CIGNA HOLDING CO, 10-K filed on 2/28/2018
Annual Report
v3.8.0.1
Document and Entity Information - USD ($)
$ / shares in Units, $ in Billions
 12 Months Ended
Dec. 31, 2017
Jan. 31, 2018
Jun. 30, 2017
Dec. 31, 2016
Dec. 31, 2015
Document Document And Entity Information [Abstract]          
Document Type 10-K        
Document Period End Date Dec. 31, 2017        
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   242,875,357      
Amendment Flag false        
Entity Current Reporting Status Yes        
Entity Well Known Seasoned Issuer Yes        
Entity Voluntary Filers No        
Entity Public Float     $ 42.2    
Document Fiscal Year Focus 2017        
Document Fiscal Period Focus FY        
Common stock, par value per share $ 0.25     $ 0.25 $ 0.25
v3.8.0.1
Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues      
Premiums $ 32,307 $ 30,626 $ 29,642
Fees and other revenues 4,867 4,760 4,488
Net investment income 1,226 1,147 1,153
Mail order pharmacy revenues 2,979 2,966 2,536
Realized investment gains (losses):      
Other-than-temporary impairments on fixed maturities (27) (35) (112)
Other realized investment gains (losses), net 264 204 169
Net realized investment gains (losses) 237 169 57
Total revenues 41,616 39,668 37,876
Benefits and Expenses      
Global Health Care medical costs 19,967 19,009 18,354
Other benefit expenses 5,439 5,477 4,936
Mail order pharmacy costs 2,456 2,468 2,134
Other operating expenses 10,033 9,584 8,982
Amortization of other acquired intangible assets, net 115 151 143
Total benefits and expenses 38,010 36,689 34,549
Income before Income Taxes 3,606 2,979 3,327
Income taxes (benefits):      
Current 1,132 1,062 1,229
Deferred 242 74 21
Total income taxes 1,374 1,136 1,250
Net Income 2,232 1,843 2,077
Less: Net Income (Loss) Attributable to Noncontrolling Interests (5) (24) (17)
Shareholders' Net Income $ 2,237 $ 1,867 $ 2,094
Shareholders' Net Income Per Share:      
Basic $ 8.92 $ 7.31 $ 8.17
Diluted 8.77 7.19 8.04
Dividends Declared Per Share $ 0.04 $ 0.04 $ 0.04
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Consolidated Statements of Shareholders' Comprehensive Income - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Comprehensive Income                      
Shareholders' Net Income $ 266 $ 560 $ 813 $ 598 $ 382 $ 456 $ 510 $ 519 $ 2,237 $ 1,867 $ 2,094
Shareholders' other comprehensive income (loss), net of tax:                      
Net unrealized appreciation (depreciation) on securities                 (34) (56) (202)
Net unrealized appreciation (depreciation) on derivatives                 (3) (4) 15
Net translation of foreign currencies                 304 (95) (212)
Postretirement benefits liability adjustment                 33 23 85
Shareholders' other comprehensive income (loss), net of tax                 300 (132) (314)
Shareholders' comprehensive income (loss)                 $ 2,537 $ 1,735 $ 1,780
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Consolidated Statements of Total Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Comprehensive Income      
Shareholders' comprehensive income (loss) $ 2,537 $ 1,735 $ 1,780
Comprehensive income (loss) attributable to noncontrolling interests:      
Net income (loss) attributable to redeemable noncontrolling interests 0 (7) (6)
Net income (loss) attributable to other noncontrolling interests (5) (17) (11)
Other comprehensive income (loss) attributable to redeemable noncontrolling interests (3) (10) (17)
Other comprehensive income (loss) attributable to other noncontrolling interests 0 0 (1)
Total comprehensive income (loss) attributable to noncontrolling interests (8) (34) (35)
Total comprehensive income $ 2,529 $ 1,701 $ 1,745
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Consolidated Balance Sheets - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Investments:    
Fixed maturities, at fair value (amortized cost, $21,867; $19,942) $ 23,138 $ 20,961
Equity securities, at fair value (cost, $589; $583) 588 583
Commercial Mortgage Loans 1,761 1,666
Policy loans 1,415 1,452
Other long-term investments 1,518 1,462
Short-term investments 199 691
Total investments 28,619 26,815
Cash and cash equivalents 2,972 3,185
Premiums, accounts and notes receivable, net 3,380 3,077
Reinsurance recoverables 6,046 6,478
Deferred policy acquisition costs 2,237 1,818
Property and equipment 1,563 1,536
Deferred tax assets, net 33 304
Goodwill 6,164 5,980
Other assets, including other intangibles 2,316 2,227
Separate account assets 8,423 7,940
Total assets 61,753 59,360
Liabilities:    
Contractholder deposit funds 8,196 8,458
Future policy benefits 10,040 9,648
Unpaid claims and claim expenses 5,168 4,917
Global Health Care medical costs payable 2,719 2,532
Unearned premiums 724 634
Total insurance and contractholder liabilities 26,847 26,189
Accounts payable, accrued expenses and other liabilities 7,260 6,414
Short-term debt 240 276
Long-term debt 5,199 4,756
Separate account liabilities 8,423 7,940
Total liabilities 47,969 45,575
Contingencies - Note 21
Redeemable noncontrolling interests 49 58
Shareholders' Equity    
Common stock (par value per share, $0.25; shares issued, 296; authorized, 600) 74 74
Additional paid-in capital 2,940 2,892
Accumulated other comprehensive (loss) (1,082) (1,382)
Retained earnings 15,824 13,855
Less: treasury stock, at cost (4,021) (1,716)
Total shareholders' equity 13,735 13,723
Noncontrolling interests 0 4
Total equity 13,735 13,727
Total liabilities and equity $ 61,753 $ 59,360
Shareholders' Equity Per Share $ 56.3 $ 53.42
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Consolidated Balance Sheets (Parentheticals) - USD ($)
shares in Thousands, $ in Millions
Dec. 31, 2017
Dec. 31, 2016
Consolidated Balance Sheets    
Fixed maturities, at amortized cost $ 21,867 $ 19,942
Equity securities, at cost $ 589 $ 583
Common stock, par value per share $ 0.25 $ 0.25
Common stock shares issued 296,145 296,145
Common stock shares authorized 600,000 600,000
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Consolidated Statements 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]
Other noncontrolling interests [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 183 183   99   (252) 336  
Other comprehensive income (loss) (315) (314)     (314)     (1)
Net income (loss) 2,083 2,094       2,094   (11)
Common dividends declared (per share: $0.04) (10) (10)       (10)    
Repurchase of common stock (683) (683)         (683)  
Other transactions impacting noncontrolling interest (3) (9)   (9)       6
Total Equity, end of period at Dec. 31, 2015 12,044 12,035 74 2,859 (1,250) 12,121 (1,769) 9
Beginning Balance at Dec. 31, 2014 90              
Redeemable Noncontrolling Interests                
Other comprehensive income (loss) (17)              
Net income (loss) (6)              
Other transactions impacting noncontrolling interest 2              
Ending Balance at Dec. 31, 2015 69              
Increase (Decrease) In Stockholders Equity [Roll Forward]                
Effect of issuing stock for employee benefit plans 91 91   51   (123) 163  
Other comprehensive income (loss) (132) (132)     (132)      
Net income (loss) 1,850 1,867       1,867   (17)
Common dividends declared (per share: $0.04) (10) (10)       (10)    
Repurchase of common stock (110) (110)         (110)  
Other transactions impacting noncontrolling interest (6) (18)   (18)       12
Total Equity, end of period at Dec. 31, 2016 13,727 13,723 74 2,892 (1,382) 13,855 (1,716) 4
Redeemable Noncontrolling Interests                
Other comprehensive income (loss) (10)              
Net income (loss) (7)              
Other transactions impacting noncontrolling interest 6              
Ending Balance at Dec. 31, 2016 58              
Increase (Decrease) In Stockholders Equity [Roll Forward]                
Effect of issuing stock for employee benefit plans 248 248   51   (258) 455  
Other comprehensive income (loss) 300 300     300      
Net income (loss) 2,232 2,237       2,237   (5)
Common dividends declared (per share: $0.04) (10) (10)       (10)    
Repurchase of common stock (2,760) (2,760)         (2,760)  
Other transactions impacting noncontrolling interest (2) (3)   (3)       1
Total Equity, end of period at Dec. 31, 2017 13,735 $ 13,735 $ 74 $ 2,940 $ (1,082) $ 15,824 $ (4,021) $ 0
Redeemable Noncontrolling Interests                
Other comprehensive income (loss) (3)              
Net income (loss) 0              
Other transactions impacting noncontrolling interest (6)              
Ending Balance at Dec. 31, 2017 $ 49              
v3.8.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flows from Operating Activities      
Net Income $ 2,232 $ 1,843 $ 2,077
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation and amortization 566 610 585
Realized investment (gains) losses (237) (169) (57)
Deferred income taxes (benefits) 242 74 21
Net changes in assets and liabilities, net of non-operating effects:      
Premiums, accounts and notes receivable (233) 663 (945)
Reinsurance recoverables 214 142 55
Deferred policy acquisition costs (282) (213) (182)
Other assets (171) 134 16
Insurance liabilities 506 683 657
Accounts payable, accrued expenses and other liabilities 639 124 423
Current income taxes 92 1 (25)
Debt extinguishment costs 321 0 100
Distributions from partnership investments [1] 161 144 137
Other, net [2] 36 (10) 71
Net cash provided by (used in) operating activities [1],[2] 4,086 4,026 2,933
Proceeds from investments sold:      
Fixed maturities and equity securities 2,012 1,544 1,555
Investment maturities and repayments:      
Fixed maturities and equity securities 2,051 1,755 1,435
Commercial mortgage loans 335 316 640
Other sales, maturities and repayments (primarily short-term and other long-term investments) [1] 1,702 1,431 1,160
Investments purchased or originated:      
Fixed maturities and equity securities (5,628) (5,191) (4,234)
Commercial mortgage loans (430) (165) (500)
Other (primarily short-term and other long-term investments) (1,065) (1,698) (1,183)
Property and equipment purchases, net (471) (461) (510)
Acquisitions, net of cash acquired (209) (4) (99)
Other, net 0 (101) 0
Net cash provided by (used in) investing activities [1] (1,703) (2,574) (1,736)
Cash Flows from Financing Activities      
Deposits and interest credited to contractholder deposit funds 1,230 1,460 1,429
Withdrawals and benefit payments from contractholder deposit funds (1,363) (1,362) (1,359)
Net change in short-term debt 80 (148) (21)
Payments for debt extinguishment (313) 0 (87)
Repayment of long-term debt (1,250) 0 (851)
Net proceeds on issuance of long-term debt 1,581 0 894
Repurchase of common stock (2,725) (139) (671)
Issuance of common stock 131 36 154
Other, net [2] (22) (72) (97)
Net cash provided by (used in) financing activities [2] (2,651) (225) (609)
Effect of foreign currency rate changes on cash and cash equivalents 55 (10) (40)
Net increase / (decrease) in cash and cash equivalents (213) 1,217 548
Cash and cash equivalents, January 1, 3,185 1,968 1,420
Cash and cash equivalents, December 31, 2,972 3,185 1,968
Supplemental Disclosure of Cash Information:      
Income taxes paid, net of refunds 1,036 1,064 1,194
Interest paid 240 244 245
Accounting Standards Update 2016-09 [Member]      
Net changes in assets and liabilities, net of non-operating effects:      
Other, net 61 72  
Net cash provided by (used in) operating activities 61 72  
Cash Flows from Financing Activities      
Other, net (61) (72)  
Net cash provided by (used in) financing activities (61) (72)  
Accounting Standards Update 2016-09 [Member] | Restatement Adjustment [Member]      
Net changes in assets and liabilities, net of non-operating effects:      
Other, net     79
Net cash provided by (used in) operating activities     79
Cash Flows from Financing Activities      
Other, net     (79)
Net cash provided by (used in) financing activities     (79)
Accounting Standards Update 2016-15 [Member]      
Net changes in assets and liabilities, net of non-operating effects:      
Distributions from partnership investments 161 144  
Net cash provided by (used in) operating activities 161 144  
Investment maturities and repayments:      
Other sales, maturities and repayments (primarily short-term and other long-term investments) (161) (144)  
Investments purchased or originated:      
Net cash provided by (used in) investing activities $ (161) $ (144)  
Accounting Standards Update 2016-15 [Member] | Restatement Adjustment [Member]      
Net changes in assets and liabilities, net of non-operating effects:      
Distributions from partnership investments     137
Net cash provided by (used in) operating activities     137
Investment maturities and repayments:      
Other sales, maturities and repayments (primarily short-term and other long-term investments)     (137)
Investments purchased or originated:      
Net cash provided by (used in) investing activities     $ (137)
[1]
As required in adopting ASU 2016-15 in 2016, the Company retrospectively reclassified $137 million of cash distributions of earnings from partnership investments from investing to operating activities in 2015. The comparable amounts reported in operating activities were $161 million in 2017 and $144 million in 2016.
[2]
As required in adopting Accounting Standard Update ("ASU") 2016-09 in 2016, the Company retrospectively reclassified $79 million of cash payments from operating to financing activities in 2015. These payments were related to employee tax obligations associated with stock compensation. The comparable amounts reported in financing activities were $61 million in 2017 and $72 million in 2016.
v3.8.0.1
Description of Business
 12 Months Ended
Dec. 31, 2017
Description Of Business [Abstract]  
Description of Business

Note 1 – Description of Business

Cigna Corporation, together with its subsidiaries (either individually or collectively referred to as “Cigna,” the “Company,” “we,” “our” or “us”) is a global health services organization dedicated to a mission of helping individuals improve their health, well-being and sense of security. To execute on our mission, Cigna's evolved strategy is to “Go Deeper”, “Go Local” and “Go Beyond” with a differentiated set of medical, dental, disability, life and accident insurance and related products and services offered by our subsidiaries. The majority of these products are offered through employers and other groups such as governmental and non-governmental organizations, unions and associations. Cigna also offers commercial health and dental insurance, Medicare and Medicaid products and health, life and accident insurance coverages to individuals in the United States and selected international markets. In addition to these ongoing operations, Cigna also has certain run-off operations.

The 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 (“Commercial 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 (“Government segment”) offers Medicare Advantage and Medicare Part D plans to seniors. This segment also offers Medicaid plans in selected markets.

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

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 guaranteed minimum death benefit (“GMDB”) and guaranteed minimum income benefit (“GMIB”) business effectively exited through reinsurance with Berkshire Hathaway Life Insurance Company of Nebraska (“Berkshire”) in 2013;
  • 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, including 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 and related excess tax benefits, expense associated with our frozen pension plans and certain overhead and project costs.
v3.8.0.1
Summary of Signficant Accounting Policies
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]

Note 2 – Summary of Significant Accounting Policies

Basis of Presentation

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.

Variable interest entities. See Note 13 for a discussion of consolidated variable interest entities.

Recent Accounting Guidance

The following tables provide information about recently adopted accounting guidance and accounting guidance not yet adopted that is applicable to Cigna.

Recently Adopted Accounting Guidance

Accounting Standard and Adoption DateEffects of Adopting New Guidance
GUIDANCE ADOPTED IN 2017
Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 118 ("SAB 118"), adopted December 31, 2017Guidance:
•Allows a company to recognize the effects of U.S. tax reform as provisional in its 2017 financial statements when it does not have the necessary information in reasonable detail to complete its accounting for the change in tax law.
•Establishes a maximum one-year measurement period that ends when a company has obtained the information necessary to finalize its accounting. During the measurement period, adjustments for the effects of the law will be recorded to the extent a reasonable estimate for all or a portion of the effects of the law can be made.
Effects of adoption:
•The Company has reported reasonable estimates of the income tax effects of U.S. tax reform as provisional in its financial statements.
•See Note 20 for disclosures about the impact of U.S. tax reform on the Company's financial statements.

Accounting Guidance Not Yet Adopted

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED JANUARY 1, 2018
Revenue from Contracts with Customers (Accounting Standards Update ("ASU") 2014-09 and related amendments)Required as of January 1, 2018Requires:
•Companies to estimate and allocate the expected customer contract revenues among distinct goods or services based on relative standalone selling prices
•Revenues to be recognized as goods or services are delivered
•New disclosures including presenting relevant categories of revenues and information about related contract assets and liabilities
•Adoption through retrospective restatement with or without using certain practical expedients or adoption with a cumulative effect adjustment
Expected effects:
•Guidance applies to the Company’s administrative service, mail order pharmacy and other non-insurance contracts, but does not apply to certain contracts within the scope of other GAAP, such as the Company's insurance and investment contracts accounted for under the Financial Accounting Standards Board's Accounting Standards Codification ("ASC") 944.
•The Company has completed its evaluation of the new requirements and the adoption of the new guidance will not have a material impact to its pattern of revenue recognition or net income.
•The Company will adopt the new guidance through retrospective restatement and is currently working to develop required disclosures and restate historical periods in line with its chosen method of adoption. The Company does not anticipate significant changes to its systems, processes or controls.
• The Company's cumulative effect of implementing this guidance will result in an immaterial decrease to the opening balance of retained earnings from establishing a contract liability for service fee revenue that must be recognized when services are provided after the termination of certain administrative service contracts.
•The Company also will reclassify certain fees as a result of clarifications in the new guidance and its related interpretations.
Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01)Required as of January 1, 2018Requires:
•Entities to measure equity investments at fair value in net income if they are neither consolidated nor accounted for under the equity method
•Cumulative effect adjustment to the beginning balance of retained earnings at adoption
Expected effects:
•Certain limited partnership interests carried at cost of approximately $200 million as of December 31, 2017 will be reported at fair value at adoption with future changes in fair value reported in net investment income.
•Changes in fair value for equity securities previously reported in accumulated other comprehensive income will now be reported in net realized investment gains.
•Retained earnings will increase by approximately $60 million after-tax on January 1, 2018.

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED JANUARY 1, 2018
Intra-Entity Asset Transfers of Assets Other than Inventory (ASU 2016-16)Required as of January 1, 2018Requires:
•Entities to recognize the tax impacts of all intra-entity sales of assets other than inventory even though the pre-tax effects of those transactions are eliminated in consolidation
•Modified retrospective approach for adoption with a cumulative-effect adjustment recorded in retained earnings
Expected effects: the adoption of this standard will not have a material effect on the Company’s financial statements.
Clarifying the Definition of a Business (ASU 2017-01)Required as of January 1, 2018Guidance:
•Revises the definition of a business and provides a more robust framework for entities to use in determining when a set of assets and activities is a business.
•Requires entities to apply this new definition to business transactions beginning in the first quarter of 2018.
Expected effects: the Company does not expect this change in definition will have a material impact on its financial statements.
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07)Required as of January 1, 2018Requires:
•Employers to separate the service cost component from the other components of net benefit cost
•Only service cost is eligible for capitalization (as either deferred policy acquisition costs or capitalized software), to be applied prospectively upon adoption
•Income statement captions used for each component of net benefit cost to be disclosed
Expected effects: the Company does not expect the effect of this new guidance to be material to results of operations because its most significant plans are frozen. See Note 15 for additional information.
GUIDANCE TO BE EARLY ADOPTED JANUARY 1, 2018
Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12)Required as of January 1, 2019, with early adoption permitted in 2017Guidance:
•Relaxes requirements for financial and nonfinancial hedging strategies to be eligible for hedge accounting and changes how companies assess effectiveness.
•Amends presentation and disclosure requirements to improve transparency about the uses and results of hedging programs.
Expected effects: the Company is planning to adopt this guidance on January 1, 2018 with an immaterial impact to its financial statements for existing hedges.

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED AFTER 2018 OR ADOPTION DATE HAS NOT BEEN DETERMINED
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02)Effective as of January 1, 2019 with early adoption permitted for reporting periods for which financials have not been issued.Guidance:
•Allows companies to reclassify tax effects stranded in accumulated other comprehensive income as a result of U.S. tax reform to retained earnings.
•Requires additional disclosures of the company's accounting policy for releasing income tax effects from accumulated other comprehensive income.
•Allows companies to apply the guidance retrospectively or in the period of adoption.
Effects of adoption:
•The Company is evaluating this new standard and its expected timing of adoption.
•If adopted as of December 31, 2017, approximately $230 million of accumulated other comprehensive income would have been reclassified to retained earnings.
Leases (ASU 2016-02)Required as of January 1, 2019 Requires:
•Balance sheet recognition of assets and liabilities arising from leases, including leases embedded in other contracts
•Additional disclosures of the amount, timing and uncertainty of cash flows from leases will be required
•Modified retrospective approach for leases in effect as of and after the date of adoption with a cumulative-effect adjustment recorded in retained earnings
Expected effects:
•The Company is continuing to evaluate the impact this standard will have on its financial statements.
•While not yet quantified, the Company expects a material impact to the Consolidated Balance Sheets from recognizing additional assets and liabilities of operating leases upon adoption. The actual increase in assets and liabilities will depend on the volume and terms of leases in place at the time of adoption.
•The Company is implementing a new lease system in connection with the adoption.
Measurement of Credit Losses on Financial Instruments (ASU 2016-13)Required as of January 1, 2020, with early adoption permitted as of January 1, 2019Requires:
•A new approach using expected credit losses to estimate and recognize credit losses for certain financial instruments such as mortgage loans, reinsurance recoverables and other receivables
•Changes in the criteria for impairment of available-for-sale debt securities
•Adoption using a modified retrospective approach with a cumulative-effect adjustment recorded in retained earnings
Expected effects:
•The Company is evaluating this new standard, its expected timing of adoption and effects on its financial statements and disclosures.
•An additional allowance for future expected credit losses for certain financial instruments may be required at adoption.
Simplifying the Test for Goodwill Impairment (ASU 2017-04)Required as of January 1, 2020, with early adoption permitted as of January 1, 2017Guidance:
•Simplifies the accounting for goodwill impairment by eliminating the need to determine the fair value of individual assets and liabilities of a reporting unit to measure a goodwill impairment.
•Redefines the amount of goodwill impairment to be equal to the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the total amount of goodwill of the reporting unit.
•Requires prospective adoption.
Expected effects: the Company is evaluating this new standard and its expected timing of adoption.

Significant Accounting Policies

The Company’s accounting policies are described either in this Note or in the applicable Notes to the Consolidated Financial Statements as indicated in the table below.

Note NumberFootnote and policyPage
4Earnings per share71
7Global Health Care medical costs payable73
8Liabilities for unpaid claims and claim expenses75
9Reinsurance78
·         GMDB79
·         GMIB79
10Fair value measurements80
·         Fixed maturities, equity securities, short-term investments and derivatives81
·         Separate accounts83
·         Commercial mortgage loans85
·         Contractholder deposit funds85
·         Long-term debt85
11Investments, investment income and gains and losses85
·         Fixed maturities and equity securities85
·         Commercial mortgage loans87
·         Other long-term investments88
·         Short-term investments and cash equivalents88
·         Net investment income89
·         Realized investment gains and losses89
12Derivative financial instruments89
13Variable interest entities91
15Pension and other postretirement benefit plans92
16Employee incentive plans95
17Goodwill, other intangibles and property and equipment98
20Income taxes100
21Contingencies and other matters102

A. Investments – Policy Loans

Policy loans are carried at unpaid principal balances plus accumulated interest, the total of which approximates fair value. These loans are collateralized by life insurance policy cash values and therefore have minimal exposure to credit loss. Interest rates are reset annually based on a rolling average of benchmark interest rates.

B. Cash and Cash Equivalents

Cash and cash equivalents are carried at cost that approximates fair value. Cash equivalents consist of short-term investments with maturities of three months or less from the time of purchase. The Company reclassifies cash overdraft positions to accounts payable, accrued expenses and other liabilities when the legal right of offset does not exist.

C. Premiums, Accounts and Notes Receivable and Reinsurance Recoverables

Premiums, accounts and notes receivable and reinsurance recoverables are reported net of allowances for doubtful accounts and unrecoverable reinsurance of $210 million as of December 31, 2017 and $ 203 million as of December 31, 2016. The Company estimates these allowances for doubtful accounts and unrecoverable reinsurance using management’s best estimates of collectability, taking into consideration the age of the outstanding amounts, historical collection patterns and other economic factors. See Note 22 for additional discussion of the allowance established in 2016 for the risk corridor receivable.

D. Deferred Policy Acquisition Costs

Costs eligible for deferral include incremental, direct costs of acquiring new or renewal insurance and investment contracts and other costs directly related to successful contract acquisition. Examples of deferrable costs include commissions, sales compensation and benefits, policy issuance and underwriting costs and premium taxes. The Company records acquisition costs differently depending on the product line. Acquisition costs for:

  • Supplemental health, life and accident insurance products (primarily individual products) that comprise the majority of the Company’s deferred policy acquisition costs and group health and accident insurance products are deferred and amortized, generally in proportion to the ratio of periodic revenue to the estimated total revenues over the contract periods.
  • Universal life products are deferred and amortized in proportion to the present value of total estimated gross profits over the expected lives of the contracts.
  • Other products are expensed as incurred.

Deferred policy acquisition costs also include the value of business acquired for certain acquisitions with material long-duration insurance contracts. The Company recorded amortization of deferred policy acquisition costs of $322 million in 2017, $292 million in 2016 and $286 million in 2015 primarily in other operating expenses.

Each year, deferred policy acquisition costs are tested for recoverability. For universal life and other individual products, management estimates the present value of future revenues less expected payments. For group health and accident insurance products, management estimates the sum of unearned premiums and anticipated net investment income less future expected claims and related costs. If management’s estimates of these sums are less than the deferred costs, the Company reduces deferred policy acquisition costs and records an additional expense.

E. Other Assets, including Other Intangibles

Other assets, including other intangibles consist primarily of GMIB assets, accrued net investment income, other intangible assets and various other insurance-related assets. See Note 9 for the Company’s accounting policy for GMIB assets and see Note 17 for the Company’s accounting policy for other intangibles. Additionally, these other assets include the carrying value of our equity-method investments in joint ventures in China, India (as of 2017) and other foreign jurisdictions.

F. Contractholder Deposit Funds

Liabilities for contractholder deposit funds primarily include deposits received from customers for investment-related and universal life products and investment earnings on their fund balances. These liabilities are adjusted to reflect administrative charges and, for universal life fund balances, mortality charges. In addition, this caption includes: 1) premium stabilization reserves under group insurance contracts representing experience refunds left with the Company to pay future premiums; 2) deposit administration funds used to fund non-pension retiree insurance programs; 3) retained asset accounts; and 4) annuities or supplementary contracts without significant life contingencies. Interest credited on these funds is accrued ratably over the contract period.

G. Future Policy Benefits

Future policy benefits represent the present value of estimated future obligations under long-term life and supplemental health insurance policies and annuity products currently in force. These obligations are estimated using actuarial methods and consist primarily of reserves for annuity contracts, life insurance benefits, GMDB contracts (see Note 9 for additional information) and certain health, life and accident insurance products of our Global Supplemental Benefits segment.

Obligations for annuities represent specified periodic benefits to be paid to an individual or groups of individuals over their remaining lives. Obligations for life insurance policies and GMDB contracts represent benefits expected to be paid to policyholders, net of future premiums expected to be received. Management estimates these obligations based on assumptions as to premiums, interest rates, mortality or morbidity, future claim adjudication expenses and surrenders, allowing for adverse deviation as appropriate. Mortality, morbidity and surrender assumptions are based on the Company’s own experience and published actuarial tables. Interest rate assumptions are based on management’s judgment considering the Company’s experience and future expectations, and range from 0.1% to 9%. Obligations for the run-off settlement annuity business include adjustments for realized and unrealized investment returns consistent with GAAP when a premium deficiency exists.

H. Redeemable Noncontrolling Interests

Products and services are offered in Turkey and India through joint venture entities. The Company is the principal equity holder and primary beneficiary of the Turkey joint venture and accordingly, this entity is consolidated. In 2017, Cigna modified the agreement governing its joint venture in India due to changes in the local regulatory environment that require control by a local partner. As a result of the changes in the joint venture agreement, the Company determined that it is no longer the primary beneficiary of the joint venture and, effective with the third quarter of 2017, no longer consolidates its results.

As of December 31, 2017 the redeemable noncontrolling interests on our Consolidated Balance Sheets represent the Turkey joint venture partner’s preferred and common stock interests in the entity. Our joint venture partner may, at their election, require the Company to purchase their redeemable noncontrolling interests. We also have the right to require our joint venture partner to sell their redeemable noncontrolling interests to us. The redeemable noncontrolling interests were recorded at fair value as of the dates of purchase.  When the estimated redemption value for a redeemable noncontrolling interest exceeds its carrying value, an adjustment to increase the redeemable noncontrolling interest is recorded with an offsetting reduction to additional paid-in capital. When an adjustment is made to the carrying value of the redeemable noncontrolling interest, the calculation of shareholders’ net income per share will be adjusted if the redemption value exceeds the greater of the carrying value or fair value.

I. Accounts Payable, Accrued Expenses and Other Liabilities

Accounts payable, accrued expenses and other liabilities include liabilities for pension, other postretirement and postemployment benefits (see Note 15), GMIB contract liabilities (see Note 9), self-insured exposures, management compensation, cash overdraft positions and various insurance-related liabilities, including experience-rated refunds, reinsurance contracts and the risk adjustment and minimum medical loss ratio rebate accruals under The Patient Protection and Affordable Care Act (the “ACA”). Legal costs to defend the Company’s litigation and arbitration matters are expensed when incurred in cases where the Company cannot reasonably estimate the ultimate cost to defend. In cases where the Company can reasonably estimate the cost to defend, a liability for these costs is accrued when the claim is reported.

J. Translation of Foreign Currencies

The Company generally conducts its international business through foreign operating entities that maintain assets and liabilities in local currencies that are generally their functional currencies. The Company uses exchange rates as of the balance sheet date to translate assets and liabilities into U.S. dollars. Translation gains or losses on functional currencies, net of applicable taxes, are recorded in accumulated other comprehensive income (loss). The Company uses average monthly exchange rates during the year to translate revenues and expenses into U.S. dollars.

K. Premiums and Related Expenses

Premiums for group life, accident and health insurance and managed care coverages are recognized as revenue on a pro rata basis over the contract period. Benefits and expenses are recognized when incurred and, for our Global Health Care insured business, medical costs are presented net of pharmaceutical manufacturer rebates. For experience-rated contracts, premium revenue includes an adjustment for experience-rated refunds based on contract terms and calculated using the customer’s experience (including estimates of incurred but not reported claims).

Premium revenue also includes an adjustment to reflect the estimated effect of rebates due to customers under the commercial minimum medical loss ratio provisions of the ACA. These rebates are settled in the year following the policy year.

Premiums received for the Company’s Medicare Advantage Plans and Medicare Part D products from the Centers for Medicare and Medicaid Services (“CMS”) and customers are recognized as revenue ratably over the contract period. CMS provides risk-adjusted premium payments for Medicare Advantage Plans and Medicare Part D products based on the demographics and wellness of enrollees. The Company recognizes periodic changes to risk-adjusted premiums as revenue when the amounts are determinable and collection is reasonably assured. Additionally, Medicare Part D premiums include payments from CMS for risk sharing adjustments. The risk sharing adjustments are estimated quarterly based on claim experience by comparing actual incurred drug benefit costs to estimated costs submitted in original contracts. These adjustments may result in more or less revenue from CMS. Final revenue adjustments are determined and settled with CMS in the year following the contract year. Premium revenue also includes an adjustment to reflect the estimated effect of rebates due to CMS under the Medicare Advantage and Medicare Part D minimum medical loss ratio provisions of the ACA.

The ACA prescribed three programs to mitigate the risk for participating health insurance companies selling coverage on the public exchanges: risk adjustment, reinsurance and risk corridor. The reinsurance and risk corridor programs expired at the end of 2016, while the permanent risk adjustment program continues. A summary of these programs and the Company’s accounting policy is provided below.

  • The risk adjustment program reallocates funds from insurers with lower risk populations to insurers with higher risk populations based on the relative risk scores of participants in non-grandfathered plans in the individual and small group markets, both on and off the exchanges. We estimate our receivable or payable based on the risk of our members compared to the risk of other members in the same state and market, considering data obtained from industry studies and the United States Department of Health and Human Services (“HHS”). Receivables or payables are recorded as adjustments to premium revenue based on our year-to-date experience when the amounts are reasonably estimable and collection is reasonably assured. Final revenue adjustments are determined by HHS in the year following the policy year.

  • The reinsurance program (discontinued as of December 31, 2016) was designed to provide reimbursement to insurers for high cost individual business sold on or off the public exchanges. Reinsurance contributions associated with non-grandfathered individual plans were reported as reductions in premium revenues, and estimated reinsurance recoveries were established with offsetting reductions in Global Health Care medical costs. Reinsurance fee contributions for other insured business were reported in other operating expenses.

  • The risk corridor program (also discontinued as of December 31, 2016) was designed to limit insurer gains and losses by comparing allowable medical costs to a target amount as defined by HHS. The Company recorded receivables or payables as adjustments to premium revenue based on year-to-date experience when the amounts were reasonably estimable and collection was reasonably assured. In 2016, the Company also recorded an allowance against these risk corridor receivables that is discussed further in Note 22.

Premiums for individual life, accident and supplemental health insurance and annuity products, excluding universal life and investment-related products, are recognized as revenue when due. Benefits and expenses are matched with premiums.

Revenue for universal life products is recognized as follows:

  • Investment income on assets supporting universal life products is recognized in net investment income as earned.
  • Charges for mortality, administration and policy surrender are recognized in premiums as earned. Administrative fees are considered earned when services are provided.

Benefits and expenses for universal life products consist of benefit claims in excess of policyholder account balances and income earned by policyholders. Expenses are recognized when claims are incurred, and income is credited to policyholders in accordance with contract provisions.

The unrecognized portion of premiums received is recorded as unearned premiums.

L. Fees, Related Expenses and Mail Order Pharmacy Revenues and Costs

Contract fees for administrative services only (“ASO”) programs and pharmacy programs and services are recognized in fees and other revenues as services are provided, net of estimated pharmaceutical manufacturer rebates payable to ASO clients using our network of retail pharmacies and estimated refunds under performance guarantees. Expenses associated with these programs and services are recognized in other operating expenses as incurred, net of estimated pharmaceutical rebates from manufacturers for prescriptions filled through our network of retail pharmacies.

In some cases, the Company provides performance guarantees associated with meeting certain service standards, clinical outcomes or financial metrics. If these service standards, clinical outcomes or financial metrics are not met, the Company may be financially at risk up to a stated percentage of the contracted fees or a stated dollar amount. The Company defers revenues for estimated payouts associated with these performance guarantees. Approximately 11% of ASO fees reported for the year ended December 31, 2017 were at risk under performance guarantees, with reimbursements estimated to be less than 1% of revenues.

Revenues for investment-related products are recognized as follows:

  • Investment income on assets supporting investment-related products is recognized in net investment income as earned.
  • Contract fees based upon related administrative expenses are recognized in fees and other revenues as they are earned ratably over the contract period.

Benefits and expenses for investment-related products consist primarily of income credited to policyholders in accordance with contract provisions.

Mail order pharmacy revenues and the cost of prescriptions are recognized as each prescription is shipped. Mail order pharmacy revenues are presented net of estimated pharmaceutical manufacturer rebates payable to ASO clients using our mail order business. Mail order pharmacy costs include the cost of prescriptions sold and other costs to operate this business including supplies, shipping and handling, net of estimated pharmaceutical rebates from manufacturers for prescriptions filled through our mail order business.
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Mergers and Acquisitions
 12 Months Ended
Dec. 31, 2017
Acquisitions and Dispositions [Abstract]  
Acquisitions and Dispositions

Note 3 – Mergers, Acquisitions and Dispositions

The following table presents transaction-related costs incurred by the Company for the years ended December 31, 2017, 2016 and 2015. Transaction-related costs primarily consist of fees for legal, advisory and other professional services as well as employee costs. In addition, because the merger with Anthem, Inc. (“Anthem”) was not consummated, certain transaction-related costs that were previously not deductible for federal income tax purposes became deductible. The Company recognized an incremental tax benefit for these newly deductible costs in 2017 as presented below.

201720162015
(In millions)Before-tax After-tax Before-tax After-tax Before-tax After-tax
Transaction-related costs $ 126 $ 92 $ 166 $ 147 $ 66 $ 57
Tax (benefit) - previously non-deductible costs-(59)----
Transaction-related costs, net $ 126 $ 33 $ 166 $ 147 $ 66 $ 57
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Earnings Per Share
 12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Earnings Per Share

Note 4 – Earnings Per Share (“EPS”)

Accounting policy. The Company computes basic earnings per share using the weighted-average number of unrestricted common and deferred shares outstanding. Diluted earnings per share also includes the dilutive effect of outstanding employee stock options and restricted stock using the treasury stock method and the effect of strategic performance shares.

Basic and diluted earnings per share were computed as follows:

201720162015
(Shares in thousands, dollars in millions, except per share amounts)Effect of Effect of Effect of
BasicDilutionDilutedBasicDilutionDilutedBasicDilutionDiluted
Shareholders' net income$2,237$-$2,237$1,867$-$1,867$2,094$-$2,094
Shares
Weighted average250,892-250,892255,360-255,360256,149-256,149
Common stock equivalents 4,1804,1804,2874,2874,4434,443
Total shares250,8924,180255,072255,3604,287259,647256,1494,443260,592
EPS$8.92$(0.15)$8.77$7.31$(0.12)$7.19$8.17$(0.13)$8.04

The following outstanding employee stock options were not included in the computation of diluted earnings per share because their effect was anti-dilutive.

(In millions)201720162015
Anti-dilutive options0.92.30.4
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Debt
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
Debt

Note 5 – Debt

The outstanding amounts of debt and capital leases for the years ended December 31 were as follows:

(In millions)20172016
Short-term debt
Commercial paper$100$-
Current maturities of long-term debt131250
Other, including capital leases926
Total short-term debt$240$276
Long-term uncollateralized debt
$131 million, 6.35% Notes due 2018$-$131
$250 million, 4.375% Notes due 2020 (1)249252
$300 million, 5.125% Notes due 2020 (1)299301
$78 million, 6.37% Notes due 20217878
$300 million, 4.5% Notes due 2021 (1)299302
$750 million, 4% Notes due 2022745744
$100 million, 7.65% Notes due 2023100100
$17 million, 8.3% Notes due 20231717
$900 million, 3.25% Notes due 2025894893
$600 million, 3.05% Notes due 2027594-
$259 million, 7.875% Debentures due 2027 (2)258299
$45 million, 8.3% Step Down Notes due 2033 (2)4582
$191 million, 6.15% Notes due 2036 (2)190498
$121 million, 5.875% Notes due 2041 (2)119296
$317 million, 5.375% Notes due 2042 (2)315743
$1,000 million, 3.875% Notes due 2047988-
Other, including capital leases920
Total long-term debt$5,199$4,756
(1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 12 for further information about the Company’s interest rate risk management and these derivative instruments.
(2) The Company redeemed a portion of these debt issues through a cash tender offer in September 2017, the aggregate amount of which was $1.0 billion.

In the third quarter of 2017, the Company entered into two significant debt transactions: the issuance of new debt and a cash tender offer to retire a portion of outstanding debt. These transactions are described in more detail below.

On September 14, 2017, the Company issued new long-term debt as follows:

(In millions)
Debt InstrumentPrincipalTermMaturityStated Interest RateEffective Interest RateAmount net of discount and feesInterest payment dates
10-Year Notes$60010-YearOctober 15, 20273.05%3.183%$594April 15 and October 15
30-Year Notes$1,000 30-Year October 15, 2047 3.875%3.951 % $987April 15 and October 15

The proceeds of this debt were mainly used to pay the consideration for the cash tender offer as described below. The Company intends to use the remaining proceeds for general corporate purposes, including the maturity of its Notes due in 2018.

At any time prior to July 15, 2027 (three months prior to the maturity date of the 10-Year Notes) or April 15, 2047 (six months prior to the maturity date of the 30-Year Notes), the Company may redeem the 10-Year Notes or the 30-Year Notes, in whole or in part, with accrued and unpaid interest, at a redemption price equal to the greater of:

  • 100% of the principal amount of the applicable Notes; or
  • the sum of the present values of the remaining scheduled payments of principal and interest (excluding interest accrued at the redemption date) from the redemption date to the maturity date discounted at the applicable Treasury Rate plus 15 basis points for the 10-Year Notes and 20 basis points for the 30-Year Notes.

In the third quarter of 2017, the Company completed a cash tender offer to purchase $1.0 billion of aggregate principal amount of certain of its outstanding debt securities. The Company recorded a pre-tax loss of $321 million ($209 million after-tax), consisting primarily of premium payments on the tender.

During the first quarter of 2017, the Company repaid $250 million of long-term notes that had matured.

In April 2015, the Company redeemed two of its outstanding notes early. The Company paid $955 million, including accrued interest and expenses that resulted in a pre-tax loss on early debt extinguishment of $100 million ($65 million after-tax).

In December 2017, the Company entered into an updated revolving credit and letter of credit agreement. This agreement extends through December 2022 and is diversified among 15 banks. Under this agreement, the Company can borrow up to $1.5 billion for general corporate purposes, of which up to $500 million can be used for letters of credit. The credit agreement includes options to increase the commitment amount to $2 billion and to extend the term past December 2022, subject to consent by the lenders. The agreement contains customary covenants and restrictions, including a financial covenant that the Company may not permit its leverage ratio – total consolidated debt to total consolidated capitalization (each as defined in the credit agreement) – to be greater than 50%. The Company was in compliance with its debt covenants as of December 31, 2017.

As of December 31, 2017, the Company had $9.3 billion of borrowing capacity within the maximum debt leverage covenant in the credit agreement, in addition to $5.4 billion of debt outstanding. The Company had $11 million of letters of credit outstanding as of December 31, 2017.

Maturities of long-term debt and capital leases are as follows:

Scheduled Maturities
(In millions)Long-term Debt (1)Capital Leases
2018$131$9
2019$-$8
2020$550$1
2021$378$-
2022$750$-
Maturities after 2022$3,550$-
(1) Long-term debt maturity amounts exclude capital leases.

Interest expense on long-term and short-term debt was $243 million in 2017, $251 million in 2016, and $252 million in 2015. These amounts exclude losses on the early extinguishment of debt.
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Common and Preferred Stock
 12 Months Ended
Dec. 31, 2017
Common And Preferred Stock [Abstract]  
Common and preferred stock

Note 6 – Common and Preferred Stock

As of December 31, the Company had issued the following shares:

(Shares in thousands)201720162015
Common: Par value $0.25; 600,000 shares authorized
Outstanding - January 1,256,869256,544259,276
Issued for stock option exercises and other benefit plans2,7611,1102,751
Repurchased common stock(15,663)(785)(5,483)
Outstanding - December 31,243,967256,869256,544
Treasury stock52,17839,27639,601
Issued - December 31,296,145296,145296,145

The Company maintains a share repurchase program authorized by its Board of Directors. Under this program, the Company may repurchase shares from time to time. The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternate uses of capital. The share repurchase program may be effected through open market purchases or privately negotiated transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, including through Rule 10b5-1 trading plans. The program may be suspended or discontinued at any time.

The Company has authorized a total of 25 million shares of $1 par value preferred stock. No shares of preferred stock were outstanding at December 31, 2017, 2016 or 2015.
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Global Health Care Medical Costs Payable
 12 Months Ended
Dec. 31, 2017
Global Health Benefits Segment [Member]  
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Global Health Care Medical Costs Payable

Note 7 – 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 reported, including expected development on reported claims, those that have been reported but not yet paid (reported claims in process), and other medical care expenses and services payable that are primarily comprised of accruals for incentives and other amounts payable to health care professionals and facilities.

Accounting policy. The Company uses actuarial principles and assumptions that are consistently applied each reporting period and recognizes the actuarial best estimate of the ultimate liability along with a margin for adverse deviation. This approach is consistent with actuarial standards of practice that the liabilities be adequate under moderately adverse conditions.

This liability predominately consists of incurred but not reported amounts and reported claims in process including expected development on reported claims. The liability is primarily calculated using “completion factors” developed by comparing the claim incurral date to the date claims were paid. Completion factors are impacted by several key items including changes in: 1) electronic (auto-adjudication) versus manual claim processing, 2) provider claims submission rates, 3) membership and 4) the mix of products. The Company uses historical completion factors combined with an analysis of current trends and operational factors to develop current estimates of completion factors. The Company estimates the liability for claims incurred in each month by applying the current estimates of completion factors to the current paid claims data. This approach implicitly assumes that historical completion rates will be a useful indicator for the current period.

For more recent months, the Company relies more heavily on medical cost trend analysis that reflects expected claim payment patterns and other relevant operational considerations. Medical cost trend is primarily impacted by medical service utilization and unit costs that are affected by changes in the level and mix of medical benefits offered, including inpatient, outpatient and pharmacy, the impact of copays and deductibles, changes in provider practices and changes in consumer demographics and consumption behavior.

For each reporting period, the Company compares key assumptions used to establish the medical costs payable to actual experience. When actual experience differs from these assumptions, medical costs payable are adjusted through current period shareholders’ net income. Additionally, the Company evaluates expected future developments and emerging trends that may impact key assumptions. The process used to determine this liability requires the Company to make critical accounting estimates that involve considerable judgment, reflecting the variability inherent in forecasting future claim payments. These estimates are highly sensitive to changes in the Company’s key assumptions, specifically completion factors and medical cost trends.

Activity in medical costs payable for the years ended December 31 was as follows:

(In millions)201720162015
Balance at January 1,$2,532$2,355$2,180
Less: Reinsurance and other amounts recoverable275243252
Balance at January 1, net2,2572,1121,928
Incurred costs related to:
Current year20,23319,08718,564
Prior years(266)(78)(210)
Total incurred19,96719,00918,354
Paid costs related to:
Current year17,97917,05216,588
Prior years1,7911,8121,582
Total paid19,77018,86418,170
Balance at December 31, net2,4542,2572,112
Add: Reinsurance and other amounts recoverable265275243
Balance at December 31, $2,719$2,532$2,355

Reinsurance and other amounts recoverable reflect amounts due from reinsurers and policyholders to cover incurred but not reported and pending claims for certain business where the Company administers the plan benefits but the right of offset does not exist.  See Note 9 for additional information on reinsurance.

The total of incurred but not reported liabilities plus expected development on reported claims, including reported claims in process, was $2.6 billion at December 31, 2017 and $2.4 billion at December 31, 2016. The remaining balance in both periods reflects amounts due for physician incentives and other medical care expenses and services payable.

For the years ended December 31, variances in incurred costs related to prior years’ medical costs payable that resulted from the differences between actual experience and the Company’s key assumptions were as follows:

20172016
($ in millions)$%(1)$%(2)
Actual completion factors$1240.7%$590.3%
Medical cost trend1330.7270.1
Other (3)9-(8)-
Total favorable variance$2661.4%$780.4%
(1) Percentage of current year incurred costs as reported for 2016.
(2) Percentage of current year incurred costs as reported for 2015.
(3) Other amounts in 2017 primarily related to an increase in the 2016 reinsurance reimbursement rate from CMS under the ACA. Other amounts in 2016 primarily related to increased medical costs in the Government segment resulting from sharing additional risk adjustment revenue with providers.

Incurred costs related to prior years in the table above, although adjusted through shareholders’ net income, do not directly correspond to an increase or decrease to shareholders’ net income. The primary reason for this 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 net impact of prior year development on shareholders’ net income was a $112 million increase for the year ended December 31, 2017. The net impact of prior year development on shareholders’ net income was insignificant in 2016. Favorable prior year development implies primarily lower than expected utilization of medical services and vice versa while amounts close to zero imply utilization of medical services that are consistent with expectations.

The following table depicts the incurred and paid claims development as of December 31, 2017 (net of reinsurance), claims frequency metrics and incurred but not reported liabilities for Cigna's Global Health Care medical costs payable. The information about incurred and paid claims development for the year ended December 31, 2016 is presented as supplementary information and is unaudited.

Incurred Costs
Incurral Year2016 (Unaudited)2017Medical Costs PayableClaims Frequency
($ in millions, except for claims frequency)
2016$19,087$18,822$1592.7 million
201720,233$2,2543.3 million
Cumulative incurred costs for the periods presented$39,055
Cumulative Paid Costs
Incurral Year2016 (Unaudited)2017
2016$17,052$18,663
201717,979
Cumulative paid costs for the periods presented$36,642
Cumulative incurred costs less cumulative paid costs for the periods presented$2,413
Outstanding liabilities prior to 201641
Net outstanding liabilities for Global Health Care medical costs payable2,454
Reinsurance and other amounts recoverable265
Total liability for Global Health Care medical costs payable$2,719

More than 95% of health claims for an accident year are paid within one year of their incurred date.

There is no single or common claim frequency metric used in the health care industry. The Company believes a relevant metric for the Global Health Care segment is the number of customers for whom an insured medical claim was paid. Customers for whom no insured medical claim was paid are excluded from the calculation. Claims that did not result in a liability are not included in the frequency metric.
v3.8.0.1
Liabilities for Unpaid Claims and Claims Expenses
 12 Months Ended
Dec. 31, 2017
Group Disability and Life, Global Supplemental Beneftits and Other Operations [Member]  
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Liabilities for Unpaid Claims and Claims Expenses

Note 8 ― Liabilities for Unpaid Claims and Claim Expenses

The following information relates to the Company’s unpaid claims and claim expense liabilities.

Accounting policy. Liabilities for unpaid claims and claim expenses are established by book of business within the Company's Group Disability and Life, Global Supplemental Benefits and Other Operations segments. The Group Disability and Life segment’s liability for unpaid claims and claim expenses consists of the following primary products: long-term and short-term disability, life insurance, and accident coverages. Unpaid claims and claim expenses consist of (1) case or claims reserves for reported claims that are unpaid as of the balance sheet date; (2) incurred but not reported reserves for claims when the insured event has occurred but has not been reported to the Company; and (3) loss adjustment expense reserves for the expected costs of settling these claims. The Company consistently estimates incurred but not yet reported losses using actuarial principles and assumptions based on historical and projected claim incidence patterns, claim size and the expected payment period. The Company recognizes the actuarial best estimate of the ultimate liability within a level of confidence, consistent with actuarial standards of practice that the liabilities be adequate under moderately adverse conditions. When estimates of these liabilities change, the Company immediately records the adjustment in benefits and expenses.

The majority of the Company’s liability for disability claims consists of the present value of estimated future benefit payments, including expected development, for each reported claim that is currently receiving benefit payments, or pending a decision on eligibility for benefits, over the expected disability period. The Company projects the expected disability period by using historical resolution rates combined with an analysis of current trends and operational factors to develop current estimates of resolution rates. Using the Company’s experience, expected claim resolution rates may vary based upon the anticipated disability period, the covered benefit period, the cause of disability, the benefit design and the claimant’s age, gender and income level. The gross monthly benefit is reduced (offset) by disability income received under other benefit programs, most commonly Social Security Disability Income, workers’ compensation, statutory disability or other group benefit plans. For certain offsets not yet finalized, the Company estimates the probability and amount of future offset awards and lapses based on the Company’s experience.

The Company also establishes a liability for the expected present value of future benefit payments for known claims that have recently been resolved but may reopen in the future, based on Company experience. Prior to a claim becoming known, the Company establishes a liability for incurred but not reported claims, using standard actuarial techniques and calculations based on completion factors and loss ratio assumptions using the Company’s experience combined with an analysis current trends and operational factors. Completion factors are impacted by several key items including changes in claim inventory levels, claim payment patterns, changes in business volume and other factors. Loss ratio assumptions are developed using historical Company experience, adjusted prospectively for expected changes in the underlying business including rate actions, persistency and inforce growth.

Liability balance details. The liability for unpaid claims and claim expenses by segment as of December 31 is as follows:

(In millions)20172016
Group Disability and Life$4,491$4,342
Global Supplemental Benefits 484 384
Other Operations 193 191
Unpaid claims and claim expenses$5,168$4,917

The Company discounts certain liabilities, predominantly long-term disability, because benefits payments are made over extended periods. Discount rate assumptions for these liabilities are based on projected investment returns for the supporting asset portfolios. Details of the Company’s unpaid claim discounted liability balances as of December 31 were as follows:

(In billions)20172016
Discounted liabilities$4.0$3.9
Aggregate amount of discount$1.0$1.1
Range of discount rates 4.5%-5.2% 3.3%-5.8%

Interest is accreted and recognized in other benefit expenses in the Consolidated Statement of Income.

Activity in the Company’s Group Disability and Life and the Global Supplemental Benefits segments’ liabilities for unpaid claims and claim expenses are presented in the following table. Liabilities associated with the Company’s Other Operations segment are excluded because they pertain to obligations for long-duration insurance contracts or, if short-duration, the liabilities have been fully reinsured.

(In millions)201720162015
Balance at January 1,$4,726$4,359$4,178
Less: Reinsurance121115104
Balance at January 1, net4,6054,2444,074
Incurred claims related to:
Current year4,3414,2583,813
Prior years
Interest accretion163161163
All other incurred(4)93(91)
Total incurred4,5004,5123,885
Paid claims related to:
Current year2,7242,5752,325
Prior years1,5721,5601,382
Total paid4,2964,1353,707
Acquisitions--11
Foreign currency29(16)(19)
Balance at December 31, net4,8384,6054,244
Add: Reinsurance137121115
Balance at December 31,$4,975$4,726$4,359

Reinsurance in the previous table reflects amounts due from reinsurers related to unpaid claims liabilities. The Company's insurance subsidiaries enter into agreements with other companies primarily to limit losses from large exposures and to permit recovery of a portion of incurred losses. See Note 9 for additional information on reinsurance.

The majority of the liability for unpaid claims and claim expenses is related to disability claims with long-tailed payouts. Interest earned on assets backing these liabilities is an integral part of pricing and reserving. Therefore, interest accreted on prior year balances is shown as a separate component of prior year incurred claims. This interest is calculated by applying the average discount rate used in determining the liability balance to the average liability balance over the period. The remaining prior year incurred claims amount primarily reflects updates to the Company’s liability estimates and variances between actual experience during the period relative to the assumptions and expectations reflected in determining the liability. Assumptions reflect the Company’s expectations over the life of the book of business and will vary from actual experience in any period, both favorably and unfavorably, with variation in resolution rates being the most significant driver for the long-term disability business. Prior year incurred claims reported in 2016 included the impact of changes made to our disability claims management process and a period of elevated life claims.

Long-term disability development tables. The table below presents information about incurred and paid claims development as of December 31, 2017 (net of reinsurance) cumulative claim frequency and total incurred but not reported liabilities for the Company's long-term disability book of business. The information about incurred and paid claims development for the years ended 2012 through 2016 is presented as supplementary information and is unaudited. As permitted under GAAP, the Company presented development table information beginning in 2012 because obtaining information beyond this period was impracticable as historical data was not maintained in such detail.

(In millions, except for claims frequency)
Incurred Claims (undiscounted)
Accident Year2012 (Unaudited)2013 (Unaudited)2014 (Unaudited)2015 (Unaudited)2016 (Unaudited)2017Incurred But Not Reported LiabilitiesClaims Frequency
2012$995$951$889$876$883$880$-21,180
20131,0631,0371,0621,0721,057-23,516
20141,1581,1291,1671,146-25,281
20151,1841,1541,185525,609
20161,2461,1842024,722
2017 1,22654010,569
Cumulative incurred claims for the periods presented$6,678
Cumulative Paid Claims
Accident Year2012 (Unaudited)2013 (Unaudited)2014 (Unaudited)2015 (Unaudited)2016 (Unaudited)2017
2012$81$288$429$504$571$621
201392342503600670
2014111379575667
2015 114417603
2016122411
2017 110
Cumulative paid claims for the periods presented$3,082
All outstanding liabilities for the periods presented, net of reinsurance$3,596
All outstanding liabilities prior to 2012, net of reinsurance1,142
Impact of discounting(948)
Liability for long-term disability unpaid claims and claim expenses, net of reinsurance$3,790

The claims frequency metric used for the Company’s long-term disability line of business represents the number of unique claim events for which benefits have been approved and payments made. Claim events are identified using a unique claimant identifier and incurral date. Thus, if an individual has multiple claims for different disabling events (and therefore different incurral dates), each will be determined to be a unique claim event. However, if an individual receives multiple benefits under more than one policy (for example for supplemental disability benefits such as pension contribution benefits or survivor benefits), the Company treats this as a single claim occurrence because they related to the same claim event. Claims frequency metrics for the most recent year are expected to be low reflecting the long-term disability product features including waiting and elimination periods that result in delayed eligibility for contract benefits. Claims that did not result in a liability are not included in the frequency metric.

The following is supplementary and unaudited information about average historical claims payout patterns for the long-term disability business for the years presented in the development table as of December 31, 2017. The average annual percentage payout of incurred claims, net of reinsurance, is approximately 9% in year one, 24% in year two, 16% in year three, 9% in year four, 7% in year five, and 6% in year six.

The following table reconciles the long-term disability net incurred and paid claims development table to the liability for unpaid claims and claim expenses in the Company's Consolidated Balance Sheets as of December 31, 2017.

(In millions)
Net outstanding liabilities – Group Disability and Life segment
Long-term disability liabilities, net of reinsurance$3,790
Other short-duration insurance books of business, net of reinsurance599
Liabilities for unpaid claims and claim expenses, net of reinsurance4,389
Reinsurance recoverable on unpaid claims – Group Disability and Life segment
Long-term disability94
Other short-duration insurance books of business8
Total reinsurance recoverable on unpaid claims 102
Total liability for unpaid claims and claim expenses – Group Disability and Life segment4,491
Global Supplemental Benefits segment484
Other Operations segment193
Total liability for unpaid claims and claim expenses$5,168

The other short-duration insurance books of business, net of reinsurance, primarily include liabilities for life, accident and short-term disability insurance products. Liabilities for these products are typically complete within one year. Claim development on these liabilities is largely driven by completion factors and loss ratio assumptions. In 2016, development on these liabilities was driven by a period of elevated life claims.
v3.8.0.1
Reinsurance
 12 Months Ended
Dec. 31, 2017
Reinsurance Disclosures [Abstract]  
Reinsurance

Note 9 – 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.  Therefore, reinsured liabilities must continue to be reported along with the related reinsurance recoverables. The Company regularly evaluates the financial condition of its reinsurers and monitors concentrations of its credit risk.

Reinsurance Recoverables

The majority of the Company’s reinsurance recoverables resulted from acquisition and disposition transactions in which the underwriting company was not acquired. Components of the Company’s reinsurance recoverables are presented in the following table:

(Dollars in millions)
Line of BusinessReinsurer(s)December 31, 2017December 31, 2016Collateral and Other Termsat December 31, 2017
Ongoing Operations
Global Health Care, Global Supplemental Benefits, Group Disability and Life, COLIVarious$454$478Recoverables from approximately 90 reinsurers, used in the ordinary course of business. Current balances range from less than $1 million up to $80 million. Over 70% of the balance is from companies rated as investment grade by Standard & Poor's, and 11% is secured by assets in trusts or letters of credit.
Total recoverables related to ongoing operations454478
Acquisition, disposition or runoff activities
Individual Life and Annuity (sold in 1998)Lincoln National Life and Lincoln Life & Annuity of New York3,4363,586Both companies' ratings were sufficient to avoid triggering a contractual obligation to fully secure the outstanding balance.
GMDB (effectively exited in 2013)Berkshire9281,085100% secured by assets in a trust.
Other3444100% secured by assets in a trust or letters of credit.
Retirement Benefits Business (sold in 2004)Prudential Retirement Insurance and Annuity850921100% secured by assets in a trust.
Supplemental Benefits Business (2012 acquisition)Great American Life283297100% secured by assets in a trust.
Other run-off reinsuranceVarious6167100% secured by assets in a trust or other deposits.
Total recoverables related to acquisition, disposition or runoff activities5,5926,000
Total reinsurance recoverables$6,046$6,478

The Company bears the risk of loss if its reinsurers and retrocessionaires do not meet or are unable to meet their reinsurance obligations to the Company. The Company reviews its reinsurance arrangements and establishes reserves against the recoverables if recovery is not considered probable.

Effects of Reinsurance

The following table presents direct, assumed and ceded premiums for both short-duration and long-duration insurance contracts. It also presents reinsurance recoveries that have been netted against benefits and expenses in the Company’s Consolidated Statements of Income.

(In millions)201720162015
Premiums
Short-duration contracts
Direct$28,654$27,496$26,751
Assumed199247289
Ceded(150)(229)(254)
Total short-duration contract premiums28,70327,51426,786
Long-duration contracts
Direct3,7483,2593,061
Assumed130137111
Ceded
Individual life insurance and annuity business sold(143)(153)(158)
Other(131)(131)(158)
Total long-duration contract premiums3,6043,1122,856
Total premiums$32,307$30,626$29,642
Reinsurance recoveries
Individual life insurance and annuity business sold$259$279$301
Other66261436
Total reinsurance recoveries$325$540$737

The effects of reinsurance on written premiums for short-duration contracts were not materially different from the recognized premium amounts shown in the table above

Effective Exit of GMDB and GMIB Business

In 2013, the Company entered into an agreement with Berkshire to effectively exit the GMDB and GMIB business via a reinsurance transaction. Berkshire reinsured 100% of the Company's future claim payments in this business, net of other reinsurance arrangements existing at that time. The reinsurance agreement is subject to an overall limit with approximately $3.4 billion remaining at December 31, 2017.

GMDB is accounted for as reinsurance and GMIB assets and liabilities are reported as derivatives at fair value as discussed below. GMIB assets are reported in other assets, including intangibles, and GMIB liabilities are reported in accounts payable, accrued expenses and other liabilities.

GMDB

The majority of the GMDB exposure arises under annuities written by ceding companies that guarantee the benefit received at death will be no less than the highest historical account value of the related mutual fund investments on a contractholder’s anniversary date. Under this type of death benefit, the Company’s exposure arises when the highest anniversary account value exceeds the fair value of the related mutual fund investments at the time of a contractholder’s death.

Accounting policy. The Company estimates the gross liability and reinsurance recoverable 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. 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 asset presented below). The ending net retained reserve covers ongoing administrative expenses, as well as minor claim exposure retained by the Company.

Because the product is premium deficient, the Company records an increase to the net retained reserve if it is inadequate based on the model.

The following table presents the account value, net amount at risk and average attained age 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 reinsurance limit is exceeded, the Company should be reimbursed in full for these payments.

(Dollars in millions, excludes impact of reinsurance ceded)20172016
Account value$10,109$10,650
Net amount at risk$2,112$2,458
Average attained age of contractholders (weighted by exposure)7575
Number of contractholders245,000285,000

GMIB

In this business, the Company reinsured contracts with issuers of GMIB products. The Company’s exposure represents the excess of a contractually guaranteed amount over the level of variable annuity account values. Payment by the Company depends on the actual account value in the underlying mutual funds and the level of interest rates when the contractholders elect to receive minimum income payments that must occur within 30 days of a policy anniversary after the appropriate waiting period. The Company has purchased retrocessional coverage (“GMIB assets”) for these contracts.

Accounting policy. The Company reports GMIB liabilities and assets as derivatives at fair value because 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. Periodically, the Company 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 changes in account values and interest rates when contractholders first elect to receive minimum income payments. Cash flows on these contracts are reported in operating activities.

As of December 31, 2017 and 2016, there were three reinsurers for GMIB as follows:

(In millions)
Line of BusinessReinsurerDecember 31, 2017December 31, 2016Collateral and Other Termsat December 31, 2017
GMIBBerkshire $ 359 $ 370100% were secured by assets in a trust.
Sun Life Assurance Company of Canada221227
Liberty Re (Bermuda) Ltd.197202100% were secured by assets in a trust.
Total GMIB recoverables reported in other assets$777$799

Assumptions used in fair value measurement. GMIB assets and liabilities are established using capital market assumptions (including market returns, interest rates and market volatilities of the underlying equity and bond mutual fund investments) and assumptions related to future annuitant behavior (including mortality, lapse, and annuity election rates). As assumptions related to future annuitant behavior are largely unobservable, the Company classifies GMIB assets and liabilities in Level 3 in the fair value hierarchy presented in Note 10.

The only assumption expected to impact future shareholders’ net income is non-performance risk. The non-performance risk adjustment reflects a market participant’s view of nonpayment risk by adding an additional spread to the discount rate in the calculation of both (a) the GMIB liabilities to be paid by the Company, and (b) the GMIB assets to be paid by the reinsurers, after considering collateral.

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 of the Company, or significant increases in assumed annuity election rates or spreads used to calculate the non-performance risk of the reinsurers, 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 guarantees. 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 (2018 through 2022); and
  • all underlying mutual fund investment values remained at the December 31, 2017 value of $822 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 $573 million, which is lower than the recorded liability for GMIB calculated using fair value assumptions.

v3.8.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Fair value measurements

Note 10 – 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 only 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 for assigning the appropriate level within the fair value hierarchy, based on the significance of unobservable inputs. The Company reviews methodologies, processes and controls of third-party pricing services and compares prices on a test basis to those obtained from other external pricing sources or internal estimates. The Company performs ongoing analyses of both prices received from third-party pricing services and those developed internally to determine that they represent appropriate estimates of fair value. The controls executed by the Company include evaluating changes in prices and monitoring for potentially stale valuations. The Company also performs sample testing of sales values to confirm the accuracy of prior fair value estimates. The minimal exceptions identified during these processes indicate that adjustments to prices are infrequent and do not significantly impact valuations. 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 for 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 table provides information as of December 31, 2017 and 2016 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 in the Separate Accounts section as gains and losses related to these assets generally accrue directly to policyholders.

As of December 31,
(In millions)Quoted Prices in Active Markets for Identical Assets(Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)Total
20172016201720162017201620172016
Financial assets at fair value
Fixed maturities
Federal government and agency $253$374$526$503$-$-$779$877
State and local government--1,2871,435--1,2871,435
Foreign government--2,4422,06645472,4872,113
Corporate --17,65815,55243049818,08816,050
Mortgage and other asset-backed --343329154157497486
Total fixed maturities25337422,25619,88562970223,13820,961
Equity securities 4123967311310374588583
Subtotal66577022,32919,99873277623,72621,544
Short-term investments--199691--199691
GMIB assets ----777799777799
Other derivative assets --210--210
Total financial assets at fair value, excluding separate accounts$665$770$22,530$20,699$1,509$1,575$24,704$23,044
Financial liabilities at fair value
GMIB liabilities $-$-$-$-$762$780$762$780
Other derivative liabilities --255--255
Total financial liabilities at fair value, excluding separate accounts$-$-$25$5$762$780$787$785

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.  Approximately 94% 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 December 31, 2017 or 2016.  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 12.

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 3% of fixed maturities and equity securities are priced using significant unobservable inputs and classified in this category.

Fair values of mortgage and other asset-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 mortgage and other asset-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 table summarizes the fair value and significant unobservable inputs used in pricing the following securities that were developed directly by the Company as of December 31, 2017 and 2016. 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.

Mortgage and other asset-backed securities. The significant unobservable inputs used to value the following mortgage and other asset-backed securities are liquidity and weighting of credit spreads. 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.

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.

Private equity securities. The significant unobservable input used to value the following private 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.

Hybrid equity securities. The significant unobservable input used to value the following hybrid equity securities is an adjustment for liquidity due to limited trading activity. These cumulative preferred shares are deemed likely to exercise certain call options and the Company estimates an adjustment used to discount cash flows based on current market conditions and issuer circumstances.

As of December 31,
Fair ValueUnobservable InputUnobservable Adjustment Range (Weighted Average)
(Fair value in millions )2017201620172016
Fixed maturities
Mortgage and other asset-backed securities$154$157 Liquidity 60 - 370 (90) bps 60 - 330 (90) bps
Weighting of credit spreads 180 - 290 (230) bps 160 - 470 (230) bps
Corporate and government fixed maturities 446 490Liquidity70 - 1,650 (300) bps80 - 1,300 (340) bps
Total fixed maturities600647
Equity securities
Private equity securities7074 Price-to-EBITDA multiples 5.0 - 12.0 (8.9) 4.2 - 11.6 (8.5)
Hybrid equity securities33-Liquidity270 - 270 (270) bps
Total equity securities10374
Subtotal703721
Securities not priced by the Company(1)2955
Total Level 3 securities$732$776
(1) The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.

Significant increases in liquidity or credit spreads would result in lower fair value measurements while decreases in these inputs would result in higher fair value measurements. Significant decreases in equity price-to-EBITDA multiples would result in lower fair value measurements while increases in these inputs would result in higher fair value measurements. 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.  See discussion in Note 9.

Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes the changes in financial assets and financial liabilities classified in Level 3 for the years ended December 31, 2017 and 2016.  Separate account asset changes are reported in the Separate Accounts section as the changes in fair values of these assets generally accrue directly to the policyholders. Gains and losses reported in this table may include net changes in fair value that are attributable to both observable and unobservable inputs.

(In millions)Fixed Maturities & Equity SecuritiesGMIB AssetsGMIB Liabilities
201720162017201620172016
Balance at January 1, $776$726$799$907$(780)$(885)
Gains (losses) included in shareholders' net income
GMIB fair value gain/(loss)--31(47)(31)47
Other25(18)1-(5)(3)
Total gains (losses) included in shareholders' net income25(18)32(47)(36)44
Losses included in other comprehensive income(11)(1)----
Gains required to adjust future policy benefits for settlement annuities (1)729----
Purchases, sales, settlements
Purchases13396----
Sales(95)(140)----
Settlements(74)(74)(54)(61)5461
Total purchases, sales and settlements(36)(118)(54)(61)5461
Transfers into/(out of) Level 3
Transfers into Level 3275338----
Transfers out of Level 3(304)(180)----
Total transfers into/(out of) Level 3(29)158----
Balance at December 31,$732$776$777$799$(762)$(780)
Total gains (losses) included in shareholders' net income attributable to instruments held at the reporting date$(9)$(18)$32$(47)$(36)$44
(1) Amounts do not accrue to shareholders.

As noted in the preceding tables, 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. During 2017 and 2016, transfers between Level 2 and Level 3 primarily reflected changes in liquidity and credit risk estimates for certain private placement issuers across several sectors including metals, mining, energy, utilities, capital goods, consumer products and transportation services.

Separate Accounts

Accounting policy. Separate account assets and liabilities are contractholder funds maintained in accounts with specific investment objectives.  The assets of these accounts are legally segregated and are not subject to claims that arise out of any of the Company’s other businesses.  These separate account assets are carried at fair value with equal amounts recorded for related separate account liabilities.  The investment income and fair value gains and losses of these accounts generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company’s Consolidated Statements of Income and Cash Flows.  Fees and charges earned for mortality risks, asset management or administrative services are reported in either premiums or fees and other revenues. Investments that are measured using the practical expedient of Net Asset Value (“NAV”) are excluded from the fair value hierarchy.

At December 31, fair values of 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
20172016201720162017201620172016
Guaranteed separate accounts (See Note 21)$215$238$308$262$-$-$523$500
Non-guaranteed separate accounts (1)1,5361,3685,2984,8852923317,1266,584
Subtotal$1,751$1,606$5,606$5,147$292$3317,6497,084
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)774856
Total separate account assets$8,423$7,940
(1) Non-guaranteed separate accounts included $3.9 billion as of December 31, 2017 and $3.7 billion as of December 31, 2016 in assets supporting the Company's pension plans, including $0.3 billion classified in Level 3 for both periods and $0.8 billion as of December 31, 2017 and $0.9 billion as of December 31, 2016 priced at NAV as a practical expedient for each year.

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.

Separate account assets classified in Level 3 primarily support Cigna’s pension plans, and include certain newly issued, privately-placed, complex, or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans 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 years ended December 31, 2017 and 2016.

(In millions)20172016
Balance at January 1 $ 331 $ 297
Policyholder gains (losses)342
Purchases, issuances, settlements
Purchases3322
Sales(53)(11)
Settlements(13)(18)
Total purchases, sales and settlements(33)(7)
Transfers into/(out of) Level 3
Transfers into Level 3765
Transfers out of Level 3(47)(26)
Total transfers into/(out of) Level 3:(40)39
Balance at December 31$292$331

Separate account investments in securities partnerships, real estate, and hedge funds are generally valued based on the separate account’s ownership share of the equity of the investee (NAV as a practical expedient), including changes in the fair values of its underlying investments. Substantially all of these assets support the Cigna Pension Plans. The following table provides additional information on these investments.

UnfundedData as of December 31, 2017 and 2016
CommitmentsRedemption Frequency
Fair Value as ofas of(if currentlyRedemption Notice
(In millions)December 31, 2017December 31, 2016December 31, 2017eligible)Period
Securities partnerships$458 $ 424 $ 365Not applicableNot applicable
Real estate funds239231-Quarterly45-90 days
Hedge funds77201-Up to annually, varying by fund30-90 days
Total$774$856$365

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, partnership entities and commercial mortgage loans when they become impaired. Impaired values for these asset types classified as Level 3 representing less than 1% of total investments, were written down to their fair values, resulting in immaterial realized investment losses in 2017 and 2016.

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 December 31, 2017 and 2016. In addition to universal life products and capital leases, financial instruments that are carried in the Company’s Consolidated Financial Statements at amounts that approximate fair value are excluded from the following table.

(In millions)December 31, 2017December 31, 2016
Classification in Fair Value HierarchyFair ValueCarrying ValueFair ValueCarrying Value
Commercial mortgage loans Level 3 $ 1,766 $ 1,761 $ 1,682 $ 1,666
Contractholder deposit funds, excluding universal life productsLevel 3$1,121$1,119$1,215$1,212
Long-term debt, including current maturities, excluding capital leasesLevel 2 $ 5,730 $ 5,321 $ 5,460 $ 4,991

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 70% 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 December 31, 2017 and 2016.
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Investments
 12 Months Ended
Dec. 31, 2017
Investments:  
Investments

Note 11 – Investments, Investment Income and Gains and Losses

Cigna's investment portfolio consists of a broad range of investments including fixed maturities and equity securities, commercial mortgage loans, other long-term investments and short-term investments. The sections below provide more detail regarding our accounting policies, investment balances, net investment income and realized investment gains and losses. See Note 10 for information about the valuation of the Company’s investment portfolio.

  • Investment Portfolio

Fixed Maturities and Equity Securities

Accounting policy. Fixed maturities (including bonds, mortgage and other asset-backed securities and preferred stocks redeemable by the investor) and most equity securities are classified as available for sale and are carried at fair value with changes in fair value recorded in accumulated other comprehensive income (loss) within shareholders’ equity. Net unrealized appreciation on investments supporting the Company’s run-off settlement annuity business is reported in future policy benefit liabilities rather than accumulated other comprehensive income (loss).

Equity securities 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 December 31, 2017, fair values of these securities were $49 million and amortized cost was $61 million. As of December 31, 2016, fair values of these securities were $36 million and amortized cost was $49 million.

The Company records impairment losses in net income for fixed maturities with fair value below amortized cost that meet either of the following conditions:

  • If the Company intends to sell or determines that it is more likely than not to be required to sell these fixed maturities before their fair values recover, an impairment loss is recognized for the excess of the amortized cost over fair value.
  • If the net present value of projected future cash flows of a fixed maturity (based on qualitative and quantitative factors, including the probability of default, and the estimated timing and amount of recovery) is below the amortized cost basis, that difference is recognized as an impairment loss. For mortgage and asset-backed securities, estimated future cash flows are also based on assumptions about the collateral attributes including prepayment speeds, default rates and changes in value.

The amortized cost and fair value by contractual maturity periods for fixed maturities were as follows at December 31, 2017:

Amortized Fair
(In millions)CostValue
Due in one year or less$1,511$1,522
Due after one year through five years6,6556,848
Due after five years through ten years9,3779,599
Due after ten years3,8554,672
Mortgage and other asset-backed securities469497
Total$21,867$23,138

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.

AmortizedUnrealizedUnrealizedFair
(In millions)CostAppreciationDepreciationValue
December 31, 2017
Federal government and agency$541 $ 239 $ (1) $ 779
State and local government1,19693(2)1,287
Foreign government2,360142(15)2,487
Corporate17,301868(81)18,088
Mortgage and other asset-backed46929(1)497
Total$21,867$1,371$(100)$23,138
Investments supporting liabilities of the Company's run-off settlement annuity business (included in above total) (1)$2,200 $ 681 $ (2) $ 2,879
December 31, 2016
Federal government and agency$658 $ 223 $ (4)$877
State and local government1,34299(6)1,435
Foreign government1,998129(14)2,113
Corporate15,483716(149)16,050
Mortgage and other asset-backed46129(4)486
Total$19,942$1,196$(177)$20,961
Investments supporting liabilities of the Company's run-off settlement annuity business (included in above total) (1)$2,196 $ 539 $ (15)$2,720
(1) Net unrealized appreciation for these investments is excluded from accumulated other comprehensive income.

As of December 31, 2017, the Company had commitments to purchase $118 million of fixed maturities, all of which bear interest at a fixed market rate.

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.

Based on this review, management believes the unrealized depreciation below to be temporary, and therefore has not impaired these amounts. The table below summarizes fixed maturities with a decline in fair value from amortized cost by the length of time these securities have been in an unrealized loss position.

December 31, 2017December 31, 2016
Fair Amortized UnrealizedNumberFair Amortized UnrealizedNumber
(Dollars in millions)ValueCostDepreciationof IssuesValueCostDepreciationof Issues
One year or less
Investment grade$3,272$3,309$(37)797$4,346$4,475$(129)992
Below investment grade$543$553$(10)643$724$736$(12)591
More than one year
Investment grade$1,503$1,549$(46)373$308$327$(19)53
Below investment grade$155$162$(7)42$186$203$(17)28

There were no available for sale equity securities with a significant unrealized loss reflected in accumulated other comprehensive income at December 31, 2017.

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.

Accounting policy. Commercial mortgage loans are carried at unpaid principal balances or, if impaired, the lower of unpaid principal or fair value of the underlying real estate. See the “Impaired commercial mortgage loans” section below for the Company’s accounting policy for impaired commercial mortgage loans.

At December 31, commercial mortgage loans were distributed among the following property types and geographic regions:

(In millions)20172016
Property type
Office buildings$652$592
Apartment buildings608428
Industrial197302
Hotels 141205
Retail facilities135139
Other28-
Total$1,761$1,666
U.S. geographic region
Pacific$841$714
South Atlantic210268
New England238227
Central 237239
Middle Atlantic203186
Mountain3232
Total$1,761$1,666

As of December 31, 2017, approximately 86% of the Company’s commercial mortgage loan portfolio is scheduled to mature in 2022 or thereafter.

Actual maturities could differ from contractual maturities for several reasons: borrowers may have the right to prepay obligations with or without prepayment penalties; the maturity date may be extended; and loans may be refinanced.

As of December 31, 2017, the Company had commitments to extend credit under commercial mortgage loan agreements of $21 million.

Credit quality. The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period. Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at origination that is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on a consistent and ongoing basis, 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 table summarizes the credit risk profile of the Company’s commercial mortgage loan portfolio based on loan-to-value and debt service coverage ratios, as of December 31, 2017 and 2016:

(Dollars in millions)20172016
Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value Ratio
Below 60%$1,1092.03$9432.06
60% to 79%6522.24 7021.89
80% to 100%--21-
Total$1,7612.1157% $ 1,6661.9557%

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 2017 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 historical results, current leases, lease expirations and rental conditions in each market, the Company estimates the current year and future stabilized property income and fair value for each loan.

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.

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. The Company estimates the fair value of the underlying real estate using internal valuations generally based on discounted cash flow analyses. 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.

As of December 31, 2017 and 2016, impaired commercial mortgage loans and valuation reserves associated with impaired loans were not material. For the years ended December 31, 2017 and 2016, the average recorded investment in impaired loans and interest income on impaired loans were not material.

Other Long-Term Investments

Accounting policy. Other long-term investments include investments in unconsolidated entities. These entities include certain limited partnerships and limited liability companies holding real estate, securities or loans. These investments are carried at cost plus the Company’s ownership percentage of reported income or loss in cases where the Company has significant influence; otherwise the investment is carried at cost. Income from certain entities is reported on a one quarter lag depending on when their financial information is received. Other long-term investments are considered impaired, and written down to their fair value, when cash flows indicate that the carrying value may not be recoverable. Fair value is generally determined based on a discounted cash flow analysis.

Other long-term investments also include investment real estate carried at depreciated cost less any impairment write downs to fair value when cash flows indicate that the carrying value may not be recoverable. Depreciation is generally recorded using the straight-line method based on the estimated useful life of each asset. Investment real estate as of December 31, 2017 and 2016 is expected to be held longer than one year and includes real estate acquired through the foreclosure of commercial mortgage loans.

Additionally, other long-term investments include interest rate and foreign currency swaps carried at fair value. See Note 12 for information on the Company’s accounting policies for these derivative financial instruments.

Other long-term investments and related commitments are diversified by issuer, property type and geographic regions. The following table provides unfunded commitment and fair value information on these investments. The Company expects to disburse approximately 31% of the committed amounts in 2018.

Unfunded
Fair value as of December 31,Commitments as of
(In millions)20172016December 31, 2017
Real estate investments$591$738$270
Securities partnerships863650876
Other647432
Total$1,518$1,462$1,178

Short-Term Investments and Cash Equivalents

Accounting policy. Security investments with maturities of greater than three months to one year from time of purchase are classified as short-term, available for sale and carried at fair value that approximates cost. Cash equivalents consist of short-term investments with maturities of three months or less from the time of purchase and are carried at cost that approximates fair value.

Short-term investments and cash equivalents included the following types of issuers:

December 31,December 31,
(In millions)20172016
Corporate securities$1,143$2,234
Federal government securities$604$378
Foreign government securities$159$94
Money market funds$12$11

Concentration of Risk

As of December 31, 2017 and 2016, the Company did not have a concentration of investments in a single issuer or borrower exceeding 10% of shareholders’ equity.

Net Investment Income

Accounting policy. When interest and principal payments on investments are current, the Company recognizes interest income when it is earned. The Company recognizes interest income on a cash basis when interest payments are delinquent based on contractual terms or when certain terms (interest rate or maturity date) of the investment have been restructured.

The components of pre-tax net investment income for the years ended December 31 were as follows:

(In millions)201720162015
Fixed maturities$946$899$879
Equity securities1443
Commercial mortgage loans8191112
Policy loans697272
Other long-term investments12498116
Short-term investments and cash422614
Total investment income1,2761,1901,196
Less investment expenses504343
Net investment income$1,226$1,147$1,153
Net investment income for separate accounts (1)$225$236$262
(1) Net investment income for these investments is excluded from the Company's revenues.

Real estate investments and securities partnerships with a carrying value of $191 million at December 31, 2017 and $220 million at December 31, 2016 were non-income producing during the preceding twelve months.

Realized Investment Gains And Losses

Accounting policy. Realized investment gains and losses are based on specifically identified assets and result from sales, investment asset write-downs, changes in the fair values of certain derivatives and changes in valuation reserves on commercial mortgage loans.

The following realized gains and losses on investments for the years ended December 31 exclude amounts required to adjust future policy benefits for the run-off settlement annuity business.

(In millions)201720162015
Fixed maturities$25$23$(82)
Equity securities52(1)36
Commercial mortgage loans(1)4(2)
Other investments, including derivatives161143105
Net realized investment gains, before income taxes23716957
Less income taxes816017
Net realized investment gains$156$109$40

Included in the realized investment gains and losses in the above table were pre-tax asset write-downs on debt securities and other asset write-downs of $31 million for the year ended December 31, 2017, $58 million for the year ended December 31, 2016 and $140 million for the year ended December 31, 2015. Realized investment gains in other investments, including derivatives, represent primarily gains on sale of real estate properties held in joint ventures.

Realized investment gains that are excluded from the Company’s revenues for the years ended December 31 were as follows:

(In millions)201720162015
Separate accounts $ 157 $ 16 $ 117
Investment gains required to adjust future policy benefits for the run-off settlement annuity business$20$63$114

The following table presents sales information for available-for-sale fixed maturities and equity securities for the years ended December 31. Gross gains on sales and gross losses on sales exclude amounts required to adjust future policy benefits for the run-off settlement annuity business.

(In millions)201720162015
Proceeds from sales $ 2,012 $ 1,544 $ 1,555
Gross gains on sales$103$83$85
Gross losses on sales $ (18) $ (7) $ (13)
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Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

Note 12 – 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 and further discussed in Note 9. 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.

Accounting policy. The Company applies hedge accounting when derivatives are designated, qualified and highly effective as hedges. Effectiveness is formally assessed and documented at inception and each period throughout the life of a hedge using various quantitative methods appropriate for each hedge, including regression analysis and dollar offset. Under hedge accounting, the changes in fair value of the derivative and the hedged risk are generally recognized together and offset each other when reported in shareholders’ net income. Changes in the fair value of a derivative instrument may not always equal changes in the fair value of the hedged item. This is referred to as “hedge ineffectiveness” and is generally recorded in realized investment gains and losses. In the event of an early hedge termination, the changes in fair value of derivatives that qualified for hedge accounting are reported in shareholders’ net income, generally as a part of realized investment gains and losses. Derivative cash flows are generally reported in operating activities.

The following tables provide information on the Company’s specific applications of derivative financial instruments during the years ended December 31

Fair Value Hedge of Long-Term Corporate DebtNotional Value (in millions)
Type of instrument. Interest rate swap contracts20172016
$750$750
Purpose. To convert a portion of the interest rate exposure on the Company's long-term debt from fixed to variable rates. This more closely aligns the Company's interest expense with the interest income received on its cash equivalent and short-term investment balances. The variable rates are benchmarked to LIBOR.
Terms of derivative instruments. The Company provides upfront margin and settles fair value changes and net interest between variable and fixed rates daily with a central clearinghouse.
Accounting. 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. The critical terms of these swaps match those of the long-term debt being hedged. As a result, 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. The net impact from the hedge reported in other operating expenses reflects interest expense on the hedged debt at the variable interest rate.

Fair Value Hedges of Fixed Maturity BondsNotional Value (in millions)
Type of instrument. Foreign currency swap contracts20172016
$318$78
Purpose. To hedge the foreign exchange related changes in fair values of the Company's fixed maturity bonds.
Terms of derivative instruments. The Company periodically exchanges cash flows between two currencies for both principal and interest. Foreign currency swaps are Euros and British pounds and have terms for up to twelve years.
Accounting. Using fair value hedge accounting, fair values are reported in other long-term investments or accounts payable, accrued expenses, and other liabilities. Changes in fair values of the swap contracts, as well as changes in the fair values of the hedged bonds attributable to the hedged risk, are reported in other realized investment gains and losses.

Economic Hedges of a Fixed Maturity Bond PortfolioNotional Value (in millions)
Type of instrument. Foreign currency forward contracts20172016
$255$149
Purpose. To hedge the foreign exchange related changes in fair values of a U.S. dollar-denominated fixed maturity bond portfolio to reflect the local currency for one of the Company's foreign subsidiaries.
Terms of derivative instruments. The Company agrees to purchase South Korean won in exchange for U.S. dollars at a future date, generally within three months from the contracts' trade dates.
Accounting. As these arrangements were not designated as accounting hedges, fair values are reported in short-term investments or accounts payable, accrued expenses, and other liabilities, and changes in fair values are reported in other realized investment gains and losses.

As of and for the years ended December 31, 2017 and 2016, the effects of these derivative instruments on the Consolidated Financial Statements were not material, including the amounts of gains or losses reclassified from accumulated other comprehensive income into shareholders’ net income. No material amounts were excluded from the assessment of hedge effectiveness and no significant gains or losses were recognized due to hedge ineffectiveness.

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 December 31, 2017, the Company had $9 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 December 31, 2017 or 2016.
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Variable Interest Entities
 12 Months Ended
Dec. 31, 2017
Variable Interest Entities [Abstract]  
Variable interest entities

Note 13 – 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 must determine if it is the primary beneficiary and must consolidate the entity. The Company would be considered the primary beneficiary if it has the power to direct the entity’s most significant economic activities or has the right to receive benefits or obligation to absorb losses that could be significant to the entity. The Company evaluates the following criteria:

  • 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.

As of December 31, 2017 and 2016, the Company determined it was not a primary beneficiary in any material variable interest entities. The Company’s involvement in variable interest entities where it is not the primary beneficiary is described below.

Securities limited partnerships and real estate limited partnerships. The Company owns interests in securities limited partnerships and real estate limited partnerships that are defined as variable interest entities. These partnerships invest 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 $2.4 billion across approximately 116 limited partnerships as of December 31, 2017 includes $1.2 billion reported in other long-term investments and commitments to contribute an additional $1.2 billion. The Company’s non-controlling interest in each of these limited partnerships is generally less than 10% of the partnership ownership interests.

Other asset-backed and corporate securities. In the normal course of its investing activities, the Company also makes passive investments in certain asset-backed and corporate securities that are issued by variable interest entities whose sponsors or issuers are unaffiliated with the Company. The Company receives fixed-rate cash flows from these investments and the maximum potential exposure to loss is limited to the carrying amount of $0.6 billion as of December 31, 2017 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 is also involved in real estate joint ventures, independent physician associations (“IPAs”) and a joint venture in India that are variable interest entities. The carrying values and maximum exposures associated with these arrangements are immaterial.

The Company has not provided, and does not intend to provide, financial support to any of the above 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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Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 14 – Accumulated Other Comprehensive Income (Loss) (“AOCI”)

AOCI includes the Company’s share from entities accounted for using the equity method. AOCI 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:

(in millions)201720162015
Securities
Beginning balance$362$418$620
Appreciation (depreciation) on securities35(48)(389)
Tax (expense) benefit(19)6157
Net appreciation (depreciation) on securities16(42)(232)
Reclassification adjustment for (gains) losses included in shareholders' net income (net realized investment gains)(77)(22)46
Tax benefit (expense)278(16)
Net (gains) losses reclassified from AOCI to net income(50)(14)30
Other comprehensive (loss), net of tax(34)(56)(202)
Ending balance$328$362$418
Derivatives
Beginning balance$3$7$(8)
(Depreciation) appreciation on derivatives(1)-10
Tax (expense) --(3)
Net (depreciation) appreciation on derivatives(1)-7
Reclassification adjustment for losses included in shareholders' net income (other operating expenses)1112
Reclassification adjustment for (gains) included in shareholders' net income (net realized investment gains)(4)(7)-
Tax benefit (expense)12(4)
Net (gains) losses reclassified from AOCI to net income(2)(4)8
Other comprehensive (loss) income , net of tax(3)(4)15
Ending balance$-$3$7
Translation of foreign currencies
Beginning balance$(369)$(274)$(62)
Translation of foreign currencies309(95)(224)
Tax (expense) benefit(5)-12
Net translation of foreign currencies304(95)(212)
Ending balance$(65)$(369)$(274)
Postretirement benefits liability
Beginning balance$(1,378)$(1,401)$(1,486)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)646468
Reclassification adjustment for settlement (other operating expenses)7--
Tax (expense) benefit(24)(22)(23)
Net adjustments reclassified from AOCI to net income474245
Valuation update(22)(29)63
Tax benefit (expense) 810(23)
Net change due to valuation update(14)(19)40
Other comprehensive income (loss), net of tax332385
Ending balance$(1,345)$(1,378)$(1,401)
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Pension and Other Postretirement Benefit Plans
 12 Months Ended
Dec. 31, 2017
Pension and Other Postretirement Benefit Plans [Abstract]  
Pension and Other Postretirement Benefit Plans

Note 15 – Pension and Other Postretirement Benefit Plans

  • About our Plans

Pension plans. The Company’s principal qualified defined benefit pension plans, the Cigna Pension Plan and the Cigna Pension Plan for Certain Former Employees, cover approximately 22,200 retirees, 14,500 vested former employees and 14,000 active employees. Current retirees, certain vested former employees and longer-service active employees are entitled to an annuity benefit based on pay and length of service. Most pension-eligible active employees and certain vested former employees are entitled to a cash balance defined benefit. The Cigna Supplemental Pension Plan, a non-qualified and unfunded plan, covers only certain employees. We froze future benefit accruals for all of these domestic pension plans in 2009. Additionally the Company has foreign pension and other postretirement benefit plans that are immaterial to our results of operations, liquidity and financial position.

As further discussed in Note 21, Cigna Corporation and the Cigna Pension Plan are defendants in a class action lawsuit related to the Plan’s conversion of certain employees from an annuity to a cash balance benefit in 1997. When the required plan amendment related to this litigation is adopted, the pension benefit obligation will be updated to reflect benefits resulting from this litigation.

Other postretirement benefit plans. The Company’s postretirement benefit medical plan covers approximately 18,400 retirees and 18,600 active employees. Post-1988 retirees contribute to the cost of this coverage, whereas pre-1989 retirees do not. For post-1988 retirees, the Company’s cost is capped at 200% of the per capita cost in 2000. Pharmacy coverage for Medicare-eligible retirees is delivered using an Employer Group Waiver Plan. Under that plan, the Company receives subsidies from CMS. The postretirement medical plan is unfunded and future benefit accruals were frozen in 2013. The Company also offers certain postretirement life insurance benefits through various plans. Retirees do not contribute to the cost of life insurance benefits.

Accounting policy. The Company measures the assets and liabilities of its domestic pension and other postretirement benefit plans as of December 31. Benefit obligations are measured at the present value of estimated future payments based on actuarial assumptions. The Company uses the “corridor” method to account for changes in the benefit obligation when actual results differ from those assumed, or when assumptions change. These changes are called net unrecognized actuarial gains (losses). Under the corridor method, net unrecognized actuarial gains (losses) are initially recorded in accumulated other comprehensive income. When the unrecognized gain (loss) exceeds 10% of the benefit obligation, that excess is amortized to other operating expense over the expected remaining lives of plan participants.

For balance sheet purposes, we measure plan assets at fair value. When the actual return differs from the expected return, those differences are reflected in the net unrealized actuarial gain (loss) discussed above. However, to measure pension benefit costs, we use a “market-related” asset valuation that differs from the actual fair value for domestic pension plan assets invested in non-fixed income investments. The “market-related” value recognizes the difference between actual and expected long-term returns in the portfolio over five years, a method that reduces the short-term impact of market fluctuations on pension costs. At December 31, 2017, the market-related asset value was approximately $4.1 billion compared with a fair value of approximately $4.3 billion.

Funded Status and Amounts Included in Accumulated Other Comprehensive Income

The following table summarizes the projected benefit obligations and assets related to our domestic and international pension and other postretirement benefit plans as of, and for the years ended, December 31:

Pension Other Postretirement
BenefitsBenefits
(In millions)2017201620172016
Change in benefit obligation
Benefit obligation, January 1$4,888$4,934$277$295
Service cost32--
Interest cost186199911
Loss from past experience181(1)57(1)12
Benefits paid from plan assets(277)(284)(3)(3)
Benefits paid — other(12)(20)(26)(28)
Benefit obligation, December 314,9694,888258277
Change in plan assets
Fair value of plan assets, January 13,9773,98158
Actual return on plan assets418279--
Benefits paid(277)(284)(3)(3)
Contributions1631--
Fair value of plan assets, December 314,2813,97725
Funded status$(688)$(911)$(256)$(272)
(1) Loss in each year reflects a decrease in the discount rate, partially offset by a favorable change in the mortality assumption.

We fund our qualified pension plans at least at the minimum amount required by the Employee Retirement Income Security Act of 1974 and the Pension Protection Act of 2006. For 2018, we do not expect to make any contributions to the qualified pension plans because none are required. Future years’ contributions will ultimately be based on a wide range of factors including but not limited to asset returns, discount rates and funding targets. Non-qualified pension and other postretirement benefit plans are generally funded on a pay-as-you-go basis as there are no plan assets for these plans.

Benefit payments. The following benefit payments are expected to be paid in:

Pension Other Postretirement
(In millions)BenefitsBenefits
2018$340$27
2019$334$26
2020$325$25
2021$325$23
2022$324$22
2023-2027$1,573$87

Amounts reflected in the pension and other postretirement benefit liabilities shown above that have not yet been reported in net income and therefore are included in accumulated other comprehensive loss consisted of the following as of December 31:

Pension Other
BenefitsPostretirement Benefits
(In millions)2017201620172016
Unrecognized net (losses) $(2,113)$(2,163)$-$-
Unrecognized prior service cost(6)(6)4649
Postretirement benefits liability adjustment$(2,119)$(2,169)$46$49

We expect to recognize pre-tax losses of $69 million in 2018 from amortization of the net actuarial loss in our pension plans and pre-tax gains of $3 million in 2018 from amortization of prior service cost in the other postretirement benefit plans. These estimates are based on a weighted average amortization period for the frozen and inactive plans that is based on the average expected remaining life of plan participants of approximately 26 years.

  • Cost of Our Plans

Components of net pension and other postretirement benefits cost for the years ended December 31 were as follows:

Pension BenefitsOther Postretirement Benefits
(In millions)201720162015201720162015
Service cost$3$2$2$-$-$-
Interest cost18619919491111
Expected long-term return on plan assets(260)(249)(267)---
Amortization of:
Net loss from past experience66657011-
Prior service cost-1-(3)(3)(3)
Settlement loss7-----
Net plan cost$2$18$(1)$7$9$8

Assumptions Used for Pension and Other Postretirement Benefit Plans

Management determined the present value of the projected benefit obligation and the accumulated other postretirement benefit obligation and related benefit costs based on the following weighted average assumptions as of and for the years ended December 31:

20172016
Discount rate:
Pension benefit obligation3.51%3.95%
Other postretirement benefit obligation3.37%3.70%
Pension benefit cost3.95%4.17%
Other postretirement benefit cost3.70%3.89%
Expected long-term return on plan assets:
Pension benefit cost7.25%7.25%
Other postretirement benefit cost5.00%5.00%
Mortality table for pension and postretirement benefit obligationsRP 2014 with MP 2017 projection scaleRP 2014 with MP 2016 projection scale

The Company used the Society of Actuaries mortality table RP2014 and the updated improvement scales published in 2016 and 2017 to value its benefit obligations because the Company’s mortality experience closely matched these tables based on internal studies. The updated improvement scales published in 2016 and 2017 both indicated that mortality improvement is expected to be lower than was originally projected when the study was first published in 2014, resulting in decreases to the benefit obligations in both years.

The Company sets discount rates by applying actual annualized yields for high quality bonds at various durations to the expected cash flows of the pension and other postretirement benefits liabilities. A discount rate curve is constructed using an array of bonds in various industries throughout the domestic market, but only selects those for the curve that have an above average return at each duration. Management believes that this curve is representative of the yields that the Company is able to achieve through its plan asset investment strategy.

Expected long-term rates of return on plan assets were developed considering actual long-term historical returns, expected long-term market conditions, plan asset mix and management’s investment strategy that continues a significant allocation to domestic and foreign equity securities as well as securities partnerships, real estate and hedge funds. Expected long-term market conditions take into consideration certain key macroeconomic trends including expected domestic and foreign GDP growth, employment levels and inflation.

The estimated rate of future increases in the per capita cost of postretirement health care benefits is 6.50% in 2018, decreasing by 0.25% per year to 4.75% in 2024 and beyond. The impact of a 1% increase or decrease in the estimated rate would be immaterial to postretirement cost and benefit obligation.

Pension Plan Assets

As of December 31, 2017, pension assets included $3.9 billion invested in the separate accounts of Connecticut General Life Insurance Company and Life Insurance Company of North America, subsidiaries of the Company, as well as an additional $342 million invested directly in funds offered by the buyer of the retirement benefits business.

The fair values of pension assets by category are as follows as of December 31, 2017 and 2016.

(In millions)20172016
Fixed maturities:
Federal government and agency$1$1
Corporate1,1241,125
Asset-backed2222
Fund investments 884630
Total fixed maturities2,0311,778
Equity securities:
Domestic689681
International, including funds and pooled separate accounts (1)476350
Total equity securities1,1651,031
Securities partnerships457424
Real estate funds, including pooled separate accounts (1)300289
Commercial mortgage loans140129
Hedge funds73196
Guaranteed deposit account contract6367
Cash equivalents and other current assets, net5263
Total pension assets at fair value $ 4,281 $ 3,977
(1) A pooled separate account has several participating benefit plans and each owns a share of the total pool of investments.

The Company’s current target investment allocation percentages (50% fixed income, 30% public equity securities and 20% in other investments, including private equity (securities partnerships), real estate and hedge funds) are developed by management as guidelines, although the fair values of each asset category are expected to vary as a result of changes in market conditions. The Company would expect to further reduce the allocation to equity securities and other investments and increase the allocation to fixed income investments as funding levels improve.

See Note 10 for further details regarding how fair value is determined, including the level within the fair value hierarchy and the procedures we use to validate fair value measurements. Within pension plan assets, the Company classifies substantially all fixed maturities in Level 2. These assets are valued using recent trades of similar securities or are fund investments priced using their daily net asset value that is the exit price. Within pension assets, a substantial portion of domestic equity securities are classified as Level 1, while international equity funds are predominantly classified in Level 2 using daily net asset value.

Securities partnerships, real estate and hedge funds are valued using NAV as a practical expedient and are excluded from the fair value hierarchy. See Note 10 for additional disclosures related to these assets invested in the separate accounts of the Company’s subsidiaries. Certain securities as described in Note 10, as well as commercial mortgage loans and guaranteed deposit account contracts, are classified in Level 3 because unobservable inputs used in their valuation are significant.

401(k) Plans

The Company sponsors a 401(k) plan in which the Company matches a portion of employees’ pre-tax contributions. Participants in the plan may invest in various funds that invest in the Company’s common stock, several diversified stock funds, a bond fund or a fixed-income fund.

The Company may elect to increase its matching contributions if the Company’s annual performance meets certain targets. The Company’s annual expense for these plans was as follows:

(In millions)201720162015
Expense$122$113$106
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Employee Incentive Plans
 12 Months Ended
Dec. 31, 2017
Employee Incentive Plans [Abstract]  
Employee Incentive Plans

Note 16 – Employee Incentive Plans

A. About Our Plans

The People Resources Committee (“the Committee”) of the Board of Directors awards stock options, restricted stock, deferred stock and strategic performance shares (“SPS”) to certain employees. The Committee has issued common stock instead of cash compensation. The Company issues shares from Treasury stock for these awards.

The Company records compensation expense for stock and option awards over their vesting periods primarily based on the estimated fair value at the grant date. Fair value is determined differently for each type of award as discussed below.

Shares of common stock available for award at December 31 were as follows:

(In millions)201720162015
Common shares available for award14.06.88.6

B. Stock Options

Accounting policy. The Company awards options to purchase Cigna common stock at the market price of the stock on the grant date. Options vest over periods ranging from one to three years and expire no later than 10 years from grant date. Fair value is estimated using the Black-Scholes option-pricing model by applying the assumptions presented below. That fair value is reduced by options expected to be forfeited during the vesting period. The Company estimates forfeitures at the grant date based on our experience and adjusts the expense to reflect actual forfeitures over the vesting period. The fair value of options, net of forfeitures, is recognized in operating expenses on a straight line basis over the vesting period.

Compensation cost for stock options recorded in operating expenses was as follows for the years ended December 31:

(In millions)201720162015
Stock options compensation cost$52$53$42

Black-Scholes option-pricing model assumptions and the resulting fair value of options are presented in the following table.

201720162015
Dividend yield0.0%0.0%0.0%
Expected volatility35.0%35.0%35.0%
Risk-free interest rate1.8%1.2%1.3%
Expected option life4.3 years4.3 years4.3 years
Weighted average fair value of options$46.38$42.01$36.40

The expected volatility reflects the past daily stock price volatility of Cigna stock. The Company does not consider volatility implied in the market prices of traded options to be a good indicator of future volatility because remaining traded options will expire within one year. The risk-free interest rate is derived using the four-year U.S. Treasury bond yield rate as of the award date for the primary annual grant. Expected option life reflects the Company’s historical experience.

The following table shows the status of, and changes in, common stock options during the last three years.

(Options in thousands)201720162015
Weighted Weighted Weighted
AverageAverageAverage
OptionsExercise PriceOptionsExercise PriceOptionsExercise Price
Outstanding - January 17,097$82.016,433$68.867,331$51.84
Granted1,230$149.171,336$139.201,410$120.94
Exercised(2,072)$63.41(577)$62.09(2,146)$43.63
Expired or canceled(99)$138.41(95)$117.18(162)$86.04
Outstanding - December 316,156$100.797,097$82.016,433$68.86
Options exercisable at year-end3,894$77.364,409$58.363,414$46.55

Compensation expense of $39 million related to unvested stock options at December 31, 2017 will be recognized over the next two years (weighted average period).

The table below summarizes information for stock options exercised during the last three years:

(In millions)201720162015
Intrinsic value of options exercised$218$41$179
Cash received for options exercised$131$36$94
Tax benefit from options exercised$41$11$42

The following table summarizes information for outstanding common stock options at December 31, 2017:

Options Options
OutstandingExercisable
Number (in thousands)6,1563,894
Total intrinsic value (in millions)$630$490
Weighted average exercise price$100.79 $ 77.36
Weighted average remaining contractual life6.65.5

C. Restricted Stock

The Company awards restricted stock to the Company’s employees with vesting periods ranging from three to five years. Recipients of restricted stock awards accumulate dividends during the vesting period, but forfeit their awards and accumulated dividends if their employment terminates before the vesting date.

Accounting policy. Fair value of restricted stock awards is equal to the market price of Cigna’s common stock on the date of grant. This fair value is reduced by awards that are expected to forfeit. At the grant date, the Company estimates forfeitures based on experience and adjusts the expense to reflect actual forfeitures over the vesting period. This fair value, net of forfeitures, is recognized in other operating expenses over the vesting period on a straight line basis.

Compensation cost for restricted stock awards was as follows for the years ended December 31:

(In millions)201720162015
Restricted stock compensation cost$53$40$33

The following table shows the status of, and changes in, restricted stock awards during the last three years.

(Awards in thousands)201720162015
Weighted Average Fair Value at Award DateWeighted Average Fair Value at Award DateWeighted Average Fair Value at Award Date
Grants/UnitsGrants/UnitsGrants/Units
Outstanding - January 11,309$97.781,642$72.582,121$53.59
Awarded451$155.21315$138.61352$121.93
Vested(409)$67.09(591)$50.01(736)$41.99
Forfeited(56)$121.74(57)$92.51(95)$68.31
Outstanding - December 311,295$126.441,309$97.781,642$72.58

The fair value of vested restricted stock at the vesting date for the years ended December 31 was as follows:

(In millions)201720162015
Fair value of vested restricted stock$62$82$92

At the end of 2017, approximately 4,800 employees held 1.3 million restricted stock awards with $68 million of related compensation expense to be recognized over the next two years (weighted average period).

D. Strategic Performance Shares (“SPS”)

The Company awards SPSs to executives and certain other key employees generally with a performance period of three years. Half of these shares are subject to a market condition (total shareholder return relative to industry peer companies) and half are subject to a performance condition (cumulative adjusted net income). These targets are set by the Committee. At the end of the performance period, holders of SPSs are awarded shares of Cigna common stock ranging anywhere from 0 to 200% of the original grant of SPSs.

Accounting policy. Compensation expense for SPSs is recorded over the performance period. For “market condition” SPSs, fair value is determined at the grant date using a Monte Carlo simulation model and not subsequently adjusted regardless of the final outcome. For “performance condition” SPSs, expense is initially accrued based on the most likely outcome, but evaluated for adjustment each period for updates in the expected outcome. At the end of the performance period, expense is adjusted to the actual outcome (number of shares awarded times the share price at the grant date). At the grant date, the Company estimates forfeitures based on experience and adjusts the expense to reflect actual forfeitures over the vesting period.

Compensation expense for SPSs was as follows for the years ended December 31:

(In millions)201720162015
Strategic performance shares compensation cost$40$35$36

The following table shows the status of, and changes in, SPSs during the last three years:

201720162015
WeightedWeightedWeighted
Average Fair ValueAverage Fair ValueAverage Fair Value
(Awards in thousands)Sharesat Award DateSharesat Award DateSharesat Award Date
Outstanding - January 1942$109.141,188$81.681,547$59.20
Awarded275$150.06286$139.05311$121.78
Vested(386)$78.91(494)$60.15(608)$45.51
Forfeited(53)$138.19(38)$112.70(62)$76.33
Outstanding - December 31778$136.57942$109.141,188$81.68

The fair value of vested SPSs at the vesting date for the years ended December 31 was as follows:

201720162015
(Shares in thousands; $ in millions)SharesFair ValueSharesFair ValueSharesFair Value
Shares of Cigna common stock distributed upon SPS vesting476$70768$109972$119

At the end of 2017, approximately 1,500 employees held 778,000 SPSs and $38 million of related compensation expense is expected to be recognized over the next two years. For “performance condition” SPSs, the amount of expense may vary based on actual performance in 2018 and 2019.

E. One-Time Employee Stock Award

In 2017, the Company granted most employees a one-time stock award of five shares that immediately vested. In connection with this program, approximately 205,000 shares were issued at a price of $162.96, resulting in a pre-tax cost of $33 million.

F. Compensation Cost and Tax Effects of Share-based Compensation

During the vesting period, the Company records tax benefits in shareholders’ net income based on the amount of expense being recognized. When stock options are exercised, or when restricted stock and SPSs vest, the difference between tax benefits based on the expense and the actual tax benefit realized are also recorded in net income beginning in 2016 in accordance with ASU 2016-09. Prior to 2016, such excess tax benefits were recorded as an adjustment to additional paid-in capital. The table below provides information about the cost and tax benefits related to all of our share-based compensation arrangements discussed above.

(In millions)201720162015
Total compensation cost for shared-based awards$178$128$111
Tax benefits recognized$79$57$24
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Goodwill, Other Intangibles, and Property and Equipment
 12 Months Ended
Dec. 31, 2017
Goodwill Other Intangibles And Property And Equipment [Abstract]  
Goodwill, Other Intangibles, and Property and Equipment

Note 17 – Goodwill, Other Intangibles and Property and Equipment

  • Goodwill

Accounting policy. Goodwill represents the excess of the cost of businesses acquired over the fair value of their net assets. The resulting goodwill is assigned to those reporting units expected to realize cash flows from the acquisition, allocated to reporting units based on relative fair values, primarily reported in the Global Health Care segment ($5.9 billion) and, to a lesser extent, the Global Supplemental Benefits segment ($0.3 billion).

The Company evaluates goodwill for impairment at least annually during the third quarter at the reporting unit level and writes it down through shareholders’ net income if impaired. Fair value of a reporting unit is generally estimated based on either market data or a discounted cash flow analysis using assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price. The significant assumptions and estimates used in determining fair value include the discount rate and future cash flows. A range of discount rates is used that corresponds with the reporting unit’s weighted average cost of capital, consistent with that used for investment decisions considering the specific and detailed operating plans and strategies within the reporting unit. Projections of future cash flows for the reporting unit are consistent with our annual planning process for revenues, claims, operating expenses, taxes, capital levels and long-term growth rates.

Goodwill activity. Goodwill activity during 2017 and 2016 was as follows:

(In millions)20172016
Balance at January 1,$5,980 $ 6,019
Goodwill acquired, net1541
Impact of foreign currency translation30(40)
Balance at December 31,$6,164$5,980

Other Intangibles

Accounting policy. The Company’s other intangible assets include purchased customer and producer relationships, provider networks and trademarks. The fair value of purchased customer relationships and the amortization method were determined as of the dates of purchase using an income approach that relies on projected future net cash flows including key assumptions for the customer attrition rate and discount rate. The Company amortizes other intangibles on an accelerated or straight-line basis over periods from five to 30 years. Management revises amortization periods if it believes there has been a change in the length of time that an intangible asset will continue to have value. Costs incurred to renew or extend the terms of these intangible assets are generally expensed as incurred.

Components of other assets, including other intangibles. Other intangible assets were comprised of the following at December 31:

AccumulatedNet Carrying
(In millions)CostAmortizationValue
2017
Customer relationships $1,280$1,056$224
Other 291170121
Total reported in other assets, including other intangibles1,5711,226345
Value of business acquired (reported in deferred policy acquisition costs)23286146
Total other intangible assets $1,803$1,312$491
2016
Customer relationships $1,256$965$291
Other 284151133
Total reported in other assets, including other intangibles1,5401,116424
Value of business acquired (reported in deferred policy acquisition costs)23268164
Total other intangible assets $1,772$1,184$588

Property and Equipment

Accounting policy. Property and equipment is carried at cost less accumulated depreciation. When applicable, cost includes interest, real estate taxes and other costs incurred during construction. Also included in this category is internal-use software that is acquired, developed or modified solely to meet the Company’s internal needs, with no plan to market externally. Costs directly related to acquiring, developing or modifying internal-use software are capitalized.

The Company calculates depreciation and amortization principally using the straight-line method generally based on the estimated useful life of each asset as follows: buildings and improvements, 10 to 40 years; purchased software, three to five years; internally developed software, three to seven years; and furniture and equipment (including computer equipment), three to 10 years. Improvements to leased facilities are depreciated over the lesser of the remaining lease term or the estimated life of the improvement. The Company considers events and circumstances that would indicate the carrying value of property, equipment or capitalized software might not be recoverable. If the Company determines the carrying value of any of these assets is not recoverable, an impairment charge is recorded.

Components of property and equipment. Property and equipment was comprised of the following as of December 31:

AccumulatedNet Carrying
(In millions)CostAmortizationValue
2017
Internal-use software$2,991 $ 2,184 $ 807
Other property and equipment
Assets recorded under capital leases (1)493118
Other property and equipment not recorded under capital leases1,573835738
Total other property and equipment1,622866756
Total property and equipment$4,613$3,050$1,563
2016
Internal-use software$2,766$1,997$769
Other property and equipment
Assets recorded under capital leases (1)874938
Other property and equipment not recorded under capital leases1,511782729
Total other property and equipment1,598831767
Total property and equipment$4,364$2,828$1,536
(1) Current capital lease agreements are for equipment and generally have a term of 48 months with the equipment expected to be returned to the lessor at termination.

Components of depreciation and amortization. Depreciation and amortization was comprised of the following for the years ended December 31:

(In millions)201720162015
Internal-use software $298$303$288
Other property and equipment (1)153158160
Value of business acquired (reported in deferred policy acquisition costs)182018
Other intangibles (2)97129119
Total depreciation and amortization$566$610$585
(1) Other property and equipment includes amortization on assets recorded under capital leases of $14 million in 2017, $20 million in 2016 and $22 million in 2015.
(2) Includes the one-time $23 million bargain purchase gain on an acquisition in 2015.

The Company estimates annual pre-tax amortization for intangible assets, including internal-use software, over the next five calendar years to be as follows:

(In millions)Pre-tax Amortization
2018$387
2019$299
2020$177
2021$114
2022$88
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Leases and Rentals
 12 Months Ended
Dec. 31, 2017
Leases and Rentals [Abstract]  
Leases and Rentals

Note 18 – Leases and Rentals

Description of operating leases. The Company’s operating leases are primarily for office space and certain computer and other equipment. Some of these leases include renewal options and other incentives that are amortized over the life of the lease. Leases active in 2017 had terms ranging from one month to 18 years.

Rental expense and payments. For the years ended December 31, net rental expenses for operating leases were approximately:

(In millions)201720162015
Net rental expense for operating leases$162$151$165

As of December 31, 2017, future net minimum rental payments under non-cancelable operating leases were approximately $580 million, payable as follows:

(In millions)Operating Lease Payments
2018$130
2019$113
2020$94
2021$73
2022$58
2023 and thereafter$114

The Company also has capital lease arrangements. See Note 17 and Note 5 for further information on assets recorded under capital leases and the related obligations.
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Shareholders Equity and Dividend Restrictions
 12 Months Ended
Dec. 31, 2017
Shareholders Equity And Dividend Restrictions [Abstract]  
Stockholders' Equity And Dividend Restrictions

Note 19 – Shareholders’ Equity and Dividend Restrictions

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

(In billions)201720162015
Net income $2.5$2.0$2.1
Surplus$10.4$8.5$8.0

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

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

There were no permitted practices for the Company’s insurance subsidiaries that significantly differed from prescribed regulatory accounting practices.
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Income Taxes
 12 Months Ended
Dec. 31, 2017
Income Taxes [Abstract]  
Income Taxes

Note 20 – Income Taxes

U.S. Tax Reform Legislation

Major U.S. tax reform legislation was signed into law on December 22, 2017. The legislation is highlighted by a reduction in the corporate income tax rate from the current 35% to 21% effective January 1, 2018. The Company expects a significant decline in its effective tax rate beginning in 2018 as a result of the rate reduction. The remaining provisions of the law, most of which take effect on January 1, 2018, are not expected to have a material impact on the Company’s results of operations beginning in 2018.

The Company recorded additional tax expense of $232 million in 2017 resulting from this legislation, comprised of $144 million due to the revaluation of net deferred tax assets to reflect the reduction in the corporate tax rate and $88 million due to the assessment of U.S. taxes related to the Company’s accumulated unremitted foreign earnings. The legislation provides an election to pay these taxes over eight years, and we expect to adopt this election. Both the revaluation of deferred tax assets and liabilities and the taxes on accumulated unremitted foreign earnings are considered provisional as permitted under SAB 118 (see Note 2) because certain adjustments used to calculate the taxes at year-end were based on estimates.

Also as a result of tax reform, the Company recorded a reduction in operating expenses of $56 million ($36 million after-tax) reflecting a decrease in a liability to reimburse a reinsurer for taxes related to a block of business sold through reinsurance. An offsetting tax effect is included in the $144 million charge discussed above, resulting in no after-tax effect for this item.

Accounting policy. Deferred income tax assets and liabilities are recognized for differences between the financial and income tax reporting bases of the underlying assets and liabilities and established based upon enacted tax rates and laws, including the U.S. tax reform legislation enacted in December 2017. Deferred income tax assets are recognized when available evidence indicates that realization is more likely than not. The deferred income tax provision generally represents the net change in deferred income tax assets and liabilities during the year, excluding amounts reported as adjustments to accumulated other comprehensive income or amounts initially recorded due to business combinations. The current income tax provision generally represents estimated amounts due on various income tax returns for the year reported plus the effect of any uncertain tax positions. Uncertain tax positions are evaluated in accordance with GAAP.

Income taxes for the Company’s foreign operations are provided using the respective foreign jurisdictions’ tax rate.

The Company’s foreign operations continue to retain a significant portion of their earnings overseas. These undistributed earnings are deployed outside of the United States in support of the liquidity and capital needs of our foreign operations as well as to support growth initiatives overseas. The Company does not intend to repatriate these earnings.

  • Income Tax Expense

The components of income taxes for the years ended December 31 were as follows:

(In millions)201720162015
Current taxes
U.S. income taxes$974$935$1,076
Foreign income taxes1229593
State income taxes363260
Total current taxes1,1321,0621,229
Deferred taxes (benefits)
U.S. income taxes2046922
Foreign income taxes (benefits)399(6)
State income taxes (benefits)(1)(4)5
Total deferred taxes2427421
Total income taxes$1,374$1,136$1,250

Total income taxes for the years ended December 31 were different from the amount computed using the nominal federal income tax rate of 35% for the following reasons:

(In millions)201720162015
Tax expense at nominal rate$1,262$1,043$1,164
Effect of U.S. tax reform legislation232--
Effect of undistributed foreign earnings(70)(57)(67)
Health insurance industry tax-108109
State income tax (net of federal income tax benefit)231842
Other(73)242
Total income taxes$1,374$1,136$1,250

Consolidated pre-tax income from the Company’s foreign operations was approximately 14% of the Company’s pre-tax income in 2017. The comparable amount in prior years was 11% in 2016 and 2015. South Korean operations produced approximately 13% of the Company’s pre-tax income in 2017, 11% in 2016 and 8% in 2015.

The consolidated effective tax rate was 38.1% in both 2017 and 2016. The additional tax expense associated with the recently enacted U.S. tax reform legislation was offset by the favorable effects of the one-year moratorium on the non-deductible health insurance industry tax and recognizing an incremental tax benefit associated with transaction-related costs that is included in “Other” in the above table.

The Company retains a significant portion of its foreign earnings overseas. If the Company intended to remit these earnings it would have recorded additional deferred tax liabilities of approximately $120 million for foreign withholding taxes. A portion of these taxes may be eligible for credit against the Company’s U.S. tax liability.

  • Deferred Income Taxes

Deferred income tax assets and liabilities as of December 31 were as follows:

(In millions)20172016
Deferred tax assets
Employee and retiree benefit plans$279$481
Other insurance and contractholder liabilities352460
Net operating losses105128
Other accrued liabilities101166
Other 91140
Deferred tax assets before valuation allowance9281,375
Valuation allowance for deferred tax assets(72)(87)
Deferred tax assets, net of valuation allowance8561,288
Deferred tax liabilities
Depreciation and amortization496781
Unrealized appreciation on investments and foreign currency translation 102149
Other22554
Total deferred tax liabilities823984
Net deferred income tax assets$33$304

Deferred income tax balances as of December 31, 2017 have been adjusted to reflect the reduced statutory tax rate that took effect as of January 1, 2018 pursuant to the recently enacted U.S. tax reform legislation. The Company has recorded incremental tax expense of $144 million including the adjustment of deferred tax balances related to items reported in accumulated other comprehensive income.

Included in the consolidated net deferred tax asset of $33 million is approximately $175 million of deferred tax liabilities attributable to foreign jurisdictions, most notably South Korea and Taiwan.

Management believes that future results will be sufficient to realize the Company’s deferred tax assets. With the exception of certain net operating loss related tax benefits, the Company’s deferred tax benefits may be carried forward indefinitely. Net operating loss benefits are primarily attributable to foreign jurisdictions. The Company establishes a valuation allowance when it determines that realization of a deferred tax asset does not meet the more likely than not standard. Valuation allowances have been established against certain federal, foreign and state deferred tax assets, generally when there is a requirement to assess them on a separate entity basis.

C. Uncertain Tax Positions

A reconciliation of unrecognized tax benefits for the years ended December 31 was as follows:

(In millions)201720162015
Balance at January 1, $31$31$26
Increase due to current year positions7107
Reduction related to settlements with taxing authorities(1)(2)-
Reduction related to lapse of applicable statute of limitations(2)(8)(2)
Balance at December 31,$35$31$31

D. Other Tax Matters

The Internal Revenue Service has completed review of the Company’s consolidated income tax returns through 2012. The statute of limitations for 2013 has expired, but the Company has filed an amended return for which the pending refund is subject to review. The Company conducts business in a number of state and foreign jurisdictions, and may be engaged in multiple audit proceedings at any given time. Generally, no further state or foreign audit activity is expected for tax years prior to 2011.
v3.8.0.1
Contingencies and Other Matters
 12 Months Ended
Dec. 31, 2017
Contingencies And Other Matters [Abstract]  
Contingencies and Other Matters

Note 21 – Contingencies and Other Matters

The Company, through its subsidiaries, is contingently liable for various guarantees provided in the ordinary course of business.

  • Financial Guarantees: Retiree and Life Insurance Benefits

 

The Company guarantees that separate account assets will be sufficient to pay certain life insurance or retiree benefits.  The sponsoring employers are primarily responsible for ensuring that assets are sufficient to pay these benefits and are required to maintain assets that exceed a certain percentage of benefit obligations. If employers fail to do so, the Company or an affiliate of the buyer of the retirement benefits business (Prudential Retirement Insurance and Annuity Company or “Prudential”) has the right to redirect the management of the related assets to provide for benefit payments. As of December 31, 2017, employers maintained assets that exceeded the benefit obligations under these arrangements of approximately $470 million. Approximately 12% of these are reinsured by Prudential. The remaining guarantees are provided by the Company with minimal reinsurance from third parties. The Company establishes an additional liability if management believes that the Company will be required to make payment under the guarantees; there were no additional liabilities required for these guarantees as of December 31, 2017. Separate account assets supporting these guarantees are classified in Levels 1 and 2 of the GAAP fair value hierarchy (see Note 10).

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. Guaranteed Minimum Income Benefit Contracts

See Note 9 for discussion.

C. Certain Other Guarantees

The Company had indemnification obligations to a lender of approximately $90 million as of December 31, 2017, related to a borrowing by a certain real estate joint venture that the Company records as an investment. This borrowing (a nonrecourse obligation of the Company) is secured by the joint venture’s real estate property with a fair value in excess of the loan amount and matures in 2021. The Company’s indemnification obligation would require payment to the lender 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 this indemnification obligation. Any payment that might be required could be recovered through a refinancing or sale of the assets. The Company also has recourse to the partner for their proportionate share of amounts paid. There were no liabilities required for this indemnification obligation as of December 31, 2017

The Company had indemnification obligations as of December 31, 2017 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 December 31, 2017.

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.

On March 1, 2017, the Commonwealth Court of Pennsylvania entered an order of liquidation of Penn Treaty Network America Insurance Company, together with its subsidiary American Network Insurance Company (collectively “Penn Treaty”, a long-term care insurance carrier), triggering guaranty fund coverage and accrual of a liability. For the year ended December 31, 2017, the Company recorded in operating expenses approximately $130 million pre-tax (approximately $85 million after-tax), representing its estimate of the total assessments, net of premium tax offsets for insurance contracts currently written. Some of the assessments were recorded on a discounted basis, using a weighted average discount rate of 3.5%. As of December 31, 2017, the recorded liability was approximately $55 million and total future cash outflows as of December 31, 2017 are expected to approximate $65 million. This assessment is expected to be updated in future periods for changes in the estimate of the insolvency. In addition, a portion of this assessment is expected to be offset in the future by premium tax credits that will be recognized in the period received.

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 global health services business. Except for the specific matters noted below, 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 our current knowledge and taking into consideration current accruals. Disputed tax matters arising from audits by the Internal Revenue Service (“IRS”) or other state and foreign jurisdictions, including those resulting in litigation, are accounted for under GAAP guidance for uncertain tax positions. Further information on income tax matters can be found in Note 20.

Pending litigation and legal or regulatory matters that the Company has identified with a reasonably possible material loss are described below. When litigation and regulatory matters present loss contingencies that are both probable and estimable, the Company accrues the estimated loss by a charge to shareholders’ net income. The estimated loss is the Company’s best estimate of the probable loss at the time or an amount within a range of estimated losses reflecting the most likely outcome or the minimum amount of the range (if no amount is better than any other estimated amount in the range.) 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. Due to numerous uncertain factors presented in these cases, it is not possible to estimate an aggregate range of loss (if any) for these matters at this time. In light of the uncertainties involved in these matters, there is no assurance that their ultimate resolution will not exceed the amounts currently accrued by the Company. An adverse outcome in one or more of these matters could be material to the Company’s results of operations, financial condition or liquidity for any particular period. The Company had pre-tax reserves as of December 31, 2017 of $195 million ($155 million after-tax) for the matters discussed below under “Litigation Matters.” Litigation related to the Company’s claim processing practices for a commercial client, for which the Company held a reserve of $40 million pre-tax ($25 million after-tax) at September 30, 2016, was settled for that amount during the fourth quarter of 2016.

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.  From 2008 through 2015, 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. From that time through the present, both parties have disputed various aspects of the Court’s interpretation and the Court has attempted to clarify. On July 14, 2017, the Court issued a ruling clarifying certain aspects of the January 2016 order. The Plaintiffs filed a motion for reconsideration of the July 14, 2017 ruling that was denied by the Court on November 7, 2017. The Company’s reserve for this litigation is adequate at December 31, 2017, based on calculations consistent with the Company’s interpretation of the latest guidance from the Court. Due to the continuing inability of the parties to agree on the details of calculating the pension benefits, the final timing of the resolution of this matter remains uncertain. Once these issues are resolved, the Plan will be amended to comply with the District Court’s orders and the benefits will begin to be paid.

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 plaintiffs’ 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

Civil Investigative Demand. The U.S. Department of Justice (“DOJ”) is currently conducting an industry review of the risk adjustment data submission practices and business processes, including review of medical charts, of Medicare Advantage organizations under Medicare Parts C and D.  In connection with this industry review, in December 2016, the Company received a Civil Investigative Demand from the Civil Division of the DOJ.  We are in the process of voluntarily cooperating with the DOJ’s request and responding to the information request.

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. The agreement requires primarily: (1) enhanced procedures related to documentation and disposition and (2) a two-year monitoring period followed by a re-examination that began in the second quarter of 2016. Management believes the Company has addressed the requirements of the agreement. If the monitoring states find material non-compliance with the agreement upon re-examination, the Company may be subject to additional costs and penalties or requests to change its business practices that could negatively impact future earnings for this business.

Other Legal Matters

Litigation with Anthem. In February 2017, the Company delivered a notice to Anthem terminating the merger agreement, and notifying Anthem that it must pay the Company the $1.85 billion reverse termination fee pursuant to the terms of the merger agreement. Also in February 2017, the Company filed suit against Anthem in the Delaware Court of Chancery (the “Chancery Court”) seeking declaratory judgments that the Company’s termination of the merger agreement was valid and that Anthem was not permitted to extend the termination date. The complaint also sought payment of the reverse termination fee and additional damages in an amount exceeding $13 billion, including the lost premium value to the Company’s shareholders caused by Anthem’s willful breaches of the merger agreement.

Also in February 2017, Anthem filed a lawsuit in the Chancery Court against the Company seeking (i) a temporary restraining order to enjoin Cigna from terminating and taking any action contrary to the terms of the merger agreement, (ii) specific performance compelling Cigna to comply with the merger agreement and (iii) damages.

On February 15, 2017, the Chancery Court granted Anthem's motion for a temporary restraining order and temporarily enjoined the Company from terminating the merger agreement. In May 2017, the Chancery Court denied Anthem's motion for a preliminary injunction to enjoin Cigna from terminating the merger agreement but stayed its ruling pending Anthem's determination as to whether to seek an appeal. Anthem subsequently notified Cigna and the Chancery Court that it did not intend to appeal the Chancery Court's decision.  As a result, the merger agreement was terminated. 

The litigation between the parties remains pending. Trial is scheduled for 2019. We believe in the merits of our claims and dispute Anthem’s claims, and we intend to vigorously defend ourselves and pursue our claims. The outcomes of lawsuits are inherently unpredictable, and we may be unsuccessful in the ongoing litigation or any future claims or litigation.
v3.8.0.1
Segment Information
 12 Months Ended
Dec. 31, 2017
Segment Information [Abstract]  
Segment Information [Text Block]

Note 22 – Segment Information

See Note 1 for a description of our reporting segments.

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 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 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. In 2015, the amortization amount was net of a bargain purchase gain on an acquisition.
  • Special items, if any, are excluded because management believes they are not representative of the underlying results of operations. This is generally because the nature and size of these matters are not indicative of our ongoing business operations. Additional details about these items that provide further context as to why they are not considered indicative of ongoing business operations may be found in the footnotes referenced in the table below.

The following table presents the special items recorded by the Company for the years ended December 31, 2017, 2016 and 2015.

(In millions)
Description of Special Item and Financial Statement Line Item(s)After-taxBefore-tax
Year ended December 31, 2017
Charges associated with U.S. tax reform
- Other operating expenses (see Note 20 for details)$(36)$(56)
- Tax expense (see Note 20 for details)232-
Total charges associated with U.S. tax reform$196$(56)
Debt extinguishment costs (Other operating expenses, see Note 5 for details)$209$321
Long-term care guaranty fund assessment (Other operating expenses, see Note 21(D) for details)$83$129
Transaction-related costs (Other operating expenses, see Note 3 for details)$33$126
Year ended December 31, 2016
Transaction-related costs (Other operating expenses, see Note 3 for details)$147$166
Risk corridor allowance (Other operating expenses, see page ##EndofNotesPage in this Note for details)$80$124
Charges associated with litigation matters (Other operating expenses, see Note 21(E) for a discussion of litigation charges)$25$40
Year ended December 31, 2015
Debt extinguishment costs (Other operating expenses, see Note 5 for details)$65$100
Transaction-related costs (Other operating expenses, see Note 3 for details)$57$66

Summarized segment financial information for the years ended December 31, was as follows:

(In millions)Global Health CareGlobal Supplemental BenefitsGroup Disability and LifeOther OperationsCorporateTotal
2017
Premiums$24,538 $ 3,684 $ 3,985 $ 112 $ (12) $ 32,307
Fees and other revenues (1)4,7226610610(37)4,867
Net investment income378122350346301,226
Mail order pharmacy revenues2,979----2,979
Total operating revenues32,6173,8724,441468(19)41,379
Net realized investment gains (losses)1363274(5)-237
Total revenues32,7533,9044,515463(19)41,616
Depreciation and amortization477543014566
Total benefits and expenses29,4403,4074,04431680338,010
Income (loss) before income taxes3,313497471147(822)3,606
Income taxes (benefits) and net loss attributable to noncontrolling interests1,031195113222(192)1,369
Shareholders' net income (loss) by segment2,282302358(75)(630)2,237
After-tax adjustments to reconcile to adjusted income from operations
Net realized investment (gains) losses(88)(24)(49)41(156)
Amortization of other acquired intangible assets, net4818---66
Special items
U.S. tax reform(137)73(39)138161196
Debt extinguishment costs----209209
Long-term care guaranty fund assessment 68-15--83
Transaction-related costs----3333
Adjusted income (loss) from operations$2,173$369$285$67$(226)$2,668
(In millions)Global Health CareGlobal Supplemental BenefitsGroup Disability and LifeOther OperationsCorporateTotal
2016
Premiums$23,295$3,226$4,002$103$-$30,626
Fees and other revenues (1)4,623499811(21)4,760
Net investment income315110343358211,147
Mail order pharmacy revenues2,966----2,966
Total operating revenues31,1993,3854,443472-39,499
Net realized investment gains119(5)59(5)1169
Total revenues31,3183,3804,502467139,668
Depreciation and amortization526542811610
Total benefits and expenses28,4673,0524,27336952836,689
Income (loss) before taxes2,85132822998(527)2,979
Income taxes (benefits) and net loss attributable to noncontrolling interests1,100606530(143)1,112
Shareholders' net income (loss) by segment1,75126816468(384)1,867
After-tax adjustments to reconcile to adjusted income from operations
Net realized investment (gains)(78)6(39)2-(109)
Amortization of other acquired intangible assets, net7420---94
Special items
Transaction-related costs----147147
Risk corridor allowance80----80
Charges associated with litigation matters25----25
Adjusted income (loss) from operations$1,852 $ 294 $ 125 $ 70 $ (237) $ 2,104
(1) Includes the Company's share of the earnings of its joint ventures in China and India in the Global Supplemental Benefits segment.
(In millions)Global Health CareGlobal Supplemental BenefitsGroup Disability and LifeOther OperationsCorporateTotal
2015
Premiums$22,696$3,000$3,843$103$-$29,642
Fees and other revenues (1)4,357469113(19)4,488
Net investment income34010333736941,153
Mail order pharmacy revenues2,536----2,536
Total operating revenues29,9293,1494,271485(15)37,819
Net realized investment gains43-59-57
Total revenues29,9723,1494,276494(15)37,876
Depreciation and amortization526312611585
Total benefits and expenses27,0282,8493,79637450234,549
Income (loss) before taxes2,944300480120(517)3,327
Income taxes (benefits) and net income attributable to noncontrolling interests1,1503315240(142)1,233
Shareholders' net income (loss) by segment1,79426732880(375)2,094
After-tax adjustments to reconcile to adjusted income from operations
Net realized investment (gains)(30)(1)(4)(5)-(40)
Amortization of other acquired intangible assets, net (2)84(4)---80
Special items
Debt extinguishment costs----6565
Transaction-related costs----5757
Adjusted income (loss) from operations$1,848$262$324$75$(253)$2,256
(1) Includes the Company's share of the earnings of its joint ventures in China and India in the Global Supplemental Benefits segment.
(2) Includes a $23 million bargain purchase gain for a 2015 acquisition.

Revenue from external customers includes premiums, fees and other revenues and mail order pharmacy revenues. The following table presents these revenues by product type for the years ended December 31:

(In millions)201720162015
Global Health Care premiums by product:
Guaranteed cost$6,245$4,610$4,761
Experience-rated2,7412,3832,329
Stop loss3,4833,0822,701
International health care1,9341,8591,834
Dental1,7911,5861,392
Medicare5,5346,6216,142
Medicaid1,0611,1461,102
Medicare Part D7641,1221,589
Other985886846
Total premiums24,53823,29522,696
Fees4,5034,3684,107
Total Global Health Care premiums and fees29,04127,66326,803
Disability2,0912,0451,899
Life, Accident and Supplemental Health5,7045,3005,054
Mail order pharmacy 2,9792,9662,536
Other338378374
Total$40,153$38,352$36,666

Foreign and U.S. revenues from external customers for the three years ended December 31 are shown below. The Company’s foreign revenues are generated by its foreign operating entities. In the periods shown, no foreign country contributed more than 5% of consolidated revenues from external customers.

(In millions)201720162015
United States $ 36,128 $ 34,672 $ 33,185
South Korea1,8921,6661,521
All other foreign countries2,1332,0141,960
Total$40,153$38,352$36,666

The Company had net receivables from CMS of $0.5 billion as of December 31, 2017 and $0.6 billion as of December 31, 2016. These amounts were included in premiums, accounts and notes receivable and reinsurance recoverables. As a percentage of consolidated revenues, premiums and fees from CMS were 17% in 2017, 20% in 2016 and 21% in 2015. These amounts were reported in the Global Health Care segment.

In 2016, the Company recorded an allowance for the balance of its risk corridor receivable from CMS of $124 million based on court decisions and the large risk corridor program deficit. As of December 31, 2017, the Company continues to hold an allowance for the balance of its risk corridor receivable of $109 million based on the current status of court decisions. However, the Company continues to believe that the government has a binding obligation to satisfy the risk corridor receivable.
v3.8.0.1
Quarterly Financial Data
 12 Months Ended
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data

Quarterly Financial Data (unaudited)

The following unaudited quarterly financial data is presented on a consolidated basis for each of the years ended December 31, 2017 and December 31, 2016. Quarterly financial results necessarily rely heavily on estimates. This and certain other factors, such as the seasonal nature of portions of the insurance business, suggest the need to exercise caution in drawing specific conclusions from quarterly consolidated results.

(In millions, except per share amounts)Three Months Ended
March 31,June 30,September 30,December 31,
Consolidated Results
2017
Total revenues$10,385$10,318$10,382$10,531
Income before income taxes 8901,134824758
Shareholders' net income 598 (1)813 (1)560 (1)266 (1)
Shareholders' net income per share1
Basic2.343.202.251.09
Diluted2.303.152.211.07
2016
Total revenues$9,884$9,960$9,880$9,944
Income before income taxes 819813742605
Shareholders' net income519 (1)510 (1)456 (1)382 (1)
Shareholders' net income per share1
Basic2.042.001.791.49
Diluted2.001.971.761.47
Stock and dividend data
2017
Price range of common stock — high$154.83$173.21$188.36$212.46
— low$133.52$146.70$166.81$183.08
Dividends declared per common share$0.04$-$-$-
2016
Price range of common stock — high$147.93$142.91$148.99$142.00
— low$123.54$121.87$123.53$115.03
Dividends declared per common share$0.04$-$-$-
(1) Shareholders' net income includes the following after-tax charges (benefits), described in Note 22 to the Consolidated Financial Statements:
March 31,June 30,September 30,December 31,
2017 U.S. tax reform$-$-$-$196
2017 Debt extinguishment costs--209-
2017 Long-term care guaranty fund assessment83---
2017 Transaction-related costs49(47)625
Total 2017 charges (benefits)$132$(47)$215$221
2016 Risk corridor allowance$-$-$-$80
2016 Transaction-related costs36264639
2016 Charges associated with litigation matters--25-
Total 2016 charges$36$26$71$119
v3.8.0.1
Schedule I - Summary of Investments
 12 Months Ended
Dec. 31, 2017
Summary of Investments, Other than Investments in Related Parties [Abstract]  
Summary of Investments, Other than Investments in Related Parties

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE I

SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES

December 31, 2017

Amount at
which shown in
(in millions)Fair the Consolidated
Type of InvestmentCostValue Balance Sheet
Fixed maturities
Bonds
United States government and government
agencies and authorities $541$779$779
States, municipalities and political subdivisions 1,1961,2871,287
Foreign governments 2,3602,4872,487
Public utilities 2,1872,3422,342
All other corporate bonds 15,10715,73915,739
Mortgage and other asset-backed469497497
Redeemable preferred stocks 777
Total fixed maturities 21,86723,13823,138
Equity securities
Common stocks
Industrial, miscellaneous and all other 485496496
Non-redeemable preferred stocks 1049292
Total equity securities 589588588
Commercial mortgage loans on real estate 1,7611,761
Policy loans 1,4151,415
Other long-term investments 1,5181,518
Short-term investments 199199
Total investments $27,349$28,619
v3.8.0.1
Schedule II - Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Cigna Corporation (Registrant) [Abstract]  
Condensed Financial Information of Cigna Corporation (Registrant)

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

STATEMENTS OF INCOME

For the years ended
December 31,
(in millions)201720162015
Operating expenses
Interest $237$244$246
Intercompany interest 1832
Debt extinguishment costs321-100
Other 204281147
TOTAL OPERATING EXPENSES780528495
Loss before income taxes (780)(528)(495)
Income tax benefit (194)(146)(135)
Loss of parent company (586)(382)(360)
Equity in income of subsidiaries2,8232,2492,454
SHAREHOLDERS' NET INCOME 2,2371,8672,094
Shareholders' other comprehensive income (loss)
Net unrealized (depreciation) on securities(34)(56)(202)
Net unrealized (depreciation) appreciation on derivatives(3)(4)15
Net translation of foreign currencies304(95)(212)
Postretirement benefits liability adjustment332385
Shareholders' other comprehensive income (loss):300(132)(314)
SHAREHOLDERS' COMPREHENSIVE INCOME $2,537$1,735$1,780

See Notes to Financial Statements on the following pages.

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

BALANCE SHEETS

As of December 31,
(in millions)20172016
Assets
Cash and cash equivalents $9$18
Short-term investments6357
Investments in subsidiaries 22,65520,315
Intercompany receivable200173
Other assets 252415
TOTAL ASSETS $ 23,179 $ 20,978
Liabilities
Intercompany payable $ 2,980 $ 998
Short-term debt231257
Long-term debt 5,1124,658
Other liabilities 1,1211,342
TOTAL LIABILITIES9,4447,255
Shareholders' Equity
Common stock (shares issued, 296; authorized, 600)7474
Additional paid-in capital 2,9402,892
Accumulated other comprehensive loss(1,082)(1,382)
Retained earnings 15,82413,855
Less treasury stock, at cost (4,021)(1,716)
TOTAL SHAREHOLDERS' EQUITY13,73513,723
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 23,179 $ 20,978

See Notes to Financial Statements on the following pages.

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

STATEMENTS OF CASH FLOWS

For the years ended
December 31,
(in millions)201720162015
Cash Flows from Operating Activities
Shareholders' net income $2,237$1,867$2,094
Adjustments to reconcile shareholders' net income
to net cash provided by operating activities
Equity in income of subsidiaries (2,823)(2,249)(2,454)
Dividends received from subsidiaries 758580880
Other liabilities (224)(9)112
Debt extinguishment costs321-100
Other, net (1)333187112
NET CASH PROVIDED BY OPERATING ACTIVITIES (1)602376844
Cash Flows from Investing Activities
Short-term investment purchased, net(6)(3)(54)
Other, net (11)(8)(14)
NET CASH (USED IN) INVESTING ACTIVITIES(17)(11)(68)
Cash Flows from Financing Activities
Net change in amounts due to (from) affiliates 1,955(78)(161)
Net change in short-term debt100(100)-
Payments for debt extinguishment (313)-(87)
Repayment of long-term debt (1,250)-(851)
Net proceeds on issuance of long-term debt 1,581-894
Issuance of common stock 13136154
Common dividends paid (10)(10)(10)
Repurchase of common stock (2,725)(139)(671)
Tax withholding on stock compensation (1)(61)(72)(79)
Other(2)--
NET CASH (USED IN) FINANCING ACTIVITIES (1)(594)(363)(811)
Net (decrease) increase in cash and cash equivalents (9)2(35)
Cash and cash equivalents, beginning of year 181651
Cash and cash equivalents, end of year $9$18$16
(1) As required in adopting Accounting Standard Update ("ASU") 2016-09, the Company retrospectively reclassified $79 million cash payments from operating to financing activities in 2015. These payments were related to employee tax obligations associated with stock compensation. The comparable amounts reported in financing activities were $61 million in 2017 and $72 million in 2016.

See Notes to Financial Statements on the following pages.

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE II

CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION

(REGISTRANT)

NOTES TO CONDENSED FINANCIAL STATEMENTS

The accompanying condensed financial statements should be read in conjunction with the Consolidated Financial Statements and the accompanying notes thereto contained in this Annual Report on Form 10-K (“Form 10-K”).

Note 1 — For purposes of these condensed financial statements, Cigna Corporation’s (the “Company”) wholly-owned and majority-owned subsidiaries are recorded using the equity basis of accounting.

Note 2 — See Note 5 – Debt included in Part II, Item 8 of this Form 10-K for a description of the short-term and long-term debt obligations of Cigna Corporation and its subsidiaries. All debt is a direct obligation of Cigna Corporation, except for $78 million of 6.37% Notes due 2021 and $18 million of capital leases.

Note 3 — Intercompany liabilities consist primarily of payables to Cigna Holdings, Inc. of $2.8 billion as of December 31, 2017 and $0.7 billion as of December 31, 2016. Interest was accrued at an average monthly rate of 1.47% for 2017 and 0.93% for 2016

Note 4 — The Company had guarantees of approximately $235 million as of December 31, 2017. These guarantees are primarily to secure payment obligations or solvency requirements of certain wholly-owned subsidiaries. In 2017, no payments have been made on these guarantees.

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Schedule III - Supplementary Insurance Information
 12 Months Ended
Dec. 31, 2017
Supplementary Insurance Information [Abstract]  
Supplementary Insurance Information

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE III

SUPPLEMENTARY INSURANCE INFORMATION

DeferredFuture policyMedical costs
policybenefits andpayable and
(in millions)acquisitioncontractholderunpaidUnearned
Segmentcostsdeposit fundsclaims(1)premiums
Year Ended December 31, 2017
Global Health Care $15$157$2,719$213
Global Supplemental Benefits 2,1763,746484490
Group Disability and Life 11,6864,4917
Other Operations 4512,64719314
Corporate ----
Total $2,237$18,236$7,887$724
Year Ended December 31, 2016
Global Health Care $16$161$2,532$170
Global Supplemental Benefits 1,7523,225384435
Group Disability and Life 11,7864,34213
Other Operations 4912,93419116
Corporate ----
Total $1,818$18,106$7,449$634
Year Ended December 31, 2015
Global Health Care $11$169$2,355$145
Global Supplemental Benefits 1,5933,006353453
Group Disability and Life 11,7144,00613
Other Operations 5413,03321518
Corporate ----
Total $1,659$17,922$6,929$629
(1) Unpaid claims balances reported in Corporate in 2015 have been retrospectively reclassified to the Group Disability and Life segment to conform to the presentation of unpaid claim balances in Note 8 to the Consolidated Financial Statements. These amounts represent elimination entries.

Amortization
of deferred
NetpolicyOther
investmentBenefit acquisitionoperating
SegmentPremiums(2)income(3)expenses(2)(4)expensesexpenses(5)
Year Ended December 31, 2017
Global Health Care $24,538$378$19,967$56$9,417
Global Supplemental Benefits3,6841222,0332591,115
Group Disability and Life 3,9853503,0761967
Other Operations 1123463426(32)
Corporate (12)30(12)-815
Total $32,307$1,226$25,406$322$12,282
Year Ended December 31, 2016
Global Health Care $23,295$315$19,009$47$9,411
Global Supplemental Benefits3,2261101,7842381,030
Group Disability and Life 4,0023433,3541918
Other Operations 103358339624
Corporate -21--528
Total $30,626$1,147$24,486$292$11,911
Year Ended December 31, 2015
Global Health Care $22,696$340$18,354$53$8,621
Global Supplemental Benefits3,0001031,659227963
Group Disability and Life 3,8433372,9341861
Other Operations 103369343526
Corporate -4--502
Total $29,642$1,153$23,290$286$10,973

  • Amounts presented are shown net of the effects of reinsurance. See Note 9 to the Consolidated Financial Statements included in this Form 10-K. Premiums in the Corporate segment represent the elimination of intercompany transactions.
  • The allocation of net investment income is based upon the identification of certain portfolios with specific segments, the mean reserve method, or a combination of both.
  • Benefit expenses include Global Health Care medical costs and other benefit expenses.
  • Other operating expenses includes mail order pharmacy costs, other operating expenses, and net amortization of other intangible assets. It excludes amortization of deferred policy acquisition expenses. In 2017, other operating expenses in the Other Operations segment includes a reduction of $56 million related to U.S. tax reform. See Note 20 to the Consolidated Financial Statements included in this Form 10-K.
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Schedule IV - Reinsurance
 12 Months Ended
Dec. 31, 2017
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract]  
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Text Block]

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE IV

REINSURANCE

Percentage
Ceded toAssumedof amount
Grossotherfrom otherNetassumed
(in millions)amountcompaniescompaniesamountto net
Year Ended December 31, 2017
Life insurance in force$1,105,323$49,172$2,478$1,058,6290.2%
Premiums
Life insurance and annuities$2,307$233$22$2,0961.0%
Accident and health insurance30,09519130730,2111.0%
Total$32,402$424$329$32,3071.0%
Year Ended December 31, 2016
Life insurance in force$1,047,002$55,399$2,827$994,4300.3%
Premiums
Life insurance and annuities$2,881$310$22$2,5930.8%
Accident and health insurance27,87420336228,0331.3%
Total$30,755$513$384$30,6261.3%
Year Ended December 31, 2015
Life insurance in force$1,047,982$72,208$3,273$979,0470.3%
Premiums
Life insurance and annuities$2,886$335$106$2,6574.0%
Accident and health insurance26,92623529426,9851.1%
Total$29,812$570$400$29,6421.3%
v3.8.0.1
Schedule V - Valuation and Qualifying Accounts and Reserves
 12 Months Ended
Dec. 31, 2017
Valuation and Qualifying Accounts and Reserves [Abstract]  
Valuation and Qualifying Accounts and Reserves

CIGNA CORPORATION AND SUBSIDIARIES

SCHEDULE V

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

ChargedCharged
Balance at(Credited) to(Credited)Balance at
(in millions)beginningcosts andto otherOther end
Descriptionof yearexpenses (1)accountsdeductions (2)of year
2017
Investment asset valuation reserves
Commercial mortgage loans $5$1$-$(6)$-
Allowance for doubtful accounts
Premiums, accounts and notes receivable$200$19$(11)$(1)$207
Deferred tax asset valuation allowance $87$11$(26)$-$72
Reinsurance recoverables $3$-$-$-$3
2016
Investment asset valuation reserves
Commercial mortgage loans $15$-$-$(10)$5
Allowance for doubtful accounts
Premiums, accounts and notes receivable$75$134$(8)$(1)$200
Deferred tax asset valuation allowance $71$21$(5)$-$87
Reinsurance recoverables $3$-$-$-$3
2015
Investment asset valuation reserves
Commercial mortgage loans $12$7$-$(4)$15
Allowance for doubtful accounts
Premiums, accounts and notes receivable$101$(10)$(15)$(1)$75
Deferred tax asset valuation allowance $49$8$14$-$71
Reinsurance recoverables $4$-$(1)$-$3
(1) Amounts for 2017 and 2016 include risk corridor allowance. See Note 22 to the Consolidated Financial Statements for additional information.
(2) Amounts for commercial mortgage loans primarily reflect charge-offs upon sales and repayments, as well as transfers to foreclosed real estate.
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Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

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.

Recent Accounting Changes
Accounting Standard and Adoption DateEffects of Adopting New Guidance
GUIDANCE ADOPTED IN 2017
Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 118 ("SAB 118"), adopted December 31, 2017Guidance:
•Allows a company to recognize the effects of U.S. tax reform as provisional in its 2017 financial statements when it does not have the necessary information in reasonable detail to complete its accounting for the change in tax law.
•Establishes a maximum one-year measurement period that ends when a company has obtained the information necessary to finalize its accounting. During the measurement period, adjustments for the effects of the law will be recorded to the extent a reasonable estimate for all or a portion of the effects of the law can be made.
Effects of adoption:
•The Company has reported reasonable estimates of the income tax effects of U.S. tax reform as provisional in its financial statements.
•See Note 20 for disclosures about the impact of U.S. tax reform on the Company's financial statements.

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED JANUARY 1, 2018
Revenue from Contracts with Customers (Accounting Standards Update ("ASU") 2014-09 and related amendments)Required as of January 1, 2018Requires:
•Companies to estimate and allocate the expected customer contract revenues among distinct goods or services based on relative standalone selling prices
•Revenues to be recognized as goods or services are delivered
•New disclosures including presenting relevant categories of revenues and information about related contract assets and liabilities
•Adoption through retrospective restatement with or without using certain practical expedients or adoption with a cumulative effect adjustment
Expected effects:
•Guidance applies to the Company’s administrative service, mail order pharmacy and other non-insurance contracts, but does not apply to certain contracts within the scope of other GAAP, such as the Company's insurance and investment contracts accounted for under the Financial Accounting Standards Board's Accounting Standards Codification ("ASC") 944.
•The Company has completed its evaluation of the new requirements and the adoption of the new guidance will not have a material impact to its pattern of revenue recognition or net income.
•The Company will adopt the new guidance through retrospective restatement and is currently working to develop required disclosures and restate historical periods in line with its chosen method of adoption. The Company does not anticipate significant changes to its systems, processes or controls.
• The Company's cumulative effect of implementing this guidance will result in an immaterial decrease to the opening balance of retained earnings from establishing a contract liability for service fee revenue that must be recognized when services are provided after the termination of certain administrative service contracts.
•The Company also will reclassify certain fees as a result of clarifications in the new guidance and its related interpretations.
Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01)Required as of January 1, 2018Requires:
•Entities to measure equity investments at fair value in net income if they are neither consolidated nor accounted for under the equity method
•Cumulative effect adjustment to the beginning balance of retained earnings at adoption
Expected effects:
•Certain limited partnership interests carried at cost of approximately $200 million as of December 31, 2017 will be reported at fair value at adoption with future changes in fair value reported in net investment income.
•Changes in fair value for equity securities previously reported in accumulated other comprehensive income will now be reported in net realized investment gains.
•Retained earnings will increase by approximately $60 million after-tax on January 1, 2018.

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED JANUARY 1, 2018
Intra-Entity Asset Transfers of Assets Other than Inventory (ASU 2016-16)Required as of January 1, 2018Requires:
•Entities to recognize the tax impacts of all intra-entity sales of assets other than inventory even though the pre-tax effects of those transactions are eliminated in consolidation
•Modified retrospective approach for adoption with a cumulative-effect adjustment recorded in retained earnings
Expected effects: the adoption of this standard will not have a material effect on the Company’s financial statements.
Clarifying the Definition of a Business (ASU 2017-01)Required as of January 1, 2018Guidance:
•Revises the definition of a business and provides a more robust framework for entities to use in determining when a set of assets and activities is a business.
•Requires entities to apply this new definition to business transactions beginning in the first quarter of 2018.
Expected effects: the Company does not expect this change in definition will have a material impact on its financial statements.
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07)Required as of January 1, 2018Requires:
•Employers to separate the service cost component from the other components of net benefit cost
•Only service cost is eligible for capitalization (as either deferred policy acquisition costs or capitalized software), to be applied prospectively upon adoption
•Income statement captions used for each component of net benefit cost to be disclosed
Expected effects: the Company does not expect the effect of this new guidance to be material to results of operations because its most significant plans are frozen. See Note 15 for additional information.
GUIDANCE TO BE EARLY ADOPTED JANUARY 1, 2018
Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12)Required as of January 1, 2019, with early adoption permitted in 2017Guidance:
•Relaxes requirements for financial and nonfinancial hedging strategies to be eligible for hedge accounting and changes how companies assess effectiveness.
•Amends presentation and disclosure requirements to improve transparency about the uses and results of hedging programs.
Expected effects: the Company is planning to adopt this guidance on January 1, 2018 with an immaterial impact to its financial statements for existing hedges.

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED AFTER 2018 OR ADOPTION DATE HAS NOT BEEN DETERMINED
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02)Effective as of January 1, 2019 with early adoption permitted for reporting periods for which financials have not been issued.Guidance:
•Allows companies to reclassify tax effects stranded in accumulated other comprehensive income as a result of U.S. tax reform to retained earnings.
•Requires additional disclosures of the company's accounting policy for releasing income tax effects from accumulated other comprehensive income.
•Allows companies to apply the guidance retrospectively or in the period of adoption.
Effects of adoption:
•The Company is evaluating this new standard and its expected timing of adoption.
•If adopted as of December 31, 2017, approximately $230 million of accumulated other comprehensive income would have been reclassified to retained earnings.
Leases (ASU 2016-02)Required as of January 1, 2019 Requires:
•Balance sheet recognition of assets and liabilities arising from leases, including leases embedded in other contracts
•Additional disclosures of the amount, timing and uncertainty of cash flows from leases will be required
•Modified retrospective approach for leases in effect as of and after the date of adoption with a cumulative-effect adjustment recorded in retained earnings
Expected effects:
•The Company is continuing to evaluate the impact this standard will have on its financial statements.
•While not yet quantified, the Company expects a material impact to the Consolidated Balance Sheets from recognizing additional assets and liabilities of operating leases upon adoption. The actual increase in assets and liabilities will depend on the volume and terms of leases in place at the time of adoption.
•The Company is implementing a new lease system in connection with the adoption.
Measurement of Credit Losses on Financial Instruments (ASU 2016-13)Required as of January 1, 2020, with early adoption permitted as of January 1, 2019Requires:
•A new approach using expected credit losses to estimate and recognize credit losses for certain financial instruments such as mortgage loans, reinsurance recoverables and other receivables
•Changes in the criteria for impairment of available-for-sale debt securities
•Adoption using a modified retrospective approach with a cumulative-effect adjustment recorded in retained earnings
Expected effects:
•The Company is evaluating this new standard, its expected timing of adoption and effects on its financial statements and disclosures.
•An additional allowance for future expected credit losses for certain financial instruments may be required at adoption.
Simplifying the Test for Goodwill Impairment (ASU 2017-04)Required as of January 1, 2020, with early adoption permitted as of January 1, 2017Guidance:
•Simplifies the accounting for goodwill impairment by eliminating the need to determine the fair value of individual assets and liabilities of a reporting unit to measure a goodwill impairment.
•Redefines the amount of goodwill impairment to be equal to the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the total amount of goodwill of the reporting unit.
•Requires prospective adoption.
Expected effects: the Company is evaluating this new standard and its expected timing of adoption.
Investments - Policy Loans

A. Investments – Policy Loans

Policy loans are carried at unpaid principal balances plus accumulated interest, the total of which approximates fair value. These loans are collateralized by life insurance policy cash values and therefore have minimal exposure to credit loss. Interest rates are reset annually based on a rolling average of benchmark interest rates.
Cash and Cash Equivalents

B. Cash and Cash Equivalents

Cash and cash equivalents are carried at cost that approximates fair value. Cash equivalents consist of short-term investments with maturities of three months or less from the time of purchase. The Company reclassifies cash overdraft positions to accounts payable, accrued expenses and other liabilities when the legal right of offset does not exist.
Premiums, Accounts and Notes Receivable and Reinsurance Recoverables

C. Premiums, Accounts and Notes Receivable and Reinsurance Recoverables

Premiums, accounts and notes receivable and reinsurance recoverables are reported net of allowances for doubtful accounts and unrecoverable reinsurance of $210 million as of December 31, 2017 and $ 203 million as of December 31, 2016. The Company estimates these allowances for doubtful accounts and unrecoverable reinsurance using management’s best estimates of collectability, taking into consideration the age of the outstanding amounts, historical collection patterns and other economic factors. See Note 22 for additional discussion of the allowance established in 2016 for the risk corridor receivable.
Deferred Policy Acquisition Costs

D. Deferred Policy Acquisition Costs

Costs eligible for deferral include incremental, direct costs of acquiring new or renewal insurance and investment contracts and other costs directly related to successful contract acquisition. Examples of deferrable costs include commissions, sales compensation and benefits, policy issuance and underwriting costs and premium taxes. The Company records acquisition costs differently depending on the product line. Acquisition costs for:

  • Supplemental health, life and accident insurance products (primarily individual products) that comprise the majority of the Company’s deferred policy acquisition costs and group health and accident insurance products are deferred and amortized, generally in proportion to the ratio of periodic revenue to the estimated total revenues over the contract periods.
  • Universal life products are deferred and amortized in proportion to the present value of total estimated gross profits over the expected lives of the contracts.
  • Other products are expensed as incurred.

Deferred policy acquisition costs also include the value of business acquired for certain acquisitions with material long-duration insurance contracts. The Company recorded amortization of deferred policy acquisition costs of $322 million in 2017, $292 million in 2016 and $286 million in 2015 primarily in other operating expenses.

Each year, deferred policy acquisition costs are tested for recoverability. For universal life and other individual products, management estimates the present value of future revenues less expected payments. For group health and accident insurance products, management estimates the sum of unearned premiums and anticipated net investment income less future expected claims and related costs. If management’s estimates of these sums are less than the deferred costs, the Company reduces deferred policy acquisition costs and records an additional expense.
Other Assets, including Other Intangibles

E. Other Assets, including Other Intangibles

Other assets, including other intangibles consist primarily of GMIB assets, accrued net investment income, other intangible assets and various other insurance-related assets. See Note 9 for the Company’s accounting policy for GMIB assets and see Note 17 for the Company’s accounting policy for other intangibles. Additionally, these other assets include the carrying value of our equity-method investments in joint ventures in China, India (as of 2017) and other foreign jurisdictions.
Contractholder Deposit Funds

F. Contractholder Deposit Funds

Liabilities for contractholder deposit funds primarily include deposits received from customers for investment-related and universal life products and investment earnings on their fund balances. These liabilities are adjusted to reflect administrative charges and, for universal life fund balances, mortality charges. In addition, this caption includes: 1) premium stabilization reserves under group insurance contracts representing experience refunds left with the Company to pay future premiums; 2) deposit administration funds used to fund non-pension retiree insurance programs; 3) retained asset accounts; and 4) annuities or supplementary contracts without significant life contingencies. Interest credited on these funds is accrued ratably over the contract period.

Future Policy Benefits

G. Future Policy Benefits

Future policy benefits represent the present value of estimated future obligations under long-term life and supplemental health insurance policies and annuity products currently in force. These obligations are estimated using actuarial methods and consist primarily of reserves for annuity contracts, life insurance benefits, GMDB contracts (see Note 9 for additional information) and certain health, life and accident insurance products of our Global Supplemental Benefits segment.

Obligations for annuities represent specified periodic benefits to be paid to an individual or groups of individuals over their remaining lives. Obligations for life insurance policies and GMDB contracts represent benefits expected to be paid to policyholders, net of future premiums expected to be received. Management estimates these obligations based on assumptions as to premiums, interest rates, mortality or morbidity, future claim adjudication expenses and surrenders, allowing for adverse deviation as appropriate. Mortality, morbidity and surrender assumptions are based on the Company’s own experience and published actuarial tables. Interest rate assumptions are based on management’s judgment considering the Company’s experience and future expectations, and range from 0.1% to 9%. Obligations for the run-off settlement annuity business include adjustments for realized and unrealized investment returns consistent with GAAP when a premium deficiency exists.

Redeemable Noncontrolling Interests

H. Redeemable Noncontrolling Interests

Products and services are offered in Turkey and India through joint venture entities. The Company is the principal equity holder and primary beneficiary of the Turkey joint venture and accordingly, this entity is consolidated. In 2017, Cigna modified the agreement governing its joint venture in India due to changes in the local regulatory environment that require control by a local partner. As a result of the changes in the joint venture agreement, the Company determined that it is no longer the primary beneficiary of the joint venture and, effective with the third quarter of 2017, no longer consolidates its results.

As of December 31, 2017 the redeemable noncontrolling interests on our Consolidated Balance Sheets represent the Turkey joint venture partner’s preferred and common stock interests in the entity. Our joint venture partner may, at their election, require the Company to purchase their redeemable noncontrolling interests. We also have the right to require our joint venture partner to sell their redeemable noncontrolling interests to us. The redeemable noncontrolling interests were recorded at fair value as of the dates of purchase.  When the estimated redemption value for a redeemable noncontrolling interest exceeds its carrying value, an adjustment to increase the redeemable noncontrolling interest is recorded with an offsetting reduction to additional paid-in capital. When an adjustment is made to the carrying value of the redeemable noncontrolling interest, the calculation of shareholders’ net income per share will be adjusted if the redemption value exceeds the greater of the carrying value or fair value.

Accounts Payable, Accrued Expenses and Other Liabilities

I. Accounts Payable, Accrued Expenses and Other Liabilities

Accounts payable, accrued expenses and other liabilities include liabilities for pension, other postretirement and postemployment benefits (see Note 15), GMIB contract liabilities (see Note 9), self-insured exposures, management compensation, cash overdraft positions and various insurance-related liabilities, including experience-rated refunds, reinsurance contracts and the risk adjustment and minimum medical loss ratio rebate accruals under The Patient Protection and Affordable Care Act (the “ACA”). Legal costs to defend the Company’s litigation and arbitration matters are expensed when incurred in cases where the Company cannot reasonably estimate the ultimate cost to defend. In cases where the Company can reasonably estimate the cost to defend, a liability for these costs is accrued when the claim is reported.
Translation of Foreign Currencies

J. Translation of Foreign Currencies

The Company generally conducts its international business through foreign operating entities that maintain assets and liabilities in local currencies that are generally their functional currencies. The Company uses exchange rates as of the balance sheet date to translate assets and liabilities into U.S. dollars. Translation gains or losses on functional currencies, net of applicable taxes, are recorded in accumulated other comprehensive income (loss). The Company uses average monthly exchange rates during the year to translate revenues and expenses into U.S. dollars.

Premiums and Related Expenses

K. Premiums and Related Expenses

Premiums for group life, accident and health insurance and managed care coverages are recognized as revenue on a pro rata basis over the contract period. Benefits and expenses are recognized when incurred and, for our Global Health Care insured business, medical costs are presented net of pharmaceutical manufacturer rebates. For experience-rated contracts, premium revenue includes an adjustment for experience-rated refunds based on contract terms and calculated using the customer’s experience (including estimates of incurred but not reported claims).

Premium revenue also includes an adjustment to reflect the estimated effect of rebates due to customers under the commercial minimum medical loss ratio provisions of the ACA. These rebates are settled in the year following the policy year.

Premiums received for the Company’s Medicare Advantage Plans and Medicare Part D products from the Centers for Medicare and Medicaid Services (“CMS”) and customers are recognized as revenue ratably over the contract period. CMS provides risk-adjusted premium payments for Medicare Advantage Plans and Medicare Part D products based on the demographics and wellness of enrollees. The Company recognizes periodic changes to risk-adjusted premiums as revenue when the amounts are determinable and collection is reasonably assured. Additionally, Medicare Part D premiums include payments from CMS for risk sharing adjustments. The risk sharing adjustments are estimated quarterly based on claim experience by comparing actual incurred drug benefit costs to estimated costs submitted in original contracts. These adjustments may result in more or less revenue from CMS. Final revenue adjustments are determined and settled with CMS in the year following the contract year. Premium revenue also includes an adjustment to reflect the estimated effect of rebates due to CMS under the Medicare Advantage and Medicare Part D minimum medical loss ratio provisions of the ACA.

The ACA prescribed three programs to mitigate the risk for participating health insurance companies selling coverage on the public exchanges: risk adjustment, reinsurance and risk corridor. The reinsurance and risk corridor programs expired at the end of 2016, while the permanent risk adjustment program continues. A summary of these programs and the Company’s accounting policy is provided below.

  • The risk adjustment program reallocates funds from insurers with lower risk populations to insurers with higher risk populations based on the relative risk scores of participants in non-grandfathered plans in the individual and small group markets, both on and off the exchanges. We estimate our receivable or payable based on the risk of our members compared to the risk of other members in the same state and market, considering data obtained from industry studies and the United States Department of Health and Human Services (“HHS”). Receivables or payables are recorded as adjustments to premium revenue based on our year-to-date experience when the amounts are reasonably estimable and collection is reasonably assured. Final revenue adjustments are determined by HHS in the year following the policy year.

  • The reinsurance program (discontinued as of December 31, 2016) was designed to provide reimbursement to insurers for high cost individual business sold on or off the public exchanges. Reinsurance contributions associated with non-grandfathered individual plans were reported as reductions in premium revenues, and estimated reinsurance recoveries were established with offsetting reductions in Global Health Care medical costs. Reinsurance fee contributions for other insured business were reported in other operating expenses.

  • The risk corridor program (also discontinued as of December 31, 2016) was designed to limit insurer gains and losses by comparing allowable medical costs to a target amount as defined by HHS. The Company recorded receivables or payables as adjustments to premium revenue based on year-to-date experience when the amounts were reasonably estimable and collection was reasonably assured. In 2016, the Company also recorded an allowance against these risk corridor receivables that is discussed further in Note 22.

Premiums for individual life, accident and supplemental health insurance and annuity products, excluding universal life and investment-related products, are recognized as revenue when due. Benefits and expenses are matched with premiums.

Revenue for universal life products is recognized as follows:

  • Investment income on assets supporting universal life products is recognized in net investment income as earned.
  • Charges for mortality, administration and policy surrender are recognized in premiums as earned. Administrative fees are considered earned when services are provided.

Benefits and expenses for universal life products consist of benefit claims in excess of policyholder account balances and income earned by policyholders. Expenses are recognized when claims are incurred, and income is credited to policyholders in accordance with contract provisions.

The unrecognized portion of premiums received is recorded as unearned premiums.
Fees, Related Expenses and Mail Order Revenue and Costs

L. Fees, Related Expenses and Mail Order Pharmacy Revenues and Costs

Contract fees for administrative services only (“ASO”) programs and pharmacy programs and services are recognized in fees and other revenues as services are provided, net of estimated pharmaceutical manufacturer rebates payable to ASO clients using our network of retail pharmacies and estimated refunds under performance guarantees. Expenses associated with these programs and services are recognized in other operating expenses as incurred, net of estimated pharmaceutical rebates from manufacturers for prescriptions filled through our network of retail pharmacies.

In some cases, the Company provides performance guarantees associated with meeting certain service standards, clinical outcomes or financial metrics. If these service standards, clinical outcomes or financial metrics are not met, the Company may be financially at risk up to a stated percentage of the contracted fees or a stated dollar amount. The Company defers revenues for estimated payouts associated with these performance guarantees. Approximately 11% of ASO fees reported for the year ended December 31, 2017 were at risk under performance guarantees, with reimbursements estimated to be less than 1% of revenues.

Revenues for investment-related products are recognized as follows:

  • Investment income on assets supporting investment-related products is recognized in net investment income as earned.
  • Contract fees based upon related administrative expenses are recognized in fees and other revenues as they are earned ratably over the contract period.

Benefits and expenses for investment-related products consist primarily of income credited to policyholders in accordance with contract provisions.

Mail order pharmacy revenues and the cost of prescriptions are recognized as each prescription is shipped. Mail order pharmacy revenues are presented net of estimated pharmaceutical manufacturer rebates payable to ASO clients using our mail order business. Mail order pharmacy costs include the cost of prescriptions sold and other costs to operate this business including supplies, shipping and handling, net of estimated pharmaceutical rebates from manufacturers for prescriptions filled through our mail order business.
Earnings Per Share

Accounting policy. The Company computes basic earnings per share using the weighted-average number of unrestricted common and deferred shares outstanding. Diluted earnings per share also includes the dilutive effect of outstanding employee stock options and restricted stock using the treasury stock method and the effect of strategic performance shares.

Reinsurance

Reinsurance does not relieve the originating insurer of liability.  Therefore, reinsured liabilities must continue to be reported along with the related reinsurance recoverables.

GMDB is accounted for as reinsurance and GMIB assets and liabilities are reported as derivatives at fair value as discussed below. GMIB assets are reported in other assets, including intangibles, and GMIB liabilities are reported in accounts payable, accrued expenses and other liabilities.
Fair Value Measurements

Assumptions used in fair value measurement. GMIB assets and liabilities are established using capital market assumptions (including market returns, interest rates and market volatilities of the underlying equity and bond mutual fund investments) and assumptions related to future annuitant behavior (including mortality, lapse, and annuity election rates). As assumptions related to future annuitant behavior are largely unobservable, the Company classifies GMIB assets and liabilities in Level 3 in the fair value hierarchy presented in Note 10.

The only assumption expected to impact future shareholders’ net income is non-performance risk. The non-performance risk adjustment reflects a market participant’s view of nonpayment risk by adding an additional spread to the discount rate in the calculation of both (a) the GMIB liabilities to be paid by the Company, and (b) the GMIB assets to be paid by the reinsurers, after considering collateral.

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 of the Company, or significant increases in assumed annuity election rates or spreads used to calculate the non-performance risk of the reinsurers, would result in higher fair value measurements. A change in one of these assumptions is not necessarily accompanied by a change in another assumption.

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 only 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 for assigning the appropriate level within the fair value hierarchy, based on the significance of unobservable inputs. The Company reviews methodologies, processes and controls of third-party pricing services and compares prices on a test basis to those obtained from other external pricing sources or internal estimates. The Company performs ongoing analyses of both prices received from third-party pricing services and those developed internally to determine that they represent appropriate estimates of fair value. The controls executed by the Company include evaluating changes in prices and monitoring for potentially stale valuations. The Company also performs sample testing of sales values to confirm the accuracy of prior fair value estimates. The minimal exceptions identified during these processes indicate that adjustments to prices are infrequent and do not significantly impact valuations. 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 for a sample of securities held across various asset types to validate the documented pricing process.

Level 1 Financial Assets

Inputs for instruments classified in Level 1 include unadjusted quoted prices for identical assets in active markets accessible at the measurement date.  Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets.

Assets in Level 1 include actively-traded U.S. government bonds and exchange-listed equity securities. 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 94% 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 December 31, 2017 or 2016.  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 12.

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 3% of fixed maturities and equity securities are priced using significant unobservable inputs and classified in this category.

Fair values of mortgage and other asset-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 mortgage and other asset-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.

Mortgage and other asset-backed securities. The significant unobservable inputs used to value the following mortgage and other asset-backed securities are liquidity and weighting of credit spreads. 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.

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.

Private equity securities. The significant unobservable input used to value the following private 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.

Hybrid equity securities. The significant unobservable input used to value the following hybrid equity securities is an adjustment for liquidity due to limited trading activity. These cumulative preferred shares are deemed likely to exercise certain call options and the Company estimates an adjustment used to discount cash flows based on current market conditions and issuer circumstances.

Significant increases in liquidity or credit spreads would result in lower fair value measurements while decreases in these inputs would result in higher fair value measurements. Significant decreases in equity price-to-EBITDA multiples would result in lower fair value measurements while increases in these inputs would result in higher fair value measurements. 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 preceding tables, 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.

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.

Separate account assets classified in Level 3 primarily support Cigna’s pension plans, and include certain newly issued, privately-placed, complex, or illiquid securities that are priced using methods discussed above, as well as commercial mortgage loans 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 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, partnership 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 70% 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.
Separate Accounts

Separate Accounts

Accounting policy. Separate account assets and liabilities are contractholder funds maintained in accounts with specific investment objectives.  The assets of these accounts are legally segregated and are not subject to claims that arise out of any of the Company’s other businesses.  These separate account assets are carried at fair value with equal amounts recorded for related separate account liabilities.  The investment income and fair value gains and losses of these accounts generally accrue directly to the contractholders and, together with their deposits and withdrawals, are excluded from the Company’s Consolidated Statements of Income and Cash Flows.  Fees and charges earned for mortality risks, asset management or administrative services are reported in either premiums or fees and other revenues. Investments that are measured using the practical expedient of Net Asset Value (“NAV”) are excluded from the fair value hierarchy.
Investments

Fixed Maturities and Equity Securities

Accounting policy. Fixed maturities (including bonds, mortgage and other asset-backed securities and preferred stocks redeemable by the investor) and most equity securities are classified as available for sale and are carried at fair value with changes in fair value recorded in accumulated other comprehensive income (loss) within shareholders’ equity. Net unrealized appreciation on investments supporting the Company’s run-off settlement annuity business is reported in future policy benefit liabilities rather than accumulated other comprehensive income (loss).

Equity securities 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.

The Company records impairment losses in net income for fixed maturities with fair value below amortized cost that meet either of the following conditions:

  • If the Company intends to sell or determines that it is more likely than not to be required to sell these fixed maturities before their fair values recover, an impairment loss is recognized for the excess of the amortized cost over fair value.
  • If the net present value of projected future cash flows of a fixed maturity (based on qualitative and quantitative factors, including the probability of default, and the estimated timing and amount of recovery) is below the amortized cost basis, that difference is recognized as an impairment loss. For mortgage and asset-backed securities, estimated future cash flows are also based on assumptions about the collateral attributes including prepayment speeds, default rates and changes in value.

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.

Accounting policy. Commercial mortgage loans are carried at unpaid principal balances or, if impaired, the lower of unpaid principal or fair value of the underlying real estate. See the “Impaired commercial mortgage loans” section below for the Company’s accounting policy for impaired commercial mortgage loans.

Credit quality. The Company regularly evaluates and monitors credit risk, beginning with the initial underwriting of a mortgage loan and continuing throughout the investment holding period. Mortgage origination professionals employ an internal credit quality rating system designed to evaluate the relative risk of the transaction at origination that is then updated each year as part of the annual portfolio loan review. The Company evaluates and monitors credit quality on a consistent and ongoing basis, 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 2017 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 historical results, current leases, lease expirations and rental conditions in each market, the Company estimates the current year and future stabilized property income and fair value for each loan.

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.

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. The Company estimates the fair value of the underlying real estate using internal valuations generally based on discounted cash flow analyses. 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.

Other Long-Term Investments

Accounting policy. Other long-term investments include investments in unconsolidated entities. These entities include certain limited partnerships and limited liability companies holding real estate, securities or loans. These investments are carried at cost plus the Company’s ownership percentage of reported income or loss in cases where the Company has significant influence; otherwise the investment is carried at cost. Income from certain entities is reported on a one quarter lag depending on when their financial information is received. Other long-term investments are considered impaired, and written down to their fair value, when cash flows indicate that the carrying value may not be recoverable. Fair value is generally determined based on a discounted cash flow analysis.

Other long-term investments also include investment real estate carried at depreciated cost less any impairment write downs to fair value when cash flows indicate that the carrying value may not be recoverable. Depreciation is generally recorded using the straight-line method based on the estimated useful life of each asset. Investment real estate as of December 31, 2017 and 2016 is expected to be held longer than one year and includes real estate acquired through the foreclosure of commercial mortgage loans.

Additionally, other long-term investments include interest rate and foreign currency swaps carried at fair value

Short-Term Investments and Cash Equivalents

Accounting policy. Security investments with maturities of greater than three months to one year from time of purchase are classified as short-term, available for sale and carried at fair value that approximates cost. Cash equivalents consist of short-term investments with maturities of three months or less from the time of purchase and are carried at cost that approximates fair value.

Net Investment Income

Accounting policy. When interest and principal payments on investments are current, the Company recognizes interest income when it is earned. The Company recognizes interest income on a cash basis when interest payments are delinquent based on contractual terms or when certain terms (interest rate or maturity date) of the investment have been restructured.

Realized Investment Gains And Losses

Accounting policy. Realized investment gains and losses are based on specifically identified assets and result from sales, investment asset write-downs, changes in the fair values of certain derivatives and changes in valuation reserves on commercial mortgage loans.

Derivative Financial Instruments

Accounting policy. The Company reports GMIB liabilities and assets as derivatives at fair value because 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. Periodically, the Company 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 changes in account values and interest rates when contractholders first elect to receive minimum income payments. Cash flows on these contracts are reported in operating activities.

Accounting. 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. The critical terms of these swaps match those of the long-term debt being hedged. As a result, 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. The net impact from the hedge reported in other operating expenses reflects interest expense on the hedged debt at the variable interest rate.

Accounting. As these arrangements were not designated as accounting hedges, fair values are reported in short-term investments or accounts payable, accrued expenses, and other liabilities, and changes in fair values are reported in other realized investment gains and losses.

Accounting. Using fair value hedge accounting, fair values are reported in other long-term investments or accounts payable, accrued expenses, and other liabilities. Changes in fair values of the swap contracts, as well as changes in the fair values of the hedged bonds attributable to the hedged risk are reported in other realized investment gains and losses.

Accounting policy. The Company applies hedge accounting when derivatives are designated, qualified and highly effective as hedges. Effectiveness is formally assessed and documented at inception and each period throughout the life of a hedge using various quantitative methods appropriate for each hedge, including regression analysis and dollar offset. Under hedge accounting, the changes in fair value of the derivative and the hedged risk are generally recognized together and offset each other when reported in shareholders’ net income. Changes in the fair value of a derivative instrument may not always equal changes in the fair value of the hedged item. This is referred to as “hedge ineffectiveness” and is generally recorded in realized investment gains and losses. In the event of an early hedge termination, the changes in fair value of derivatives that qualified for hedge accounting are reported in shareholders’ net income, generally as a part of realized investment gains and losses. Derivative cash flows are generally reported in operating activities.
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 must determine if it is the primary beneficiary and must consolidate the entity. The Company would be considered the primary beneficiary if it has the power to direct the entity’s most significant economic activities or has the right to receive benefits or obligation to absorb losses that could be significant to the entity. The Company evaluates the following criteria:

  • 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.
Pension and other postretirement benefits

Accounting policy. The Company measures the assets and liabilities of its domestic pension and other postretirement benefit plans as of December 31. Benefit obligations are measured at the present value of estimated future payments based on actuarial assumptions. The Company uses the “corridor” method to account for changes in the benefit obligation when actual results differ from those assumed, or when assumptions change. These changes are called net unrecognized actuarial gains (losses). Under the corridor method, net unrecognized actuarial gains (losses) are initially recorded in accumulated other comprehensive income. When the unrecognized gain (loss) exceeds 10% of the benefit obligation, that excess is amortized to other operating expense over the expected remaining lives of plan participants.

For balance sheet purposes, we measure plan assets at fair value. When the actual return differs from the expected return, those differences are reflected in the net unrealized actuarial gain (loss) discussed above. However, to measure pension benefit costs, we use a “market-related” asset valuation that differs from the actual fair value for domestic pension plan assets invested in non-fixed income investments. The “market-related” value recognizes the difference between actual and expected long-term returns in the portfolio over five years, a method that reduces the short-term impact of market fluctuations on pension costs.

The Company used the Society of Actuaries mortality table RP2014 and the updated improvement scales published in 2016 and 2017 to value its benefit obligations because the Company’s mortality experience closely matched these tables based on internal studies. The updated improvement scales published in 2016 and 2017 both indicated that mortality improvement is expected to be lower than was originally projected when the study was first published in 2014, resulting in decreases to the benefit obligations in both years.

The Company sets discount rates by applying actual annualized yields for high quality bonds at various durations to the expected cash flows of the pension and other postretirement benefits liabilities. A discount rate curve is constructed using an array of bonds in various industries throughout the domestic market, but only selects those for the curve that have an above average return at each duration. Management believes that this curve is representative of the yields that the Company is able to achieve through its plan asset investment strategy.

Expected long-term rates of return on plan assets were developed considering actual long-term historical returns, expected long-term market conditions, plan asset mix and management’s investment strategy that continues a significant allocation to domestic and foreign equity securities as well as securities partnerships, real estate and hedge funds. Expected long-term market conditions take into consideration certain key macroeconomic trends including expected domestic and foreign GDP growth, employment levels and inflation.

See Note 10 for further details regarding how fair value is determined, including the level within the fair value hierarchy and the procedures we use to validate fair value measurements. Within pension plan assets, the Company classifies substantially all fixed maturities in Level 2. These assets are valued using recent trades of similar securities or are fund investments priced using their daily net asset value that is the exit price. Within pension assets, a substantial portion of domestic equity securities are classified as Level 1, while international equity funds are predominantly classified in Level 2 using daily net asset value.

Securities partnerships, real estate and hedge funds are valued using NAV as a practical expedient and are excluded from the fair value hierarchy. See Note 10 for additional disclosures related to these assets invested in the separate accounts of the Company’s subsidiaries. Certain securities as described in Note 10, as well as commercial mortgage loans and guaranteed deposit account contracts, are classified in Level 3 because unobservable inputs used in their valuation are significant.
Employee Incentive Plans

The Company issues shares from Treasury stock for these awards.

The Company records compensation expense for stock and option awards over their vesting periods primarily based on the estimated fair value at the grant date. Fair value is determined differently for each type of award as discussed below.

Accounting policy. The Company awards options to purchase Cigna common stock at the market price of the stock on the grant date. Options vest over periods ranging from one to three years and expire no later than 10 years from grant date. Fair value is estimated using the Black-Scholes option-pricing model by applying the assumptions presented below. That fair value is reduced by options expected to be forfeited during the vesting period. The Company estimates forfeitures at the grant date based on our experience and adjusts the expense to reflect actual forfeitures over the vesting period. The fair value of options, net of forfeitures, is recognized in operating expenses on a straight line basis over the vesting period.

Black-Scholes option-pricing model assumptions and the resulting fair value of options are presented in the following table.

201720162015
Dividend yield0.0%0.0%0.0%
Expected volatility35.0%35.0%35.0%
Risk-free interest rate1.8%1.2%1.3%
Expected option life4.3 years4.3 years4.3 years
Weighted average fair value of options$46.38$42.01$36.40

The expected volatility reflects the past daily stock price volatility of Cigna stock. The Company does not consider volatility implied in the market prices of traded options to be a good indicator of future volatility because remaining traded options will expire within one year. The risk-free interest rate is derived using the four-year U.S. Treasury bond yield rate as of the award date for the primary annual grant. Expected option life reflects the Company’s historical experience.

Accounting policy. Fair value of restricted stock awards is equal to the market price of Cigna’s common stock on the date of grant. This fair value is reduced by awards that are expected to forfeit. At the grant date, the Company estimates forfeitures based on experience and adjusts the expense to reflect actual forfeitures over the vesting period. This fair value, net of forfeitures, is recognized in other operating expenses over the vesting period on a straight line basis.

Accounting policy. Compensation expense for SPSs is recorded over the performance period. For “market condition” SPSs, fair value is determined at the grant date using a Monte Carlo simulation model and not subsequently adjusted regardless of the final outcome. For “performance condition” SPSs, expense is initially accrued based on the most likely outcome, but evaluated for adjustment each period for updates in the expected outcome. At the end of the performance period, expense is adjusted to the actual outcome (number of shares awarded times the share price at the grant date). At the grant date, the Company estimates forfeitures based on experience and adjusts the expense to reflect actual forfeitures over the vesting period.

During the vesting period, the Company records tax benefits in shareholders’ net income based on the amount of expense being recognized. When stock options are exercised, or when restricted stock and SPSs vest, the difference between tax benefits based on the expense and the actual tax benefit realized are also recorded in net income beginning in 2016 in accordance with ASU 2016-09. Prior to 2016, such excess tax benefits were recorded as an adjustment to additional paid-in capital. The table below provides information about the cost and tax benefits related to all of our share-based compensation arrangements discussed above.
Goodwill

Accounting policy. Goodwill represents the excess of the cost of businesses acquired over the fair value of their net assets. The resulting goodwill is assigned to those reporting units expected to realize cash flows from the acquisition, allocated to reporting units based on relative fair values, primarily reported in the Global Health Care segment ($5.9 billion) and, to a lesser extent, the Global Supplemental Benefits segment ($0.3 billion).

The Company evaluates goodwill for impairment at least annually during the third quarter at the reporting unit level and writes it down through shareholders’ net income if impaired. Fair value of a reporting unit is generally estimated based on either market data or a discounted cash flow analysis using assumptions that the Company believes a hypothetical market participant would use to determine a current transaction price. The significant assumptions and estimates used in determining fair value include the discount rate and future cash flows. A range of discount rates is used that corresponds with the reporting unit’s weighted average cost of capital, consistent with that used for investment decisions considering the specific and detailed operating plans and strategies within the reporting unit. Projections of future cash flows for the reporting unit are consistent with our annual planning process for revenues, claims, operating expenses, taxes, capital levels and long-term growth rates.

Other intangibles

Other Intangibles

Accounting policy. The Company’s other intangible assets include purchased customer and producer relationships, provider networks and trademarks. The fair value of purchased customer relationships and the amortization method were determined as of the dates of purchase using an income approach that relies on projected future net cash flows including key assumptions for the customer attrition rate and discount rate. The Company amortizes other intangibles on an accelerated or straight-line basis over periods from five to 30 years. Management revises amortization periods if it believes there has been a change in the length of time that an intangible asset will continue to have value. Costs incurred to renew or extend the terms of these intangible assets are generally expensed as incurred.
Property and Equipment

Accounting policy. Property and equipment is carried at cost less accumulated depreciation. When applicable, cost includes interest, real estate taxes and other costs incurred during construction. Also included in this category is internal-use software that is acquired, developed or modified solely to meet the Company’s internal needs, with no plan to market externally. Costs directly related to acquiring, developing or modifying internal-use software are capitalized.

The Company calculates depreciation and amortization principally using the straight-line method generally based on the estimated useful life of each asset as follows: buildings and improvements, 10 to 40 years; purchased software, three to five years; internally developed software, three to seven years; and furniture and equipment (including computer equipment), three to 10 years. Improvements to leased facilities are depreciated over the lesser of the remaining lease term or the estimated life of the improvement. The Company considers events and circumstances that would indicate the carrying value of property, equipment or capitalized software might not be recoverable. If the Company determines the carrying value of any of these assets is not recoverable, an impairment charge is recorded.
Income Taxes

Accounting policy. Deferred income tax assets and liabilities are recognized for differences between the financial and income tax reporting bases of the underlying assets and liabilities and established based upon enacted tax rates and laws, including the U.S. tax reform legislation enacted in December 2017. Deferred income tax assets are recognized when available evidence indicates that realization is more likely than not. The deferred income tax provision generally represents the net change in deferred income tax assets and liabilities during the year, excluding amounts reported as adjustments to accumulated other comprehensive income or amounts initially recorded due to business combinations. The current income tax provision generally represents estimated amounts due on various income tax returns for the year reported plus the effect of any uncertain tax positions. Uncertain tax positions are evaluated in accordance with GAAP.

Income taxes for the Company’s foreign operations are provided using the respective foreign jurisdictions’ tax rate.

The Company’s foreign operations continue to retain a significant portion of their earnings overseas. These undistributed earnings are deployed outside of the United States in support of the liquidity and capital needs of our foreign operations as well as to support growth initiatives overseas. The Company does not intend to repatriate these earnings.

The Company establishes a valuation allowance when it determines that realization of a deferred tax asset does not meet the more likely than not standard. Valuation allowances have been established against certain federal, foreign and state deferred tax assets, generally when there is a requirement to assess them on a separate entity basis.

Commitments and Contingencies

Pending litigation and legal or regulatory matters that the Company has identified with a reasonably possible material loss are described below. When litigation and regulatory matters present loss contingencies that are both probable and estimable, the Company accrues the estimated loss by a charge to shareholders’ net income. The estimated loss is the Company’s best estimate of the probable loss at the time or an amount within a range of estimated losses reflecting the most likely outcome or the minimum amount of the range (if no amount is better than any other estimated amount in the range.) 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.

Segment Information

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 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 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. In 2015, the amortization amount was net of a bargain purchase gain on an acquisition.
  • Special items, if any, are excluded because management believes they are not representative of the underlying results of operations.

This is generally because the nature and size of these matters are not indicative of our ongoing business operations. Additional details about these items that provide further context as to why they are not considered indicative of ongoing business operations may be found in the footnotes referenced in the table below.
v3.8.0.1
Accounting Policies - Unpaid Claims and Claims Expenses (Policies)
 12 Months Ended
Dec. 31, 2017
Global Health Benefits Segment [Member]  
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Liabilities for unpaid claims and claims expenses

Accounting policy. The Company uses actuarial principles and assumptions that are consistently applied each reporting period and recognizes the actuarial best estimate of the ultimate liability along with a margin for adverse deviation. This approach is consistent with actuarial standards of practice that the liabilities be adequate under moderately adverse conditions.

This liability predominately consists of incurred but not reported amounts and reported claims in process including expected development on reported claims. The liability is primarily calculated using “completion factors” developed by comparing the claim incurral date to the date claims were paid. Completion factors are impacted by several key items including changes in: 1) electronic (auto-adjudication) versus manual claim processing, 2) provider claims submission rates, 3) membership and 4) the mix of products. The Company uses historical completion factors combined with an analysis of current trends and operational factors to develop current estimates of completion factors. The Company estimates the liability for claims incurred in each month by applying the current estimates of completion factors to the current paid claims data. This approach implicitly assumes that historical completion rates will be a useful indicator for the current period.

For more recent months, the Company relies more heavily on medical cost trend analysis that reflects expected claim payment patterns and other relevant operational considerations. Medical cost trend is primarily impacted by medical service utilization and unit costs that are affected by changes in the level and mix of medical benefits offered, including inpatient, outpatient and pharmacy, the impact of copays and deductibles, changes in provider practices and changes in consumer demographics and consumption behavior.

For each reporting period, the Company compares key assumptions used to establish the medical costs payable to actual experience. When actual experience differs from these assumptions, medical costs payable are adjusted through current period shareholders’ net income. Additionally, the Company evaluates expected future developments and emerging trends that may impact key assumptions. The process used to determine this liability requires the Company to make critical accounting estimates that involve considerable judgment, reflecting the variability inherent in forecasting future claim payments. These estimates are highly sensitive to changes in the Company’s key assumptions, specifically completion factors and medical cost trends.

Group Disability and Life, Global Supplemental Beneftits and Other Operations [Member]  
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Liabilities for unpaid claims and claims expenses

Accounting policy. Liabilities for unpaid claims and claim expenses are established by book of business within the Company's Group Disability and Life, Global Supplemental Benefits and Other Operations segments. The Group Disability and Life segment’s liability for unpaid claims and claim expenses consists of the following primary products: long-term and short-term disability, life insurance, and accident coverages. Unpaid claims and claim expenses consist of (1) case or claims reserves for reported claims that are unpaid as of the balance sheet date; (2) incurred but not reported reserves for claims when the insured event has occurred but has not been reported to the Company; and (3) loss adjustment expense reserves for the expected costs of settling these claims. The Company consistently estimates incurred but not yet reported losses using actuarial principles and assumptions based on historical and projected claim incidence patterns, claim size and the expected payment period. The Company recognizes the actuarial best estimate of the ultimate liability within a level of confidence, consistent with actuarial standards of practice that the liabilities be adequate under moderately adverse conditions. When estimates of these liabilities change, the Company immediately records the adjustment in benefits and expenses.

The majority of the Company’s liability for disability claims consists of the present value of estimated future benefit payments, including expected development, for each reported claim that is currently receiving benefit payments, or pending a decision on eligibility for benefits, over the expected disability period. The Company projects the expected disability period by using historical resolution rates combined with an analysis of current trends and operational factors to develop current estimates of resolution rates. Using the Company’s experience, expected claim resolution rates may vary based upon the anticipated disability period, the covered benefit period, the cause of disability, the benefit design and the claimant’s age, gender and income level. The gross monthly benefit is reduced (offset) by disability income received under other benefit programs, most commonly Social Security Disability Income, workers’ compensation, statutory disability or other group benefit plans. For certain offsets not yet finalized, the Company estimates the probability and amount of future offset awards and lapses based on the Company’s experience.

The Company also establishes a liability for the expected present value of future benefit payments for known claims that have recently been resolved but may reopen in the future, based on Company experience. Prior to a claim becoming known, the Company establishes a liability for incurred but not reported claims, using standard actuarial techniques and calculations based on completion factors and loss ratio assumptions using the Company’s experience combined with an analysis current trends and operational factors. Completion factors are impacted by several key items including changes in claim inventory levels, claim payment patterns, changes in business volume and other factors. Loss ratio assumptions are developed using historical Company experience, adjusted prospectively for expected changes in the underlying business including rate actions, persistency and inforce growth.

The Company discounts certain liabilities, predominantly long-term disability, because benefits payments are made over extended periods. Discount rate assumptions for these liabilities are based on projected investment returns for the supporting asset portfolios.

The claims frequency metric used for the Company’s long-term disability line of business represents the number of unique claim events for which benefits have been approved and payments made. Claim events are identified using a unique claimant identifier and incurral date. Thus, if an individual has multiple claims for different disabling events (and therefore different incurral dates), each will be determined to be a unique claim event. However, if an individual receives multiple benefits under more than one policy (for example for supplemental disability benefits such as pension contribution benefits or survivor benefits), the Company treats this as a single claim occurrence because they related to the same claim event. Claims frequency metrics for the most recent year are expected to be low reflecting the long-term disability product features including waiting and elimination periods that result in delayed eligibility for contract benefits. Claims that did not result in a liability are not included in the frequency metric.
v3.8.0.1
Accounting Policies - Guaranteed Minimum Death Benefits (Policies)
 12 Months Ended
Dec. 31, 2017
Activity in future policy benefits reserves for GMDB business [Line Items]  
Future Policy Benefits

G. Future Policy Benefits

Future policy benefits represent the present value of estimated future obligations under long-term life and supplemental health insurance policies and annuity products currently in force. These obligations are estimated using actuarial methods and consist primarily of reserves for annuity contracts, life insurance benefits, GMDB contracts (see Note 9 for additional information) and certain health, life and accident insurance products of our Global Supplemental Benefits segment.

Obligations for annuities represent specified periodic benefits to be paid to an individual or groups of individuals over their remaining lives. Obligations for life insurance policies and GMDB contracts represent benefits expected to be paid to policyholders, net of future premiums expected to be received. Management estimates these obligations based on assumptions as to premiums, interest rates, mortality or morbidity, future claim adjudication expenses and surrenders, allowing for adverse deviation as appropriate. Mortality, morbidity and surrender assumptions are based on the Company’s own experience and published actuarial tables. Interest rate assumptions are based on management’s judgment considering the Company’s experience and future expectations, and range from 0.1% to 9%. Obligations for the run-off settlement annuity business include adjustments for realized and unrealized investment returns consistent with GAAP when a premium deficiency exists.

Variable Annuity [Member] | Guaranteed Minimum Death Benefit [Member]  
Activity in future policy benefits reserves for GMDB business [Line Items]  
Future Policy Benefits

Accounting policy. The Company estimates the gross liability and reinsurance recoverable 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. 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 asset presented below). The ending net retained reserve covers ongoing administrative expenses, as well as minor claim exposure retained by the Company.

Because the product is premium deficient, the Company records an increase to the net retained reserve if it is inadequate based on the model.
v3.8.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2017
Accounting Policies [Abstract]  
Requirements and Effects of New Accounting Guidance
Accounting Standard and Adoption DateEffects of Adopting New Guidance
GUIDANCE ADOPTED IN 2017
Securities and Exchange Commission ("SEC") Staff Accounting Bulletin No. 118 ("SAB 118"), adopted December 31, 2017Guidance:
•Allows a company to recognize the effects of U.S. tax reform as provisional in its 2017 financial statements when it does not have the necessary information in reasonable detail to complete its accounting for the change in tax law.
•Establishes a maximum one-year measurement period that ends when a company has obtained the information necessary to finalize its accounting. During the measurement period, adjustments for the effects of the law will be recorded to the extent a reasonable estimate for all or a portion of the effects of the law can be made.
Effects of adoption:
•The Company has reported reasonable estimates of the income tax effects of U.S. tax reform as provisional in its financial statements.
•See Note 20 for disclosures about the impact of U.S. tax reform on the Company's financial statements.

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED JANUARY 1, 2018
Revenue from Contracts with Customers (Accounting Standards Update ("ASU") 2014-09 and related amendments)Required as of January 1, 2018Requires:
•Companies to estimate and allocate the expected customer contract revenues among distinct goods or services based on relative standalone selling prices
•Revenues to be recognized as goods or services are delivered
•New disclosures including presenting relevant categories of revenues and information about related contract assets and liabilities
•Adoption through retrospective restatement with or without using certain practical expedients or adoption with a cumulative effect adjustment
Expected effects:
•Guidance applies to the Company’s administrative service, mail order pharmacy and other non-insurance contracts, but does not apply to certain contracts within the scope of other GAAP, such as the Company's insurance and investment contracts accounted for under the Financial Accounting Standards Board's Accounting Standards Codification ("ASC") 944.
•The Company has completed its evaluation of the new requirements and the adoption of the new guidance will not have a material impact to its pattern of revenue recognition or net income.
•The Company will adopt the new guidance through retrospective restatement and is currently working to develop required disclosures and restate historical periods in line with its chosen method of adoption. The Company does not anticipate significant changes to its systems, processes or controls.
• The Company's cumulative effect of implementing this guidance will result in an immaterial decrease to the opening balance of retained earnings from establishing a contract liability for service fee revenue that must be recognized when services are provided after the termination of certain administrative service contracts.
•The Company also will reclassify certain fees as a result of clarifications in the new guidance and its related interpretations.
Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01)Required as of January 1, 2018Requires:
•Entities to measure equity investments at fair value in net income if they are neither consolidated nor accounted for under the equity method
•Cumulative effect adjustment to the beginning balance of retained earnings at adoption
Expected effects:
•Certain limited partnership interests carried at cost of approximately $200 million as of December 31, 2017 will be reported at fair value at adoption with future changes in fair value reported in net investment income.
•Changes in fair value for equity securities previously reported in accumulated other comprehensive income will now be reported in net realized investment gains.
•Retained earnings will increase by approximately $60 million after-tax on January 1, 2018.

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED JANUARY 1, 2018
Intra-Entity Asset Transfers of Assets Other than Inventory (ASU 2016-16)Required as of January 1, 2018Requires:
•Entities to recognize the tax impacts of all intra-entity sales of assets other than inventory even though the pre-tax effects of those transactions are eliminated in consolidation
•Modified retrospective approach for adoption with a cumulative-effect adjustment recorded in retained earnings
Expected effects: the adoption of this standard will not have a material effect on the Company’s financial statements.
Clarifying the Definition of a Business (ASU 2017-01)Required as of January 1, 2018Guidance:
•Revises the definition of a business and provides a more robust framework for entities to use in determining when a set of assets and activities is a business.
•Requires entities to apply this new definition to business transactions beginning in the first quarter of 2018.
Expected effects: the Company does not expect this change in definition will have a material impact on its financial statements.
Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (ASU 2017-07)Required as of January 1, 2018Requires:
•Employers to separate the service cost component from the other components of net benefit cost
•Only service cost is eligible for capitalization (as either deferred policy acquisition costs or capitalized software), to be applied prospectively upon adoption
•Income statement captions used for each component of net benefit cost to be disclosed
Expected effects: the Company does not expect the effect of this new guidance to be material to results of operations because its most significant plans are frozen. See Note 15 for additional information.
GUIDANCE TO BE EARLY ADOPTED JANUARY 1, 2018
Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12)Required as of January 1, 2019, with early adoption permitted in 2017Guidance:
•Relaxes requirements for financial and nonfinancial hedging strategies to be eligible for hedge accounting and changes how companies assess effectiveness.
•Amends presentation and disclosure requirements to improve transparency about the uses and results of hedging programs.
Expected effects: the Company is planning to adopt this guidance on January 1, 2018 with an immaterial impact to its financial statements for existing hedges.

Accounting Standard and Effective Date Applicable for CignaRequirements and Expected Effects of New Guidance Not Yet Adopted
GUIDANCE TO BE ADOPTED AFTER 2018 OR ADOPTION DATE HAS NOT BEEN DETERMINED
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02)Effective as of January 1, 2019 with early adoption permitted for reporting periods for which financials have not been issued.Guidance:
•Allows companies to reclassify tax effects stranded in accumulated other comprehensive income as a result of U.S. tax reform to retained earnings.
•Requires additional disclosures of the company's accounting policy for releasing income tax effects from accumulated other comprehensive income.
•Allows companies to apply the guidance retrospectively or in the period of adoption.
Effects of adoption:
•The Company is evaluating this new standard and its expected timing of adoption.
•If adopted as of December 31, 2017, approximately $230 million of accumulated other comprehensive income would have been reclassified to retained earnings.
Leases (ASU 2016-02)Required as of January 1, 2019 Requires:
•Balance sheet recognition of assets and liabilities arising from leases, including leases embedded in other contracts
•Additional disclosures of the amount, timing and uncertainty of cash flows from leases will be required
•Modified retrospective approach for leases in effect as of and after the date of adoption with a cumulative-effect adjustment recorded in retained earnings
Expected effects:
•The Company is continuing to evaluate the impact this standard will have on its financial statements.
•While not yet quantified, the Company expects a material impact to the Consolidated Balance Sheets from recognizing additional assets and liabilities of operating leases upon adoption. The actual increase in assets and liabilities will depend on the volume and terms of leases in place at the time of adoption.
•The Company is implementing a new lease system in connection with the adoption.
Measurement of Credit Losses on Financial Instruments (ASU 2016-13)Required as of January 1, 2020, with early adoption permitted as of January 1, 2019Requires:
•A new approach using expected credit losses to estimate and recognize credit losses for certain financial instruments such as mortgage loans, reinsurance recoverables and other receivables
•Changes in the criteria for impairment of available-for-sale debt securities
•Adoption using a modified retrospective approach with a cumulative-effect adjustment recorded in retained earnings
Expected effects:
•The Company is evaluating this new standard, its expected timing of adoption and effects on its financial statements and disclosures.
•An additional allowance for future expected credit losses for certain financial instruments may be required at adoption.
Simplifying the Test for Goodwill Impairment (ASU 2017-04)Required as of January 1, 2020, with early adoption permitted as of January 1, 2017Guidance:
•Simplifies the accounting for goodwill impairment by eliminating the need to determine the fair value of individual assets and liabilities of a reporting unit to measure a goodwill impairment.
•Redefines the amount of goodwill impairment to be equal to the amount by which a reporting unit’s carrying value exceeds its fair value, limited to the total amount of goodwill of the reporting unit.
•Requires prospective adoption.
Expected effects: the Company is evaluating this new standard and its expected timing of adoption.
v3.8.0.1
Mergers and Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2017
Acquisitions and Dispositions [Abstract]  
Merger-related costs
201720162015
(In millions)Before-tax After-tax Before-tax After-tax Before-tax After-tax
Transaction-related costs $ 126 $ 92 $ 166 $ 147 $ 66 $ 57
Tax (benefit) - previously non-deductible costs-(59)----
Transaction-related costs, net $ 126 $ 33 $ 166 $ 147 $ 66 $ 57
v3.8.0.1
Earnings Per Share (Tables)
 12 Months Ended
Dec. 31, 2017
Earnings Per Share [Abstract]  
Earnings per Share
201720162015
(Shares in thousands, dollars in millions, except per share amounts)Effect of Effect of Effect of
BasicDilutionDilutedBasicDilutionDilutedBasicDilutionDiluted
Shareholders' net income$2,237$-$2,237$1,867$-$1,867$2,094$-$2,094
Shares
Weighted average250,892-250,892255,360-255,360256,149-256,149
Common stock equivalents 4,1804,1804,2874,2874,4434,443
Total shares250,8924,180255,072255,3604,287259,647256,1494,443260,592
EPS$8.92$(0.15)$8.77$7.31$(0.12)$7.19$8.17$(0.13)$8.04
Antidilutive Options Table
(In millions)201720162015
Anti-dilutive options0.92.30.4
v3.8.0.1
Debt (Tables)
 12 Months Ended
Dec. 31, 2017
Debt [Table] [Abstract]  
Short-term and Long-term Debt
(In millions)20172016
Short-term debt
Commercial paper$100$-
Current maturities of long-term debt131250
Other, including capital leases926
Total short-term debt$240$276
Long-term uncollateralized debt
$131 million, 6.35% Notes due 2018$-$131
$250 million, 4.375% Notes due 2020 (1)249252
$300 million, 5.125% Notes due 2020 (1)299301
$78 million, 6.37% Notes due 20217878
$300 million, 4.5% Notes due 2021 (1)299302
$750 million, 4% Notes due 2022745744
$100 million, 7.65% Notes due 2023100100
$17 million, 8.3% Notes due 20231717
$900 million, 3.25% Notes due 2025894893
$600 million, 3.05% Notes due 2027594-
$259 million, 7.875% Debentures due 2027 (2)258299
$45 million, 8.3% Step Down Notes due 2033 (2)4582
$191 million, 6.15% Notes due 2036 (2)190498
$121 million, 5.875% Notes due 2041 (2)119296
$317 million, 5.375% Notes due 2042 (2)315743
$1,000 million, 3.875% Notes due 2047988-
Other, including capital leases920
Total long-term debt$5,199$4,756
(1) The Company has entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments. See Note 12 for further information about the Company’s interest rate risk management and these derivative instruments.
(2) The Company redeemed a portion of these debt issues through a cash tender offer in September 2017, the aggregate amount of which was $1.0 billion.

(In millions)
Debt InstrumentPrincipalTermMaturityStated Interest RateEffective Interest RateAmount net of discount and feesInterest payment dates
10-Year Notes$60010-YearOctober 15, 20273.05%3.183%$594April 15 and October 15
30-Year Notes$1,000 30-Year October 15, 2047 3.875%3.951 % $987April 15 and October 15
Maturities of long-term debt and capital leases
Scheduled Maturities
(In millions)Long-term Debt (1)Capital Leases
2018$131$9
2019$-$8
2020$550$1
2021$378$-
2022$750$-
Maturities after 2022$3,550$-
(1) Long-term debt maturity amounts exclude capital leases.

(In millions)Operating Lease Payments
2018$130
2019$113
2020$94
2021$73
2022$58
2023 and thereafter$114
v3.8.0.1
Common and Preferred Stock (Tables)
 12 Months Ended
Dec. 31, 2017
Common And Preferred Stock [Abstract]  
Schedule of issued shares
(Shares in thousands)201720162015
Common: Par value $0.25; 600,000 shares authorized
Outstanding - January 1,256,869256,544259,276
Issued for stock option exercises and other benefit plans2,7611,1102,751
Repurchased common stock(15,663)(785)(5,483)
Outstanding - December 31,243,967256,869256,544
Treasury stock52,17839,27639,601
Issued - December 31,296,145296,145296,145
v3.8.0.1
Global Health Care Medical Costs Payable (Tables) - Global Health Benefits Segment [Member]
 12 Months Ended
Dec. 31, 2017
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Activity in medical costs payable
(In millions)201720162015
Balance at January 1,$2,532$2,355$2,180
Less: Reinsurance and other amounts recoverable275243252
Balance at January 1, net2,2572,1121,928
Incurred costs related to:
Current year20,23319,08718,564
Prior years(266)(78)(210)
Total incurred19,96719,00918,354
Paid costs related to:
Current year17,97917,05216,588
Prior years1,7911,8121,582
Total paid19,77018,86418,170
Balance at December 31, net2,4542,2572,112
Add: Reinsurance and other amounts recoverable265275243
Balance at December 31, $2,719$2,532$2,355
Variances in incurred costs related to prior years' medical costs payable
20172016
($ in millions)$%(1)$%(2)
Actual completion factors$1240.7%$590.3%
Medical cost trend1330.7270.1
Other (3)9-(8)-
Total favorable variance$2661.4%$780.4%
(1) Percentage of current year incurred costs as reported for 2016.
(2) Percentage of current year incurred costs as reported for 2015.
(3) Other amounts in 2017 primarily related to an increase in the 2016 reinsurance reimbursement rate from CMS under the ACA. Other amounts in 2016 primarily related to increased medical costs in the Government segment resulting from sharing additional risk adjustment revenue with providers.
Incurred and paid claims development
Incurred Costs
Incurral Year2016 (Unaudited)2017Medical Costs PayableClaims Frequency
($ in millions, except for claims frequency)
2016$19,087$18,822$1592.7 million
201720,233$2,2543.3 million
Cumulative incurred costs for the periods presented$39,055
Cumulative Paid Costs
Incurral Year2016 (Unaudited)2017
2016$17,052$18,663
201717,979
Cumulative paid costs for the periods presented$36,642
Cumulative incurred costs less cumulative paid costs for the periods presented$2,413
Outstanding liabilities prior to 201641
Net outstanding liabilities for Global Health Care medical costs payable2,454
Reinsurance and other amounts recoverable265
Total liability for Global Health Care medical costs payable$2,719
v3.8.0.1
Liabilities for Unpaid Claims and Claims Expenses (Tables)
 12 Months Ended
Dec. 31, 2017
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Details of unpaid claim discounted liability
(In billions)20172016
Discounted liabilities$4.0$3.9
Aggregate amount of discount$1.0$1.1
Range of discount rates 4.5%-5.2% 3.3%-5.8%
Long-term Disability [Member]  
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Incurred and paid claims development
(In millions, except for claims frequency)
Incurred Claims (undiscounted)
Accident Year2012 (Unaudited)2013 (Unaudited)2014 (Unaudited)2015 (Unaudited)2016 (Unaudited)2017Incurred But Not Reported LiabilitiesClaims Frequency
2012$995$951$889$876$883$880$-21,180
20131,0631,0371,0621,0721,057-23,516
20141,1581,1291,1671,146-25,281
20151,1841,1541,185525,609
20161,2461,1842024,722
2017 1,22654010,569
Cumulative incurred claims for the periods presented$6,678
Cumulative Paid Claims
Accident Year2012 (Unaudited)2013 (Unaudited)2014 (Unaudited)2015 (Unaudited)2016 (Unaudited)2017
2012$81$288$429$504$571$621
201392342503600670
2014111379575667
2015 114417603
2016122411
2017 110
Cumulative paid claims for the periods presented$3,082
All outstanding liabilities for the periods presented, net of reinsurance$3,596
All outstanding liabilities prior to 2012, net of reinsurance1,142
Impact of discounting(948)
Liability for long-term disability unpaid claims and claim expenses, net of reinsurance$3,790
Reconciliation of net inucurred and paid claims development table to the liability for unpaid claims and claim expenses
(In millions)
Net outstanding liabilities – Group Disability and Life segment
Long-term disability liabilities, net of reinsurance$3,790
Other short-duration insurance books of business, net of reinsurance599
Liabilities for unpaid claims and claim expenses, net of reinsurance4,389
Reinsurance recoverable on unpaid claims – Group Disability and Life segment
Long-term disability94
Other short-duration insurance books of business8
Total reinsurance recoverable on unpaid claims 102
Total liability for unpaid claims and claim expenses – Group Disability and Life segment4,491
Global Supplemental Benefits segment484
Other Operations segment193
Total liability for unpaid claims and claim expenses$5,168
Group Disability and Life, Global Supplemental Beneftits and Other Operations [Member]  
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Liability balance details
(In millions)20172016
Group Disability and Life$4,491$4,342
Global Supplemental Benefits 484 384
Other Operations 193 191
Unpaid claims and claim expenses$5,168$4,917
Group Disability and Life and Global Supplemental Benefits [Member]  
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]  
Liability balance details
(In millions)201720162015
Balance at January 1,$4,726$4,359$4,178
Less: Reinsurance121115104
Balance at January 1, net4,6054,2444,074
Incurred claims related to:
Current year4,3414,2583,813
Prior years
Interest accretion163161163
All other incurred(4)93(91)
Total incurred4,5004,5123,885
Paid claims related to:
Current year2,7242,5752,325
Prior years1,5721,5601,382
Total paid4,2964,1353,707
Acquisitions--11
Foreign currency29(16)(19)
Balance at December 31, net4,8384,6054,244
Add: Reinsurance137121115
Balance at December 31,$4,975$4,726$4,359
v3.8.0.1
Reinsurance (Tables)
 12 Months Ended
Dec. 31, 2017
Effects Of Reinsurance [Line Items]  
Components of reinsurance recoverables
(Dollars in millions)
Line of BusinessReinsurer(s)December 31, 2017December 31, 2016Collateral and Other Termsat December 31, 2017
Ongoing Operations
Global Health Care, Global Supplemental Benefits, Group Disability and Life, COLIVarious$454$478Recoverables from approximately 90 reinsurers, used in the ordinary course of business. Current balances range from less than $1 million up to $80 million. Over 70% of the balance is from companies rated as investment grade by Standard & Poor's, and 11% is secured by assets in trusts or letters of credit.
Total recoverables related to ongoing operations454478
Acquisition, disposition or runoff activities
Individual Life and Annuity (sold in 1998)Lincoln National Life and Lincoln Life & Annuity of New York3,4363,586Both companies' ratings were sufficient to avoid triggering a contractual obligation to fully secure the outstanding balance.
GMDB (effectively exited in 2013)Berkshire9281,085100% secured by assets in a trust.
Other3444100% secured by assets in a trust or letters of credit.
Retirement Benefits Business (sold in 2004)Prudential Retirement Insurance and Annuity850921100% secured by assets in a trust.
Supplemental Benefits Business (2012 acquisition)Great American Life283297100% secured by assets in a trust.
Other run-off reinsuranceVarious6167100% secured by assets in a trust or other deposits.
Total recoverables related to acquisition, disposition or runoff activities5,5926,000
Total reinsurance recoverables$6,046$6,478
Effects of Reinsurance
(In millions)201720162015
Premiums
Short-duration contracts
Direct$28,654$27,496$26,751
Assumed199247289
Ceded(150)(229)(254)
Total short-duration contract premiums28,70327,51426,786
Long-duration contracts
Direct3,7483,2593,061
Assumed130137111
Ceded
Individual life insurance and annuity business sold(143)(153)(158)
Other(131)(131)(158)
Total long-duration contract premiums3,6043,1122,856
Total premiums$32,307$30,626$29,642
Reinsurance recoveries
Individual life insurance and annuity business sold$259$279$301
Other66261436
Total reinsurance recoveries$325$540$737
Variable Annuity [Member] | Guaranteed Minimum Death Benefit [Member]  
Effects Of Reinsurance [Line Items]  
Account value, net amount at risk, contractholder average age
(Dollars in millions, excludes impact of reinsurance ceded)20172016
Account value$10,109$10,650
Net amount at risk$2,112$2,458
Average attained age of contractholders (weighted by exposure)7575
Number of contractholders245,000285,000
Variable Annuity [Member] | Guaranteed Minimum Income Benefit [Member]  
Effects Of Reinsurance [Line Items]  
Effects of Reinsurance
(In millions)
Line of BusinessReinsurerDecember 31, 2017December 31, 2016Collateral and Other Termsat December 31, 2017
GMIBBerkshire $ 359 $ 370100% were secured by assets in a trust.
Sun Life Assurance Company of Canada221227
Liberty Re (Bermuda) Ltd.197202100% were secured by assets in a trust.
Total GMIB recoverables reported in other assets$777$799
v3.8.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2017
Fair Value Disclosures [Abstract]  
Financial assets and liabilities carried at fair value
As of December 31,
(In millions)Quoted Prices in Active Markets for Identical Assets(Level 1)Significant Other Observable Inputs(Level 2)Significant Unobservable Inputs(Level 3)Total
20172016201720162017201620172016
Financial assets at fair value
Fixed maturities
Federal government and agency $253$374$526$503$-$-$779$877
State and local government--1,2871,435--1,2871,435
Foreign government--2,4422,06645472,4872,113
Corporate --17,65815,55243049818,08816,050
Mortgage and other asset-backed --343329154157497486
Total fixed maturities25337422,25619,88562970223,13820,961
Equity securities 4123967311310374588583
Subtotal66577022,32919,99873277623,72621,544
Short-term investments--199691--199691
GMIB assets ----777799777799
Other derivative assets --210--210
Total financial assets at fair value, excluding separate accounts$665$770$22,530$20,699$1,509$1,575$24,704$23,044
Financial liabilities at fair value
GMIB liabilities $-$-$-$-$762$780$762$780
Other derivative liabilities --255--255
Total financial liabilities at fair value, excluding separate accounts$-$-$25$5$762$780$787$785
Level 3 fixed maturities and equity securities priced using significant unobservable inputs
As of December 31,
Fair ValueUnobservable InputUnobservable Adjustment Range (Weighted Average)
(Fair value in millions )2017201620172016
Fixed maturities
Mortgage and other asset-backed securities$154$157 Liquidity 60 - 370 (90) bps 60 - 330 (90) bps
Weighting of credit spreads 180 - 290 (230) bps 160 - 470 (230) bps
Corporate and government fixed maturities 446 490Liquidity70 - 1,650 (300) bps80 - 1,300 (340) bps
Total fixed maturities600647
Equity securities
Private equity securities7074 Price-to-EBITDA multiples 5.0 - 12.0 (8.9) 4.2 - 11.6 (8.5)
Hybrid equity securities33-Liquidity270 - 270 (270) bps
Total equity securities10374
Subtotal703721
Securities not priced by the Company(1)2955
Total Level 3 securities$732$776
(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
(In millions)Fixed Maturities & Equity SecuritiesGMIB AssetsGMIB Liabilities
201720162017201620172016
Balance at January 1, $776$726$799$907$(780)$(885)
Gains (losses) included in shareholders' net income
GMIB fair value gain/(loss)--31(47)(31)47
Other25(18)1-(5)(3)
Total gains (losses) included in shareholders' net income25(18)32(47)(36)44
Losses included in other comprehensive income(11)(1)----
Gains required to adjust future policy benefits for settlement annuities (1)729----
Purchases, sales, settlements
Purchases13396----
Sales(95)(140)----
Settlements(74)(74)(54)(61)5461
Total purchases, sales and settlements(36)(118)(54)(61)5461
Transfers into/(out of) Level 3
Transfers into Level 3275338----
Transfers out of Level 3(304)(180)----
Total transfers into/(out of) Level 3(29)158----
Balance at December 31,$732$776$777$799$(762)$(780)
Total gains (losses) included in shareholders' net income attributable to instruments held at the reporting date$(9)$(18)$32$(47)$(36)$44
(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
20172016201720162017201620172016
Guaranteed separate accounts (See Note 21)$215$238$308$262$-$-$523$500
Non-guaranteed separate accounts (1)1,5361,3685,2984,8852923317,1266,584
Subtotal$1,751$1,606$5,606$5,147$292$3317,6497,084
Non-guaranteed separate accounts priced at NAV as a practical expedient (1)774856
Total separate account assets$8,423$7,940
(1) Non-guaranteed separate accounts included $3.9 billion as of December 31, 2017 and $3.7 billion as of December 31, 2016 in assets supporting the Company's pension plans, including $0.3 billion classified in Level 3 for both periods and $0.8 billion as of December 31, 2017 and $0.9 billion as of December 31, 2016 priced at NAV as a practical expedient for each year.
Changes in level 3 separate account assets
(In millions)20172016
Balance at January 1 $ 331 $ 297
Policyholder gains (losses)342
Purchases, issuances, settlements
Purchases3322
Sales(53)(11)
Settlements(13)(18)
Total purchases, sales and settlements(33)(7)
Transfers into/(out of) Level 3
Transfers into Level 3765
Transfers out of Level 3(47)(26)
Total transfers into/(out of) Level 3:(40)39
Balance at December 31$292$331
Separate account assets priced at net asset value
UnfundedData as of December 31, 2017 and 2016
CommitmentsRedemption Frequency
Fair Value as ofas of(if currentlyRedemption Notice
(In millions)December 31, 2017December 31, 2016December 31, 2017eligible)Period
Securities partnerships$458 $ 424 $ 365Not applicableNot applicable
Real estate funds239231-Quarterly45-90 days
Hedge funds77201-Up to annually, varying by fund30-90 days
Total$774$856$365
Financial instruments not carried at fair value
(In millions)December 31, 2017December 31, 2016
Classification in Fair Value HierarchyFair ValueCarrying ValueFair ValueCarrying Value
Commercial mortgage loans Level 3 $ 1,766 $ 1,761 $ 1,682 $ 1,666
Contractholder deposit funds, excluding universal life productsLevel 3$1,121$1,119$1,215$1,212
Long-term debt, including current maturities, excluding capital leasesLevel 2 $ 5,730 $ 5,321 $ 5,460 $ 4,991
v3.8.0.1
Investments (Tables)
 12 Months Ended
Dec. 31, 2017
Investment [Line Items]  
Other long-term investments
Unfunded
Fair value as of December 31,Commitments as of
(In millions)20172016December 31, 2017
Real estate investments$591$738$270
Securities partnerships863650876
Other647432
Total$1,518$1,462$1,178
Schedule of short-term investments and cash equivalents
December 31,December 31,
(In millions)20172016
Corporate securities$1,143$2,234
Federal government securities$604$378
Foreign government securities$159$94
Money market funds$12$11
Components of pre-tax net investment income
(In millions)201720162015
Fixed maturities$946$899$879
Equity securities1443
Commercial mortgage loans8191112
Policy loans697272
Other long-term investments12498116
Short-term investments and cash422614
Total investment income1,2761,1901,196
Less investment expenses504343
Net investment income$1,226$1,147$1,153
Net investment income for separate accounts (1)$225$236$262
(1) Net investment income for these investments is excluded from the Company's revenues.
Realized gains and losses on investments
(In millions)201720162015
Fixed maturities$25$23$(82)
Equity securities52(1)36
Commercial mortgage loans(1)4(2)
Other investments, including derivatives161143105
Net realized investment gains, before income taxes23716957
Less income taxes816017
Net realized investment gains$156$109$40
Realized investment gains that are excluded from the Company's revenues
(In millions)201720162015
Separate accounts $ 157 $ 16 $ 117
Investment gains required to adjust future policy benefits for the run-off settlement annuity business$20$63$114
Sales information for available-for-sale fixed maturities and equity securities
(In millions)201720162015
Proceeds from sales $ 2,012 $ 1,544 $ 1,555
Gross gains on sales$103$83$85
Gross losses on sales $ (18) $ (7) $ (13)
Fixed Maturities [Member]  
Investment [Line Items]  
Investment maturities
Amortized Fair
(In millions)CostValue
Due in one year or less$1,511$1,522
Due after one year through five years6,6556,848
Due after five years through ten years9,3779,599
Due after ten years3,8554,672
Mortgage and other asset-backed securities469497
Total$21,867$23,138
Gross unrealized appreciation (depreciation) on fixed maturities
AmortizedUnrealizedUnrealizedFair
(In millions)CostAppreciationDepreciationValue
December 31, 2017
Federal government and agency$541 $ 239 $ (1) $ 779
State and local government1,19693(2)1,287
Foreign government2,360142(15)2,487
Corporate17,301868(81)18,088
Mortgage and other asset-backed46929(1)497
Total$21,867$1,371$(100)$23,138
Investments supporting liabilities of the Company's run-off settlement annuity business (included in above total) (1)$2,200 $ 681 $ (2) $ 2,879
December 31, 2016
Federal government and agency$658 $ 223 $ (4)$877
State and local government1,34299(6)1,435
Foreign government1,998129(14)2,113
Corporate15,483716(149)16,050
Mortgage and other asset-backed46129(4)486
Total$19,942$1,196$(177)$20,961
Investments supporting liabilities of the Company's run-off settlement annuity business (included in above total) (1)$2,196 $ 539 $ (15)$2,720
(1) Net unrealized appreciation for these investments is excluded from accumulated other comprehensive income.
Fixed maturities with a decline in fair value from amortized cost
December 31, 2017December 31, 2016
Fair Amortized UnrealizedNumberFair Amortized UnrealizedNumber
(Dollars in millions)ValueCostDepreciationof IssuesValueCostDepreciationof Issues
One year or less
Investment grade$3,272$3,309$(37)797$4,346$4,475$(129)992
Below investment grade$543$553$(10)643$724$736$(12)591
More than one year
Investment grade$1,503$1,549$(46)373$308$327$(19)53
Below investment grade$155$162$(7)42$186$203$(17)28
Commercial Mortgage Loans [Member]  
Investment [Line Items]  
Commercial mortgage loans by property type and geographic region
(In millions)20172016
Property type
Office buildings$652$592
Apartment buildings608428
Industrial197302
Hotels 141205
Retail facilities135139
Other28-
Total$1,761$1,666
U.S. geographic region
Pacific$841$714
South Atlantic210268
New England238227
Central 237239
Middle Atlantic203186
Mountain3232
Total$1,761$1,666
Credit risk profile of commercial mortgage loan portfolio
(Dollars in millions)20172016
Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value RatioCarrying ValueAverage Debt Service Coverage RatioAverage Loan-to-Value Ratio
Below 60%$1,1092.03$9432.06
60% to 79%6522.24 7021.89
80% to 100%--21-
Total$1,7612.1157% $ 1,6661.9557%
v3.8.0.1
Derivative Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swaps [Member]  
Derivative [Line Items]  
Schedule of derivative instruments
Fair Value Hedge of Long-Term Corporate DebtNotional Value (in millions)
Type of instrument. Interest rate swap contracts20172016
$750$750
Purpose. To convert a portion of the interest rate exposure on the Company's long-term debt from fixed to variable rates. This more closely aligns the Company's interest expense with the interest income received on its cash equivalent and short-term investment balances. The variable rates are benchmarked to LIBOR.
Terms of derivative instruments. The Company provides upfront margin and settles fair value changes and net interest between variable and fixed rates daily with a central clearinghouse.
Accounting. 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. The critical terms of these swaps match those of the long-term debt being hedged. As a result, 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. The net impact from the hedge reported in other operating expenses reflects interest expense on the hedged debt at the variable interest rate.
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Foreign Currency Swaps [Member]  
Derivative [Line Items]  
Schedule of derivative instruments
Fair Value Hedges of Fixed Maturity BondsNotional Value (in millions)
Type of instrument. Foreign currency swap contracts20172016
$318$78
Purpose. To hedge the foreign exchange related changes in fair values of the Company's fixed maturity bonds.
Terms of derivative instruments. The Company periodically exchanges cash flows between two currencies for both principal and interest. Foreign currency swaps are Euros and British pounds and have terms for up to twelve years.
Accounting. Using fair value hedge accounting, fair values are reported in other long-term investments or accounts payable, accrued expenses, and other liabilities. Changes in fair values of the swap contracts, as well as changes in the fair values of the hedged bonds attributable to the hedged risk, are reported in other realized investment gains and losses.
Non designated [Member] | Forward Contracts [Member]  
Derivative [Line Items]  
Schedule of derivative instruments
Economic Hedges of a Fixed Maturity Bond PortfolioNotional Value (in millions)
Type of instrument. Foreign currency forward contracts20172016
$255$149
Purpose. To hedge the foreign exchange related changes in fair values of a U.S. dollar-denominated fixed maturity bond portfolio to reflect the local currency for one of the Company's foreign subsidiaries.
Terms of derivative instruments. The Company agrees to purchase South Korean won in exchange for U.S. dollars at a future date, generally within three months from the contracts' trade dates.
Accounting. As these arrangements were not designated as accounting hedges, fair values are reported in short-term investments or accounts payable, accrued expenses, and other liabilities, and changes in fair values are reported in other realized investment gains and losses.
v3.8.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss) [Abstract]  
Changes in accumulated other comprehensive income (loss)
(in millions)201720162015
Securities
Beginning balance$362$418$620
Appreciation (depreciation) on securities35(48)(389)
Tax (expense) benefit(19)6157
Net appreciation (depreciation) on securities16(42)(232)
Reclassification adjustment for (gains) losses included in shareholders' net income (net realized investment gains)(77)(22)46
Tax benefit (expense)278(16)
Net (gains) losses reclassified from AOCI to net income(50)(14)30
Other comprehensive (loss), net of tax(34)(56)(202)
Ending balance$328$362$418
Derivatives
Beginning balance$3$7$(8)
(Depreciation) appreciation on derivatives(1)-10
Tax (expense) --(3)
Net (depreciation) appreciation on derivatives(1)-7
Reclassification adjustment for losses included in shareholders' net income (other operating expenses)1112
Reclassification adjustment for (gains) included in shareholders' net income (net realized investment gains)(4)(7)-
Tax benefit (expense)12(4)
Net (gains) losses reclassified from AOCI to net income(2)(4)8
Other comprehensive (loss) income , net of tax(3)(4)15
Ending balance$-$3$7
Translation of foreign currencies
Beginning balance$(369)$(274)$(62)
Translation of foreign currencies309(95)(224)
Tax (expense) benefit(5)-12
Net translation of foreign currencies304(95)(212)
Ending balance$(65)$(369)$(274)
Postretirement benefits liability
Beginning balance$(1,378)$(1,401)$(1,486)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other operating expenses)646468
Reclassification adjustment for settlement (other operating expenses)7--
Tax (expense) benefit(24)(22)(23)
Net adjustments reclassified from AOCI to net income474245
Valuation update(22)(29)63
Tax benefit (expense) 810(23)
Net change due to valuation update(14)(19)40
Other comprehensive income (loss), net of tax332385
Ending balance$(1,345)$(1,378)$(1,401)
v3.8.0.1
Pension and Other Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Projected benefit obligations and assets
Pension Other Postretirement
BenefitsBenefits
(In millions)2017201620172016
Change in benefit obligation
Benefit obligation, January 1$4,888$4,934$277$295
Service cost32--
Interest cost186199911
Loss from past experience181(1)57(1)12
Benefits paid from plan assets(277)(284)(3)(3)
Benefits paid — other(12)(20)(26)(28)
Benefit obligation, December 314,9694,888258277
Change in plan assets
Fair value of plan assets, January 13,9773,98158
Actual return on plan assets418279--
Benefits paid(277)(284)(3)(3)
Contributions1631--
Fair value of plan assets, December 314,2813,97725
Funded status$(688)$(911)$(256)$(272)
(1) Loss in each year reflects a decrease in the discount rate, partially offset by a favorable change in the mortality assumption.
Expected benefit payments
Pension Other Postretirement
(In millions)BenefitsBenefits
2018$340$27
2019$334$26
2020$325$25
2021$325$23
2022$324$22
2023-2027$1,573$87
Postretirement benefits liability adjustment included in AOCI
Pension Other
BenefitsPostretirement Benefits
(In millions)2017201620172016
Unrecognized net (losses) $(2,113)$(2,163)$-$-
Unrecognized prior service cost(6)(6)4649
Postretirement benefits liability adjustment$(2,119)$(2,169)$46$49
Components of net defined benefit plan costs
Pension BenefitsOther Postretirement Benefits
(In millions)201720162015201720162015
Service cost$3$2$2$-$-$-
Interest cost18619919491111
Expected long-term return on plan assets(260)(249)(267)---
Amortization of:
Net loss from past experience66657011-
Prior service cost-1-(3)(3)(3)
Settlement loss7-----
Net plan cost$2$18$(1)$7$9$8
Assumptions for pension and other postretirement benefit plans
20172016
Discount rate:
Pension benefit obligation3.51%3.95%
Other postretirement benefit obligation3.37%3.70%
Pension benefit cost3.95%4.17%
Other postretirement benefit cost3.70%3.89%
Expected long-term return on plan assets:
Pension benefit cost7.25%7.25%
Other postretirement benefit cost5.00%5.00%
Mortality table for pension and postretirement benefit obligationsRP 2014 with MP 2017 projection scaleRP 2014 with MP 2016 projection scale
Annual expense for 401(k) plans
(In millions)201720162015
Expense$122$113$106
Pension Benefits [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Fair value of pension plan assets
(In millions)20172016
Fixed maturities:
Federal government and agency$1$1
Corporate1,1241,125
Asset-backed2222
Fund investments 884630
Total fixed maturities2,0311,778
Equity securities:
Domestic689681
International, including funds and pooled separate accounts (1)476350
Total equity securities1,1651,031
Securities partnerships457424
Real estate funds, including pooled separate accounts (1)300289
Commercial mortgage loans140129
Hedge funds73196
Guaranteed deposit account contract6367
Cash equivalents and other current assets, net5263
Total pension assets at fair value $ 4,281 $ 3,977
(1) A pooled separate account has several participating benefit plans and each owns a share of the total pool of investments.
v3.8.0.1
Employee Incentive Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Employee Incentive Plan Aggregate Disclosures [Line Items]  
Compensation cost
(In millions)201720162015
Total compensation cost for shared-based awards$178$128$111
Tax benefits recognized$79$57$24
Information for stock options exercised
Options Options
OutstandingExercisable
Number (in thousands)6,1563,894
Total intrinsic value (in millions)$630$490
Weighted average exercise price$100.79 $ 77.36
Weighted average remaining contractual life6.65.5
Black-Scholes option-pricing model assumptions
201720162015
Dividend yield0.0%0.0%0.0%
Expected volatility35.0%35.0%35.0%
Risk-free interest rate1.8%1.2%1.3%
Expected option life4.3 years4.3 years4.3 years
Weighted average fair value of options$46.38$42.01$36.40
Status of, and changes in, common stock options
(Options in thousands)201720162015
Weighted Weighted Weighted
AverageAverageAverage
OptionsExercise PriceOptionsExercise PriceOptionsExercise Price
Outstanding - January 17,097$82.016,433$68.867,331$51.84
Granted1,230$149.171,336$139.201,410$120.94
Exercised(2,072)$63.41(577)$62.09(2,146)$43.63
Expired or canceled(99)$138.41(95)$117.18(162)$86.04
Outstanding - December 316,156$100.797,097$82.016,433$68.86
Options exercisable at year-end3,894$77.364,409$58.363,414$46.55
Status of, and changes in, restricted stock grants and units
(Awards in thousands)201720162015
Weighted Average Fair Value at Award DateWeighted Average Fair Value at Award DateWeighted Average Fair Value at Award Date
Grants/UnitsGrants/UnitsGrants/Units
Outstanding - January 11,309$97.781,642$72.582,121$53.59
Awarded451$155.21315$138.61352$121.93
Vested(409)$67.09(591)$50.01(736)$41.99
Forfeited(56)$121.74(57)$92.51(95)$68.31
Outstanding - December 311,295$126.441,309$97.781,642$72.58
Status of, and changes in, strategic performance shares
201720162015
WeightedWeightedWeighted
Average Fair ValueAverage Fair ValueAverage Fair Value
(Awards in thousands)Sharesat Award DateSharesat Award DateSharesat Award Date
Outstanding - January 1942$109.141,188$81.681,547$59.20
Awarded275$150.06286$139.05311$121.78
Vested(386)$78.91(494)$60.15(608)$45.51
Forfeited(53)$138.19(38)$112.70(62)$76.33
Outstanding - December 31778$136.57942$109.141,188$81.68
Employee Stock Option [Member]  
Employee Incentive Plan Aggregate Disclosures [Line Items]  
Compensation cost
(In millions)201720162015
Stock options compensation cost$52$53$42
Information for stock options exercised
(In millions)201720162015
Intrinsic value of options exercised$218$41$179
Cash received for options exercised$131$36$94
Tax benefit from options exercised$41$11$42
Shares available for award / Fair value of vested shares
(In millions)201720162015
Common shares available for award14.06.88.6
Restricted Stock Grants And Units [Member]  
Employee Incentive Plan Aggregate Disclosures [Line Items]  
Compensation cost
(In millions)201720162015
Restricted stock compensation cost$53$40$33
Shares available for award / Fair value of vested shares
(In millions)201720162015
Fair value of vested restricted stock$62$82$92
Performance Shares [Member]  
Employee Incentive Plan Aggregate Disclosures [Line Items]  
Compensation cost
(In millions)201720162015
Strategic performance shares compensation cost$40$35$36
Shares available for award / Fair value of vested shares
201720162015
(Shares in thousands; $ in millions)SharesFair ValueSharesFair ValueSharesFair Value
Shares of Cigna common stock distributed upon SPS vesting476$70768$109972$119
v3.8.0.1
Goodwill, Other Intangibles, and Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2017
Goodwill Other Intangibles And Property And Equipment [Abstract]  
Goodwill activity
(In millions)20172016
Balance at January 1,$5,980 $ 6,019
Goodwill acquired, net1541
Impact of foreign currency translation30(40)
Balance at December 31,$6,164$5,980
Components of other assets, including other intangbiles
AccumulatedNet Carrying
(In millions)CostAmortizationValue
2017
Customer relationships $1,280$1,056$224
Other 291170121
Total reported in other assets, including other intangibles1,5711,226345
Value of business acquired (reported in deferred policy acquisition costs)23286146
Total other intangible assets $1,803$1,312$491
2016
Customer relationships $1,256$965$291
Other 284151133
Total reported in other assets, including other intangibles1,5401,116424
Value of business acquired (reported in deferred policy acquisition costs)23268164
Total other intangible assets $1,772$1,184$588
Components of property and equipment
AccumulatedNet Carrying
(In millions)CostAmortizationValue
2017
Internal-use software$2,991 $ 2,184 $ 807
Other property and equipment
Assets recorded under capital leases (1)493118
Other property and equipment not recorded under capital leases1,573835738
Total other property and equipment1,622866756
Total property and equipment$4,613$3,050$1,563
2016
Internal-use software$2,766$1,997$769
Other property and equipment
Assets recorded under capital leases (1)874938
Other property and equipment not recorded under capital leases1,511782729
Total other property and equipment1,598831767
Total property and equipment$4,364$2,828$1,536
(1) Current capital lease agreements are for equipment and generally have a term of 48 months with the equipment expected to be returned to the lessor at termination.
Components of depreciation and amortization
(In millions)201720162015
Internal-use software $298$303$288
Other property and equipment (1)153158160
Value of business acquired (reported in deferred policy acquisition costs)182018
Other intangibles (2)97129119
Total depreciation and amortization$566$610$585
(1) Other property and equipment includes amortization on assets recorded under capital leases of $14 million in 2017, $20 million in 2016 and $22 million in 2015.
(2) Includes the one-time $23 million bargain purchase gain on an acquisition in 2015.
Pre-tax amortization for intangible assets, including internal-use software
(In millions)Pre-tax Amortization
2018$387
2019$299
2020$177
2021$114
2022$88
v3.8.0.1
Leases and Rentals (Tables)
 12 Months Ended
Dec. 31, 2017
Leases and Rentals [Abstract]  
Net rental expenses for operating leases
(In millions)201720162015
Net rental expense for operating leases$162$151$165
Future net minimum rental payments under non-cancelable operating leases
Scheduled Maturities
(In millions)Long-term Debt (1)Capital Leases
2018$131$9
2019$-$8
2020$550$1
2021$378$-
2022$750$-
Maturities after 2022$3,550$-
(1) Long-term debt maturity amounts exclude capital leases.

(In millions)Operating Lease Payments
2018$130
2019$113
2020$94
2021$73
2022$58
2023 and thereafter$114
v3.8.0.1
Shareholders Equity and Dividend Restrictions (Tables)
 12 Months Ended
Dec. 31, 2017
Shareholders Equity And Dividend Restrictions [Abstract]  
Statutory net income and surplus
(In billions)201720162015
Net income $2.5$2.0$2.1
Surplus$10.4$8.5$8.0

(In billions)2017
Minimum statutory surplus required by regulators$3.2
Investments on deposit with regulatory bodies$0.6
Maximum dividend distributions permitted in 2018 without regulatory approval$1.6
Maximum loans to the parent company permitted without regulatory approval$1.3
Restricted GAAP net assets of Cigna Corporation's subsidiaries$12.0
v3.8.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2017
Income Taxes [Abstract]  
Componenets of income taxes
(In millions)201720162015
Current taxes
U.S. income taxes$974$935$1,076
Foreign income taxes1229593
State income taxes363260
Total current taxes1,1321,0621,229
Deferred taxes (benefits)
U.S. income taxes2046922
Foreign income taxes (benefits)399(6)
State income taxes (benefits)(1)(4)5
Total deferred taxes2427421
Total income taxes$1,374$1,136$1,250
Reconciliation of total income taxes to the amount computed using the nominal federal income tax rate
(In millions)201720162015
Tax expense at nominal rate$1,262$1,043$1,164
Effect of U.S. tax reform legislation232--
Effect of undistributed foreign earnings(70)(57)(67)
Health insurance industry tax-108109
State income tax (net of federal income tax benefit)231842
Other(73)242
Total income taxes$1,374$1,136$1,250
Deferred income tax assets and liabilities
(In millions)20172016
Deferred tax assets
Employee and retiree benefit plans$279$481
Other insurance and contractholder liabilities352460
Net operating losses105128
Other accrued liabilities101166
Other 91140
Deferred tax assets before valuation allowance9281,375
Valuation allowance for deferred tax assets(72)(87)
Deferred tax assets, net of valuation allowance8561,288
Deferred tax liabilities
Depreciation and amortization496781
Unrealized appreciation on investments and foreign currency translation 102149
Other22554
Total deferred tax liabilities823984
Net deferred income tax assets$33$304
Reconciliation of unrecognized tax benefits
(In millions)201720162015
Balance at January 1, $31$31$26
Increase due to current year positions7107
Reduction related to settlements with taxing authorities(1)(2)-
Reduction related to lapse of applicable statute of limitations(2)(8)(2)
Balance at December 31,$35$31$31
v3.8.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2017
Segment Information [Abstract]  
Special item charges
(In millions)
Description of Special Item and Financial Statement Line Item(s)After-taxBefore-tax
Year ended December 31, 2017
Charges associated with U.S. tax reform
- Other operating expenses (see Note 20 for details)$(36)$(56)
- Tax expense (see Note 20 for details)232-
Total charges associated with U.S. tax reform$196$(56)
Debt extinguishment costs (Other operating expenses, see Note 5 for details)$209$321
Long-term care guaranty fund assessment (Other operating expenses, see Note 21(D) for details)$83$129
Transaction-related costs (Other operating expenses, see Note 3 for details)$33$126
Year ended December 31, 2016
Transaction-related costs (Other operating expenses, see Note 3 for details)$147$166
Risk corridor allowance (Other operating expenses, see page ##EndofNotesPage in this Note for details)$80$124
Charges associated with litigation matters (Other operating expenses, see Note 21(E) for a discussion of litigation charges)$25$40
Year ended December 31, 2015
Debt extinguishment costs (Other operating expenses, see Note 5 for details)$65$100
Transaction-related costs (Other operating expenses, see Note 3 for details)$57$66
Summarized segment financial information
(In millions)Global Health CareGlobal Supplemental BenefitsGroup Disability and LifeOther OperationsCorporateTotal
2017
Premiums$24,538 $ 3,684 $ 3,985 $ 112 $ (12) $ 32,307
Fees and other revenues (1)4,7226610610(37)4,867
Net investment income378122350346301,226
Mail order pharmacy revenues2,979----2,979
Total operating revenues32,6173,8724,441468(19)41,379
Net realized investment gains (losses)1363274(5)-237
Total revenues32,7533,9044,515463(19)41,616
Depreciation and amortization477543014566
Total benefits and expenses29,4403,4074,04431680338,010
Income (loss) before income taxes3,313497471147(822)3,606
Income taxes (benefits) and net loss attributable to noncontrolling interests1,031195113222(192)1,369
Shareholders' net income (loss) by segment2,282302358(75)(630)2,237
After-tax adjustments to reconcile to adjusted income from operations
Net realized investment (gains) losses(88)(24)(49)41(156)
Amortization of other acquired intangible assets, net4818---66
Special items
U.S. tax reform(137)73(39)138161196
Debt extinguishment costs----209209
Long-term care guaranty fund assessment 68-15--83
Transaction-related costs----3333
Adjusted income (loss) from operations$2,173$369$285$67$(226)$2,668
(In millions)Global Health CareGlobal Supplemental BenefitsGroup Disability and LifeOther OperationsCorporateTotal
2016
Premiums$23,295$3,226$4,002$103$-$30,626
Fees and other revenues (1)4,623499811(21)4,760
Net investment income315110343358211,147
Mail order pharmacy revenues2,966----2,966
Total operating revenues31,1993,3854,443472-39,499
Net realized investment gains119(5)59(5)1169
Total revenues31,3183,3804,502467139,668
Depreciation and amortization526542811610
Total benefits and expenses28,4673,0524,27336952836,689
Income (loss) before taxes2,85132822998(527)2,979
Income taxes (benefits) and net loss attributable to noncontrolling interests1,100606530(143)1,112
Shareholders' net income (loss) by segment1,75126816468(384)1,867
After-tax adjustments to reconcile to adjusted income from operations
Net realized investment (gains)(78)6(39)2-(109)
Amortization of other acquired intangible assets, net7420---94
Special items
Transaction-related costs----147147
Risk corridor allowance80----80
Charges associated with litigation matters25----25
Adjusted income (loss) from operations$1,852 $ 294 $ 125 $ 70 $ (237) $ 2,104
(1) Includes the Company's share of the earnings of its joint ventures in China and India in the Global Supplemental Benefits segment.
(In millions)Global Health CareGlobal Supplemental BenefitsGroup Disability and LifeOther OperationsCorporateTotal
2015
Premiums$22,696$3,000$3,843$103$-$29,642
Fees and other revenues (1)4,357469113(19)4,488
Net investment income34010333736941,153
Mail order pharmacy revenues2,536----2,536
Total operating revenues29,9293,1494,271485(15)37,819
Net realized investment gains43-59-57
Total revenues29,9723,1494,276494(15)37,876
Depreciation and amortization526312611585
Total benefits and expenses27,0282,8493,79637450234,549
Income (loss) before taxes2,944300480120(517)3,327
Income taxes (benefits) and net income attributable to noncontrolling interests1,1503315240(142)1,233
Shareholders' net income (loss) by segment1,79426732880(375)2,094
After-tax adjustments to reconcile to adjusted income from operations
Net realized investment (gains)(30)(1)(4)(5)-(40)
Amortization of other acquired intangible assets, net (2)84(4)---80
Special items
Debt extinguishment costs----6565
Transaction-related costs----5757
Adjusted income (loss) from operations$1,848$262$324$75$(253)$2,256
(1) Includes the Company's share of the earnings of its joint ventures in China and India in the Global Supplemental Benefits segment.
(2) Includes a $23 million bargain purchase gain for a 2015 acquisition.
Revenue from external customers
(In millions)201720162015
Global Health Care premiums by product:
Guaranteed cost$6,245$4,610$4,761
Experience-rated2,7412,3832,329
Stop loss3,4833,0822,701
International health care1,9341,8591,834
Dental1,7911,5861,392
Medicare5,5346,6216,142
Medicaid1,0611,1461,102
Medicare Part D7641,1221,589
Other985886846
Total premiums24,53823,29522,696
Fees4,5034,3684,107
Total Global Health Care premiums and fees29,04127,66326,803
Disability2,0912,0451,899
Life, Accident and Supplemental Health5,7045,3005,054
Mail order pharmacy 2,9792,9662,536
Other338378374
Total$40,153$38,352$36,666
Foreign and U.S. revenues from external customers
(In millions)201720162015
United States $ 36,128 $ 34,672 $ 33,185
South Korea1,8921,6661,521
All other foreign countries2,1332,0141,960
Total$40,153$38,352$36,666
v3.8.0.1
Quarterly Financial Data (Tables)
 12 Months Ended
Dec. 31, 2017
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data
(In millions, except per share amounts)Three Months Ended
March 31,June 30,September 30,December 31,
Consolidated Results
2017
Total revenues$10,385$10,318$10,382$10,531
Income before income taxes 8901,134824758
Shareholders' net income 598 (1)813 (1)560 (1)266 (1)
Shareholders' net income per share1
Basic2.343.202.251.09
Diluted2.303.152.211.07
2016
Total revenues$9,884$9,960$9,880$9,944
Income before income taxes 819813742605
Shareholders' net income519 (1)510 (1)456 (1)382 (1)
Shareholders' net income per share1
Basic2.042.001.791.49
Diluted2.001.971.761.47
Stock and dividend data
2017
Price range of common stock — high$154.83$173.21$188.36$212.46
— low$133.52$146.70$166.81$183.08
Dividends declared per common share$0.04$-$-$-
2016
Price range of common stock — high$147.93$142.91$148.99$142.00
— low$123.54$121.87$123.53$115.03
Dividends declared per common share$0.04$-$-$-
(1) Shareholders' net income includes the following after-tax charges (benefits), described in Note 22 to the Consolidated Financial Statements:
March 31,June 30,September 30,December 31,
2017 U.S. tax reform$-$-$-$196
2017 Debt extinguishment costs--209-
2017 Long-term care guaranty fund assessment83---
2017 Transaction-related costs49(47)625
Total 2017 charges (benefits)$132$(47)$215$221
2016 Risk corridor allowance$-$-$-$80
2016 Transaction-related costs36264639
2016 Charges associated with litigation matters--25-
Total 2016 charges$36$26$71$119
v3.8.0.1
Schedule I - Summary of Investments (Tables)
 12 Months Ended
Dec. 31, 2017
Summary of Investments, Other than Investments in Related Parties [Abstract]  
Summary Of Investments Other Than Investments In Related Parties [Table Text Block]
Amount at
which shown in
(in millions)Fair the Consolidated
Type of InvestmentCostValue Balance Sheet
Fixed maturities
Bonds
United States government and government
agencies and authorities $541$779$779
States, municipalities and political subdivisions 1,1961,2871,287
Foreign governments 2,3602,4872,487
Public utilities 2,1872,3422,342
All other corporate bonds 15,10715,73915,739
Mortgage and other asset-backed469497497
Redeemable preferred stocks 777
Total fixed maturities 21,86723,13823,138
Equity securities
Common stocks
Industrial, miscellaneous and all other 485496496
Non-redeemable preferred stocks 1049292
Total equity securities 589588588
Commercial mortgage loans on real estate 1,7611,761
Policy loans 1,4151,415
Other long-term investments 1,5181,518
Short-term investments 199199
Total investments $27,349$28,619
v3.8.0.1
Schedule II - Condensed Financial Information of Registrant (Tables)
 12 Months Ended
Dec. 31, 2017
Condensed Financial Information of Cigna Corporation (Registrant) [Abstract]  
Condensed Financial Information Of Parent Company Only, Statements Of Income
For the years ended
December 31,
(in millions)201720162015
Operating expenses
Interest $237$244$246
Intercompany interest 1832
Debt extinguishment costs321-100
Other 204281147
TOTAL OPERATING EXPENSES780528495
Loss before income taxes (780)(528)(495)
Income tax benefit (194)(146)(135)
Loss of parent company (586)(382)(360)
Equity in income of subsidiaries2,8232,2492,454
SHAREHOLDERS' NET INCOME 2,2371,8672,094
Shareholders' other comprehensive income (loss)
Net unrealized (depreciation) on securities(34)(56)(202)
Net unrealized (depreciation) appreciation on derivatives(3)(4)15
Net translation of foreign currencies304(95)(212)
Postretirement benefits liability adjustment332385
Shareholders' other comprehensive income (loss):300(132)(314)
SHAREHOLDERS' COMPREHENSIVE INCOME $2,537$1,735$1,780

See Notes to Financial Statements on the following pages.
Condensed Financial Information Of Parent Company Only, Balance Sheets
As of December 31,
(in millions)20172016
Assets
Cash and cash equivalents $9$18
Short-term investments6357
Investments in subsidiaries 22,65520,315
Intercompany receivable200173
Other assets 252415
TOTAL ASSETS $ 23,179 $ 20,978
Liabilities
Intercompany payable $ 2,980 $ 998
Short-term debt231257
Long-term debt 5,1124,658
Other liabilities 1,1211,342
TOTAL LIABILITIES9,4447,255
Shareholders' Equity
Common stock (shares issued, 296; authorized, 600)7474
Additional paid-in capital 2,9402,892
Accumulated other comprehensive loss(1,082)(1,382)
Retained earnings 15,82413,855
Less treasury stock, at cost (4,021)(1,716)
TOTAL SHAREHOLDERS' EQUITY13,73513,723
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 23,179 $ 20,978

See Notes to Financial Statements on the following pages.
Condensed Financial Information Of Parent Company Only, Statements Of Cash Flows
For the years ended
December 31,
(in millions)201720162015
Cash Flows from Operating Activities
Shareholders' net income $2,237$1,867$2,094
Adjustments to reconcile shareholders' net income
to net cash provided by operating activities
Equity in income of subsidiaries (2,823)(2,249)(2,454)
Dividends received from subsidiaries 758580880
Other liabilities (224)(9)112
Debt extinguishment costs321-100
Other, net (1)333187112
NET CASH PROVIDED BY OPERATING ACTIVITIES (1)602376844
Cash Flows from Investing Activities
Short-term investment purchased, net(6)(3)(54)
Other, net (11)(8)(14)
NET CASH (USED IN) INVESTING ACTIVITIES(17)(11)(68)
Cash Flows from Financing Activities
Net change in amounts due to (from) affiliates 1,955(78)(161)
Net change in short-term debt100(100)-
Payments for debt extinguishment (313)-(87)
Repayment of long-term debt (1,250)-(851)
Net proceeds on issuance of long-term debt 1,581-894
Issuance of common stock 13136154
Common dividends paid (10)(10)(10)
Repurchase of common stock (2,725)(139)(671)
Tax withholding on stock compensation (1)(61)(72)(79)
Other(2)--
NET CASH (USED IN) FINANCING ACTIVITIES (1)(594)(363)(811)
Net (decrease) increase in cash and cash equivalents (9)2(35)
Cash and cash equivalents, beginning of year 181651
Cash and cash equivalents, end of year $9$18$16
(1) As required in adopting Accounting Standard Update ("ASU") 2016-09, the Company retrospectively reclassified $79 million cash payments from operating to financing activities in 2015. These payments were related to employee tax obligations associated with stock compensation. The comparable amounts reported in financing activities were $61 million in 2017 and $72 million in 2016.

See Notes to Financial Statements on the following pages.
v3.8.0.1
Schedule III - Supplementary Insurance Information (Tables)
 12 Months Ended
Dec. 31, 2017
Supplementary Insurance Information [Abstract]  
Supplementary Insurance Information For Insurance Companies Disclosure [Table Text Block]
DeferredFuture policyMedical costs
policybenefits andpayable and
(in millions)acquisitioncontractholderunpaidUnearned
Segmentcostsdeposit fundsclaims(1)premiums
Year Ended December 31, 2017
Global Health Care $15$157$2,719$213
Global Supplemental Benefits 2,1763,746484490
Group Disability and Life 11,6864,4917
Other Operations 4512,64719314
Corporate ----
Total $2,237$18,236$7,887$724
Year Ended December 31, 2016
Global Health Care $16$161$2,532$170
Global Supplemental Benefits 1,7523,225384435
Group Disability and Life 11,7864,34213
Other Operations 4912,93419116
Corporate ----
Total $1,818$18,106$7,449$634
Year Ended December 31, 2015
Global Health Care $11$169$2,355$145
Global Supplemental Benefits 1,5933,006353453
Group Disability and Life 11,7144,00613
Other Operations 5413,03321518
Corporate ----
Total $1,659$17,922$6,929$629
(1) Unpaid claims balances reported in Corporate in 2015 have been retrospectively reclassified to the Group Disability and Life segment to conform to the presentation of unpaid claim balances in Note 8 to the Consolidated Financial Statements. These amounts represent elimination entries.

Amortization
of deferred
NetpolicyOther
investmentBenefit acquisitionoperating
SegmentPremiums(2)income(3)expenses(2)(4)expensesexpenses(5)
Year Ended December 31, 2017
Global Health Care $24,538$378$19,967$56$9,417
Global Supplemental Benefits3,6841222,0332591,115
Group Disability and Life 3,9853503,0761967
Other Operations 1123463426(32)
Corporate (12)30(12)-815
Total $32,307$1,226$25,406$322$12,282
Year Ended December 31, 2016
Global Health Care $23,295$315$19,009$47$9,411
Global Supplemental Benefits3,2261101,7842381,030
Group Disability and Life 4,0023433,3541918
Other Operations 103358339624
Corporate -21--528
Total $30,626$1,147$24,486$292$11,911
Year Ended December 31, 2015
Global Health Care $22,696$340$18,354$53$8,621
Global Supplemental Benefits3,0001031,659227963
Group Disability and Life 3,8433372,9341861
Other Operations 103369343526
Corporate -4--502
Total $29,642$1,153$23,290$286$10,973

  • Amounts presented are shown net of the effects of reinsurance. See Note 9 to the Consolidated Financial Statements included in this Form 10-K. Premiums in the Corporate segment represent the elimination of intercompany transactions.
  • The allocation of net investment income is based upon the identification of certain portfolios with specific segments, the mean reserve method, or a combination of both.
  • Benefit expenses include Global Health Care medical costs and other benefit expenses.
  • Other operating expenses includes mail order pharmacy costs, other operating expenses, and net amortization of other intangible assets. It excludes amortization of deferred policy acquisition expenses. In 2017, other operating expenses in the Other Operations segment includes a reduction of $56 million related to U.S. tax reform. See Note 20 to the Consolidated Financial Statements included in this Form 10-K.
v3.8.0.1
Schedule IV - Reinsurance (Tables)
 12 Months Ended
Dec. 31, 2017
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract]  
Supplemental Schedule Of Reinsurance Premiums For Insurance Companies [Table Text Block]
Percentage
Ceded toAssumedof amount
Grossotherfrom otherNetassumed
(in millions)amountcompaniescompaniesamountto net
Year Ended December 31, 2017
Life insurance in force$1,105,323$49,172$2,478$1,058,6290.2%
Premiums
Life insurance and annuities$2,307$233$22$2,0961.0%
Accident and health insurance30,09519130730,2111.0%
Total$32,402$424$329$32,3071.0%
Year Ended December 31, 2016
Life insurance in force$1,047,002$55,399$2,827$994,4300.3%
Premiums
Life insurance and annuities$2,881$310$22$2,5930.8%
Accident and health insurance27,87420336228,0331.3%
Total$30,755$513$384$30,6261.3%
Year Ended December 31, 2015
Life insurance in force$1,047,982$72,208$3,273$979,0470.3%
Premiums
Life insurance and annuities$2,886$335$106$2,6574.0%
Accident and health insurance26,92623529426,9851.1%
Total$29,812$570$400$29,6421.3%
v3.8.0.1
Schedule V - Valuation and Qualifying Accounts and Reserves (Tables)
 12 Months Ended
Dec. 31, 2017
Valuation and Qualifying Accounts and Reserves [Abstract]  
Schedule Of Valuation And Qualifying Accounts Disclosure [Table Text Block]
ChargedCharged
Balance at(Credited) to(Credited)Balance at
(in millions)beginningcosts andto otherOther end
Descriptionof yearexpenses (1)accountsdeductions (2)of year
2017
Investment asset valuation reserves
Commercial mortgage loans $5$1$-$(6)$-
Allowance for doubtful accounts
Premiums, accounts and notes receivable$200$19$(11)$(1)$207
Deferred tax asset valuation allowance $87$11$(26)$-$72
Reinsurance recoverables $3$-$-$-$3
2016
Investment asset valuation reserves
Commercial mortgage loans $15$-$-$(10)$5
Allowance for doubtful accounts
Premiums, accounts and notes receivable$75$134$(8)$(1)$200
Deferred tax asset valuation allowance $71$21$(5)$-$87
Reinsurance recoverables $3$-$-$-$3
2015
Investment asset valuation reserves
Commercial mortgage loans $12$7$-$(4)$15
Allowance for doubtful accounts
Premiums, accounts and notes receivable$101$(10)$(15)$(1)$75
Deferred tax asset valuation allowance $49$8$14$-$71
Reinsurance recoverables $4$-$(1)$-$3
(1) Amounts for 2017 and 2016 include risk corridor allowance. See Note 22 to the Consolidated Financial Statements for additional information.
(2) Amounts for commercial mortgage loans primarily reflect charge-offs upon sales and repayments, as well as transfers to foreclosed real estate.
v3.8.0.1
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Accounting Standards Update 2014-09 [Member]  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Material effect on Company's financial statements No
Accounting Standards Update 2016-01 [Member]  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Current carrying value of certain limited partnership interests to be reported at fair value upon adoption of ASU 2016-01 $ 203
Impact of new guidance on equity if adopted at reporting date $ 59
Accounting Standards Update 2016-16 [Member]  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Material effect on Company's financial statements No
Accounting Standards Update 2017-01 [Member]  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Material effect on Company's financial statements No
Accounting Standards Update 2017-07 [Member]  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Material effect on Company's financial statements No
Accounting Standards Update 2017-12 [Member]  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Material effect on Company's financial statements No
Accounting Standards Update 2016-02 [Member]  
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]  
Material effect on Company's financial statements Yes
v3.8.0.1
Summary of Significant Accounting Policies - Significant Accounting Policies (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accounting Policies [Abstract]      
Allowance for doubtful accounts and unrecoverable reinsurance $ 210 $ 203  
Amortization for policy acquisition costs recorded primarily in other operating expense $ 322 $ 292 $ 286
Percent of ASO fees at risk for performance guarantees 11.00%    
Minimum [Member]      
Future policy benefits interest rate assumptions 0.10%    
Maximum [Member]      
Future policy benefits interest rate assumptions 9.00%    
Percent of ASO fees reimbursed for performance guarantees 1.00%    
v3.8.0.1
Mergers and Acquistions (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Acquisitions and Dispositions [Abstract]                      
Transaction-related costs, before tax                 $ 126 $ 166 $ 66
Transaction-related costs, after-tax                 92 147 57
Tax (benefit) - previously non-deductible costs                 (59) 0 0
Transaction-related costs, net $ 25 $ 6 $ (47) $ 49 $ 39 $ 46 $ 26 $ 36 $ 33 $ 147 $ 57
v3.8.0.1
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Earnings Per Share [Abstract]                      
Shareholders' net income $ 266 $ 560 $ 813 $ 598 $ 382 $ 456 $ 510 $ 519 $ 2,237 $ 1,867 $ 2,094
Shares:                      
Weighted average                 250,892 255,360 256,149
Common stock equivalents                 4,180 4,287 4,443
Total shares                 255,072 259,647 260,592
EPS, basic $ 1.09 $ 2.25 $ 3.2 $ 2.34 $ 1.49 $ 1.79 $ 2 $ 2.04 $ 8.92 $ 7.31 $ 8.17
EPS, effect of dilution                 (0.15) (0.12) (0.13)
EPS, diluted $ 1.07 $ 2.21 $ 3.15 $ 2.3 $ 1.47 $ 1.76 $ 1.97 $ 2 $ 8.77 $ 7.19 $ 8.04
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]                      
Antidilutive options                 900 2,300 400
Common shares held in Treasury 52,178       39,276       52,178 39,276 39,601
v3.8.0.1
Debt - Short-term and Long-term Debt (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Sep. 14, 2017
Debt Instrument [Line Items]          
Commercial paper   $ 100 $ 0    
Current maturities of long-term debt   131 250    
Other, including capital leases   9 26    
Total short-term debt   240 276    
Long-term debt, carrying value   5,199 4,756    
Repayment of long-term debt $ 250 1,250 0 $ 851  
$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   $ 0 $ 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   $ 249 $ 252    
$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   $ 299 $ 301    
$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   $ 299 $ 302    
$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   $ 745 $ 744    
$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   $ 894 $ 893    
$600 million, 3.05% Notes due 2027 | Uncollateralized Debt [Member]          
Debt Instrument [Line Items]          
Long-term debt, face value   $ 600      
Long-term debt, stated interest rate   3.05%      
Long-term debt, carrying value   $ 594 0   $ 594
$259 million, 7.875% Debentures due 2027 [Member] | Uncollateralized Debt [Member]          
Debt Instrument [Line Items]          
Long-term debt, face value   $ 259 $ 300    
Long-term debt, stated interest rate   7.875% 7.875%    
Long-term debt, carrying value   $ 258 $ 299    
$45 million, 8.3% Step Down Notes due 2033 [Member] | Uncollateralized Debt [Member]          
Debt Instrument [Line Items]          
Long-term debt, face value   $ 45 $ 83    
Long-term debt, stated interest rate   8.30% 8.30%    
Long-term debt, carrying value   $ 45 $ 82    
$191 million, 6.15% Notes due 2036 [Member] | Uncollateralized Debt [Member]          
Debt Instrument [Line Items]          
Long-term debt, face value   $ 191 $ 500    
Long-term debt, stated interest rate   6.15% 6.15%    
Long-term debt, carrying value   $ 190 $ 498    
$121 million, 5.875% Notes due 2041 [Member] | Uncollateralized Debt [Member]          
Debt Instrument [Line Items]          
Long-term debt, face value   $ 121 $ 300    
Long-term debt, stated interest rate   5.875% 5.875%    
Long-term debt, carrying value   $ 119 $ 296    
$317 million, 5.375% Notes due 2042 [Member] | Uncollateralized Debt [Member]          
Debt Instrument [Line Items]          
Long-term debt, face value   $ 317 $ 750    
Long-term debt, stated interest rate   5.375% 5.375%    
Long-term debt, carrying value   $ 315 $ 743    
$1,000 million, 3.875% Notes due 2047 | Uncollateralized Debt [Member]          
Debt Instrument [Line Items]          
Long-term debt, face value   $ 1,000      
Long-term debt, stated interest rate   3.875%      
Long-term debt, carrying value   $ 988 0   $ 987
Other, including capital leases [Member] | Uncollateralized Debt [Member]          
Debt Instrument [Line Items]          
Long-term debt, carrying value   $ 9 $ 20    
v3.8.0.1
Debt - Long-tem Debt Issued (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Sep. 14, 2017
Dec. 31, 2016
Debt Instrument [Line Items]      
Amount net of discount and fees $ 5,199   $ 4,756
$600 million, 3.05% Notes due 2027 | Uncollateralized Debt [Member]      
Debt Instrument [Line Items]      
Long-term debt, issuance date Sep. 14, 2017    
Long-term debt, face value $ 600    
Long-term debt, term 10 years    
Long-term debt, maturity date Oct. 15, 2027    
Long-term debt, stated interest rate 3.05%    
Effective interest rate 3.183%    
Amount net of discount and fees $ 594 $ 594 0
Debt instrument redemption period end date Jul. 15, 2027    
Debt instrument redemption price percentage 100.00%    
Basis points added to Treasury rate used in debt redemption discount calculation 0.15%    
$1,000 million, 3.875% Notes due 2047 | Uncollateralized Debt [Member]      
Debt Instrument [Line Items]      
Long-term debt, issuance date Sep. 14, 2017    
Long-term debt, face value $ 1,000    
Long-term debt, term 30 years    
Long-term debt, maturity date Oct. 15, 2047    
Long-term debt, stated interest rate 3.875%    
Effective interest rate 3.951%    
Amount net of discount and fees $ 988 $ 987 $ 0
Debt instrument redemption period end date Apr. 15, 2047    
Debt instrument redemption price percentage 100.00%    
Basis points added to Treasury rate used in debt redemption discount calculation 0.20%    
v3.8.0.1
Debt - Extinguishment (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2015
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Apr. 13, 2015
Extinguishment of Debt [Line Items]                  
Extinguishment of Debt, Amount     $ 1,000            
Debt redeemed, including accrued interest and expenses                 $ 955
Debt extinguishment costs $ 100   321     $ 321 $ 0 $ 100  
Debt extinguishment costs, after-tax $ 65 $ 0 $ 209 $ 0 $ 0 $ 209   $ 65  
v3.8.0.1
Debt - Revolving Credit and Letter of Credit (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Banks
Line of Credit Facility [Line Items]  
Debt outstanding $ 5,400
Revolving Credit And Letter Of Credit Facility [Member]  
Line of Credit Facility [Line Items]  
Maximum borrowing capacity under credit facility $ 1,500
Expiration date Dec. 31, 2022
Number of participating banks | Banks 15
Maximum borrowing capacity under option to increase $ 2,000
Covenant terms The agreement contains customary covenants and restrictions, including a financial covenant that the Company may not permit its leverage ratio – total consolidated debt to total consolidated capitalization (each as defined in the credit agreement) – to be greater than 50%.
Leverage ratio covenant 50.00%
Borrowing capacity within maximum debt coverage covenant $ 9,300
Debt covenant compliance The Company was in compliance with its debt covenants as of December 31, 2017.
Letter of Credit [Member]  
Line of Credit Facility [Line Items]  
Maximum borrowing capacity under credit facility $ 500
Letters of credit outstanding $ 11
v3.8.0.1
Debt - Maturities and Interest Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Maturities Of Debt Excluding Capital Leases [Abstract]      
Maturities of Debt in 2018 $ 131    
Maturities of Debt in 2019 0    
Maturities of Debt in 2020 550    
Maturities of Debt in 2021 378    
Maturities of Debt in 2022 750    
Maturities of Debt in years after 2022 3,550    
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]      
Maturities of debt under capital lease arrangements in 2018 9    
Maturities of debt under capital lease arrangements in 2019 8    
Maturities of debt under capital lease arrangements in 2020 1    
Maturities of debt under capital lease arrangements in 2021 0    
Maturities of debt under capital lease arrangements in 2022 0    
Maturities of debt under capital lease arrangements in years after 2022 0    
Interest Expense [Abstract]      
Interest expense on long-term and short-term debt $ 243 $ 251 $ 252
v3.8.0.1
Common and Preferred Stock (Details) - $ / shares
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Common: Par value $.25, 600,000,000 shares authorized      
Outstanding - January 1 256,869,000 256,544,000 259,276,000
Issued for stock option exercises and other benefit plans 2,761,000 1,110,000 2,751,000
Repurchase of common stock (15,663,000) (785,000) (5,483,000)
Outstanding - December 31 243,967,000 256,869,000 256,544,000
Treasury stock 52,178,000 39,276,000 39,601,000
Issued - December 31 296,145,000 296,145,000 296,145,000
Common Stock, par value and shares authorized      
Common stock, par value per share $ 0.25 $ 0.25 $ 0.25
Common stock shares authorized 600,000,000 600,000,000 600,000,000
Preferred Stock [Abstract]      
Preferred Stock, Shares Authorized 25,000,000 25,000,000 25,000,000
Preferred Stock, Par Value Per Share $ 1 $ 1 $ 1
Preferred Stock, Shares Outstanding 0 0 0
v3.8.0.1
Global Health Care Medical Costs Payable - Activity (Details) - Global Health Benefits Segment [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Medical Claims Payable Activity [Abstract]      
Beginning balance, unpaid claims, gross $ 2,532 $ 2,355 $ 2,180
Less: Reinsurance and other amounts recoverable 275 243 252
Beginning balance, unpaid claims, net 2,257 2,112 1,928
Incurred claims related to:      
Current year 20,233 19,087 18,564
Prior years (266) (78) (210)
Total incurred 19,967 19,009 18,354
Paid claims related to:      
Current year 17,979 17,052 16,588
Prior years 1,791 1,812 1,582
Total paid 19,770 18,864 18,170
Ending balance, unpaid claims, net 2,454 2,257 2,112
Add: Reinsurance and other amounts recoverable 265 275 243
Ending balance, unpaid claims, gross 2,719 2,532 $ 2,355
Total of incurred but not reported liabilities plus expected claim development on reported claims, including reported claims in process 2,600 2,400  
Amounts due for physician incentives and other medical care expenses and services payable $ 100 $ 100  
v3.8.0.1
Global Health Care Medical Costs Payable - Prior Year Development (Details) - Global Health Benefits Segment [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]      
Variance (unfavorable) in incurred costs related to prior years' claims payable $ 266 $ 78 $ 210
Variance (unfavorable) in incurred costs related to prior years' claims payable, percentage 1.40% 0.40%  
Net impact (unfavorable) of prior development on shareholders' net income $ 112  
Completion Factors [Member]      
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]      
Variance (unfavorable) in incurred costs related to prior years' claims payable $ 124 $ 59  
Variance (unfavorable) in incurred costs related to prior years' claims payable, percentage 0.70% 0.30%  
Medical Cost Trend [Member]      
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]      
Variance (unfavorable) in incurred costs related to prior years' claims payable $ 133 $ 27  
Variance (unfavorable) in incurred costs related to prior years' claims payable, percentage 0.70% 0.10%  
Other [Member]      
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Abstract]      
Variance (unfavorable) in incurred costs related to prior years' claims payable $ 9 $ (8)  
Variance (unfavorable) in incurred costs related to prior years' claims payable, percentage 0.00% 0.00%  
v3.8.0.1
Global Health Care Medical Costs Payable - Unpaid Claims Development (Details) - Global Health Benefits Segment [Member]
Claims in Millions, $ in Millions
Dec. 31, 2017
USD ($)
Claims
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Claims Development [Line Items]        
Incurred claims $ 39,055      
Cumulative Paid Claims 36,642      
Outstanding liabilities for the periods presented, net of reinsurance 2,413      
Outstanding liabilities prior to 2016 41      
Liability for unpaid claims and claims expenses, net of reinsurance 2,454 $ 2,257 $ 2,112 $ 1,928
Reinsurance recoverable on unpaid claims 265 275 243 252
Total liability for unpaid claims and claims expenses $ 2,719 2,532 $ 2,355 $ 2,180
Minimum [Member]        
Claims Development [Line Items]        
Percent of health claims paid within one year 95.00%      
Accident Year 2016 [Member]        
Claims Development [Line Items]        
Incurred claims $ 18,822 19,087    
Cumulative Paid Claims 18,663 $ 17,052    
Liability for unpaid claims and claims expenses, net of reinsurance $ 159      
Claim frequency | Claims 2.7      
Accident Year 2017 [Member]        
Claims Development [Line Items]        
Incurred claims $ 20,233      
Cumulative Paid Claims 17,979      
Liability for unpaid claims and claims expenses, net of reinsurance $ 2,254      
Claim frequency | Claims 3.3      
v3.8.0.1
Liabilities for Unpaid Claims and Claims Expenses - Liability Balance Details (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Group Disability and Life, Global Supplemental Beneftits and Other Operations [Member]    
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]    
Total liability for unpaid claims and claims expenses $ 5,168 $ 4,917
Group Disability And Life Segment [Member]    
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]    
Total liability for unpaid claims and claims expenses 4,491 4,342
Global Supplemental Benefits Segment [Member]    
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]    
Total liability for unpaid claims and claims expenses 484 384
Other Operations Segment [Member]    
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]    
Total liability for unpaid claims and claims expenses $ 193 $ 191
v3.8.0.1
Liabilities for Unpaid Claims and Claims Expenses - Discounted Liabilities (Details) - USD ($)
$ in Billions
Dec. 31, 2017
Dec. 31, 2016
Short-duration Insurance Contracts Discounted Liabilities [Line Items]    
Discounted liabilities $ 4.0 $ 3.9
Aggregate amount of discount $ 1.0 $ 1.1
Minimum [Member]    
Short-duration Insurance Contracts Discounted Liabilities [Line Items]    
Range of discount rates 4.50% 3.30%
Maximum [Member]    
Short-duration Insurance Contracts Discounted Liabilities [Line Items]    
Range of discount rates 5.20% 5.80%
v3.8.0.1
Liabilities for Unpaid Claims and Claims Expenses - Activity in Liabilities for Unpaid Claims and Claims Expenses (Details) - Group Disability and Life and Global Supplemental Benefits [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Liability For Unpaid Claims And Claims Adjustment Expense [Line Items]      
Beginning balance, unpaid claims, gross $ 4,726 $ 4,359 $ 4,178
Less: Reinsurance and other amounts recoverable 121 115 104
Beginning balance, unpaid claims, net 4,605 4,244 4,074
Incurred claims related to:      
Current year 4,341 4,258 3,813
Interest accretion 163 161 163
All other prior years (4) 93 (91)
Total incurred 4,500 4,512 3,885
Paid claims related to:      
Current year 2,724 2,575 2,325
Prior years 1,572 1,560 1,382
Total paid 4,296 4,135 3,707
Acquisitions 0 0 11
Foreign currency 29 (16) (19)
Ending balance, unpaid claims, net 4,838 4,605 4,244
Add: Reinsurance and other amounts recoverable 137 121 115
Ending balance, unpaid claims, gross $ 4,975 $ 4,726 $ 4,359
v3.8.0.1
Liabilities for Unpaid Claims and Claims Expenses - Long-term Disability Claims Development Tables (Details) - Long-term Disability [Member]
Claims in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Claims
Dec. 31, 2016
USD ($)
Claims
Dec. 31, 2015
USD ($)
Claims
Dec. 31, 2014
USD ($)
Claims
Dec. 31, 2013
USD ($)
Claims
Dec. 31, 2012
USD ($)
Claims
Claims Development [Line Items]            
Incurred claims $ 6,678          
Cumulative Paid Claims 3,082          
Outstanding liabilities for the periods presented, net of reinsurance 3,596          
All outstanding liabilities prior to 2012, net of reinsurance 1,142          
Impact of discounting (948)          
Liability for unpaid claims and claims expenses, net of reinsurance $ 3,790          
Claims frequency, methodology The claims frequency metric used for the Company’s long-term disability line of business represents the number of unique claim events for which benefits have been approved and payments made. Claim events are identified using a unique claimant identifier and incurral date. Thus, if an individual has multiple claims for different disabling events (and therefore different incurral dates), each will be determined to be a unique claim event. However, if an individual receives multiple benefits under more than one policy (for example for supplemental disability benefits such as pension contribution benefits or survivor benefits), the Company treats this as a single claim occurrence because they related to the same claim event. Claims frequency metrics for the most recent year are expected to be low reflecting the long-term disability product features including waiting and elimination periods that result in delayed eligibility for contract benefits. Claims that did not result in a liability are not included in the frequency metric.          
Accident Year 2012 [Member]            
Claims Development [Line Items]            
Incurred claims $ 880 $ 883 $ 876 $ 889 $ 951 $ 995
Cumulative Paid Claims 621 571 504 429 288 $ 81
Incurred But Not Reported Liabilities 0          
Claim frequency | Claims           21,180
Accident Year 2013 [Member]            
Claims Development [Line Items]            
Incurred claims 1,057 1,072 1,062 1,037 1,063  
Cumulative Paid Claims 670 600 503 342 $ 92  
Incurred But Not Reported Liabilities 0          
Claim frequency | Claims         23,516  
Accident Year 2014 [Member]            
Claims Development [Line Items]            
Incurred claims 1,146 1,167 1,129 1,158    
Cumulative Paid Claims 667 575 379 $ 111    
Incurred But Not Reported Liabilities 0          
Claim frequency | Claims       25,281    
Accident Year 2015 [Member]            
Claims Development [Line Items]            
Incurred claims 1,185 1,154 1,184      
Cumulative Paid Claims 603 417 $ 114      
Incurred But Not Reported Liabilities 5          
Claim frequency | Claims     25,609      
Accident Year 2016 [Member]            
Claims Development [Line Items]            
Incurred claims 1,184 1,246        
Cumulative Paid Claims 411 $ 122        
Incurred But Not Reported Liabilities 20          
Claim frequency | Claims   24,722        
Accident Year 2017 [Member]            
Claims Development [Line Items]            
Incurred claims 1,226          
Cumulative Paid Claims 110          
Incurred But Not Reported Liabilities $ 540          
Claim frequency | Claims 10,569          
v3.8.0.1
Liabilities for Unpaid Claims and Claims Expenses - Annual Percentage Payout of Incurred Claims (Details)
Dec. 31, 2017
Long-term Disability [Member]  
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]  
Average annual percentage payout of incurred claims in year one, net of reinsurance 9.00%
Average annual percentage payout of incurred claims in year two, net of reinsurance 24.00%
Average annual percentage payout of incurred claims in year three, net of reinsurance 16.00%
Average annual percentage payout of incurred claims in year four, net of reinsurance 9.00%
Average annual percentage payout of incurred claims in year five, net of reinsurance 7.00%
Average annual percentage payout of incurred claims in year six, net of reinsurance 6.00%
Other Short-duration Insurance Product Line [Member]  
Short-duration Insurance Contracts, Historical Claims Duration [Line Items]  
Average annual percentage payout of incurred claims in year one, net of reinsurance 100.00%
v3.8.0.1
Liabilities for Unpaid Claims and Claims Expenses - Reconciliation to the Liability for Unpaid Claims and Claims Expense (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Group Disability and Life, Global Supplemental Beneftits and Other Operations [Member]    
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]    
Total liability for unpaid claims and claims expenses $ 5,168 $ 4,917
Group Disability And Life Segment [Member]    
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]    
Liability for unpaid claims and claims expenses, net of reinsurance 4,389  
Reinsurance recoverable on unpaid claims 102  
Total liability for unpaid claims and claims expenses 4,491 4,342
Global Supplemental Benefits Segment [Member]    
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]    
Total liability for unpaid claims and claims expenses 484 384
Other Operations Segment [Member]    
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]    
Total liability for unpaid claims and claims expenses 193 $ 191
Long-term Disability [Member]    
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]    
Liability for unpaid claims and claims expenses, net of reinsurance 3,790  
Long-term Disability [Member] | Group Disability And Life Segment [Member]    
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]    
Liability for unpaid claims and claims expenses, net of reinsurance 3,790  
Reinsurance recoverable on unpaid claims 94  
Other Short-duration Insurance Product Line [Member] | Group Disability And Life Segment [Member]    
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items]    
Liability for unpaid claims and claims expenses, net of reinsurance 599  
Reinsurance recoverable on unpaid claims $ 8  
v3.8.0.1
Reinsurance - Reinsurance Recoverables (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Reinsurers
Dec. 31, 2016
USD ($)
Ceded Credit Risk [Line Items]    
Reinsurance recoverables $ 6,046 $ 6,478
Global Health Care, Global Supplemental Benefits, Group Disability and Life [Member]    
Ceded Credit Risk [Line Items]    
Reinsurance recoverables $ 454 478
Number of external reinsurers | Reinsurers 90  
Maximum reinsurance recoverable from a single reinsurer $ 80  
Global Health Care, Global Supplemental Benefits, Group Disability and Life [Member] | Maximum [Member]    
Ceded Credit Risk [Line Items]    
Minimum reinsurance recoverable from a single reinsurer $ 1  
Global Health Care, Global Supplemental Benefits, Group Disability and Life [Member] | Minimum [Member] | Standard & Poor's Investment Grade [Member] | Reinsurance Recoverable [Member]    
Ceded Credit Risk [Line Items]    
Concentration Risk, Percentage 70.00%  
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 11.00%  
Acquisition, disposition or runoff activities [Member]    
Ceded Credit Risk [Line Items]    
Reinsurance recoverables $ 5,592 6,000
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 3,436 3,586
Berkshire [Member] | Guaranteed Minimum Death Benefits [Member]    
Ceded Credit Risk [Line Items]    
Reinsurance recoverables $ 928 1,085
Berkshire [Member] | Guaranteed Minimum Death Benefits [Member] | Ceded Credit Risk Secured [Member] | Reinsurance Recoverable [Member]    
Ceded Credit Risk [Line Items]    
Concentration Risk, Percentage 100.00%  
Prudential Retirement Insurance And Annuity Company [Member] | Retirement Benefits Business (sold in 2004) [Member]    
Ceded Credit Risk [Line Items]    
Reinsurance recoverables $ 850 921
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 $ 283 297
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 [Member] | Guaranteed Minimum Death Benefits [Member]    
Ceded Credit Risk [Line Items]    
Reinsurance recoverables $ 34 44
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] | Other run-off reinsurance [Member]    
Ceded Credit Risk [Line Items]    
Reinsurance recoverables $ 61 $ 67
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%  
v3.8.0.1
Reinsurance - Effects of Reinsurance (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Premiums Earned, Net [Abstract]      
Direct $ 32,402 $ 30,755 $ 29,812
Assumed 329 384 400
Ceded (424) (513) (570)
Premiums Earned Net 32,307 30,626 29,642
Reinsurance Recoveries [Abstract]      
Reinsurance recoveries 325 540 737
Individual Life Insurance And Annuity Business Sold [Member]      
Reinsurance Recoveries [Abstract]      
Reinsurance recoveries 259 279 301
Other Subsegments [Member]      
Reinsurance Recoveries [Abstract]      
Reinsurance recoveries 66 261 436
Short Duration Contracts [Member]      
Premiums Earned, Net [Abstract]      
Direct 28,654 27,496 26,751
Assumed 199 247 289
Ceded (150) (229) (254)
Premiums Earned Net 28,703 27,514 26,786
Premiums Written, Net [Abstract]      
Direct premiums, written versus earned
Assumed premiums, written versus earned
Ceded premiums, written versus earned
Net premiums, written versus earned
Long Duration Contracts [Member]      
Premiums Earned, Net [Abstract]      
Direct 3,748 3,259 3,061
Assumed 130 137 111
Premiums Earned Net 3,604 3,112 2,856
Long Duration Contracts [Member] | Individual Life Insurance And Annuity Business Sold [Member]      
Premiums Earned, Net [Abstract]      
Ceded (143) (153) (158)
Long Duration Contracts [Member] | Other Subsegments [Member]      
Premiums Earned, Net [Abstract]      
Ceded $ (131) $ (131) $ (158)
v3.8.0.1
Reinsurance - Effective Exit of GMDB and GMIB Business (Details) - Berkshire Hathway Life Insurance Company Of Nebraska [Member] - Variable Annuity [Member] - USD ($)
$ in Billions
Dec. 31, 2017
Dec. 31, 2014
Ceded Credit Risk [Line Items]    
Percent of future claim payments reinsured   100.00%
Ceded Reinsurance Agreement, Coverage Limit, Amount Remaining $ 3.4  
v3.8.0.1
Reinsurance - Account Value, Net Amount at Risk and Contractholders for GMDB Business (Details) - Variable Annuity [Member] - Guaranteed Minimum Death Benefit [Member]
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Contractholders
Dec. 31, 2016
USD ($)
Contractholders
Guaranteed Minimum Death Benefits Account Value, Net Amount at Risk And Average Age Table [Line Items]    
Account value $ 10,109 $ 10,650
Net amount at risk $ 2,112 $ 2,458
Average attained age of contractholders (weighted by exposure) 75 years 75 years
Number of contractholders | Contractholders 245,000 285,000
v3.8.0.1
Reinsurance - GMIB Reinsurers (Details) - Guaranteed Minimum Income Benefit [Member]
Reinsurers in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Reinsurers
Dec. 31, 2016
USD ($)
Ceded Credit Risk [Line Items]    
Annuitization election period 30 days  
Number of external reinsurers | Reinsurers 3  
GMIB Assets $ 777 $ 799
Berkshire [Member]    
Ceded Credit Risk [Line Items]    
GMIB Assets $ 359 370
Berkshire [Member] | Ceded Credit Risk Secured [Member] | GMIB Assets [Member]    
Ceded Credit Risk [Line Items]    
Concentration percentage 100.00%  
Sun Life Assurance Company Of Canada [Member]    
Ceded Credit Risk [Line Items]    
GMIB Assets $ 221 227
Liberty Re (Bermuda) Ltd. [Member]    
Ceded Credit Risk [Line Items]    
GMIB Assets $ 197 $ 202
Liberty Re (Bermuda) Ltd. [Member] | Ceded Credit Risk Secured [Member] | GMIB Assets [Member]    
Ceded Credit Risk [Line Items]    
Concentration percentage 100.00%  
v3.8.0.1
Reinsurance - GMIB Guarantees (Details) - Guarantee Type, Other [Member] - Guaranteed Minimum Income Benefit [Member] - Variable Annuity [Member]
$ in Millions
Dec. 31, 2017
USD ($)
Guarantee Obligations [Line Items]  
Underlying mutual fund investment values $ 822
Maximum Exposure, Undiscounted $ 573
v3.8.0.1
Fair Value Measurements - Financial Assets and Financial Liabilities Carried at Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Financial assets at fair value:    
Fixed maturities $ 23,138 $ 20,961
Equity securities 588 583
Short-term investments 199 691
Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 23,138 20,961
Equity securities 588 583
Subtotal 23,726 21,544
Short-term investments 199 691
Total financial assets at fair value, excluding separate accounts 24,704 23,044
Financial liabilities at fair value:    
Total financial liabilities at fair value 787 785
Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Derivative assets 2 10
Financial liabilities at fair value:    
Derivative liabilities 25 5
Guaranteed Minimum Income Benefit [Member]    
Financial assets at fair value:    
Derivative assets 777 799
Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Derivative assets 777 799
Financial liabilities at fair value:    
Derivative liabilities 762 780
Federal government and agency [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 779 877
State and local government [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 1,287 1,435
Foreign government [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 2,487 2,113
Corporate [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 18,088 16,050
Mortgage and other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 497 486
Fair Value Inputs Level 1 [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 253 374
Equity securities 412 396
Subtotal 665 770
Short-term investments 0 0
Total financial assets at fair value, excluding separate accounts 665 770
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 0 0
Financial liabilities at fair value:    
Derivative liabilities 0 0
Fair Value Inputs Level 1 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Derivative assets 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 253 374
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 and 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 22,256 19,885
Equity securities 73 113
Subtotal 22,329 19,998
Short-term investments 199 691
Total financial assets at fair value, excluding separate accounts 22,530 20,699
Financial liabilities at fair value:    
Total financial liabilities at fair value 25 5
Fair Value Inputs Level 2 [Member] | Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Derivative assets 2 10
Financial liabilities at fair value:    
Derivative liabilities 25 5
Fair Value Inputs Level 2 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Derivative assets 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 526 503
Fair Value Inputs Level 2 [Member] | State and local government [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 1,287 1,435
Fair Value Inputs Level 2 [Member] | Foreign government [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 2,442 2,066
Fair Value Inputs Level 2 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 17,658 15,552
Fair Value Inputs Level 2 [Member] | Mortgage and other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 343 329
Fair Value Inputs Level 3 [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 629 702
Equity securities 103 74
Subtotal 732 776
Short-term investments 0 0
Total financial assets at fair value, excluding separate accounts 1,509 1,575
Financial liabilities at fair value:    
Total financial liabilities at fair value 762 780
Fair Value Inputs Level 3 [Member] | Other derivatives [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Derivative assets 0 0
Financial liabilities at fair value:    
Derivative liabilities 0 0
Fair Value Inputs Level 3 [Member] | Guaranteed Minimum Income Benefit [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Derivative assets 777 799
Financial liabilities at fair value:    
Derivative liabilities 762 780
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 45 47
Fair Value Inputs Level 3 [Member] | Corporate [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities 430 498
Fair Value Inputs Level 3 [Member] | Mortgage and other asset-backed [Member] | Fair Value, Measurements, Recurring [Member]    
Financial assets at fair value:    
Fixed maturities $ 154 $ 157
v3.8.0.1
Fair Value Measurements - Level 2 Financial Assets and Financial Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Fair Value Disclosures [Abstract]    
Percentage of investments in fixed maturities and equity securities classified as Level 2 94.00%  
Maximum percentage of investments classified in Level 2 representing foreign bonds priced using unadjusted broker quotes 1.00%  
Other derivatives [Member]    
Derivative [Line Items]    
Adjustment for credit risk on derivatives assets $ 0 $ 0
Adjustment for credit risk on derivatives liabilities $ 0 $ 0
v3.8.0.1
Fair Value Measurements - Level 3 Financial Assets and Liabilities (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Fair Value Disclosures [Abstract]    
Percentage of investments in fixed maturities and equity securities classified in Level 3 3.00%  
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 $ 23,726 $ 21,544
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 732 776
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 703 721
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 29 55
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 103 74
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Private 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 $ 70 $ 74
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Private 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. 12 11.6
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Private 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. 5 4.2
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Private 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. 8.9 8.5
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Hybrid 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 $ 33 $ 0
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Hybrid 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]    
Liquidity adjustment to discount rates used to value fixed maturities and equity securities 2.70%  
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Hybrid 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]    
Liquidity adjustment to discount rates used to value fixed maturities and equity securities 2.70%  
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Hybrid 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]    
Liquidity adjustment to discount rates used to value fixed maturities and equity securities 2.70%  
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 $ 600 647
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate and government 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 $ 446 $ 490
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate and government fixed maturities [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 16.50% 13.00%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate and government fixed maturities [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% 0.80%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Corporate and government fixed maturities [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 3.00% 3.40%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Mortgage and other asset-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 $ 154 $ 157
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Mortgage and other asset-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 3.70% 3.30%
Adjustment to discount rates used to value fixed maturities and equity securities for weighting of credit spreads 2.90% 4.70%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Mortgage and other asset-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% 1.60%
Fair Value, Measurements, Recurring [Member] | Fair Value Inputs Level 3 [Member] | Mortgage and other asset-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 0.90% 0.90%
Adjustment to discount rates used to value fixed maturities and equity securities for weighting of credit spreads 2.30% 2.30%
v3.8.0.1
Fair Value Measurements - Changes in Level 3 Financial Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Fixed Maturities And Equity Securities [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Beginning Balance $ 776 $ 726
Gains (losses) included in shareholders' net income:    
GMIB fair value gain/(loss) 0 0
Other 25 (18)
Total gains (losses) included in shareholders' net income 25 (18)
Gains (losses) included in other comprehensive income (11) (1)
Gains (losses) required to adjust future policy benefits for settlement annuities 7 29
Purchases, sales, and settlements:    
Purchases 133 96
Sales (95) (140)
Settlements (74) (74)
Total purchases, sales, settlements (36) (118)
Transfers into/(out of) Level 3:    
Transfers into Level 3 275 338
Transfers out of Level 3 (304) (180)
Total transfers into/(out of) Level 3 (29) 158
Ending Balance 732 776
Total gains (losses) included in income attributable to instruments held at the reporting date (9) (18)
Derivative Financial Instruments, Assets [Member] | Guaranteed Minimum Income Benefit [Member]    
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]    
Beginning Balance 799 907
Gains (losses) included in shareholders' net income:    
GMIB fair value gain/(loss) 31 (47)
Other 1 0
Total gains (losses) included in shareholders' net income 32 (47)
Gains (losses) included in other comprehensive income 0 0
Gains (losses) required to adjust future policy benefits for settlement annuities 0 0
Purchases, sales, and settlements:    
Purchases 0 0
Sales 0 0
Settlements (54) (61)
Total purchases, sales, settlements (54) (61)
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 777 799
Total gains (losses) included in income attributable to instruments held at the reporting date $ 32 $ (47)
v3.8.0.1
Fair Value Measurements - Changes in Level 3 Financial Liabilities (Details) - Derivative Financial Instruments, Liabilities [Member] - Guaranteed Minimum Income Benefit [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning balance $ (780) $ (885)
Gains (losses) included in shareholders' net income:    
GMIB fair value gain/(loss) (31) 47
Other (5) (3)
Total gains (losses) included in shareholders' net income (36) 44
Gains (losses) included in other comprehensive income 0 0
Gains (losses) required to adjust future policy benefits for settlement annuities 0 0
Purchases, sales, settlements:    
Purchases 0 0
Sales 0 0
Settlements 54 61
Total purchases, sales, and settlements 54 61
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 (762) (780)
Total gains (losses) included in income attributable to instruments held at the reporting date $ (36) $ 44
v3.8.0.1
Fair Value Measurements - Separate Account Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Financial assets and financial liabilities carried at fair value [Line Items]    
Guaranteed separate accounts $ 523 $ 500
Non-guaranteed separate accounts 7,126 6,584
Subtotal 7,649 7,084
Non-guaranteed separate accounts priced at NAV as a practical expedient 774 856
Total separate account assets 8,423 7,940
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 800 900
Non-guaranteed separate accounts 3,900 3,700
Fair Value Inputs Level 1 [Member]    
Financial assets and financial liabilities carried at fair value [Line Items]    
Guaranteed separate accounts 215 238
Non-guaranteed separate accounts 1,536 1,368
Subtotal 1,751 1,606
Fair Value Inputs Level 2 [Member]    
Financial assets and financial liabilities carried at fair value [Line Items]    
Guaranteed separate accounts 308 262
Non-guaranteed separate accounts 5,298 4,885
Subtotal 5,606 5,147
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 292 331
Subtotal 292 331
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 331 297
Policyholder gains (losses) 34 2
Purchases, sales, and settlements:    
Purchases 33 22
Sales (53) (11)
Settlements (13) (18)
Total purchases, sales, and settlements (33) (7)
Transfers into/(out of) Level 3:    
Transfers into Level 3 7 65
Transfers out of Level 3 (47) (26)
Total transfers into/(out of) Level 3 (40) 39
Ending Balance $ 292 $ 331
v3.8.0.1
Fair Value Measurements - Separate Account Assets Priced at NAV (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Unfunded Commitments $ 1,178  
Separate Account Assets [Member]    
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Unfunded Commitments 365  
Separate Account Assets [Member] | Fair Value, Measurements, Recurring [Member]    
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Fair Value 774 $ 856
Security Partnerships [Member] | Separate Account Assets [Member]    
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Unfunded Commitments $ 365  
Redemption Frequency Not applicable  
Security Partnerships [Member] | Separate Account Assets [Member] | Fair Value, Measurements, Recurring [Member]    
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Fair Value $ 458 $ 424
Real Estate Funds [Member] | Separate Account Assets [Member]    
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Unfunded Commitments $ 0  
Redemption Frequency Quarterly  
Real Estate Funds [Member] | Separate Account Assets [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] | Separate Account Assets [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] | Separate Account Assets [Member] | Fair Value, Measurements, Recurring [Member]    
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Fair Value $ 239 $ 231
Hedge Funds [Member] | Separate Account Assets [Member]    
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Unfunded Commitments $ 0  
Redemption Frequency Up to annually, varying by fund  
Hedge Funds [Member] | Separate Account Assets [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] | Separate Account Assets [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] | Separate Account Assets [Member] | Fair Value, Measurements, Recurring [Member]    
Fair Value Investments, Entities That Calculate Net Asset Value Per Share [Line Items]    
Fair Value $ 77 $ 201
v3.8.0.1
Fair Value Measurements - Measured Under Certain Conditions (Details) - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Impaired [Line Items]    
Realized investment losses on impaired real estate, partnership entities, and commercial mortgage loans, after-tax
Maximum [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired real estate, partnership entities, and commercial mortgage loans as a percent of total investments 1.00% 1.00%
v3.8.0.1
Fair Value Measurements - Not Carried at Fair Value (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Commercial Mortgage Loans $ 1,761 $ 1,666
Percentage of contractholder deposit funds that can be withdrawn at any time 70.00%  
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 $ 5,730 5,460
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 1,766 1,682
Contractholder deposit funds, excluding universal life products 1,121 1,215
Carrying Reported Amount Fair Value Disclosure [Member]    
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]    
Commercial Mortgage Loans 1,761 1,666
Contractholder deposit funds, excluding universal life products 1,119 1,212
Long-term debt, including current maturities, excluding capital leases $ 5,321 $ 4,991
v3.8.0.1
Fair Value Measurements - Off-Balance Sheet Financial Instruments (Details) - USD ($)
Dec. 31, 2017
Dec. 31, 2016
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items]    
Fair value of off-balance-sheet financial assets
Fair value of off-balance-sheet financial liabilities
v3.8.0.1
Investments - Hybrid Securities (Details) - Equity securities [Member] - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Investment [Line Items]    
Hybrid securities $ 49 $ 36
Hybrid instruments, cost $ 61 $ 49
v3.8.0.1
Investments - Fixed Maturities by Contractual Maturity Periods (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Amortized Cost:    
Due in one year or less $ 1,511  
Due after one year through five years 6,655  
Due after five years through ten years 9,377  
Due after ten years 3,855  
Mortgage and other asset-backed securities 469  
Amortized Cost 21,867 $ 19,942
Fair Value:    
Due in one year or less 1,522  
Due after one year through five years 6,848  
Due after five years through ten years 9,599  
Due after ten years 4,672  
Mortgage and other asset-backed securities 497  
Total fair value $ 23,138  
v3.8.0.1
Investments - Gross Unrealized Appreciation (Depreciation) on Fixed Maturities (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost $ 21,867 $ 19,942
Unrealized Appreciation 1,371 1,196
Unrealized (Depreciation) (100) (177)
Total Fair Value 23,138 20,961
Run-off Settlement Annuity Business [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 2,200 2,196
Unrealized Appreciation 681 539
Unrealized (Depreciation) (2) (15)
Total Fair Value 2,879 2,720
Fixed Maturities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Commitments to make additional investments 118  
Federal government and agency [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 541 658
Unrealized Appreciation 239 223
Unrealized (Depreciation) (1) (4)
Total Fair Value 779 877
State and local government [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 1,196 1,342
Unrealized Appreciation 93 99
Unrealized (Depreciation) (2) (6)
Total Fair Value 1,287 1,435
Foreign government [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 2,360 1,998
Unrealized Appreciation 142 129
Unrealized (Depreciation) (15) (14)
Total Fair Value 2,487 2,113
Corporate [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 17,301 15,483
Unrealized Appreciation 868 716
Unrealized (Depreciation) (81) (149)
Total Fair Value 18,088 16,050
Mortgage and other asset-backed [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Amortized Cost 469 461
Unrealized Appreciation 29 29
Unrealized (Depreciation) (1) (4)
Total Fair Value $ 497 $ 486
v3.8.0.1
Investments - Securities with a Decline in Fair Value (Details)
$ in Millions
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Investment Grade [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Fair value, one year or less   $ 4,346
Fair value, more than one year   308
Amortized cost, one year or less   4,475
Amortized cost, more than one year   327
Unrealized depreciation, one year or less   (129)
Unrealized depreciation, more than one year   $ (19)
Investment Grade [Member] | One Year Or Less [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Number of issues, total   992
Investment Grade [Member] | More Than One Year [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Number of issues, total   53
Below Investment Grade [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Fair value, one year or less   $ 724
Fair value, more than one year   186
Amortized cost, one year or less   736
Amortized cost, more than one year   203
Unrealized depreciation, one year or less   (12)
Unrealized depreciation, more than one year   $ (17)
Below Investment Grade [Member] | One Year Or Less [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Number of issues, total   591
Below Investment Grade [Member] | More Than One Year [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Number of issues, total   28
Fixed Maturities [Member] | Investment Grade [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Fair value, one year or less $ 3,272  
Fair value, more than one year 1,503  
Amortized cost, one year or less 3,309  
Amortized cost, more than one year 1,549  
Unrealized depreciation, one year or less (37)  
Unrealized depreciation, more than one year $ (46)  
Fixed Maturities [Member] | Investment Grade [Member] | One Year Or Less [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Number of issues, total 797  
Fixed Maturities [Member] | Investment Grade [Member] | More Than One Year [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Number of issues, total 373  
Fixed Maturities [Member] | Below Investment Grade [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Fair value, one year or less $ 543  
Fair value, more than one year 155  
Amortized cost, one year or less 553  
Amortized cost, more than one year 162  
Unrealized depreciation, one year or less (10)  
Unrealized depreciation, more than one year $ (7)  
Fixed Maturities [Member] | Below Investment Grade [Member] | One Year Or Less [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Number of issues, total 643  
Fixed Maturities [Member] | Below Investment Grade [Member] | More Than One Year [Member]    
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]    
Number of issues, total 42  
v3.8.0.1
Investments - Commerical Mortgage Loans by Property Type and Geographic Region (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans $ 1,761 $ 1,666
Commercial Mortgage Loans [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commitments to make additional investments 21  
Pacific Region [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 841 714
South Atlantic Region [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 210 268
New England Region [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 238 227
Central Region [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 237 239
Middle Atlantic [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 203 186
Mountain [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 32 32
Office Buildings [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 652 592
Apartment Buildings [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 608 428
Industrial [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 197 302
Hotels [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 141 205
Retail Facilities [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans 135 139
Other Property [Member]    
Mortgage Loans on Real Estate [Line Items]    
Commercial Mortgage Loans $ 28 $ 0
v3.8.0.1
Investments - Commercial Mortgage Loan Maturities (Details)
Dec. 31, 2017
Investments:  
Percentage of commercial mortage loan portfolio scheduled to mature in 2022 or thereafter 86.00%
v3.8.0.1
Investments - Credit Risk Profile, Commercial Mortgage Loans (Details)
 12 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Financing Receivable, Recorded Investment [Line Items]    
Commercial mortgage loan $ 1,761,000,000 $ 1,666,000,000
Weighted Average [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Average Debt Service Coverage Ratio 2.11 1.95
Average Loan-to-Value Ratio 57.00% 57.00%
Below 60% [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Commercial mortgage loan $ 1,109,000,000 $ 943,000,000
Below 60% [Member] | Weighted Average [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Average Debt Service Coverage Ratio 2.03 2.06
60% to 79% [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Commercial mortgage loan $ 652,000,000 $ 702,000,000
60% to 79% [Member] | Weighted Average [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Average Debt Service Coverage Ratio 2.24 1.89
80% to 100% [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Commercial mortgage loan $ 0 $ 21,000,000
80% to 100% [Member] | Weighted Average [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Average Debt Service Coverage Ratio 0 0
v3.8.0.1
Investments - Impaired Commercial Mortgage Loans (Details) - Mortgage Loans on Real Estate [Member] - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Financing Receivable, Impaired [Line Items]    
Impaired commercial mortgage loans, gross
Impaired commercial mortgage loans, reserves
Average recorded investment in impaired mortgage loans
Interest income on impaired commercial mortgage loans
v3.8.0.1
Investments - Other Long-Term Investments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Other Long Term Investments [Line Items]    
Percentage of the committed amounts expected to be disbursed in the next fiscal year 31.00%  
Other long-term investments $ 1,518 $ 1,462
Unfunded Commitments 1,178  
Real Estate Entities [Member]    
Other Long Term Investments [Line Items]    
Other long-term investments 591 738
Unfunded Commitments 270  
Security Partnerships [Member]    
Other Long Term Investments [Line Items]    
Other long-term investments 863 650
Unfunded Commitments 876  
Other Long Term Investments [Member]    
Other Long Term Investments [Line Items]    
Other long-term investments 64 $ 74
Unfunded Commitments $ 32  
v3.8.0.1
Investments - Short-Term Investments and Cash Equivalents (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Corporate Securities [Member]    
Short Term Investments And Cash Equivalents [Line Items]    
Short-term investments and cash equivalents $ 1,143 $ 2,234
Federal goverment securities    
Short Term Investments And Cash Equivalents [Line Items]    
Short-term investments and cash equivalents 604 378
Foreign government [Member]    
Short Term Investments And Cash Equivalents [Line Items]    
Short-term investments and cash equivalents 159 94
Money Market Funds [Member]    
Short Term Investments And Cash Equivalents [Line Items]    
Short-term investments and cash equivalents $ 12 $ 11
v3.8.0.1
Investments - Concentration of Risk (Details)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Shareholders' Equity [Member] | Investments [Member] | Maximum [Member]    
Concentration Risk [Line Items]    
Concentration Risk, Percentage 10.00% 10.00%
v3.8.0.1
Investments - Net Investment Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Schedule Of Investment Income Reported Amounts By Category [Line Items]      
Gross investment income $ 1,276 $ 1,190 $ 1,196
Less: investment expenses 50 43 43
Net investment income 1,226 1,147 1,153
Net investment income for separate accounts 225 236 262
Non-income producing real estate investments and securities partnerships, carrying value 191 220  
Fixed Maturities [Member]      
Schedule Of Investment Income Reported Amounts By Category [Line Items]      
Gross investment income 946 899 879
Equity securities [Member]      
Schedule Of Investment Income Reported Amounts By Category [Line Items]      
Gross investment income 14 4 3
Commercial Mortgage Loans [Member]      
Schedule Of Investment Income Reported Amounts By Category [Line Items]      
Gross investment income 81 91 112
Policy Loans [Member]      
Schedule Of Investment Income Reported Amounts By Category [Line Items]      
Gross investment income 69 72 72
Other Long Term Investments [Member]      
Schedule Of Investment Income Reported Amounts By Category [Line Items]      
Gross investment income 124 98 116
Short-term investments and cash [Member]      
Schedule Of Investment Income Reported Amounts By Category [Line Items]      
Gross investment income $ 42 $ 26 $ 14
v3.8.0.1
Investments - Realized Investment Gains and Losses (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Realized Gains (Losses) on Investments [Line Items]      
Realized investment gains (losses) before income taxes $ 237 $ 169 $ 57
Less income taxes (benefits) 81 60 17
Net realized investment gains (losses) 156 109 40
Fixed Maturities [Member]      
Realized Gains (Losses) on Investments [Line Items]      
Realized investment gains (losses) before income taxes 25 23 (82)
Equity securities [Member]      
Realized Gains (Losses) on Investments [Line Items]      
Realized investment gains (losses) before income taxes 52 (1) 36
Commercial Mortgage Loans [Member]      
Realized Gains (Losses) on Investments [Line Items]      
Realized investment gains (losses) before income taxes (1) 4 (2)
Other Investments Including Derivatives [Member]      
Realized Gains (Losses) on Investments [Line Items]      
Realized investment gains (losses) before income taxes $ 161 $ 143 $ 105
v3.8.0.1
Investments - Write Downs and Sales (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pre-Tax Asset Write-downs [Line Items]      
Pre-Tax Asset Write-Downs $ 31 $ 58 $ 140
Realized Investment Results Not Reflected In Revenues Table Details [Abstract]      
Separate accounts 157 16 117
Investment gains required to adjust future policy benefits for the run-off settlement annuity business 20 63 114
Sales Information For Available For Sale Fixed Maturities Equity Securities [Abstract]      
Proceeds from sales 2,012 1,544 1,555
Gross gains on sales 103 83 85
Gross losses on sales $ (18) $ (7) $ (13)
v3.8.0.1
Derivative Financial Instruments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Derivative [Line Items]    
Amounts excluded from assessment of hedge effectiveness
Gains (losses) recognized due to hedge ineffectiveness
Cash on deposit representing upfront margin required for centrally-cleared derivative instruments 9  
Fair Value
Net liability position of derivatives that contain certain credit risk-related contingent features
Gain (Loss) Recognized in Other Comprehensive Income
Gain (Loss) Recognized in Income Statement
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Interest Rate Swaps [Member]    
Derivative [Line Items]    
Notional Amount 750 750
Designated as Hedging Instrument [Member] | Fair Value Hedging [Member] | Foreign Currency Swaps [Member]    
Derivative [Line Items]    
Notional Amount $ 318 78
Maximum term length, foreign currency derivatives 12 years  
Non designated [Member] | Forward Contracts [Member]    
Derivative [Line Items]    
Notional Amount $ 255 $ 149
Maximum term length, foreign currency derivatives 3 months  
v3.8.0.1
Variable Interest Entities (Details)
$ in Billions
 12 Months Ended
Dec. 31, 2017
USD ($)
LimitedPartnerships
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 must determine if it is the primary beneficiary and must consolidate the entity. The Company would be considered the primary beneficiary if it has the power to direct the entity’s most significant economic activities or has the right to receive benefits or obligation to absorb losses that could be significant to the entity. The Company evaluates the following criteria: 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.
Securities limited partnerships and real estate limited partnerships [Member]  
Variable Interest Entity [Line Items]  
Maximum exposure to loss related to arrangements with variable interest entity $ 2.4
Number of limited partnerships defined as variable interest entities | LimitedPartnerships 116
Carrying amount of assets $ 1.2
Commitments to contribute additional cash, amount $ 1.2
Securities limited partnerships and real estate limited partnerships [Member] | Maximum [Member]  
Variable Interest Entity [Line Items]  
Non-controlling interest percentage 10.00%
Other asset-backed and corporate securities [Member]  
Variable Interest Entity [Line Items]  
Maximum exposure to loss related to arrangements with variable interest entity $ 0.6
Carrying amount of assets $ 0.6
Non-controlling interest percentage
Real estate joint ventures [Member]  
Variable Interest Entity [Line Items]  
Maximum exposure to loss related to arrangements with variable interest entity
Carrying amount of assets
Independent physician associations [Member]  
Variable Interest Entity [Line Items]  
Maximum exposure to loss related to arrangements with variable interest entity
Carrying amount of assets
India Joint Venture [Member]  
Variable Interest Entity [Line Items]  
Maximum exposure to loss related to arrangements with variable interest entity
Carrying amount of assets
v3.8.0.1
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated other comprehensive income (loss), beginning $ (1,382)    
Shareholders' other comprehensive income (loss), net of tax 300 $ (132) $ (314)
Accumulated other comprehensive income (loss), ending (1,082) (1,382)  
Securities [ Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated other comprehensive income (loss), beginning 362 418 620
Other comprehensive income (loss) before reclassifications, pre-tax 35 (48) (389)
Other comprehensive income (loss) before reclassifications, tax (expense) benefit (19) 6 157
Other comprehensive income (loss) before reclassifications, after-tax 16 (42) (232)
Reclassification adjustment, pre-tax (77) (22) 46
Reclassification adjustment, tax (expense) benefit 27 8 (16)
Reclassification adjustment, after-tax (50) (14) 30
Shareholders' other comprehensive income (loss), net of tax (34) (56) (202)
Accumulated other comprehensive income (loss), ending 328 362 418
Derivatives [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated other comprehensive income (loss), beginning 3 7 (8)
Other comprehensive income (loss) before reclassifications, pre-tax (1) 0 10
Other comprehensive income (loss) before reclassifications, tax (expense) benefit 0 0 (3)
Other comprehensive income (loss) before reclassifications, after-tax (1) 0 7
Reclassification adjustment, tax (expense) benefit 1 2 (4)
Reclassification adjustment, after-tax (2) (4) 8
Shareholders' other comprehensive income (loss), net of tax (3) (4) 15
Accumulated other comprehensive income (loss), ending 0 3 7
Derivatives [Member] | Other Operating Expenses [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Reclassification adjustment, pre-tax 1 1 12
Derivatives [Member] | Net Realized Investment Gains [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Reclassification adjustment, pre-tax (4) (7) 0
Translation of foreign currencies [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated other comprehensive income (loss), beginning (369) (274) (62)
Other comprehensive income (loss) before reclassifications, pre-tax 309 (95) (224)
Other comprehensive income (loss) before reclassifications, tax (expense) benefit (5) 0 12
Shareholders' other comprehensive income (loss), net of tax 304 (95) (212)
Accumulated other comprehensive income (loss), ending (65) (369) (274)
Postretirement benefits liability [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Accumulated other comprehensive income (loss), beginning (1,378) (1,401) (1,486)
Other comprehensive income (loss) before reclassifications, pre-tax (22) (29) 63
Other comprehensive income (loss) before reclassifications, tax (expense) benefit 8 10 (23)
Other comprehensive income (loss) before reclassifications, after-tax (14) (19) 40
Reclassification adjustment, tax (expense) benefit (24) (22) (23)
Reclassification adjustment, after-tax 47 42 45
Shareholders' other comprehensive income (loss), net of tax 33 23 85
Accumulated other comprehensive income (loss), ending (1,345) (1,378) (1,401)
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 64 64 68
Reclassification adjustment for settlement losses [Member]      
Accumulated Other Comprehensive Income Loss [Line Items]      
Reclassification adjustment, pre-tax $ 7 $ 0 $ 0
v3.8.0.1
Accumulated Other Comprehensive Income - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Realized investment (gains) losses $ (237) $ (169) $ (57)
Other operating expenses 10,033 9,584 8,982
Securities [ Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]      
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Realized investment (gains) losses (77) (22) 46
Derivatives [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]      
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Realized investment (gains) losses (4) (7) 0
Other operating expenses 1 1 12
Reclassification adjustment for amortization of net losses from past experience and prior service costs [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]      
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Other operating expenses 64 64 68
Reclassification adjustment for settlement losses [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member]      
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]      
Other operating expenses $ 7 $ 0 $ 0
v3.8.0.1
Pension and Other Postretirement Benefits - About our Plans (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Employees
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Cigna Pension Plan And Cigna Pension Plan For Certain Former Employees [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Covered retirees | Employees 22,200    
Covered vested former employees | Employees 14,500    
Covered active employees | Employees 14,000    
Tax status us-gaap:QualifiedPlanMember    
Funding status us-gaap:FundedPlanMember    
Sponsor location country:US    
Plan Type us-gaap:PensionPlansDefinedBenefitMember    
Cigna Supplemental Pension Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Tax status us-gaap:NonqualifiedPlanMember    
Funding status us-gaap:UnfundedPlanMember    
Sponsor location country:US    
Plan Type us-gaap:PensionPlansDefinedBenefitMember    
United States [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Percent at which excess actuarial gains (losses) are amortized to other operating expense 10.00%    
Period for recognizing differences between actual and expected long-term returns to determine penison costs 5 years    
United States [Member] | Pension Benefits [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Market-related valuation of pension plan assets $ 4,100    
Plan assets at fair value 4,281 $ 3,977 $ 3,981
Defined benefit plan cost 2 18 (1)
Defined benefit plan benefit obligation 4,969 4,888 4,934
United States [Member] | Other Postretirement Benefits [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value 2 5 8
Defined benefit plan cost 7 9 8
Defined benefit plan benefit obligation $ 258 $ 277 $ 295
United States [Member] | Postretirement medical plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Covered retirees | Employees 18,400    
Covered active employees | Employees 18,600    
Percentage of year 2000 per capita cost at which defined benefit plan cost is capped for post-1988 retirees 200.00%    
Funding status us-gaap:UnfundedPlanMember    
Foreign Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value    
Defined benefit plan cost    
Defined benefit plan benefit obligation    
v3.8.0.1
Pension and Other Postretirement Benefits - Funded Status (Details) - United States [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Benefits [Member]      
Change in benefit obligation [Abstract]      
Benefit obligation, January 1 $ 4,888 $ 4,934  
Service cost 3 2 $ 2
Interest cost 186 199 194
(Gain) loss from past experience 181 57  
Benefits paid from plan assets (277) (284)  
Benefits paid - other (12) (20)  
Benefit obligation, December 31 4,969 4,888 4,934
Change in plan assets [Roll Forward]      
Fair value of plan assets, January 1 3,977 3,981  
Actual return on plan assets 418 279  
Benefits paid (277) (284)  
Contributions 163 1  
Fair value of plan assets, December 31 4,281 3,977 3,981
Funded Status (688) (911)  
Pension Benefits [Member] | Qualified Plan [Member]      
Change in plan assets [Roll Forward]      
Expected total pension plan contributions for next fiscal year 0    
Pension Benefits [Member] | Non-qualifed Plan [Member]      
Change in plan assets [Roll Forward]      
Fair value of plan assets, December 31 0    
Other Postretirement Benefits [Member]      
Change in benefit obligation [Abstract]      
Benefit obligation, January 1 277 295  
Service cost 0 0 0
Interest cost 9 11 11
(Gain) loss from past experience 1 2  
Benefits paid from plan assets (3) (3)  
Benefits paid - other (26) (28)  
Benefit obligation, December 31 258 277 295
Change in plan assets [Roll Forward]      
Fair value of plan assets, January 1 5 8  
Actual return on plan assets 0 0  
Benefits paid (3) (3)  
Contributions 0 0  
Fair value of plan assets, December 31 2 5 $ 8
Funded Status (256) $ (272)  
Other Postretirement Benefits [Member] | Non-qualifed Plan [Member]      
Change in plan assets [Roll Forward]      
Fair value of plan assets, December 31 $ 0    
v3.8.0.1
Pension and Other Postretirement Benefit Plans - Benefit Payments (Details) - United States [Member]
$ in Millions
Dec. 31, 2017
USD ($)
Pension Benefits [Member]  
Benefit payments including expected future services [Abstract]  
Paid in 2018 $ 340
Paid in 2019 334
Paid in 2020 325
Paid in 2021 325
Paid in 2022 324
Paid in 2023-2027 1,573
Other Postretirement Benefits [Member]  
Benefit payments including expected future services [Abstract]  
Paid in 2018 27
Paid in 2019 26
Paid in 2020 25
Paid in 2021 23
Paid in 2022 22
Paid in 2023-2027 $ 87
v3.8.0.1
Pension and Other Postretirement Benefit Plans - Amounts included in AOCI (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Pension Benefits [Member]    
Amounts included in AOCI [Abstract]    
Unrecognized net gains (losses) $ (2,113) $ (2,163)
Unrecognized prior service cost (6) (6)
Postretirement benefits liabilty adjustment (2,119) (2,169)
Expected pre-tax gains (losses) related to amortization of net actuarial gain/loss $ (69)  
Weighted average amortization period for amortization of net actuarial gain/loss 26 years  
Other Postretirement Benefits [Member]    
Amounts included in AOCI [Abstract]    
Unrecognized net gains (losses) $ 0 0
Unrecognized prior service cost 46 49
Postretirement benefits liabilty adjustment 46 $ 49
Expected pre-tax (gains) losses related to amortization of net prior service cost $ (3)  
Weighted average amortization period for prior service costs 26 years  
v3.8.0.1
Pension and Other Postretirement Benefits - Cost of our Plans (Details) - United States [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension Benefits [Member]      
Components of net pension and other postretirement benefits cost [Abstract]      
Service cost $ 3 $ 2 $ 2
Interest cost 186 199 194
Expected long-term return on plan assets (260) (249) (267)
Amortization of net loss from past experience 66 65 70
Amortization of prior service cost 0 1 0
Settlement loss 7 0 0
Net plan cost 2 18 (1)
Other Postretirement Benefits [Member]      
Components of net pension and other postretirement benefits cost [Abstract]      
Service cost 0 0 0
Interest cost 9 11 11
Expected long-term return on plan assets 0 0 0
Amortization of net loss from past experience 1 1 0
Amortization of prior service cost (3) (3) (3)
Settlement loss 0 0 0
Net plan cost $ 7 $ 9 $ 8
v3.8.0.1
Pension and Other Postretirement Benefits - Assumptions Used (Details) - United States [Member] - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Assumptions for pension and other postretirement benefits [Abstract]    
Mortality table for pension and postretirement benefit obligations, current year RP 2014 with MP 2017 projection scale  
Mortality table for pension and postretirement benefit obligations, prior year RP 2014 with MP 2016 projection scale  
Defined Benefit Plan Assumed Health Care Cost Trend Rates [Abstract]    
Estimated rate of increase in postretirement health care costs, next fiscal year 6.50%  
Annual decrease in estimated rate of increase in postretirement health care costs 0.25%  
Estimated rate of increase in postretirement health care costs, ultimate 4.75%  
Year in which ultimate estimated rate of increase in postretirement health care costs is reached 2024  
Pension Benefits [Member]    
Assumptions for pension and other postretirement benefits [Abstract]    
Discount rate: Benefit obligation 3.51% 3.95%
Discount rate: Benefit cost 3.95% 4.17%
Expected long-term return on plan assets: Benefit cost 7.25% 7.25%
Other Postretirement Benefits [Member]    
Assumptions for pension and other postretirement benefits [Abstract]    
Discount rate: Benefit obligation 3.37% 3.70%
Discount rate: Benefit cost 3.70% 3.89%
Expected long-term return on plan assets: Benefit cost 5.00% 5.00%
Impact of a 1% increase or decrease in estimate rate of future increases in postretirement health care benefits [Abstract]    
Effect of increase in estimated rate on postretirement cost  
Effect of decrease in estimated rate on postretirement cost  
Effect of increase in estimated rate on postretirement benefit obligation  
Effect of decrease in estimated rate on postretirement benefit obligation  
v3.8.0.1
Pension and Other Postretirement Benefits - Pension Plan Assets (Details) - Pension Benefits [Member] - United States [Member] - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]      
Plan assets invested in separate accounts of subsidiaries $ 3,900    
Plan assets invested in funds offered by the buyer of the retirement benefits business 342    
Plan assets at fair value 4,281 $ 3,977 $ 3,981
Fixed Maturities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value $ 2,031 1,778  
Target allocation percentages 50.00%    
Federal government and agency [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value $ 1 1  
Corporate [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value 1,124 1,125  
Asset-backed [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value 22 22  
Fund Investments And Pooled Separate Accounts [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value 884 630  
Equity securities [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value $ 1,165 1,031  
Target allocation percentages 30.00%    
Domestic [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value $ 689 681  
International, including funds and pooled seperate accounts [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value $ 476 350  
Other Plan Asset Categories [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Target allocation percentages 20.00%    
Securities Partnerships [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value $ 457 424  
Real estate, including pooled separate accounts [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value 300 289  
Commercial Mortgage Loans [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value 140 129  
Hedge Funds [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value 73 196  
Guaranteed Deposit Account Contract [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value 63 67  
Cash equivalents and other current assets, net [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Plan assets at fair value $ 52 $ 63  
v3.8.0.1
Pension and Other Postretirement Benefit Plans - 401(k) Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Pension and Other Postretirement Benefit Plans [Abstract]      
Expense for matching contributions in the 401K plan $ 122 $ 113 $ 106
v3.8.0.1
Employee Incentive Plans - About our Plans (Details) - shares
shares in Millions
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Employee Incentive Plans [Abstract]      
Common shares available for award 14.0 6.8 8.6
v3.8.0.1
Employee Incentive Plans - Stock Options (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Employee Incentive Plan Aggregate Disclosures [Line Items]            
Compensation cost $ 178 $ 128 $ 111      
Employee Stock Option [Member]            
Employee Incentive Plan Aggregate Disclosures [Line Items]            
Compensation cost $ 52 $ 53 $ 42      
Black-Scholes option-pricing model assumptions and resulting fair value of options [Abstract]            
Dividend Yield 0.00% 0.00% 0.00%      
Expected volatility 35.00% 35.00% 35.00%      
Risk-free interest rate 1.80% 1.20% 1.30%      
Expected option life 4 years 3 months 18 days 4 years 3 months 18 days 4 years 3 months 18 days      
Weighted average fair value of options $ 46.38 $ 42.01 $ 36.4      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]            
Options outstanding - January 1 7,097 6,433 7,331      
Options Granted 1,230 1,336 1,410      
Options Exercised (2,072) (577) (2,146)      
Options Expired or canceled (99) (95) (162)      
Options outstanding - December 31 6,156 7,097 6,433      
Options Exercisable - Number (in thousands)       3,894 4,409 3,414
Share Based Compensation Arrangement By Share Based Payment Award, Options Outstanding, Weighted Average Exercise Price [Roll Forward]            
Weighted Average Exercise Price - Options Outstanding - January 1 $ 82.01 $ 68.86 $ 51.84      
Weighted Average Exercise Price - Options Granted 149.17 139.2 120.94      
Weighted Average Exercise Price - Options Exercised 63.41 62.09 43.63      
Weighted Average Exercise Price - Options Expired or canceled 138.41 117.18 86.04      
Weighted Average Exercise Price - Options Outstanding - December 31 $ 100.79 $ 82.01 $ 68.86      
Options Exercisable - Weighted Average Exercise Price       $ 77.36 $ 58.36 $ 46.55
Related compensation expense to be recognized       $ 39    
Period over which compensation expense will be recognized 2 years          
Information For Stock Options Exercised Details [Abstract]            
Intrinsic value of options exercised $ 218 $ 41 $ 179      
Cash received for options exercised 131 36 94      
Tax benefit from options exercised $ 41 $ 11 $ 42      
Information for Outstanding Common Stock Options [Abstract]            
Options Outstanding - Number (in thousands) 6,156 7,097 7,331 6,156 7,097 6,433
Options Outstanding - Total intrinsic value       $ 630    
Options Outstanding - Weighted Average Exercise Price $ 82.01 $ 82.01 $ 51.84 $ 100.79 $ 82.01 $ 68.86
Options Outstanding - Weighted average remaining contractual life 6 years 7 months 6 days          
Options Exercisable - Number (in thousands)       3,894 4,409 3,414
Options Exercisable - Total Intrinsic Value       $ 490    
Options Exercisable - Weighted Average Exercise Price       $ 77.36 $ 58.36 $ 46.55
Options Exercisable - Weighted Average Remaining Contractual Life 5 years 6 months          
Employee Stock Option [Member] | Minimum [Member]            
Employee Incentive Plan Aggregate Disclosures [Line Items]            
Award vesting period 1 year          
Employee Stock Option [Member] | Maximum [Member]            
Employee Incentive Plan Aggregate Disclosures [Line Items]            
Award vesting period 3 years          
Award expiration period 10 years          
Black-Scholes option-pricing model assumptions and resulting fair value of options [Abstract]            
Remaining maturity of traded options 1 year          
v3.8.0.1
Employee Incentive Plans - Restricted Stock (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Employees
$ / shares
shares
Dec. 31, 2016
USD ($)
$ / shares
shares
Dec. 31, 2015
USD ($)
$ / shares
shares
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Compensation cost | $ $ 178 $ 128 $ 111
Restricted Stock Grants And Units [Member]      
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Compensation cost | $ $ 53 $ 40 $ 33
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Nonvested, Roll Forward      
Outstanding - January 1 | shares 1,309 1,642 2,121
Awarded | shares 451 315 352
Vested | shares (409) (591) (736)
Forfeited | shares (56) (57) (95)
Outstanding - December 31 | shares 1,295 1,309 1,642
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Weighted Average Grant Date Fair Value Roll Forward [Abstract]      
Outstanding - January 1 | $ / shares $ 97.78 $ 72.58 $ 53.59
Awarded | $ / shares 155.21 138.61 121.93
Vested | $ / shares 67.09 50.01 41.99
Forfeited | $ / shares 121.74 92.51 68.31
Outstanding - December 31 | $ / shares $ 126.44 $ 97.78 $ 72.58
Fair value of shares vested | $ $ 62 $ 82 $ 92
Number of employees holding share-based payment awards | Employees 4,800    
Related compensation expense to be recognized | $ $ 68    
Period over which compensation expense will be recognized 2 years    
Restricted Stock Grants And Units [Member] | Minimum [Member]      
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Award vesting period 3 years    
Restricted Stock Grants And Units [Member] | Maximum [Member]      
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Award vesting period 5 years    
v3.8.0.1
Employee Incentive Plans - Strategic Performance Shares (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Employees
$ / shares
shares
Dec. 31, 2016
USD ($)
$ / shares
shares
Dec. 31, 2015
USD ($)
$ / shares
shares
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Compensation cost | $ $ 178 $ 128 $ 111
Strategic Performance Shares [Member]      
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Performance period 3 years    
Percent of shares subject to market conditions 50.00%    
Percent of shares subject to performance conditions 50.00%    
Compensation cost | $ $ 40 $ 35 $ 36
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Nonvested, Roll Forward      
Outstanding - January 1 942 1,188 1,547
Awarded 275 286 311
Vested (386) (494) (608)
Forfeited (53) (38) (62)
Outstanding - December 31 778 942 1,188
Share Based Compensation Arrangement By Share Based Payment Award, Equity Instruments Other Than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]      
Outstanding - January 1 | $ / shares $ 109.14 $ 81.68 $ 59.2
Awarded | $ / shares 150.06 139.05 121.78
Vested | $ / shares 78.91 60.15 45.51
Forfeited | $ / shares 138.19 112.7 76.33
Outstanding - December 31 | $ / shares $ 136.57 $ 109.14 $ 81.68
Employee Service Share-based Compensation, Additional Disclosures [Abstract]      
Shares of Cigna common stock distributed upon SPS vesting 476 768 972
Fair value of shares vested | $ $ 70 $ 109 $ 119
Number of employees holding share-based payment awards | Employees 1,500    
Related compensation expense to be recognized | $ $ 38    
Period over which compensation expense will be recognized 2 years    
Strategic Performance Shares [Member] | Minimum [Member]      
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Percentage of original shares granted that may be awarded at end of performance period 0.00%    
Strategic Performance Shares [Member] | Maximum [Member]      
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Percentage of original shares granted that may be awarded at end of performance period 200.00%    
v3.8.0.1
Employee Incentive Plans - One-time Employee Stock Award (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Compensation cost $ 178 $ 128 $ 111
Stock award [Member]      
Employee Incentive Plan Aggregate Disclosures [Line Items]      
Shares issued 205,000    
Stock award price $ 162.96    
Compensation cost $ 33    
v3.8.0.1
Employee Incentive Plans - Compensation Cost and Tax Effects of Share-based Compensation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Employee Incentive Plans [Abstract]      
Compensation cost $ 178 $ 128 $ 111
Tax benefits recognized in earnings based on expense $ 79 $ 57 $ 24
v3.8.0.1
Goodwill, Other Intangibles, and Property and Equipment - Goodwill Activity (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Line Items]    
Goodwill, Beginning Balance $ 5,980 $ 6,019
Goodwill acquired, net 154 1
Impact of foreign currency translation 30 (40)
Goodwill, Ending Balance 6,164 $ 5,980
Global Health Care [Member]    
Goodwill [Line Items]    
Goodwill, Ending Balance 5,900  
Global Supplemental Benefits [Member]    
Goodwill [Line Items]    
Goodwill, Ending Balance $ 300  
v3.8.0.1
Goodwill, Other Intangibles, and Property and Equipment - Amoritzation Periods (Details)
 12 Months Ended
Dec. 31, 2017
Minimum [Member]  
Finite Lived Intangible Assets Net [Line Items]  
Other intangibles amortization period 5 years
Maximum [Member]  
Finite Lived Intangible Assets Net [Line Items]  
Other intangibles amortization period 30 years
v3.8.0.1
Goodwill, Other Intangibles, and Property and Equipment - Other Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Finite Lived Intangible Assets Net [Line Items]    
Cost $ 1,803 $ 1,772
Accumulated amortization 1,312 1,184
Net carrying value 491 588
Other assets [Member]    
Finite Lived Intangible Assets Net [Line Items]    
Cost 1,571 1,540
Accumulated amortization 1,226 1,116
Net carrying value 345 424
Customer relationships [Member] | Other assets [Member]    
Finite Lived Intangible Assets Net [Line Items]    
Cost 1,280 1,256
Accumulated amortization 1,056 965
Net carrying value 224 291
Other intangibles [Member] | Other assets [Member]    
Finite Lived Intangible Assets Net [Line Items]    
Cost 291 284
Accumulated amortization 170 151
Net carrying value 121 133
Value of business acquired [Member] | Deferred policy acquisition costs [Member]    
Finite Lived Intangible Assets Net [Line Items]    
Cost 232 232
Accumulated amortization 86 68
Net carrying value $ 146 $ 164
v3.8.0.1
Goodwill, Other Intangibles, and Property and Equipment - Useful Life (Details)
 12 Months Ended
Dec. 31, 2017
Building improvements [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, plant and equipment useful life 10 years
Building improvements [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, plant and equipment useful life 40 years
Purchased software [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, plant and equipment useful life 3 years
Purchased software [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, plant and equipment useful life 5 years
Internally developed software [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, plant and equipment useful life 3 years
Internally developed software [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, plant and equipment useful life 7 years
Furniture and equipment (including computer equipment) [Member] | Minimum [Member]  
Property Plant And Equipment [Line Items]  
Property, plant and equipment useful life 3 years
Furniture and equipment (including computer equipment) [Member] | Maximum [Member]  
Property Plant And Equipment [Line Items]  
Property, plant and equipment useful life 10 years
v3.8.0.1
Goodwill, Other Intangibles, and Property and Equipment - Property and Equipment (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Property Plant And Equipment [Line Items]    
Cost $ 4,613 $ 4,364
Accumulated amortization 3,050 2,828
Net carrying value $ 1,563 1,536
Capital lease agreements, term length 4 years  
Internal-use software [Member]    
Property Plant And Equipment [Line Items]    
Cost $ 2,991 2,766
Accumulated amortization 2,184 1,997
Net carrying value 807 769
Total other property and equipment [Member]    
Property Plant And Equipment [Line Items]    
Cost 1,622 1,598
Accumulated amortization 866 831
Net carrying value 756 767
Assets recorded under capital leases [Member]    
Property Plant And Equipment [Line Items]    
Cost 49 87
Accumulated amortization 31 49
Net carrying value 18 38
Other property and equipment not recorded under capital leases [Member]    
Property Plant And Equipment [Line Items]    
Cost 1,573 1,511
Accumulated amortization 835 782
Net carrying value $ 738 $ 729
v3.8.0.1
Goodwill, Other Intangibles, and Property and Equipment - Depreciation and Amortization (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Depreciation And Amortization By Type [Line Items]      
Depreciation and amortization $ 566 $ 610 $ 585
Bargain purchase gain     23
Internal-use software [Member]      
Depreciation And Amortization By Type [Line Items]      
Depreciation and amortization 298 303 288
Other property and equipment [Member]      
Depreciation And Amortization By Type [Line Items]      
Depreciation and amortization 153 158 160
Assets recorded under capital leases [Member]      
Depreciation And Amortization By Type [Line Items]      
Amortization on assets under capital leases 14 20 22
Value of business acquired [Member]      
Depreciation And Amortization By Type [Line Items]      
Depreciation and amortization 18 20 18
Other intangibles [Member]      
Depreciation And Amortization By Type [Line Items]      
Depreciation and amortization $ 97 $ 129 119
Bargain purchase gain     $ 23
v3.8.0.1
Goodwill, Other Intangibles, and Property and Equipment - Amortization for Intangible Assets (Details)
$ in Millions
Dec. 31, 2017
USD ($)
Goodwill Other Intangibles And Property And Equipment [Abstract]  
Estimated pre-tax intangible asset amortization expense in 2018 $ 387
Estimated pre-tax intangible asset amortization expense in 2019 299
Estimated pre-tax intangible asset amortization expense in 2020 177
Estimated pre-tax intangible asset amortization expense in 2021 114
Estimated pre-tax intangible asset amortization expense in 2022 $ 88
v3.8.0.1
Leases and Rentals (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Leases Rentals And Outsourced Service Arrangements [Line Items]      
Net rental expense for operating leases $ 162 $ 151 $ 165
Future net minimum rental payments under non-cancelable operating leases [Abstract]      
Future net minimum rental payments under non-cancelable operating leases 580    
Payable in 2018 130    
Payable in 2019 113    
Payable in 2020 94    
Payable in 2021 73    
Payable in 2022 58    
Payable in 2023 and thereafter $ 114    
Minimum [Member] | Office space [Member]      
Leases Rentals And Outsourced Service Arrangements [Line Items]      
Term length for operating leases 1 month    
Maximum [Member] | Office space [Member]      
Leases Rentals And Outsourced Service Arrangements [Line Items]      
Term length for operating leases 18 years    
v3.8.0.1
Shareholders Equity and Dividend Restrictions (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statutory Accounting Practices [Line Items]      
Statutory net income $ 2.5 $ 2.0 $ 2.1
Statutory surplus 10.4 $ 8.5 $ 8.0
Minimum statutory surplus required by regulators 3.2    
Investments on deposit with regulatory bodies 0.6    
Maximum dividend distributions permitted in 2018 without regulatory approval 1.6    
Maximum loans to parent company permitted without regulatory approval 1.3    
Restricted GAAP net assets of Cigna Corporation's subsidiaries $ 12.0    
v3.8.0.1
Income Taxes - U.S. Tax Reform Legislation (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Line Items]        
Nominal federal income tax rate   35.00%    
Additional tax expense due to tax reform legislation, provisional amount   $ 232 $ 0 $ 0
Additional tax expense due to change in tax rate, provisional amount   144    
Additional one-time tax expense on accumulated unremitted foreign earnings, provisional amount   88    
Reduction of operating expenses resulting from tax reform   56    
Reduction of operating expenses resulting from tax reform, after-tax   36    
Tax effect offsetting reduction of operating expenses included in additional tax epense due to tax reform legislation   36    
Net after-tax effect of reduction in operating expenses resulting from tax reform   $ 0    
Scenario Plan [Member]        
Income Tax Disclosure [Line Items]        
Nominal federal income tax rate 21.00%      
v3.8.0.1
Income Taxes - Income Tax Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Current taxes      
U.S. income taxes $ 974 $ 935 $ 1,076
Foreign income taxes 122 95 93
State income taxes 36 32 60
Total taxes, current 1,132 1,062 1,229
Deferred taxes (benefits)      
U.S. Income taxes (benefits) 204 69 22
Foreign income taxes (benefits) 39 9 (6)
State income taxes (benefits) (1) (4) 5
Total taxes (benefits), deferred 242 74 21
Total taxes $ 1,374 $ 1,136 $ 1,250
v3.8.0.1
Income Taxes - Reconciliation to Nominal Tax Rate (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Taxes [Abstract]      
Nominal federal income tax rate 35.00%    
Reconciliation of total taxes to nominal federal rate details [Abstract]      
Tax expense at nominal rate $ 1,262 $ 1,043 $ 1,164
Effect of U.S. tax reform legislation 232 0 0
Effect of undistributed foreign earnings (70) (57) (67)
Health insurance industry tax 0 108 109
State income tax (net of federal income tax benefit) 23 18 42
Other (73) 24 2
Total income taxes $ 1,374 $ 1,136 $ 1,250
v3.8.0.1
Income Taxes - Foreign Earnings Percentage (Details) - Pre-tax income [Member] - Geographic Concentration Risk [Member]
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Concentration Risk [Line Items]      
Concentration Risk, Percentage 14.00% 11.00% 11.00%
Concentration Risk, Benchmark Description Pre-tax income, consolidated    
Concentration Risk, Additional Characteristic Foreign operations    
South Korea [Member]      
Concentration Risk [Line Items]      
Concentration Risk, Percentage 13.00% 11.00% 8.00%
Concentration Risk, Benchmark Description Pre-tax income, consolidated    
Concentration Risk, Additional Characteristic South Korea    
v3.8.0.1
Income Taxes - Effective Tax Rates (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Income Taxes [Abstract]    
Consolidated effective tax rate 38.10% 38.10%
Cumulative unrecognized deferred tax liabilities $ 120  
v3.8.0.1
Income Taxes - Deferred Income Taxes (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Deferred tax assets [Abstract]    
Employee and retiree benefit plans $ 279 $ 481
Other insurance and contractholder liabilities 352 460
Net operating losses 105 128
Other accrued liabilities 101 166
Other 91 140
Deferred tax assets before valuation allowance 928 1,375
Valuation allowance for deferred tax assets (72) (87)
Deferred tax assets, net of valuation allowance 856 1,288
Deferred tax liabilities [Abstract]    
Depreciation and amortization 496 781
Unrealized appreciation (depreciation) on investments and foreign currency translation 102 149
Other 225 54
Total deferred tax liabilities 823 984
Net deferred income tax assets 33 $ 304
Foreign [Member]    
Deferred tax liabilities [Abstract]    
Total deferred tax liabilities $ 175  
v3.8.0.1
Income Taxes - Uncertain Tax Positions (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of unrecognized tax benefits details [Abstract]      
Balance at January 1, $ 31 $ 31 $ 26
Increase due to current year positions 7 10 7
Reduction related to settlements with taxing authorities (1) (2) 0
Reduction related to lapse of applicable statute of limitations (2) (8) (2)
Balance at December 31, $ 35 $ 31 $ 31
v3.8.0.1
Contingencies and Other Matters - Guarantees (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2017
USD ($)
Financial Guarantee [Member] | Retiree and Life Insurance Benefits [Member]  
Guarantee Obligations [Line Items]  
Maximum Exposure, Undiscounted $ 470
Percentage of benefit obligations reinsured 12.00%
Guarantee obligations carrying value $ 0
Financial Guarantee [Member] | Retiree and Life Insurance Benefits [Member] | Minimum [Member]  
Guarantee Obligations [Line Items]  
Assets maintained by employers 470
Indemnification obligations to lenders [Member]  
Guarantee Obligations [Line Items]  
Maximum Exposure, Undiscounted 90
Guarantee obligations carrying value 0
Indemnification obligations in connection with acquistion, disposition and reinsurance transactions [Member]  
Guarantee Obligations [Line Items]  
Guarantee obligations carrying value $ 0
Maximum Exposure Inestimable 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.
v3.8.0.1
Contingencies and Other Matters - Legal and Regulatory Matters (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Sep. 30, 2016
Guaranty Fund Assessments [Member]    
Loss Contingencies [Line Items]    
Charges for loss contingency, pre-tax $ 130  
Charges for loss contingency, after-tax $ 85  
Discount rate, Penn Treaty assessments 3.50%  
Recorded liability, Penn Treaty assessment $ 55  
Total future expected cash outflows, Penn Treaty assessment 65  
Pending Litigation [Member]    
Loss Contingencies [Line Items]    
Reserves for litigation matters, pre-tax 195  
Reserves for litigation matters, after-tax $ 155  
Settled Litigation [Member]    
Loss Contingencies [Line Items]    
Reserves for litigation matters, pre-tax   $ 40
Reserves for litigation matters, after-tax   $ 25
v3.8.0.1
Contingencies and Other Matters - Anthem Litigation (Details)
$ in Millions
Dec. 31, 2017
USD ($)
Contingencies And Other Matters [Abstract]  
Termination fee payable to Company $ 1,850
Positive Outcome Of Litigation [Member] | Minimum [Member]  
Gain Contingencies [Line Items]  
Damages sought $ 13,000
v3.8.0.1
Segment Information - Special Items (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2015
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
After-tax [Abstract]                        
Other operating expenses (see Note 20 for details)                   $ (36)    
Tax expense (see Note 20 for details)                   232 $ 0 $ 0
Total charges associated with U.S. tax reform   $ 196 $ 0 $ 0 $ 0         196    
Debt extinguishment costs $ 65 0 209 0 0         209   65
Long-term care guaranty fund assessment   0 0 0 83         83    
Transaction-related costs   $ 25 6 $ (47) $ 49 $ 39 $ 46 $ 26 $ 36 33 147 57
Risk corridor allowance           80 0 0 0   80  
Charges associated with litigation matters           $ 0 $ 25 $ 0 $ 0   25  
Before-tax [Abstract]                        
Other operating expenses (see note 20 for additional details)                   (56)    
Total charges associated with U.S. tax reform                   (56)    
Debt extinguishment costs $ 100   $ 321             321 0 100
Long-term care guaranty fund assessment                   129    
Transaction-related costs                   126 166 66
Risk corridor allowance                     124  
Charges associated with litigation matters                     40  
Other Operating Expenses [Member]                        
After-tax [Abstract]                        
Other operating expenses (see Note 20 for details)                   (36)    
Debt extinguishment costs                   209   65
Long-term care guaranty fund assessment                   83    
Transaction-related costs                   33 147 57
Risk corridor allowance                     80  
Charges associated with litigation matters                     25  
Before-tax [Abstract]                        
Other operating expenses (see note 20 for additional details)                   (56)    
Debt extinguishment costs                   321   100
Long-term care guaranty fund assessment                   129    
Transaction-related costs                   $ 126 166 $ 66
Risk corridor allowance                     124  
Charges associated with litigation matters                     $ 40  
v3.8.0.1
Segment Information - Summarized Segment Financial Information (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2015
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]                        
Premiums                   $ 32,307 $ 30,626 $ 29,642
Fees and other revenues                   4,867 4,760 4,488
Net investment income                   1,226 1,147 1,153
Mail order pharmacy revenues                   2,979 2,966 2,536
Total operating revenues                   41,379 39,499 37,819
Net realized investment gains (losses)                   237 169 57
Total revenues   $ 10,531 $ 10,382 $ 10,318 $ 10,385 $ 9,944 $ 9,880 $ 9,960 $ 9,884 41,616 39,668 37,876
Depreciation and amortization                   566 610 585
Total benefits and expenses                   38,010 36,689 34,549
Income (loss) before income taxes   758 824 1,134 890 605 742 813 819 3,606 2,979 3,327
Income taxes (benefits) and net (income) loss attributable to noncontrolling interests                   1,369 1,112 1,233
Shareholders' Net Income   266 560 813 598 382 456 510 519 2,237 1,867 2,094
After-tax adjustments to reconcile to adjusted income from operations:                        
Realized investment (gains) losses                   (156) (109) (40)
Amortization of other acquired intangible assets                   66 94 80
Special items:                        
U.S. tax reform   196 0 0 0         196    
Debt extinguishment costs $ 65 0 209 0 0         209   65
Long-term care guaranty fund assessment   0 0 0 83         83    
Transaction-related costs   $ 25 $ 6 $ (47) $ 49 39 46 26 36 33 147 57
Risk corridor allowance           80 0 0 0   80  
Charges associated with litigation matters           $ 0 $ 25 $ 0 $ 0   25  
Adjusted income (loss) from operations                   2,668 2,104 2,256
Bargain purchase gain                       23
Operating Segments [Member] | Global Health Benefits Segment [Member]                        
Segment Reporting Information [Line Items]                        
Premiums                   24,538 23,295 22,696
Fees and other revenues                   4,722 4,623 4,357
Net investment income                   378 315 340
Mail order pharmacy revenues                   2,979 2,966 2,536
Total operating revenues                   32,617 31,199 29,929
Net realized investment gains (losses)                   136 119 43
Total revenues                   32,753 31,318 29,972
Depreciation and amortization                   477 526 526
Total benefits and expenses                   29,440 28,467 27,028
Income (loss) before income taxes                   3,313 2,851 2,944
Income taxes (benefits) and net (income) loss attributable to noncontrolling interests                   1,031 1,100 1,150
Shareholders' Net Income                   2,282 1,751 1,794
After-tax adjustments to reconcile to adjusted income from operations:                        
Realized investment (gains) losses                   (88) (78) (30)
Amortization of other acquired intangible assets                   48 74 84
Special items:                        
U.S. tax reform                   (137)    
Debt extinguishment costs                   0   0
Long-term care guaranty fund assessment                   68    
Transaction-related costs                   0 0 0
Risk corridor allowance                     80  
Charges associated with litigation matters                     25  
Adjusted income (loss) from operations                   2,173 1,852 1,848
Operating Segments [Member] | Global Supplemental Benefits Segment [Member]                        
Segment Reporting Information [Line Items]                        
Premiums                   3,684 3,226 3,000
Fees and other revenues                   66 49 46
Net investment income                   122 110 103
Mail order pharmacy revenues                   0 0 0
Total operating revenues                   3,872 3,385 3,149
Net realized investment gains (losses)                   32 (5) 0
Total revenues                   3,904 3,380 3,149
Depreciation and amortization                   54 54 31
Total benefits and expenses                   3,407 3,052 2,849
Income (loss) before income taxes                   497 328 300
Income taxes (benefits) and net (income) loss attributable to noncontrolling interests                   195 60 33
Shareholders' Net Income                   302 268 267
After-tax adjustments to reconcile to adjusted income from operations:                        
Realized investment (gains) losses                   (24) 6 (1)
Amortization of other acquired intangible assets                   18 20 (4)
Special items:                        
U.S. tax reform                   73    
Debt extinguishment costs                   0   0
Long-term care guaranty fund assessment                   0    
Transaction-related costs                   0 0 0
Risk corridor allowance                     0  
Charges associated with litigation matters                     0  
Adjusted income (loss) from operations                   369 294 262
Bargain purchase gain                       23
Operating Segments [Member] | Group Disability And Life Segment [Member]                        
Segment Reporting Information [Line Items]                        
Premiums                   3,985 4,002 3,843
Fees and other revenues                   106 98 91
Net investment income                   350 343 337
Mail order pharmacy revenues                   0 0 0
Total operating revenues                   4,441 4,443 4,271
Net realized investment gains (losses)                   74 59 5
Total revenues                   4,515 4,502 4,276
Depreciation and amortization                   30 28 26
Total benefits and expenses                   4,044 4,273 3,796
Income (loss) before income taxes                   471 229 480
Income taxes (benefits) and net (income) loss attributable to noncontrolling interests                   113 65 152
Shareholders' Net Income                   358 164 328
After-tax adjustments to reconcile to adjusted income from operations:                        
Realized investment (gains) losses                   (49) (39) (4)
Amortization of other acquired intangible assets                   0 0 0
Special items:                        
U.S. tax reform                   (39)    
Debt extinguishment costs                   0   0
Long-term care guaranty fund assessment                   15    
Transaction-related costs                   0 0 0
Risk corridor allowance                     0  
Charges associated with litigation matters                     0  
Adjusted income (loss) from operations                   285 125 324
Operating Segments [Member] | Other Operations Segment [Member]                        
Segment Reporting Information [Line Items]                        
Premiums                   112 103 103
Fees and other revenues                   10 11 13
Net investment income                   346 358 369
Mail order pharmacy revenues                   0 0 0
Total operating revenues                   468 472 485
Net realized investment gains (losses)                   (5) (5) 9
Total revenues                   463 467 494
Depreciation and amortization                   1 1 1
Total benefits and expenses                   316 369 374
Income (loss) before income taxes                   147 98 120
Income taxes (benefits) and net (income) loss attributable to noncontrolling interests                   222 30 40
Shareholders' Net Income                   (75) 68 80
After-tax adjustments to reconcile to adjusted income from operations:                        
Realized investment (gains) losses                   4 2 (5)
Amortization of other acquired intangible assets                   0 0 0
Special items:                        
U.S. tax reform                   138    
Debt extinguishment costs                   0   0
Long-term care guaranty fund assessment                   0    
Transaction-related costs                   0 0 0
Risk corridor allowance                     0  
Charges associated with litigation matters                     0  
Adjusted income (loss) from operations                   67 70 75
Corporate [Member]                        
Segment Reporting Information [Line Items]                        
Premiums                   (12) 0 0
Fees and other revenues                   (37) (21) (19)
Net investment income                   30 21 4
Mail order pharmacy revenues                   0 0 0
Total operating revenues                   (19) 0 (15)
Net realized investment gains (losses)                   0 1 0
Total revenues                   (19) 1 (15)
Depreciation and amortization                   4 1 1
Total benefits and expenses                   803 528 502
Income (loss) before income taxes                   (822) (527) (517)
Income taxes (benefits) and net (income) loss attributable to noncontrolling interests                   (192) (143) (142)
Shareholders' Net Income                   (630) (384) (375)
After-tax adjustments to reconcile to adjusted income from operations:                        
Realized investment (gains) losses                   1 0 0
Amortization of other acquired intangible assets                   0 0 0
Special items:                        
U.S. tax reform                   161    
Debt extinguishment costs                   209   65
Long-term care guaranty fund assessment                   0    
Transaction-related costs                   33 147 57
Risk corridor allowance                     0  
Charges associated with litigation matters                     0  
Adjusted income (loss) from operations                   $ (226) $ (237) $ (253)
v3.8.0.1
Segment Information - Revenues by Product Type (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenue from External Customer [Line Items]      
Premiums $ 32,307 $ 30,626 $ 29,642
Mail order pharmacy revenues 2,979 2,966 2,536
Other 338 378 374
Revenues from external customers 40,153 38,352 36,666
Medical [Member]      
Revenue from External Customer [Line Items]      
Premiums 24,538 23,295 22,696
Fees 4,503 4,368 4,107
Total premiums and fees 29,041 27,663 26,803
Guaranteed Cost [Member]      
Revenue from External Customer [Line Items]      
Premiums 6,245 4,610 4,761
Experience Rated [Member]      
Revenue from External Customer [Line Items]      
Premiums 2,741 2,383 2,329
Stop Loss [Member]      
Revenue from External Customer [Line Items]      
Premiums 3,483 3,082 2,701
International Health Care [Member]      
Revenue from External Customer [Line Items]      
Premiums 1,934 1,859 1,834
Dental [Member]      
Revenue from External Customer [Line Items]      
Premiums 1,791 1,586 1,392
Medicare [Member]      
Revenue from External Customer [Line Items]      
Premiums 5,534 6,621 6,142
Medicaid [Member]      
Revenue from External Customer [Line Items]      
Premiums 1,061 1,146 1,102
Medicare Part D [Member]      
Revenue from External Customer [Line Items]      
Premiums 764 1,122 1,589
Other Medical [Member]      
Revenue from External Customer [Line Items]      
Premiums 985 886 846
Disability [Member]      
Revenue from External Customer [Line Items]      
Total premiums and fees 2,091 2,045 1,899
Life, Accident and Supplemental Health [Member]      
Revenue from External Customer [Line Items]      
Total premiums and fees $ 5,704 $ 5,300 $ 5,054
v3.8.0.1
Segment Information - Foreign and U.S. Revenues (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues from external customers $ 40,153 $ 38,352 $ 36,666
Revenues From External Customers [Member] | Geographic Concentration Risk [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Benchmark Description Consolidated revenues from external customers    
Concentration Risk, Additional Characteristic Single foreign country    
Revenues From External Customers [Member] | Geographic Concentration Risk [Member] | Maximum [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Concentration Risk, Percentage 5.00%    
United States [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues from external customers $ 36,128 34,672 33,185
South Korea [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues from external customers 1,892 1,666 1,521
All Other Countries [Member]      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues from external customers $ 2,133 $ 2,014 $ 1,960
v3.8.0.1
Segment Information - Concentration Risk (Details) - CMS [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Concentration Risk [Line Items]      
Net receivables from CMS $ 500 $ 600  
Risk corridor receivable from CMS 109 124  
Risk corridor allowance $ 109 $ 124  
Revenue Consolidated [Member] | Customer Concentration Risk [Member]      
Concentration Risk [Line Items]      
Concentration Risk, Percentage 17.00% 20.00% 21.00%
Concentration Risk, Benchmark Description Consolidated revenues    
Concentration Risk, Additional Characteristic Premiums and fees from CMS    
v3.8.0.1
Quarterly Financial Data (Details) - USD ($)
$ / shares in Units, $ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2015
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Consolidated Results                        
Total revenues   $ 10,531 $ 10,382 $ 10,318 $ 10,385 $ 9,944 $ 9,880 $ 9,960 $ 9,884 $ 41,616 $ 39,668 $ 37,876
Income (loss) before income taxes   758 824 1,134 890 605 742 813 819 3,606 2,979 3,327
Shareholders' net income   $ 266 $ 560 $ 813 $ 598 $ 382 $ 456 $ 510 $ 519 $ 2,237 $ 1,867 $ 2,094
Shareholders' Net Income Per Share:                        
EPS, basic   $ 1.09 $ 2.25 $ 3.2 $ 2.34 $ 1.49 $ 1.79 $ 2 $ 2.04 $ 8.92 $ 7.31 $ 8.17
EPS, diluted   1.07 2.21 3.15 2.3 1.47 1.76 1.97 2 8.77 7.19 8.04
Stock and Dividend Data                        
Price range of common stock - high   212.46 188.36 173.21 154.83 142 148.99 142.91 147.93      
Price range of common stock - low   183.08 166.81 146.7 133.52 115.03 123.53 121.87 123.54      
Dividends Declared Per Share   $ 0 $ 0 $ 0 $ 0.04 $ 0 $ 0 $ 0 $ 0.04 $ 0.04 $ 0.04 $ 0.04
Special items                        
U.S. tax reform   $ 196 $ 0 $ 0 $ 0         $ 196    
Debt extinguishment costs $ 65 0 209 0 0         209   $ 65
Long-term care guaranty fund assessment   0 0 0 83         83    
Transaction-related costs   25 6 (47) 49 $ 39 $ 46 $ 26 $ 36 $ 33 $ 147 $ 57
Risk corridor allowance           80 0 0 0   80  
Charges associated with litigation matters           0 25 0 0   $ 25  
Total impact of special items, after-tax   $ 221 $ 215 $ (47) $ 132 $ 119 $ 71 $ 26 $ 36      
v3.8.0.1
Schedule I - Summary of Investments (Details)
$ in Millions
Dec. 31, 2017
USD ($)
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost $ 27,349
Amount at which shown in the Consolidated Balance Sheet 28,619
Fixed Maturties [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 21,867
Fair value 23,138
Amount at which shown in the Consolidated Balance Sheet 23,138
United States government and government agencies and authorities [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 541
Fair value 779
Amount at which shown in the Consolidated Balance Sheet 779
States, municipalities and political subdivisions [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 1,196
Fair value 1,287
Amount at which shown in the Consolidated Balance Sheet 1,287
Foreign governments [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 2,360
Fair value 2,487
Amount at which shown in the Consolidated Balance Sheet 2,487
Public utilities [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 2,187
Fair value 2,342
Amount at which shown in the Consolidated Balance Sheet 2,342
All other corporate bonds [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 15,107
Fair value 15,739
Amount at which shown in the Consolidated Balance Sheet 15,739
Mortgage and other asset-backed [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 469
Fair value 497
Amount at which shown in the Consolidated Balance Sheet 497
Redeemable preferred stocks [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 7
Fair value 7
Amount at which shown in the Consolidated Balance Sheet 7
Equity securities [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 589
Fair value 588
Amount at which shown in the Consolidated Balance Sheet 588
Industrial, miscellaneous and all other [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 485
Fair value 496
Amount at which shown in the Consolidated Balance Sheet 496
Non-redeemable preferred stock [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 104
Fair value 92
Amount at which shown in the Consolidated Balance Sheet 92
Commercial mortgage loans on real estate [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 1,761
Amount at which shown in the Consolidated Balance Sheet 1,761
Policy loans [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 1,415
Amount at which shown in the Consolidated Balance Sheet 1,415
Other long-term investments [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 1,518
Amount at which shown in the Consolidated Balance Sheet 1,518
Short-term investments [Member]  
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]  
Cost 199
Amount at which shown in the Consolidated Balance Sheet $ 199
v3.8.0.1
Schedule II - Condensed Financial Information, Statements of Income (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2015
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Operating expenses:                        
Debt extinguishment costs $ 100   $ 321             $ 321 $ 0 $ 100
Total operating expenses                   10,033 9,584 8,982
Income before Income Taxes   $ 758 824 $ 1,134 $ 890 $ 605 $ 742 $ 813 $ 819 3,606 2,979 3,327
Income tax expense (benefit)                   1,374 1,136 1,250
Shareholders' Net Income   $ 266 $ 560 $ 813 $ 598 $ 382 $ 456 $ 510 $ 519 2,237 1,867 2,094
Shareholders' other comprehensive income (loss), net of tax:                        
Net unrealized appreciation (depreciation) on securities                   (34) (56) (202)
Net unrealized appreciation (depreciation) on derivatives                   (3) (4) 15
Net translation of foreign currencies                   304 (95) (212)
Postretirement benefits liability adjustment                   33 23 85
Shareholders' other comprehensive income (loss)                   300 (132) (314)
Shareholders' comprehensive income (loss)                   2,537 1,735 1,780
Parent Company [Member]                        
Operating expenses:                        
Interest                   237 244 246
Intercompany interest                   18 3 2
Debt extinguishment costs                   321 0 100
Other                   204 281 147
Total operating expenses                   780 528 495
Income before Income Taxes                   (780) (528) (495)
Income tax expense (benefit)                   (194) (146) (135)
(Loss) of parent company                   (586) (382) (360)
Equity in income from subsidiaries                   2,823 2,249 2,454
Shareholders' Net Income                   2,237 1,867 2,094
Shareholders' other comprehensive income (loss), net of tax:                        
Net unrealized appreciation (depreciation) on securities                   (34) (56) (202)
Net unrealized appreciation (depreciation) on derivatives                   (3) (4) 15
Net translation of foreign currencies                   304 (95) (212)
Postretirement benefits liability adjustment                   33 23 85
Shareholders' other comprehensive income (loss)                   300 (132) (314)
Shareholders' comprehensive income (loss)                   $ 2,537 $ 1,735 $ 1,780
v3.8.0.1
Schedule II - Condensed Financial Information, Balance Sheets (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Assets        
Cash and cash equivalents $ 2,972 $ 3,185 $ 1,968 $ 1,420
Short-term investments 199 691    
Other assets 2,316 2,227    
Total assets 61,753 59,360    
Liabilities:        
Short-term debt 240 276    
Long-term debt 5,199 4,756    
Total liabilities 47,969 45,575    
Shareholders Equity:        
Common stock (shares issued, 296; authorized, 600) 74 74    
Additional paid-in capital 2,940 2,892    
Accumulated other comprehensive loss (1,082) (1,382)    
Retained earnings 15,824 13,855    
Less: treasury stock, at cost (4,021) (1,716)    
Total shareholders' equity 13,735 13,723    
Total liabilities and equity 61,753 59,360    
Parent Company [Member]        
Assets        
Cash and cash equivalents 9 18 $ 16 $ 51
Short-term investments 63 57    
Investments in subsidiaries 22,655 20,315    
Intercompany receivable 200 173    
Other assets 252 415    
Total assets 23,179 20,978    
Liabilities:        
Intercompany payable 2,980 998    
Short-term debt 231 257    
Long-term debt 5,112 4,658    
Other liabilities 1,121 1,342    
Total liabilities 9,444 7,255    
Shareholders Equity:        
Common stock (shares issued, 296; authorized, 600) 74 74    
Additional paid-in capital 2,940 2,892    
Accumulated other comprehensive loss (1,082) (1,382)    
Retained earnings 15,824 13,855    
Less: treasury stock, at cost (4,021) (1,716)    
Total shareholders' equity 13,735 13,723    
Total liabilities and equity $ 23,179 $ 20,978    
v3.8.0.1
Schedule II - Condensed Financial Information, Balance Sheets - Parentheticals (Details) - shares
shares in Thousands
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Consolidated Balance Sheets      
Common stock shares issued 296,145 296,145 296,145
Common stock shares authorized 600,000 600,000 600,000
Parent Company [Member]      
Consolidated Balance Sheets      
Common stock shares issued 296,000 296,000  
Common stock shares authorized 600,000 600,000  
v3.8.0.1
Schedule II - Condensed Financial Information, Statements of Cash Flows (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 30, 2015
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash Flows from Operating Activities                        
Shareholders' net income   $ 266 $ 560 $ 813 $ 598 $ 382 $ 456 $ 510 $ 519 $ 2,237 $ 1,867 $ 2,094
Adjustments to reconcile shareholders' net income to net cash provided by (used in) operating activities:                        
Other liabilities                   639 124 423
Debt extinguishment costs $ 100   $ 321             321 0 100
Other, net [1]                   36 (10) 71
Net cash provided by (used in) operating activities [1],[2]                   4,086 4,026 2,933
Cash Flows from Investing Activities                        
Short term investments purchased                   (1,065) (1,698) (1,183)
Other, net                   0 (101) 0
Net cash provided by (used in) investing activities [2]                   (1,703) (2,574) (1,736)
Cash Flows from Financing Activities                        
Net change in short-term debt                   80 (148) (21)
Payments for debt extinguishment                   (313) 0 (87)
Repayment of long-term debt         (250)         (1,250) 0 (851)
Net proceeds on issuance of long-term debt                   1,581 0 894
Issuance of common stock                   131 36 154
Repurchase of common stock                   (2,725) (139) (671)
Other, net [1]                   (22) (72) (97)
Net cash provided by (used in) financing activities [1]                   (2,651) (225) (609)
Net increase (decrease) in cash and cash equivalents                   (213) 1,217 548
Cash and cash equivalents, January 1,         3,185       1,968 3,185 1,968 1,420
Cash and cash equivalents, December 31,   2,972       3,185       2,972 3,185 1,968
Accounting Standards Update 2016-09 [Member]                        
Adjustments to reconcile shareholders' net income to net cash provided by (used in) operating activities:                        
Other, net                   61 72  
Net cash provided by (used in) operating activities                   61 72  
Cash Flows from Financing Activities                        
Other, net                   (61) (72)  
Net cash provided by (used in) financing activities                   (61) (72)  
Accounting Standards Update 2016-09 [Member] | Restatement Adjustment [Member]                        
Adjustments to reconcile shareholders' net income to net cash provided by (used in) operating activities:                        
Other, net                       79
Net cash provided by (used in) operating activities                       79
Cash Flows from Financing Activities                        
Other, net                       (79)
Net cash provided by (used in) financing activities                       (79)
Parent Company [Member]                        
Cash Flows from Operating Activities                        
Shareholders' net income                   2,237 1,867 2,094
Adjustments to reconcile shareholders' net income to net cash provided by (used in) operating activities:                        
Equity in income from subsidiaries                   (2,823) (2,249) (2,454)
Dividends received from subsidiaries                   758 580 880
Other liabilities                   (224) (9) 112
Debt extinguishment costs                   321 0 100
Other, net [1]                   333 187 112
Net cash provided by (used in) operating activities [1]                   602 376 844
Cash Flows from Investing Activities                        
Short term investments purchased                   (6) (3) (54)
Other, net                   (11) (8) (14)
Net cash provided by (used in) investing activities                   (17) (11) (68)
Cash Flows from Financing Activities                        
Net change in amounts due to / from affiliates                   1,955 (78) (161)
Net change in short-term debt                   100 (100) 0
Payments for debt extinguishment                   (313) 0 (87)
Repayment of long-term debt                   (1,250) 0 (851)
Net proceeds on issuance of long-term debt                   1,581 0 894
Issuance of common stock                   131 36 154
Common dividends paid                   (10) (10) (10)
Repurchase of common stock                   (2,725) (139) (671)
Tax withholding on stock compensation                   (61) (72) (79)
Other, net [1]                   (2) 0 0
Net cash provided by (used in) financing activities [1]                   (594) (363) (811)
Net increase (decrease) in cash and cash equivalents                   (9) 2 (35)
Cash and cash equivalents, January 1,         $ 18       $ 16 18 16 51
Cash and cash equivalents, December 31,   $ 9       $ 18       9 18 16
Parent Company [Member] | Accounting Standards Update 2016-09 [Member]                        
Adjustments to reconcile shareholders' net income to net cash provided by (used in) operating activities:                        
Other, net                   61 72  
Net cash provided by (used in) operating activities                   61 72  
Cash Flows from Financing Activities                        
Tax withholding on stock compensation                   (61) (72)  
Net cash provided by (used in) financing activities                   $ (61) $ (72)  
Parent Company [Member] | Accounting Standards Update 2016-09 [Member] | Restatement Adjustment [Member]                        
Adjustments to reconcile shareholders' net income to net cash provided by (used in) operating activities:                        
Other, net                       79
Net cash provided by (used in) operating activities                       79
Cash Flows from Financing Activities                        
Tax withholding on stock compensation                       (79)
Net cash provided by (used in) financing activities                       $ (79)
[1]
As required in adopting Accounting Standard Update ("ASU") 2016-09 in 2016, the Company retrospectively reclassified $79 million of cash payments from operating to financing activities in 2015. These payments were related to employee tax obligations associated with stock compensation. The comparable amounts reported in financing activities were $61 million in 2017 and $72 million in 2016.
[2]
As required in adopting ASU 2016-15 in 2016, the Company retrospectively reclassified $137 million of cash distributions of earnings from partnership investments from investing to operating activities in 2015. The comparable amounts reported in operating activities were $161 million in 2017 and $144 million in 2016.
v3.8.0.1
Schedule II - Condensed Financial Information, Short-term and Long-term Debt (Details) - USD ($)
$ in Millions
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]    
Debt outstanding $ 5,400  
Long-term debt, carrying value 5,199 $ 4,756
$78 million, 6.37% Notes due 2021 [Member] | Uncollateralized Debt [Member]    
Debt Instrument [Line Items]    
Long-term debt, carrying value 78 78
Parent Company [Member]    
Debt Instrument [Line Items]    
Debt outstanding 5,343  
Long-term debt, carrying value 5,112 $ 4,658
Subsidiaries [Member] | Uncollateralized Debt [Member]    
Debt Instrument [Line Items]    
Capital lease obligations 18  
Subsidiaries [Member] | $78 million, 6.37% Notes due 2021 [Member] | Uncollateralized Debt [Member]    
Debt Instrument [Line Items]    
Long-term debt, carrying value $ 78  
v3.8.0.1
Schedule II - Condensed Financial Information, Intercompany Liabilities (Details) - Parent Company [Member] - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Condensed Financial Statements, Captions [Line Items]    
Intercompany liabilities, consisting primarily of payables to Cigna Holdings, Inc. $ 2,980 $ 998
Cigna Holdings Incorporated [Member]    
Condensed Financial Statements, Captions [Line Items]    
Intercompany liabilities, consisting primarily of payables to Cigna Holdings, Inc. $ 2,800 $ 700
Average monthly interest rate on intercompany payables 1.47% 0.93%
v3.8.0.1
Schedule II - Condensed Financial Information, Guarantees (Details)
$ in Millions
Dec. 31, 2017
USD ($)
Parent Company [Member]  
Guarantee Obligations [Line Items]  
Guarantee obligations carrying value $ 235
v3.8.0.1
Schedule III - Supplementary Insurance Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Supplementary Insurance Information, by Segment [Line Items]      
Deferred policy acquisition costs $ 2,237 $ 1,818 $ 1,659
Future policy benefits and contractholder deposit funds 18,236 18,106 17,922
Medical claims payable and unpaid claims 7,887 7,449 6,929
Unearned premiums 724 634 629
Premiums 32,307 30,626 29,642
Net investment income 1,226 1,147 1,153
Benefit expenses 25,406 24,486 23,290
Amortization of deferred policy acquisition expenses 322 292 286
Other operating expenses 12,282 11,911 10,973
Reduction of operating expenses resulting from tax reform 56    
Corporate [Member]      
Supplementary Insurance Information, by Segment [Line Items]      
Deferred policy acquisition costs 0 0 0
Future policy benefits and contractholder deposit funds 0 0 0
Medical claims payable and unpaid claims 0 0 0
Unearned premiums 0 0 0
Premiums (12) 0 0
Net investment income 30 21 4
Benefit expenses (12) 0 0
Amortization of deferred policy acquisition expenses 0 0 0
Other operating expenses 815 528 502
Global Health Care [Member] | Operating Segments [Member]      
Supplementary Insurance Information, by Segment [Line Items]      
Deferred policy acquisition costs 15 16 11
Future policy benefits and contractholder deposit funds 157 161 169
Medical claims payable and unpaid claims 2,719 2,532 2,355
Unearned premiums 213 170 145
Premiums 24,538 23,295 22,696
Net investment income 378 315 340
Benefit expenses 19,967 19,009 18,354
Amortization of deferred policy acquisition expenses 56 47 53
Other operating expenses 9,417 9,411 8,621
Global Supplemental Benefits [Member] | Operating Segments [Member]      
Supplementary Insurance Information, by Segment [Line Items]      
Deferred policy acquisition costs 2,176 1,752 1,593
Future policy benefits and contractholder deposit funds 3,746 3,225 3,006
Medical claims payable and unpaid claims 484 384 353
Unearned premiums 490 435 453
Premiums 3,684 3,226 3,000
Net investment income 122 110 103
Benefit expenses 2,033 1,784 1,659
Amortization of deferred policy acquisition expenses 259 238 227
Other operating expenses 1,115 1,030 963
Group Disability And Life [Member] | Operating Segments [Member]      
Supplementary Insurance Information, by Segment [Line Items]      
Deferred policy acquisition costs 1 1 1
Future policy benefits and contractholder deposit funds 1,686 1,786 1,714
Medical claims payable and unpaid claims 4,491 4,342 4,006
Unearned premiums 7 13 13
Premiums 3,985 4,002 3,843
Net investment income 350 343 337
Benefit expenses 3,076 3,354 2,934
Amortization of deferred policy acquisition expenses 1 1 1
Other operating expenses 967 918 861
Other Operations [Member] | Operating Segments [Member]      
Supplementary Insurance Information, by Segment [Line Items]      
Deferred policy acquisition costs 45 49 54
Future policy benefits and contractholder deposit funds 12,647 12,934 13,033
Medical claims payable and unpaid claims 193 191 215
Unearned premiums 14 16 18
Premiums 112 103 103
Net investment income 346 358 369
Benefit expenses 342 339 343
Amortization of deferred policy acquisition expenses 6 6 5
Other operating expenses (32) $ 24 $ 26
Reduction of operating expenses resulting from tax reform $ 56    
v3.8.0.1
Schedule IV - Reinsurance (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Life insurance in force      
Gross amount, Life insurance in force $ 1,105,323 $ 1,047,002 $ 1,047,982
Ceded to other companies, Life insurance in force 49,172 55,399 72,208
Assumed from other companies, Life insurance in force 2,478 2,827 3,273
Net amount, Life Insurance In Force $ 1,058,629 $ 994,430 $ 979,047
Percentage of amount assumed to net, Life insurance in force 0.20% 0.30% 0.30%
Premiums:      
Gross amount, premiums $ 32,402 $ 30,755 $ 29,812
Ceded to other companies, premiums 424 513 570
Assumed from other companies, premiums 329 384 400
Net amount $ 32,307 $ 30,626 $ 29,642
Percentage of amount assumed to net, premiums 1.00% 1.30% 1.30%
Life insurance and annuities [Member]      
Premiums:      
Gross amount, premiums $ 2,307 $ 2,881 $ 2,886
Ceded to other companies, premiums 233 310 335
Assumed from other companies, premiums 22 22 106
Net amount $ 2,096 $ 2,593 $ 2,657
Percentage of amount assumed to net, premiums 1.00% 0.80% 4.00%
Accident and health insurance [Member]      
Premiums:      
Gross amount, premiums $ 30,095 $ 27,874 $ 26,926
Ceded to other companies, premiums 191 203 235
Assumed from other companies, premiums 307 362 294
Net amount $ 30,211 $ 28,033 $ 26,985
Percentage of amount assumed to net, premiums 1.00% 1.30% 1.10%
v3.8.0.1
Schedule V - Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Commercial mortgage loans [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period $ 5 $ 15 $ 12
Charged (Credited) to costs and expenses 1 0 7
Charged (Credited) to other accounts 0 0 0
Other deductions (6) (10) (4)
Balance at end of period 0 5 15
Premiums, accounts and notes receivable [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period 200 75 101
Charged (Credited) to costs and expenses 19 134 (10)
Charged (Credited) to other accounts (11) (8) (15)
Other deductions (1) (1) (1)
Balance at end of period 207 200 75
Deferred tax asset valuation allowance [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period 87 71 49
Charged (Credited) to costs and expenses 11 21 8
Charged (Credited) to other accounts (26) (5) 14
Other deductions 0 0 0
Balance at end of period 72 87 71
Reinsurance recoverables [Member]      
Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of period 3 3 4
Charged (Credited) to costs and expenses 0 0 0
Charged (Credited) to other accounts 0 0 (1)
Other deductions 0 0 0
Balance at end of period $ 3 $ 3 $ 3