reduce anticipated benefits or cause the parties to abandon the transaction; the possibility that the expected synergies and value creation from the proposed merger will not be realized or will not be realized within the expected time period; the risk that the businesses of Cigna and Anthem will not be integrated successfully; disruption from the proposed merger making it more difficult to maintain business and operational relationships; the risk that unexpected costs will be incurred; the possibility that the proposed merger does not close, including a failure to satisfy the closing conditions; the risk that financing for the proposed merger may not be available on favorable terms, as well as more specific risks and uncertainties discussed in Part I, Item 1A of our 2015 Form 10-K and as described from time to time in our future reports filed with the Securities and Exchange Commission (“SEC”) as well as the risks and uncertainties described in Anthem’s most recent report on Form 10-K and subsequent reports filed with the SEC.

You should not place undue reliance on forward-looking statements, which speak only as of the date they are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify.  Cigna undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

39

OVERVIEW

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 dedicated to a mission of helping individuals improve their health, well-being and sense of security.  To execute on our mission, Cigna’s strategy is to “Go Deep,” “Go Global” and “Go Individual” with a differentiated set of medical, dental, disability, life and accident insurance and related products and services offered by our subsidiaries.  In addition to our ongoing operations, we also have certain run-off operations.

On July 23, 2015, we entered into a definitive agreement to merge with Anthem, subject to certain terms, conditions and customary operating covenants, with Anthem continuing as the surviving company.  Upon closing, our shareholders will receive $103.40 in cash and 0.5152 of a share of Anthem common stock for each common share of the Company.  The closing price of Anthem common stock on May 5, 2016 was $137.07.  At special shareholders’ meetings in December 2015, Cigna shareholders approved the merger with Anthem and Anthem shareholders voted to approve the issuance of shares of Anthem common stock according to the merger agreement.  Consummation of the merger is subject to certain customary conditions, including the receipt of certain necessary governmental and regulatory approvals, and the absence of a legal restraint prohibiting the consummation of the merger.  While we continue to work toward achieving regulatory approval as quickly as possible and to target a closing date in the second half of 2016, the closing will ultimately be subject to the approval and timing of the regulators. In light of the complexity of the regulatory process and the dynamic environment, it is possible that such approvals may not be obtained in 2016.

See Note 3 to the Consolidated Financial Statements for additional details.  In addition, see Item 1A. – Risk Factors in our 2015 Form 10-K for risks to our business due to the proposed merger.

For further information on our business and strategy, please see Item 1, “Business” in our 2015 Form 10-K.

Executive Overview

This section includes a discussion of our consolidated financial results for the three months ended March 31, 2016 compared with the same period in 2015 as well as key trends and transactions impacting our business.  See Note 15 to the Consolidated Financial Statements for a description of our reporting segments.

Financial Summary

Summarized below are certain key measures of our performance for the three months ended March 31:

	Three Months Ended
	March 31,
(Dollars in millions, except per share amounts)	2016		2015		% Change
Operating revenues (1)
Global Health Care	$	7,884	$	7,446	6	%
Global Supplemental Benefits	806		769		5
Group Disability and Life	1,109		1,059		5
Other Operations	117		124		(6)
Corporate	-		(4)		100
Consolidated operating revenues	$	9,916	$	9,394	6	%
Total revenues	$	9,884	$	9,467	4	%
Adjusted income from operations (1)
Global Health Care	$	544	$	444	23	%
Global Supplemental Benefits	67		69		(3)
Group Disability and Life	15		51		(71)
Other Operations	20		20		-
Corporate	(45)		(71)		37
Total adjusted income from operations	$	601	$	513	17	%
Shareholders’ net income (1)	$	519	$	533	(3)	%
Earnings per share (diluted):
Adjusted income from operations (1)	$	2.32	$	1.96	18	%
Shareholders’ net income (1)	$	2.00	$	2.04	(2)	%
Global medical customers (in thousands)	15,129		14,654		3	%

(1) See Consolidated Results of Operations on page 44 for reconciliations of operating revenues to total revenues and adjusted income from operations to shareholders’ net income.

40

Operating revenues increased for the three months ended March 31, 2016 compared with the same period in 2015 in each of our ongoing reporting segments (Global Health Care, Global Supplemental Benefits and Group Disability and Life).  These increases are primarily attributable to customer growth in our targeted market segments, higher premium rates in our commercial health care businesses to recover medical cost trend and growth in specialty businesses within our Global Health Care segment.

Total revenues.  The increase in operating revenues was partially offset by a decrease in realized investment results.

Shareholders’ net income decreased for the three months ended March 31, 2016 compared with the same period in 2015 as the lower realized investment results discussed above and merger-related transaction costs described in Note 3 to the Consolidated Financial Statements were partially offset by higher adjusted income from operations as discussed below.

Adjusted income from operations increased for the three months ended March 31, 2016 compared with the same period in 2015 due to increased contributions from specialty health care businesses in our Global Health Care segment,  partially offset by lower earnings in our Group Disability and Life segment.

Global medical customers.  Our medical customer base increased for the three months ended March 31, 2016 compared with the same period in 2015 due to growth in our middle market, select and Government market segments.

Further discussion of detailed components of revenue and expenses can be found in the “Consolidated Results of Operations” section of this MD&A beginning on page 44.  For further analysis and explanation of individual segment results, see the “Segment Reporting” section of this MD&A beginning on page 49.

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Health Care Industry Developments

Our 2015 Form 10-K provides a detailed description of The Patient Protection and Affordable Care Act (“Health Care Reform”) provisions and other legislative initiatives that impact our health care business, including regulations issued by CMS, and the Departments of the Treasury and Health and Human Services (“HHS”).  The table presented below provides an update of the impact of these items as of March 31, 2016.

Item	Description
Medicare Advantage (“MA”)	CMS actions:  In January 2016, CMS issued to the Company a Notice of Imposition of Immediate Intermediate Sanctions (“the Notice”).  The Notice requires the Company to suspend certain enrollment and marketing activities for Medicare Advantage-Prescription Drug and Medicare Part D Plans.  The sanctions do not impact the ability of current enrollees to remain covered by the Company’s Medicare Advantage-Prescription Drug or Medicare Part D Plans.  See Note 16 to the Consolidated Financial Statements for additional information. We do not expect a material impact on 2016 consolidated results of operations, financial condition or cash flows.  If, however, the Company is not able to address matters arising from the Notice in a timely and satisfactory manner, or if there are changes in eligibility for government payments for our programs that are not resolved in a timely and satisfactory manner, the impact to our 2017 Medicare customer base and consolidated revenues, results of operations and cash flows could be material. 2017 MA Rates: Final MA reimbursement rates for 2017 were published by CMS in April 2016.  We do not expect the new rates to have a material impact on our consolidated results of operations in 2017.
Health Care Reform Taxes and Fees -Industry Tax	Health Insurance Industry Tax:  This non-deductible tax is being levied based on a ratio of an insurer’s net health insurance premiums written for the previous calendar year compared to the U.S. health insurance industry total.  We recognized approximately $80 million in operating expenses for the three months ended March 31, 2016 and in 2015.  The industry assessment is $11.3 billion in both 2015 and 2016, and our full-year fee for 2016 is expected to approximate $315 million compared with $310 million in 2015.  Because this tax is not deductible for federal income tax purposes, it negatively impacts our effective tax rate.  Of the full year 2016 tax, $180 million relates to our commercial business and $135 million to our Medicare business. For our commercial business, we incorporated the industry tax into target pricing actions.  For our Medicare business, although we have partially mitigated the effect of the tax through benefit changes and customer premium increases, the combination of the tax and lower MA rates have reduced margins in the Government operating segment in both 2016 and 2015. In December 2015, federal appropriations legislation imposed a one-year moratorium on the industry tax for 2017, with reinstatement expected in 2018.  Our target pricing actions related to 2017 and 2018 plan years will consider the impacts of this legislation.
-Reinsurance Fee	Reinsurance Fee:  This fee is a fixed dollar per customer levy that applies to both insured and self-insured major medical plans excluding certain products such as Medicare Advantage and Medicare Part D.  Proceeds from the fee are being used to fund the reinsurance program for non-grandfathered individual business sold either on or off the public exchanges beginning in 2014.  For our insured business, the amount of the fee is expected to approximate $45 million in 2016 compared with $70 million in 2015 and is tax deductible.  The decrease in 2016 reflects a decline in the per-customer levy from $44 in 2015 to $27 in 2016.  We recorded approximately $10 million for the reinsurance fee for the three months ended March 31, 2016 compared with $20 million for the three months ended March 31, 2015.  We incorporate these fees into target pricing actions.
Public Health Exchanges	Public Health Exchanges:  For 2016, we are offering individual coverage on seven public health insurance exchanges (Arizona, Colorado, Georgia, Maryland, Missouri, Tennessee and Texas).

42

Risk Mitigation Programs

See Note 2(R) to the Consolidated Financial Statements in our Form 2015 10-K for a description of and our accounting policy for these programs that commenced in 2014.

The following table presents the after-tax impact to shareholders’ net income of these programs for the three months ended March 31, 2016 and March 31, 2015 and our net receivable balances as of March 31, 2016 and December 31, 2015.

	After-tax Impact on Shareholders’ Net Income (1)
	For the Three Months Ended				Net Receivable Balance (2)
	March 31,				March 31,		December 31,
(In millions)	2016		2015		2016		2015
Reinsurance	$	2	$	16	$	98	$	158
Risk Adjustment	(3)		-		110		118
Risk Corridor	(4)		15		127		134
Total	$	(5)	$	31	$	335	$	410

(1) For the 2015 and 2016 coverage years, we have accrued reinsurance recoveries at the 50% coinsurance rate prescribed by Health Care Reform.

(2) For the reinsurance program, receivables are reported in reinsurance recoverables.  Receivables, net of allowances, for the risk adjustment and risk corridor programs are reported in premiums, accounts and notes receivable.  Payables for the risk corridor program are netted in the receivable balance presented above, and are reported in accounts payable, accrued expenses and other liabilities.

In the first quarter of 2016, we received approximately $65 million related to the 2015 risk mitigation programs and in 2015, we received approximately $300 million related to the 2014 risk mitigation programs.  CMS has paid substantially all amounts due under the 2014 reinsurance and risk adjustment programs.  In addition, CMS has paid approximately 13% of insurers’ 2014 coverage year risk corridor receivables.  CMS has acknowledged its legal obligation to pay insurers under the risk corridor program for the balance of the 2014 coverage year as well as the 2015 coverage year, as required by Health Care Reform.  If CMS’ risk corridor program collections, including carryovers from prior years, are insufficient to satisfy its payment obligations, CMS has stated that it will explore other funding sources subject to the availability of appropriations that may require congressional approval.  We are continuing to monitor developments related to the risk corridor program.

43

CONSOLIDATED RESULTS OF OPERATIONS

Summarized below are our results of operations on a GAAP basis:

	Three Months Ended
FINANCIAL SUMMARY	March 31,
(In millions)	2016		2015		% Change
Premiums	$	7,746	$	7,402	5	%
Fees and other revenues	1,201		1,138		6
Net investment income	272		276		(1)
Mail order pharmacy revenues	697		578		21
Consolidated operating revenues	9,916		9,394		6
Net realized investment gains (losses)	(32)		73		(144)
Total revenues	9,884		9,467		4
Global Health Care medical costs	4,761		4,604		3
Other benefit expenses	1,368		1,269		8
Mail order pharmacy costs	574		492		17
Operating expenses	2,321		2,204		5
Amortization of other acquired intangible assets, net	41		44		(7)
Total benefits and expenses	9,065		8,613		5
Income before taxes	819		854		(4)
Income taxes	305		323		(6)
Net income	514		531		(3)
Less: net (loss) attributable to noncontrolling interests	(5)		(2)		(150)
Shareholders’ net income	$	519	$	533	(3)	%

A reconciliation of shareholders’ net income to adjusted income from operations follows:

FINANCIAL SUMMARY	Three Months Ended
	March 31,				Change
(In millions)	2016		2015		Favorable (Unfavorable)
Shareholders’ net income	$	519	$	533	(3)	%
After-tax adjustments required to reconcile to adjusted income from operations:
Net realized investment (gains) losses	21		(48)
Amortization of other acquired intangible assets, net	25		28
Special items:
Merger-related transaction costs	36		-
Total special items	36		-
Adjusted income from operations	$	601	$	513	17	%
Other Key Consolidated Financial Data
Earnings per share (diluted):
Shareholders’ net income	$	2.00	$	2.04	(2)	%
After-tax adjustments required to reconcile to adjusted income from operations
Net realized investment (gains) losses	0.08		(0.18)
Amortization of other acquired intangible assets, net	0.10		0.10
Special items:
Merger-related transaction costs	0.14		-
Adjusted income from operations	$	2.32	$	1.96	18	%
Global medical customers (in thousands)	15,129		14,654		3	%
Effective tax rate	37.2%		37.8%		60	bps

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CONSOLIDATED RESULTS OF OPERATIONS

·    Revenues.  Most components of total revenues increased for the three months ended March 31, 2016 compared with the same period in 2015 as discussed further below.

·Premiums.  The increase reflects growth in each of our ongoing operating segments: Global Health Care, Global Supplemental Benefits and Group Disability and Life.  This favorable result is primarily attributable to customer growth in certain of our market segments and higher premium rates in our commercial health care businesses consistent with medical cost trend.

·Fees and other revenues.  The increase was largely the result of customer growth in our administrative services only business including contributions from specialty products offered through our Global Health Care segment.

·Net investment income was flat, reflecting lower investment yields from the continued low interest rate environment, offset by higher average invested assets.

·Mail order pharmacy revenues.  The increase was driven by higher volume, primarily for injectable medications, due to growth in our customer base.

·Realized investment results decreased due to the absence in 2016 of real estate partnership sales and, to a lesser extent, higher impairment losses.  See Note 8 for additional information.

·Global Health Care medical costs.  The increase for the three months ended March 31, 2016 compared with the same period in 2015, was primarily due to growth in our specialty businesses and, to a lesser extent, medical cost inflation.

·Other benefit expenses.  The increase for the three months ended March 31, 2016 compared with the same period in 2015, resulted primarily from unfavorable claims experience in the Group Disability and Life segment and business growth in the Group Disability and Life and Global Supplemental Benefits segments.

·Mail order pharmacy costs.  The increase for the three months ended March 31, 2016 compared with the same period in 2015, was driven by higher volume, primarily for injectable medications, due to growth in our customer base.

·Operating expenses.  The increase for the three months ended March 31, 2016 compared with the same period in 2015, was primarily the result of business growth, a special item charge (described below) and strategic investments across our segments.

·Special item.  The special item charge for the three months ended March 31, 2016 reflects the after-tax impact of legal, advisory and other transaction costs directly related to our proposed merger with Anthem ($40 million pre-tax, reported in operating expenses).  See Note 3 to the Consolidated Financial Statements for additional details.  There were no special items for the three months ended March 31, 2015.

·Effective tax rate.  The decrease in our effective tax rate for the three months ended March 31, 2016 compared with the same period in March 31, 2015, was largely driven by tax benefits associated with adopting ASU 2016-09 as discussed in Note 2 to the Consolidated Financial Statements, partially offset by certain merger-related transaction costs reported in 2016 that are not tax deductible.

45

LIQUIDITY AND CAPITAL RESOURCES

Liquidity

We maintain liquidity at two levels:  the subsidiary level and the parent company level.

Liquidity requirements at the subsidiary level generally consist of:

·medical costs and benefit payments to policyholders; and

·operating expense requirements, primarily for employee compensation and benefits.

Our subsidiaries normally meet their operating requirements by:

·maintaining appropriate levels of cash, cash equivalents and short-term investments;

·using cash flows from operating activities;

·selling investments;

·matching investment durations to those estimated for the related insurance and contractholder liabilities; and

·borrowing from affiliates, subject to applicable regulatory limits.

Liquidity requirements at the parent company level generally consist of:

·debt service and dividend payments to shareholders;

·pension plan funding; and

·repurchases of common stock.

The parent company normally meets its liquidity requirements by:

·maintaining appropriate levels of cash and various types of marketable investments;

·collecting dividends from its subsidiaries;

·using proceeds from issuance of debt and equity securities; and

·borrowing from its subsidiaries.

Cash flows for the three months ended March 31, were as follows:

(In millions)	2016		2015
Operating activities (1)	$	894	$	737
Investing activities	$	(333)	$	(49)
Financing activities (1)	$	(146)	$	530

(1) As required by the adoption of ASU 2016-09, the Company retrospectively reclassified $73 million of cash payments from operating to financing activities for the three months ended March 31, 2015.  These payments were related to employee tax obligations associated with stock compensation. The comparable amount reported in financing activities for the three months ended March 31, 2016 was $67 million.  See Note 2 for further discussion.

Cash flows from operating activities consist of cash receipts and disbursements for premiums, fees and other revenues, mail order pharmacy, investment income, taxes and benefits and expenses.  Because certain income and expense transactions do not generate cash, and because cash transactions related to revenues and expenses may occur in periods different from when those revenues and expenses are recognized in shareholders’ net income, cash flows from operating activities can significantly differ from shareholders’ net income.

Cash flows from investing activities generally consist of net investment purchases or sales and net purchases of property and equipment including capitalized internal-use software, as well as cash used to acquire businesses.

Cash flows from financing activities are generally comprised of issuances and re-payment of debt, proceeds on the issuance of common stock resulting from stock option exercises, and stock repurchases.  In addition, the subsidiaries report net deposits and withdrawals to and from contractholder deposit fund liabilities (that include universal life insurance liabilities) because such liabilities are considered financing activities with policyholders.

46

Operating activities

Cash provided by operating activities increased for the three months ended March 31, 2016 compared with the same period in 2015, as a result of higher adjusted income from operations and the timing of government reimbursements.

Investing activities

Cash used in investing activities increased for the three months ended March 31, 2016 compared with the same period in 2015, primarily due to a higher volume of purchases of fixed maturities.  The higher volume of asset purchases in the first quarter of 2016 was due in part to additional investment capacity resulting from lower share repurchases in the first quarter of 2016 and second half of 2015.

Financing activities

Cash used in financing activities increased for the three months ended March 31, 2016 compared with the same period in 2015, primarily due to the absence in the current year of the $0.9 billion in proceeds from issuance of long-term debt in March 2015, partially offset by lower share repurchases.

We maintain a share repurchase program, authorized by the Board of Directors.  Under this program, we may repurchase shares from time to time, depending on market conditions and alternate uses of capital.  We may suspend activity under our share repurchase program from time to time and may also remove such suspensions, generally without public announcement.  We may also repurchase shares at times when we otherwise might be precluded from doing so under insider trading laws or because of self-imposed trading black-out periods by use of a Rule 10b5-1 trading plan.

Through May 5, 2016, we had repurchased 0.8 million shares for $110 million under our share repurchase program.  The remaining share repurchase authority as of May 5, 2016 was $390 million.

Interest Expense

Interest expense on long-term debt, short-term debt and capital leases was as follows:

(In millions)	2016		2015
Interest expense	$	63	$	66

Capital Resources

Our capital resources (primarily retained earnings and the proceeds from the issuance of debt and equity securities) provide protection for policyholders, furnish the financial strength to underwrite insurance risks and facilitate continued business growth.

Management, guided by regulatory requirements and rating agency capital guidelines, determines the amount of capital resources that we maintain.  Management allocates resources to new long-term business commitments when returns, considering the risks, look promising and when the resources available to support existing business are adequate.

We prioritize our use of capital resources to:

·provide the capital necessary to support growth and maintain or improve the financial strength ratings of subsidiaries;

·consider acquisitions that are strategically and economically advantageous; and

·return capital to investors through share repurchase.

The availability of capital resources will be impacted by equity and credit market conditions.  Extreme volatility in credit or equity market conditions may reduce our ability to issue debt or equity securities.

47

Liquidity and Capital Resources Outlook

The availability of resources at the parent company level is partially dependent on dividends from our subsidiaries, most of which are subject to regulatory restrictions and rating agency capital guidelines, and partially dependent on the availability of liquidity from the issuance of debt or equity securities.

Though we believe that we have adequate sources of liquidity, significant disruption or volatility in the capital and credit markets could affect our ability to access those markets for additional borrowings or increase costs associated with borrowing funds.

At March 31, 2016, there was $2.0 billion in cash and marketable investments available at the parent company level.  For the remainder of 2016, the parent company’s combined cash obligations are expected to be approximately $295 million, primarily for commercial paper maturities and interest.  The parent company also has $250 million of debt obligations that will mature in the first quarter of 2017.

We expect, based on the parent company’s current cash position, current projections for subsidiary dividends, and the ability to refinance commercial paper borrowing, to have sufficient liquidity to meet the obligations discussed above.  In addition, we actively monitor our debt obligations and engage in issuance or redemption activities as needed in accordance with our capital management strategy.

Our cash projections may not be realized and the demand for funds could exceed available cash if our ongoing businesses experience unexpected shortfalls in earnings, or we experience material adverse effects from one or more risks or uncertainties described more fully in the Risk Factors section of the 2015 Form 10-K.  In those cases, we expect to have the flexibility to satisfy liquidity needs through a variety of measures, including intercompany borrowings and sales of liquid investments.  The parent company may borrow up to $1.3 billion from its insurance subsidiaries without additional state approval.  As of March 31, 2016, the parent company had approximately $55 million of net intercompany loans payable to its insurance subsidiaries.  Alternatively, to satisfy parent company liquidity requirements we may use short-term borrowings, such as the commercial paper program, the committed revolving credit and letter of credit agreement of up to $1.5 billion subject to the maximum debt leverage covenant in its line of credit agreement.  As of March 31, 2016, short-term borrowing capacity of $1.5 billion under the credit agreement was available to us.  Including this $1.5 billion, we have borrowing capacity of $8.3 billion, in addition to the $5.2 billion of debt outstanding, within the maximum debt leverage covenant in the line of credit agreement described in Note 12.

Though we believe we have adequate sources of liquidity, continued significant disruption or volatility in the capital and credit markets could affect our ability to access those markets for additional borrowings or increase costs associated with borrowing funds.

We maintain a capital management strategy to retain overseas a significant portion of the earnings from our foreign operations.  These undistributed earnings are deployed outside of the U.S. in support of the liquidity and capital needs of our foreign operations.  As of March 31, 2016, undistributed earnings were approximately $2.4 billion.  If repatriated, approximately $335 million of cash and cash equivalents held overseas would be subject to additional tax expense representing the difference between the U.S. and foreign tax rates.  This strategy does not materially limit our ability to meet our liquidity and capital needs in the U.S.  Cash and cash equivalents in foreign operations are held primarily to meet local liquidity and surplus needs with excess funds generally invested in longer duration, high quality securities.

Guarantees and Contractual Obligations

We are contingently liable for various contractual obligations entered into during the ordinary course of business.  See Note 16 to the Consolidated Financial Statements for additional information.

Contractual obligations.  We have updated our contractual obligations previously provided in our 2015 Form 10-K for the following item:

·Investment commitments: the Company has entered into new commitments to invest in security and real estate limited partnerships.  See Note 10 to the Consolidated Financial Statements for additional information.

			Less than 1		1-3		4-5		After 5
(In millions, on an undiscounted basis)	Total		year		years		years		years
Off-Balance Sheet
Purchase obligations	$	1,210	$	547	$	445	$	134	$	84

48

CRITICAL ACCOUNTING ESTIMATES

The preparation of Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts and related disclosures in the Consolidated Financial Statements.  We consider an accounting estimate to be critical if:

·it requires assumptions to be made that were uncertain at the time the estimate was made; and

·changes in the estimate or different estimates that could have been selected could have a material effect on our consolidated results of operations or financial condition.

We have discussed the development and selection of our critical accounting estimates and reviewed the disclosures presented in our 2015 Form 10-K with the Audit Committee of our Board of Directors.  We regularly evaluate items that may impact critical accounting estimates.

Our most critical accounting estimates, as well as the effects of hypothetical changes in material assumptions used to develop each estimate, are described in the 2015 Form 10-K.  As of March 31, 2016, there are no significant changes to the critical accounting estimates from what was reported in our 2015 Form 10-K.

Summary

Management believes the current assumptions used to estimate amounts reflected in our Consolidated Financial Statements are appropriate.  However, if actual experience differs from the assumptions used in estimating amounts reflected in our Consolidated Financial Statements, the resulting changes could have a material adverse effect on our consolidated results of operations, and in certain situations, could have a material adverse effect on liquidity and our financial condition.

SEGMENT REPORTING

The following section of this MD&A discusses the results of each of our reporting segments.  In these segment discussions, we present “operating revenues,” defined as total revenues excluding realized investment results.  We exclude realized investment results from this measure because our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment.  As a result, gains or losses created in this process may not be indicative of past or future underlying performance of the business.

We use “adjusted income from operations” as our principal financial measure of operating performance because management believes it best reflects the underlying results of our business operations and permits analysis of trends in underlying revenue, expenses and profitability.  We define adjusted income from operations as shareholders’ net income (loss) excluding after-tax realized investment gains and losses, net amortization of other acquired intangible assets and special items.  Ratios presented in this segment discussion exclude the same items as adjusted income from operations.  Income or expense amounts are excluded from adjusted income from operations for the following reasons:

·Realized investment results are excluded because, as noted above, our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment.

·Net amortization of other intangible assets is excluded because it relates to costs incurred for acquisitions and, as a result, it does not relate to the core performance of the Company’s business operations.

·Special items, if any, are excluded because management believes they are not representative of the underlying results of operations.  For the three months ended March 31, 2016, we reported a special item charge in Corporate consisting of $40 million of pre-tax costs ($36 million after-tax) related to the pending Anthem merger.  See Note 3 to the Consolidated Financial Statements for additional details.  There were no special items for the three months ended March 31, 2015.

In our segment results, we present “adjusted margin,” defined as adjusted income from operations divided by operating revenues.

See the MD&A Overview on page 40 for summarized financial results of each of our reporting segments.

49

Global Health Care Segment

As described in the Segment Reporting introduction on page 49, the performance of the Global Health Care segment is measured using adjusted income from operations as calculated in the table below.  The key factors affecting adjusted income from operations for this segment are:

·customer growth;

·sales of specialty products;

·operating expenses as a percentage of operating revenues (operating expense ratio); and

·medical costs as a percentage of premiums (medical care ratio or “MCR”) for our commercial and government businesses.

Results of Operations

	Three Months Ended
FINANCIAL SUMMARY	March 31,						Change
(In millions)	2016			2015			Favorable (Unfavorable)
Operating revenues	$	7,884		$	7,446		6	%
Adjusted income from operations	$	544		$	444		23	%
Adjusted margin	6.9		%	6.0		%	90bps
Medical Care Ratios:
Commercial	75.8		%	75.2		%	(60)bps
Government	86.2		%	89.4		%	320bps
Consolidated Global Health Care	80.0		%	80.9		%	90bps
Operating expense ratio	21.0		%	21.7		%	70bps
	As of March 31,
(In thousands)	2016			2015			% Change
Customers:
Total commercial risk	2,510			2,505			-	%
Total government	615			555			11
Total risk	3,125			3,060			2
Service	12,004			11,594			4
Total medical customers	15,129			14,654			3	%
	As of
(In millions)	March 31, 2016			December 31, 2015			% Change
Global Health Care medical costs payable	$	2,646		$	2,355		12	%

Adjusted income from operations.  The increase for the three months ended March 31, 2016 compared with the same period in 2015, is attributable to increased contributions from specialty products and higher margins in our Medicare Part D business, partially offset by increased operating expenses.

Operating revenues.  The increase for the three months ended March 31, 2016 compared with the same period in 2015, was primarily due to customer growth in our specialty businesses, including home delivery pharmacy, and in Medicare Advantage.  In addition, the increase reflects higher premium rates for most products in the U.S. commercial segment primarily to recover underlying medical cost trend.  These increases were partially offset by the effects of lower customer volumes in our Medicare Part D and Individual businesses.

Medical care ratios.  The commercial medical care ratio increased slightly for the three months ended March 31, 2016 compared with the same period in 2015, reflecting modestly higher medical costs including less favorable prior period claims development in our group commercial risk businesses, partially offset by lower medical costs in our individual book of business.

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For the three months ended March 31, 2016, the government medical care ratio decreased compared with the same period in 2015, primarily due to a lower Medicare Part D ratio reflecting product changes that increased premiums and customer deductibles.

Operating expense ratio.  The operating expense ratio decreased for the three months ended March 31, 2016 compared with the same period in 2015, reflecting higher revenue and operating efficiencies partially offset by business initiative investments.

Other Items Affecting Health Care Results

Medical Customers

A medical customer is defined as a person meeting any one of the following criteria:

·is covered under an insurance policy, managed care arrangement, or service agreement issued by us;

·has access to our provider network for covered services under their medical plan; or

·has medical claims that are administered by us.

Our medical customer base as of March 31, 2016 was higher than the same period in 2015, primarily driven by strong sales in our middle market, select and government segments.

Global Health Care Medical Costs Payable

Medical costs payable is higher at March 31, 2016 compared to December 31, 2015, due to customer growth and seasonality in government and stop loss products.  (See Note 5 to the Consolidated Financial Statements for additional information.)

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Global Supplemental Benefits Segment

As described in the Segment Reporting introduction on page 49, the performance of the Global Supplemental Benefits segment is measured using adjusted income from operations.  The key factors affecting adjusted income from operations for this segment are:

·premium growth, including new business and customer retention;

·benefit expenses as a percentage of premiums (loss ratio);

·operating expenses and acquisition expenses as a percentage of operating revenues (expense ratio and acquisition cost ratio); and

·the impact of foreign currency movements.

Throughout this discussion and the table presented below, prior period currency adjusted income from operations, revenues, and benefits and expenses are calculated by applying the current period’s exchange rates to reported results in the prior period.  A strengthening U.S. Dollar against foreign currencies decreases adjusted income from operations, while a weakening U.S. Dollar produces the opposite effect.

Results of Operations

	Three Months Ended
FINANCIAL SUMMARY	March 31,						Change
(In millions)	2016			2015			Favorable (Unfavorable)
Operating revenues	$	806		$	769		5	%
Adjusted income from operations	$	67		$	69		(3)	%
Operating revenues, using 2016 currency exchange rates	$	806		$	721		12	%
Adjusted income from operations, using 2016 currency exchange rates	$	67		$	63		6	%
Adjusted margin	8.3		%	9.0		%	(70)bps
Loss ratio	56.2		%	56.1		%	(10)bps
Acquisition cost ratio	18.4		%	18.7		%	30bps
Expense ratio (excluding acquisition costs)	18.2		%	17.0		%	(120)bps

Adjusted income from operations decreased for the three months ended March 31, 2016 compared with the same period in 2015, reflecting the unfavorable impact of foreign currency movements and higher strategic investments, largely offset by business growth.

Operating revenues increased for the three months ended March 31, 2016 compared with the same period in 2015, primarily due to new sales, particularly in South Korea and the U.S., partially offset by the unfavorable impact of foreign currency movements.

The segment loss ratio increased slightly for the three months ended March 31, 2016 compared with the same period in 2015, reflecting a change in business mix toward products with higher loss ratios in South Korea and the U.S., largely offset by favorable claims experience in South Korea.

The acquisition cost ratio decreased for the three months ended March 31, 2016 due to a shift toward higher premium products with lower acquisition costs, primarily in South Korea and the U.S.

The operating expense ratio (excluding acquisition costs) increased for the three months ended March 31, 2016 compared to the same period in 2015, reflecting strategic business investments, mainly in the U.S. and South Korea.

Other Items Affecting Global Supplemental Benefits Results

For our Global Supplemental Benefits segment, South Korea is the single largest geographic market.  South Korea generated 50% of the segment’s revenues and 95% of the segment’s earnings for the three months ended March 31, 2016.  For the three months ended March 31, 2016, our Global Supplemental Benefits segment operations in South Korea represented 4% of our total consolidated revenues and 11% of shareholders’ net income.

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Group Disability and Life Segment

As described in the Segment Reporting introduction on page 49, the performance of the Group Disability and Life segment is measured using adjusted income from operations.  The key factors affecting adjusted income from operations for this segment are:

·premium growth, including new business and customer retention;

·net investment income;

·benefit expenses as a percentage of premiums (loss ratio); and

·operating expenses as a percentage of premiums and fees and other revenues (expense ratio).

Results of Operations

	Three Months Ended
FINANCIAL SUMMARY	March 31,				Change
(In millions)	2016		2015		Favorable (Unfavorable)
Operating revenues	$	1,109	$	1,059	5	%
Adjusted income from operations	$	15	$	51	(71)	%
Adjusted margin	1.4%		4.8%		(340)	bps
Loss ratio	85.4%		80.9%		(450)	bps
Expense ratio	22.4%		21.8%		(60)	bps

Adjusted income from operations.  The decrease for the three months ended March 31, 2016 compared with the same period in 2015 was driven by unfavorable disability claims experience due primarily to a lower claim resolution rate.  We implemented modifications to our disability claims management process during the period to drive improved quality and consistency in this process, which extended the claims processing cycle in the quarter.  Management expects claims processing cycles to revert toward historical levels during the remainder of the year.

Operating revenues increased for the three months ended March 31, 2016 compared with the same period in 2015, reflecting business growth due to new sales and strong customer retention, partially offset by lower net investment income due to a decline in yields.

The segment’s loss ratio increased for the three months ended March 31, 2016 compared with the same period in 2015, driven by unfavorable disability claims experience as described above, partially offset by improved life new claim incidence.

Operating expense ratio.  The operating expense ratio increased for the three months ended March 31, 2016 compared with the same period in 2015, reflecting higher claim management costs and technology spending.

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Other Operations

As described in the Segment Reporting introduction on page 49, the performance of the Other Operations segment is measured using adjusted income from operations.  Cigna’s corporate-owned life insurance (“COLI”) business contributes the majority of earnings in Other Operations.  Other Operations also includes the results from the run-off reinsurance and settlement annuity businesses, as well as the remaining deferred gains recognized from the sale of the individual life insurance and annuity and retirement benefits businesses.

Results of Operations

	Three Months Ended
FINANCIAL SUMMARY	March 31,				Change
(In millions)	2016		2015		Favorable (Unfavorable)
Operating revenues	$	117	$	124	(6)	%
Adjusted income from operations	$	20	$	20	-	%
Adjusted margin	17.1%		16.1%		(100)	bps

Adjusted income from operations was flat for the three months ended March 31, 2016 compared with the same period in March 31, 2015, primarily due to favorable claims experience and strong persistency in COLI, offset by lower deferred gain amortization from the sold businesses.

Operating revenues  decreased for the three months ended March 31, 2016 compared with the same period in March 31, 2015, due to lower premiums in COLI driven by favorable experience-rating impacts and, to a lesser extent, lower investment income yields and  lower deferred gain amortization from the sold businesses.

Corporate

Description

Corporate reflects amounts not allocated to operating segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options, expense associated with our frozen pension plans and certain  overhead and project costs.

	Three Months Ended
FINANCIAL SUMMARY	March 31,
(In millions)	2016		2015		% Change
Adjusted loss from operations	$	(45)	$	(71)	37	%

Corporate’s adjusted loss from operations was lower for the three months ended March 31, 2016 compared with the same period in 2015, mainly due to adopting ASU 2016-09 as further discussed in Note 2 to the Consolidated Financial Statements.

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INVESTMENT ASSETS

The following table presents our invested asset portfolio, excluding separate account assets, as of March 31, 2016 and December 31, 2015.  Additional information regarding our investment assets and related accounting policies is included in Notes 7, 8, 9, 10 and 13 to the Consolidated Financial Statements.

	March 31,		December 31,
(In millions)	2016		2015
Fixed maturities	$	20,087	$	19,455
Equity securities	194		190
Commercial mortgage loans	1,848		1,864
Policy loans	1,419		1,419
Other long-term investments	1,434		1,404
Short-term investments	465		381
Total	$	25,447	$	24,713

Fixed Maturities

Investments in fixed maturities include publicly traded and privately placed debt securities, mortgage and other asset-backed securities and preferred stocks redeemable by the investor.  These investments are classified as available for sale and are carried at fair value on our balance sheet.  Additional information regarding valuation methodologies, key inputs and controls is included in Note 7 to the Consolidated Financial Statements.  More detailed information about fixed maturities by type of issuer, maturity dates, and, for mortgages, by debt service coverage and loan-to-value ratios is included in Note 8 to the Consolidated Financial Statements and Note 11 to the Consolidated Financial Statements in our 2015 Form 10-K.

The following table reflects our fixed maturity portfolio by type of issuer as of March 31, 2016 and December 31, 2015:

	March 31,		December 31,
(In millions)	2016		2015
Federal government and agency	$	752	$	779
State and local government	1,603		1,641
Foreign government	2,072		2,014
Corporate	15,067		14,448
Mortgage-backed	41		49
Other asset-backed	552		524
Total	$	20,087	$	19,455

The fixed maturity portfolio increased modestly during the three months ended March 31, 2016, reflecting increased valuations due to the impact of decreased market yields.  Although overall asset values are well in excess of amortized cost, there are specific securities with amortized cost in excess of fair value by $141 million in aggregate as of March 31, 2016.  See Note 8 to the Consolidated Financial Statements for further information.

As of March 31, 2016, $18.0 billion, or 89%, of the fixed maturities in our investment portfolio were investment grade (Baa and above, or equivalent), and the remaining $2.1 billion were below investment grade.  The majority of the bonds that are below investment grade are rated at the higher end of the non-investment grade spectrum.  These quality characteristics have not materially changed since December 31, 2015.

Our investment in state and local government securities, with an average quality rating of Aa2 is diversified by issuer and geography with no single exposure greater than $30 million.  We assess each issuer’s credit quality based on a fundamental analysis of underlying financial information and do not rely solely on statistical rating organizations or monoline insurer guarantees.

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We invest in high quality foreign government obligations, with an average quality rating of Aa3 as of March 31, 2016.  These investments are primarily concentrated in Asia consistent with the geographic distribution of our international business operations.  Foreign government obligations also include $206 million of investments in European sovereign debt, none of which are in countries with significant political or economic concerns (Portugal, Italy, Ireland, Greece and Spain).

As of March 31, 2016, corporate fixed maturities include private placement investments of $5.3 billion that are generally less marketable than publicly-traded bonds.  However, yields on these investments tend to be higher than yields on publicly-traded bonds with comparable credit risk.  We perform a credit analysis of each issuer, diversify investments by industry and issuer and require financial and other covenants that allow us to monitor issuers for deteriorating financial strength and pursue remedial actions, if warranted.  Corporate fixed maturities include $344 million of investments in companies that are domiciled or have significant business interests in Italy, Ireland and Spain.  These investments have an average quality rating of Baa3 and are diversified by industry sector, including approximately 3% invested in financial institutions.  Corporate fixed maturities also include investments in the energy and natural gas sector of $1.6 billion with gross unrealized losses of $48 million.  These investments have an average quality rating of Baa1 and are diversified by issuer with no single exposure greater than $35 million.

We have approximately $25 million of aggregate corporate fixed maturity investment in China-based companies.  In addition to amounts classified in fixed maturities on our Consolidated Balance Sheet, we operate a joint venture in China in which we have a 50% ownership interest.  We account for this joint venture on the equity basis of accounting and report it in other assets, including other intangibles.  This entity has an investment portfolio of approximately $2.5 billion that is primarily invested in diversified corporate fixed maturities and has no investments with a material unrealized loss as of March 31, 2016.

Commercial Mortgage Loans

Our commercial mortgage loans are fixed rate loans, diversified by property type, location and borrower.  Loans are secured by high quality commercial properties and are generally made at less than 70% of the property’s value at origination of the loan.  Property value, debt service coverage, quality, building tenancy and stability of cash flows are all important financial underwriting considerations.  We hold no direct residential mortgage loans and do not securitize or service mortgage loans.

We completed an annual in-depth review of our commercial mortgage loan portfolio during the second quarter of 2015.  This review included an analysis of each property’s year-end 2014 financial statements, rent rolls, operating plans and budgets for 2015, a physical inspection of the property and other pertinent factors.  Based on property values and cash flows estimated as part of this review and subsequent fundings and repayments, the portfolio’s average loan-to-value ratio remained at 58% and the portfolio’s average debt service coverage ratio remained at 1.78 at  March 31, 2016 when compared to December 31, 2015.  See Note 8 to the Consolidated Financial Statements for further information.

Commercial real estate capital markets remain very active for well-leased, quality commercial real estate located in strong institutional investment markets.  The vast majority of properties securing the mortgages in our mortgage loan portfolio possess these characteristics.

The $1.8 billion commercial mortgage loan portfolio consists of approximately 65 loans.  The portfolio includes three impaired loans with a carrying value totaling $96 million, net of $15 million in reserves, that are classified as problem or potential problem loans.  We have $242 million of loans maturing in the next twelve months.  Given the quality and diversity of the underlying real estate, positive debt service coverage and significant borrower cash investment or equity value averaging 30%, we remain confident that borrowers will continue to perform as expected under their contract terms.

Other Long-term Investments

Other long-term investments of $1.4 billion primarily include investments in security partnership and real estate funds as well as direct investments in real estate joint ventures.  The funds typically invest in mezzanine debt or equity of privately held companies (securities partnerships) and equity real estate.  Given our subordinate position in the capital structure of these underlying entities, we assume a higher level of risk for higher expected returns.  To mitigate risk, investments are diversified across approximately 110 separate partnerships, and approximately 70 general partners who manage one or more of these partnerships.  Also, the funds’ underlying investments are diversified by industry sector or property type, and geographic region.  No single partnership investment exceeds 6% of our securities and real estate partnership portfolio.

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Problem and Potential Problem Investments

“Problem” bonds and commercial mortgage loans are either delinquent by 60 days or more or have been restructured as to terms, including concessions by us to modify the interest rate, principal payment or maturity date.  “Potential problem” bonds and commercial mortgage loans are considered current (no payment is more than 59 days past due), but management believes they have certain characteristics that increase the likelihood that they may become problems.  The characteristics management considers include, but are not limited to, the following:

·request from the borrower for restructuring;

·principal or interest payments past due by more than 30 but fewer than 60 days;

·downgrade in credit rating;

·collateral losses on asset-backed securities; and

·for commercial mortgages, deterioration of debt service coverage below 1.0 or value declines resulting in estimated loan-to-value ratios increasing to 100% or more.

We recognize interest income on problem bonds and commercial mortgage loans only when payment is actually received because of the risk profile of the underlying investment.  The amount that would have been reflected in net income if interest on non-accrual investments had been recognized in accordance with the original terms was not significant for the three months ended March 31, 2016 or 2015.

The following table shows problem and potential problem investments at amortized cost, net of valuation reserves and write-downs:

	March 31, 2016						December 31, 2015
(In millions)	Gross		Reserve		Net		Gross		Reserve		Net
Problem bonds	$	14	$	(12)	$	2	$	3	$	(1)	$	2
Problem commercial mortgage loans		88		(11)		77		90		(11)		79
Total problem investments	$	102	$	(23)	$	79	$	93	$	(12)	$	81
Potential problem bonds	$	54	$	(33)	$	21	$	55	$	(23)	$	32
Potential problem commercial mortgage loans		64		(4)		60		64		(4)		60
Total potential problem investments	$	118	$	(37)	$	81	$	119	$	(27)	$	92

Investment Outlook

Global financial markets have exhibited continued volatility during the first quarter reflecting global economic uncertainty, led by concerns about China’s decelerating economic growth as well as the negative and potentially destabilizing impacts from cyclically low energy prices.  Future realized and unrealized investment results will be driven largely by market conditions that exist when a transaction occurs or at the reporting date.  These future conditions are not reasonably predictable.  We believe that the vast majority of our fixed maturity investments will continue to perform under their contractual terms and that the commercial mortgage loan portfolio is positioned to perform well due to its solid aggregate loan-to-value ratio and strong debt service coverage.  Based on our strategy to match the duration of invested assets to the duration of insurance and contractholder liabilities, we expect to hold a significant portion of these assets for the long term.  Although future impairment losses resulting from interest rate movements and credit deterioration due to both company-specific and the global economic uncertainties discussed above remain possible, we do not expect these losses to have a material adverse effect on our financial condition or liquidity.

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MARKET RISK

Financial Instruments

Our assets and liabilities include financial instruments subject to the risk of potential losses from adverse changes in market rates and prices.  Our primary market risk exposures are interest-rate risk and foreign currency exchange rate risk.  Certain financial instruments, such as insurance-related assets and liabilities, are excluded from these hypothetical calculations.  We encourage you to read this in conjunction with “Market Risk – Financial Instruments” included in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2015.

The loss in fair value of a hypothetical 100 basis point increase in interest rates for certain financial instruments increased from approximately $865 million at December 31, 2015 to approximately $915 million at March 31, 2016.  The increased interest rate sensitivity results primarily from increased asset purchases and valuation increases resulting from lower market yields of fixed maturities during the three months ended March 31, 2016.

Our foreign operations hold investment assets, such as fixed maturities, cash, and cash equivalents, that are generally invested in the currency of the related liabilities.  Due to an increase in the amount of these investments during the three months ended March 31, 2016 that are primarily denominated in the South Korean won, the loss in fair value of a hypothetical 10% strengthening in the U.S. dollar to foreign currencies increased from approximately $340 million at December 31, 2015 to approximately $385 million at March 31, 2016.

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Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information responsive to this item is contained under the caption “Market Risk” in Item 2 above, Management’s Discussion and Analysis of Financial Condition and Results of Operations.

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Item 4.CONTROLS AND PROCEDURES

Based on an evaluation of the effectiveness of Cigna’s disclosure controls and procedures conducted under the supervision and  with the participation of Cigna’s management, Cigna’s Chief Executive Officer and Chief Financial Officer concluded that, as of the  end of the period covered by this report, Cigna’s disclosure controls and procedures are effective to ensure that information required to  be disclosed by Cigna in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated  to Cigna’s management, including Cigna’s Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely  decisions regarding required disclosure.

During the period covered by this report, there have been no changes in Cigna’s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, Cigna’s internal control over financial reporting.

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 Part II.  OTHER INFORMATION

Item 1.LEGAL PROCEEDINGS

The information contained under “Litigation Matters”, “Regulatory Matters” and “Other Legal Matters” in Note 16 to the Consolidated Financial Statements is incorporated herein by reference.

61

Item 1A.RISK FACTORS

Cigna’s Annual Report on Form 10-K for the year ended December 31, 2015 includes a detailed description of its risk factors.

62

Item 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c)  Purchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table provides information about Cigna’s share repurchase activity for the quarter ended March 31, 2016:

Issuer Purchases of Equity Securities

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, 2016	805,518	$140.21	784,742	$                389,765,351
February 1-29, 2016	327,289	$141.59	-	$                389,765,351
March 1-31, 2016	134,536	$139.29	-	$                389,765,351
Total	1,267,343	$140.47	784,742	N/A

(1)Includes shares tendered by employees as payment of taxes withheld on the vesting of restricted stock and strategic performance shares granted under the Company’s equity compensation plans.  Employees tendered 20,776 shares in January, 327,289 shares in February and 134,536 shares in March 2016.

(2)Cigna has had a repurchase program for many years, and has had varying levels of repurchase authority and activity under this program.  The program has no expiration date.  Cigna suspends activity under this program from time to time and also removes such suspensions, generally without public announcement.  Remaining authorization under the program was approximately $390 million as of May 5, 2016.

(3)Approximate dollar value of shares is as of the last date of the applicable month.

Item 4.MINE SAFETY DISCLOSURES

Not applicable.

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Item 6.EXHIBITS

(a)See Exhibit Index

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Cigna Corporation
Date:	May 6, 2016
By:	/s/ Thomas A. McCarthy
	Thomas A. McCarthy
	Executive Vice PresidentChief Financial Officer
	(Duly Authorized Officer and Principal Financial Officer)

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INDEX TO EXHIBITS

Number	Description	Method of Filing
3.1	Restated Certificate of Incorporation of the registrant as last amended October 28, 2011	Filed as Exhibit 3.1 to the registrant’s Form 10-Q for the quarterly period ended September 30, 2011 and incorporated herein by reference.
3.2	By-Laws of the registrant as last amended and restated December 6, 2012	Filed as Exhibit 3.2 to the registrant’s Form 10-K for the year ended December 31, 2012 and incorporated herein by reference.
12	Computation of Ratios of Earnings to Fixed Charges	Filed herewith.
31.1	Certification of Chief Executive Officer of Cigna Corporation pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934	Filed herewith.
31.2	Certification of Chief Financial Officer of Cigna Corporation pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934	Filed herewith.
32.1	Certification of Chief Executive Officer of Cigna Corporation pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350	Furnished herewith.
32.2	Certification of Chief Financial Officer of Cigna Corporation pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350	Furnished herewith.
101	Financial statements from the quarterly report on Form 10-Q of Cigna Corporation for the quarter ended  March 31, 2016 formatted in 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.

Shareholders may obtain copies of exhibits by writing to Cigna Corporation, Shareholder Services Department, 1601 Chestnut Street, Philadelphia, PA  19192.

E-1

EX-12

Exhibit 12

Cigna Corporation

Computation Of Ratio Of Earnings To Fixed Charges

	Three Months Ended
	March 31,
(Dollars in millions)	2016		2015
Income before income taxes	$	819	$	854
Adjustments:
Income from equity investees, net of distributions	1		6
Loss attributable to noncontrolling interests	5		2
Income before income taxes, as adjusted	$	825	$	862
Fixed charges included in income:
Interest expense	$	63	$	66
Interest portion of rental expense	13		13
Total fixed charges included in income	$	76	$	79
Income available for fixed charges	$	901	$	941
RATIO OF EARNINGS TO FIXED CHARGES:	11.9		11.9

EX-31.1

Exhibit 31.1  CERTIFICATION

I, DAVID M. CORDANI, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Cigna Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ David M. Cordani
	Chief Executive Officer
Date:	May 6, 2016

EX-31.2

Exhibit 31.2  CERTIFICATION

I, THOMAS A. MCCARTHY, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Cigna Corporation;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ Thomas A. McCarthy
	Chief Financial Officer
Date:	May 6, 2016

EX-32.1

Exhibit 32.1 Certification of Chief Executive Officer of Cigna Corporation pursuant to 18 U.S.C. Section 1350

I certify that, to the best of my knowledge and belief, the Quarterly Report on Form 10-Q of Cigna Corporation for the fiscal period ended March 31, 2016 (the “Report”):

(1)complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Cigna Corporation.

/s/ David M. Cordani

David M. Cordani

Chief Executive Officer

May 6, 2016

EX-32.2

Exhibit 32.2 Certification of Chief Financial Officer of Cigna Corporation pursuant to 18 U.S.C. Section 1350

I certify that, to the best of my knowledge and belief, the Quarterly Report on Form 10-Q of Cigna Corporation for the fiscal period ended March 31, 2016 (the “Report”):

(1)complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Cigna Corporation.

/s/ Thomas A. McCarthy

Thomas A. McCarthy

Chief Financial Officer

May 6, 2016

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Document and Entity Information - $ / shares	3 Months Ended
	Mar. 31, 2016	Apr. 15, 2016	Dec. 31, 2015
Document Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Entity Registrant Name	CIGNA Corporation
Entity Central Index Key	0000701221
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Trading Symbol	CI
Entity Common Stock Shares Outstanding		256,513,083
Amendment Flag	false
Entity Current Reporting Status	Yes
Entity Well Known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Common stock, par value per share	$ 0.25		$ 0.25

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Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Premiums	$ 7,746	$ 7,402
Fees and other revenues	1,201	1,138
Net investment income	272	276
Mail order pharmacy revenues	697	578
Realized investment gains (losses):
Other-than-temporary impairments on debt securities	(27)	(5)
Other realized investment gains (losses), net	(5)	78
Net realized investment gains (losses)	(32)	73
Total revenues	9,884	9,467
Benefits and Expenses
Global Health Care medical costs	4,761	4,604
Other benefit expenses	1,368	1,269
Mail order pharmacy costs	574	492
Other operating expenses	2,321	2,204
Amortization of other acquired intangible assets, net	41	44
Total benefits and expenses	9,065	8,613
Income before Income Taxes	819	854
Income taxes (benefits):
Current	294	308
Deferred	11	15
Total income taxes	305	323
Net Income	514	531
Less: Net Income (Loss) Attributable to Noncontrolling Interests	(5)	(2)
Shareholders' Net Income	$ 519	$ 533
Shareholders' Net Income Per Share:
Basic	$ 2.04	$ 2.08
Diluted	2.00	2.04
Dividends Declared Per Share	$ 0.04	$ 0.04

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Consolidated Statements of Shareholders' Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Comprehensive Income [Abstract]
Shareholders' Net Income	$ 519	$ 533
Shareholders' other comprehensive income (loss):
Net unrealized appreciation (depreciation) on securities	173	88
Net unrealized appreciation (depreciation), derivatives	(3)	7
Net translation of foreign currencies	81	(104)
Postretirement benefits liability adjustment	11	11
Shareholders' other comprehensive income (loss)	262	2
Shareholders' comprehensive income (loss)	$ 781	$ 535

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Consolidated Statements of Total Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Comprehensive Income [Abstract]
Shareholders' comprehensive income (loss)	$ 781	$ 535
Net income (loss) attributable to redeemable noncontrolling interests	(1)	0
Net income (loss) attributable to other noncontrolling interests	(4)	(2)
Other comprehensive income (loss) attributable to redeemable noncontrolling interests	3	(9)
Total comprehensive income	$ 779	$ 524

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Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Investments [Abstract]
Fixed maturities, at fair value (amortized cost, $18,684; $18,456)	$ 20,087	$ 19,455
Equity securities, at fair value (cost, $193; $190)	194	190
Commercial Mortgage Loans	1,848	1,864
Policy loans	1,419	1,419
Other long-term investments	1,434	1,404
Short-term investments	465	381
Total investments	25,447	24,713
Cash and cash equivalents	2,401	1,968
Premiums, accounts and notes receivable, net	3,956	3,694
Reinsurance recoverables	6,725	6,813
Deferred policy acquisition costs	1,743	1,659
Property and equipment	1,534	1,534
Deferred tax assets, net	276	379
Goodwill	6,029	6,019
Other assets, including other intangibles	2,788	2,476
Separate account assets	7,985	7,833
Total assets	58,884	57,088
Liabilities:
Contractholder deposit funds	8,455	8,443
Future policy benefits	9,735	9,479
Unpaid claims and claim expenses	4,724	4,574
Global Health Care medical costs payable	2,646	2,355
Unearned premiums	646	629
Total insurance and contractholder liabilities	26,206	25,480
Accounts payable, accrued expenses and other liabilities	6,746	6,493
Short-term debt	399	149
Long-term debt	4,791	5,020
Separate account liabilities	7,985	7,833
Total liabilities	$ 46,127	$ 44,975
Contingencies - Note 16
Redeemable noncontrolling interests	$ 73	$ 69
Shareholders' Equity
Common stock (par value per share, $0.25; shares issued, 296; authorized, 600)	74	74
Additional paid-in capital	2,874	2,859
Accumulated other comprehensive loss	(988)	(1,250)
Retained earnings	12,541	12,121
Less treasury stock, at cost	(1,826)	(1,769)
Total shareholders' equity	12,675	12,035
Noncontrolling interests	9	9
Total equity	12,684	12,044
Total liabilities and equity	$ 58,884	$ 57,088
Shareholders' Equity Per Share	$ 49.41	$ 46.91

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Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Millions, $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets
Fixed maturities, at amortized cost	$ 18,684	$ 18,456
Equity securities, at cost	$ 193	$ 190
Common stock, par value per share	$ 0.25	$ 0.25
Common stock shares issued	296	296
Common stock shares authorized	600	600

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Statement of Changes in Total Equity - USD ($) $ in Millions	Total	Shareholders' Equity [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
Total Equity, beginning of period at Dec. 31, 2014	$ 10,789	$ 10,774	$ 74	$ 2,769	$ (936)	$ 10,289	$ (1,422)	$ 15
Increase (Decrease) In Stockholders Equity [Roll Forward]
Effect of issuing stock for employee benefit plans	62	62		55		(177)	184
Other comprehensive income (loss)	2	2			2
Net income (loss)	531	533				533		$ (2)
Common dividends declared (per share: $0.04)	(10)	(10)				(10)
Repurchase of common stock	(418)	(418)					(418)
Other transactions impacting noncontrolling interest	2	(1)		(1)				3
Total Equity, end of period at Mar. 31, 2015	10,958	10,942	74	2,823	(934)	10,635	(1,656)	16
Beginning Balance at Dec. 31, 2014	90
Redeemable Noncontrolling Interest [Roll Forward]
Other comprehensive income (loss)	$ (9)
Net income (loss)
Other transactions impacting noncontrolling interest	$ 2
Ending Balance at Mar. 31, 2015	83
Total Equity, beginning of period at Dec. 31, 2015	12,044	12,035	74	2,859	(1,250)	12,121	(1,769)	$ 9
Increase (Decrease) In Stockholders Equity [Roll Forward]
Effect of issuing stock for employee benefit plans	(15)	(15)		21		(89)	53
Other comprehensive income (loss)	262	262			262
Net income (loss)	515	519				519		$ (4)
Common dividends declared (per share: $0.04)	(10)	(10)				(10)
Repurchase of common stock	(110)	(110)					(110)
Other transactions impacting noncontrolling interest	(2)	(6)		(6)				4
Total Equity, end of period at Mar. 31, 2016	12,684	$ 12,675	$ 74	$ 2,874	$ (988)	$ 12,541	$ (1,826)	$ 9
Beginning Balance at Dec. 31, 2015	69
Redeemable Noncontrolling Interest [Roll Forward]
Other comprehensive income (loss)	3
Net income (loss)	(1)
Other transactions impacting noncontrolling interest	2
Ending Balance at Mar. 31, 2016	$ 73

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Consolidated Statements of Cash Flows - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities
Net Income		$ 514	$ 531
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		158	151
Realized investment (gains) losses		32	(73)
Deferred income taxes		11	15
Net changes in assets and liabilities, net of non-operating effects:
Premiums, accounts and notes receivable		(237)	(549)
Reinsurance recoverables		24	(11)
Deferred policy acquisition costs		(62)	(76)
Other assets		(57)	(101)
Insurance liabilities		507	455
Accounts payable, accrued expenses and other liabilities		(263)	157
Current income taxes		262	221
Other, net	[1]	5	17
Net cash provided by (used in) operating activities	[1]	894	737
Proceeds from investments sold:
Fixed maturities and equity securities		361	393
Investment maturities and repayments:
Fixed maturities and equity securities		255	284
Commercial mortgage loans		18	166
Other sales, maturities and repayments (primarily short-term and other long-term investments)		102	488
Investments purchased or originated:
Fixed maturities and equity securities		(758)	(648)
Commercial mortgage loans		(1)	(90)
Other (primarily short-term and other long-term investments)		(198)	(420)
Property and equipment purchases		(112)	(115)
Acquisitions, net of cash acquired		0	(107)
Net cash provided by (used in) investing activities		(333)	(49)
Cash Flows from Financing Activities
Deposits and interest credited to contractholder deposit funds		383	386
Withdrawals and benefit payments from contractholder deposit funds		(343)	(361)
Net change in short-term debt		(6)	(5)
Net proceeds on issuance of long-term debt		0	894
Repurchase of common stock		(139)	(413)
Issuance of common stock		10	99
Other, net	[1]	(51)	(70)
Net cash provided by (used in) financing activities	[1]	(146)	530
Effect of foreign currency rate changes on cash and cash equivalents		18	(18)
Net increase (decrease) in cash and cash equivalents		433	1,200
Cash and cash equivalents, January 1		1,968	1,420
Cash and cash equivalents, March 31		2,401	2,620
Supplemental Disclosure of Cash Information:
Income taxes paid, net of refunds		37	49
Interest paid		$ 69	$ 69

[1] As required by the adoption of ASU 2016-09, the Company retrospectively reclassified $73 million of cash payments from operating to financing activities for the three months ended March 31, 2015. These payments were related to employee tax obligations associated with stock compensation. The comparable amount reported in financing activities for the three months ended March 31, 2016 was $67 million. See Note 2 for further discussion.

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Basis of Presentation

3 Months Ended

Mar. 31, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of presentation

Note 1– Basis of Presentation and Significant Events

Basis of Presentation

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 dedicated to a mission of helping individuals improve their health, well-being and sense of security. To execute on our mission, Cigna's strategy is to “Go Deep”, “Go Global” and “Go Individual” with a differentiated set of medical, dental, disability, life and accident insurance and related products and services offered by our insurance and other subsidiaries. The majority of these products are offered through employers and other groups (e.g. 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 U.S. and selected international markets. In addition to its ongoing operations described above, Cigna also has certain run-off operations.

The Consolidated Financial Statements include the accounts of Cigna Corporation and its 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 valuation, 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. Certain reclassifications have been made to prior year amounts to conform to the current presentation. See Note 2 for further discussion.

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 Company's 2015 Form 10-K.The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates. This and certain other factors, including the seasonal nature of portions of the health care and related benefits business as well as competitive and other market conditions, call for caution in estimating full year results based on interim results of operations.

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Recent Accounting Changes

3 Months Ended

Mar. 31, 2016

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Changes

Note 2 – Recent Accounting Changes

The Company's 2015 Form 10-K includes discussion of significant recent accounting changes that either have impacted or may impact our financial statements in the future. The following issuances of, and changes in, accounting pronouncements that apply to the Company have occurred since the Company filed its 2015Form 10-K.

Recently Adopted Accounting Guidance

Amendments to the Consolidation Analysis (Accounting Standards Update (“ASU”) 2015-02). The Company adopted this new consolidation guidance effective January 1, 2016 with no material effect on its financial statements. Among other provisions, the guidance defines limited partnerships as VIEs unless substantive kick-out rights or participating rights exist. See Note 10 for additional disclosures about various real estate and security limited partnerships that are newly identified as variable interest entities for which the Company is not the primary beneficiary.

Improvements to Employee Share-Based Payment Accounting (ASU 2016-09).In March 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance that changes the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled, requires cash flows related to the excess tax benefits to be classified as an operating activity in the statement of cash flows, permits repurchasing more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee's behalf for withheld shares are to be presented as a financing activity in the statement of cash flows, and provides an accounting policy election to account for forfeitures as they occur. In addition, the new guidance changes the calculation of common stock equivalents for earnings per share purposes.  The new standard is required to be adopted as of January 1, 2017.

As permitted, the Company elected to early adopt the new guidance effective January 1, 2016.  Adopting this new guidance resulted in $23 million of tax benefits recorded in net income in the first quarter of 2016 in Corporate that previously would have been reported in additional paid-in capital.  The change in the calculation of common stock equivalents added approximately one million weighted average shares for the diluted earnings per share calculations.  The Company applied these provisions prospectively.

The Company applied the provisions of the new guidance related to the presentation of employee taxes paid for withheld shares retrospectively that resulted in reclassifying $73 million of tax withholding from operating to financing activities in its Consolidated Statement of Cash Flows for the three months ended March 31, 2015.  For the three months ended March 31, 2016, the Company reflected $67 million of tax withholding in financing activities.  The ability under the new guidance to repurchase more employee shares for tax withholding purposes had no impact on the Company's financial statements.  The Company elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period.

Disclosures for Investments in CertainEntities That Calculate Net Asset Value perShare (or Its Equivalent) (ASU 2015-07). This amendment removed the requirement to categorize all investments for which fair value is measured using the practical expedient of net asset value (“NAV”) per share within the fair value hierarchy. The Company adopted this new guidance effective January 1, 2016. Upon adoption, the Company began to separately disclose certain Separate Account investments and provided comparable prior period disclosure. See Note 7 for this separate disclosure information.

Recently Issued Accounting Guidance Not Yet Adopted

Revenue from Contracts with Customers (ASU 2014-09). During 2016, the Financial Accounting Standards Board (“FASB”) has issued two new ASUs further clarifying the broader revenue guidance: 1) “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (ASU 2016-08) that clarifies the definition of principals and agents and 2)  “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing” (ASU 2016-10) that clarifies guidance and adds examples to help companies properly identify performance obligations.  This ASU also illustrates when a license provides a customer with a right to use (point in time) versus a right to access (over time) benefit.

These clarifications, together with the broader revenue recognition guidance within ASU 2014-09, are required to be adopted beginning January 1, 2018.  The Company continues to monitor developing implementation guidance and evaluate these new requirements for its non-insurance customer contracts to determine its method and timing of implementation and any resulting estimated effects on its financial statements.

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Mergers and Acquisitions

3 Months Ended

Mar. 31, 2016

Acquisitions and Dispositions [Abstract]

Acquisitions and Dispositions

Note 3 – Mergers and Acquisitions

Proposed Merger

On July 23, 2015, the Company entered into a merger agreement with Anthem, Inc. (“Anthem”) and Anthem Merger Sub Corp. (“Merger Sub”), a direct wholly-owned subsidiary of Anthem. The merger agreement provides (a) for the merger of the Company and Merger Sub, with the Company continuing as the surviving corporation and (b) if certain tax opinions are delivered, immediately following the completion of the initial merger, for the surviving corporation to be merged with and into Anthem, with Anthem continuing as the surviving corporation (collectively, the “merger”). Subject to certain terms, conditions, and customary operating covenants, each share of Cigna common stock issued and outstanding immediately prior to the effective time of the merger will be converted into the right to receive (a) $103.40 in cash, without interest, and (b) 0.5152 of a share of Anthem common stock. The closing price of Anthem common stock on May 5, 2016 was $137.07.

At special shareholders' meetings held in December 2015, Cigna shareholders approved the merger and Anthem shareholders approved the issuance of shares of Anthem common stock in connection with the merger. Completing the merger remains subject to certain customary conditions, including the receipt of certain necessary governmental and regulatory approvals and the absence of a legal restraint prohibiting the merger. Completing the merger is not subject to a financing condition.

If the merger agreement is terminated under certain circumstances, Anthem will be required to pay Cigna a termination fee of $1.85 billion. Anthem's obligation to pay the termination fee arises if the merger agreement is terminated because: (1) a governmental entity, such as the Department of Justice or a state Department of Insurance, has prevented the merger for regulatory reasons and that decision is final and non-appealable; or (2) the merger has not closed by January 31, 2017 (subject to extension to April 30, 2017 under certain circumstances) only because all necessary regulatory approvals have not been received.

The merger agreement contains customary covenants, including covenants that Cigna conduct its business in the ordinary course during the period between entering into the merger agreement and closing. In addition, Cigna's ability to take certain actions prior to closing without Anthem's consent is subject to certain limitations. These limitations relate to, among other matters, the payment of dividends, capital expenditures, the payment or retirement of indebtedness or the incurrence of new indebtedness, settlement of material claims or proceedings, mergers or acquisitions, and certain employment-related matters.

While the Company continues to work toward achieving regulatory approval as quickly as possible and to target a closing date in the second half of 2016, the closing will ultimately be subject to the approval and timing of the regulators. In light of the complexity of the regulatory process and the dynamic environment, it is possible that such approvals may not be obtained in 2016.

During the three months ended March 31, 2016, the Company incurred $40 million pre-tax ($36 million after-tax) in costs directly related to the proposed merger. These costs primarily consisted of fees for legal, advisory and other professional services.

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Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Note 4–Earnings Per Share (“EPS”)

Basic and diluted earnings per share were computed as follows:

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended March 31,
2016
Shareholders' net income	$	519			$	519
Shares:
Weighted average		254,822				254,822
Common stock equivalents				4,625		4,625
Total shares		254,822		4,625		259,447
EPS	$	2.04	$	(0.04)	$	2.00
2015
Shareholders' net income	$	533			$	533
Shares:
Weighted average		256,707				256,707
Common stock equivalents				4,539		4,539
Total shares		256,707		4,539		261,246
EPS	$	2.08	$	(0.04)	$	2.04

The followingoutstanding employee stock options were notincluded in the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 because their effect was anti-dilutive.

	Three Months Ended
	March 31,
(In millions)	2016	2015
Anti-dilutive options	1.3	1.4

The Company held 39,638,264shares of common stock in Treasury as of March 31, 2016, and 38,421,636 shares as of March 31, 2015.

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Global Health Care Medical Costs Payable

3 Months Ended

Mar. 31, 2016

Global Health Benefits Segment [Member]

Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]

Global Health Care Medical Costs Payable

Note 5— Global Health Care MedicalCosts Payable

Medical costs payable for the Global Health Care segment reflects estimates of the ultimate cost of claims that have been incurred but not yet reported, those that have been reported but not yet paid (reported claims in process), and other medical care expenses and services payablethat are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities, as follows:

	March 31,		December 31,
(In millions)	2016		2015
Incurred but not yet reported	$	1,960	$	1,757
Reported claims in process		506		470
Physician incentives and other medical care expenses and services payable		180		128
Global Health Care medical costs payable	$	2,646	$	2,355

Activity in medical costs payable was as follows:

	For the period ended
	March 31,		December 31,
(In millions)	2016		2015
Balance at January 1,	$	2,355	$	2,180
Less: Reinsurance and other amounts recoverable		243		252
Balance at January 1, net		2,112		1,928
Incurred costs related to:
Current year		4,825		18,564
Prior years		(64)		(210)
Total incurred		4,761		18,354
Paid costs related to:
Current year		2,985		16,588
Prior years		1,449		1,582
Total paid		4,434		18,170
Ending Balance, net		2,439		2,112
Add: Reinsurance and other amounts recoverable		207		243
Ending Balance	$	2,646	$	2,355

Reinsurance and other amounts recoverable includesamounts due from reinsurers and policyholders to cover incurred but not reported and pending claims for minimum premium products and certain administrative services only business where the right of offset does not exist. See Note 6 for additional information on reinsurance. For the three months ended March 31, 2016, actual experience differed from the Company's key assumptions resulting in favorable incurred costs related to prior years' medical costs payable of $64 million, or 0.3%of the current year incurred costs as reported for the year ended December 31, 2015. Actual completion factors accounted for$51 million, or 0.3% of the favorability and actual medical cost trend resulted in $28 million, or 0.1%, offset by approximately $15million, or 0.1%, related to increased medical costs in the Government segment because of additional provider risk sharing.

For the year ended December 31, 2015, actual experience differed from the Company's key assumptions, resulting in favorable incurred costs related to prior years' medical costs payable of $210 million, or 1.3% of the current year incurred costs as reported for the year ended December 31, 2014. Actual completion factors accounted for $62 million, or 0.4% of favorability, while actual medical cost trend resulted in $115 million, or 0.7%. The remaining $33 million, or 0.2%, was related to an increase in the 2014 reinsurance reimbursement rate from the Centers for Medicare and Medicaid Services (“CMS”) under The Patient Protection and Affordable Care Act (“Health Care Reform”).

The impact of prior year development on shareholders' net income was$14millionfor thethree months ended March 31, 2016compared with $25million for the three months endedMarch 31, 2015. The favorable effect of prior year development for both periods primarily reflects lower than expectedutilization of medical services. Incurred costs related to prior years in the table above do not directly correspond to an increase or decrease to shareholders' net income.The primary reason for the difference is that decreases to prior year incurred costs pertaining to the portion of the liability established for moderately adverse conditions are not considered as impacting shareholders' net income if they are offset by increases in the current year provision for moderately adverse conditions. The determination of liabilities for Global Health Care medical costs payable requires the Company to make critical accounting estimates. See Note 2(N) to the Consolidated Financial Statements in the Company's 2015 Form 10-K for further information about the assumptions and estimates used to establish this liability.

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Reinsurance

3 Months Ended

Mar. 31, 2016

Reinsurance Disclosures [Abstract]

Reinsurance

Note 6― Reinsurance

The Company's insurance subsidiaries enter into agreements with other insurance companies to assume and cede reinsurance.  Reinsurance is ceded primarily to limit losses from large exposures and to permit recovery of a portion of direct or assumed losses. Reinsurance is also used in acquisition and disposition transactions when the underwriting company is not being acquired. Reinsurance does not relieve the originating insurer of liability.  The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk.

Effective Exit of GMDB and GMIB Business

In 2013, the Company entered into an agreement with Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire”) to effectively exit the guaranteed minimum death benefit (“GMDB”) and guaranteed minimum income benefit (“GMIB”) businesses via a reinsurance transaction. Berkshire reinsured 100% of the Company's future claim payments in these businesses, net of other reinsurance arrangements existing at that time. The Berkshire reinsurance agreement is subject to an overall limit with approximately $3.6 billion remaining.

Because this effective exit was accomplished via a reinsurance contract, the amounts related to the reinsured GMDB and GMIB contractscannot be netted, so the gross assets and liabilities must continue to be measured and reported. The following disclosures provide further context for the methods and assumptions used to determine GMDB assets and liabilities.

GMDB

The Company estimates this liability with an internal model based on the Company's experience and future expectations over an extended period, consistent with the long-term nature of this product. Because the product is premium deficient, the Company records increases to the reserve if it is inadequate based on the model. As a result of the reinsurance transaction, reserve increases have a corresponding increase in the recorded reinsurance recoverable, provided the increased recoverable remains within the overall Berkshire limit (including the GMIB assets).

Activity in the future policy benefit reserve for the GMDB business was as follows:

	For the period ended
	March 31,		December 31,
(In millions)	2016		2015
Balance at January 1	$	1,252	$	1,270
Add: Unpaid claims		18		16
Less: Reinsurance and other amounts recoverable		1,164		1,186
Balance at January 1, net		106		100
Add: Incurred benefits		1		3
Less: Paid benefits		-		(3)
Ending balance, net		107		106
Less: Unpaid claims		22		18
Add: Reinsurance and other amounts recoverable		1,201		1,164
Ending balance	$	1,286	$	1,252

Benefits paid and incurred are net of ceded amounts. The ending net retained reserve is to cover ongoing administrative expenses, as well as the minor claims exposure retained by the Company.

The table below presents the account value, net amount at risk and number of underlying 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. Unless the Berkshire limit is exceeded, the Company should be reimbursed in full for these payments.

(Dollars in millions, excludes impact of reinsurance ceded)	March 31, 2016		December 31, 2015
Account value	$	10,977	$	11,355
Net amount at risk	$	2,854	$	2,870
Number of contractholders		318,000		324,000

Effects of Reinsurance

In the Company's Consolidated Statements of Income, premiums were reported net of amounts ceded to reinsurers and Global Health Care medical costs and other benefit expenses were reported net of reinsurance recoveries in the following amounts:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Ceded premiums
Individual life insurance and annuity business sold	$	41	$	41
Other		95		89
Total	$	136	$	130
Reinsurance recoveries
Individual life insurance and annuity business sold	$	68	$	86
Other		96		73
Total	$	164	$	159

Reinsurance Recoverables

Components of the Company's reinsurance recoverablesare presented below:

(In millions)
		March 31,		December 31,		Collateral and Other Terms
Line of Business	Reinsurer(s)	2016		2015		at March 31, 2016
GMDB	Berkshire	$	1,156	$	1,123	100% secured by assets in a trust.
	Other		45		41	100% secured by assets in a trust or letter of credit.
Individual Life and Annuity (sold in 1998)	Lincoln National Life and Lincoln Life & Annuity of New York		3,659		3,705	Both companies' ratings are sufficient to avoid triggering a contractual obligation to fully secure the outstanding balance.
Retirement Benefits Business (sold in 2004)	Prudential Retirement Insurance and Annuity		976		995	100% secured by assets in a trust.
Supplemental Benefits Business (2012 acquisition)	Great American Life		312		315	100% secured by assets in a trust.
Global Health Care, Global Supplemental Benefits, Group Disability and Life	Various		497		553	Recoverables from approximately 80 reinsurers, including the U.S. Government, used in the ordinary course of business. Excluding the recoverable from the U.S. Government of approximately $100 million, current balances range from less than $1 million up to $90 million, with 18% secured by assets in trusts or letters of credit.
Other run-off reinsurance	Various		80		81	100% of this balance is secured by assets in trusts.
Total reinsurance recoverables		$	6,725	$	6,813

Over 90% of the Company's reinsurance recoverables were from companies that were rated A or higher by Standard & Poor's at March 31, 2016. The Company reviews its reinsurance arrangements and establishes reserves against the recoverablesif recovery is not considered probable. As of March 31, 2016, the Company's recoverables were net of a reserve of approximately $3 million. 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.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair value measurements

Note7―Fair Value Measurements

The Company carries certain financial instruments at fair value in the financial statements including fixed maturities, equity securities, short-term investments and derivatives. Other financial instruments are measured at fair value under certain conditions, such as when impaired.

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 may 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, as well as designating 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. Annually, we conduct an on-site visit of the most significant pricing service to review their processes, methodologies and controls. This on-site review includes a walk-through of inputs of a sample of securities held across various asset types to validate the documented pricing process.

Financial Assets and Financial Liabilities Carried at Fair Value

The following tables provide information as of March 31, 2016 and December 31, 2015 about the Company's financial assets and liabilities carried at fair value. Separate account assetsthat are also recorded at fair value on the Company's Consolidated Balance Sheets are reported separately under the heading “Separate account assets” as gains and losses related to these assets generally accrue directly to policyholders.

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions)	(Level 1)		(Level 2)		(Level 3)		Total
March 31, 2016
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	183	$	569	$	-	$	752
State and local government		-		1,603		-		1,603
Foreign government		-		2,068		4		2,072
Corporate		-		14,661		406		15,067
Mortgage-backed		-		40		1		41
Other asset-backed		-		243		309		552
Total fixed maturities (1)		183		19,184		720		20,087
Equity securities		33		89		72		194
Subtotal		216		19,273		792		20,281
Short-term investments		-		465		-		465
GMIB assets (2)		-		-		957		957
Other derivative assets (3)		-		11		-		11
Total financial assets at fair value, excluding separate accounts	$	216	$	19,749	$	1,749	$	21,714
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	941	$	941
Other derivative liabilities		-		1		-		1
Total financial liabilities at fair value	$	-	$	1	$	941	$	942
December 31, 2015
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	251	$	528	$	-	$	779
State and local government		-		1,641		-		1,641
Foreign government		-		2,010		4		2,014
Corporate		-		14,122		326		14,448
Mortgage-backed		-		48		1		49
Other asset-backed		-		198		326		524
Total fixed maturities (1)		251		18,547		657		19,455
Equity securities		32		89		69		190
Subtotal		283		18,636		726		19,645
Short-term investments		-		381		-		381
GMIB assets (2)		-		-		907		907
Other derivative assets (3)		-		16		-		16
Total financial assets at fair value, excluding separate accounts	$	283	$	19,033	$	1,633	$	20,949
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	885	$	885
Total financial liabilities at fair value	$	-	$	-	$	885	$	885

(1) Fixed maturities included $622 million as of March 31, 2016 and $483 million as of December 31, 2015 of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $42 million as of March 31, 2016 and $30 million as of December 31, 2015 of appreciation for securities classified in Level 3. See Note 8 for additional information.

(2) The GMIB assets represent retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts.

(3) Other derivative assets included $10 million as of March 31, 2016 and $15 million as of December 31, 2015 of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million as of March 31, 2016andDecember 31, 2015 of interest rate swaps qualifying as fair value hedges. See Note 9 for additional information.

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.Given the narrow definition of Level 1 and the Company's investment asset strategy to maximize investment returns, a relatively small portion of the Company's investment assets are classified in this category.

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.

Fixed maturities and equity securities.Approximately95% of the Company's investments in fixed maturities and equity securities are classified in Level 2 including most public and private corporate debt and equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks.  Because many fixed maturities do not trade daily, third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics. When recent trades are not available, pricing models are used to determine these prices.  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 thatare 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 which approximates cost. On a regular basis, the Company compares market prices for these securities to recorded amounts 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.

Other derivatives classified in Level 2 represent over-the-counter instruments such as interest rate and foreign currency 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 counterpartiesand determined that no adjustment for credit risk was required as of March 31, 2016 or December 31, 2015.  Level 2 also includes exchange-traded interest rate swap contracts. Credit risk related to the clearinghouse counterparty and the Company is considered minimal when estimating the fair values of these derivatives because of upfront margin deposits and daily settlement requirements. The nature and use of these other derivatives 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, as well as assets and liabilities relating to GMIB, in Level 3.Approximately 4% of fixed maturities and equity securities are priced using significant unobservable inputs and classified in this category.

Fair values of other asset and mortgage-backed securities, corporate and government fixed maturities 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.  For other asset and mortgage-backed securities, inputs and assumptions for pricing may also include collateral attributes and prepayment speeds.  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 tables summarize the fair value and significant unobservable inputs used in pricing the following securities that were developed directly by the Company as of March 31, 2016 and December 31, 2015. The range and weighted average basis point amounts (“bps”) for fixed maturity spreads (adjustment to discount rates) and price-to-earnings multiples for equity investments reflect the Company's best estimates of the unobservable adjustments a market participant would make to calculate these fair values.

Other asset and mortgage-backed securities.The significant unobservable inputs used to value the following other asset and mortgage-backed securities are liquidity and weighting of credit spreads. When there is limited trading activity for the security, an adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure. 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. The resulting wide range of unobservable adjustments in the table below is due to the varying liquidity and quality of the underlying collateral, ranging from high credit quality to below investment grade.

Corporate and government fixed maturities.The significant unobservable input used to value the following corporate and government fixed maturities is an adjustment for liquidity. When there is limited trading activity for the security, an adjustment is needed to reflect current market conditions and issuer circumstances.

Equity securities.The significant unobservable input used to value the following equity securities is a multiple of earnings before interest, taxes, depreciation and amortization (“EBITDA”). These securities are comprised of private equity investments with limited trading activity and therefore a ratio of EBITDA is used to estimate value based on company circumstances and relative risk characteristics.

			Unobservable Input	Unobservable Adjustment Range (Weighted Average)
(Fair value in millions)		Fair Value
As of March 31, 2016
Fixed maturities:
Other asset and mortgage-backed securities	$	310	Liquidity	60 - 450 (190) bps
			Weighting of credit spreads	180 - 680 (230) bps
Corporate and government fixed maturities		360	Liquidity	70 - 1,150 (360) bps
Total fixed maturities		670
Equity securities		72	Price-to-earnings multiples	4.2 - 11.6 (8.2)
Subtotal		742
Securities not priced by the Company(1)		50
Total Level 3 securities	$	792
As of December 31, 2015
Fixed maturities:
Other asset and mortgage-backed securities	$	327	Liquidity	60 - 440 (200) bps
			Weighting of credit spreads	170 - 630 (220) bps
Corporate and government fixed maturities		285	Liquidity	70 - 930 (280) bps
Total fixed maturities		612
Equity securities		69	Price-to-earnings multiples	4.2 - 11.6 (8.3)
Subtotal		681
Securities not priced by the Company(1)		45
Total Level 3 securities	$	726
(1) The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.

Significant increases in fixed maturity spreads would result in a lower fair value measurement while decreases in these inputs would result in a higher fair value measurement. Significant decreases in equity price-to-earnings multiples would result in a lower fair value measurement while increases in these inputs would result in a higher fair value measurement. Generally, the unobservable inputs are not interrelated and a change in the assumption used for one unobservable input is not accompanied by a change in the other unobservable input.

GMIB contracts.As discussed in Note 6,the Company effectively exited the GMIB business in 2013. Although theseGMIB assets and liabilities must continue to be reported as derivatives at fair value, the only assumption that is expected to impact future shareholders' net income is the risk of non-performance. This assumption reflects a market participant's view of (a) the risk of a subsidiary of the Company not fulfilling its GMIB obligations (GMIB liabilities) and (b) the credit risk that the reinsurers do not pay their obligations (GMIB assets). As of March 31, 2016, there were three reinsurers for GMIB, with collateral securing 68% of the balance.

The Company reports GMIB liabilities and assets as derivatives at fair value because the cash flows of these liabilities and assets are affected by equity markets and interest rates, but are without significant life insurance risk and are settled in lump sum payments. Under the terms of these written and purchased contracts, the Company periodically receives and pays fees based on either contractholders' account values or deposits increased at a contractual rate. The Company will also pay and receive cash depending on account values and interest rates when contractholderselect to begin to receive minimum income payments. The Company estimates the fair value of the assets and liabilities for GMIB contracts by calculating the results for many scenarios run through a model utilizing various assumptions that include non-performance risk, among other things.

The non-performance risk adjustment is incorporated by adding an additional spread to the discount rate in the calculation of both (a) the GMIB liabilities to reflect a market participant's view of the risk of a subsidiary of the Company not fulfilling its GMIB obligations, and (b) the GMIB assets to reflect a market participant's view of the credit risk of the reinsurers, after considering collateral.

Other assumptionsthat affect GMIB assets and liabilities include capital market assumptions (including market returns, interest rates and market volatilities of the underlying equity and bond mutual fund investments) and future annuitant behavior (including mortality, lapse and annuity election rates). As certain assumptions used to estimate fair values for these contracts are largely unobservable (primarily related to future annuitant behavior), the Company classifies GMIB assets and liabilities in Level 3.

The Company regularly evaluates each of the assumptions used in establishing these assets and liabilities. Significant decreases in assumed lapse rates or spreads used to calculate non-performance risk, or increases in assumed annuity election rates, would result in higher fair value measurements. A change in one of these assumptions is not necessarily accompanied by a change in another assumption.

GMIB liabilities are reported in the Company's Consolidated Balance Sheets in accounts payable, accrued expenses and other liabilities.  GMIB assets associated with these contracts represent net receivables in connection with reinsurance that the Company has purchased from three external reinsurers and are reported in the Company's Consolidated Balance Sheets in other assets, including other intangibles.

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 thethree months endedMarch 31, 2016 and 2015.  Separate account asset changes are reported separately under the heading “Separate account assets” as the changes in fair values of these assets accrue directly to the policyholders. Gains and losses reported in these tables may include net changes in fair value that are attributable to both observable and unobservable inputs.

For the Three Months Ended March 31, 2016	Changes in Level 3 financial assets and financial liabilities
(In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at January 1, 2016	$	726	$	907	$	(885)	$	22
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		61		(61)		-
Other		(25)		(1)		(5)		(6)
Total gains (losses) included in shareholders' net income		(25)		60		(66)		(6)
Gains included in other comprehensive income		-		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)		11		-		-		-
Purchases, sales and settlements:
Purchases		24		-		-		-
Sales		-		-		-		-
Settlements		(11)		(10)		10		-
Total purchases, sales and settlements		13		(10)		10		-
Transfers into/(out of) Level 3:
Transfers into Level 3		128		-		-		-
Transfers out of Level 3		(61)		-		-		-
Total transfers into/(out of) Level 3		67		-		-		-
Balance at March 31, 2016	$	792	$	957	$	(941)	$	16
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	(25)	$	60	$	(66)	$	(6)
For the Three Months Ended March 31, 2015	Changes in Level 3 financial assets and financial liabilities
(In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at January 1, 2015	$	857	$	953	$	(929)	$	24
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		27		(27)		-
Other		13		(1)		(1)		(2)
Total gains (losses) included in shareholders' net income		13		26		(28)		(2)
Gains included in other comprehensive income		2		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)		6		-		-		-
Purchases, sales and settlements:
Purchases		11		-		-		-
Sales		(18)		-		-		-
Settlements		(3)		(9)		9		-
Total purchases, sales and settlements		(10)		(9)		9		-
Transfers into/(out of) Level 3:
Transfers into Level 3		1		-		-		-
Transfers out of Level 3		(51)		-		-		-
Total transfers into/(out of) Level 3		(50)		-		-		-
Balance at March 31, 2015	$	818	$	970	$	(948)	$	22
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	-	$	26	$	(28)	$	(2)
(1) Amounts do not accrue to shareholders.

As noted in the tables above, total gains and losses included in shareholders' net income are reflected in the following captions in the Consolidated Statements of Income:

• Realized investment gains (losses) and net investment income for amounts related to fixed maturities and equity securities and realized investment gains (losses) for the impact of changes in non-performance risk related to GMIB assets and liabilities, similar to hedge ineffectiveness; and
• Other operating expenses for amounts related to GMIB assets and liabilities (GMIB fair value gain/loss), except for the impact of changes in non-performance risk.

In the tables above, gains and losses included in other comprehensive income are reflected in net unrealized appreciation (depreciation) on securities in the Consolidated Statements of Comprehensive Income.

Reclassifications impacting Level 3 financial instruments are reported as transfers into or out of the Level 3 category as of the beginning of the quarter in which the transfer occurs. Therefore gains and losses in income only reflect activity for the periodthe instrument was classified in Level 3. 

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. For thethree months ended March 31, 2016, transfers between Level 2and Level 3 primarily reflectchanges in liquidity and credit risk estimates for certain private placement issuers in the metals, mining and energy sectors.For the three months ended March 31, 2015,transfers out of Level 3 primarily reflect a change in the significance of the unobservable inputs related to liquidity and credit estimates used to value several private corporate bonds.

Separate account assets

Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are excluded from the Company's revenues and expenses.  Beginning in 2016, investments that are measured using the practical expedient ofnet asset value are excluded from the fair value hierarchy.Prior periods have been reclassified to conform to the current presentation. As of March 31, 2016 and December 31, 2015, separate account assets were as follows:

(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, 2016
Guaranteed separate accounts (See Note 16)	$	231	$	273	$	-	$	504
Non-guaranteed separate accounts (1)		1,372		4,862		317		6,551
Subtotal	$	1,603	$	5,135	$	317		7,055
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)								930
Total separate account assets							$	7,985
December 31, 2015
Guaranteed separate accounts (See Note 16)	$	235	$	274	$	-	$	509
Non-guaranteed separate accounts (1)		1,401		4,698		297		6,396
Subtotal	$	1,636	$	4,972	$	297		6,905
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)								928
Total separate account assets							$	7,833

(1) Non-guaranteed separate accounts as of March 31, 2016 and December 31, 2015 included $3.6 billion in assets supporting the Company's pension plans, with$0.3billion classified in Level 3 and $0.9 billion priced at NAV, as a practical expedient.

Separate account assets in 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 and separate accounts priced using the daily net asset value that is the exit price.

Separate account assets classified in Level 3 include certain newly issued, privately-placed, complex, or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans that are valued according to the methodologies discussed below. The following tables summarize the changes in separate account assets reported in Level 3 for the three months ended March 31, 2016 and 2015.

	Three Months Ended
	March 31,
(In millions)	2016		2015
Balance, beginning of period	$	297	$	255
Policyholder gains (losses)		(1)		1
Purchases, sales and settlements:
Purchases		4		10
Sales		(1)		-
Settlements		(2)		(3)
Total purchases, sales and settlements		1		7
Transfers into/(out of) Level 3:
Transfers into Level 3		23		-
Transfers out of Level 3		(3)		(4)
Total transfers into/(out of) Level 3		20		(4)
Balance, end of period	$	317	$	259

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. The table below provides additional information on these investments.

	Fair Value as of
(In millions)	March 31, 2016		December 31, 2015		Unfunded Commitments		Redemption Frequency (if currently eligible)*	Redemption Notice Period*
Security Partnerships	$	432	$	406	$	274	Not applicable	Not applicable
Real Estate Funds		266		261	0		Quarterly	45-90 days
Hedge Funds		232		261		0	Up to Annually, varying by fund	30-90 days
Total	$	930	$	928	$	274

* The attributes notedare effective as of March 31, 2016 and December 31, 2015.

Assets and Liabilities Measured at Fair Value under Certain Conditions

Some financial assets and liabilitiesare not carried at fair value each reporting period, but may be measured using fair value only under certain conditions, such as investments in real estate entities and commercial mortgage loans when they become impaired.There were no impaired real estate entities or commercial mortgage loanswritten down to fair value for the three months ended March 31, 2016. Impaired real estate entities and commercial mortgage loans,classified as Level 3 and representing less than 1% of total investments, were written down to their fair values,resulting in realized investment losses of $4 million, after tax for the three months endedMarch 31, 2015.

Fair Value Disclosures for Financial Instruments Not Carried at Fair Value

The following table includesthe Company's financialinstruments not recorded at fair value that are subject to fair value disclosure requirements at March 31, 2016 and December 31, 2015.Financial instruments that are carried in the Company's Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table.

(In millions)			March 31, 2016				December 31, 2015
	Classification in the Fair Value Hierarchy		Fair Value		Carrying Value		Fair Value		Carrying Value
Commercial mortgage loans	Level 3	$	1,903	$	1,848	$	1,911	$	1,864
Contractholder deposit funds, excluding universal life products	Level 3	$	1,195	$	1,187	$	1,151	$	1,148
Long-term debt, including current maturities, excluding capital leases	Level 2	$	5,573	$	5,040	$	5,515	$	5,020

The fair values for all financial instruments presented in the table above have been estimated using market information when available. The following valuation methodologies and inputs are used by the Company to determine fair value.

Commercial mortgage loans. The Company estimates the fair value of commercial mortgage loans generally by discounting the contractual cash flows at estimated market interest rates that reflect the Company's assessment of the credit quality of the loans. Market interest rates are derived by calculating the appropriate spread over comparable U.S. Treasury rates, based on the property type, quality rating and average life of the loan. The quality ratings reflect the relative risk of the loan, considering debt service coverage, the loan-to-value ratio and other factors. Fair values of impaired mortgage loans are based on the estimated fair value of the underlying collateral generally determined using an internal discounted cash flow model.The fair value measurements were classified in Level 3 because the cash flow models incorporate significant unobservable inputs.

Contractholder deposit funds, excluding universal life products.Generally, these funds do not have stated maturities. Approximately 65% of these balances can be withdrawn by the customer at any time without prior notice or penalty. The fair value for these contracts is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value. Most of the remaining contractholder deposit funds are reinsured by the buyers of the individual life and annuity and retirement benefits businesses. The fair value for these contracts is determined using the fair value of these buyers' assets supporting these reinsured contracts. The Company had reinsurance recoverables equal to the carrying value of these reinsured contracts.These instruments were classified in Level 3 because certain inputs are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.

Long-term debt, including current maturities, excluding capital leases.The fair value of long-term debt is based on quoted market prices for recent trades. When quoted market prices are not available, fair value is estimated using a discounted cash flow analysis and the Company's estimated current borrowing rate for debt of similar terms and remaining maturities.These measurements were classified in Level 2 because the fair values are based on quoted market prices or other inputs that are market observable or can be corroborated by market data.

Fair values of off-balance-sheet financial instruments were not material as of March 31, 2016 and December 31, 2015.

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Investments

3 Months Ended

Mar. 31, 2016

Investments [Abstract]

Investments

Note 8 — Investments

Total Realized Investment Gains and Losses

The followingrealized gains and (losses) on investments exclude amounts required to adjust future policy benefits for therun-off settlement annuity business:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Fixed maturities	$	(18)	$	7
Equity securities		(10)		13
Commercial mortgage loans		-		5
Other investments, including derivatives		(4)		48
Realized investment gains (losses) before income taxes		(32)		73
Less income taxes (benefits)		(11)		25
Net realized investment gains (losses)	$	(21)	$	48

Included in these realized investment gains (losses) were pre-tax asset write-downs as follows:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Other-than-temporary impairments on debt securities:
Credit-related	$	(18)	$	-
Non credit-related (1)		(9)		(5)
Total other-than-temporary impairments on debt securities		(27)		(5)
Other asset write-downs (2)		(9)		(6)
Total	$	(36)	$	(11)
(1) These write-downs pertain to other-than-temporary declines in fair values due to increases in market yields (widening of credit spreads), particularly within the energy sector, for certain below investment grade fixed maturities with an increased probability of sales activity prior to recovery of amortized cost basis.
(2) Other asset write-downs include other-than-temporary declines in fair values of equity securities and asset writedowns related to real estate investments.

Sales information for available-for-sale fixed maturities and equity securities was as follows:

	Three Months Ended
	March 31,
(In millions)	2016		2015
Proceeds from sales	$	361	$	393
Gross gains on sales	$	12	$	27
Gross losses on sales	$	5	$	2

Fixed Maturities and Equity Securities

The amortized cost and fair value by contractual maturity periods for fixed maturities were as follows at March 31, 2016:

		Amortized		Fair
(In millions)		Cost		Value
Due in one year or less	$	1,533	$	1,541
Due after one year through five years		6,359		6,652
Due after five years through ten years		6,888		7,216
Due after ten years		3,352		4,085
Mortgage and other asset-backed securities		552		593
Total	$	18,684	$	20,087

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

Gross unrealized appreciation (depreciation) on fixed maturities by type of issuer is shown below.

				Gross		Gross
				Unrealized		Unrealized
		Amortized		Appre-		Depre-		Fair
		Cost		ciation		ciation		Value
(In millions)	March 31, 2016
Federal government and agency	$	463	$	289	$	-	$	752
State and local government		1,451		153		(1)		1,603
Foreign government		1,890		183		(1)		2,072
Corporate		14,328		869		(130)		15,067
Mortgage-backed		40		2		(1)		41
Other asset-backed		512		48		(8)		552
Total	$	18,684	$	1,544	$	(141)	$	20,087
(In millions)	December 31, 2015
Federal government and agency	$	528	$	251	$	-	$	779
State and local government		1,496		147		(2)		1,641
Foreign government		1,870		147		(3)		2,014
Corporate		14,022		632		(206)		14,448
Mortgage-backed		48		2		(1)		49
Other asset-backed		492		39		(7)		524
Total	$	18,456	$	1,218	$	(219)	$	19,455

The above table includes investments with a fair value of $2.8 billion at March 31, 2016 and$2.7 billion at December 31, 2015 supporting liabilities of the Company's run-off settlement annuity business. These investments had gross unrealized appreciation of $636 million and gross unrealized depreciation of $14 million at March 31, 2016, compared with gross unrealized appreciation of $521 million and gross unrealized depreciation of $38 million at December 31, 2015. Such unrealized amounts are reported in future policy benefit liabilities rather than accumulated other comprehensive income.

Review of declines in fair value. Management reviews fixed maturities with a decline in fair value from cost for impairment based on criteria that include:

• length of time and severity of decline;

• financial health and specific near term prospects of the issuer;
• changes in the regulatory, economic or general market environment of the issuer's industry or geographic region; and
• the Company's intent to sell or the likelihood of a required sale prior torecovery.

The table below summarizes fixed maturities in an unrealized loss position at March 31, 2016 by the length of time these securities have been in an unrealized loss position. These fixed maturities were primarily corporate securities with a decline in fair value that reflects an increase in market yields since purchase.

	March 31, 2016
	Fair		Amortized		Unrealized		Number
(Dollars in millions)	Value		Cost		Depreciation		of Issues
One year or less:
Investment grade	$	1,787	$	1,840	$	(53)	292
Below investment grade	$	350	$	374	$	(24)	145
More than one year:
Investment grade	$	311	$	340	$	(29)	74
Below investment grade	$	168	$	203	$	(35)	34

There were no available for sale equity securities with a significant unrealized loss reflected in accumulated other comprehensive income at March 31, 2016. Equity securities also include hybrid investments consisting of preferred stock with call features that are carried at fair value with changes in fair value reported in other realized investment gains (losses) and dividends reported in net investment income. As of March 31, 2016, fair values of these securities were $37 million and amortized cost was $53 million. As of December 31, 2015, fair values of these securities were $52 million and amortized cost was $66 million.

Commercial Mortgage Loans

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 a fixed rate of interest and are secured by high quality, primarily completed and substantially leased operating properties.

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 originationthat is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on an ongoing basis, classifying each loan as a loan in good standing, potential problem loan or problem loan.

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 tables summarize 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, 2016 and December 31, 2015:

		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
(In millions)				March 31, 2016
Below 50%	$	259	$	2	$	-	$	60	$	-	$	321
50% to 59%		672		-		-		31		-		703
60% to 69%		589		14		-		19		-		622
70% to 79%		-		-		-		30		36		66
80% to 89%		40		-		-		-		-		40
90% to 100%		-		-		-		-		96		96
Total	$	1,560	$	16	$	-	$	140	$	132	$	1,848
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
(In millions)					December 31, 2015
Below 50%	$	261	$	2	$	-	$	67	$	-	$	330
50% to 59%		683		-		-		24		-		707
60% to 69%		590		14		-		19		-		623
70% to 79%		-		-		-		30		36		66
80% to 89%		40		-		-		-		-		40
90% to 100%		-		-		-		-		98		98
Total	$	1,574	$	16	$	-	$	140	$	134	$	1,864

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 most recent review was completed by the Company's investment professionals in the second quarter of 2015 and 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 property values and cash flows estimated as part of this review and subsequent fundings and repayments, the portfolio's average loan-to-value ratio remained at 58% and the portfolio's average debt service coverage ratio remained at 1.78 atMarch 31, 2016 when compared to these same metrics at December 31, 2015.

The Company will reevaluate 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.

Potential problem mortgage loans are considered current (no payment is more than 59 days past due), but exhibit certain characteristics that increase the likelihood of future default. The characteristics management considers include, but are not limited to, the deterioration of debt service coverage below 1.0, estimated loan-to-value ratios increasing to 100% or more, downgrade in quality rating and requests from the borrower for restructuring. In addition, loans are considered potential problems if principal or interest payments are past due by more than 30 but less than 60 days. Problem mortgage loans are either in default by 60 days or more or have been restructured as to terms, which could include concessions on interest rate, principal payment or maturity date. The Company monitors each problem and potential problem mortgage loan on an ongoing basis, and updates the loan categorization and quality rating when warranted.

Problem and potential problem mortgage loans, net of valuation reserves, totaled $137 million at March 31, 2016 and $139 million at December 31, 2015.

Impaired commercial mortgage loans. A commercial mortgage loan is considered impaired when it is probable that the Company will not collect all amounts due according to the terms of the original loan agreement. These loans are included in either problem or potential problem loans. The Company monitors credit risk and assesses the impairment of loans individually and on a consistent basis for all loans in the portfolio. Impaired loans are carried at the lower of unpaid principal balance or the fair value of the underlying real estate. Certain commercial mortgage loans without valuation reserves are considered impaired because the Company will not collect all interest due according to the terms of the original agreements; however, the Company expects to recover the unpaid principal because it is less than the fair value of the underlying real estate.

The carrying value of the Company's impaired commercial mortgage loans and related valuation reserves were as follows:

(In millions)		March 31, 2016					December 31, 2015
		Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	111	$	(15)	$	96	$	113	$	(15)	$	98
Impaired commercial mortgage loans with no valuation reserves		-		-		-		-		-		-
Total	$	111	$	(15)	$	96	$	113	$	(15)	$	98

The average recorded investment in impaired loans was $112 million during the three months endedMarch 31, 2016 and $146 millionduring the three months endedMarch 31, 2015. Because of the risk profile of the underlying investment, the Company recognizes interest income on impaired mortgage loans only when payment is actually received.

Changes in valuation reserves for commercial mortgage loans were not material for the three months ended March 31, 2016 and 2015.

Short-term investments and cash equivalents

Short-term investments and cash equivalents include corporate securities of $1.5 billion, federal government securities of $231 million and money market funds of $35 million as of March 31, 2016. The Company's short-term investments and cash equivalents as of December 31, 2015 included corporate securities of $925million, federal government securities of $220 million and money market funds of $55 million.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Note 9 — Derivative Financial Instruments

The Company uses derivative financial instruments to manage the characteristics ofinvestment assets (such as duration, yield, currency and liquidity)to meet the varying demands of the related insurance and contractholder liabilities(such as paying claims, investment returns and withdrawals)and to hedge interest rate risk of its long-term debt. The Company has written and purchased GMIB reinsurance contracts in its run-off reinsurance business that are accounted for as freestanding derivatives. For information on the Company's accounting policy for derivative financial instruments, see Note 2(C) to the Consolidated Financial Statements contained in the Company's 2015 Form 10-K. 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.

Collateral and termination features.The Company routinely monitors exposure to credit risk associated with derivatives and diversifies the portfolio among approved dealers of high credit quality to minimize this risk. As of March 31, 2016, the Company had $16 million in cash on deposit representing the upfront margin required for the Company's centrally-cleared derivative instruments.Certain of the Company's over-the-counter derivative instruments contain provisions requiring either the Company or the counterparty to post collateral or demand immediate payment depending on the amount of the net liability position and predefined financial strength or credit rating thresholds. Collateral posting requirements vary by counterparty. The net asset or liability positions of these derivatives were not material as of March 31, 2016 or December 31, 2015.

Investment Cash Flow Hedges

The Company uses interest rate, foreign currency, and combination (interest rate and foreign currency) swap contracts to hedge the interest and foreign currency cash flows of its fixed maturity bonds to match associated insurance liabilities.

Using cash flow hedge accounting, fair values are reported in other long-term investments or accounts payable, accrued expenses and other liabilities. Changes in fair value are reported in accumulated other comprehensive income and amortized into net investment income or reported in other realized investment gains and losses as interest or principal payments are received.

Under the terms of these various contracts, the Company periodically exchanges cash flows between variable and fixed interest rates or between two currencies for both principal and interest. Foreign currency and combination swaps are primarily Euros,Australian dollars,Canadian dollars, Japanese yen and British pounds and have terms for periods of up to five years. Net interest cash flows are reported in operating activities.

The notional values of these cash flow swaps were $131 million as of March 31, 2016 and December 31, 2015.

As of March 31, 2016 and December 31, 2015, and for thethree months endedMarch 31, 2016 and 2015, the effects of these derivative instruments on the Consolidated Financial Statements, including the amounts of gains or losses reclassified from accumulated other comprehensive income into shareholders' net income, were not material.No amounts were excluded from the assessment of hedge effectiveness and no gains or losses were recognized due to hedge ineffectiveness.

Interest Rate Fair Value Hedges

The Company entered into interest rate swap contracts to convert a portion of the interest rate exposure on its long-term debt from fixed to variable rates to more closely align interest expense with interest income received on its cash equivalent and short-term investment balances. The variable rates are benchmarked to LIBOR.

Using fair value hedge accounting, the fair values of the swap contracts are reported in other assets, including other intangibles, or accounts payable, accrued expenses and other liabilities. As the critical terms of these swaps match those of the long-term debt being hedged, the carrying value of the hedged debt is adjusted to reflect changes in its fair value driven by LIBOR. The effects of those adjustments on other operating expenses are offset by the effects of corresponding changes in the swaps' fair value, including interest expense for the difference between the variable and fixed interest rates.

Under the terms of these contracts, the Company provides upfront margin and settles fair value changes and net interest between variable and fixed interest rates daily with a central clearinghouse. Net interest cash flows are reported in operating activities.

The notional values of these derivative instruments were $750 million as of March 31, 2016 and December 31, 2015.

As ofMarch 31, 2016 and December 31, 2015, and for the three months endedMarch 31, 2016 and 2015, the effects of these derivative instruments on the Consolidated Financial Statements were not material.

GMIB

The Company's run-off reinsurance business has written reinsurance contracts with issuers of variable annuities that provide annuitants with certain guarantees of minimum income benefits resulting from the level of variable annuity account values compared with a contractually guaranteed amount (“GMIB liabilities”). According to the contractual terms of the written reinsurance contracts, payment by the Company depends on the actual account value in the underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments. The Company has purchased retrocessional coverage (“GMIB assets”) for these contracts, including the agreement with Berkshire in 2013, effectively exiting this business. See Note 6 for further details.

The fair value effects of GMIB contracts on the financial statements are included in Note 7 and their volume of activity is included in Note 16.Cash flows on these contracts are reported in operating activities.

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Variable Interest Entities

3 Months Ended

Mar. 31, 2016

Variable Interest Entities [Abstract]

Variable interest entities

Note 10 – Variable Interest Entities

When the Company becomes involved with a variable interest entity, as well as when there is a change in the Company's involvement with an entity, the Company evaluates the following to determine if it is the primary beneficiary and must consolidate the entity:

• the structure and purpose of the entity;
• the risks and rewards created by and shared through the entity; and
• the Company's ability to direct its activities, receive its benefits and absorb its losses relative to the other parties involved with the entity including its sponsors, equity holders, guarantors, creditors and servicers.

In the normal course of its investing activities, the Company makes passive investments in securities that are issued by variable interest entities for which the Company is not the sponsor or manager. These investments are predominantly asset-backed securities primarily collateralized by foreign bank obligations or mortgage-backed securities. The asset-backed securities largely represent fixed-rate debt securities issued by trusts that hold perpetual floating-rate subordinated notes issued by foreign banks. The mortgage-backed securities represent senior interests in pools of commercial or residential mortgages created and held by special-purpose entities to provide investors with diversified exposure to these assets. The Company owns senior securities issued by several entities and receives fixed-rate cash flows from the underlying assets in the pools. The Company's maximum potential exposure to loss related to these investments is limited to the carrying amount of $0.6billion as of March 31, 2016, that is reported in fixed maturities. The Company's combined ownership interests are insignificant relative to the total principal amounts issued by these entities.

The Company also owns interests in security and real estate limited partnerships that are variable interest entities. These partnerships make investments in the equity or mezzanine debt of privately held companies and real estate properties. General partners unaffiliated with the Company control decisions that most significantly impact the partnership's operations and the limited partners do not have substantive kick-out or participating rights. The Company's maximum exposure to these entities of $1.9 billion across approximately 90 limited partnerships includes $1.0 billion reported in other long-term investments and commitments to contribute an additional $0.9 billion as of March 31, 2016. The Company's non-controlling interest in these limited partnerships is generally less than 10%.

To provide certain services to its Medicare Advantage customers, the Company contracts with independent physician associations (“IPAs”) that are variable interest entities. Physicians provide health care services to Medicare Advantage customers and the Company provides medical management and administrative services to the IPAs. The Company's maximum exposure to loss related to the IPA arrangements is limited to their liability for incurred but not reported medical costs for the Company's Medicare Advantage customers. These liabilities are not material and are generally secured by deposits maintained by the IPAs.

The Company is not the primary beneficiary and does not consolidate these entities because either:

• it has no power to direct the activities that most significantly impact the entities' economic performance; or
• it has neither the right to receive benefits nor the obligation to absorb losses that could be significant to these variable interest entities.

The Company has not provided, and does not intend to provide, financial support to these entities that it is not contractually required to provide. The Company performs ongoing qualitative analyses of its involvement with these variable interest entities to determine if consolidation is required.

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Pension and Other Postretirement Benefit Plans

3 Months Ended

Mar. 31, 2016

Pension and Other Postretirement Benefit Plans [Abstract]

Pension and Other Postretirement Benefit Plans

Note 11 — Pension and Other Postretirement Benefit Plans

The Company and certain of its subsidiaries provide pension, health care and life insurance defined benefits to eligible retired employees, spouses and other eligible dependents through various domestic and foreign plans. The effect of its foreign pension and other postretirement benefit plans is immaterial to the Company's results of operations, liquidity and financial position. The Company froze its defined benefit postretirement medical plan in 2013 and its primary domestic pension plans in 2009.

As further discussed in Note 16, the Company and the Cigna Pension Plan are defendants in a class action lawsuit that has yet to be resolved. When the parties agree on a final plan amendment, the pension benefit obligation will be updated to reflect additional benefits resulting from this litigation.

For the three months ended March 31, 2016, the Company's unrecognized actuarial losses and prior service costs (reported in accumulated other comprehensive income) decreased by $16 million pre-tax in the aggregate ($11 million after-tax) resulting in an increase in shareholders' equity. This change was primarily a result of amortization.

Pension and Other Postretirement Benefits. Components of net pension and net other postretirement benefit costs were as follows:

	Pension Benefits				Other Postretirement Benefits
	Three Months Ended				Three Months Ended
	March 31,				March 31,
(In millions)	2016		2015		2016		2015
Service cost	$	-	$	1	$	-	$	-
Interest cost		50		48		3		3
Expected long-term return on plan assets		(62)		(66)		-		-
Amortization of:
Net loss from past experience		17		17		-		-
Prior service cost		-		-		(1)		(1)
Net cost	$	5	$	-	$	2	$	2

The Company funds its domestic qualified pension plans at least at the minimum amount required by the Pension Protection Act of 2006. The Company did not make any pension contributions during the three months ended March 31, 2016, and does not expect to make any pension contributions for the remainder of 2016.

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Debt

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Debt

Note 12― Debt

Short-term and long-term debt were as follows:

	March 31,		December 31,
(In millions)	2016		2015
Short-term:
Commercial paper	$	100	$	100
Current maturities of long-term debt		250		-
Other, including capital leases		49		49
Total short-term debt	$	399	$	149
Long-term:
$250 million, 5.375% Notes due 2017	$	-	$	249
$131 million, 6.35% Notes due 2018		131		131
$250 million, 4.375% Notes due 2020 (1)		261		254
$300 million, 5.125% Notes due 2020 (1)		308		303
$78 million, 6.37% Notes due 2021		78		78
$300 million, 4.5% Notes due 2021 (1)		311		304
$750 million, 4% Notes due 2022		743		743
$100 million, 7.65% Notes due 2023		100		100
$17 million, 8.3% Notes due 2023		17		17
$900 million, 3.25% Notes due 2025		892		892
$300 million, 7.875% Debentures due 2027		299		299
$83 million, 8.3% Step Down Notes due 2033		82		82
$500 million, 6.15% Notes due 2036		498		498
$300 million, 5.875% Notes due 2041		296		295
$750 million, 5.375% Notes due 2042		743		743
Other, including capital leases		32		32
Total long-term debt	$	4,791	$	5,020

(1)The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 9 for further information about the Company's interest rate risk management and these derivative instruments.

The Company has afive-year revolving credit and letter of credit agreement for $1.5 billion that permits up to $500 million to be used for letters of credit. This agreement extends through December 12, 2019and is diversified among 16 banks, with three banks each having 12%of the commitment and the remainder spread among 13 banks. The credit agreement includes options subject to consent by the administrative agent and the committing banks to increase the commitment amount to $2 billion and to extend the term past December 12, 2019. The credit agreement is available for general corporate purposes, including for the issuance of letters of credit. The credit agreement contains customary covenants and restrictions, including a financial covenant that the Company may not permit its leverage ratio – which is total consolidated debt to total consolidated capitalization (each as defined in the credit agreement) – to be greater than 0.50. The leverage ratio calculation excludes net unrealized appreciation in fixed maturities and the portion of the post-retirement benefits liability adjustment attributable to pension that is included in accumulated other comprehensive loss on the Company's consolidated balance sheets.

In addition to the $5.2billion of debt outstanding as of March 31, 2016, the Company had $8.3billion of borrowing capacity within the maximum debt coverage covenant in the letter of credit agreement. This additional borrowing capacity includes the $1.5 billion available under the credit agreement. Letters of credit outstanding as of March 31, 2016totaled $14 million.

The Company was in compliance with its debt covenants as of March 31, 2016.

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 31, 2016

Accumulated Other Comprehensive Income (Loss) [Abstract]

Accumulated Other Comprehensive Income (Loss)

Note 13—Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) excludes amounts required to adjust future policy benefits for the run-off settlement annuity business and a portion of deferred acquisition costs associated with the corporate owned life insurance business.Changes in the components of accumulated other comprehensive income (loss) were as follows:

			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Three Months Ended March 31,
2016
Net unrealized appreciation, securities, January 1,	$	612	$	(194)	$	418
Unrealized appreciation on securities arising during the period		227		(72)		155
Reclassification adjustment for losses included in shareholders' net income (realized investment losses)		28		(10)		18
Net unrealized appreciation, securities arising during the period		255		(82)		173
Net unrealized appreciation, securities, March 31,	$	867	$	(276)	$	591
Net unrealized appreciation, derivatives, January 1,	$	10	$	(3)	$	7
Unrealized (depreciation), derivatives arising during the period		(4)		1		(3)
Net unrealized appreciation, derivatives, March 31,	$	6	$	(2)	$	4
Net translation of foreign currencies, January 1,	$	(295)	$	21	$	(274)
Net translation of foreign currencies arising during the period		83		(2)		81
Net translation of foreign currencies, March 31,	$	(212)	$	19	$	(193)
Postretirement benefits liability adjustment, January 1,	$	(2,155)	$	754	$	(1,401)
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)		16		(5)		11
Postretirement benefits liability adjustment, March 31,	$	(2,139)	$	749	$	(1,390)
2015
Net unrealized appreciation, securities, January 1,	$	955	$	(335)	$	620
Unrealized appreciation on securities arising during the period		148		(47)		101
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(20)		7		(13)
Net unrealized appreciation, securities arising during the period		128		(40)		88
Net unrealized appreciation, securities, March 31,	$	1,083	$	(375)	$	708
Net unrealized (depreciation), derivatives, January 1,	$	(12)	$	4	$	(8)
Net unrealized appreciation, derivatives arising during the period		10		(3)		7
Net unrealized (depreciation), derivatives, March 31,	$	(2)	$	1	$	(1)
Net translation of foreign currencies, January 1,	$	(71)	$	9	$	(62)
Net translation of foreign currencies arising during the period		(109)		5		(104)
Net translation of foreign currencies, March 31,	$	(180)	$	14	$	(166)
Postretirement benefits liability adjustment, January 1,	$	(2,286)	$	800	$	(1,486)
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)		16		(5)		11
Postretirement benefits liability adjustment, March 31,	$	(2,270)	$	795	$	(1,475)

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Income Taxes

3 Months Ended

Mar. 31, 2016

Income Taxes [Abstract]

Income Taxes

Note 14― Income Taxes

A. Income Tax Expense

The consolidated effective tax rates of37.2%for the three months ended March 31, 2016and 37.8% for the three months ended March 31, 2015 reflect the health insurance industry taxthat is not deductible for federal income tax purposes. The effective tax rate for 2016 also reflects tax benefits associated with adopting ASU 2016-09 effective January 1, 2016 as described in Note 2, partially offset bythe impact of certain costs related to the pending Anthem transaction that are not tax deductible.

As part of its global capital management strategy, the Company's foreign operations retain a significant portion of their earnings overseas. These undistributed earnings are deployed outside of the U.S. in support of the liquidity and capital needs of our foreign operations. The Company does not intend to repatriate these earnings to the U.S. and as a result, income taxes are provided using the respective foreign jurisdictions' tax rate.The Company has accumulated undistributed foreign earnings of $2.4 billion as of March 31, 2016. If the Company intended to repatriate these foreign earnings to the U.S., the Company's consolidated balance sheet would have included an additional $340 million of deferred tax liabilities as of March 31, 2016.

B. Unrecognized Tax Benefits

Changes in unrecognized tax benefits were immaterial for the three months ended March 31, 2016.

C. Other Tax Matters

The Internal Revenue Service(“IRS”)is expected to complete their examination of the Company's 2011 and 2012 consolidated federal income tax returns during the second half of 2016.

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Segment Information

3 Months Ended

Mar. 31, 2016

Segment Information [Abstract]

Segment Information [Text Block]

Note 15 ― Segment Information

The financial results of the Company's businesses are reported in the following segments:

Global Health Care aggregates the Commercial and Government operating segments due to their similar economic characteristics, products and services and regulatory environment:

• The Commercial operating segment encompasses both the U.S. commercial and certain international health care businesses serving employers and their employees, other groups, and individuals. Products and services include medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services to insured and self-insured customers.

• The Government operating segment offers Medicare Advantage and Medicare Part D plans to seniors and Medicaid plans.

Global Supplemental Benefits includes supplemental health, life and accident insurance products offered in selected international markets and in the U.S.

Group Disability and Life provides group long-term and short-term disability, group life, accident and specialty insurance products and related services.

Other Operations consist of:

• corporate-owned life insurance (“COLI”);
• run-off reinsurance business that is predominantly comprised of GMDB and GMIB business effectively exited through reinsurance with Berkshire in 2013;

• deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business; and
• run-off settlement annuity business.

Corporate reflects amounts not allocated to operating segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options, expense associated with frozen pension plans andcertain costs for corporate projects, including overhead.

In the Company's segment disclosures, we present ''operating revenues,'' defined as total revenues excluding realized investment results. The Company excludes realized investment results from this measure because its portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment. As a result, gains or losses created in this process may not be indicative of past or future underlying performance of the business.

The Company uses adjusted income (loss) from operations as its principal financial measure of segment operating performance because management believes it best reflects the underlying results of business operations and permits analysis of trends in underlying revenue, expenses and profitability. Adjusted income from operations is defined as shareholders' net income (loss) excluding after-tax realized investment gains and losses, net amortization of other acquired intangible assets and special items. Income or expense amounts are excluded from adjusted income from operations for the following reasons:

• Realized investment results are excluded because, as noted above, our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment.
• Net amortization of other intangible assets is excluded because it relates to costs incurred for acquisitions and, as a result, it does not relate to the core performance of the Company's business operations.
• Special items, if any, are excluded because management believes they are not representative of the underlying results of operations.

For the three months ended March 31, 2016, we reported a special item charge consisting of $40million of pre-tax costs ($36 million after-tax) related to our proposed merger with Anthem. See Note 3 to the Consolidated Financial Statements for additional details. There were no special items for the three months endedMarch 31, 2015. In connection with adopting ASU 2016-09,in the first quarter of 2016 the Company recognized $23 million for certain income tax effects of stock-based compensation in adjusted income from operations for Corporate. See Note 2 to the Consolidated Financial Statements for further discussion.

Summarized segment financial information was as follows:

(In millions)	Global Health Care		Global Supplemental Benefits		Group Disability and Life		Other Operations		Corporate		Total
Three Months Ended March 31, 2016
Premiums, fees and other revenues and mail order pharmacy revenues	$	7,812	$	780	$	1,029	$	27	$	(4)	$	9,644
Net investment income		72		26		80		90		4		272
Operating revenues	$	7,884	$	806	$	1,109	$	117	$	-	$	9,916
Total revenues	$	7,867	$	804	$	1,106	$	107	$	-	$	9,884
Shareholders' net income	$	514	$	59	$	13	$	14	$	(81)	$	519
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment losses		12		1		2		6		-		21
Amortization of other acquired intangible assets, net		18		7		-		-		-		25
Special Item:
Merger-related transaction costs		-		-		-		-		36		36
Total special items		-		-		-		-		36		36
Adjusted income from operations	$	544	$	67	$	15	$	20	$	(45)	$	601
Three Months Ended March 31, 2015
Premiums, fees and other revenues and mail order pharmacy revenues	$	7,371	$	743	$	976	$	32	$	(4)	$	9,118
Net investment income		75		26		83		92		-		276
Operating revenues	$	7,446	$	769	$	1,059	$	124	$	(4)	$	9,394
Total revenues	$	7,495	$	772	$	1,081	$	123	$	(4)	$	9,467
Shareholders' net income	$	453	$	67	$	65	$	19	$	(71)	$	533
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment (gains)		(32)		(3)		(14)		1		-		(48)
Amortization of other acquired intangible assets, net		23		5		-		-		-		28
Adjusted income from operations	$	444	$	69	$	51	$	20	$	(71)	$	513

The Company had receivables,net of allowances, from CMS of $1.5 billion as of March 31, 2016and December 31, 2015. These amounts were included in the Consolidated Balance Sheet in premiums, accounts and notes receivable and reinsurance recoverables. Premiums from CMS were 21% of consolidated revenues for the three months ended March 31, 2016and 22% for the three months endedMarch 31, 2015.

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Contingencies and Other Matters

3 Months Ended

Mar. 31, 2016

Contingencies And Other Matters [Abstract]

Contingencies and Other Matters

Note 16 ― 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

Separate account assets are contractholder funds maintained in accounts with specific investment objectives. The Company records separate account liabilities equal to separate account assets.  In certain cases, the Company guarantees a minimum level of benefits for retirement and insurance contracts written in separate accounts.  The Company establishes an additional liability if management believes that the Company will be required to make a payment under these guarantees.

The Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree 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.  This percentage varies depending on the asset class within a sponsoring employer's portfolio (for example, a bond fund would require a lower percentage than a riskier equity fund) and thus will vary as the composition of the portfolio changes.  If employers do not maintain the required levels of separate account assets, the Company or an affiliate of the buyer of the retirement benefits business (Prudential Retirement Insurance and Annuity Company) has the right to redirect the management of the related assets to provide for benefit payments.  As ofMarch 31, 2016, employers maintained assets that exceeded the benefit obligations.Benefit obligations under these arrangements were $490million as of March 31, 2016and approximately 13% of these are reinsured by an affiliate of the buyer of the retirement benefits business. The remaining guarantees are provided by the Company with minimal reinsurance from third parties. There were no additional liabilities required for these guarantees as ofMarch 31, 2016.Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy.  See Note 7for further information on the 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. GMIB Contracts

Under these guarantees, the future payment amounts are dependent on underlying mutual fund investment values and interest rate levels prior to and at the date of annuitization election that must occur within 30 days of a policy anniversary after the appropriate waiting period. Therefore, the future payments are not fixed and determinable under the terms of these contracts. Accordingly, the Company calculated exposure, without considering any reinsurance coverage, using the following hypothetical assumptions:

• no annuitants surrendered their accounts;
• all annuitants lived to elect their benefit;
• all annuitants elected to receive their benefit on the next available date (2016 through 2022); and
• all underlying mutual fund investment values remained at the March 31, 2016 value of $908million with no future returns.

The Company has reinsurance coverage in place that covers the exposures on these contracts. Using these hypothetical assumptions, GMIB exposure is $802 million, which is lower than the recorded liability for GMIB calculated using fair value assumptions. See Notes 6, 7 and 9 for further information on GMIB contracts.

C. Certain Other Guarantees

The Company had indemnification obligations to lenders of up to $178 million as of March 31, 2016, related to borrowings by certain real estate joint ventures that the Company either records as an investment or consolidates. These borrowings, that are nonrecourse to the Company, are secured by the joint ventures' real estate properties with fair values in excess of the loan amounts and mature at various dates beginning in 2016 through 2021. The Company's indemnification obligations would require payment to lenders for any actual damages resulting from certain acts such as unauthorized ownership transfers, misappropriation of rental payments by others or environmental damages. Based on initial and ongoing reviews of property management and operations, the Company does not expect that payments will be required under these indemnification obligations. Any payments that might be required could be recovered through a refinancing or sale of the assets. In some cases, the Company also has recourse to partners for their proportionate share of amounts paid. There were no liabilities required for these indemnification obligations as of March 31, 2016.

As of March 31, 2016, the Company guaranteed that it would compensate the lessors for a shortfall of up to $41 million in the market value of certain leased equipment at the end of the leases. Guarantees of $16million expire in the fourth quarter of 2016 and $25million expire in 2022. The Company had liabilities for these guarantees of $14million as of March 31, 2016.

The Company does not expect that these guarantees will have a material adverse effect on the Company's consolidated results of operations, financial condition or liquidity.

The Company had indemnification obligations as of March 31, 2016in 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, the filing of tax returns, compliance with law or the 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, 2016.

D. 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. For the three months ended March 31, 2016 and 2015, charges related to guaranty fund assessments were immaterial to the Company's results of operations.

The Company is aware of an insurer that is in rehabilitation. In 2012, the state court denied the regulator's amended petitions for liquidation and set forth specific requirements and a deadline for the regulator to develop a plan of rehabilitation without liquidating the insurer. The regulator has appealed the court's decision. If the actions taken in the rehabilitation plan fail to improve this insurer's financial condition, or if the state court's ruling is overturned on appeal, this insurer may be forced into insolvency. In that event, the Company would be required to pay guaranty fund assessments related to this insurer. Due to the uncertainties surrounding this matter, the Company is unable to estimate the amount of any potential guaranty fund assessments. The Company is monitoring this situation.

E. Legal and Regulatory Matters

The Company is routinely involved in numerous claims, lawsuits, regulatory audits, investigations and other legal matters arising, for the most part, in the ordinary course of managing a health services business. These actions may include benefit disputes, breach of contract claims, tort claims, provider disputes, disputes regarding reinsurance arrangements, employment and employment discrimination-related suits, employee benefit claims, wage and hour claims, privacy, intellectual property claims and real estate-related disputes. There are currently, and may be in the future, attempts to bring class action lawsuits against the industry.The Company also is regularly engaged in IRS audits and may be subject to examinations by various state and foreign taxing authorities. Disputed income tax matters arising from these examinations, including those resulting in litigation, are accounted for under the FASB's guidance for uncertain tax positions. Further information on income tax matters can be found in Note 14.

The business of administering and insuring health services programs, particularly health care and group insurance programs, is heavily regulated by federal and state laws and administrative agencies, such as state departments of insurance and the U.S. Departments of Health and Human Services (“HHS”), Treasury, Labor and Justice, as well as the courts. Health care regulation and legislation in its various forms, including the implementation of Health Care Reform, other regulatory reform initiatives, such as those relating to Medicare programs, or additional changes in existing laws or regulations or their interpretations, could have a material adverse effect on the Company's business, results of operations and financial condition.

In addition, there is heightened review by federal and state regulators of the health care, disability and life insurance industry business and related reporting practices. Cigna is frequently the subject of regulatory market conduct reviews and other examinations of its business and reporting practices, audits and investigations by state insurance and health and welfare departments, state attorneys general, CMS and the Office of Inspector General (“OIG”). With respect to Cigna's Medicare Advantage business, the CMS and OIG perform audits to determine a health plan's compliance with federal regulations and contractual obligations, including compliance with proper coding practices (sometimes referred to as Risk Adjustment Data Validation audits or RADV audits), that may result in retrospective adjustments to payments made to health plans. Regulatory actions can result in assessments, civil or criminal fines or penalties or other sanctions, including loss of licensing or exclusion from participating in government programs.

As a global company, Cigna is also subject to the laws, regulations and rules of the foreign jurisdictions in which it conducts business. Foreign laws and rules, and regulatory audit and investigation practices, may differ from or be more stringent than, similar requirements in the U.S.

Regulation, legislation and judicial decisions have resulted in changes to industry and the Company's business practices, financial liability or other sanctions and will continue to do so in the future.

When the Company (in the course of its regular review of pending litigation and legal or regulatory matters) has determined that a material loss is reasonably possible, the matter is disclosed. Such matters are described in the Litigation Matters and Regulatory Matters sections below. In accordance with GAAP, when litigation and regulatory matters present loss contingencies that are both probable and estimable, the Company accrues the estimated loss by a charge to net income. The amount accrued represents the Company's best estimate of the probable loss at the time. If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in the Company's judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues the minimum amount of the range. In cases when the Company has accrued an estimated loss, the accrued amount may differ materially from the ultimate amount of the loss. In many proceedings, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount or range of any loss. The Company provides disclosure in the aggregate for material pending litigation and legal or regulatory matters, including accruals, range of loss, or a statement that such information cannot be estimated. As a litigation or regulatory matter develops, the Company monitors the matter for further developments that could affect the amount previously accrued, if any, and updates such amount accrued or disclosures previously provided as appropriate.

The outcome of litigation and other legal or regulatory matters is always uncertain, and unfavorable outcomes that are not justified by the evidence or existing law can occur. The Company believes that it has valid defenses to the matters pending against it and is defending itself vigorously. Except as otherwise noted, the Company believes that the legal actions, regulatory matters, proceedings and investigations currently pending against it should not have a material adverse effect on the Company's results of operations, financial condition or liquidity based upon current knowledge and taking into consideration current accruals. The Company had pre-tax reserves as of March 31, 2016of approximately $190 million ($125million after-tax) for thematters discussed below under the heading “Litigation Matters”. 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.

Litigation Matters

Amara cash balance pension plan litigation. In December, 2001, Janice Amara filed a class action lawsuit in the U.S. District Court for the District of Connecticut against Cigna Corporation and the Cigna Pension Plan (the “Plan”) on behalf of herself and other similarly situated Plan participants affected by the 1998 conversion to a cash balance formula.  The plaintiffs allege various violations of the Employee Retirement Income Security Act of 1974 (“ERISA”), including that the Plan's cash balance formula discriminates against older employees; that the conversion resulted in a wear-away period (when the pre-conversion accrued benefit exceeded the post-conversion benefit); and that the Plan communications contained inaccurate or inadequate disclosures about these conditions.

In 2008, the District Court (1) affirmed the Company's right to convert to a cash balance plan prospectively beginning in 1998; (2) found for plaintiffs on the disclosure claim only; and (3) required the Company to pay pre-1998 benefits under the pre-conversion traditional annuity formula and post-1997 benefits under the post-conversion cash balance formula.  The Second Circuit upheld this decision. From 2008 through the present, this case has undergone a series of court proceedings that resulted in the original District Court order being largely upheld. In 2015, the Company submitted to the District Court its proposed method for calculating the additional pension benefits due to class members and plaintiffs responded in August 2015.

In January 2016, the District Court ordered the method of calculating the additional pension benefits due to class members. The court order left several aspects of the calculation of additional plan benefits open to interpretation. The parties continue to work towards obtaining agreement around differences in interpretation. The timing of the resolution of these differences remains uncertain. Once resolved, the Plan will be amended to comply with the agreed-upon interpretation of the District Court's order and the benefits will begin to be paid. The Company's reserve for this litigation remains reasonable at March 31, 2016based on a calculation consistent with the Company's interpretation of the court order.

Ingenix.In April 2004, the Company was sued in a number of putative nationwide class actions alleging that the Company improperly underpaid claims for out-of-network providers through the use of data provided by Ingenix, Inc., a subsidiary of one of the Company's competitors. These actions were consolidated into Franco v. Connecticut General Life Insurance Company, et al., pending in the U.S. District Court for the District of New Jersey. The consolidated amended complaint, filed in 2009 on behalf of subscribers, health care providers and various medical associations, asserted claims related to benefits and disclosure under ERISA, the Racketeer Influenced and Corrupt Organizations (“RICO”) Act, the Sherman Antitrust Act and New Jersey state law and seeks recovery for alleged underpayments from 1998 through the present. Other major health insurers have been the subject of, or have settled, similar litigation.

In September 2011, the District Court (1) dismissed all claims by the health care provider and medical association plaintiffs for lack of standing; and (2) dismissed the antitrust claims, the New Jersey state law claims and the ERISA disclosure claim. In January 2013 and again in April 2014, the District Court denied separate motions by the plaintiffs to certify a nationwide class of subscriber plaintiffs. The Third Circuit denied plaintiff's request for an immediate appeal of the January 2013 ruling. As a result, the case is proceeding on behalf of the named plaintiffs only. In June 2014, the District Court granted the Company's motion for summary judgment to terminate all claims, and denied the plaintiffs' partial motion for summary judgment.  In July 2014, the plaintiffs appealed all of the District Court's decisions in favor of the Company, including the class certification decision, to the Third Circuit. On May 2, 2016, the Third Circuit affirmed the District Court's decisions denying class certification for the claims asserted by members, the granting of summary judgment on the individual plaintiffs' claims, as well as the dismissal of the antitrust claims. However, the Third Circuit also reversed the earlier dismissal of the providers' ERISA claims.The Company will continue to vigorously defend its position.

Regulatory Matters

CMS actions.In January 2016, CMS issued to the Company a Notice of Imposition of Immediate Intermediate Sanctions (“the Notice”). The Notice requires the Company to suspend certain enrollment and marketing activities for its Medicare Advantage-Prescription Drug and Medicare Part D Plans. The sanctions do not impact the ability of current enrollees to remain covered by the Company's Medicare Advantage-Prescription Drug or Medicare Part D Plans.

CMS imposed sanctions based on its finding of deficiencies with the Company's operations of its Parts C and D appeals and grievances, Part D formulary and benefit administration, and compliance program. The Company is working to resolve these matters as quickly as possible and is cooperating fully with CMS on its review. The Company does not expect the impact to its 2016 consolidated results of operations, financial condition or cash flows to be material.

Disability claims regulatory matter. During the second quarter of 2013, the Company finalized an agreement with the Departments of Insurance for Maine, Massachusetts, Pennsylvania, Connecticut and California (together, the “monitoring states”) related to the Company's long-term disability claims handling practices. Most other jurisdictions have joined the agreement as participating, non-monitoring states. As previously disclosed, the Company recorded a charge of $77 million before-tax ($51 million after-tax) in the first quarter of 2013 related to this matter. The agreement requires, among other things: (1) enhanced procedures related to documentation and disposition; (2) a two-year monitoring period followed by a re-examination that is scheduled to begin in the second quarter of 2016; and (3) reassessment of claims denied or closed during a two-year prior period, except California that has a three-year reassessment period. The Company is actively addressing the requirements of the agreement.

Other Legal Matters

Following announcement of the Company's merger agreement with Anthem as discussed in Note 3, putative class action complaints (collectively the “complaints” or “Cigna Merger Litigation”) were filed by purported Cigna shareholders on behalf of a purported class of Cigna shareholders. Additional lawsuits arising out of or relating to the merger agreement or the merger may be filed in the future.

Cigna, members of the Cigna board of directors, Anthem and Anthem Merger Sub Corp (“Merger Sub”) have been named as defendants. The plaintiffs generally assert that the members of the Cigna board of directors breached their fiduciary duties to the Cigna shareholders during merger negotiations and by entering into the merger agreement and approving the merger, and that Cigna, Anthem and Merger Sub aided and abetted such breaches of fiduciary duties. The allegations include, among other things, that (1) the merger consideration undervalues Cigna, (2) the sales process leading up to the merger was flawed due to purported conflicts of interest of members of the Cigna board of directors and (3) certain provisions of the merger agreement inappropriately favor Anthem and inhibit competing bids. Plaintiffs seek, among other things, injunctive relief enjoining the merger, rescission of the merger agreement to the extent already implemented, and costs and damages.

Effective November 24, 2015, solely to avoid the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing, the Company, the Company's directors, Anthem and Merger Sub entered into a Memorandum of Understanding (“MOU”) to settle the Cigna Merger Litigation. Subject to approval by the Connecticut Superior Court, Judicial District of Hartford and further definitive documentation in a settlement agreement that will be subject to customary conditions, the MOU resolved the Cigna Merger Litigation and provided that the Company would make certain additional disclosures related to the merger. If the Court approves the settlement, the Cigna Merger Litigation will be dismissed with prejudice and all claims that were or could have been brought in any actions challenging any aspect of the merger, the merger agreement and any related disclosures will be released. In connection with the settlement, subject to the ultimate determination of the Court, plaintiffs' counsel may receive an award of reasonable fees. There can be no assurance that the parties will ultimately enter into a settlement agreement, or that the Court will approve the settlement even if the parties were to enter into such agreement. The MOU may terminate, if, among other reasons, the Court does not approve the settlement or the merger is not consummated for any reason.

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Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

Note 1– Basis of Presentation and Significant Events

Basis of Presentation

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 dedicated to a mission of helping individuals improve their health, well-being and sense of security. To execute on our mission, Cigna's strategy is to “Go Deep”, “Go Global” and “Go Individual” with a differentiated set of medical, dental, disability, life and accident insurance and related products and services offered by our insurance and other subsidiaries. The majority of these products are offered through employers and other groups (e.g. 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 U.S. and selected international markets. In addition to its ongoing operations described above, Cigna also has certain run-off operations.

The Consolidated Financial Statements include the accounts of Cigna Corporation and its 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 valuation, 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. Certain reclassifications have been made to prior year amounts to conform to the current presentation. See Note 2 for further discussion.

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 Company's 2015 Form 10-K.The preparation of interim Consolidated Financial Statements necessarily relies heavily on estimates. This and certain other factors, including the seasonal nature of portions of the health care and related benefits business as well as competitive and other market conditions, call for caution in estimating full year results based on interim results of operations.

Changes in Accounting Pronouncements

Note 2 – Recent Accounting Changes

The Company's 2015 Form 10-K includes discussion of significant recent accounting changes that either have impacted or may impact our financial statements in the future. The following issuances of, and changes in, accounting pronouncements that apply to the Company have occurred since the Company filed its 2015Form 10-K.

Recently Adopted Accounting Guidance

Amendments to the Consolidation Analysis (Accounting Standards Update (“ASU”) 2015-02). The Company adopted this new consolidation guidance effective January 1, 2016 with no material effect on its financial statements. Among other provisions, the guidance defines limited partnerships as VIEs unless substantive kick-out rights or participating rights exist. See Note 10 for additional disclosures about various real estate and security limited partnerships that are newly identified as variable interest entities for which the Company is not the primary beneficiary.

Improvements to Employee Share-Based Payment Accounting (ASU 2016-09).In March 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance that changes the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled, requires cash flows related to the excess tax benefits to be classified as an operating activity in the statement of cash flows, permits repurchasing more of an employee's shares for tax withholding purposes without triggering liability accounting, clarifies that all cash payments made on an employee's behalf for withheld shares are to be presented as a financing activity in the statement of cash flows, and provides an accounting policy election to account for forfeitures as they occur. In addition, the new guidance changes the calculation of common stock equivalents for earnings per share purposes.  The new standard is required to be adopted as of January 1, 2017.

As permitted, the Company elected to early adopt the new guidance effective January 1, 2016.  Adopting this new guidance resulted in $23 million of tax benefits recorded in net income in the first quarter of 2016 in Corporate that previously would have been reported in additional paid-in capital.  The change in the calculation of common stock equivalents added approximately one million weighted average shares for the diluted earnings per share calculations.  The Company applied these provisions prospectively.

The Company applied the provisions of the new guidance related to the presentation of employee taxes paid for withheld shares retrospectively that resulted in reclassifying $73 million of tax withholding from operating to financing activities in its Consolidated Statement of Cash Flows for the three months ended March 31, 2015.  For the three months ended March 31, 2016, the Company reflected $67 million of tax withholding in financing activities.  The ability under the new guidance to repurchase more employee shares for tax withholding purposes had no impact on the Company's financial statements.  The Company elected to continue to estimate forfeitures expected to occur to determine the amount of compensation cost to be recognized in each period.

Disclosures for Investments in CertainEntities That Calculate Net Asset Value perShare (or Its Equivalent) (ASU 2015-07). This amendment removed the requirement to categorize all investments for which fair value is measured using the practical expedient of net asset value (“NAV”) per share within the fair value hierarchy. The Company adopted this new guidance effective January 1, 2016. Upon adoption, the Company began to separately disclose certain Separate Account investments and provided comparable prior period disclosure. See Note 7 for this separate disclosure information.

Recently Issued Accounting Guidance Not Yet Adopted

Revenue from Contracts with Customers (ASU 2014-09). During 2016, the Financial Accounting Standards Board (“FASB”) has issued two new ASUs further clarifying the broader revenue guidance: 1) “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” (ASU 2016-08) that clarifies the definition of principals and agents and 2)  “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing” (ASU 2016-10) that clarifies guidance and adds examples to help companies properly identify performance obligations.  This ASU also illustrates when a license provides a customer with a right to use (point in time) versus a right to access (over time) benefit.

These clarifications, together with the broader revenue recognition guidance within ASU 2014-09, are required to be adopted beginning January 1, 2018.  The Company continues to monitor developing implementation guidance and evaluate these new requirements for its non-insurance customer contracts to determine its method and timing of implementation and any resulting estimated effects on its financial statements.

Investments

Review of declines in fair value. Management reviews fixed maturities with a decline in fair value from cost for impairment based on criteria that include:

• length of time and severity of decline;

• financial health and specific near term prospects of the issuer;
• changes in the regulatory, economic or general market environment of the issuer's industry or geographic region; and
• the Company's intent to sell or the likelihood of a required sale prior torecovery.

Equity securities also include hybrid investments consisting of preferred stock with call features that are carried at fair value with changes in fair value reported in other realized investment gains (losses) and dividends reported in net investment income.

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 originationthat is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on an ongoing basis, classifying each loan as a loan in good standing, potential problem loan or problem loan.

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 most recent review was completed by the Company's investment professionals in the second quarter of 2015 and 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 property values and cash flows estimated as part of this review and subsequent fundings and repayments, the portfolio's average loan-to-value ratio remained at 58% and the portfolio's average debt service coverage ratio remained at 1.78 atMarch 31, 2016 when compared to these same metrics at December 31, 2015.

The Company will reevaluate 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.

Potential problem mortgage loans are considered current (no payment is more than 59 days past due), but exhibit certain characteristics that increase the likelihood of future default. The characteristics management considers include, but are not limited to, the deterioration of debt service coverage below 1.0, estimated loan-to-value ratios increasing to 100% or more, downgrade in quality rating and requests from the borrower for restructuring. In addition, loans are considered potential problems if principal or interest payments are past due by more than 30 but less than 60 days. Problem mortgage loans are either in default by 60 days or more or have been restructured as to terms, which could include concessions on interest rate, principal payment or maturity date. The Company monitors each problem and potential problem mortgage loan on an ongoing basis, and updates the loan categorization and quality rating when warranted.

Impaired commercial mortgage loans. A commercial mortgage loan is considered impaired when it is probable that the Company will not collect all amounts due according to the terms of the original loan agreement. These loans are included in either problem or potential problem loans. The Company monitors credit risk and assesses the impairment of loans individually and on a consistent basis for all loans in the portfolio. Impaired loans are carried at the lower of unpaid principal balance or the fair value of the underlying real estate. Certain commercial mortgage loans without valuation reserves are considered impaired because the Company will not collect all interest due according to the terms of the original agreements; however, the Company expects to recover the unpaid principal because it is less than the fair value of the underlying real estate.

Because of the risk profile of the underlying investment, the Company recognizes interest income on impaired mortgage loans only when payment is actually received.

Future Policy Benefits

The Company estimates this liability with an internal model based on the Company's experience and future expectations over an extended period, consistent with the long-term nature of this product. Because the product is premium deficient, the Company records increases to the reserve if it is inadequate based on the model. As a result of the reinsurance transaction, reserve increases have a corresponding increase in the recorded reinsurance recoverable, provided the increased recoverable remains within the overall Berkshire limit (including the GMIB assets).

Fair Value Measurements

Note7―Fair Value Measurements

The Company carries certain financial instruments at fair value in the financial statements including fixed maturities, equity securities, short-term investments and derivatives. Other financial instruments are measured at fair value under certain conditions, such as when impaired.

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 may 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, as well as designating 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. Annually, we conduct an on-site visit of the most significant pricing service to review their processes, methodologies and controls. This on-site review includes a walk-through of inputs of a sample of securities held across various asset types to validate the documented pricing process.

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.Given the narrow definition of Level 1 and the Company's investment asset strategy to maximize investment returns, a relatively small portion of the Company's investment assets are classified in this category.

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.

Fixed maturities and equity securities.Approximately95% of the Company's investments in fixed maturities and equity securities are classified in Level 2 including most public and private corporate debt and equity securities, federal agency and municipal bonds, non-government mortgage-backed securities and preferred stocks.  Because many fixed maturities do not trade daily, third-party pricing services and internal methods often use recent trades of securities with similar features and characteristics. When recent trades are not available, pricing models are used to determine these prices.  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 thatare 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 which approximates cost. On a regular basis, the Company compares market prices for these securities to recorded amounts 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.

Other derivatives classified in Level 2 represent over-the-counter instruments such as interest rate and foreign currency 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 counterpartiesand determined that no adjustment for credit risk was required as of March 31, 2016 or December 31, 2015.  Level 2 also includes exchange-traded interest rate swap contracts. Credit risk related to the clearinghouse counterparty and the Company is considered minimal when estimating the fair values of these derivatives because of upfront margin deposits and daily settlement requirements. The nature and use of these other derivatives are described in Note 9.

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, as well as assets and liabilities relating to GMIB, in Level 3.

Fair values of other asset and mortgage-backed securities, corporate and government fixed maturities 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.  For other asset and mortgage-backed securities, inputs and assumptions for pricing may also include collateral attributes and prepayment speeds.  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.

The significant unobservable inputs used to value the following other asset and mortgage-backed securities are liquidity and weighting of credit spreads. When there is limited trading activity for the security, an adjustment for liquidity is made as of the measurement date that considers current market conditions, issuer circumstances and complexity of the security structure. 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. The resulting wide range of unobservable adjustments in the table below is due to the varying liquidity and quality of the underlying collateral, ranging from high credit quality to below investment grade.

The significant unobservable input used to value the following corporate and government fixed maturities is an adjustment for liquidity. When there is limited trading activity for the security, an adjustment is needed to reflect current market conditions and issuer circumstances.

The significant unobservable input used to value the following equity securities is a multiple of earnings before interest, taxes, depreciation and amortization (“EBITDA”). These securities are comprised of private equity investments with limited trading activity and therefore a ratio of EBITDA is used to estimate value based on company circumstances and relative risk characteristics.

As discussed in Note 6,the Company effectively exited the GMIB business in 2013. Although theseGMIB assets and liabilities must continue to be reported as derivatives at fair value, the only assumption that is expected to impact future shareholders' net income is the risk of non-performance. This assumption reflects a market participant's view of (a) the risk of a subsidiary of the Company not fulfilling its GMIB obligations (GMIB liabilities) and (b) the credit risk that the reinsurers do not pay their obligations (GMIB assets).

The Company reports GMIB liabilities and assets as derivatives at fair value because the cash flows of these liabilities and assets are affected by equity markets and interest rates, but are without significant life insurance risk and are settled in lump sum payments. Under the terms of these written and purchased contracts, the Company periodically receives and pays fees based on either contractholders' account values or deposits increased at a contractual rate. The Company will also pay and receive cash depending on account values and interest rates when contractholderselect to begin to receive minimum income payments. The Company estimates the fair value of the assets and liabilities for GMIB contracts by calculating the results for many scenarios run through a model utilizing various assumptions that include non-performance risk, among other things.

The non-performance risk adjustment is incorporated by adding an additional spread to the discount rate in the calculation of both (a) the GMIB liabilities to reflect a market participant's view of the risk of a subsidiary of the Company not fulfilling its GMIB obligations, and (b) the GMIB assets to reflect a market participant's view of the credit risk of the reinsurers, after considering collateral.

Other assumptionsthat affect GMIB assets and liabilities include capital

market assumptions (including market returns, interest rates and market volatilities of the underlying equity and bond mutual fund investments) and future annuitant behavior (including mortality, lapse and annuity election rates). As certain assumptions used to estimate fair values for these contracts are largely unobservable (primarily related to future annuitant behavior), the Company classifies GMIB assets and liabilities in Level 3.

The Company regularly evaluates each of the assumptions used in establishing these assets and liabilities. Significant decreases in assumed lapse rates or spreads used to calculate non-performance risk, or increases in assumed annuity election rates, would result in higher fair value measurements. A change in one of these assumptions is not necessarily accompanied by a change in another assumption.

GMIB liabilities are reported in the Company's Consolidated Balance Sheets in accounts payable, accrued expenses and other liabilities.  GMIB assets associated with these contracts represent net receivables in connection with reinsurance that the Company has purchased from three external reinsurers and are reported in the Company's Consolidated Balance Sheets in other assets, including other intangibles.

Significant increases in fixed maturity spreads would result in a lower fair value measurement while decreases in these inputs would result in a higher fair value measurement. Significant decreases in equity price-to-earnings multiples would result in a lower fair value measurement while increases in these inputs would result in a higher fair value measurement. Generally, the unobservable inputs are not interrelated and a change in the assumption used for one unobservable input is not accompanied by a change in the other unobservable input.

As noted in the tables above, total gains and losses included in shareholders' net income are reflected in the following captions in the Consolidated Statements of Income:

• Realized investment gains (losses) and net investment income for amounts related to fixed maturities and equity securities and realized investment gains (losses) for the impact of changes in non-performance risk related to GMIB assets and liabilities, similar to hedge ineffectiveness; and
• Other operating expenses for amounts related to GMIB assets and liabilities (GMIB fair value gain/loss), except for the impact of changes in non-performance risk.

In the tables above, gains and losses included in other comprehensive income are reflected in net unrealized appreciation (depreciation) on securities in the Consolidated Statements of Comprehensive Income.

Reclassifications impacting Level 3 financial instruments are reported as transfers into or out of the Level 3 category as of the beginning of the quarter in which the transfer occurs. Therefore gains and losses in income only reflect activity for the periodthe instrument was classified in Level 3. 

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. For thethree months ended March 31, 2016, transfers between Level 2and Level 3 primarily reflectchanges in liquidity and credit risk estimates for certain private placement issuers in the metals, mining and energy sectors.For the three months ended March 31, 2015,transfers out of Level 3 primarily reflect a change in the significance of the unobservable inputs related to liquidity and credit estimates used to value several private corporate bonds.

Separate account assets

Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are excluded from the Company's revenues and expenses.  Beginning in 2016, investments that are measured using the practical expedient ofnet asset value are excluded from the fair value hierarchy.

Separate account assets in 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 and separate accounts priced using the daily net asset value that is the exit price.

Separate account assets classified in Level 3 include certain newly issued, privately-placed, complex, or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans that are valued according to the methodologies discussed below.

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.

Some financial assets and liabilitiesare not carried at fair value each reporting period, but may be measured using fair value only under certain conditions, such as investments in real estate entities and commercial mortgage loans when they become impaired.

Commercial mortgage loans. The Company estimates the fair value of commercial mortgage loans generally by discounting the contractual cash flows at estimated market interest rates that reflect the Company's assessment of the credit quality of the loans. Market interest rates are derived by calculating the appropriate spread over comparable U.S. Treasury rates, based on the property type, quality rating and average life of the loan. The quality ratings reflect the relative risk of the loan, considering debt service coverage, the loan-to-value ratio and other factors. Fair values of impaired mortgage loans are based on the estimated fair value of the underlying collateral generally determined using an internal discounted cash flow model.The fair value measurements were classified in Level 3 because the cash flow models incorporate significant unobservable inputs.

Contractholder deposit funds, excluding universal life products.Generally, these funds do not have stated maturities. Approximately 65% of these balances can be withdrawn by the customer at any time without prior notice or penalty. The fair value for these contracts is the amount estimated to be payable to the customer as of the reporting date, which is generally the carrying value. Most of the remaining contractholder deposit funds are reinsured by the buyers of the individual life and annuity and retirement benefits businesses. The fair value for these contracts is determined using the fair value of these buyers' assets supporting these reinsured contracts. The Company had reinsurance recoverables equal to the carrying value of these reinsured contracts.These instruments were classified in Level 3 because certain inputs are unobservable (supported by little or no market activity) and significant to their resulting fair value measurement.

Long-term debt, including current maturities, excluding capital leases.The fair value of long-term debt is based on quoted market prices for recent trades. When quoted market prices are not available, fair value is estimated using a discounted cash flow analysis and the Company's estimated current borrowing rate for debt of similar terms and remaining maturities.These measurements were classified in Level 2 because the fair values are based on quoted market prices or other inputs that are market observable or can be corroborated by market data.

Derivative Financial Instruments

Using cash flow hedge accounting, fair values are reported in other long-term investments or accounts payable, accrued expenses and other liabilities. Changes in fair value are reported in accumulated other comprehensive income and amortized into net investment income or reported in other realized investment gains and losses as interest or principal payments are received.

Under the terms of these various contracts, the Company periodically exchanges cash flows between variable and fixed interest rates or between two currencies for both principal and interest. Foreign currency and combination swaps are primarily Euros,Australian dollars,Canadian dollars, Japanese yen and British pounds and have terms for periods of up to five years. Net interest cash flows are reported in operating activities.

Using fair value hedge accounting, the fair values of the swap contracts are reported in other assets, including other intangibles, or accounts payable, accrued expenses and other liabilities. As the critical terms of these swaps match those of the long-term debt being hedged, the carrying value of the hedged debt is adjusted to reflect changes in its fair value driven by LIBOR. The effects of those adjustments on other operating expenses are offset by the effects of corresponding changes in the swaps' fair value, including interest expense for the difference between the variable and fixed interest rates.

Under the terms of these contracts, the Company provides upfront margin and settles fair value changes and net interest between variable and fixed interest rates daily with a central clearinghouse. Net interest cash flows are reported in operating activities.

Variable Interest Entities

Note 10 – Variable Interest Entities

When the Company becomes involved with a variable interest entity, as well as when there is a change in the Company's involvement with an entity, the Company evaluates the following to determine if it is the primary beneficiary and must consolidate the entity:

• the structure and purpose of the entity;
• the risks and rewards created by and shared through the entity; and
• the Company's ability to direct its activities, receive its benefits and absorb its losses relative to the other parties involved with the entity including its sponsors, equity holders, guarantors, creditors and servicers.

In the normal course of its investing activities, the Company makes passive investments in securities that are issued by variable interest entities for which the Company is not the sponsor or manager. These investments are predominantly asset-backed securities primarily collateralized by foreign bank obligations or mortgage-backed securities. The asset-backed securities largely represent fixed-rate debt securities issued by trusts that hold perpetual floating-rate subordinated notes issued by foreign banks. The mortgage-backed securities represent senior interests in pools of commercial or residential mortgages created and held by special-purpose entities to provide investors with diversified exposure to these assets. The Company owns senior securities issued by several entities and receives fixed-rate cash flows from the underlying assets in the pools. The Company's maximum potential exposure to loss related to these investments is limited to the carrying amount of $0.6billion as of March 31, 2016, that is reported in fixed maturities. The Company's combined ownership interests are insignificant relative to the total principal amounts issued by these entities.

The Company also owns interests in security and real estate limited partnerships that are variable interest entities. These partnerships make investments in the equity or mezzanine debt of privately held companies and real estate properties. General partners unaffiliated with the Company control decisions that most significantly impact the partnership's operations and the limited partners do not have substantive kick-out or participating rights. The Company's maximum exposure to these entities of $1.9 billion across approximately 90 limited partnerships includes $1.0 billion reported in other long-term investments and commitments to contribute an additional $0.9 billion as of March 31, 2016. The Company's non-controlling interest in these limited partnerships is generally less than 10%.

To provide certain services to its Medicare Advantage customers, the Company contracts with independent physician associations (“IPAs”) that are variable interest entities. Physicians provide health care services to Medicare Advantage customers and the Company provides medical management and administrative services to the IPAs. The Company's maximum exposure to loss related to the IPA arrangements is limited to their liability for incurred but not reported medical costs for the Company's Medicare Advantage customers. These liabilities are not material and are generally secured by deposits maintained by the IPAs.

The Company is not the primary beneficiary and does not consolidate these entities because either:

• it has no power to direct the activities that most significantly impact the entities' economic performance; or
• it has neither the right to receive benefits nor the obligation to absorb losses that could be significant to these variable interest entities.

The Company has not provided, and does not intend to provide, financial support to these entities that it is not contractually required to provide. The Company performs ongoing qualitative analyses of its involvement with these variable interest entities to determine if consolidation is required.

Accumulated Other Comprehensive Income

Accumulated other comprehensive income (loss) excludes amounts required to adjust future policy benefits for the run-off settlement annuity business and a portion of deferred acquisition costs associated with the corporate owned life insurance business.

Income taxes on undistributed earnings of certain foreign operations

As part of its global capital management strategy, the Company's foreign operations retain a significant portion of their earnings overseas. These undistributed earnings are deployed outside of the U.S. in support of the liquidity and capital needs of our foreign operations. The Company does not intend to repatriate these earnings to the U.S. and as a result, income taxes are provided using the respective foreign jurisdictions' tax rate.

Commitments and Contingencies

When the Company (in the course of its regular review of pending litigation and legal or regulatory matters) has determined that a material loss is reasonably possible, the matter is disclosed. Such matters are described in the Litigation Matters and Regulatory Matters sections below. In accordance with GAAP, when litigation and regulatory matters present loss contingencies that are both probable and estimable, the Company accrues the estimated loss by a charge to net income. The amount accrued represents the Company's best estimate of the probable loss at the time. If only a range of estimated losses can be determined, the Company accrues an amount within the range that, in the Company's judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, the Company accrues the minimum amount of the range. In cases when the Company has accrued an estimated loss, the accrued amount may differ materially from the ultimate amount of the loss. In many proceedings, it is inherently difficult to determine whether any loss is probable or even possible or to estimate the amount or range of any loss. The Company provides disclosure in the aggregate for material pending litigation and legal or regulatory matters, including accruals, range of loss, or a statement that such information cannot be estimated. As a litigation or regulatory matter develops, the Company monitors the matter for further developments that could affect the amount previously accrued, if any, and updates such amount accrued or disclosures previously provided as appropriate.

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings per Share

			Effect of
(Shares in thousands, dollars in millions, except per share amounts)	Basic		Dilution		Diluted
Three Months Ended March 31,
2016
Shareholders' net income	$	519			$	519
Shares:
Weighted average		254,822				254,822
Common stock equivalents				4,625		4,625
Total shares		254,822		4,625		259,447
EPS	$	2.04	$	(0.04)	$	2.00
2015
Shareholders' net income	$	533			$	533
Shares:
Weighted average		256,707				256,707
Common stock equivalents				4,539		4,539
Total shares		256,707		4,539		261,246
EPS	$	2.08	$	(0.04)	$	2.04

Antidilutive Options Table

	Three Months Ended
	March 31,
(In millions)	2016	2015
Anti-dilutive options	1.3	1.4

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Global Health Care Medical Costs Payable (Tables) - Global Health Benefits Segment [Member]

3 Months Ended

Mar. 31, 2016

Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]

Schedule of medical costs payable balance

	March 31,		December 31,
(In millions)	2016		2015
Incurred but not yet reported	$	1,960	$	1,757
Reported claims in process		506		470
Physician incentives and other medical care expenses and services payable		180		128
Global Health Care medical costs payable	$	2,646	$	2,355

Schedule of medical costs payable activity

	For the period ended
	March 31,		December 31,
(In millions)	2016		2015
Balance at January 1,	$	2,355	$	2,180
Less: Reinsurance and other amounts recoverable		243		252
Balance at January 1, net		2,112		1,928
Incurred costs related to:
Current year		4,825		18,564
Prior years		(64)		(210)
Total incurred		4,761		18,354
Paid costs related to:
Current year		2,985		16,588
Prior years		1,449		1,582
Total paid		4,434		18,170
Ending Balance, net		2,439		2,112
Add: Reinsurance and other amounts recoverable		207		243
Ending Balance	$	2,646	$	2,355

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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2016

Effects Of Reinsurance [Line Items]

Effects of Reinsurance

	Three Months Ended
	March 31,
(In millions)	2016		2015
Ceded premiums
Individual life insurance and annuity business sold	$	41	$	41
Other		95		89
Total	$	136	$	130
Reinsurance recoveries
Individual life insurance and annuity business sold	$	68	$	86
Other		96		73
Total	$	164	$	159

Reinsurance Recoverables

(In millions)
		March 31,		December 31,		Collateral and Other Terms
Line of Business	Reinsurer(s)	2016		2015		at March 31, 2016
GMDB	Berkshire	$	1,156	$	1,123	100% secured by assets in a trust.
	Other		45		41	100% secured by assets in a trust or letter of credit.
Individual Life and Annuity (sold in 1998)	Lincoln National Life and Lincoln Life & Annuity of New York		3,659		3,705	Both companies' ratings are sufficient to avoid triggering a contractual obligation to fully secure the outstanding balance.
Retirement Benefits Business (sold in 2004)	Prudential Retirement Insurance and Annuity		976		995	100% secured by assets in a trust.
Supplemental Benefits Business (2012 acquisition)	Great American Life		312		315	100% secured by assets in a trust.
Global Health Care, Global Supplemental Benefits, Group Disability and Life	Various		497		553	Recoverables from approximately 80 reinsurers, including the U.S. Government, used in the ordinary course of business. Excluding the recoverable from the U.S. Government of approximately $100 million, current balances range from less than $1 million up to $90 million, with 18% secured by assets in trusts or letters of credit.
Other run-off reinsurance	Various		80		81	100% of this balance is secured by assets in trusts.
Total reinsurance recoverables		$	6,725	$	6,813

Variable Annuity [Member] | Guaranteed Minimum Death Benefit [Member]

Effects Of Reinsurance [Line Items]

Future policy benefits for GMDB business

	For the period ended
	March 31,		December 31,
(In millions)	2016		2015
Balance at January 1	$	1,252	$	1,270
Add: Unpaid claims		18		16
Less: Reinsurance and other amounts recoverable		1,164		1,186
Balance at January 1, net		106		100
Add: Incurred benefits		1		3
Less: Paid benefits		-		(3)
Ending balance, net		107		106
Less: Unpaid claims		22		18
Add: Reinsurance and other amounts recoverable		1,201		1,164
Ending balance	$	1,286	$	1,252

Account value, net amount at risk, contractholder average age

(Dollars in millions, excludes impact of reinsurance ceded)	March 31, 2016		December 31, 2015
Account value	$	10,977	$	11,355
Net amount at risk	$	2,854	$	2,870
Number of contractholders		318,000		324,000

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Financial assets and liabilities carried at fair value

	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In millions)	(Level 1)		(Level 2)		(Level 3)		Total
March 31, 2016
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	183	$	569	$	-	$	752
State and local government		-		1,603		-		1,603
Foreign government		-		2,068		4		2,072
Corporate		-		14,661		406		15,067
Mortgage-backed		-		40		1		41
Other asset-backed		-		243		309		552
Total fixed maturities (1)		183		19,184		720		20,087
Equity securities		33		89		72		194
Subtotal		216		19,273		792		20,281
Short-term investments		-		465		-		465
GMIB assets (2)		-		-		957		957
Other derivative assets (3)		-		11		-		11
Total financial assets at fair value, excluding separate accounts	$	216	$	19,749	$	1,749	$	21,714
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	941	$	941
Other derivative liabilities		-		1		-		1
Total financial liabilities at fair value	$	-	$	1	$	941	$	942
December 31, 2015
Financial assets at fair value:
Fixed maturities:
Federal government and agency	$	251	$	528	$	-	$	779
State and local government		-		1,641		-		1,641
Foreign government		-		2,010		4		2,014
Corporate		-		14,122		326		14,448
Mortgage-backed		-		48		1		49
Other asset-backed		-		198		326		524
Total fixed maturities (1)		251		18,547		657		19,455
Equity securities		32		89		69		190
Subtotal		283		18,636		726		19,645
Short-term investments		-		381		-		381
GMIB assets (2)		-		-		907		907
Other derivative assets (3)		-		16		-		16
Total financial assets at fair value, excluding separate accounts	$	283	$	19,033	$	1,633	$	20,949
Financial liabilities at fair value:
GMIB liabilities	$	-	$	-	$	885	$	885
Total financial liabilities at fair value	$	-	$	-	$	885	$	885

(1) Fixed maturities included $622 million as of March 31, 2016 and $483 million as of December 31, 2015 of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $42 million as of March 31, 2016 and $30 million as of December 31, 2015 of appreciation for securities classified in Level 3. See Note 8 for additional information.

(2) The GMIB assets represent retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts.

(3) Other derivative assets included $10 million as of March 31, 2016 and $15 million as of December 31, 2015 of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million as of March 31, 2016andDecember 31, 2015 of interest rate swaps qualifying as fair value hedges. See Note 9 for additional information.

Level 3 fixed maturities and equity securities priced using significant unobservable inputs

			Unobservable Input	Unobservable Adjustment Range (Weighted Average)
(Fair value in millions)		Fair Value
As of March 31, 2016
Fixed maturities:
Other asset and mortgage-backed securities	$	310	Liquidity	60 - 450 (190) bps
			Weighting of credit spreads	180 - 680 (230) bps
Corporate and government fixed maturities		360	Liquidity	70 - 1,150 (360) bps
Total fixed maturities		670
Equity securities		72	Price-to-earnings multiples	4.2 - 11.6 (8.2)
Subtotal		742
Securities not priced by the Company(1)		50
Total Level 3 securities	$	792
As of December 31, 2015
Fixed maturities:
Other asset and mortgage-backed securities	$	327	Liquidity	60 - 440 (200) bps
			Weighting of credit spreads	170 - 630 (220) bps
Corporate and government fixed maturities		285	Liquidity	70 - 930 (280) bps
Total fixed maturities		612
Equity securities		69	Price-to-earnings multiples	4.2 - 11.6 (8.3)
Subtotal		681
Securities not priced by the Company(1)		45
Total Level 3 securities	$	726
(1) The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.

Changes in level 3 financial assets and liabilities carried at fair value

For the Three Months Ended March 31, 2016	Changes in Level 3 financial assets and financial liabilities
(In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at January 1, 2016	$	726	$	907	$	(885)	$	22
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		61		(61)		-
Other		(25)		(1)		(5)		(6)
Total gains (losses) included in shareholders' net income		(25)		60		(66)		(6)
Gains included in other comprehensive income		-		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)		11		-		-		-
Purchases, sales and settlements:
Purchases		24		-		-		-
Sales		-		-		-		-
Settlements		(11)		(10)		10		-
Total purchases, sales and settlements		13		(10)		10		-
Transfers into/(out of) Level 3:
Transfers into Level 3		128		-		-		-
Transfers out of Level 3		(61)		-		-		-
Total transfers into/(out of) Level 3		67		-		-		-
Balance at March 31, 2016	$	792	$	957	$	(941)	$	16
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	(25)	$	60	$	(66)	$	(6)
For the Three Months Ended March 31, 2015	Changes in Level 3 financial assets and financial liabilities
(In millions)	Fixed Maturities & Equity Securities		GMIB Assets		GMIB Liabilities		GMIB Net
Balance at January 1, 2015	$	857	$	953	$	(929)	$	24
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		-		27		(27)		-
Other		13		(1)		(1)		(2)
Total gains (losses) included in shareholders' net income		13		26		(28)		(2)
Gains included in other comprehensive income		2		-		-		-
Gains required to adjust future policy benefits for settlement annuities (1)		6		-		-		-
Purchases, sales and settlements:
Purchases		11		-		-		-
Sales		(18)		-		-		-
Settlements		(3)		(9)		9		-
Total purchases, sales and settlements		(10)		(9)		9		-
Transfers into/(out of) Level 3:
Transfers into Level 3		1		-		-		-
Transfers out of Level 3		(51)		-		-		-
Total transfers into/(out of) Level 3		(50)		-		-		-
Balance at March 31, 2015	$	818	$	970	$	(948)	$	22
Total gains (losses) included in shareholders' net income attributable
to instruments held at the reporting date	$	-	$	26	$	(28)	$	(2)
(1) Amounts do not accrue to shareholders.

Separate account assets schedule

(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, 2016
Guaranteed separate accounts (See Note 16)	$	231	$	273	$	-	$	504
Non-guaranteed separate accounts (1)		1,372		4,862		317		6,551
Subtotal	$	1,603	$	5,135	$	317		7,055
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)								930
Total separate account assets							$	7,985
December 31, 2015
Guaranteed separate accounts (See Note 16)	$	235	$	274	$	-	$	509
Non-guaranteed separate accounts (1)		1,401		4,698		297		6,396
Subtotal	$	1,636	$	4,972	$	297		6,905
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)								928
Total separate account assets							$	7,833

(1) Non-guaranteed separate accounts as of March 31, 2016 and December 31, 2015 included $3.6 billion in assets supporting the Company's pension plans, with$0.3billion classified in Level 3 and $0.9 billion priced at NAV, as a practical expedient.

Changes in level 3 separate account assets

	Three Months Ended
	March 31,
(In millions)	2016		2015
Balance, beginning of period	$	297	$	255
Policyholder gains (losses)		(1)		1
Purchases, sales and settlements:
Purchases		4		10
Sales		(1)		-
Settlements		(2)		(3)
Total purchases, sales and settlements		1		7
Transfers into/(out of) Level 3:
Transfers into Level 3		23		-
Transfers out of Level 3		(3)		(4)
Total transfers into/(out of) Level 3		20		(4)
Balance, end of period	$	317	$	259

Separate account assets priced at net asset value

	Fair Value as of
(In millions)	March 31, 2016		December 31, 2015		Unfunded Commitments		Redemption Frequency (if currently eligible)*	Redemption Notice Period*
Security Partnerships	$	432	$	406	$	274	Not applicable	Not applicable
Real Estate Funds		266		261	0		Quarterly	45-90 days
Hedge Funds		232		261		0	Up to Annually, varying by fund	30-90 days
Total	$	930	$	928	$	274

* The attributes notedare effective as of March 31, 2016 and December 31, 2015.

Financial instruments not carried at fair value

(In millions)			March 31, 2016				December 31, 2015
	Classification in the Fair Value Hierarchy		Fair Value		Carrying Value		Fair Value		Carrying Value
Commercial mortgage loans	Level 3	$	1,903	$	1,848	$	1,911	$	1,864
Contractholder deposit funds, excluding universal life products	Level 3	$	1,195	$	1,187	$	1,151	$	1,148
Long-term debt, including current maturities, excluding capital leases	Level 2	$	5,573	$	5,040	$	5,515	$	5,020

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Investments (Tables)

3 Months Ended

Mar. 31, 2016

Investment [Line Items]

Realized Investment Gains and Losses

	Three Months Ended
	March 31,
(In millions)	2016		2015
Fixed maturities	$	(18)	$	7
Equity securities		(10)		13
Commercial mortgage loans		-		5
Other investments, including derivatives		(4)		48
Realized investment gains (losses) before income taxes		(32)		73
Less income taxes (benefits)		(11)		25
Net realized investment gains (losses)	$	(21)	$	48

Asset write-downs and changes in valuation reserves

	Three Months Ended
	March 31,
(In millions)	2016		2015
Other-than-temporary impairments on debt securities:
Credit-related	$	(18)	$	-
Non credit-related (1)		(9)		(5)
Total other-than-temporary impairments on debt securities		(27)		(5)
Other asset write-downs (2)		(9)		(6)
Total	$	(36)	$	(11)
(1) These write-downs pertain to other-than-temporary declines in fair values due to increases in market yields (widening of credit spreads), particularly within the energy sector, for certain below investment grade fixed maturities with an increased probability of sales activity prior to recovery of amortized cost basis.
(2) Other asset write-downs include other-than-temporary declines in fair values of equity securities and asset writedowns related to real estate investments.

Sales of available-for-sale fixed maturities and equity securities

	Three Months Ended
	March 31,
(In millions)	2016		2015
Proceeds from sales	$	361	$	393
Gross gains on sales	$	12	$	27
Gross losses on sales	$	5	$	2

Amortized cost and fair value by maturity period for fixed maturities

		Amortized		Fair
(In millions)		Cost		Value
Due in one year or less	$	1,533	$	1,541
Due after one year through five years		6,359		6,652
Due after five years through ten years		6,888		7,216
Due after ten years		3,352		4,085
Mortgage and other asset-backed securities		552		593
Total	$	18,684	$	20,087

Gross unrealized appreciation (depreciation) fixed maturities by type of issuer

				Gross		Gross
				Unrealized		Unrealized
		Amortized		Appre-		Depre-		Fair
		Cost		ciation		ciation		Value
(In millions)	March 31, 2016
Federal government and agency	$	463	$	289	$	-	$	752
State and local government		1,451		153		(1)		1,603
Foreign government		1,890		183		(1)		2,072
Corporate		14,328		869		(130)		15,067
Mortgage-backed		40		2		(1)		41
Other asset-backed		512		48		(8)		552
Total	$	18,684	$	1,544	$	(141)	$	20,087
(In millions)	December 31, 2015
Federal government and agency	$	528	$	251	$	-	$	779
State and local government		1,496		147		(2)		1,641
Foreign government		1,870		147		(3)		2,014
Corporate		14,022		632		(206)		14,448
Mortgage-backed		48		2		(1)		49
Other asset-backed		492		39		(7)		524
Total	$	18,456	$	1,218	$	(219)	$	19,455

Fixed maturities in an unrealized loss position

	March 31, 2016
	Fair		Amortized		Unrealized		Number
(Dollars in millions)	Value		Cost		Depreciation		of Issues
One year or less:
Investment grade	$	1,787	$	1,840	$	(53)	292
Below investment grade	$	350	$	374	$	(24)	145
More than one year:
Investment grade	$	311	$	340	$	(29)	74
Below investment grade	$	168	$	203	$	(35)	34

Credit risk profile of commercial mortgage loans

		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
(In millions)				March 31, 2016
Below 50%	$	259	$	2	$	-	$	60	$	-	$	321
50% to 59%		672		-		-		31		-		703
60% to 69%		589		14		-		19		-		622
70% to 79%		-		-		-		30		36		66
80% to 89%		40		-		-		-		-		40
90% to 100%		-		-		-		-		96		96
Total	$	1,560	$	16	$	-	$	140	$	132	$	1,848
		Debt Service Coverage Ratio
		1.30x or		1.20x to		1.10x to		1.00x to		Less than
Loan-to-Value Ratios		Greater		1.29x		1.19x		1.09x		1.00x		Total
(In millions)					December 31, 2015
Below 50%	$	261	$	2	$	-	$	67	$	-	$	330
50% to 59%		683		-		-		24		-		707
60% to 69%		590		14		-		19		-		623
70% to 79%		-		-		-		30		36		66
80% to 89%		40		-		-		-		-		40
90% to 100%		-		-		-		-		98		98
Total	$	1,574	$	16	$	-	$	140	$	134	$	1,864

Impaired commercial mortgage loans and related valuation reserves

(In millions)		March 31, 2016					December 31, 2015
		Gross		Reserves		Net		Gross		Reserves		Net
Impaired commercial mortgage loans with valuation reserves	$	111	$	(15)	$	96	$	113	$	(15)	$	98
Impaired commercial mortgage loans with no valuation reserves		-		-		-		-		-		-
Total	$	111	$	(15)	$	96	$	113	$	(15)	$	98

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Pension and Other Postretirement Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2016

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Components of net defined benefit plan costs

	Pension Benefits				Other Postretirement Benefits
	Three Months Ended				Three Months Ended
	March 31,				March 31,
(In millions)	2016		2015		2016		2015
Service cost	$	-	$	1	$	-	$	-
Interest cost		50		48		3		3
Expected long-term return on plan assets		(62)		(66)		-		-
Amortization of:
Net loss from past experience		17		17		-		-
Prior service cost		-		-		(1)		(1)
Net cost	$	5	$	-	$	2	$	2

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Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt [Table] [Abstract]

Short-term and Long-term Debt

	March 31,		December 31,
(In millions)	2016		2015
Short-term:
Commercial paper	$	100	$	100
Current maturities of long-term debt		250		-
Other, including capital leases		49		49
Total short-term debt	$	399	$	149
Long-term:
$250 million, 5.375% Notes due 2017	$	-	$	249
$131 million, 6.35% Notes due 2018		131		131
$250 million, 4.375% Notes due 2020 (1)		261		254
$300 million, 5.125% Notes due 2020 (1)		308		303
$78 million, 6.37% Notes due 2021		78		78
$300 million, 4.5% Notes due 2021 (1)		311		304
$750 million, 4% Notes due 2022		743		743
$100 million, 7.65% Notes due 2023		100		100
$17 million, 8.3% Notes due 2023		17		17
$900 million, 3.25% Notes due 2025		892		892
$300 million, 7.875% Debentures due 2027		299		299
$83 million, 8.3% Step Down Notes due 2033		82		82
$500 million, 6.15% Notes due 2036		498		498
$300 million, 5.875% Notes due 2041		296		295
$750 million, 5.375% Notes due 2042		743		743
Other, including capital leases		32		32
Total long-term debt	$	4,791	$	5,020

(1)The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 9 for further information about the Company's interest rate risk management and these derivative instruments.

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 31, 2016

Accumulated Other Comprehensive Income (Loss) [Abstract]

Changes in accumulated other comprehensive income (loss)

			Tax
			(Expense)		After-
(In millions)	Pre-Tax		Benefit		Tax
Three Months Ended March 31,
2016
Net unrealized appreciation, securities, January 1,	$	612	$	(194)	$	418
Unrealized appreciation on securities arising during the period		227		(72)		155
Reclassification adjustment for losses included in shareholders' net income (realized investment losses)		28		(10)		18
Net unrealized appreciation, securities arising during the period		255		(82)		173
Net unrealized appreciation, securities, March 31,	$	867	$	(276)	$	591
Net unrealized appreciation, derivatives, January 1,	$	10	$	(3)	$	7
Unrealized (depreciation), derivatives arising during the period		(4)		1		(3)
Net unrealized appreciation, derivatives, March 31,	$	6	$	(2)	$	4
Net translation of foreign currencies, January 1,	$	(295)	$	21	$	(274)
Net translation of foreign currencies arising during the period		83		(2)		81
Net translation of foreign currencies, March 31,	$	(212)	$	19	$	(193)
Postretirement benefits liability adjustment, January 1,	$	(2,155)	$	754	$	(1,401)
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)		16		(5)		11
Postretirement benefits liability adjustment, March 31,	$	(2,139)	$	749	$	(1,390)
2015
Net unrealized appreciation, securities, January 1,	$	955	$	(335)	$	620
Unrealized appreciation on securities arising during the period		148		(47)		101
Reclassification adjustment for (gains) included in shareholders' net income (realized investment gains)		(20)		7		(13)
Net unrealized appreciation, securities arising during the period		128		(40)		88
Net unrealized appreciation, securities, March 31,	$	1,083	$	(375)	$	708
Net unrealized (depreciation), derivatives, January 1,	$	(12)	$	4	$	(8)
Net unrealized appreciation, derivatives arising during the period		10		(3)		7
Net unrealized (depreciation), derivatives, March 31,	$	(2)	$	1	$	(1)
Net translation of foreign currencies, January 1,	$	(71)	$	9	$	(62)
Net translation of foreign currencies arising during the period		(109)		5		(104)
Net translation of foreign currencies, March 31,	$	(180)	$	14	$	(166)
Postretirement benefits liability adjustment, January 1,	$	(2,286)	$	800	$	(1,486)
Reclassification adjustment for amortization of net losses from past
experience and prior service costs (other operating expenses)		16		(5)		11
Postretirement benefits liability adjustment, March 31,	$	(2,270)	$	795	$	(1,475)

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Information [Abstract]

Summarized segment financial information

(In millions)	Global Health Care		Global Supplemental Benefits		Group Disability and Life		Other Operations		Corporate		Total
Three Months Ended March 31, 2016
Premiums, fees and other revenues and mail order pharmacy revenues	$	7,812	$	780	$	1,029	$	27	$	(4)	$	9,644
Net investment income		72		26		80		90		4		272
Operating revenues	$	7,884	$	806	$	1,109	$	117	$	-	$	9,916
Total revenues	$	7,867	$	804	$	1,106	$	107	$	-	$	9,884
Shareholders' net income	$	514	$	59	$	13	$	14	$	(81)	$	519
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment losses		12		1		2		6		-		21
Amortization of other acquired intangible assets, net		18		7		-		-		-		25
Special Item:
Merger-related transaction costs		-		-		-		-		36		36
Total special items		-		-		-		-		36		36
Adjusted income from operations	$	544	$	67	$	15	$	20	$	(45)	$	601
Three Months Ended March 31, 2015
Premiums, fees and other revenues and mail order pharmacy revenues	$	7,371	$	743	$	976	$	32	$	(4)	$	9,118
Net investment income		75		26		83		92		-		276
Operating revenues	$	7,446	$	769	$	1,059	$	124	$	(4)	$	9,394
Total revenues	$	7,495	$	772	$	1,081	$	123	$	(4)	$	9,467
Shareholders' net income	$	453	$	67	$	65	$	19	$	(71)	$	533
After-tax adjustments to reconcile to adjusted income from operations:
Net realized investment (gains)		(32)		(3)		(14)		1		-		(48)
Amortization of other acquired intangible assets, net		23		5		-		-		-		28
Adjusted income from operations	$	444	$	69	$	51	$	20	$	(71)	$	513

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Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Goodwill	$ 6,029	$ 6,019

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Recent Accounting Changes (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Income tax expense (benefit)		$ 305	$ 323
Additional paid-in capital		2,874		$ 2,859
Other, net (operating)	[1]	5	17
Net cash provided by operating activities	[1]	894	737
Other, net (financing)	[1]	(51)	(70)
Net cash provided by financing activities	[1]	(146)	530
Accounting Standards Update 2016-09 [Member] | Restatement Adjustment [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Income tax expense (benefit)		(23)
Additional paid-in capital		(23)
Other, net (operating)		73	67
Net cash provided by operating activities		73	67
Other, net (financing)		(73)	(67)
Net cash provided by financing activities		$ (73)	$ (67)

[1] As required by the adoption of ASU 2016-09, the Company retrospectively reclassified $73 million of cash payments from operating to financing activities for the three months ended March 31, 2015. These payments were related to employee tax obligations associated with stock compensation. The comparable amount reported in financing activities for the three months ended March 31, 2016 was $67 million. See Note 2 for further discussion.

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Mergers and Acquistions (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($) $ / shares	May. 05, 2016 $ / shares
Acquisitions and Dispositions [Abstract]
Cash consideration for each share of Company stock | $ / shares	$ 103.40
Shares of acquirer common stock for each share of Company stock	0.5152
Closing price of Anthem common stock | $ / shares		$ 137.07
Reverse termination fee payable to Company	$ 1,850
Merger-related transaction costs	40
Acquisitions-related costs, after-tax	$ 36

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Shareholders' net income	$ 519	$ 533
Shares:
Weighted average	254,822,000	256,707,000
Common stock equivalents	4,625,000	4,539,000
Total shares	259,447,000	261,246,000
EPS, basic	$ 2.04	$ 2.08
EPS, effect of dilution	(0.04)	(0.04)
EPS, diluted	$ 2.00	$ 2.04
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Common shares held in Treasury	39,638,264	38,421,636
Employee Stock Option [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive options	1,300,000	1,400,000

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Global Health Care Medical Costs Payable (Details) - Global Health Benefits Segment [Member] - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]
Incurred but not yet reported	$ 1,960	$ 1,757
Reported claims in process	506	470
Phyician incentives and other medical expense payable	180	128
Medical costs payable	$ 2,646	$ 2,355	$ 2,180

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Global Health Care Medical Costs Payable - Activity (Details) - Global Health Benefits Segment [Member] - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Medical Claims Payable Activity [Abstract]
Costs payable, beginning balance, gross	$ 2,355	$ 2,180
Less: Reinsurance and other amounts recoverable	243	252
Balance at January 1, net	2,112	1,928
Incurred claims related to:
Current year	4,825	18,564
Prior years	(64)	(210)
Total incurred	4,761	18,354
Paid claims related to:
Current year	2,985	16,588
Prior years	1,449	1,582
Total paid	4,434	18,170
Ending balance, net	2,439	2,112
Add: Reinsurance and other amounts recoverable	207	243
Costs payable, ending balance, gross	$ 2,646	$ 2,355

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Global Health Care Medical Costs Payable - Prior Year Development (Details) - Global Health Benefits Segment [Member] - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]
(Favorable) Unfavorable incurred costs related to prior years' claims payable	$ (64)		$ (210)
Incurred costs related to prior years' claims payable percentage	0.30%		1.30%
Favorable (unfavorable) impact of prior development on shareholders' net income	$ 14	$ 25
Completion Factors [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]
(Favorable) Unfavorable incurred costs related to prior years' claims payable	$ (51)		$ (62)
Incurred costs related to prior years' claims payable percentage	0.30%		0.40%
Medical Cost Trend [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]
(Favorable) Unfavorable incurred costs related to prior years' claims payable	$ (28)		$ (115)
Incurred costs related to prior years' claims payable percentage	0.10%		0.70%
Increased Medical Costs Government Segment [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]
(Favorable) Unfavorable incurred costs related to prior years' claims payable	$ 15
Incurred costs related to prior years' claims payable percentage	0.10%
Reinsurance Reimbursements Under Health Care Reform [Member]
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]
(Favorable) Unfavorable incurred costs related to prior years' claims payable			$ (33)
Incurred costs related to prior years' claims payable percentage			0.20%

XML

Reinsurance - Effective Exit of GMDB and GMIB Business (Details) - Berkshire Hathway Life Insurance Company Of Nebraska [Member] - Variable Annuity [Member] - USD ($) $ in Billions	Mar. 31, 2016	Dec. 31, 2013
Ceded Credit Risk [Line Items]
Percent of future claim payments reinsured		100.00%
Maximum [Member] | Guaranteed Minimum Death Benefit [Member]
Ceded Credit Risk [Line Items]
Ceded Reinsurance Agreement, Coverage Limit, Amount Remaining	$ 3.6

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Reinsurance - Guaranteed Minimum Death Benefit Contracts, Future Policy Benefits (Details) - Variable Annuity [Member] - Guaranteed Minimum Death Benefit [Member] - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Activity in future policy benefits reserves for GMDB business [Line Items]
Future Policy Benefit Reserve, beginning balance, gross	$ 1,252	$ 1,270
Costs payable, beginning balance, gross	18	16
Less: Reinsurance and other amounts recoverable	1,164	1,186
Balance at January 1, net	106	100
Add: Incurred benefits	1	3
Less: Paid benefits	0	(3)
Ending balance, net	107	106
Costs payable, ending balance, gross	22	18
Add: Reinsurance and other amounts recoverable	1,201	1,164
Future Policy Benefit Reserve, ending balance, gross	$ 1,286	$ 1,252

XML

Reinsurance - Guaranteed Minimum Death Benefits Account Value, Net Amount at Risk and Contractholders (Details) - Variable Annuity [Member] - Guaranteed Minimum Death Benefit [Member] Contractholders in Millions, $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016 USD ($) Contractholders	Dec. 31, 2015 USD ($) Contractholders
Guaranteed Minimum Death Benefits Account Value, Net Amount at Risk And Average Age Table [Line Items]
Account value	$ 10,977	$ 11,355
Net amount at risk	$ 2,854	$ 2,870
Number of contractholders | Contractholders	318,000	324,000

XML

Reinsurance - Effects of Reinsurance (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Premiums Earned, Net [Abstract]
Ceded	$ 136	$ 130
Premiums Earned Net	7,746	7,402
Reinsurance Recoveries [Abstract]
Reinsurance recoveries	164	159
Individual Life Insurance And Annuity Business Sold [Member]
Premiums Earned, Net [Abstract]
Ceded	41	41
Reinsurance Recoveries [Abstract]
Reinsurance recoveries	68	86
Other Subsegments [Member]
Premiums Earned, Net [Abstract]
Ceded	95	89
Reinsurance Recoveries [Abstract]
Reinsurance recoveries	$ 96	$ 73

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Reinsurance - Reinsurance Recoverables (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($) Reinsurers	Dec. 31, 2015 USD ($)
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 6,725	$ 6,813
Reserve netted against reinsurance recoverables	$ 3
Minimum [Member] | Standard Poors A Rating Or Better [Member] | Reinsurance Recoverable [Member]
Ceded Credit Risk [Line Items]
Concentration Risk, Percentage	90.00%
Guaranteed Minimum Income Benefit [Member]
Ceded Credit Risk [Line Items]
Number of external reinsurers	3	3
Berkshire Hathway Life Insurance Company Of Nebraska [Member] | Guaranteed Minimum Death Benefits [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 1,156	$ 1,123
Berkshire Hathway Life Insurance Company Of Nebraska [Member] | Guaranteed Minimum Death Benefits [Member] | Ceded Credit Risk Secured [Member] | Reinsurance Recoverable [Member]
Ceded Credit Risk [Line Items]
Concentration Risk, Percentage	100.00%
The Lincoln National Life Insurance Company And Lincoln Life And Annuity Of New York [Member] | Individual Life Insurance And Annuity (sold in 1998) [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 3,659	3,705
Prudential Retirement Insurance And Annuity Company [Member] | Retirement Benefits Business (sold in 2004) [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 976	995
Prudential Retirement Insurance And Annuity Company [Member] | Retirement Benefits Business (sold in 2004) [Member] | Ceded Credit Risk Secured [Member] | Reinsurance Recoverable [Member]
Ceded Credit Risk [Line Items]
Concentration Risk, Percentage	100.00%
Great American Life Insurance Company [Member] | Supplemental Benefits Business (2012 acquistion) [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 312	315
Great American Life Insurance Company [Member] | Supplemental Benefits Business (2012 acquistion) [Member] | Ceded Credit Risk Secured [Member] | Reinsurance Recoverable [Member]
Ceded Credit Risk [Line Items]
Concentration Risk, Percentage	100.00%
Other retrocessionaires, including U.S. Government [Member] | Global Health Care, Global Supplemental Benefits, Group Disability and Life [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 497	553
Number of external reinsurers | Reinsurers	80
U.S. Government [Member] | Global Health Care, Global Supplemental Benefits, Group Disability and Life [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 100
Other Retrocessionaires [Member] | Guaranteed Minimum Death Benefits [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 45	41
Other Retrocessionaires [Member] | Guaranteed Minimum Death Benefits [Member] | Ceded Credit Risk Secured [Member] | Reinsurance Recoverable [Member]
Ceded Credit Risk [Line Items]
Concentration Risk, Percentage	100.00%
Other Retrocessionaires [Member] | Global Health Care, Global Supplemental Benefits, Group Disability and Life [Member]
Ceded Credit Risk [Line Items]
Maximum reinsurance recoverable from a single reinsurer	$ 90
Other Retrocessionaires [Member] | Global Health Care, Global Supplemental Benefits, Group Disability and Life [Member] | Maximum [Member]
Ceded Credit Risk [Line Items]
Minimum reinsurance recoverable balance from a single reinsurer	$ 1
Other Retrocessionaires [Member] | Global Health Care, Global Supplemental Benefits, Group Disability and Life [Member] | Ceded Credit Risk Secured [Member] | Reinsurance Recoverable [Member]
Ceded Credit Risk [Line Items]
Concentration Risk, Percentage	18.00%
Other Retrocessionaires [Member] | Other run-off reinsurance [Member]
Ceded Credit Risk [Line Items]
Reinsurance recoverables	$ 80	$ 81
Other Retrocessionaires [Member] | Other run-off reinsurance [Member] | Ceded Credit Risk Secured [Member] | Reinsurance Recoverable [Member]
Ceded Credit Risk [Line Items]
Concentration Risk, Percentage	100.00%

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Goodwill, Other Intangibles, and Property and Equipment - Goodwill (Details) $ in Millions	Mar. 31, 2016 USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 6,019
Goodwill, Ending Balance	$ 6,029

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Goodwill, Other Intangibles, and Property and Equipment - Property and Equipment (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Net carrying value	$ 1,534	$ 1,534

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Fair Value Measurements - Financial Assets and Financial Liabilities Carried at Fair Value (Details) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Financial assets at fair value:
Fixed maturities		$ 20,087	$ 19,455
Equity securities		194	190
Short-term investments		465	381
Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	[1]	20,087	19,455
Equity securities		194	190
Subtotal		20,281	19,645
Short-term investments		465	381
Total financial assets at fair value, excluding separate accounts		21,714	20,949
Financial liabilities at fair value:
Total financial liabilities at fair value		942	885
Run-off Settlement Annuity Business [Member] | Fair Value, Measurements, Recurring [Member]
Financial liabilities at fair value:
Net appreciation required to adjust future policy benefits for run-off settlement annuity business included in fixed maturities		622	483
Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	[2]	11	16
Financial liabilities at fair value:
Derivative liabilities		1
Other derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets		10	15
Other derivatives [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets		$ 1	$ 1
Guaranteed Minimum Income Benefit [Member]
Financial liabilities at fair value:
Number of external reinsurers		3	3
Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	[3]	$ 957	$ 907
Financial liabilities at fair value:
Derivative liabilities		941	885
Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		752	779
State and local government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		1,603	1,641
Foreign government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		2,072	2,014
Corporate [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		15,067	14,448
Mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		41	49
Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		552	524
Fair Value Inputs Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	[1]	183	251
Equity securities		33	32
Subtotal		216	283
Short-term investments		0	0
Total financial assets at fair value, excluding separate accounts		216	283
Financial liabilities at fair value:
Total financial liabilities at fair value		0	0
Fair Value Inputs Level 1 [Member] | Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	[2]	0	0
Financial liabilities at fair value:
Derivative liabilities		0
Fair Value Inputs Level 1 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	[3]	0	0
Financial liabilities at fair value:
Derivative liabilities		0	0
Fair Value Inputs Level 1 [Member] | Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		183	251
Fair Value Inputs Level 1 [Member] | State and local government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		0	0
Fair Value Inputs Level 1 [Member] | Foreign government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		0	0
Fair Value Inputs Level 1 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		0	0
Fair Value Inputs Level 1 [Member] | Mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		0	0
Fair Value Inputs Level 1 [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		0	0
Fair Value Inputs Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	[1]	19,184	18,547
Equity securities		89	89
Subtotal		19,273	18,636
Short-term investments		465	381
Total financial assets at fair value, excluding separate accounts		19,749	19,033
Financial liabilities at fair value:
Total financial liabilities at fair value		1	0
Fair Value Inputs Level 2 [Member] | Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	[2]	11	16
Financial liabilities at fair value:
Derivative liabilities		1
Fair Value Inputs Level 2 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	[3]	0	0
Financial liabilities at fair value:
Derivative liabilities		0	0
Fair Value Inputs Level 2 [Member] | Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		569	528
Fair Value Inputs Level 2 [Member] | State and local government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		1,603	1,641
Fair Value Inputs Level 2 [Member] | Foreign government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		2,068	2,010
Fair Value Inputs Level 2 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		14,661	14,122
Fair Value Inputs Level 2 [Member] | Mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		40	48
Fair Value Inputs Level 2 [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		243	198
Fair Value Inputs Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities	[1]	720	657
Equity securities		72	69
Subtotal		792	726
Short-term investments		0	0
Total financial assets at fair value, excluding separate accounts		1,749	1,633
Financial liabilities at fair value:
Total financial liabilities at fair value		941	885
Fair Value Inputs Level 3 [Member] | Run-off Settlement Annuity Business [Member] | Fair Value, Measurements, Recurring [Member]
Financial liabilities at fair value:
Net appreciation required to adjust future policy benefits for run-off settlement annuity business included in fixed maturities		42	30
Fair Value Inputs Level 3 [Member] | Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	[2]	0	0
Financial liabilities at fair value:
Derivative liabilities		0
Fair Value Inputs Level 3 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Derivative assets	[3]	957	907
Financial liabilities at fair value:
Derivative liabilities		941	885
Fair Value Inputs Level 3 [Member] | Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		0	0
Fair Value Inputs Level 3 [Member] | State and local government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		0	0
Fair Value Inputs Level 3 [Member] | Foreign government [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		4	4
Fair Value Inputs Level 3 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		406	326
Fair Value Inputs Level 3 [Member] | Mortgage-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		1	1
Fair Value Inputs Level 3 [Member] | Other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]
Financial assets at fair value:
Fixed maturities		$ 309	$ 326

[1] Fixed maturities included $622 million as of March 31, 2016 and $483 million as of December 31, 2015 of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $42 million as of March 31, 2016 and $30 million as of December 31, 2015 of appreciation for securities classified in Level 3. See Note 8 for additional information.

[2] Other derivative assets included $10 million as of March 31, 2016 and $15 million as of December 31, 2015 of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million as of March 31, 2016 and December 31, 2015 of interest rate swaps qualifying as fair value hedges. See Note 9 for additional information.

[3] The GMIB assets represent retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts.

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Fair Value Measurements - Level 2 Financial Assets and Financial Liabilities (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Percentage of investments in fixed maturities and equity securities classified as Level 2	95.00%
Maximum percentage of investments classified in Level 2 representing foreign bonds priced using unadjusted broker quotes	1.00%
Other derivatives [Member] | Cash Flow Hedging [Member]
Derivative [Line Items]
Adjustment for credit risk on derivatives assets	$ 0	$ 0
Adjustment for credit risk on derivatives liabilities	0	0
Other derivatives [Member] | Cash Flow Hedging [Member] | Fair Value Inputs Level 2 [Member]
Derivative [Line Items]
Adjustment for credit risk on derivatives assets	0	0
Adjustment for credit risk on derivatives liabilities	$ 0	$ 0

XML

Fair Value Measurements - Level 3 Financial Assets and Liabilities (Details) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Fair Value Disclosures [Abstract]
Percentage of investments in fixed maturities and equity securities classified in Level 3		4.00%
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities		$ 20,281	$ 19,645
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities		792	726
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities		742	681
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Securities not priced by the Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities	[1]	50	45
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Equity securities [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities		$ 72	$ 69
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Equity securities [Member] | Maximum [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Multiple of earnings before interest, taxes, depreciation and amortization (EBITDA) used to value equity securities.		11.6	11.6
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Equity securities [Member] | Minimum [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Multiple of earnings before interest, taxes, depreciation and amortization (EBITDA) used to value equity securities.		4.2	4.2
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Equity securities [Member] | Weighted Average [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Multiple of earnings before interest, taxes, depreciation and amortization (EBITDA) used to value equity securities.		8.2	8.3
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Fixed Maturities [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities		$ 670	$ 612
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate and government debt securities [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities		$ 360	$ 285
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate and government debt securities [Member] | Maximum [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Liquidity adjustment to discount rates used to value fixed maturities and equity securities		11.50%	9.30%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate and government debt securities [Member] | Minimum [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Liquidity adjustment to discount rates used to value fixed maturities and equity securities		0.70%	0.70%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate and government debt securities [Member] | Weighted Average [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Liquidity adjustment to discount rates used to value fixed maturities and equity securities		3.60%	2.80%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Other asset and mortgage-backed securities [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Fixed Maturities And Equity Securities		$ 310	$ 327
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Other asset and mortgage-backed securities [Member] | Maximum [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Liquidity adjustment to discount rates used to value fixed maturities and equity securities		4.50%	4.40%
Adjustment to discount rates used to value fixed maturities and equity securities for weighting of credit spreads		6.80%	6.30%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Other asset and mortgage-backed securities [Member] | Minimum [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Liquidity adjustment to discount rates used to value fixed maturities and equity securities		0.60%	0.60%
Adjustment to discount rates used to value fixed maturities and equity securities for weighting of credit spreads		1.80%	1.70%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Other asset and mortgage-backed securities [Member] | Weighted Average [Member] | Unobservable Inputs Developed By Company [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items]
Liquidity adjustment to discount rates used to value fixed maturities and equity securities		1.90%	2.00%
Adjustment to discount rates used to value fixed maturities and equity securities for weighting of credit spreads		2.30%	2.20%

[1] The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.

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Fair Value Measurements - Guaranteed Minimum Income Benefit Contracts (Details)	Mar. 31, 2016
Guaranteed Minimum Income Benefit [Member] | Ceded Credit Risk Secured [Member]
Ceded Credit Risk [Line Items]
GMIB assets percent secured	68.00%

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Fair Value Measurements - Changes in Level 3 Financial Assets (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Fixed Maturities And Equity Securities [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance		$ 726	$ 857
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		0	0
Other		(25)	13
Total gains (losses) included in shareholders' net income		(25)	13
Gains (losses) included in other comprehensive income		0	2
Gains (losses) required to adjust future policy benefits for settlement annuities	[1]	11	6
Purchases, sales, and settlements:
Purchases		24	11
Sales		0	(18)
Settlements		(11)	(3)
Total purchases, sales, settlements		13	(10)
Transfers into/(out of) Level 3:
Transfers into Level 3		128	1
Transfers out of Level 3		(61)	(51)
Total transfers into/(out of) Level 3		67	(50)
Ending Balance		792	818
Total gains (losses) included in income attributable to instruments held at the reporting date		(25)	0
Derivative Financial Instruments, Assets [Member] | Guaranteed Minimum Income Benefit [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance		907	953
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		61	27
Other		(1)	(1)
Total gains (losses) included in shareholders' net income		60	26
Gains (losses) included in other comprehensive income		0	0
Gains (losses) required to adjust future policy benefits for settlement annuities	[1]	0	0
Purchases, sales, and settlements:
Purchases		0	0
Sales		0	0
Settlements		(10)	(9)
Total purchases, sales, settlements		(10)	(9)
Transfers into/(out of) Level 3:
Transfers into Level 3		0	0
Transfers out of Level 3		0	0
Total transfers into/(out of) Level 3		0	0
Ending Balance		957	970
Total gains (losses) included in income attributable to instruments held at the reporting date		$ 60	$ 26

[1] Amounts do not accrue to shareholders.

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Fair Value Measurements - Changes in Level 3 Financial Liabilities (Details) - Derivative Financial Instruments, Liabilities [Member] - Guaranteed Minimum Income Benefit [Member] - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance		$ (885)	$ (929)
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		(61)	(27)
Other		(5)	(1)
Total gains (losses) included in shareholders' net income		(66)	(28)
Gains (losses) included in other comprehensive income		0	0
Gains (losses) required to adjust future policy benefits for settlement annuities	[1]	0	0
Purchases, sales, settlements:
Purchases		0	0
Sales		0	0
Settlements		10	9
Total purchases, sales, and settlements		10	9
Transfers into/(out of) Level 3:
Transfers into Level 3		0	0
Transfers out of Level 3		0	0
Transfers into/(out of) Level 3		0	0
Ending balance		(941)	(948)
Total gains (losses) included in income attributable to instruments held at the reporting date		$ (66)	$ (28)

[1] Amounts do not accrue to shareholders.

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Fair Value Measurements - Changes in Level 3 Net Derivative Assets (Liabilities) (Details) - Guaranteed Minimum Income Benefit [Member] - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Fair Value, Net Derivative Asset (Liability), Measured On Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Beginning balance		$ 22	$ 24
Gains (losses) included in shareholders' net income:
GMIB fair value gain/(loss)		0	0
Other		(6)	(2)
Total gains (losses) included in shareholders' net income		(6)	(2)
Gains (losses) included in other comprehensive income		0	0
Gains (losses) required to adjust future policy benefits for settlement annuities	[1]	0	0
Purchases, sales, settlements:
Purchases		0	0
Sales		0	0
Settlements		0	0
Total purchases, sales, settlements		0	0
Transfers into/(out of) Level 3:
Transfers into Level 3		0	0
Transfers out of Level 3		0	0
Transfers into/out of Level 3		0	0
Ending balance		16	22
Total gains (losses) included in income attributable to instruments held at the reporting date		$ (6)	$ (2)

[1] Amounts do not accrue to shareholders.

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Fair Value Measurements - Separate Account Assets (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Financial assets and financial liabilities carried at fair value [Line Items]
Guaranteed separate accounts		$ 504		$ 509
Non-guaranteed separate accounts	[1]	6,551		6,396
Subtotal		7,055		6,905
Non-guaranteed separate accounts priced at NAV as a practical expedient	[1]	930		928
Total separate account assets		7,985		7,833
Pension Benefits [Member]
Financial assets and financial liabilities carried at fair value [Line Items]
Non-guaranteed separate accounts priced at NAV as a practical expedient		900		900
Non-guaranteed separate accounts		3,600		3,600
Fair Value Inputs Level 1 [Member]
Financial assets and financial liabilities carried at fair value [Line Items]
Guaranteed separate accounts		231		235
Non-guaranteed separate accounts		1,372		1,401
Subtotal		1,603		1,636
Fair Value Inputs Level 2 [Member]
Financial assets and financial liabilities carried at fair value [Line Items]
Guaranteed separate accounts		273		274
Non-guaranteed separate accounts		4,862		4,698
Subtotal		5,135		4,972
Fair Value Inputs Level 3 [Member]
Financial assets and financial liabilities carried at fair value [Line Items]
Guaranteed separate accounts		0		0
Non-guaranteed separate accounts	[1]	317		297
Subtotal		317		297
Fair Value Inputs Level 3 [Member] | Pension Benefits [Member]
Financial assets and financial liabilities carried at fair value [Line Items]
Non-guaranteed separate accounts		300		$ 300
Separate Account Assets [Member]
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning Balance		297	$ 255
Policyholder gains (losses)		(1)	1
Purchases, sales, and settlements:
Purchases		4	10
Sales		(1)	0
Settlements		(2)	(3)
Total purchases, sales, and settlements		1	7
Transfers into/(out of) Level 3:
Transfers into Level 3		23	0
Transfers out of Level 3		(3)	(4)
Total transfers into/(out of) Level 3		20	(4)
Ending Balance		$ 317	$ 259

[1] Non-guaranteed separate accounts as of March 31, 2016 and December 31, 2015 included $3.6 billion in assets supporting the Company's pension plans, with $0.3 billion classified in Level 3 and $0.9 billion priced at NAV as a practical expedient.

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Fair Value Measurements - Separate Account Assets Priced at NAV (Details) - Separate Account Assets [Member] - USD ($) $ in Millions		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments		$ 274
Fair Value, Measurements, Recurring [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value		930	$ 928
Security Partnerships [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments		$ 274
Redemption Frequency	[1]	Not applicable
Security Partnerships [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value		$ 432	$ 406
Real Estate Funds [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments		$ 0
Redemption Frequency	[1]	Quarterly
Real Estate Funds [Member] | Minimum [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period		45 days	45 days
Real Estate Funds [Member] | Maximum [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period		90 days	90 days
Real Estate Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value		$ 266	$ 261
Hedge Funds [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Unfunded Commitments		$ 0
Redemption Frequency	[1]	Up to Annually, varying by fund
Hedge Funds [Member] | Minimum [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period		30 days	30 days
Hedge Funds [Member] | Maximum [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Redemption Notice Period		90 days	90 days
Hedge Funds [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]
Fair Value		$ 232	$ 261

[1] The attributes noted are effective as of March 31, 2016 and December 31, 2015.

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Fair Value Measurements - Measured Under Certain Conditions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Financing Receivable, Impaired [Line Items]
Realized investment losses on impaired commercial mortgage loans and real estate entities	$ 0	$ 4
Maximum [Member]
Financing Receivable, Impaired [Line Items]
Impaired commercial mortgage loans and real estate entities as a percent of total investments		1.00%

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Fair Value Measurements - Not Carried at Fair Value (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Commercial Mortgage Loans	$ 1,848	$ 1,864
Percentage of contractholder deposit funds that can be withdrawn at any time	65.00%
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 2 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Long-term debt, including current maturities, excluding capital leases	$ 5,573	5,515
Estimate Of Fair Value Fair Value Disclosure [Member] | Fair Value Inputs Level 3 [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Commercial Mortgage Loans	1,903	1,911
Contractholder deposit funds, excluding universal life products	1,195	1,151
Carrying Reported Amount Fair Value Disclosure [Member]
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Commercial Mortgage Loans	1,848	1,864
Contractholder deposit funds, excluding universal life products	1,187	1,148
Long-term debt, including current maturities, excluding capital leases	$ 5,040	$ 5,020

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Fair Value Measurements - Off-Balance Sheet Financial Instruments (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]
Fair value of off-balance-sheet financial assets
Fair value of off-balance-sheet financial liabilities

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Investments - Realized Investment Gains and Losses (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	$ (32)	$ 73
Less income taxes (benefits)	(11)	25
Net realized investment gains (losses)	(21)	48
Fixed Maturities [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	(18)	7
Equity securities [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	(10)	13
Commercial Mortgage Loans [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	0	5
Other Investments Including Derivatives [Member]
Realized Gains (Losses) on Investments [Line Items]
Realized investment gains (losses) before income taxes	$ (4)	$ 48

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Investments - Write Downs and Sales (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Realized Gains (Losses) on Investments [Line Items]
Total		$ (36)	$ (11)
Sales Information For Available For Sale Fixed Maturities Equity Securities [Abstract]
Proceeds from sales		361	393
Gross gains on sales		12	27
Gross losses on sales		5	2
Debt Securities [Member]
Realized Gains (Losses) on Investments [Line Items]
Credit-related		(18)	0
Non-credit related	[1]	(9)	(5)
Total		(27)	(5)
Other [Member]
Realized Gains (Losses) on Investments [Line Items]
Total	[2]	$ (9)	$ (6)

[1] These write-downs pertain to other-than-temporary declines in fair values due to increases in market yields (widening of credit spreads), particularly within the energy sector, for certain below investment grade fixed maturities with an increased probability of sales activity prior to recovery of amortized cost basis.

[2] Other asset write-downs include other-than-temporary declines in fair values of equity securities and asset write-downs related to real estate investments.

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Investments - Fixed Maturities by Maturity Periods (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Amortized Cost:
Due in one year or less	$ 1,533
Due after one year through five years	6,359
Due after five years through ten years	6,888
Due after ten years	3,352
Mortgage and other asset-backed securities	552
Amortized Cost	18,684	$ 18,456
Fair Value:
Due in one year or less	1,541
Due after one year through five years	6,652
Due after five years through ten years	7,216
Due after ten years	4,085
Mortgage and other asset-backed securities	593
Total fair value	$ 20,087

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Investments - Appreciation (Depreciation) on Fixed Maturities (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 18,684	$ 18,456
Unrealized Appreciation	1,544	1,218
Unrealized (Depreciation)	(141)	(219)
Total Fair Value	20,087	19,455
Run-off Settlement Annuity Business [Member]
Schedule of Available-for-sale Securities [Line Items]
Unrealized Appreciation	636	521
Unrealized (Depreciation)	(14)	(38)
Total Fair Value	2,800	2,700
Federal government and agency [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	463	528
Unrealized Appreciation	289	251
Unrealized (Depreciation)	0	0
Total Fair Value	752	779
State and local government [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,451	1,496
Unrealized Appreciation	153	147
Unrealized (Depreciation)	(1)	(2)
Total Fair Value	1,603	1,641
Foreign government [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,890	1,870
Unrealized Appreciation	183	147
Unrealized (Depreciation)	(1)	(3)
Total Fair Value	2,072	2,014
Corporate [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,328	14,022
Unrealized Appreciation	869	632
Unrealized (Depreciation)	(130)	(206)
Total Fair Value	15,067	14,448
Mortgage-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	40	48
Unrealized Appreciation	2	2
Unrealized (Depreciation)	(1)	(1)
Total Fair Value	41	49
Other asset-backed [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	512	492
Unrealized Appreciation	48	39
Unrealized (Depreciation)	(8)	(7)
Total Fair Value	$ 552	$ 524

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Investments - Declines in Fair Value, Fixed Maturities (Details) $ in Millions	Mar. 31, 2016 USD ($)
Debt Securities [Member] | Investment Grade [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, One Year or Less, Fair Value	$ 1,787
Available For Sale Securities, Continuous Unrealized Loss Position, Twelve Months Or Longer, Fair Value	311
Available For Sale Securities, Continuous Unrealized Loss Position, One Year or Less, Amortized Cost	1,840
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Amortized Cost	340
Available-for-sale Securities, Continuous Unrealized Loss Position, One Year or Less, Accumulated Losses	(53)
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Accumulated Losses	$ (29)
Debt Securities [Member] | Investment Grade [Member] | One Year Or Less [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	292
Debt Securities [Member] | Investment Grade [Member] | More Than One Year [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	74
Debt Securities [Member] | Below Investment Grade [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale Securities, Continuous Unrealized Loss Position, One Year or Less, Fair Value	$ 350
Available For Sale Securities, Continuous Unrealized Loss Position, Twelve Months Or Longer, Fair Value	168
Available For Sale Securities, Continuous Unrealized Loss Position, One Year or Less, Amortized Cost	374
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Amortized Cost	203
Available-for-sale Securities, Continuous Unrealized Loss Position, One Year or Less, Accumulated Losses	(24)
Available-for-sale Securities, Continuous Unrealized Loss Position, More Than One Year, Accumulated Losses	$ (35)
Debt Securities [Member] | Below Investment Grade [Member] | One Year Or Less [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	145
Debt Securities [Member] | Below Investment Grade [Member] | More Than One Year [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	34
Equity securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Securities with a significant unrealized loss reflected in accumulated other comprehensive income	$ 0

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Investments - Hybrid Securities (Details) - Equity securities [Member] - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Investment [Line Items]
Hybrid securities	$ 37	$ 52
Hybrid instruments, cost	$ 53	$ 66

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Investments - Commerical Mortgage Loans by Property Type and Geographic Region (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Mortgage Loans on Real Estate [Line Items]
Commercial Mortgage Loans	$ 1,848	$ 1,864

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Investments - Credit Risk Profile, Commercial Mortgage Loans (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 1,848	$ 1,864
Weighted Average [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.78	1.78
Loan-to-value ratio, commercial mortgage loans	58.00%	58.00%
Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 321	$ 330
Loan To Value Ratio Below 50 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	50.00%	50.00%
Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 703	$ 707
Loan To Value Ratio 50 Percent To 59 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	59.00%	59.00%
Loan To Value Ratio 50 Percent To 59 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	50.00%	50.00%
Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 622	$ 623
Loan To Value Ratio 60 Percent To 69 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	69.00%	69.00%
Loan To Value Ratio 60 Percent To 69 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	60.00%	60.00%
Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 66	$ 66
Loan To Value Ratio 70 Percent To 79 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	79.00%	79.00%
Loan To Value Ratio 70 Percent To 79 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	70.00%	70.00%
Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 40	$ 40
Loan To Value Ratio 80 Percent To 89 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	89.00%	89.00%
Loan To Value Ratio 80 Percent To 89 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	80.00%	80.00%
Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 96	$ 98
Loan To Value Ratio 90 Percent To 100 Percent [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	100.00%	100.00%
Loan To Value Ratio 90 Percent To 100 Percent [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Loan-to-value ratio, commercial mortgage loans	90.00%	90.00%
Debt Service Coverage Ratio 1.30x Or Greater [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 1,560	$ 1,574
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.30	1.30
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 259	$ 261
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	672	683
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	589	590
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	40	40
Debt Service Coverage Ratio 1.30x Or Greater [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.20x To 1.29x [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 16	$ 16
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.29	1.29
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.20	1.20
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 2	$ 2
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	14	14
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.20x To 1.29x [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 0	$ 0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.19	1.19
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.10	1.10
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 0	$ 0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.10x To 1.19x [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.00x To 1.09x [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 140	$ 140
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.09	1.09
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Minimum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.00	1.00
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 60	$ 67
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	31	24
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	19	19
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	30	30
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio 1.00x To 1.09x [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio Less Than 1.00x [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 132	$ 134
Debt Service Coverage Ratio Less Than 1.00x [Member] | Maximum [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Debt service coverage ratio, commercial mortgage loans	1.00	1.00
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio Below 50 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 0	$ 0
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 50 Percent To 59 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 60 Percent To 69 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 70 Percent To 79 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	36	36
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 80 Percent To 89 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	0	0
Debt Service Coverage Ratio Less Than 1.00x [Member] | Loan To Value Ratio 90 Percent To 100 Percent [Member]
Schedule Of Financing Receivable Recorded Investment Credit Quality Indicator [Line Items]
Commercial mortgage loan	$ 96	$ 98

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Investments - Problem and Potential Problem Commercial Mortgage Loans (Details) - Mortgage Loans on Real Estate [Member] $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Financing Receivable, Modifications [Line Items]
Maximum past due days that the mortgage loans are considered current	59 days
Debt service coverage ratio threshold, below which mortgage loans are considered potential problems	1.0
Loan-to-value ratio threshold, above which mortgage loans are considered potential problems	100.00%
Minimum past due days that mortgage loans are considered potential problems	30 days
Maximum past due days that mortgage loans are considered potential problems	60 days
Problem and potential problem mortgage loans	$ 137	$ 139

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Investments - Impaired Commercial Mortgage Loans (Details) - Mortgage Loans on Real Estate [Member] - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Impaired commercial mortgage loans with related allowance, gross	$ 111		$ 113
Impaired commercial mortgage loans with no related allowance, gross	0		0
Impaired commercial mortgage loans, gross	111		113
Impaired commercial mortgage loans, reserves	(15)		(15)
Impaired commercial mortgage loans with related allowance, net	96		98
Impaired commercial mortgage loans, net	96		$ 98
Average recorded investment in impaired mortgage loans	$ 112	$ 146

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Investments - Valuation Reserves for Commercial Mortgage Loans (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Mortgage Loans on Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Financing Receivable, Allowance For Credit Losses, Period Increase (Decrease)

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Investments - Real Estate and Other Long-Term Investments (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Other Long Term Investments [Line Items]
Other long-term investments	$ 1,434	$ 1,404

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Investments - Short-Term Investments and Cash Equivalents (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Corporate Securities [Member]
Short Term Investments And Cash Equivalents [Line Items]
Short-term investments and cash equivalents	$ 1,500	$ 925
Federal goverment securities
Short Term Investments And Cash Equivalents [Line Items]
Short-term investments and cash equivalents	231	220
Money Market Funds [Member]
Short Term Investments And Cash Equivalents [Line Items]
Short-term investments and cash equivalents	$ 35	$ 55

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Derivative Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivatives, Fair Value [Line Items]
Maximum term length, investment cash flow hedges	5 years
Gains (losses) reclassified from other comprehensive income into income
Amounts excluded from assessment of hedge effectiveness	$ 0	$ 0
Gains (losses) recognized due to hedge ineffectiveness	0	$ 0
Cash on deposit representing upfront margin required by clearinghouse	$ 16
Net liability position of derivatives that contain certain credit risk-related contingent features
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	$ 131		$ 131
Gain (Loss) Recognized in Other Comprehensive Income
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Long Term Investments Location [Member]
Derivatives, Fair Value [Line Items]
Fair Value
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accounts Payable Accrued Expenses And Other Liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair Value
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swaps [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	$ 750		$ 750
Income Statement impact of fair value hedges
Balance Sheet impact of fair value hedge assets
Balance Sheet impact of fair value hedge liabilities

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Variable Interest Entities (Details) $ in Billions	3 Months Ended
	Mar. 31, 2016 USD ($)
Variable Interest Entity [Line Items]
Methodology for determining whether the Company is primary beneficiary	When the Company becomes involved with a variable interest entity, as well as when there is a change in the Company’s involvement with an entity, the Company evaluates the following to determine if it is the primary beneficiary and must consolidate the entity: the structure and purpose of the entity; the risks and rewards created by and shared through the entity; and the Company’s ability to direct its activities, receive its benefits and absorb its losses relative to the other parties involved with the entity including its sponsors, equity holders, guarantors, creditors and servicers.
Investment Entities [Member]
Variable Interest Entity [Line Items]
Maximum exposure to loss related to arrangements with variable interest entity	$ 0.6
Security And Real Estate Limited Partnerships [Member]
Variable Interest Entity [Line Items]
Maximum exposure to loss related to arrangements with variable interest entity	$ 1.9
Number of limited partnerships defined as variable interest entities	90.0
Commitments to contribute additional cash, amount	$ 0.9
Security And Real Estate Limited Partnerships [Member] | Maximum [Member]
Variable Interest Entity [Line Items]
Non-controlling interest percentage	10.00%
Security And Real Estate Limited Partnerships [Member] | Other Long Term Investments [Member]
Variable Interest Entity [Line Items]
Carrying amount of assets	$ 1.0
Independent Physician Associations [Member]
Variable Interest Entity [Line Items]
Maximum exposure to loss related to arrangements with variable interest entity

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Investment Income and Gains and Losses - Net Investment Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Schedule Of Investment Income Reported Amounts By Category [Line Items]
Net investment income	$ 272	$ 276

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Pension and Other Postretirement Benefits - Effect of Foreign Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Pension Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan cost	$ 5	$ 0
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan cost	$ 2	$ 2

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Pension and Other Postretirement Benefits - Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Pension And Other Postretirement Footnote Text Details [Abstract]
Postretirement benefits liability adjustment, (increase) decrease to equity, pre-tax	$ (16)
Postretirement benefits liability adjustment, (increase) decrease to equity, after-tax	(11)	$ (11)
Pension Benefits [Member]
Change in benefit obligation [Abstract]
Service cost	0	1
Interest cost	50	48
Change in plan assets [Roll Forward]
Contributions	0
Components of net pension cost and other postretirement benefits cost tables detail [Abstract]
Service cost	0	1
Interest cost	50	48
Expected long-term return on plan assets	(62)	(66)
Amortization of net loss from past experience	17	17
Amortization of prior service cost	0	0
Defined benefit plan cost	5	0
Pension And Other Postretirement Footnote Text Details [Abstract]
Expected pension contributions for the remainder of the year	0
Other Postretirement Benefits [Member]
Change in benefit obligation [Abstract]
Service cost	0	0
Interest cost	3	3
Components of net pension cost and other postretirement benefits cost tables detail [Abstract]
Service cost	0	0
Interest cost	3	3
Expected long-term return on plan assets	0	0
Amortization of net loss from past experience	0	0
Amortization of prior service cost	(1)	(1)
Defined benefit plan cost	$ 2	$ 2

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Debt - Short-term and Long-term Debt (Details) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total short-term debt		$ 399	$ 149
Long-term debt, carrying value		4,791	5,020
Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Commercial paper		100	100
Current maturities of long-term debt		250	0
Other, including capital leases		49	49
Total short-term debt		399	149
Long-term debt, carrying value		4,791	5,020
$250 million, 5.375% Notes due 2017 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 250	$ 250
Long-term debt, stated interest rate		5.375%	5.375%
Long-term debt, carrying value		$ 0	$ 249
$131 million, 6.35% Notes due 2018 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 131	$ 131
Long-term debt, stated interest rate		6.35%	6.35%
Long-term debt, carrying value		$ 131	$ 131
$250 million, 4.375% Notes due 2020 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 250	$ 250
Long-term debt, stated interest rate		4.375%	4.375%
Long-term debt, carrying value	[1]	$ 261	$ 254
$300 million, 5.125% Notes due 2020 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 300	$ 300
Long-term debt, stated interest rate		5.125%	5.125%
Long-term debt, carrying value	[1]	$ 308	$ 303
$78 million, 6.37% Notes due 2021 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 78	$ 78
Long-term debt, stated interest rate		6.37%	6.37%
Long-term debt, carrying value		$ 78	$ 78
$300 million, 4.5% Notes due 2021 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 300	$ 300
Long-term debt, stated interest rate		4.50%	4.50%
Long-term debt, carrying value	[1]	$ 311	$ 304
$750 million, 4% Notes due 2022 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 750	$ 750
Long-term debt, stated interest rate		4.00%	4.00%
Long-term debt, carrying value		$ 743	$ 743
$100 million, 7.65% Notes due 2023 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 100	$ 100
Long-term debt, stated interest rate		7.65%	7.65%
Long-term debt, carrying value		$ 100	$ 100
$17 million, 8.3% Notes due 2023 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 17	$ 17
Long-term debt, stated interest rate		8.30%	8.30%
Long-term debt, carrying value		$ 17	$ 17
$900 million, 3.25% Notes Due 2025 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 900	$ 900
Long-term debt, stated interest rate		3.25%	3.25%
Long-term debt, carrying value		$ 892	$ 892
$300 million, 7.875% Debentures due 2027 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 300	$ 300
Long-term debt, stated interest rate		7.875%	7.875%
Long-term debt, carrying value		$ 299	$ 299
$83 million, 8.3% Step Down Notes due 2033 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 83	$ 83
Long-term debt, stated interest rate		8.30%	8.30%
Long-term debt, carrying value		$ 82	$ 82
$500 million, 6.15% Notes due 2036 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 500	$ 500
Long-term debt, stated interest rate		6.15%	6.15%
Long-term debt, carrying value		$ 498	$ 498
$300 million, 5.875% Notes due 2041 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 300	$ 300
Long-term debt, stated interest rate		5.875%	5.875%
Long-term debt, carrying value		$ 296	$ 295
$750 million, 5.375% Notes due 2042 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 750	$ 750
Long-term debt, stated interest rate		5.375%	5.375%
Long-term debt, carrying value		$ 743	$ 743
Other, including capital leases [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, carrying value		$ 32	$ 32

[1] The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 10 for further information about the Company’s interest rate risk management and these derivative instruments.

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Debt - Revolving Credit and Letter of Credit (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Line of Credit Facility [Line Items]
Debt outstanding	$ 5,200
Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit agreement term	5 years
Maximum borrowing capacity under credit facility	$ 1,500
Number of participating banks	16
Total commitment amount under option to increase borrowing capacity	$ 2,000
Expiration date	Dec. 12, 2019
Covenant terms	The credit agreement includes options subject to consent by the administrative agent and the committing banks to increase the commitment amount to $2 billion and to extend the term past December 12, 2019. The credit agreement is available for general corporate purposes, including for the issuance of letters of credit. The credit agreement contains customary covenants and restrictions, including a financial covenant that the Company may not permit its leverage ratio – which is total consolidated debt to total consolidated capitalization (each as defined in the credit agreement) – to be greater than 0.50. The leverage ratio calculation excludes net unrealized appreciation in fixed maturities and the portion of the post-retirement benefits liability adjustment attributable to pension that is included in accumulated other comprehensive loss on the Company’s consolidated balance sheets.
Leverage ratio covenant	50.00%
Additional borrowing capacity under maximum debt coverage covenant	$ 8,300
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity under credit facility	500
Letters of credit outstanding	$ 14
Line of Credit Facility, Covenant Compliance	The Company was in compliance with its debt covenants as of March 31, 2016.
Primary Commitment Holders [Member] | Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Number of participating banks	3
Percent held by each primary commitment holder	12.00%
Minor Commitment Holders [Member] | Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Number of participating banks	13
Collective percentage held by secondary commitment holders	64.00%

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Common and Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Common: Par value $.25, 600,000,000 shares authorized
Treasury stock	39,638,264	38,421,636
Issued - December 31	296,000,000
Common Stock, par value and shares authorized
Common stock, par value per share	$ 0.25		$ 0.25
Common stock shares authorized	600,000,000		600,000,000
Payments For Repurchase Of Common Stock	$ 139	$ 413

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), beginning	$ (1,250)
Shareholders' other comprehensive income (loss)	262	$ 2
Accumulated other comprehensive income (loss), ending	(988)
Realized investment (gains) losses	32	(73)
Other operating expenses	2,321	2,204
Net unrealized appreciation on securities [ Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), before tax, beginning	612	955
Other comprehensive income (loss) before reclassifications, pre-tax	227	148
Reclassification adjustment, pre-tax	28	(20)
Other comprehensive income (loss), pre-tax	255	128
Accumulated other comprehensive income (loss), before tax, ending	867	1,083
Accumulated other comprehensive income/loss tax (expense) benefit, beginning	(194)	(335)
Other comprehensive income (loss), securities, before reclassifications, tax (expense) benefit	(72)	(47)
Reclassification adjustment, securities, tax (expense) benefit	(10)	7
Other comprehensive income (loss), tax (expense) benefit	(82)	(40)
Accumulated other comprehensive income/loss tax (expense) benefit, ending	(276)	(375)
Accumulated other comprehensive income (loss), beginning	418	620
Other comprehensive income (loss) before reclassifications, after-tax	155	101
Reclassification adjustment, after-tax	18	(13)
Shareholders' other comprehensive income (loss)	173	88
Accumulated other comprehensive income (loss), ending	591	708
Net unrealized appreciation on securities [ Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Realized investment (gains) losses	28	(20)
Net unrealized appreciation on derivatives [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), before tax, beginning	10	(12)
Other comprehensive income (loss), pre-tax	(4)	10
Accumulated other comprehensive income (loss), before tax, ending	6	(2)
Accumulated other comprehensive income/loss tax (expense) benefit, beginning	(3)	4
Other comprehensive income (loss), tax (expense) benefit	1	(3)
Accumulated other comprehensive income/loss tax (expense) benefit, ending	(2)	1
Accumulated other comprehensive income (loss), beginning	7	(8)
Shareholders' other comprehensive income (loss)	(3)	7
Accumulated other comprehensive income (loss), ending	4	(1)
Net translation of foreign currencies [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), before tax, beginning	(295)	(71)
Other comprehensive income (loss), pre-tax	83	(109)
Accumulated other comprehensive income (loss), before tax, ending	(212)	(180)
Accumulated other comprehensive income/loss tax (expense) benefit, beginning	21	9
Other comprehensive income (loss), tax (expense) benefit	(2)	5
Accumulated other comprehensive income/loss tax (expense) benefit, ending	19	14
Accumulated other comprehensive income (loss), beginning	(274)	(62)
Shareholders' other comprehensive income (loss)	81	(104)
Accumulated other comprehensive income (loss), ending	(193)	(166)
Postretirement benefits liability adjustment [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive income (loss), before tax, beginning	(2,155)	(2,286)
Reclassification adjustment, pre-tax	16	16
Accumulated other comprehensive income (loss), before tax, ending	(2,139)	(2,270)
Accumulated other comprehensive income/loss tax (expense) benefit, beginning	754	800
Reclassification adjustment, postretirement benefits, tax (expense) benefit	(5)	(5)
Accumulated other comprehensive income/loss tax (expense) benefit, ending	749	795
Accumulated other comprehensive income (loss), beginning	(1,401)	(1,486)
Reclassification adjustment, after-tax	11	11
Accumulated other comprehensive income (loss), ending	(1,390)	(1,475)
Postretirement benefits liability adjustment [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other operating expenses	16	16
Reclassification adjustment for amortization of net losses from past experience and prior service costs [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Reclassification adjustment, pre-tax	16	16
Reclassification adjustment, postretirement benefits, tax (expense) benefit	(5)	(5)
Reclassification adjustment, after-tax	11	11
Reclassification adjustment for amortization of net losses from past experience and prior service costs [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other operating expenses	$ 16	$ 16

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Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Current taxes
Total taxes, current	$ 294	$ 308
Deferred taxes (benefits)
Total taxes, deferred	11	15
Total taxes	$ 305	$ 323

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Income Taxes - Reconciliation to Nominal Tax Rate (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reconciliation of total taxes to nominal federal rate details [Abstract]
Total income taxes	$ 305	$ 323

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Income Taxes - Effective Tax Rates (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Taxes [Abstract]
Consolidated effective tax rate	37.20%	37.80%
Accumulated undistributed foreign earnings	$ 2,400
Cumulative unrecognized deferred tax liabilities	$ 340

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Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Deferred tax liabilities [Abstract]
Net deferred income tax assets	$ 276	$ 379

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Income Taxes - Uncertain Tax Positions (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)
Reconciliation of unrecognized tax benefits details [Abstract]
Unrecognized tax benefits increase (decrease)

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Segment Information - Special Item Charges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
After-tax Impact [Abstract]
Merger-related transaction costs	$ 36
Total Before-tax Impact [Abstract]
Merger-related transaction costs	40
Total special items	$ 36	$ 0

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Segment Information - Segment Financial Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Premiums, fees and other revenues and mail order pharmacy revenues	$ 9,644	$ 9,118
Net investment income	272	276
Total operating revenues	9,916	9,394
Total revenues	9,884	9,467
Operating Segments [Member] | Global Health Care [Member]
Segment Reporting Information [Line Items]
Premiums, fees and other revenues and mail order pharmacy revenues	7,812	7,371
Net investment income	72	75
Total operating revenues	7,884	7,446
Total revenues	7,867	7,495
Operating Segments [Member] | Global Supplemental Benefits [Member]
Segment Reporting Information [Line Items]
Premiums, fees and other revenues and mail order pharmacy revenues	780	743
Net investment income	26	26
Total operating revenues	806	769
Total revenues	804	772
Operating Segments [Member] | Group Disability And Life [Member]
Segment Reporting Information [Line Items]
Premiums, fees and other revenues and mail order pharmacy revenues	1,029	976
Net investment income	80	83
Total operating revenues	1,109	1,059
Total revenues	1,106	1,081
Operating Segments [Member] | Other Operations Segment [Member]
Segment Reporting Information [Line Items]
Premiums, fees and other revenues and mail order pharmacy revenues	27	32
Net investment income	90	92
Total operating revenues	117	124
Total revenues	107	123
Corporate [Member]
Segment Reporting Information [Line Items]
Premiums, fees and other revenues and mail order pharmacy revenues	(4)	(4)
Net investment income	4	0
Total operating revenues	0	(4)
Total revenues	$ 0	$ (4)

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Segment Information - Reconciliation to Adjusted Income From Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Shareholders' Net Income	$ 519	$ 533
After-tax adjustments to reconcile to adjusted income from operations:
Realized investment (gains) losses	21	(48)
Amortization of other acquired intangible assets	25	28
Special items:
Merger-related transaction costs	36
Total special items	36	0
Adjusted income from operations	601	513
Operating Segments [Member] | Global Health Benefits Segment [Member]
Segment Reporting Information [Line Items]
Shareholders' Net Income	514	453
After-tax adjustments to reconcile to adjusted income from operations:
Realized investment (gains) losses	12	(32)
Amortization of other acquired intangible assets	18	23
Special items:
Merger-related transaction costs	0
Total special items	0
Adjusted income from operations	544	444
Operating Segments [Member] | Global Supplemental Benefits Segment [Member]
Segment Reporting Information [Line Items]
Shareholders' Net Income	59	67
After-tax adjustments to reconcile to adjusted income from operations:
Realized investment (gains) losses	1	(3)
Amortization of other acquired intangible assets	7	5
Special items:
Merger-related transaction costs	0
Total special items	0
Adjusted income from operations	67	69
Operating Segments [Member] | Group Disability And Life Segment [Member]
Segment Reporting Information [Line Items]
Shareholders' Net Income	13	65
After-tax adjustments to reconcile to adjusted income from operations:
Realized investment (gains) losses	2	(14)
Amortization of other acquired intangible assets	0	0
Special items:
Merger-related transaction costs	0
Total special items	0
Adjusted income from operations	15	51
Operating Segments [Member] | Other Operations Segment [Member]
Segment Reporting Information [Line Items]
Shareholders' Net Income	14	19
After-tax adjustments to reconcile to adjusted income from operations:
Realized investment (gains) losses	6	1
Amortization of other acquired intangible assets	0	0
Special items:
Merger-related transaction costs	0
Total special items	0
Adjusted income from operations	20	20
Corporate [Member]
Segment Reporting Information [Line Items]
Shareholders' Net Income	(81)	(71)
After-tax adjustments to reconcile to adjusted income from operations:
Realized investment (gains) losses	0	0
Amortization of other acquired intangible assets	0	0
Special items:
Merger-related transaction costs	36
Total special items	36
Adjusted income from operations	$ (45)	$ (71)

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Segment Information - Revenues by Product Type (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue from External Customer [Line Items]
Premiums	$ 7,746	$ 7,402
Mail order pharmacy revenues	697	578
Revenues from external customers	$ 9,644	$ 9,118

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Segment Information - Foreign and U.S. Revenues (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from external customers	$ 9,644	$ 9,118

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Segment Information - Concentration Risk (Details) - CMS [Member] - USD ($) $ in Billions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Concentration Risk [Line Items]
Net receivables from CMS	$ 1.5		$ 1.5
Revenue Consolidated [Member] | Government Contracts Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	21.00%	22.00%

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Contingencies and Other Matters - Guarantees (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Financial Guarantee [Member] | Retirement And Life Insurance Contracts [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	$ 490
Guarantee Obligations, Current Carrying Value	$ 0
Percentage of benefit obligations reinsured	13.00%
Financial Guarantee [Member] | Retirement And Life Insurance Contracts [Member] | Minimum [Member]
Guarantee Obligations [Line Items]
Assets maintained by employers to cover benefit obligations	$ 490
Guarantee Type, Other [Member] | Variable Annuity [Member] | Guaranteed Minimum Income Benefit [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	$ 802
Annuitization election period	30 days
Underlying mutual fund investment values	$ 908
Guarantee Type, Other [Member] | Variable Annuity [Member] | Guaranteed Minimum Income Benefit [Member] | Minimum [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Current Carrying Value	802
Indemnification obligations to lenders [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	178
Guarantee Obligations, Current Carrying Value	0
Indemnification obligations in connection with acquistion, disposition and reinsurance transactions [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Current Carrying Value	0
Market Value Guarantee [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	41
Guarantee Obligations, Current Carrying Value	14
Expiring In 2016 [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	16
Expiring In 2022 [Member]
Guarantee Obligations [Line Items]
Guarantee Obligations, Maximum Exposure, Undiscounted	$ 25

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Contingencies and Other Matters - Legal and Regulatory Matters (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2013
Pending Litigation [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual, at Carrying Value	$ 190
Loss Contingency Accrual At Carrying Value, Net Of Tax	$ 125
Unfavorable Regulatory Action [Member]
Loss Contingencies [Line Items]
Monitoring period	2 years
Reassessment period	2 years
Reassessment Period, California	3 years
Loss Contingency Accrual, Carrying Value, Provision			$ 77
Loss Contingency Accrual Carrying Value, Provision, After Tax			$ 51
Insurance-related Assessments [Member]
Loss Contingencies [Line Items]
Loss Contingency Accrual, Carrying Value, Provision

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Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Quarterly Results [Abstract]
Total revenues	$ 9,884	$ 9,467
Income before income taxes	819	854
Shareholders' net income	$ 519	$ 533
Shareholders' Net Income Per Share:
EPS, basic	$ 2.04	$ 2.08
EPS, diluted	2.00	2.04
Stock And Dividend Data [Abstract]
Dividends Declared Per Share	$ 0.04	$ 0.04
Quarterly Financial Data Text Details [Abstract]
Merger-related transaction costs	$ 36

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Schedule II - Condensed Financial Information, Statements of Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating expenses:
Total operating expenses	$ 2,321	$ 2,204
Income before Income Taxes	819	854
Income tax expense (benefit)	305	323
Shareholders' Net Income	519	533
Shareholders' other comprehensive income (loss):
Net unrealized appreciation (depreciation) on securities	173	88
Net unrealized appreciation (depreciation), derivatives	(3)	7
Net translation of foreign currencies	81	(104)
Postretirement benefits liability adjustment	11	11
Shareholders' other comprehensive income (loss)	262	2
Shareholders' comprehensive income (loss)	$ 781	$ 535

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Schedule II - Condensed Financial Information, Balance Sheets (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Assets
Cash and cash equivalents	$ 2,401	$ 1,968	$ 2,620	$ 1,420
Short-term investments	465	381
Other assets	2,788	2,476
Total assets	58,884	57,088
Liabilities:
Short-term debt	399	149
Long-term debt, carrying value	4,791	5,020
Total liabilities	46,127	44,975
Shareholders Equity:
Common stock (shares issued, 296; authorized, 600)	74	74
Additional paid-in capital	2,874	2,859
Accumulated other comprehensive loss	(988)	(1,250)
Retained earnings	12,541	12,121
Less treasury stock, at cost	(1,826)	(1,769)
Total shareholders' equity	12,675	12,035
Total liabilities and equity	$ 58,884	$ 57,088

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Schedule II - Condensed Financial Information, Balance Sheets - Parentheticals (Details) - shares shares in Millions	Mar. 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets
Common stock shares issued	296	296
Common stock shares authorized	600	600

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Schedule II - Condensed Financial Information, Statements of Cash Flows (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Cash Flows from Operating Activities
Shareholders' net income		$ 519	$ 533
Adjustments to reconcile shareholders' net income to net cash provided by (used in) operating activities:
Other liabilities		(263)	157
Other, net	[1]	5	17
Net cash provided by (used in) operating activities	[1]	894	737
Cash Flows from Investing Activities
Short term investments purchased		(198)	(420)
Net cash provided by (used in) investing activities		(333)	(49)
Cash Flows from Financing Activities
Net change in short-term debt		(6)	(5)
Net proceeds on issuance of long-term debt		0	894
Issuance of common stock		10	99
Repurchase of common stock		(139)	(413)
Net cash provided by (used in) financing activities	[1]	(146)	530
Net increase (decrease) in cash and cash equivalents		433	1,200
Cash and cash equivalents, January 1		1,968	1,420
Cash and cash equivalents, March 31		$ 2,401	$ 2,620

[1] As required by the adoption of ASU 2016-09, the Company retrospectively reclassified $73 million of cash payments from operating to financing activities for the three months ended March 31, 2015. These payments were related to employee tax obligations associated with stock compensation. The comparable amount reported in financing activities for the three months ended March 31, 2016 was $67 million. See Note 2 for further discussion.

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Schedule II - Condensed Financial Information, Short-term and Long-term Debt (Details) - USD ($) $ in Millions		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total short-term debt		$ 399	$ 149
Long-term debt, carrying value		4,791	5,020
Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Commercial paper		100	100
Total short-term debt		399	149
Long-term debt, carrying value		4,791	5,020
$250 million, 5.375% Notes due 2017 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 250	$ 250
Long-term debt, stated interest rate		5.375%	5.375%
Long-term debt, carrying value		$ 0	$ 249
$131 million, 6.35% Notes due 2018 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 131	$ 131
Long-term debt, stated interest rate		6.35%	6.35%
Long-term debt, carrying value		$ 131	$ 131
$250 million, 4.375% Notes due 2020 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 250	$ 250
Long-term debt, stated interest rate		4.375%	4.375%
Long-term debt, carrying value	[1]	$ 261	$ 254
$300 million, 5.125% Notes due 2020 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 300	$ 300
Long-term debt, stated interest rate		5.125%	5.125%
Long-term debt, carrying value	[1]	$ 308	$ 303
$300 million, 4.5% Notes due 2021 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 300	$ 300
Long-term debt, stated interest rate		4.50%	4.50%
Long-term debt, carrying value	[1]	$ 311	$ 304
$750 million, 4% Notes due 2022 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 750	$ 750
Long-term debt, stated interest rate		4.00%	4.00%
Long-term debt, carrying value		$ 743	$ 743
$100 million, 7.65% Notes due 2023 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 100	$ 100
Long-term debt, stated interest rate		7.65%	7.65%
Long-term debt, carrying value		$ 100	$ 100
$17 million, 8.3% Notes due 2023 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 17	$ 17
Long-term debt, stated interest rate		8.30%	8.30%
Long-term debt, carrying value		$ 17	$ 17
$900 million, 3.25% Notes Due 2025 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 900	$ 900
Long-term debt, stated interest rate		3.25%	3.25%
Long-term debt, carrying value		$ 892	$ 892
$300 million, 7.875% Debentures due 2027 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 300	$ 300
Long-term debt, stated interest rate		7.875%	7.875%
Long-term debt, carrying value		$ 299	$ 299
$83 million, 8.3% Step Down Notes due 2033 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 83	$ 83
Long-term debt, stated interest rate		8.30%	8.30%
Long-term debt, carrying value		$ 82	$ 82
$500 million, 6.15% Notes due 2036 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 500	$ 500
Long-term debt, stated interest rate		6.15%	6.15%
Long-term debt, carrying value		$ 498	$ 498
$300 million, 5.875% Notes due 2041 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 300	$ 300
Long-term debt, stated interest rate		5.875%	5.875%
Long-term debt, carrying value		$ 296	$ 295
$750 million, 5.375% Notes due 2042 [Member] | Uncollateralized Debt [Member]
Debt Instrument [Line Items]
Long-term debt, face value		$ 750	$ 750
Long-term debt, stated interest rate		5.375%	5.375%
Long-term debt, carrying value		$ 743	$ 743

[1] The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 10 for further information about the Company’s interest rate risk management and these derivative instruments.

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Schedule II - Condensed Financial Information, Credit Facility (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Line of Credit Facility [Line Items]
Debt outstanding	$ 5,200
Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit agreement term	5 years
Maximum borrowing capacity under credit facility	$ 1,500
Number of participating banks	16
Total commitment amount under option to increase borrowing capacity	$ 2,000
Expiration date	Dec. 12, 2019
Covenant terms	The credit agreement includes options subject to consent by the administrative agent and the committing banks to increase the commitment amount to $2 billion and to extend the term past December 12, 2019. The credit agreement is available for general corporate purposes, including for the issuance of letters of credit. The credit agreement contains customary covenants and restrictions, including a financial covenant that the Company may not permit its leverage ratio – which is total consolidated debt to total consolidated capitalization (each as defined in the credit agreement) – to be greater than 0.50. The leverage ratio calculation excludes net unrealized appreciation in fixed maturities and the portion of the post-retirement benefits liability adjustment attributable to pension that is included in accumulated other comprehensive loss on the Company’s consolidated balance sheets.
Leverage ratio covenant	50.00%
Additional borrowing capacity under maximum debt coverage covenant	$ 8,300
Letter of Credit [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity under credit facility	500
Letters of credit outstanding	$ 14
Line of Credit Facility, Covenant Compliance	The Company was in compliance with its debt covenants as of March 31, 2016.
Primary Commitment Holders [Member] | Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Number of participating banks	3
Percent held by each primary commitment holder	12.00%
Minor Commitment Holders [Member] | Revolving Credit And Letter Of Credit Facility [Member]
Line of Credit Facility [Line Items]
Number of participating banks	13
Collective percentage held by secondary commitment holders	64.00%

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Schedule II - Condensed Financial Information, Notes (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Maturities Of Debt Excluding Capital Leases [Abstract]
Interest paid on long-term and short-term debt	$ 69	$ 69

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Schedule IV - Reinsurance (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Premiums:
Ceded to other companies, premiums	$ 136	$ 130
Net amount	$ 7,746	$ 7,402