Cigna 2015 Annual Report Download - page 105

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PART II
ITEM 8. Financial Statements and Supplementary Data
The table below 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)
2015 2014
Account value $ 11,355 $ 13,078
Net amount at risk $ 2,870 $ 2,763
Average attained age of contractholders (weighted by exposure) 74 73
Number of contractholders 324,000 354,000
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)
2015 2014 2013
Premiums
Short-duration contracts:
Direct $ 26,751 $ 24,294 $ 23,056
Assumed 289 429 394
Ceded (254) (226) (252)
26,786 24,497 23,198
Long-duration contracts:
Direct 3,061 2,921 2,485
Assumed 111 173 183
Ceded:
Individual life insurance and annuity business sold (158) (254) (176)
Other (158) (123) (115)
2,856 2,717 2,377
TOTAL $ 29,642 $ 27,214 $ 25,575
Reinsurance recoveries
Individual life insurance and annuity business sold $ 301 $ 366 $ 335
Other 436 292 (18)
TOTAL $ 737 $ 658 $ 317
Recoveries were lower in 2013 primarily due to activity related to the The effects of reinsurance on written premiums for short-duration
Berkshire transaction. contracts were not materially different from the recognized premium
amounts shown in the table above.
CIGNA CORPORATION - 2015 Form 10-K 75