Cigna Group
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Accumulated Other Comprehensive Income (Loss)
Note 14 – Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) ("AOCI") includes net unrealized appreciation on securities and derivatives, change in discount rate and instrument-specific credit risk for certain long-duration insurance contractholder liabilities (Note 9 to the Consolidated Financial Statements), foreign currency translation and the net postretirement benefits liability adjustment. AOCI includes the Company's share from unconsolidated entities reported on the equity method. Generally, tax effects in AOCI are established at the currently enacted tax rate and reclassified to Shareholders' net income in the same period that the related pre-tax AOCI reclassifications are recognized.
Shareholders' other comprehensive loss, net of tax, for the three and six months ended June 30, 2024 and June 30, 2023, is primarily attributable to the change in discount rates for certain long-duration liabilities (following the adoption of Targeted Improvements to the Accounting for Long-Duration Contracts in 2023) and unrealized changes in the market values of securities and derivatives, including the impacts from unconsolidated entities reported on the equity method.
Changes in the components of AOCI were as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2024 | 2023 |
| Securities and Derivatives | ||||
| Beginning balance | $292 | $(138) | $171 | $(332) |
| Unrealized appreciation on securities and derivatives | 106 | 7 | 249 | 259 |
| Tax (expense) | (29) | (12) | (68) | (66) |
| Net unrealized appreciation (depreciation) on securities and derivatives | 77 | (5) | 181 | 193 |
| Reclassification adjustment for losses included in Shareholders' net income (Net realized investment (losses) gains) | 39 | 31 | 61 | 26 |
| Reclassification adjustment for tax (benefit) included in Shareholders' net income | (8) | (6) | (13) | (5) |
| Net losses reclassified from AOCI to Shareholders' net income | 31 | 25 | 48 | 21 |
| Other comprehensive income, net of tax | 108 | 20 | 229 | 214 |
| Ending balance | $400 | $(118) | $400 | $(118) |
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2024 | 2023 |
| Net long-duration insurance and contractholder liabilities measurement adjustments | ||||
| Beginning balance | $(1,531) | $(587) | $(971) | $(256) |
| Current period change in discount rate for certain long-duration liabilities | (288) | (147) | (1,020) | (558) |
| Tax benefit | 76 | 36 | 262 | 137 |
| Net current period change in discount rate for certain long-duration liabilities | (212) | (111) | (758) | (421) |
| Current period change in instrument-specific credit risk for market risk benefits | — | (7) | (18) | (33) |
| Tax benefit | — | 1 | 4 | 6 |
| Net current period change in instrument-specific credit risk for market risk benefits | — | (6) | (14) | (27) |
| Other comprehensive (loss), net of tax | (212) | (117) | (772) | (448) |
| Ending balance | $(1,743) | $(704) | $(1,743) | $(704) |
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2024 | 2023 |
| Translation of foreign currencies | ||||
| Beginning balance | $(175) | $(138) | $(149) | $(154) |
| Translation of foreign currencies | (4) | (20) | (28) | (5) |
| Tax (expense) benefit | (1) | 1 | (3) | 2 |
| Shareholders' other comprehensive income (loss), net of tax | (5) | (19) | (31) | (3) |
| Ending balance | $(180) | $(157) | $(180) | $(157) |
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2024 | 2023 |
| Postretirement benefits liability | ||||
| Beginning balance | $(910) | $(906) | $(915) | $(916) |
| Reclassification adjustment for amortization of net prior actuarial losses and prior service costs (Interest expense and other) | 7 | 11 | 15 | 24 |
| Reclassification adjustment for tax (benefit) included in Shareholders' net income | — | (3) | (3) | (6) |
| Net adjustments reclassified from AOCI to Shareholders' net income | 7 | 8 | 12 | 18 |
| Valuation update | (20) | (2) | (20) | (2) |
| Tax benefit | 4 | 1 | 4 | 1 |
| Net change due to valuation update | (16) | (1) | (16) | (1) |
| Other comprehensive (loss) income, net of tax | (9) | 7 | (4) | 17 |
| Ending balance | $(919) | $(899) | $(919) | $(899) |
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (In millions) | 2024 | 2023 | 2024 | 2023 |
| Total Accumulated other comprehensive loss | ||||
| Beginning balance | $(2,324) | $(1,769) | $(1,864) | $(1,658) |
| Shareholders' other comprehensive (loss), net of tax | (118) | (109) | (578) | (220) |
| Ending balance | $(2,442) | $(1,878) | $(2,442) | $(1,878) |
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