Cigna 2014 Annual Report Download - page 111
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PART II
ITEM 8. Financial Statements and Supplementary Data
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 below:
(In millions)
December 31, December 31, Collateral and Other Terms
Line of Business Reinsurer(s) 2014 2013 at December 31, 2014
GMDB Berkshire $ 1,147 $ 1,276 100% were secured by assets in a trust.
Other 39 41 96% were secured by assets in a trust or
letter of credit.
Individual Life and Annuity (sold in Lincoln National Life and 3,817 3,905 Both companies’ ratings were sufficient to
1998) Lincoln Life & Annuity avoid triggering a contractual obligation to
of New York fully secure the outstanding balance.
Retirement Benefits Business (sold in Prudential Retirement 1,092 1,200 100% were secured by assets in a trust.
2004) Insurance and Annuity
Supplemental Benefits Business (2012 Great American Life 336 363 99% were secured by assets in a trust.
acquisition)
Global Health Care, Global Supplemental Various 561 407 Recoverables were from more than 80
Benefits, Group Disability and Life reinsurers used in the ordinary course of
business. Balances ranged from less than
$1 million up to $167 million, with 9%
secured by assets in trusts or letters of
credit.
Other run-off reinsurance Various 88 107 100% of this balance was secured by assets
in a trust, and other deposits.
Total reinsurance recoverables $7,080 $7,299
Over 90% of the Company’s reinsurance recoverables were from The Company bears the risk of loss if its reinsurers and
companies that are rated A or higher by Standard & Poor’s at retrocessionaires do not meet or are unable to meet their reinsurance
December 31, 2014. The Company reviews its reinsurance obligations to the Company.
arrangements and establishes reserves against the recoverables in the
event that recovery is not considered probable. As of December 31,
2014, the Company’s recoverables were net of a reserve of $4 million.
Goodwill, Other Intangibles, and Property and Equipment
Goodwill is primarily reported in the Global Health Care segment ($5.7 billion) and, to a lesser extent, the Global Supplemental Benefits segment
($331 million).
Activity in Goodwill during 2014 and 2013 was as follows:
(In millions)
2014 2013
Balance at January 1, $ 6,029 $ 6,001
Goodwill acquired:
Finans Emeklilik –3
Other 333
Impact of foreign currency translation (43) (8)
Balance at December 31, $ 5,989 $ 6,029
CIGNA CORPORATION - 2014 Form 10-K 79
NOTE 8