Cigna 2014 Annual Report Download - page 110

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PART II
ITEM 8. Financial Statements and Supplementary Data
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 direct benefits and expenses in the Company’s Consolidated Statements of Income.
(In millions)
2014 2013 2012
Premiums
Short-duration contracts:
Direct $ 24,294 $ 23,056 $ 20,792
Assumed 429 394 385
Ceded (226) (252) (216)
24,497 23,198 20,961
Long-duration contracts:
Direct 2,921 2,485 2,222
Assumed 173 183 86
Ceded:
Individual life insurance and annuity business sold (254) (176) (186)
Other (123) (115) (66)
2,717 2,377 2,056
TOTAL $ 27,214 $ 25,575 $ 23,017
Reinsurance recoveries
Individual life insurance and annuity business sold $ 366 $ 335 $ 316
Other 292 (18) 201
TOTAL $ 658 $ 317 $ 517
Recoveries were higher in 2014 primarily due to the absence of the The effects of reinsurance on written premiums for short-duration
2013 activity related to the Berkshire transaction, including the initial contracts were not materially different from the recognized premium
payment. The increase in long-duration assumed premiums in 2013 amounts shown in the table above.
largely results from the acquisition of Great American Supplemental
Benefits in 2012.
78 CIGNA CORPORATION - 2014 Form 10-K