Cigna 2015 Annual Report Download - page 106
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PART II
ITEM 8. Financial Statements and Supplementary Data
Reinsurance Recoverables
The majority of the Company’s reinsurance recoverables balance 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) 2015 2014 at December 31, 2015
GMDB Berkshire $ 1,123 $ 1,147 100% were secured by assets in a trust.
Other 41 39 100% were secured by assets in a letter of
credit or a trust.
Individual Life and Annuity (sold in Lincoln National Life and 3,705 3,817 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 995 1,092 100% were secured by assets in a trust.
2004) Insurance and Annuity
Supplemental Benefits Business (2012 Great American Life 315 336 99% were secured by assets in a trust.
acquisition)
Global Health Care, Global Supplemental Various 553 561 Recoverables from approximately 75
Benefits, Group Disability and Life reinsurers, including the U.S. Government,
used in the ordinary course of business.
Excluding the recoverable from the U.S.
Government of approximately $160 million,
current balances range from less than
$1 million up to $88 million, with 18%
secured by assets in trusts or letters of
credit.
Other run-off reinsurance Various 81 88 100% of this balance was secured by assets
in a trust and other deposits.
Total reinsurance recoverables $ 6,813 $ 7,080
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 & Poors at retrocessionaires do not meet or are unable to meet their reinsurance
December 31, 2015. 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,
2015, the Company’s recoverables were net of a reserve of $3 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
($0.3 billion).
Goodwill activity during 2015 and 2014 was as follows:
(In millions)
2015 2014
Balance at January 1, $ 5,989 $ 6,029
Goodwill acquired:
QualCare Alliance Networks, Inc. 74 –
Other –3
Impact of foreign currency translation (44) (43)
Balance at December 31, $ 6,019 $ 5,989
76 CIGNA CORPORATION - 2015 Form 10-K
NOTE 8