Cigna Fourth Quarter 2015 Form 10 K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2015
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission file number 1-8323
29OCT201118203261
CIGNA CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
06-1059331
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
900 Cottage Grove Road, Bloomfield, Connecticut
06002
(Address of principal executive offices)
(Zip Code)
(860) 226-6000
Registrants telephone number, including area code
(860) 226-6741
Registrants facsimile number, including area code
SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

Title of each class
Name of each exchange on which registered
Common Stock, Par Value $0.25
New York Stock Exchange, Inc.
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:

NONE
Indicate by check mark
YES
NO
if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K.
whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of large
accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Smaller Reporting Company
The aggregate market value of the voting stock held by non-affiliates of the registrant as of June 30, 2015 was approximately $41.6 billion.
As of January 31, 2016, 255,766,310 shares of the registrants Common Stock were outstanding.
Part III of this Form 10-K incorporates by reference information from the registrants definitive proxy statement related to the 2016 annual
meeting of shareholders.
Table of Contents
Page
CAUTIONARY STATEMENT
PART I
Item 1.
1
Business
Overview ......................................................................................................................1
Global Health Care ..........................................................................................................3
Global Supplemental Benefits .............................................................................................9
Group Disability and Life ................................................................................................ 11
Other Operations .......................................................................................................... 13
Investments and Investment Income ................................................................................... 13
Regulation................................................................................................................... 14
Miscellaneous ............................................................................................................... 18
Item 1A. Risk Factors ............................................................................................................................... 19

Item 1B. Unresolved Staff Comments ....................................................................................................... 29
Item 2.
Properties ................................................................................................................................... 29
Item 3.
Legal Proceedings ....................................................................................................................... 29
Item 4.
Mine Safety Disclosures ............................................................................................................. 29
EXECUTIVE OFFICERS OF THE REGISTRANT .................................................................................. 30
PART II
Item 5.
Item
Item
Item
Item
Item
Item
Item
6.
7.
7A.
8.
9.
9A.
9B.
31
Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities .................................................................................................................... 31
Selected Financial Data .............................................................................................................. 33
Managements Discussion and Analysis of Financial Condition and Results of Operations.............. 34
Quantitative and Qualitative Disclosures about Market Risk...................................................... 57
Financial Statements and Supplementary Data ........................................................................... 58
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure........... 116
Controls and Procedures .......................................................................................................... 116
Other Information ................................................................................................................... 116
Page
PART III
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
PART IV
117
Directors, Executive Officers and Corporate Governance....................................................... 117
A.
Directors of the Registrant ..............................................................................................117
B.
Executive Officers of the Registrant ...................................................................................117
C.
Code of Ethics and Other Corporate Governance Disclosures ....................................................117
D.
Section 16(a) Beneficial Ownership Reporting Compliance ......................................................117
Executive Compensation...................................................................................................... 117
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters ............................................................................................................ 118
Certain Relationships, Related Transactions and Director Independence................................. 118
Principal Accountant Fees and Services ................................................................................ 118
119
Item 15. Exhibits and Financial Statement Schedules.......................................................................... 119

SIGNATURES ........................................................................................................................................... 120
INDEX TO FINANCIAL STATEMENT SCHEDULES .........................................................................FS-1
INDEX TO EXHIBITS .............................................................................................................................E-1
CAUTIONARY NOTE REGARDING FORWARDLOOKING STATEMENTS

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are based on Cignas current expectations and projections about future trends, events and uncertainties. These
statements are not historical facts. Forward-looking statements may include, among others, statements concerning our business strategy and
strategic or operational initiatives including our ability to deliver personalized and innovative solutions for customers and clients; future growth
and expansion; future financial or operating performance; economic, regulatory or competitive environments; our projected cash position, future
pension funding and financing or capital deployment plans; the proposed merger between Cigna and Anthem, Inc. (Anthem); statements
regarding the timing of resolution of the issues raised by the Centers for Medicare and Medicaid Services (CMS); and other statements
regarding Cignas future beliefs, expectations, plans, intentions, financial condition or performance. You may identify forward-looking statements
by the use of words such as believe, expect, plan, intend, anticipate, estimate, predict, potential, may, should, will or other
words or expressions of similar meaning, although not all forward-looking statements contain such terms.
Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to differ materially
from those expressed or implied in forward-looking statements. Such risks and uncertainties include, but are not limited to: our ability to achieve
our financial, strategic and operational plans or initiatives; our ability to predict and manage medical costs and price effectively and develop and
maintain good relationships with physicians, hospitals and other health care providers; our ability to identify potential strategic acquisitions or
transactions and realize the expected benefits of such strategic transactions; the substantial level of government regulation over our business and
the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of litigation, regulatory audits including the
CMS review and sanctions, investigations, actions and guaranty fund assessments; uncertainties surrounding participation in governmentsponsored programs such as Medicare; the effectiveness and security of our information technology and other business systems; unfavorable
industry, economic or political conditions including foreign currency movements; the timing and likelihood of completion of the proposed
merger, including the timing, receipt and terms and conditions of any required governmental and regulatory approvals for the proposed merger
that could reduce anticipated benefits or cause the parties to abandon the transaction; the possibility that the expected synergies and value creation
from the proposed merger will not be realized or will not be realized within the expected time period; the risk that the businesses of Cigna and
Anthem will not be integrated successfully; disruption from the proposed merger making it more difficult to maintain business and operational
relationships; the risk that unexpected costs will be incurred; the possibility that the proposed merger does not close, including a failure to satisfy
the closing conditions; the risk that financing for the proposed merger may not be available on favorable terms, as well as more specific risks and
uncertainties discussed in Part I, Item 1A Risk Factors and Part II, Item 7 Managements Discussion and Analysis of Financial Condition and
Results of Operations of this Form 10-K and as described from time to time in our future reports filed with the Securities and Exchange
Commission (the SEC) as well as the risks and uncertainties described in Anthems most recent report on Form 10-K and subsequent reports
filed with the SEC.
You should not place undue reliance on forward-looking statements that speak only as of the date they are made, are not guarantees of future
performance or results, and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Cigna undertakes no
obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be
required by law.
PART I
ITEM 1. Business
PART I
ITEM 1. Business
Overview
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, Cignas strategy is to Go Deep, Go Global and Go Individual with a differentiated set of medical, dental, disability,
life and accident insurance and related products and services offered by our subsidiaries.
Our Mission
To improve the health, well-being and sense of security of the people we serve
Our Strategy
Go Deep within existing geographies and products, Go Global to offer solutions in
adjacent and new markets and Go Individual to serve the holistic needs of an individual
How we will win
Affordability
Strategic
imperatives
Personalization
Enablers
Insights
Brand
Localization
Talent
18FEB201619422827
In an increasingly retail-oriented marketplace, we focus on delivering
affordable and personalized products and services to customers
through employer-based, government-sponsored and individual
coverage arrangements. We increasingly collaborate with health care
providers to transition from volume-based fee for service
arrangements toward a more value-based system designed to increase
quality of care, lower costs and improve health outcomes. We operate
a customer-centric organization enabled by keen insights regarding
customer needs, localized decision-making and talented
professionals committed to bringing our Together All the Way
brand promise to life.
As of December 31, 2015, our consolidated shareholders equity was
$12.0 billion, assets were $57.1 billion and we reported revenues of
$37.9 billion for 2015. Our revenues are derived principally from
premiums on insured products, fees from self-insured products and
services, mail-order pharmacy sales and investment income.
We present the financial results of our businesses in the following

three reportable segments:
Global Health Care aggregates the Commercial and Government
operating segments.
The Commercial operating 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 offers Medicare Advantage
and Medicare Part D plans to seniors and Medicaid plans.
CIGNA CORPORATION - 2015 Form 10-K 1
PART I
ITEM 1. Business
Global Supplemental Benefits offers supplemental health, life and accident insurance products in selected international markets and in the U.S.
Group Disability and Life provides group long-term and short-term disability, group life, accident and specialty insurance products and related
services.
On a consolidated basis, total 2015 operating revenues were $37.8 billion and total 2015 adjusted income from operations was $2.3 billion. For
the Global Health Care, Global Supplemental Benefits, and Group Disability and Life segments, 2015 operating revenues were $37.3 billion and
2015 adjusted income from operations was $2.4 billion. See page 34 for the definition of these metrics.
2015 Operating Revenue by Segment*
2015 Adjusted Income from Operations by Segment*
11%
13%
9%
11%
76%
80%
Global Health Care

Global Supplemental Benefits
Group Disability and Life
*
Global Health Care

Excludes Corporate and Other Operations
We present the remainder of our segment results in Other

Operations, consisting of the corporate-owned life insurance business
(COLI), run-off reinsurance and settlement annuity businesses and
deferred gains associated with the sales of the individual life insurance
and annuity and retirement benefits businesses.
Proposed Merger with Anthem, Inc.

(Anthem)
On July 23, 2015, we entered into a definitive agreement to merge
with Anthem, subject to certain terms, conditions and customary
operating covenants, with Anthem continuing as the surviving
company. Upon closing, our shareholders will receive $103.40 in cash
and 0.5152 of a share of Anthem common stock for each common
share of the Company. At special shareholders meetings held in
December 2015, Cigna shareholders approved the merger with
Anthem and Anthem shareholders approved the issuance of shares of
Anthem common stock according to the merger agreement.
Consummation of the merger remains subject to certain customary
conditions, including the receipt of certain necessary governmental
and regulatory approvals and the absence of a legal restraint
prohibiting the consummation of the merger. The merger is expected
to close in the second half of 2016. See Note 3 to the Consolidated
Financial Statements for additional details. In addition, see Item 1A.
Risk Factors in this Form 10-K for risks to our business due to the
proposed merger.
Other Key Transactions

In recent years, we have entered into a number of transactions that are
helping us to achieve our strategic goals by: (1) repositioning the
portfolio for growth in targeted geographies, product lines, buying
segments and distribution channels; (2) improving our strategic and
2 CIGNA CORPORATION - 2015 Form 10-K
23FEB201614225067
financial flexibility; and (3) pursuing additional opportunities in high
growth markets with particular focus on individuals. Specifically:
Over the past several years, to achieve the goals of better health,
affordability and improved experience for customers, we have
continued expanding our participation in collaborative care and
other delivery arrangements with health care professionals across the
care delivery spectrum, including large and small physician groups,
specialist groups and hospitals.
We entered into a 10-year pharmacy benefit management services
agreement with Catamaran Corporation (now known as Optum).
Under this agreement, we utilize Optums technology and service
platforms, retail network contracting and claims processing services.
We effectively exited our Run-off guaranteed minimum death
benefit (GMDB also known as VADBe) and guaranteed
minimum income benefit (GMIB) reinsurance business by
entering into an agreement with Berkshire Hathaway Life Insurance
Company of Nebraska (Berkshire) to reinsure 100% of our
remaining future exposures for this business up to a specified limit.
Health Care Reform

The Patient Protection and Affordable Care Act and the Health Care
and Education Reconciliation Act (collectively referred to throughout
this Form 10-K as Health Care Reform or PPACA) continues to
have a significant impact on our business operations. The effects of
Health Care Reform are discussed throughout this Form 10-K where
appropriate, including in the Global Health Care business
description, Regulation, Risk Factors, Managements Discussion and
Analysis of Financial Condition and Results of Operations, and the
Notes to the Consolidated Financial Statements.
PART I
ITEM 1. Business
Other Information
The financial information included in this Annual Report on
Form 10-K for the fiscal year ended December 31, 2015
(Form 10-K) is in conformity with accounting principles generally
accepted in the United States of America (GAAP) unless otherwise
indicated. Industry rankings and percentages set forth herein are for
the year ended December 31, 2015 unless otherwise indicated. In
addition, statements set forth in this document concerning our rank
or position in an industry or particular line of business have been
developed internally based on publicly available information unless
otherwise noted.
filings, and any amendments to these filings, are made available free of
charge on our website (http://www.cigna.com, under the Investors
Quarterly Reports and SEC Filings captions) as soon as reasonably
practicable after we electronically file these materials with, or furnish
them to, the Securities and Exchange Commission (the SEC). We
use our website as a channel of distribution for material company
information. Important information, including news releases, analyst
presentations and financial information regarding Cigna is routinely
posted on and accessible at www.cigna.com. See Code of Ethics and
Other Corporate Governance Disclosures in Part III, Item 10
beginning on page 117 of this Form 10-K for additional available
information.
Cigna Corporation was incorporated in Delaware in 1981. Our

annual, quarterly and current reports, proxy statements and other
Global Health Care

How We Win
Broad and deep portfolio of solutions across Commercial and Government operating segments
Commitment to highest quality health outcomes and customer experiences
Differentiated physician engagement models emphasizing value over volume of services
Technology powering actionable insights and affordable, personalized solutions
Talented and caring people embracing change and putting customers at the center of all we do
Products and Services
Medical
Stop Loss
Dental
Vision
Pharmacy
Behavioral
Health Advocacy and
Coaching
Physician Engagement
Collaborative Accountable Care
Organizations
Independent Practice Associations
Delivery System Alliances
Funding Types
Medicare Advantage
Medicare Part D
Medicaid
Administrative Services
Only (ASO)
Guaranteed Cost
Experience Rated
Customer Segments
National
Middle Market
Select
Individual
Government
International
We seek to differentiate ourselves in this business by providing

personalized and affordable health care solutions to our clients and
customers. As the health care delivery system transitions from volumebased reimbursements to a value orientation, our strategy is to
accelerate our engagement with employers and individuals in order to:
1) increase our customers involvement in their health care and
2) develop deep insights into customer needs. Our differentiated
approach also targets selected geographies and market segments and,
within those local markets, stronger relationships with health care
providers that promote quality and affordability of care for our
customers and clients.
Distribution Channels
Insurance brokers and consultants

Sales representatives
Cigna private exchange
3rd party private exchanges
Public exchanges
Our Commercial operating segment encompasses both our U.S.

employers and their employees, including globally-mobile
individuals, and other groups (e.g., governmental and
non-governmental organizations, unions and associations). In
addition, our U.S. commercial health care business also serves
individuals through our product offerings both on and off the public
health insurance exchanges.
PART I
ITEM 1. Business
customers cost-sharing obligation is usually greater for the

out-of-network care.
Principal Products and Services

Commercial Medical Health Plans U.S. and
International
The Commercial operating segment, either directly or through its
partners, offers some or all of its products in all 50 states, the District
of Columbia, the U.S. Virgin Islands, Canada, Europe, the Middle
East, and Asia. We offer a variety of medical plans including:
Managed Care Plans including HMO, Network, Network Open Access
and Open Access Plus. We offer health care services through Health
Maintenance Organizations (HMOs) and insured and
self-insured indemnity managed care benefit plans that use
meaningful cost-sharing incentives to encourage the use of
in-network versus out-of-network health care providers and
provide the option to select a primary care physician. The national
provider network for Managed Care Plans is somewhat smaller than
the national network used with the preferred provider (PPO) plan
product line. If a particular plan covers non-emergency services
received from a non-participating health care provider, the
PPO Plans. Our PPO product line features a network with broader
provider access than the Managed Care Plans. The preferred
provider product line may be at a higher medical cost than our
Managed Care Plans.
Choice Fund Suite of Consumer-Driven Products. Our medical
plans are often integrated with the Cigna Choice Fund suite of
products: Health Reimbursement Accounts (HRA), Health
Savings Accounts (HSA) and Flexible Spending Accounts
(FSA). These Choice Fund products are designed to encourage
customers to play an active role in understanding and managing
their health and associated expenses. Customers can use these
tax-advantaged accounts to finance eligible health care expenses and
other approved services. In most cases, these products are combined
with a high deductible medical plan. We continue to experience
strong growth in these products and they represent a rapidly
growing percentage of our overall medical customer base.
Approximately 90% of our commercial medical customers are enrolled in medical plans with funding arrangements that allow the corporate client
to directly benefit from lower medical costs. The funding arrangements available for our commercial medical and dental health plans are as
follows:
Funding Arrangement
% of Commercial
Medical Customers
Description
Administrative Services
Only (ASO)
83%
ASO plan sponsors are responsible for self-funding all claims, but may purchase stop loss
insurance to limit exposure for claims that exceed a predetermined amount.
We collect fees from plan sponsors for providing access to our participating provider network
and for other services and programs including: claims administration; behavioral health; disease
management; utilization management; cost containment; dental; and pharmacy benefit
management.
In some cases, we provide performance guarantees associated with meeting certain service
standards, clinical outcomes or financial metrics.
Insured Experience
Rated (Shared
Returns)
6%
Premium charged during a policy period (initial premium) may be adjusted following the
policy period for actual claim, and in some cases, administrative cost experience of the
policyholder:
When claims and expenses are less than the initial premium charged (an experience
surplus), the policyholder may be credited for a portion of this premium.
However, if claims and expenses exceed the initial premium (an experience deficit), we bear
these costs. In certain cases, experience deficits may be recovered through experience surpluses
in a future year if the policyholder renews.
Insured Guaranteed
Cost
11%
We establish the cost to the policyholder at the beginning of a policy period and generally
cannot subsequently adjust premiums to reflect actual claim experience until the next annual
renewal.
Employers and other groups with guaranteed cost policies are generally smaller than those with
experience-rated group policies. Accordingly, our claim and expense assumptions may be based
in whole or in part on prior experience of the policyholder or on a pool of similar
policyholders.
HMO and individual plans (medical and dental) are offered on a guaranteed cost basis only.
Individual and small employer (employers with 50 or fewer employees) plans are required to
be community-rated under federal law.
We offer stop loss insurance coverage for ASO plans that provides
reimbursement for claims in excess of a predetermined amount for
individuals (specific), the entire group (aggregate), or both. In
addition, our experience-rated group medical insurance policies
include premium funding options similar to administrative services
combined with stop loss coverage.
In most states, individual and group insurance premium rates must be

approved by the applicable state regulatory agency (typically
department of insurance) and state or federal laws may restrict or limit
the use of rating methods. Premium rates for groups and individuals
are subject to state review for reasonableness. In addition, Health Care
Reform subjects individual and small group policy rate increases above
PART I
ITEM 1. Business
an identified threshold to review by the United States Department of

Health and Human Services (HHS) and requires payment of
premium refunds on individual and group medical insurance
products if minimum medical loss ratio (MLR) requirements are
not met. In our individual business, premiums may also be adjusted as
a result of the government risk mitigation programs. The MLR
represents the percentage of premiums used to pay medical claims and
expenses for activities that improve the quality of care. See the
Regulation section of this Form 10-K for additional information on
the commercial MLR requirements and the risk mitigation programs
of Health Care Reform.
Government Health Plans

Medicare Advantage
We offer Medicare Advantage plans in 15 states and the District of
Columbia through our Cigna-HealthSpring brand. Under such a
plan, Medicare-eligible beneficiaries may receive health care benefits,
including prescription drugs, through a managed care health plan
such as our coordinated care plans. A significant portion of our
Medicare Advantage customers receive medical care from our
innovative plan models that focus on developing highly engaged
physician networks, aligning payment incentives to improved health
outcomes, and using timely and transparent data sharing. We are
focused on continuing to expand these models in the future.
We receive revenue from the Centers for Medicare and Medicaid
Services (CMS) for each plan customer based on customer
demographic data and actual customer health risk factors compared to
the broader Medicare population. We also may earn additional
revenue from CMS related to quality performance measures (known
as Medicare Stars). The Medicare Stars payment equals 5% per
member risk-adjusted revenue added to the CMS payment for each
contract that achieves four stars or higher. Additional premiums may
be received from customers, representing the difference between CMS
subsidy payments and the revenue determined as part of our annual
Medicare Advantage bid submissions. Health Care Reform requires
Medicare Advantage and Medicare Part D plans to meet a minimum
MLR of 85%. If the MLR for a CMS contract is less than 85%, we are
required to pay a rebate to CMS and could be required to make
additional payments if the MLR continues to be less than 85% for
successive years.
Medicare Part D
Our Medicare Part D prescription drug program provides a number of
plan options, as well as service and information support to Medicare
and Medicaid eligible customers. Our plans are available in all 50
states and the District of Columbia and offer the savings of Medicare
combined with the flexibility to provide enhanced benefits and a drug
list tailored to individuals specific needs. Retirees benefit from broad
network access and value-added services intended to help keep them
well and save them money.
Medicaid
We offer Medicaid coverage to low income individuals in selected
markets in Texas and Illinois. Our Medicaid customers benefit from
many of the coordinated care aspects of our Medicare Advantage

programs.
We receive revenue from the states of Texas and Illinois for our
Medicaid only customers. For customers eligible for both Medicare
and Medicaid (dual eligibles) we receive revenue from both the state
and CMS. All revenue is based on customer demographic data and
actual customer health risk factors. Similar to Medicare Advantage,
there are minimum MLR requirements in Illinois (85% for the dual
product and 88% for the Medicaid only product). However, Texas
utilizes an experience rebate in an effort to provide better value to
consumers and increase transparency. The Texas experience rebate
takes into account operating expenses and requires a rebate of dollars
to the state as different profitability thresholds are met.
Specialty Products and Services

Our specialty products and services described below are designed to
improve the quality of and lower the cost of medical services and help
customers achieve better health outcomes. Many of these products can
be sold on a standalone basis, but we believe they are most effective
when integrated with a Cigna-administered health plan. Our specialty
products are focused in the areas of medical, behavioral, pharmacy
management, dental and vision.
Medical Specialty
Cost-Containment Service. We administer cost-containment
programs on behalf of our clients and customers for health care
services and supplies that are covered under health benefit plans.
These programs may involve vendors who perform activities
designed to control health costs by reducing out-of-network
utilization and costs, including educating customers regarding the
availability of lower cost, in-network services, negotiating discounts,
reviewing provider bills, and recovering overpayments from other
payers or health care providers. We charge fees for providing or
arranging for these services.
Health Advocacy. We offer a wide array of medical management,
disease management, and other health advocacy services to
employers and other plan sponsors to help individuals improve their
health, well-being and sense of security. These services are offered to
customers covered under plans that we administer, as well as plans
insured or administered by competing insurers or third-party
administrators. Our health advocacy programs and services include
early intervention in the treatment of chronic conditions. We also
offer online tools and software to help customers manage their
health and an array of health coaching programs designed to address
lifestyle management issues such as stress, weight, and tobacco
cessation.
Behavioral Health
We arrange for behavioral health care services for customers through
our network of approximately 96,000 participating behavioral health
care professionals and 12,500 facilities and clinics. We offer behavioral
health care case management services, employee assistance programs
(EAP), and work/life programs to employers, government entities
and other groups sponsoring health benefit plans. We focus on
integrating our programs and services with medical, pharmacy and
disability programs to facilitate customized, holistic care.
PART I
ITEM 1. Business
Pharmacy Management
We offer prescription drug plans to our commercial and government
(Medicare/Medicaid) customers both in conjunction with our
medical products and on a stand-alone basis. With a network of over
70,000 pharmacies, Cigna Pharmacy Management is a comprehensive
pharmacy benefits manager (PBM) offering clinical programs and
specialty pharmacy solutions. We also offer high quality, efficient, and
cost-effective mail order, telephone and on-line pharmaceutical
fulfillment services through our home delivery operation.
Our medical and pharmacy coverage can meet the needs of customers
with complex medical conditions requiring specialty pharmaceuticals.
These types of medications are covered under both pharmacy and
medical benefits and can be expensive, often requiring associated lab
work and administration by a health care professional. Therefore,
coordination is critical in improving affordability and outcomes.
Clients with Cigna-administered medical and pharmacy coverage
benefit from continuity of care, integrated reporting, and meaningful
unit cost discounts on all specialty drugs.
Dental
We offer a variety of insured and self-insured dental care products
including dental health maintenance organization plans (Dental
HMO) in 37 states, dental preferred provider organization (Dental
PPO) plans in 49 states and the District of Columbia, exclusive
dental provider organization plans, traditional dental indemnity plans
and a dental discount program. Employers and other groups can
purchase our products as stand-alone products or integrated with
medical products. Additionally, individual customers can purchase
Dental PPO plans in conjunction with individual medical policies.
As of December 31, 2015, our dental customers totaled
approximately 13 million, of which most are in self-insured plans.
Our customers access care from one of the largest Dental PPO
networks and Dental HMO networks in the U.S., with approximately
140,000 Dental PPO and 20,300 Dental HMO health care
professionals.
Vision
Cigna Vision offers flexible, cost-effective PPO coverage that includes
a range of both in and out-of-network benefits for routine vision
services offered in conjunction with our medical and dental product
offerings. Our national vision care network, consisting of
approximately 76,000 health care providers in over 26,100 locations,
includes private practice ophthalmologist and optometrist offices, as
well as retail eye care centers.
Service and Quality

Customer Service
For U.S.-based customers, we operate 16 service centers that together
in 2015 processed approximately 158 million medical claims and
handled 31 million calls providing our customers service 24 hours a
day, 365 days a year.
In our international health care business, we have a service model

dedicated to the unique needs of our 1.4 million customers around
the world. We service them from nine service centers that are also
available 24 hours a day, 365 days a year.
Technology
Technology continues to play a significant role in the execution of our
Go Deep, Go Global, Go Individual strategy. Our information
technology (IT) investments and priorities are focused on building a
retail-centric IT infrastructure and developing innovative business
capabilities that support affordable health solutions and create a
personalized customer experience. We continue to leverage
technology, information and analytics globally to engage our
customers in more meaningful, relevant and customized ways, guided
by their needs and tailored to their preferences. Our investments in
digital, mobile, gamification, social media and big data enable us to
create solutions that improve health and wellness. With increased
engagement across the health care ecosystem, we believe that
technology can significantly upgrade the customer experience and
improve care delivery through collaboration with delivery systems,
enabling the transition from a volume-based fee-for-service system to
a value-based health care marketplace. While focusing on innovation,
we will remain committed to delivering strong foundational IT
capabilities that optimize our core infrastructure; build appropriate
business continuity and disaster recovery capabilities; and develop
layered information protection and strengthened cybersecurity
solutions.
Quality Medical Care

Our commitment to promoting quality medical care to the people we
serve is reflected in a variety of activities.
Health Improvement through Engaging Providers

and Customers
Cigna is committed to developing innovative solutions that span the
delivery system and can be applied to different types of providers. We
are focused on executing our Connected Care strategy that engages
both providers and customers. Currently we have numerous
arrangements with our participating health care providers and are
actively developing new arrangements to support our Connected Care
strategy. These arrangements are focused on creating better
engagement between patients and providers with the ultimate goal of
achieving better health outcomes for our customers. The key
principles that guide our innovative solutions include: improving
access to care at the local market level, leveraging actionable patient
information, enhancing the patient experience, improving
affordability and shifting reimbursement mechanisms to those that
reward quality medical outcomes. We continue to increase our
engagement with physicians and hospitals by rapidly developing the
types of arrangements discussed below. Almost two million medical
customers are currently serviced by more than 73,000 health care
providers in these types of arrangements.
PART I
ITEM 1. Business
Cigna Collaborative Care.

Collaborative Accountable Care (CAC) currently we have over
140 collaborative care arrangements with large primary care
groups built on the patient-centered medical home and
accountable care organization (ACO) models. Our CAC
arrangements span 29 states and reach 1.6 million customers and
we are committed to increasing the number of CACs over the
next several years. Our goal is to reach 165 of these programs in
2016.
Hospital Quality Incentive Program compensation paid to 300
hospitals is tied to quality metrics and we expect to add 50 to100
hospitals over the next two years.
cost-efficiency criteria. Customers in Cigna Care Network plans pay

reduced co-payments or co-insurance when they receive care from a
specialist designated as a Cigna Care Network physician. Participating
specialists are evaluated regularly for the Cigna Care Network
designation.
LocalPlus is a provider network of doctors and hospitals designed to
provide cost-effective and quality care by limiting the network to
select health care providers and facilities. We currently offer LocalPlus
in 16 markets and will expand this approach in additional markets in
2016.
Medical Care and Onsite Services
Specialty Care Collaboration Program we continue to develop

arrangements with specialists including programs such as
National Obstetrics/Gynecology and our program to reimburse
providers for individual episodes of care (services performed to
treat a specific medical condition).
Cigna Medical Group is a multi-specialty medical group practice

that delivers primary care and certain specialty care services through
23 medical facilities and 150 clinicians in Phoenix, Arizona. These
health care centers have received the highest accreditation (level 3)
from the National Committee for Quality Assurance (NCQA).
Patient Care Collaboration Program we are developing a program

which will engage small physician practice first by providing
them with actionable patient information to improve outcomes.
We anticipate piloting with select physicians in a few markets in
2016.
LivingWell Health Centers. Medicare Advantage customers may

receive care from one of our five free-standing clinics and eight
embedded clinics that incorporate the principles and resources of
stand-alone clinics while allowing the customer access to their
primary care physician.
Independent Practice Associations are innovative physician

engagement models in our Cigna-HealthSpring business that allow
the physician groups to share financial outcomes with us. The
Cigna-HealthSpring clinical model also includes outreach to new
and at-risk patients to ensure they are accessing their primary care
physician.
Cigna Onsite Health provides employer-based onsite or nearby

health centers and health and wellness coaches with nearly 50 health
centers and 140 health coaches. Care delivery services include acute,
episodic care, primary care, health and wellness coaching programs
and biometric screenings. Virtual Health care services are also
available to help extend access to care for both coaching and
treatment services.
Delivery System Alliances. Cigna and select health care providers

are collaborating to develop products to improve the experience of
Cigna customers by offering integrated health care and providing
access to quality, value-based care in local communities.
External Validation
Participating Provider Network

We provide our customers with an extensive network of participating
health care professionals, hospitals, and other facilities, pharmacies
and providers of health care services and supplies. In most instances,
we contract with them directly; however, in some instances, we
contract with third parties for access to their provider networks and
care management services. In addition, we have entered into strategic
alliances with several regional managed care organizations (e.g., Tufts
Health Plan, HealthPartners, Inc., Health Alliance Plan, and MVP
Health Plan) to gain access to their provider networks and discounts.
We credential physicians, hospitals and other health care professionals
in our participating provider networks using quality criteria that meet
or exceed the standards of external accreditation or state regulatory
agencies, or both. Typically, most health care professionals are
re-credentialed every three years.
The Cigna Care Network, a benefit design option available in 72
markets across the U.S., is a subset of participating specialist
physicians designated based on specific clinical quality and
We continue to demonstrate our commitment to quality and have a

broad scope of quality programs validated through nationally
recognized external accreditation organizations. We maintained
Health Plan accreditation from the NCQA in 37 of our markets.
Additional NCQA recognitions include Full Accreditation for
Managed Behavioral Healthcare Organization for Cigna Behavioral
Health, Accreditation with Performance Reporting for Wellness &
Health Promotion, Accreditation for our wellness programs and
Physician & Hospital Quality Certification for our provider
transparency program. We have Full Accreditation for Health
Utilization Management, Case Management, Pharmacy Benefit
Management and Specialty Pharmacy from URAC, an independent,
nonprofit health care accrediting organization dedicated to promoting
health care quality through accreditation, certification and
commendation.
We participate in the NCQAs Health Plan Employer Data and
Information Set (HEDIS) Quality Compass Report, whose
Effectiveness of Care measures are a standard set of metrics to evaluate
the effectiveness of managed care clinical programs. Our national
results compare favorably to industry averages.
PART I
ITEM 1. Business
Markets and Distribution

We offer health care and related products and services in the following customer segments or markets:
% of Medical
Customers
National
Middle Market
Select
Individual
Government
International
Multi-state employers with 5,000 or more U.S.-based, full-time employees. We offer primarily ASO funding
solutions in this market segment.
Employers generally with 250 to 4,999 U.S.-based, full-time employees. This segment also includes single-site
employers with more than 5,000 employees and Taft-Hartley plans and other groups. We offer ASO, experiencerated and guaranteed cost insured funding solutions in this market segment.
Employers generally with 51-249 eligible employees. We offer ASO (often with stop-loss insurance coverage) and
guaranteed cost insured funding solutions in this market segment.
Individuals in twelve states: Arizona, California, Colorado, Connecticut, Florida, Georgia, North Carolina,
Maryland, Missouri, South Carolina, Tennessee and Texas. In 2015, we offered coverage on eight public health
insurance exchanges (Arizona, Colorado, Florida, Georgia, Maryland, Missouri, Tennessee and Texas). In 2016, we
will not be on the public exchange in Florida. Consistent with the regulations for Individual PPACA compliant
plans, we offer plans only on a guaranteed cost basis in this market segment.
Individuals who are post-65 retirees, as well as employer group sponsored pre- and post-65 retirees. We offer
Medicare Advantage, Prescription Drug programs, and Medicaid products in this market segment including
dual-eligible members who receive both Medicare and Medicaid benefits.
Local and multinational companies and organizations and their local and globally-mobile employees and
dependents. We offer guaranteed cost, experience-rated insured and ASO funding solutions in this market segment.
Cigna Guided SolutionsSM is Cignas benefit administration and

private exchange solution that targets clients who value fully
integrated solutions and focus on engaging employees in their benefit
offering. It leverages Cignas ability to provide a fully integrated
solution with our broad spectrum of products, benefit plans, services,
and full suite of funding options focused on improving total cost,
health, and productivity. Through Cigna Guided Solutions,
employers enjoy simplified administration and the convenience of
single source purchasing while employees receive more choice via an
easy-to-use shopping experience and year round engagement.
Together with integrated robust decision-support tools, employees are
able to make personalized decisions to select the right benefit offering
and get the most value from their plans.
In addition, Cigna participates on many third party private exchanges.
We actively evaluate private exchange participation opportunities as
they emerge in the market, and target our participation to those
models that best align with our mission and value proposition. To
date, we remain committed to participate with numerous private
exchanges for both active employees and retirees.
We employ sales representatives to distribute our products and
services through insurance brokers and insurance consultants or
directly to employers, unions and other groups or individuals. We also
employ representatives to sell access to our national participating
provider network, utilization review services, behavioral health care
and pharmacy management services, and employee assistance services
directly to insurance companies, HMOs and third party
administrators. As of December 31, 2015, our field sales force
consisted of over 1,400 sales representatives in approximately 130
field locations. In our Government business, Medicare Advantage
enrollment is generally a decision made individually by the customer,
and accordingly, sales agents and representatives focus their efforts on
in-person contacts with potential enrollees, as well as telephonic and
group selling venues.
Competition and Industry Developments

Our business is subject to intense competition and continuing
industry consolidation that has created an even more competitive
25%
53%
8%
1%
4%
9%
business environment. In certain geographic locations, some health

care companies may have significant market share positions, but no
one competitor dominates the health care market nationally. In 2015,
industry consolidation was significant with the announcement of our
proposed merger with Anthem as well as Aetna Inc.s proposed merger
with Humana Inc. We expect a continuing trend of consolidation in
the overall health care industry (including hospitals, pharmaceutical
companies, and providers of medical technology and devices) given
the current economic and political environment. We also expect
continued vertical integration with the lines blurring between
clinicians, hospitals and traditional insurers.
Competition in the health care market exists both for employers and
other groups sponsoring plans and for employees in those instances
where the employer offers a choice of products from more than one
health care company. Most group policies are subject to annual review
by the plan sponsor, who may seek competitive quotations prior to
renewal. We expect competition to increase in the individual market
as a result of the growth in public health insurance exchanges under
Health Care Reform. Given the relatively immature individual market
and limited data around claim experience, we expect some uncertainty
and competitive volatility to continue through these initial years of the
exchange roll out. Some of these risks are mitigated by the government
risk mitigation programs.
The primary competitive factors affecting our business are quality and
cost-effectiveness of service and provider networks; effectiveness of
medical care management; products that meet the needs of employers
and their employees; total cost management; technology; and
effectiveness of marketing and sales. Financial strength of the insurer,
as indicated by ratings issued by nationally recognized rating agencies,
is also a competitive factor. We believe that our health advocacy
capabilities, holistic approach to consumer engagement, breadth of
product offerings, clinical care and medical management capabilities
and array of product funding options are competitive advantages in
meeting the diverse needs of our customer base. We also believe that
our focus on helping to improve the health, well-being and sense of
security of the customers we serve will allow us to differentiate
ourselves from our competitors.
PART I
ITEM 1. Business
Our primary competitors in our U.S.-based health care businesses

include:
Other national insurance and health services companies that
provide group health and life insurance products;
Not for profit managed care organizations;
Other regional stand-alone managed care and specialty companies;
Managed care organizations affiliated with major insurance
companies and hospitals; and
National managed pharmacy, behavioral health and utilization
review services companies.
Our primary competitors in the international health care business
include U.S. and other health insurance companies with global health
benefits operations.
In addition to our traditional competitors, new competitors are
emerging. Some of these newer competitors, such as hospitals and
companies that offer web-based tools for employers and employees,
are focused on delivering employee benefits and services through
internet-enabled technology that allows consumers to take a more
active role in the management of their health. This can be
accomplished through financial incentives, access to enhanced quality
medical data and other information sharing. The effective use of our
health advocacy, customer insight and physician engagement

capabilities, along with decision support tools (some of which are
web-based) and enabling technology are critical to success in the
health care industry, and we believe our capabilities in these areas will
be competitive differentiators.
The health insurance marketplace will continue to be shaped by
Health Care Reform and changes in Health Care Reform are
continuing to occur, including a proposed definition of small
employer that was to automatically increase to apply to employers
with up to 100 employees in 2016. This would have subjected Cignas
insured group health insurance plans to PPACA requirements that are
unique to the small employer and individual market. However
legislation repealing this change was enacted late in 2015. In 2017,
states have the ability to include larger employer groups
(i.e. employers with more than 50 employees) in their small employer
health exchanges. If that occurs, all group insurance policies issued in
the state will be subject to small employer requirements such as
community-rating. Late in 2015, legislation was enacted that delays
implementation from 2018 to 2020 of the excise tax on high cost
employer-sponsored health coverage (commonly referred to as the
Cadillac Tax). State law changes that are inconsistent with federal
law changes add additional uncertainty. See the Regulation section
of this Form 10-K for additional information regarding Health Care
Reform.

How We Win
Leveraging deep consumer insights to drive product innovation
Targeting the growing middle class and seniors populations globally
Leading innovative, direct to consumer distribution capabilities (over 150 affinity partners)
Easy to understand, affordable products designed to fill gaps in either private or public coverage
Locally licensed and managed by strong, locally developed talent
Hospitalization
Dental
Medicare Supplement
Critical Illness
Personal Accident
Term or Variable Universal Life
Key Geographies and

Growth Markets
Asia: South Korea, China, Taiwan,
Indonesia and India
Europe: UK and Turkey
United States: Medigap-style plans
for retirees
We continue to distinguish ourselves in the global supplemental

health, life and accident businesses through our differentiated
direct-to-consumer distribution, customer insights and marketing
capabilities. We enter new markets when the opportunity to bring our
Telemarketing
Home Shopping & Direct
Response Television
Independent agents
Bancassurance
Internet
product and health solutions is attractive. Over the past several years,
we have continued to extend our product offerings and geographic
reach. For example, in 2014, we began offering products in India
through our joint venture with TTK Group.
PART I
ITEM 1. Business
Principal Products and Services

Supplemental Health, Life and Accident Insurance
Supplemental health, life and accident insurance products generally
provide simple, affordable coverage of risks for the health and
financial security of individuals. Supplemental health products
provide specified payments for a variety of health risks and include
personal accident, accidental death, critical illness, hospitalization,
travel, dental, cancer and other dread disease coverages. We also offer
customers individual private medical insurance, term and variable
universal life insurance, and certain savings products.
Medicare Supplement Plans

We offer individual Medicare Supplement plans that provide retirees
with federally standardized Medigap-style plans. Retirees may select
among the various plans with specific plan options to meet their
unique needs and may visit, without the need for a referral, any health
care professional or facility that accepts Medicare throughout the
United States.
Pricing and Reinsurance

Premium rates for our global supplemental benefits products are based
on assumptions about mortality, morbidity, customer acquisition and
retention, customer demographics, expenses and target profit
margins, as well as interest rates. For variable universal life insurance
products, fees consist of mortality, administrative, asset management
and surrender charges assessed against the contractholders fund
balance. Mortality charges on variable universal life may be adjusted
prospectively to reflect expected mortality experience. Most contracts
permit premium rate changes at least annually.
Most of the businesses in this segment operate through foreign
subsidiaries. We maintain a capital management strategy to retain
overseas a significant portion of the earnings from these foreign
operations. These undistributed earnings are deployed outside of the
United States in support of the liquidity and capital requirements of
our foreign operations. As a result, the effective tax rate for Global
Supplemental Benefits reflects income tax expense that is generally
lower than in the United States.
A global approach to underwriting risk management allows each local
business to underwrite and accept risk within specified limits.
Retentions are centrally managed through cost effective use of external
reinsurance to limit our liability on per life, per risk, and per event
(catastrophe) bases.

Our supplemental health, life and accident insurance products sold in
foreign countries are generally marketed through distribution partners
with whom the individual insured has an affinity relationship. These
products are sold primarily through direct marketing channels, such as
outbound telemarketing, and in-branch bancassurance (when we
partner with a bank and use the banks sales channels to sell our
insurance products). Marketing campaigns are conducted through
these channels under a variety of arrangements with affinity partners,

including banks, credit card companies and other financial and
non-financial institutions. We also market directly to consumers via
direct response television and the Internet. In certain countries, we
market our products through captive and third party brokers and
agents. Our Medicare supplement product line is distributed
primarily through independent agents and telemarketing directly to
the consumer.
South Korea represents our single largest geographic market for
Global Supplemental Benefits. For information on this concentration
of risk for the Global Supplemental Benefits segments business in
South Korea, see Other Items Affecting Results of Global
Supplemental Benefits in the Global Supplemental Benefits section
of Managements Discussion and Analysis of Financial Condition and
Results of Operations (MD&A) beginning on page 50 of this
Form 10-K.
For our supplemental health, life and accident insurance products sold
in foreign markets we are increasingly exposed to geopolitical,
currency and other risks inherent in foreign operations. Also, given
that we bill and collect a significant portion of premiums through
credit cards, a substantial contraction in consumer credit could impact
our ability to retain existing policies and sell new policies. A decline in
customer retention would result in both a reduction of revenue and an
acceleration of the amortization of acquisition-related costs. Changes
in regulation for permitted distribution channels also may impact our
business or results.
Competition
We expect that the competitive environment for global supplemental
benefits will continue to intensify as U.S., Europe and other
regionally-based insurance and financial services providers more
aggressively pursue expansion opportunities across geographies,
especially in Asia. We believe competitive factors will include
branding, product and distribution innovation and differentiation,
efficient management of marketing processes and costs, commission
levels paid to distribution partners, the quality of claims, local
network coverage, customer services and talent acquisition and
retention. Additionally, in most overseas markets, perception of
financial strength also will likely continue to be an important
competitive factor.
Our competitors are primarily locally-based insurance companies,
including insurance subsidiaries of banks primarily in Asia and
Europe and multi-national companies. Insurance company
competitors in this segment primarily focus on traditional product
distribution through captive agents, with direct marketing being
secondary channels. We estimate that we have less than 3% market
share of the total insurance premiums in any given market in which
we operate.
In the Medicare supplement business, the principal competitive
factors are underwriting and pricing, relative operating efficiency,
broker relations, and the quality of claims and customer service. Our
primary competitors in this business include U.S.-based health
insurance companies.
PART I
ITEM 1. Business
Industry Developments
competitors with industry consolidation among financial institutions

and other affinity partners.
Pressure on social health care systems, a rapidly aging population and

increased wealth and education in developing insurance markets are
leading to higher demand for products providing health insurance and
financial security. In the supplemental health, life and accident
business, direct marketing channels continue to grow and attract new
Data privacy regulation has tightened in all markets in the wake of

data privacy news scandals, impacting affinity partner and customer
attitudes toward direct marketing of insurance and other financial
services.

How We Win
Disability absence management model that reduces overall costs to employers
Integration of disability products with medical and specialty offerings, promoting health, wellness and optimizing employee
productivity
Complementary portfolio of group disability, life and accident offerings
Disciplined underwriting, pricing and investment strategies supporting profitable long-term growth
Short-term disability
Long-term disability
Leave administration
Basic-term life
Voluntary term life
Group universal life

Personal and voluntary accident
Business travel accident
Critical illness and Accidental injury
Insurance brokers and consultants

Sales representatives
Customer Segments
National
Middle Market
Select
Our Group Disability and Life business markets its products and services in all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin
Islands and Canada.

Group Disability
Long-term and short-term group disability insurance products
generally provide a fixed level of income to replace a portion of wages
lost because of disability. Group disability coverage is typically
employer-paid or a combination of employer and employee-paid, but
also may include coverage paid for entirely by employees. As part of
our group disability insurance products, we also provide assistance to
employees in returning to work and assistance to their employers in
managing the cost of employee disability. We are an industry leader in
helping employees return to work quickly, resulting in higher
productivity and lower cost for employers and a better quality of life
for their employees.
We seek to integrate the administration of our disability insurance
products with other disability benefit programs, behavioral programs,
medical programs, social security advocacy, and administration of
federal and state Family and Medical Leave Act (FMLA) laws and
other leave of absence programs. We believe this integration provides
our customers with increased efficiency and effectiveness in disability
claims management, enhances productivity and reduces overall costs
to employers. This integration also provides early insight into

employees at risk for future disability claims. Coordinating the
administration of these disability programs with medical programs
offered by our health care business provides enhanced opportunities to
influence outcomes, reduce the cost of both medical and disability
events and improve the return to work rate. The benefits of this
integrated approach also include:
using information from the health care and disability databases to
help identify, treat and manage disabilities before they become
longer in duration or chronic and more costly; and
proactively reaching out to assist employees suffering from a mental
health or chronic condition, either as a primary condition or as a
result of another condition.
Our disability products and services are offered on a fully insured,
experience-rated and ASO basis, although most are fully insured. As
measured by 2015 premiums and fees, disability constituted 48% of
this segments business. Approximately 14,300 insured disability
policies covering approximately eight million lives were in force as of
December 31, 2015.
PART I
ITEM 1. Business
Group Life Insurance

Group life insurance products offered include term life and universal
life. Group term life insurance may be employer-paid basic life
insurance, employee-paid supplemental life insurance or a
combination thereof. Group universal life insurance is an
employee-paid, voluntary life insurance product in which the owner
may accumulate a cash value. The cash value earns interest at rates
declared from time to time, subject to a minimum guaranteed
contracted rate, and may be borrowed, withdrawn, or, within certain
limits, used to fund future life insurance coverage.
As measured by 2015 premiums and fees, group life insurance
constituted approximately 45% of this segments business.
Approximately 11,000 group life insurance policies covering over
7.5 million lives were in force as of December 31, 2015.
Other Products and Services

We also offer personal accident insurance coverage, consisting
primarily of accidental death and dismemberment and travel accident
insurance to employers. Group accident insurance may be
employer-paid or employee-paid. In addition, we offer specialty
insurance services that consist primarily of disability and life, accident,
and hospital indemnity products to professional or trade associations
and financial institutions.
We also provide a number of voluntary products and services that are
typically paid by the employee and offered at the employers worksite.
Our plans provide employers with administrative solutions designed
to provide employers with a complete and simple way to manage their
benefits program. In recent years, we have brought to market two
additional voluntary offerings accidental injury insurance and
critical illness coverage. Both products provide additional dollar
payouts to employees for unexpected accidents or more serious
illnesses.
Pricing and Reinsurance

Premiums charged for disability and term life insurance products are
usually established in advance of the policy period and are generally
guaranteed for one to three years and selectively guaranteed for up to
five years; policies are generally subject to termination by the
policyholder or by the insurance company annually. Premium rates
reflect assumptions about future claims, expenses, credit risk,
investment returns and profit margins. These assumptions may be
based in whole or in part on prior experience of the account or on a
pool of accounts, depending on the group size and the statistical
credibility of the experience that varies by product.
Premiums for group universal life insurance products consist of
mortality and administrative charges assessed against the
policyholders fund balance. Interest credited and mortality charges
for group universal life may be adjusted prospectively to reflect
expected interest and mortality experience. Mortality charges are
subject to maximum guaranteed rates and interest credited on cash
values is subject to minimum guaranteed rates as stated in the policy.
The premiums for these products are typically collected within the
coverage year and then invested in assets that match the duration of
the expected benefit payments that occur over many future years
(primarily for disability benefits). With significant investments in
longer-duration securities, net investment income is a critical element
of profitability for this segment.
The effectiveness of return to work programs and morbidity levels will
impact the profitability of disability insurance products. Our previous
claim experience and industry data indicate a correlation between
disability claim incidence levels and economic conditions, with
submitted claims rising under adverse economic conditions, although
this impact is not clear. For life insurance products, the degree to
which future experience deviates from mortality and expense
assumptions also affects profitability.
To reduce our exposure to large individual and catastrophic losses
under group life, disability and accidental death policies, as well as our
newer accidental injury and critical illness policies, we purchase
reinsurance from a diverse group of unaffiliated reinsurers. Our
comprehensive reinsurance program consists of quota share and excess
of loss treaties and catastrophe coverage designed to mitigate earnings
volatility and provide surplus protection.

We market our group disability and life insurance products and
services to employers, employees, professional and other associations
and groups in the National, Middle Market and Select segments. In
marketing these products, we primarily sell through insurance brokers
and consultants and employ a direct sales force consisting of
approximately 265 sales professionals in 27 office locations as of
December 31, 2015.
Competition
The principal competitive factors that affect the Group Disability and
Life segment are underwriting and pricing, the quality and
effectiveness of claims management, relative operating efficiency,
investment and risk management, distribution methodologies and
producer relations, the breadth and variety of products and services
offered, and the quality of customer service. For certain products with
longer-term liabilities, such as group long-term disability insurance,
the financial strength of the insurer, as indicated by ratings issued by
nationally recognized rating agencies, also is a competitive factor.
The principal competitors of our group disability, life and accident
businesses are other large and regional insurance companies that
market and distribute these or similar types of products. As of
December 31, 2015, we are one of the top five providers of group
disability, life and accident insurance in the United States, based on
premiums.
Industry Developments
Employers are expressing a growing interest in employee wellness,
absence management and productivity and likewise are recognizing a
strong link between employee health, productivity and their
profitability. As this interest grows, we believe our healthy lifestyle and
return-to-work programs and integrated family medical leave,
disability and health care programs position us to deliver integrated
PART I
ITEM 1. Business
solutions for employers and employees. We also believe that our

strong disability management portfolio and fully integrated programs
provide tools for employers and employees to improve health status.
This focus on managing the employees total absence enables us to
increase the number and effectiveness of interventions and minimize
disabling events.
The group insurance market remains highly competitive as the rising
cost of providing medical coverage to employees has forced companies
to re-evaluate their overall employee benefit spending, resulting in
lower volumes of group disability and life insurance business and
more competitive pricing. Demographic shifts have further driven
demand for products and services that are sufficiently flexible to meet
the evolving needs of employers and employees who want innovative,
cost-effective solutions to their insurance needs. Employers continue
to shift towards greater employee participatory coverage and voluntary
purchases. With our broad suite of voluntary offerings and continued
focus on developing additional voluntary products and service
capabilities, we believe we are well positioned to meet the needs of

both employers and employees as the market shifts to become more
retail-focused.
Over the past few years, there has been heightened review by state
regulators of the claims handling practices within the disability and
life insurance industry. This has resulted in an increase in coordinated,
multi-state examinations that target specific market practices in
addition to regularly recurring examinations of an insurers overall
operations conducted by an individual states regulators. We have
recently been subject to such an examination. See Note 23 to the
Consolidated Financial Statements for additional information.
The depressed level of interest rates in the United States over the last
several years has constrained earnings growth in this segment due to
lower yields on our fixed-income investments, and higher benefit
expenses resulting from the discounting of future claim payments at
lower interest rates.
Other Operations
Other Operations includes the following four businesses:
Corporate-owned Life Insurance

The principal products of the COLI business are permanent insurance
contracts sold to corporations to provide coverage on the lives of
certain employees for the purpose of financing employer-paid future
benefit obligations. Permanent life insurance provides coverage that,
when adequately funded, does not expire after a term of years. The
contracts are primarily non-participating universal life policies. Fees
for universal life insurance products consist primarily of mortality and
administrative charges assessed against the policyholders fund
balance. Interest credited and mortality charges for universal life and
mortality charges on variable universal life may be adjusted
prospectively to reflect expected interest and mortality experience. To
reduce our exposure to large individual and catastrophe losses, we
purchase reinsurance from unaffiliated reinsurers.
Run-off Settlement Annuity Business

Our settlement annuity business is a closed, run-off block of single
premium annuity contracts. These contracts are primarily liability
settlements with approximately 21% of the liabilities associated with
payments that are guaranteed and not contingent on survivorship. For
contracts that involve non-guaranteed payments, such payments are

contingent on the survival of one or more parties involved in the
settlement.
Run-off Reinsurance
Our reinsurance operations are an inactive business in run-off mode.
In February 2013, we effectively exited the GMDB and GMIB
business by reinsuring 100% of our future exposures, net of
retrocessional arrangements in place at that time, up to a specified
limit. For additional information regarding this reinsurance
transaction, see Note 7 to the Consolidated Financial Statements.
Individual Life Insurance and Annuity and

Retirement Benefits Businesses
This business includes deferred gains recognized from the 1998 sale of
the individual life insurance and annuity business and the 2004 sale of
the retirement benefits business. For more information regarding the
sale of these businesses and the arrangements that secure our
reinsurance recoverables for the retirement benefits business, see
Note 7 of the Consolidated Financial Statements.
Investments and Investment Income

General Accounts
Our investment operations provide investment management and
related services for our corporate invested assets and the insurancerelated invested assets in our General Account (General Account
Invested Assets). We acquire or originate, directly or through
intermediaries, a broad range of investments including private
placement and public securities, commercial mortgage loans, real
estate, mezzanine, private equity partnerships and short-term
investments. Invested assets also include policy loans that are fully
collateralized by insurance policy cash values. Invested Assets are

managed primarily by our subsidiaries and, to a lesser extent, external
managers with whom our subsidiaries contract. Net investment
income is included as a component of adjusted income from
operations for each of our reporting segments and Corporate. Realized
investment gains (losses) are reported by segment but excluded from
adjusted income from operations. For additional information about
invested assets, see the Investment Assets section of the MD&A
beginning on page 53 and Notes 10 to 14 of our Consolidated
Financial Statements.
PART I
ITEM 1. Business
We manage our investment portfolios to reflect the underlying

characteristics of related insurance and contractholder liabilities and
capital requirements, as well as regulatory and tax considerations
pertaining to those liabilities and state investment laws. Insurance and
contractholder liabilities range from short duration health care
products to longer term obligations associated with disability and life
insurance products and the run-off settlement annuity business.
Assets supporting these liabilities are managed in segregated
investment portfolios to facilitate matching of asset durations and
cash flows to those of corresponding liabilities. Investment strategy
and results are affected by the amount and timing of cash available for
investment, competition for investments, economic conditions,
interest rates and asset allocation decisions. We routinely monitor and
evaluate the status of our investments, obtaining and analyzing
relevant investment-specific information and assessing current
economic conditions, trends in capital markets and other factors such
as industry sector, geographic and property-specific information.
Separate Accounts
Our subsidiaries or external advisors manage Separate Account assets
on behalf of contractholders. These assets are legally segregated from
our other businesses and are not included in General Account
Invested Assets. Income, gains and losses generally accrue directly to
the contractholders. As of December 31, 2015, our Separate Account
assets consisted of:
$3.6 billion in separate account assets that constitute a portion of
the assets of the Cigna Pension Plan;
$3.3 billion in separate account assets that support Variable
Universal Life products sold as a part of our corporate-owned life
insurance business, as well as through our Global Supplemental
Benefits segment; and
$900 million in separate account assets that support primarily
health care and other disability and life products.
Regulation
The laws and regulations governing our business continue to increase
each year and are subject to frequent change. We are regulated by
state, federal and international regulatory agencies that generally have
discretion to issue regulations and interpret and enforce laws and
rules. These regulations can vary significantly from jurisdiction to
jurisdiction, and the interpretation of existing laws and rules also may
change periodically. Domestic and international governments
continue to enact and consider various legislative and regulatory
proposals that could materially impact the health care system.
Our insurance and HMO subsidiaries must be licensed by the
jurisdictions in which they conduct business. These subsidiaries are
subject to numerous state, federal and international regulations
related to their business operations, including, but not limited to:
the form and content of customer contracts including benefit
mandates (including special requirements for small groups);
premium rates and medical loss ratios;
the content of agreements with participating providers of covered
services;
producer appointment and compensation;
claims processing, payment and appeals;
underwriting practices;
reinsurance arrangements;
solvency and financial reporting;
unfair trade and claim practices;
market conduct;
protecting the privacy and confidentiality of the information
received from customers;
risk sharing arrangements with providers;
reimbursement or payment levels for Medicare services;
advertising; and
the operation of consumer-directed plans (including health savings

accounts, health reimbursement accounts, flexible spending
accounts and debit cards).
The business of administering and insuring employee benefit
programs in the United States, particularly health care programs, is
heavily regulated by state and federal laws and administrative agencies,
such as state departments of insurance, and federal agencies including
HHS, CMS, the Internal Revenue Service (IRS) and the
Departments of Labor, Treasury and Justice, as well as the courts.
Health savings accounts, health reimbursement accounts and flexible
spending accounts also are regulated by the Department of the
Treasury and the IRS.
Our operations, accounts and other books and records are subject to
examination at regular intervals by regulatory agencies, including state
insurance and health and welfare departments, state boards of
pharmacy, CMS and comparable international regulators to assess
compliance with applicable laws and regulations. In addition, our
current and past business practices are subject to review by, and from
time to time we receive subpoenas and other requests of information
from, various state insurance and health care regulatory authorities,
attorneys general, the Office of Inspector General (OIG), the
Department of Labor and other state, federal and international
authorities, including inquiries by, and testimony before committees
and subcommittees of the U.S. Congress regarding certain of our
business practices. These examinations, reviews, subpoenas and
requests may result in changes to or clarifications of our business
practices, as well as fines, penalties or other sanctions.
Our international subsidiaries are subject to regulations in
international jurisdictions where foreign insurers may be faced with
more onerous regulations than their domestic competitors. In
addition, the expansion of our operations into foreign countries
increases our exposure to certain U.S. laws, such as the Foreign
Corrupt Practices Act of 1977 (FCPA). See page 18 for further
discussion of international regulations.
PART I
ITEM 1. Business
Health Care Reform

Health Care Reform mandated broad changes affecting insured and
self-insured health benefit plans that impact our current business
model, including our relationship with current and future customers,
producers and health care providers, products, services, processes and
technology. While certain components of Health Care Reform will
continue to be phased in through 2020, most of the key provisions of
Health Care Reform are now effective. Health Care Reform left many
details to be established through regulations. Although federal
agencies have published proposed and final regulations with respect to
most provisions, many issues remain uncertain. Certain provisions of
Health Care Reform have been, and will likely continue to be, subject
to legal challenge.
Key Provisions of Health Care Reform

Various fees, including the health insurance industry tax and the
reinsurance fee, were assessed beginning in 2014. The health
insurance industry assessment, totaling $11.3 billion for the industry
in 2015 and increasing to $14.3 billion by 2018, is not tax deductible.
In December 2015, the federal appropriations legislation imposed a
one-year moratorium on the industry tax for 2017, with
reinstatement expected in 2018. Our share of this industry tax is
determined based on our proportion of premiums for both our
commercial and government risk businesses to the industry total. The
reinsurance fee is a temporary (2014-2016) fixed dollar per customer
levy on all insurers, HMOs and self-insured group health plans and is
tax deductible.
The health insurance exchange enrollment process began on
October 1, 2013 with coverage first effective in 2014. Each state has a
state-based, a state and federal partnership, or a federally-facilitated
health insurance exchange for individuals and small employer groups
to purchase insurance coverage. Because individuals seeking to
purchase health insurance coverage either on or off the exchanges are
guaranteed to be issued a policy, Health Care Reform provides
programs designed to reduce the risk for participating health
insurance companies including: 1) a temporary (2014-2016)
reinsurance program; and (2) a premium stabilization program
comprised of two components: a temporary program (2014-2016)
limiting insurer gains and losses, and a permanent program that
adjusts premiums based on the relative health status of the customer
base. See Note 2 to the Consolidated Financial Statements and the
Introduction to the MD&A contained in this Form 10-K for
additional information on these programs.
MLR requirements, as prescribed by HHS, became effective in
January 2011 and require payment of premium rebates to group and
individual policyholders if certain annual MLRs are not met in our
commercial business. In December 2014, the federal government
enacted legislation that provides permanent relief from certain Health
Care Reform requirements for expatriate health coverage (including
the MLR requirements).
Other provisions of Health Care Reform in effect include reduced
Medicare Advantage premium rates, the requirement to cover
preventive services with no enrollee cost-sharing, banning the use of
lifetime and annual limits on the dollar amount of essential health
benefits, increasing restrictions on rescinding coverage and extending
coverage of dependents to the age of 26. Beginning in 2015 and

continuing into 2016, phase- in of the employer mandate requires
employers with 50 or more full-time employees to offer affordable
health insurance that provides minimum value (each as defined under
Health Care Reform) to full-time employees and dependent children
up to age 26 or be subject to penalties based on employer size. Health
Care Reform also changed certain tax laws that effectively limit tax
deductions for certain employee compensation paid by health
insurers.
Our Medicare Advantage and Medicare Part D prescription drug plan
businesses also have been impacted by Health Care Reform in a
variety of additional ways, including mandated minimum reductions
to risk scores, transition of Medicare Advantage benchmark rates to
Medicare fee-for-service parity, reduced enrollment periods and
limitations on disenrollment, providing quality bonuses for
Medicare Advantage plans with a rating for four or five stars from
CMS and mandated consumer discounts on brand name and generic
prescription drugs for Medicare Part D plan participants in the
coverage gap. Beginning in 2014, Health Care Reform requires
Medicare Advantage and Medicare Part D plans to meet a minimum
MLR of 85%. Under the finalized regulations promulgated by HHS,
if the MLR for a CMS contract is less than 85%, we are required to
pay a penalty to CMS and could be required to make additional
payments if the MLR continues to be less than 85% for successive
years. Through Health Care Reform and other federal legislation,
funding for Medicare Advantage plans has been and may continue to
be altered.
We have substantially implemented the key provisions of Health Care
Reform. Management continues to be actively engaged with
regulators and policymakers with respect to rule-making. For the
financial effects of certain Health Care Reform provisions, see the
Overview section of our MD&A beginning on page 35 of this
Form 10-K. In addition, accounting policies around the governments
risk mitigation programs are further disclosed in Note 2 to the
Consolidated Financial Statements.
Regulation of Insurance Companies

Financial Reporting, Internal Control and Corporate
Governance
Regulators closely monitor the financial condition of licensed
insurance companies and HMOs. States regulate the form and
content of statutory financial statements, the type and concentration
of permitted investments, and corporate governance over financial
reporting. Our insurance and HMO subsidiaries are required to file
periodic financial reports and schedules with regulators in most of the
jurisdictions in which they do business as well as annual financial
statements audited by independent registered public accounting
firms. Certain insurance and HMO subsidiaries are required to file an
annual report of internal control over financial reporting with most
jurisdictions in which they do business. Insurance and HMO
subsidiaries operations and accounts are subject to examination by
such agencies. We expect states to expand regulations relating to
corporate governance and internal control activities of insurance and
HMO subsidiaries as a result of model regulations adopted by the
National Association of Insurance Commissioners (NAIC) with
PART I
ITEM 1. Business
elements similar to corporate governance and risk oversight disclosure

requirements under federal securities laws. The NAIC formally
adopted these requirements in late 2014, with applicability to U.S.
insurers beginning in 2016.
Guaranty Associations, Indemnity Funds, Risk Pools

and Administrative Funds
Most states and certain non-U.S. jurisdictions require insurance
companies to support guaranty associations or indemnity funds that
are established to pay claims on behalf of insolvent insurance
companies. In the United States, to pay such claims, these associations
levy assessments on member insurers licensed in a particular state.
Certain states require HMOs to participate in guaranty funds, special
risk pools and administrative funds. For additional information about
guaranty fund and other assessments, see Note 23 to our Consolidated
Certain states continue to require health insurers and HMOs to
participate in assigned risk plans, joint underwriting authorities, pools
or other residual market mechanisms to cover risks not acceptable
under normal underwriting standards, although some states have
eliminated these requirements as a result of Health Care Reform.
Solvency and Capital Requirements

Many states have adopted some form of the NAIC model solvencyrelated laws and risk-based capital rules (RBC rules) for life and
health insurance companies. The RBC rules recommend a minimum
level of capital depending on the types and quality of investments
held, the types of business written and the types of liabilities incurred.
If the ratio of the insurers adjusted surplus to its risk-based capital falls
below statutory required minimums, the insurer could be subject to
regulatory actions ranging from increased scrutiny to conservatorship.
In addition, various non-U.S. jurisdictions prescribe minimum
surplus requirements that are based upon solvency, liquidity and
reserve coverage measures. Our HMOs and life and health insurance
subsidiaries, as well as non-U.S. insurance subsidiaries, are compliant
with applicable RBC and non-U.S. surplus rules.
The Risk Management and Own Risk and Solvency Assessment
Model Act (ORSA), adopted by the NAIC, provides requirements
and principles for maintaining a group solvency assessment and a risk
management framework and reflects a broader approach to U.S.
insurance regulation. ORSA includes a requirement to file an annual
ORSA Summary Report in the lead state of domicile and now must
be adopted into law by each state. Our insurance business in the
United States is subject to these requirements and we filed our initial
ORSA Summary Report as required in 2015.
Holding Company Laws

Our domestic insurance companies and certain of our HMOs are
subject to state laws regulating subsidiaries of insurance holding
companies. Under such laws, certain dividends, distributions and
other transactions between an insurance company or an HMO
subsidiary and its affiliates may require notification to, or approval by,
one or more state insurance commissioners.
Marketing, Advertising and Products

In most states, our insurance companies and HMO subsidiaries are
required to certify compliance with applicable advertising regulations
on an annual basis. Our insurance companies and HMO subsidiaries
are also required by most states to file and secure regulatory approval
of products prior to the marketing, advertising, and sale of such
products.
Licensing Requirements
Certain of our subsidiaries are pharmacies that dispense prescription
drugs to participants of benefit plans administered or insured by our
HMO and insurance company subsidiaries. These pharmacysubsidiaries are subject to state licensing requirements and regulation
as well as U.S. Drug Enforcement Agency registration requirements.
Other laws and regulations affecting our pharmacy-subsidiaries
include federal and state laws concerning labeling, packaging,
advertising and adulteration of prescription drugs and dispensing of
controlled substances.
Certain subsidiaries contract to provide claim administration,
utilization management and other related services for the
administration of self-insured benefit plans. These subsidiaries may be
subject to state third-party administration and other licensing
requirements and regulation.
Our international subsidiaries are often required to be licensed when
entering new markets or starting new operations in certain
jurisdictions. The licensure requirements for these subsidiaries vary by
country and are subject to change.
Other Federal and State Regulations

Employee Retirement Income Security Act and the
Public Health Service Act
Our domestic subsidiaries sell most of their products and services to
sponsors of employee benefit plans that are governed by the Employee
Retirement Income Security Act of 1974, as amended (ERISA).
ERISA is a complex set of federal laws and regulations enforced by the
IRS and the Department of Labor, as well as the courts. Our domestic
subsidiaries are subject to requirements imposed by ERISA affecting
claim payment and appeals procedures for individual health insurance
and insured and self-insured group health plans and for the insured
dental, disability, life and accident plans we administer. Our domestic
subsidiaries also may contractually agree to comply with these
requirements on behalf of the self-insured dental, disability, life and
accident plans they administer.
Many provisions of Health Care Reform impacting insured and
self-insured group health plans were incorporated into ERISA. The
health insurance reform provisions under ERISA were also
incorporated into the Public Health Service Act and are directly
applicable to health insurance issuers (i.e., health insurers and
HMOs).
Plans subject to ERISA also can be subject to state laws and the legal
question of whether and to what extent ERISA preempts a state law
has been, and will continue to be, subject to court interpretation.
PART I
ITEM 1. Business
Medicare Regulations
Several of our subsidiaries engage in businesses that are subject to
federal Medicare regulations, such as:
those offering individual and group Medicare Advantage (HMO)
coverage;
those offering Medicare Pharmacy (Part D) products that are subject
to federal Medicare regulations; and
billing of Medicare Part B claims on behalf of providers with whom
we have contractual management agreements.
In our Medicare Advantage business, we contract with CMS to
provide services to Medicare beneficiaries pursuant to the Medicare
program. As a result, our right to obtain payment (and the
determination of the amount of such payments), enroll and retain
members and expand into new service areas is subject to compliance
with CMS numerous and complex regulations and requirements that
are frequently modified and subject to administrative discretion.
Marketing and sales activities (including those of third-party brokers
and agents) are also heavily regulated by CMS and other
governmental agencies, including applicable state departments of
insurance. We will continue to allocate significant resources to our
compliance, ethics and fraud and waste and abuse programs to
comply with the laws and regulations governing Medicare Advantage
and prescription drug plan programs.
Several of our subsidiaries are also subject to reporting requirements
pursuant to Section 111 of the Medicare, Medicaid and SCHIP
Extension Act of 2007.
Federal Audits of Government Sponsored Health Care

Programs
Participation in government sponsored health care programs subjects
us to a variety of federal laws and regulations and risks associated with
audits conducted under these programs. These audits may occur in
years subsequent to our providing the relevant services under audit.
These risks may include reimbursement claims as well as potential
fines and penalties. For example, with respect to our Medicare
Advantage business, CMS and the OIG perform audits to determine a
health plans compliance with federal regulations and contractual
obligations, including compliance with proper coding practices
(sometimes referred to as Risk Adjustment Data Validation Audits
or RADV audits) and compliance with fraud and abuse
enforcement practices through Recovery Audit Contractor (RAC)
audits in which third-party contractors conduct post-payment reviews
on a contingency fee basis to detect and correct improper payments.
See Business Global Health Care beginning on page 3 of this
Form 10-K for additional information about our participation in
government health-related programs.
The federal government has made investigating and prosecuting
health care fraud and abuse a priority. Fraud and abuse prohibitions
encompass a wide range of activities, including kickbacks for referral
of customers, billing for unnecessary medical services, improper
marketing, and violation of patient privacy rights. The regulations
and contractual requirements in this area are complex, are frequently
modified, and are subject to administrative discretion. We expect to
continue to allocate significant resources to comply with these

regulations and requirements and to maintain audit readiness.
Privacy, Security and Data Standards Regulations

The federal Health Insurance Portability and Accountability Act of
1996 and its implementing regulations (HIPAA) imposes minimum
standards on health insurers, HMOs, health plans, health care
providers and clearinghouses for the privacy and security of protected
health information. HIPAA also established rules that standardize the
format and content of certain electronic transactions, including, but
not limited to, eligibility and claims. Effective October 2015, entities
subject to HIPAA were required to update their transaction formats
for electronic data interchange standards and convert to new ICD-10
diagnosis and procedure codes.
HIPAAs privacy and security requirements were expanded by the
Health Information Technology for Economic and Clinical Health
Act (HITECH) through additional contracting requirements for
covered entities, the extension of privacy and security provisions to
business associates, the requirement to provide notification to various
parties in the event of a data breach of protected health information,
and enhanced financial penalties for HIPAA violations, including
potential criminal penalties for individuals.
The federal Gramm-Leach-Bliley Act generally places restrictions on
the disclosure of non-public information to non-affiliated third
parties, and requires financial institutions, including insurers, to
provide customers with notice regarding how their non-public
personal information is used, including an opportunity to opt out of
certain disclosures. State departments of insurance and certain federal
agencies adopted implementing regulations as required by federal law.
A number of states have adopted data security laws and regulations,
regulating data security and requiring security breach notification that
may apply to us in certain circumstances. Neither HIPAA nor the
Gramm-Leach-Bliley privacy regulations preempt more stringent state
laws and regulations.
Consumer Protection Laws

We engage in direct-to-consumer activities and are increasingly
offering mobile and web-based solutions to our customers. We are
therefore subject to federal and state regulations applicable to
electronic communications and other consumer protection laws and
regulations, such as the Telephone Consumer Protection Act and the
CAN-SPAM Act. In particular, the Federal Trade Commission is
increasingly exercising its enforcement authority in the areas of
consumer privacy and data security, with a focus on web-based,
mobile data.
Dodd-Frank Act and Investment-Related Regulations

The Dodd-Frank Wall Street Reform and Consumer Protection Act
(the Dodd-Frank Act) provides for a number of reforms and
regulations in the corporate governance, financial reporting and
disclosure, investments, tax and enforcement areas. The Dodd-Frank
Act established a Federal Insurance Office (the FIO) to develop
federal policy on insurance matters. While the FIO does not have
authority over health insurance, it may have authority over other parts
of our business, such as life insurance. Additional rulemaking by the
PART I
ITEM 1. Business
SEC and other regulatory authorities continues. We are closely

monitoring how these regulations might impact us; however, the full
impact may not be known for several years until regulations become
fully effective.
Depending upon their nature, our investment management activities
are subject to U.S. federal securities laws, ERISA and other federal and
state laws governing investment related activities. In many cases, the
investment management activities and investments of individual
insurance companies are subject to regulation by multiple
jurisdictions.
Office of Foreign Assets Control Sanctions and

Anti-Money Laundering
We also are subject to regulation by the Office of Foreign Assets
Control of the Department of the Treasury that administers and
enforces economic and trade sanctions based on U.S. foreign policy
and national security goals against targeted foreign countries and
regimes.
Certain of our products are subject to Department of the Treasury
anti-money laundering regulations under the Bank Secrecy Act.
In addition, we may be subject to similar regulations in non-U.S.
jurisdictions in which we operate.
Antitrust Regulations
Federal and state antitrust regulators, such as the Department of
Justice and state attorneys general, are reviewing the proposed merger
with Anthem. In addition, our subsidiaries also engage in activities
that may be scrutinized under federal and state antitrust laws and
regulations. These activities include the administration of strategic
alliances with competitors, information sharing with competitors and
provider contracting.
International Regulations
Our operations outside the United States expose us to laws of multiple
jurisdictions and the rules and regulations of various governing bodies
and regulators, including those related to financial and other
disclosures, corporate governance, privacy, data protection, data
mining, data transfer, intellectual property, labor and employment,
consumer protection, direct-to-consumer communications activities,
anti-corruption and anti-money laundering. Foreign laws and rules
may include requirements that are different from or more stringent
than similar requirements in the United States.
Our operations in countries outside the United States:
are subject to local regulations of the jurisdictions in which our
subsidiaries conduct business,
in some cases, are subject to regulations in the locations of
customers, and
in all cases, are subject to the FCPA.
The FCPA prohibits offering, promising, providing or authorizing
others to give anything of value to a foreign government official or
employee to obtain or retain business or otherwise secure a business
advantage. In many countries outside of the United States, health care
professionals are employed by the government. Violations of the
FCPA and other anti-corruption laws may result in severe criminal
and civil sanctions as well as other penalties, and the SEC and
Department of Justice have increased their enforcement activities with
respect to FCPA. The UK Bribery Act of 2010 applies to all
companies with a nexus to the United Kingdom. Under this act, any
voluntary disclosures of FCPA violations may be shared with United
Kingdom authorities, thus potentially exposing companies to liability
and potential penalties in multiple jurisdictions.
If our employees or agents fail to comply with applicable laws
governing our international operations, we may face investigations,
prosecutions and other legal proceedings and actions that could result
in civil penalties, administrative remedies and criminal sanctions. See
the Risk Factors section beginning on page 19 for a discussion of risks
related to our global operations.
Miscellaneous
Premiums and fees from CMS represented 21% of our total
consolidated revenues for the year ended December 31, 2015 under a
number of contracts. We are not dependent on business from one or a
few customers. Other than CMS, no one customer accounted for
10% or more of our consolidated revenues in 2015. We are not
dependent on business from one or a few brokers or agents. In
addition, our insurance businesses are generally not committed to
accept a fixed portion of the business submitted by independent

brokers and agents, and generally all such business is subject to
approval and acceptance.
We had approximately 39,300 employees as of December 31, 2015;
37,200 employees as of December 31, 2014; and 36,500 employees as
of December 31, 2013.
PART I
ITEM 1A. Risk Factors
Item 1A. Risk Factors
increasing operating costs through the imposition of new regulatory

requirements, increased taxes and other financial assessments;
As a large company operating in a complex industry, we encounter a

variety of risks and uncertainties that could have a material adverse effect
on our business, liquidity, results of operations or financial condition. You
should carefully consider each of the risks and uncertainties discussed
below, in Managements Discussion and Analysis of Results of Operations
and Financial Condition and information contained elsewhere in this
Annual Report on Form 10-K. These risks and uncertainties are not the
only ones we face. Additional risks and uncertainties not presently known
to us or that we currently believe to be immaterial may also adversely affect
us.
restricting our ability to increase premium rates to meet costs

(including denial or delays in approval and implementation of those
rates);
Our business is subject to substantial government

regulation, as well as new laws or regulations or
changes in existing laws or regulations that could
have a material adverse effect on our business, results
of operations, financial condition and liquidity.
Specifically, in the United States, significant changes are occurring in

the health care system as a result of Health Care Reform. Substantially
all of the key provisions of Health Care Reform are now effective.
While federal agencies have published interim and final regulations
with respect to certain requirements, many issues remain uncertain. It
is difficult to predict the continuing impact of Health Care Reform on
our business due to the political environment, the continuing
development of implementing regulations and interpretive guidance,
legal challenges and possible future legislative changes. We are unable
to predict how these events will develop and what impact they will
have on Health Care Reform, and in turn, on our business including,
but not limited to, our relationships with current and future
customers, producers and health care providers, products, services,
processes and technology.
Our business is regulated at the federal, state, local and international

levels. The laws and rules governing our business and related
interpretations, including, among others, those associated with
Health Care Reform, are increasing in number and complexity, are
subject to frequent change and can be inconsistent or in conflict with
each other. As a public company with global operations, we are subject
to the laws of multiple jurisdictions and the rules and regulations of
various governing bodies, such as those related to financial and other
disclosures, corporate governance, privacy, data protection, labor and
employment, consumer protection, tax and anti-corruption.
We must identify, assess and respond to new trends in the legislative
and regulatory environment, as well as comply with the various
existing regulations applicable to our business. Existing or future laws,
rules, regulatory interpretations or judgments could force us to change
how we conduct our business, restrict revenue and enrollment growth,
increase health care, technology and administrative costs including
capital requirements, and require enhancements to our compliance
infrastructure and internal controls environment. Existing or future
laws and rules also could require us to take other actions such as
changing our business practices, thereby increasing our liability in
federal and state courts for coverage determinations, contract
interpretation and other actions.
In the foreseeable future, the impact of existing regulations and future
regulatory and legislative changes could materially adversely affect our
business, results of operations, financial condition and cash flows by,
among other things:
reducing the potential for growth in revenues and customers by
disrupting the employer-based market (currently the primary
market for our Commercial operating segment) if employers cease
to offer health care coverage for their employees;
restricting revenue, premium and customer growth in certain
products and markets or expansion into new markets;
increasing health care or other benefit costs through enhanced or
guaranteed coverage requirements;
limiting the level of margin we can earn on premiums through

mandated minimum medical loss ratios and required rebates in the
event we do not meet mandated minimum ratios;
restricting our ability to participate in and derive revenue from
government-sponsored programs; and
significantly reducing the level of Medicare program payments.
Further, if we fail to effectively implement or adjust our strategic and

operational initiatives, such as by reducing operating costs, adjusting
premium pricing or benefit design or transforming our business
model in response to Health Care Reform and any other future
legislative or regulatory changes, this failure may have a material
adverse effect on our results of operations, financial condition and
cash flows, including, but not limited to, our ability to maintain the
value of our goodwill and other intangible assets.
Our insurance and HMO subsidiaries must be licensed by and are
subject to the regulations of the jurisdictions in which they conduct
business. For example, health maintenance organizations and
insurance companies are regulated under specific state laws and
regulations and other health care-related regulations. State regulations
mandate minimum capital or restricted cash reserve requirements and
subject us to assessments under guaranty fund laws and related
regulations for certain obligations to claimants of insolvent insurance
companies that would expose our business to the risk of insolvency of
a competitor in these states. We also participate in the emerging
private exchange marketplace. The extent to which states may issue
regulations that apply to private exchanges remains uncertain.
In addition to the regulations discussed above, we are required to
obtain and maintain insurance and other regulatory approvals to
market many of our products, increase prices for certain regulated
products and consummate some of our acquisitions and dispositions.
Delays in obtaining or failure to obtain or maintain these approvals
could reduce our revenue or increase our costs.
PART I
The health care industry is also regularly subject to negative media

attention, including as a result of the political environment and the
ongoing debate concerning Health Care Reform. Such publicity may
adversely affect our stock price and reputation in certain markets.
For more information on regulation, see Business Regulation in
Part I, Item 1 of this Form 10-K. See also the description of Health
Care Reforms minimum medical loss ratio and customer rebate
requirements in the Business Global Health Care section
beginning on page 3 of this Form 10-K.
We face price competition and other pressures that

could result in premiums that are insufficient to
cover the cost of the health care services delivered to
our customers and inadequate medical claims
reserves.
While health plans compete on the basis of many service and qualityrelated factors, we expect that price will continue to be a significant
basis of competition. Our client and customer contracts are subject to
negotiation as clients and customers seek to contain their costs,
including by reducing benefits offered or elected. Alternatively, our
clients and customers may purchase different types of products that
are less profitable, or move to a competitor to obtain more favorable
pricing. Each of these events would likely negatively impact our
financial results.
Further, federal and state regulatory agencies may restrict our ability
to implement changes in premium rates. For example, Health Care
Reform includes an annual rate review requirement to prohibit
unreasonable rate increases in the individual and small group health
insurance markets and established minimum medical loss ratios for
certain plans. Fiscal concerns regarding the continued viability of
programs such as Medicare may cause decreasing reimbursement
rates, delays in premium payments or insufficient increases in
reimbursement rates for government-sponsored programs in which we
participate. Any limitation on our ability to maintain or increase our
premium or reimbursement levels, or a significant loss of membership
resulting from our need to increase or maintain premium or
reimbursement levels, could adversely affect our business, cash flows,
financial condition and results of operations.
In addition, factors such as business consolidations, strategic alliances,
legislation and marketing practices will likely continue to create
pressure to contain or otherwise restrict premium price increases,
despite increasing medical costs. For example, the Gramm-LeachBliley Act gives banks and other financial institutions the ability to be
affiliated with insurance companies. This may lead to new
competitors with significant financial resources. Our product margins
and growth depend, in part, on our ability to compete effectively in
our markets, set rates appropriately in highly competitive markets to
keep or increase our market share, increase membership as planned,
and avoid losing accounts with favorable medical cost experience
while retaining or increasing membership in accounts with
unfavorable medical cost experience.
Premiums in the health care business are generally set for one-year
periods and are priced well in advance of the date on which the
contract commences. Our revenue on Medicare policies is based on
bids submitted mid-year in the year before the contract year. Although
we base the premiums we charge and our Medicare bids on our
estimate of future health care costs over the contract period, actual
costs may exceed what we estimate and charge in premiums due to
factors such as medical cost inflation, higher than expected utilization
of medical services, new or costly drugs, treatments and technology,
and membership mix. Our health care costs also are affected by
external events that we cannot forecast or project and over which we
have little or no control, such as influenza-related health care costs,
epidemics, pandemics, terrorist attacks or other man-made disasters,
natural disasters or other events that materially increase utilization of
medical and/or other covered services, as well as changes in members
health care utilization patterns and provider billing practices. Our
profitability depends, in part, on our ability to accurately predict,
price for and effectively manage future health care costs through
underwriting criteria, provider contracting, utilization management
and product design.
We record medical claims reserves on our balance sheet for estimated
future payments. While we continually review estimates of future
payments relating to medical claims costs for services incurred in the
current and prior periods and make adjustments to our reserves, the
actual health care costs may exceed the reserves we have recorded.
Future performance of our business will depend on

our ability to execute our strategic and operational
initiatives effectively.
The future performance of our business will depend in large part on
our ability to effectively implement and execute our strategic and
operational initiatives including: (1) driving growth in targeted
geographies, product lines, customer buying segments and
distribution channels; (2) improving our strategic and financial
flexibility; and (3) pursuing additional opportunities in high-growth
markets. Successfully executing these initiatives depends on a number
of factors, including our ability to:
differentiate our products and services from those of our
competitors;
develop and introduce new products or programs, particularly in
response to government regulation and the increased focus on
consumer-directed products;
grow our commercial product portfolio, including managing the
uncertainties associated with mix and volume of business on public
health insurance exchanges;
identify and introduce the proper mix or integration of products
that will be accepted by the marketplace;
attract and retain sufficient numbers of qualified employees;
attract, develop and maintain collaborative relationships with a
sufficient number of qualified partners, including physicians and
other health care providers in an environment of growing shortages
of primary care professionals and consolidation within the provider
industry;
attract new and maintain existing customer relationships;
PART I
transition health care providers from volume-based fee for service

arrangements to a value-based system;
degree than in the U.S., and therefore subject us to disputes by

customers, governmental authorities or others.
improve medical cost competitiveness in targeted markets;
Court decisions and legislative activity may increase our exposure for
any of these types of claims. In some cases, substantial non-economic
or punitive damages may be sought. We seek to procure insurance
coverage to cover some of these potential liabilities. However, certain
potential liabilities may not be covered by insurance, insurers may
dispute coverage or the amount of insurance may be insufficient to
cover the entire damages awarded. In addition, certain types of
damages, such as punitive damages, may not be covered by insurance,
and insurance coverage for all or certain forms of liability may become
unavailable or prohibitively expensive in the future. It is possible that
the resolution of current or future legal matters and claims could
result in losses material to our results of operations, financial
condition and liquidity.
manage our medical and administrative costs effectively;

manage our balance sheet exposures effectively, including our
pension funding obligations; and
reduce our Global Health Care operating expenses to achieve
sustainable benefits.
If these initiatives fail or are not executed effectively, it could harm our
consolidated financial position and results of operations. For example,
efforts to reduce operating expenses while maintaining the necessary
resources and talent pool are important and, if not managed
effectively, could have long-term effects on our business by negatively
impacting our ability to drive improvements in the quality of our
products and/or services. For our strategic initiatives to succeed, we
must effectively integrate our operations, including our acquired
businesses, actively work to ensure consistency throughout the
organization, and promote a global mind-set and a focus on
individual customers. If we fail to do so, our business may be unable
to grow as planned, or the result of expansion may be unsatisfactory.
In addition, the current competitive, economic and regulatory
environment requires our organization to adapt rapidly and nimbly to
new opportunities and challenges. We will be unable to do so if we do
not make important decisions quickly, define our appetite for risk
specifically, implement new governance, managerial and
organizational processes smoothly and communicate roles and
responsibilities clearly.
We face risks related to litigation, regulatory audits

and investigations.
We are routinely involved in numerous claims, lawsuits, regulatory
audits, investigations and other legal matters arising in the ordinary
course of business, including that of administering and insuring
employee benefit programs. These could include benefit claims,
breach of contract actions, tort claims, claims disputes under federal
or state laws and disputes regarding reinsurance arrangements,
employment and employment discrimination-related suits, antitrust
claims, employee benefit claims, wage and hour claims, tax, privacy,
intellectual property and whistle blower claims and real estate
disputes. In addition, we have incurred and likely will continue to
incur liability for practices and claims related to our health care
business, such as marketing misconduct, failure to timely or
appropriately pay for or provide health care, provider network
structure, poor outcomes for care delivered or arranged, provider
disputes including disputes over compensation or contractual
provisions, and claims related to our administration of self-funded
business. There are currently, and may be in the future, attempts to
bring class action lawsuits against the industry or, absent a class action,
individual plaintiffs may bring multiple claims regarding the same
subject matter against us and other companies in our industry.
With respect to our global operations, contractual rights, laws and
regulations may be subject to interpretation or uncertainty to a greater
We are frequently the subject of regulatory market conduct and other

reviews, audits and investigations by state insurance and health and
welfare departments, attorneys general, CMS and the OIG and
comparable authorities in foreign jurisdictions. With respect to our
Medicare Advantage business, CMS and OIG perform audits to
determine a health plans compliance with federal regulations and
contractual obligations, including compliance with proper coding
practices and fraud and abuse enforcement practices through audits
designed to detect and correct improper payments. There also
continues to be heightened review by federal and state regulators of
business and reporting practices within the health care and disability
insurance industry and increased scrutiny by other state and federal
governmental agencies (such as state attornies general) empowered to
bring criminal actions in circumstances that could have previously
given rise only to civil or administrative proceedings. These regulatory
audits or reviews or actions by other governmental agencies could
result in changes to our business practices, retroactive adjustments to
certain premiums, significant fines, penalties, civil liabilities, criminal
liabilities or other sanctions, including restrictions on our ability to
market certain products or engage in business-related activities, that
could have a material adverse effect on our business, results of
operation, financial condition and liquidity.
In January 2016, CMS issued to the Company a Notice of Imposition
of Immediate Intermediate Sanctions (the Notice). The Notice
requires the Company to suspend certain enrollment and marketing
activities for its Medicare Advantage-Prescription Drug and Medicare
Part D Plans. The Company is working to resolve these matters as
quickly as possible. If, however, the Company is not able to address
matters arising from the Notice in a timely and satisfactory manner, or
if there are any changes in eligibility for government payments for our
programs that are not resolved in a timely and satisfactory manner, the
impact to our 2017 Medicare customer base and consolidated
revenues, results of operations and cash flows could be material.
A description of material pending legal actions and other legal and
regulatory matters is included in Note 23 to our Consolidated
Financial Statements included in this Form 10-K. The outcome of
litigation and other legal or regulatory matters is always uncertain, and
outcomes that are not justified by the evidence or existing law can
occur.
PART I
There are various risks associated with participating

in government-sponsored programs, such as Medicare,
including dependence upon government funding,
changes occurring as a result of Health Care Reform,
compliance with government contracts and increased
regulatory oversight.
Through our Government business, we contract with CMS and
various state governmental agencies to provide managed health care
services including Medicare Advantage plans and Medicare-approved
prescription drug plans. Revenues from Medicare programs are
dependent, in whole or in part, upon annual funding from the federal
government through CMS and/or applicable state or local
governments. Funding for these programs is dependent on many
factors outside our control including general economic conditions,
continuing government efforts to contain health care costs and
budgetary constraints at the federal or applicable state or local level
and general political issues and priorities. These entities generally have
the right to not renew or cancel their contracts with us on short notice
without cause or if funds are not available. Unanticipated changes in
funding, such as the application of sequestration by the federal or state
governments, could substantially reduce our revenues and
profitability.
The Medicare program has been the subject of regulatory reform
initiatives, including Health Care Reform. The premium rates paid to
Medicare Advantage plans are established by contract, although the
rates differ depending on a combination of factors, many of which are
outside our control. Health Care Reform ties a portion of each
Medicare Advantage plans reimbursement to the plans star rating
by CMS, with those plans receiving a rating of three or more stars
eligible for quality-based bonus payments. The star rating system
considers various measures adopted by CMS, including, among other
things, quality of care, preventative services, chronic illness
management and customer satisfaction. Beginning in 2015, plans
must have a star rating of four or higher to qualify for bonus
payments. Our Medicare Advantage plans operating results, premium
revenue and benefit offerings are likely to continue to be significantly
determined by their star ratings. If we do not maintain or continue to
improve our star ratings, our plans may not be eligible for full-level
quality bonuses. That outcome could adversely affect the benefits that
our plans can offer as well as reduce our customer base and/or
margins.
Contracts with CMS and the various state governmental agencies
contain certain provisions regarding data submission, provider
network maintenance, quality measures, claims payment, continuity
of care, call center performance and other requirements. If we fail to
comply with these requirements, we may be subject to fines or other
penalties that could impact our profitability.
Health Care Reform required establishing health insurance exchanges
for individuals and small employers. Insurers participating on the
health insurance exchanges are required to offer a minimum level of
benefits and comply with requirements with respect to premium rates
and coverage limitations. Our participation in these exchanges
involves uncertainties associated with mix and volume of business and
could adversely affect our results of operations, financial position and
cash flows. In addition, the risk corridor, reinsurance, and risk

adjustment provisions of Health Care Reform, established to
apportion risk for insurers, may not be effective in appropriately
mitigating the financial risks related to our products. For example,
there continues to be uncertainty around CMS ability to pay risk
corridor receivables. In October 2015, CMS announced it would pay
approximately 13% of insurers 2014 coverage year risk corridor
receivables. The appropriations bill signed by President Obama in
December 2015 again restricts the sources of funding HHS may use
to make risk corridor payments.
In addition, any failure to comply with various state and federal health
care laws and regulations, including those directed at preventing fraud
and abuse in government funded programs, could result in
investigations or litigation, such as actions under the federal False
Claims Act and similar whistleblower statutes under state laws. This
could subject us to fines, limits on expansion, restrictions or
exclusions from programs or other agreements with federal or state
governmental agencies that could adversely impact our business, cash
flows, financial condition and results of operations.
In addition, our Medicare Advantage and Medicare prescription drug
businesses face a number of other risks including potential
uncollectible receivables resulting from processing and/or verifying
enrollment, inadequate underwriting assumptions, inability to receive
and process correct information or increased medical or
pharmaceutical costs. Actual results may be materially different than
our assumptions and estimates regarding these complex and
wide-ranging programs that could have a material adverse effect on
our business, financial condition and results of operations.
If we fail to develop and maintain satisfactory

relationships with physicians, hospitals and other
health care providers, our business and results of
operations may be adversely affected.
We directly and indirectly contract with physicians, hospitals and
other health care professionals and facilities for the provision of health
care services to our customers. Our results of operations are
substantially dependent on our ability to contract for these services at
competitive prices. In any particular market, physicians, hospitals and
health care providers could refuse to contract, demand higher
payments or take other actions that could result in higher medical
costs or less desirable products for our customers. In some markets,
certain providers, particularly hospitals, physician/hospital
organizations and multi-specialty physician groups, may have
significant or controlling market positions that could result in a
diminished bargaining position for us. If providers refuse to contract
with us, use their market position to negotiate favorable contracts or
place us at a competitive disadvantage, our ability to market products
or to be profitable in those areas could be materially and adversely
affected.
Our ability to develop and maintain satisfactory relationships with
health care providers also may be negatively impacted by other factors
not associated with us, such as changes in Medicare and/or Medicaid
reimbursement levels, increasing revenue and other pressures on
health care providers and consolidation activity among hospitals,
physician groups and health care providers. For example, ongoing
PART I
reductions by CMS and state governments in amounts payable to

providers, particularly hospitals, for services provided to Medicare and
Medicaid enrollees may exacerbate the cost shift to private payors,
thereby adversely impacting our ability to maintain or develop new
cost-effective health care provider contracts or result in a loss of
revenues or customers.
Recent and continuing consolidation among physicians, hospitals and
other health care providers, development of accountable care
organizations and other changes in the organizational structures that
physicians, hospitals and health care providers choose may change the
way these providers interact with us and may change the competitive
landscape in which we operate. In some instances, these organizations
may compete directly with us, potentially affecting the way that we
price our products or causing us to incur increased costs if we change
our operations to be more competitive. Our focus on developing
collaborative accountable care organizations and independent practice
associations or similar business arrangements with physicians and
other health care providers may not achieve intended benefits that
could adversely affect our strategy or prospects.
Out-of-network providers are not limited in the amount they bill by
any agreement with us. While benefit plans place limits on the
amount of charges that will be considered for reimbursement, such
limitations can be difficult to enforce. As a result, the outcome of
disputes where we do not have a provider contract may cause us to pay
higher medical or other benefit costs than we projected.
We are dependent on the success of our relationships

with third parties for various services and functions,
including, but not limited to, certain pharmacy
benefit management services.
To improve operating costs, productivity and efficiencies, we contract
with third parties for the provision of specific services, such as
pharmacy benefit management services, information technology,
medical management services, call center and claim services. Our
operations may be adversely affected if these third parties fail to satisfy
their obligations to us or if the arrangement is terminated in whole or
in part or if there is a contractual dispute between us and these third
parties. Even though contracts are intended to provide certain
protections, we have limited control over the actions of third parties.
For example, noncompliance with any privacy or security laws and
regulations or any security breach involving one of our third-party
vendors or a dispute between us and a third party vendor related to
our arrangement could have a material adverse effect on our business,
results of operations, financial condition, liquidity and reputation. In
addition, with respect to services or functions outsourced to third
parties in foreign jurisdictions, we also are exposed to risks inherent in
conducting business outside of the United States.
Outsourcing also may require us to change our existing operations,
adopt new processes for managing these service providers and/or
redistribute responsibilities to realize the potential productivity and
operational efficiencies. If there are delays or difficulties in changing
business processes or our third party vendors do not perform as
expected, we may not realize, or not realize on a timely basis, the
anticipated economic and other benefits of these relationships. This
could result in substantial costs or regulatory compliance issues, divert
managements attention from other strategic activities, negatively

affect employee morale or create other operational or financial
problems for us. Terminating or transitioning in whole or in part
arrangements with key vendors could result in additional costs or
penalties, risks of operational delays or potential errors and control
issues during the termination or transition phase. We may not be able
to find an alternative vendor in a timely manner or on acceptable
terms. If there is an interruption in business or loss of access to data
resulting from a termination or transition in services, we may not be
able to meet the demands of our customers and, in turn, our business
and results of operations could be adversely impacted.
Acquisitions, joint ventures and other transactions

involve risks and we may not realize the expected
benefits because of integration difficulties,
underperformance relative to our expectations and
other challenges.
As part of our growth strategy, we regularly consider and enter into
strategic transactions, including mergers, acquisitions, joint ventures,
licensing arrangements and other relationships (collectively referred to
as transactions), with the expectation that these transactions will
result in various benefits. Our ability to achieve the anticipated
benefits of these transactions is subject to numerous uncertainties and
risks, including our ability to integrate operations, resources and
systems in an efficient and effective manner. We could also face
challenges in implementing business plans; changes in laws and
regulations or conditions imposed by regulations applicable to the
business; retaining key employees; and general competitive factors in
the marketplace. These events could result in increased costs,
decreases in expected revenues, earnings or cash flow, and goodwill or
other intangible asset impairment charges. Further, we may finance
transactions by issuing common stock for some or all of the purchase
price that could dilute the ownership interests of our shareholders, or
by incurring additional debt that could impact our ability to access
capital in the future.
In addition, effective internal controls are necessary to provide reliable
and accurate financial reports and to mitigate the risk of fraud. The
integration of businesses is likely to cause increasing complexity in our
systems and internal controls and make them more difficult to
manage. Any difficulties in assimilating businesses into our control
system could cause us to fail to meet our financial reporting
obligations. Ineffective internal controls also could cause investors to
lose confidence in our reported financial information that could
negatively impact the trading price of our stock and our access to
capital.
As a global company, we face political, legal,

operational, regulatory, economic and other risks
that present challenges and could negatively affect
our multinational operations and/or our long-term
growth.
As a global company, our business is increasingly exposed to risks
inherent in foreign operations. These risks can vary substantially by
market, and include political, legal, operational, regulatory, economic
PART I
and other risks, including government intervention that we do not

face in our U.S. operations. The global nature of our business and
operations may present challenges including, but not limited to, those
arising from:
varying regional and geopolitical business conditions and demands;
regulation that may discriminate against U.S. companies, favor
nationalization or expropriate assets;
price controls or other pricing issues and exchange controls or other
restrictions that prevent us from transferring funds from these
operations out of the countries in which we operate or converting
local currencies that our foreign operations hold into U.S. dollars or
other currencies;
foreign currency exchange rates and fluctuations that may have an
impact on the future costs or on future sales and cash flows from our
international operations, and any measures that we may implement
may not be effective in reducing the effect of volatile currencies and
other risks of our international operations;
our reliance on local sales forces for some operations in countries
that may have labor problems and/or less flexible employee
relationships that can be difficult and expensive to terminate, or
where changes in local regulation or law may disrupt business
operations;
effectively managing our partner relationships in countries outside
of the United States;
managing more geographically diverse operations and projects;
operating in new foreign markets that may require considerable
management time before operations generate any significant
revenues and earnings;
the need to provide data protection on a global basis and sufficient
levels of technical support in different locations;
political instability or acts of war, terrorism, natural disasters or
pandemics in locations where we operate; and
general economic and political conditions.
These factors may increase in significance as we continue to expand
globally, and any one of these challenges could negatively affect our
operations or long-term growth. For example, due to the
concentration of our international business in South Korea, the
Global Supplemental Benefits segment is exposed to potential losses
resulting from economic, regulatory and geopolitical developments in
that country, as well as foreign currency movements affecting the
South Korean currency, that could have a significant impact on the
segments results and our consolidated financial results.
International operations also require us to devote significant resources
to implement controls and systems in new markets to comply, and to
ensure that our vendors and partners comply, with U.S. and foreign
laws prohibiting bribery, corruption and money laundering, in
addition to other regulations regarding, among other things, our
products, direct-to-consumer communications, customer privacy and
data protection. Violations of these laws and regulations could result
in fines, criminal sanctions against us, our officers or employees,
restrictions or outright prohibitions on the conduct of our business,

and significant reputational harm. We must regularly reassess the size,
capability and location of our global infrastructure and make
appropriate changes, and must have effective change management
processes and internal controls in place to address changes in our
business and operations. Our success depends, in part, on our ability
to anticipate these risks and manage these difficulties. Our failure to
comply with laws and regulations governing our conduct outside the
United States or to establish constructive relations with non-U.S.
regulators could have a material adverse effect on our business, results
of operations, financial condition, liquidity and long-term growth.
Our business depends on our ability to effectively

invest in, implement improvements to and properly
maintain the uninterrupted operation and data
integrity of our information technology and other
business systems.
Our business is highly dependent on maintaining both effective
information systems and the integrity and timeliness of the data we
use to serve our customers and health care professionals and to operate
our business. If our data were found to be inaccurate or unreliable due
to fraud or other error, or if we or our third-party service providers
were to fail to maintain information systems and data integrity
effectively, we could experience operational disruptions that may
impact our customers and health care professionals and hinder our
ability to establish appropriate pricing for products and services, retain
and attract customers, establish reserves and report financial results
timely and accurately and maintain regulatory compliance, among
other things.
Our information technology strategy and execution are critical to our
continued success. Increasing regulatory and legislative mandated
changes will place additional demands on our information technology
infrastructure that could have a direct impact on available resources
for projects more directly tied to strategic initiatives. In addition,
recent trends toward greater consumer engagement in health care
require new and enhanced technologies including more sophisticated
applications for mobile devices. We must continue to invest in
long-term solutions that will enable us to anticipate customer needs
and expectations, enhance the customer experience, act as a
differentiator in the market and protect against cybersecurity risks and
threats. Our success is dependent, in large part, on maintaining the
effectiveness of existing technology systems and continuing to deliver
and enhance technology systems that support our business processes
in a cost-efficient and resource-efficient manner. We must also
develop new systems to meet current market standards and keep pace
with continuing changes in information processing technology,
evolving industry and regulatory standards and customer needs.
Failure to do so may impede our ability to deliver services at a
competitive cost. Further, because system development projects are
long-term in nature, they may be more costly than expected to
complete and may not deliver the expected benefits upon completion.
In addition, our business is highly dependent upon our ability to
perform in an efficient and uninterrupted fashion, necessary business
functions, such as claims processing and payment, internet support
and customer call centers, and processing new and renewal business.
PART I
Unavailability, cyber-attack or other failure of one or more of our

information technology or other systems could cause slower response
times, resulting in claims not being processed as quickly as clients or
customers desire, decreased levels of client or customer service and
satisfaction, and harm to our reputation. Because our information
technology and other systems interface with and depend on thirdparty systems, we could experience service denials if demand for such
service exceeds capacity or a third-party system fails or experiences an
interruption. If sustained or repeated, such business interruptions,
systems failures or service denials could have material adverse effects
on our business, results of operations, financial condition and
liquidity.
As a large health services company, we are subject to

cyber-attacks. If we are unable to prevent or contain
the effects of any such attacks, we may suffer
exposure to substantial liability, reputational harm,
loss of revenue or other damages.
Our business depends on our clients and customers willingness to
entrust us with their health-related and other sensitive personal
information. Computer systems may be vulnerable to physical
break-ins, computer viruses or malware, programming errors, attacks
by third parties or similar disruptive problems. We have been, and will
likely continue to be, the target of computer viruses or other malicious
codes, unauthorized access, cyber-attacks or other computer-related
penetrations. As we increase the amount of personal information that
we store and share digitally, our exposure to data security and related
cybersecurity risks increases including the risk of undetected attacks,
damage, loss or unauthorized access or misappropriation of
proprietary or personal information, and the cost of attempting to
protect against these risks also increases. We have implemented
security technologies, processes and procedures to protect consumer
identity; however, there are no assurances that such measures will be
effective against all types of breaches. The techniques used change
frequently or are often not recognized until launched, because cyberattacks can originate from a wide variety of sources including third
parties such as external service providers. Those parties may also
attempt to fraudulently induce employees, customers or other users of
our systems to disclose sensitive information in order to gain access to
our data or that of our customers. In addition, while we have certain
standards for all vendors that provide us services, our vendors, and in
turn, their own service providers, may become subject to a security
breach as a result of their failure to perform in accordance with
contractual arrangements.
The costs to eliminate or address security threats and vulnerabilities
before or after a cyber-incident could be significant. Our remediation
efforts may not be successful and could result in interruptions, delays,
or cessation of service and loss of existing or potential customers.
In addition, breaches of our security measures and the unauthorized
dissemination of sensitive personal information or proprietary
information or confidential information about us, our customers or
other third-parties could expose our customers private information
and our customers to the risk of financial or medical identity theft.
Unauthorized dissemination of confidential and proprietary
information about our business and strategy also could negatively
affect the achievement of our strategic initiatives. The occurrence of

such events would also negatively affect our ability to compete, others
trust in us, our reputation, membership and revenues and expose us to
mandatory disclosure to the media, litigation and other enforcement
proceedings, material fines, penalties and/or remediation costs, and
compensatory, special, punitive and statutory damages, consent orders
and other adverse actions, any of which could adversely affect our
business, results of operations, financial condition or liquidity.
If we fail to comply with applicable privacy, security,

and data laws, regulations and standards, our
business and reputation could be materially and
adversely affected.
The collection, maintenance, protection, use, transmission, disclosure
and disposal of sensitive personal information are regulated at the
federal, state, international and industry levels and requirements are
imposed on us by contracts with clients. In some cases, such laws,
rules, regulations and contractual requirements also apply to our
vendors and require us to obtain written assurances of their
compliance with such requirements or may hold us liable for any
violations by our vendors. International laws, rules and regulations
governing the use and disclosure of such information are generally
more stringent than in the United States, and they vary from
jurisdiction to jurisdiction. We also are subject to various other
consumer protection laws that regulate our communications with
customers.
These laws, rules, and contractual requirements are subject to change.
Compliance with new privacy, security and data laws, regulations and
requirements may result in increased operating costs, and may
constrain or require us to alter our business model or operations. For
example, the HITECH amendments to HIPAA may further restrict
our ability to collect, disclose and use sensitive personal information
and may impose additional compliance requirements on our business.
While we completed the transition to ICD-10, if unforeseen
circumstances arise, it is possible that we could be exposed to
investigations and allegations of noncompliance which could have a
material adverse effect on our results of operations, financial position
and cash flows. In addition, if some providers continue to use ICD-9
codes on claims, we have to reject such claims, leading to claim
resubmissions, increased call volume and provider and customer
dissatisfaction. Further, providers may use ICD-10 codes differently
than they used ICD-9 codes in the past, potentially resulting in lost
revenues under risk adjustment. If we did not adequately implement
the new ICD-10 coding set, or if providers in our network did not
adequately transition to the new ICD-10 coding set, our results of
operations, financial position and cash flows may be materially
adversely affected.
Effective prevention, detection and control systems

are critical to maintain regulatory compliance and
prevent fraud and failure of these systems could
adversely affect us.
Federal and state governments have made investigating and
prosecuting health care and other insurance fraud and abuse a priority.
Fraud and abuse prohibitions encompass a wide range of activities
PART I
including kickbacks for referral of members, billing for unnecessary

medical services, improper marketing, and violations of patient
privacy rights. The regulations and contractual requirements
applicable to us are complex and subject to change. In addition,
ongoing vigorous law enforcement, a highly technical regulatory
scheme and the Dodd-Frank Act legislation and related regulations
being adopted to enhance regulators enforcement powers and
whistleblower incentives and protections mean that our compliance
efforts in this area will continue to require significant resources.
Failure of our prevention, detection or control systems related to
regulatory compliance or the failure of employees to comply with our
internal policies including data systems security or unethical conduct
by managers and employees, could adversely affect our reputation and
also expose us to litigation and other proceedings, fines and penalties.
In addition, provider or customer fraud that is not prevented or
detected could impact our medical costs or those of our self-insured
customers. Further, during an economic downturn, we may
experience increased fraudulent claims volume that may lead to
additional costs due to an increase in disputed claims and litigation.
Our pharmacy benefit management business and

related operations are subject to a number of risks
and uncertainties that are in addition to those we
face in our health care business.
Notwithstanding our pharmacy benefits management services
arrangement with a third-party vendor, we remain responsible to
regulators and our clients and customers for the delivery of those
pharmacy benefit management services that we contract to provide.
This business is subject to federal and state regulation, including
federal and state anti-remuneration laws, ERISA, HIPAA and laws
related to the operation of Internet and mail-service pharmacies. In
addition, certain of our subsidiaries are pharmacies subject to state
licensing and U.S. Drug Enforcement Agency registration
requirements and laws concerning labeling, packaging, advertising
and adulteration of prescription drugs and dispensing of controlled
substances. Noncompliance with such regulations by us or our thirdparty vendor(s) could have material adverse effects on our business,
results of operations, financial condition, liquidity and reputation.
Our pharmacy benefit management business also would be adversely
affected by an inability to contract on favorable terms with
pharmaceutical manufacturers and we could suffer liability exposure
and reputational harm in connection with purported errors by mail
order or retail pharmacy businesses.
In operating onsite clinics and other types of medical

facilities, we may be subject to additional liability
that could result in significant time and expense.
In addition to contracting with physicians and other health care
providers for services, we employ physicians and other health care
professionals at onsite low acuity and primary care clinics that we
operate for our customers, as well as certain clinics for our employees.
In addition, our Government business operates LivingWell health
centers and we own and operate multispecialty health care centers, low
acuity clinics and other types of centers in the Phoenix, Arizona
metropolitan area that employ physicians and other health care

professionals. As a direct employer of health care professionals and as
an owner or operator of medical facilities, we are subject to liability for
negligent acts, omissions, or injuries occurring at one of these clinics
or caused by one of our employees. Even if any claims brought against
us are unsuccessful or without merit, we still have to defend against
such claims. The defense of any actions may result in significant
expenses that could have a material adverse effect on our business,
results of operations, financial condition, liquidity and reputation.
Significant stock market or interest rate declines

could result in additional unfunded pension
obligations resulting in the need for additional plan
funding by us and increased pension expenses.
We currently have unfunded obligations in our frozen pension plans.
A significant decline in the value of the plans equity and fixed income
investments or unfavorable changes in applicable laws or regulations
could materially increase our expenses and change the timing and
amount of required plan funding. This could reduce the cash available
to us, including our subsidiaries. We also are exposed to interest rate
and equity risk associated with our pension and other post-retirement
obligations. Sustained declines in interest rates could have an adverse
impact on the funded status of our pension plans and our
reinvestment yield on new investments. See Note 9 to our
Consolidated Financial Statements for more information on our
obligations under the pension plan.
Significant changes in market interest rates affect the

value of our financial instruments that promise a
fixed return or benefit and the value of particular
assets and liabilities.
As an insurer, we have substantial investment assets that support
insurance and contractholder deposit liabilities. Generally low levels
of interest rates on investments, such as those experienced in U.S. and
foreign financial markets during recent years, have negatively
impacted our level of investment income earned in recent periods.
Substantially all of our investment assets are in fixed interest-yielding
debt securities of varying maturities, fixed redeemable preferred
securities and commercial mortgage loans. The value of these
investment assets can fluctuate significantly with changes in market
conditions. A rise in interest rates would likely reduce the value of our
investment portfolio and increase interest expense if we were to access
our available lines of credit.
A downgrade in the financial strength ratings of our

insurance subsidiaries could adversely affect new sales
and retention of current business, and a downgrade
in our debt ratings would increase the cost of
borrowed funds and negatively affect our ability to
access capital.
Financial strength, claims paying ability and debt ratings by
recognized rating organizations are each important factors in
establishing the competitive position of insurance and health benefits
PART I
companies. Ratings information by nationally recognized ratings

agencies is broadly disseminated and generally used throughout the
industry. We believe that the claims paying ability and financial
strength ratings of our principal insurance subsidiaries are important
factors in marketing our products to certain customers. Our debt
ratings impact both the cost and availability of future borrowings, and
accordingly, our cost of capital. Each of the rating agencies reviews
ratings periodically and there can be no assurance that current ratings
will be maintained in the future. A downgrade of these ratings in the
future could make it more difficult to either market our products
successfully or raise capital to support business growth within our
insurance subsidiaries.
Global market, economic and geopolitical conditions

may cause fluctuations in equity market prices,
interest rates and credit spreads that could impact
our ability to raise or deploy capital and affect our
overall liquidity.
If the equity and credit markets experience extreme volatility and
disruption, there could be downward pressure on stock prices and
credit capacity for certain issuers without regard to those issuers
underlying financial strength. Extreme disruption in the credit
markets could adversely impact our availability and cost of credit in
the future. In addition, unpredictable or unstable market conditions
or continued pressure in the global or U.S. economy could result in
reduced opportunities to find suitable opportunities to raise capital.
As of December 31, 2015, our outstanding long-term debt totaled
$5.0 billion. In the event of adverse economic and industry
conditions, we may be required to dedicate a greater percentage of our
cash flow from operations to the payment of principal and interest on
our debt, thereby reducing the funds we have available for other
purposes, such as investments in ongoing businesses, acquisitions,
dividends and stock repurchases. In these circumstances, our ability to
execute our strategy may be limited, our flexibility in planning for or
reacting to changes in business and market conditions may be
reduced, or our access to capital markets may be limited such that
additional capital may not be available or may be available only on
unfavorable terms.
Unfavorable developments in economic conditions

may adversely affect our business, results of
operations and financial condition.
Global economic conditions continue to be challenging. Many
factors, including geopolitical issues, confidence in any economic
recoveries and any future economic downturns, availability and cost of
credit and other capital and consumer spending can negatively impact
expectations for the U.S. and global economies. Our results of
operations could be materially and adversely affected by the impact of
unfavorable economic conditions on our customers (both employers
and individuals), health care providers and third-party vendors. For
example:
Employers may take action to reduce their operating costs by
modifying, delaying or canceling plans to purchase our products or
making changes in the mix of products purchased that are

unfavorable to us.
Higher unemployment rates and workforce reductions could result
in lower enrollment in our employer-based plans (including an
increase in the number of employees who opt out of employer-based
plans) or our individual plans.
Because of unfavorable economic conditions or Health Care
Reform, employers may stop offering health care coverage to
employees or elect to offer this coverage on a voluntary, employeefunded basis as a means to reduce their operating costs.
Our historical disability claim experience and industry data indicate
that submitted disability claims rise under adverse economic
conditions.
If customers are not successful in generating sufficient profits or are
precluded from securing financing, they may not be able to pay, or
may delay payment of, accounts receivable that are owed to us.
Our customers or potential customers may force us to compete
more vigorously on factors such as price and service to retain or
obtain their business.
A prolonged unfavorable economic environment could adversely
impact the financial position of hospitals and other health care
providers, potentially increasing our medical costs as these providers
attempt to maintain revenue levels in their efforts to adjust to their
own economic challenges.
Our third-party vendors could significantly and quickly increase
their prices or reduce their output to reduce their operating costs.
Our business depends on our ability to perform necessary business
functions in an efficient and uninterrupted fashion.
These factors could lead to a decrease in our customer base, revenues
or margins and/or an increase in our operating costs.
In addition, during a prolonged unfavorable economic environment,
state and federal budgets could be materially and adversely affected,
resulting in reduced reimbursements or payments in state and federal
government programs such as Medicare and Social Security. These
state and federal budgetary pressures also could cause the government
to impose new or a higher level of taxes or assessments on us, such as
premium taxes on insurance companies and HMOs and surcharges or
fees on select fee-for-service and capitated medical claims. Although
we could attempt to mitigate or cover our exposure from such
increased costs through, among other things, increases in premiums,
there can be no assurance that we will be able to mitigate or cover all of
such costs, which may have a material adverse effect on our business,
results of operations, financial condition and liquidity.
We are subject to the credit risk of our reinsurers.

We enter into reinsurance arrangements with other insurance
companies, primarily to limit losses from large exposures or to permit
recovery of a portion of direct losses. We also may enter into
reinsurance arrangements in connection with acquisition or
divestiture transactions when the underwriting company is not being
acquired or sold.
PART I
Under all reinsurance arrangements, reinsurers assume insured losses,

subject to certain limitations or exceptions that may include a loss
limit. These arrangements also subject us to various obligations,
representations and warranties with the reinsurers. Reinsurance does
not relieve us of liability as the originating insurer. We remain liable to
the underlying policyholders if a reinsurer defaults on obligations
under the reinsurance arrangement. Although we regularly evaluate
the financial condition of reinsurers to minimize exposure to
significant losses from reinsurer insolvencies, reinsurers may become
financially unsound. If a reinsurer fails to meet its obligations under
the reinsurance contract or if the liabilities exceed any applicable loss
limit, we will be forced to cover the claims on the reinsured policies.
The collectability of amounts due from reinsurers is subject to
uncertainty arising from a number of factors, including whether the
insured losses meet the qualifying conditions of the reinsurance
contract, whether reinsurers or their affiliates have the financial
capacity and willingness to make payments under the terms of the
reinsurance contract, and the magnitude and type of collateral
supporting our reinsurance recoverable, such as by holding sufficient
qualifying assets in trusts or letters of credit issued. Although a portion
of our reinsurance exposures are secured, the inability to collect a
material recovery from a reinsurer could have a material adverse effect
on our results of operations, financial condition and liquidity.
We may not complete the proposed transaction with

Anthem within the time frame we anticipate or at
all, potentially negatively affecting our business,
financial results and operations.
On July 23, 2015, we entered into an agreement under which Anthem
will acquire all of the outstanding shares of our common stock. The
transaction is subject to a number of closing conditions, such as

antitrust and other regulatory approvals that may not be received or
may take longer than expected. The transaction is also subject to other
risks and uncertainties, including that either we or Anthem could
exercise our respective termination rights. If the transaction is not
consummated within the expected time frame, or at all, we and our
shareholders would not realize the expected benefits of the merger.
The announcement and pendency of the proposed

merger transaction with Anthem, Inc. could have an
adverse effect on our business.
The announcement and pendency of the proposed merger transaction
with Anthem could cause disruptions and create uncertainty
surrounding our business, which could affect our relationships with
our clients, customers, providers, vendors and/or employees,
regardless of whether the proposed transaction is completed. We could
also potentially lose key employees, clients and/or vendors, or our
provider arrangements could be disrupted. In addition, we have
diverted, and will continue to divert, management resources towards
the completion of the proposed transaction that may divert
managements attention and our resources from ongoing business and
operations.
We are also subject to restrictions on the conduct of our business prior
to the consummation of the transaction as provided in the merger
agreement, including, among other things, certain restrictions on our
ability to acquire other businesses, sell, transfer or license our assets,
make capital expenditures, amend our organizational documents and
incur indebtedness. These restrictions could result in our inability to
respond effectively to competitive pressures, industry developments
and future opportunities.
PART I
ITEM 1B. Unresolved Staff Comments
ITEM 1B. Unresolved Staff Comments

None.
ITEM 2. Properties
Our global real estate portfolio consists of approximately 7.8 million
square feet of owned and leased properties. Our domestic portfolio
has approximately 5.9 million square feet in 40 states, the District of
Columbia, Puerto Rico and the Virgin Islands. Our International
properties contain approximately 1.9 million square feet located
throughout the following countries: Bahrain, Belgium, Canada,
China, Hong Kong, India, Indonesia, Kenya, Malaysia, New Zealand,
Singapore, South Korea, Spain, Switzerland, Taiwan, Thailand,
Turkey, United Arab Emirates, and the United Kingdom.
Our principal, domestic office locations, including various support
operations, along with Group Disability and Life Insurance, Health
Services, Core Medical and Service Operations and the domestic

office of our Global Supplemental Benefits business are the Wilde
Building located at 900 Cottage Grove Road in Bloomfield,
Connecticut (our corporate headquarters) and Two Liberty Place
located at 1601 Chestnut Street in Philadelphia, Pennsylvania. The
Wilde Building measures approximately 893,000 square feet and is
owned, while Two Liberty Place measures approximately 322,000
square feet and is leased office space.
We believe our properties are adequate and suitable for our business as
presently conducted. The foregoing does not include information on
investment properties.
ITEM 3. Legal Proceedings

The information contained under Litigation Matters, Regulatory Matters and Other Legal Matters in Note 23 to our Financial Statements
beginning on page 113 of this Form 10-K, is incorporated herein by reference.
ITEM 4. Mine Safety Disclosures

Not applicable.
PART I
EXECUTIVE OFFICERS OF THE REGISTRANT
EXECUTIVE OFFICERS OF THE REGISTRANT

All officers are elected to serve for a one-year term or until their
successors are elected. Principal occupations and employment during
the past five years are listed below.
June 2011; Vice President and Deputy General Counsel of Cigna

from April 2008 until May 2010; and Corporate Secretary of Cigna
from September 2006 until April 2010.
LISA R. BACUS, 51, Executive Vice President and Global Chief

Marketing Officer of Cigna beginning May 2013; Executive Vice
President and Chief Marketer at American Family Insurance from
February 2008 until May 2013.
THOMAS A. McCARTHY, 59, Executive Vice President and Chief

Financial Officer of Cigna beginning July 2013; Vice President of
Finance with responsibility for treasury, tax, strategy and corporate
development, and management of run-off reinsurance from February
2003 until July 2013; Acting Chief Financial Officer from September
2010 until June 2011, and Treasurer from July 2008 until June 2011.
MARK L. BOXER, 56, Executive Vice President and Global Chief

Information Officer of Cigna beginning April 2011; Deputy Chief
Information Officer, Xerox Corporation; and Group President,
Government Health Care, for Xerox Corporation/Affiliated
Computer Services from March 2009 until April 2011.
DAVID M. CORDANI, 50, Chief Executive Officer of Cigna
beginning December 2009; Director since October 2009; President
beginning June 2008; and Chief Operating Officer from June 2008
until December 2009.
HERBERT A. FRITCH, 65, President, Cigna HealthSpring
beginning January 2012; and Chairman of the Board and Chief
Executive Officer of HealthSpring and its predecessor,
NewQuest, LLC, from commencement of operations in September
2000 until HealthSpring was acquired by Cigna in January 2012.
NICOLE S. JONES, 45, Executive Vice President and General
Counsel of Cigna beginning June 2011; Senior Vice President and
General Counsel of Lincoln Financial Group from May 2010 until
MATTHEW G. MANDERS, 54, President, U.S. Commercial

Markets and Global Health Care Operations beginning June 2014;
President, Regional and Operations from November 2011 until June
2014; President, U.S. Service, Clinical and Specialty from January
2010 until November 2011; and President of Cigna HealthCare,
Total Health, Productivity, Network & Middle Market from June
2009 until January 2010.
JOHN M. MURABITO, 57, Executive Vice President, Human
Resources and Services of Cigna beginning August 2003.
JASON D. SADLER, 47, President, International Markets beginning
June 2014; President, Global Individual Health, Life and Accident
from July 2010 until June 2014, and Managing Director Insurance
Business Hong Kong, HSBC Insurance Asia Limited from January
2007 until July 2010.
PART II
ITEM 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
PART II
ITEM 5. Market for Registrants Common Equity, Related
Stockholder Matters and Issuer Purchases of
Equity Securities
The information under the caption Quarterly Financial Data Stock
and Dividend Data appears on page 115 of this Form 10-K. As of
December 31, 2015, the number of shareholders of record was 6,389.
Cignas common stock is listed with, and trades on, the New York
Stock Exchange under the symbol CI.
Issuer Purchases of Equity Securities

The following table provides information about Cignas share repurchase activity for the quarter ended December 31, 2015:
Total # of shares
purchased (1)
Average price paid

per share
Total # of shares purchased as part of

publicly announced program (2)
Approximate dollar value of shares

that may yet be purchased as part
of publicly announced program (3)
October 1-31, 2015

November 1-30, 2015
December 1-31, 2015
1,050
4,723
1,154,152
$ 135.31
$ 131.93
$ 142.94
1,153,013
$ 664,765,230
$ 664,765,230
$ 499,953,134
Total
1,159,925
$ 142.89
1,153,013
N/A
Period
(1) Includes shares tendered by employees as payment of taxes withheld on vesting of restricted stock and strategic performance shares granted under the Companys equity compensation plans.
Employees tendered 1,050 shares in October, 4,723 in November and 1,139 shares in December 31, 2015.
(2) Cigna has had a repurchase program for many years, and has had varying levels of repurchase authority and activity under this program. The program has no expiration date. Cigna suspends
activity under this program from time to time and also removes such suspensions, generally without public announcement. In 2015, the Company repurchased 5.5 million shares for
$683 million. Remaining authorization under the program was approximately $500 million as of December 31, 2015. From January 1, 2016 through February 25, 2016, the Company
repurchased 0.8 million shares for $110 million. Remaining authorization under the program was $390 million as of February 25, 2016.
(3) Approximate dollar value of shares is as of the last date of the applicable month.
PART II
ITEM 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Five Year Cumulative Total Shareholder Return*

December 31, 2010 December 31, 2015
$500
$400
$300
$200
$100
$0
12/31/10
12/31/11
12/31/12
12/31/13
12/31/14
12/31/15
Cigna
S&P 500 Index
S&P Managed Health Care, Life & Health Ins. Indexes**
16FEB201619051532
12/31/10
12/31/11
12/31/12
12/31/13
12/31/14
12/31/15
Cigna
$ 100
$ 115
$ 146
$ 239
$ 282
$ 400
S&P 500 Index
$ 100
$ 102
$ 118
$ 157
$ 178
$ 181
S&P Managed Health Care, Life & Health Ins. Indexes**
$ 100
$ 121
$ 130
$ 195
$ 249
$ 293
* Assumes that the value of the investment in Cigna common stock and each index was $100 on December 31, 2010 and that all dividends were reinvested.
** Weighted average of S&P Managed Health Care (75%) and Life and Health Insurance (25%) Indexes.
PART II
ITEM 6. Selected Financial Data
ITEM 6. Selected Financial Data

The selected financial data should be read in conjunction with Managements Discussion and Analysis of Financial Condition and Results of
Operations and the Consolidated Financial Statements and accompanying notes included elsewhere herein.
Highlights
TOTAL REVENUES
2015
37,876
2014
34,914
2013
32,380
2012
29,119
2011
21,865
Shareholders net income
2,094
2,102
1,476
1,623
1,260
NET INCOME
2,077
2,094
1,478
1,624
1,261
(Dollars in millions, except per share amounts)
Shareholders net income per share:

Basic
8.17
7.97
5.28
5.70
4.65
Diluted
8.04
7.83
5.18
5.61
4.59
Common dividends declared per share
0.04
0.04
0.04
0.04
0.04
Cash and investments
26,681
25,762
25,160
26,638
27,180
Total assets(1)
57,088
55,870
54,306
53,700
50,659
Long-term debt(1)
5,020
4,979
4,984
4,952
4,952
(1)
Total liabilities
44,975
44,991
43,629
43,817
42,665
Shareholders equity
12,035
10,774
10,567
9,769
7,994
Employees
39,300
37,200
36,500
35,800
31,400
(1) As explained in Note 2(B) to the Consolidated Financial Statements, in the fourth quarter of 2015, we retrospectively adopted Accounting Standards Update 2015-03 Simplifying the
Presentation of Debt Issuance Costs, that requires debt issuance costs to be netted against long-term debt. Amounts presented above for the years 2011 through 2014 for total assets, long-term
debt, and total liabilities have been retrospectively adjusted to conform to the new guidance. The impact was not material.
PART II
ITEM 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
ITEM 7. Managements Discussion and Analysis of

Financial Condition and Results of Operations
Index
Overview .......................................................................................................................................................................................35
Consolidated Results of Operations ..............................................................................................................................................39
Liquidity and Capital Resources....................................................................................................................................................41
Critical Accounting Estimates .......................................................................................................................................................45
Segment Reporting .......................................................................................................................................................................48
Global Health Care ...............................................................................................................................................................49
Global Supplemental Benefits................................................................................................................................................50
Group Disability and Life .....................................................................................................................................................51
Other Operations ..................................................................................................................................................................52
Corporate ..............................................................................................................................................................................52
Investment Assets ..........................................................................................................................................................................53
Managements Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to provide information to assist you in
better understanding and evaluating our financial condition and results of operations. We encourage you to read this MD&A in conjunction with our
Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K and the Risk Factors contained in Part I, Item 1A of
this Annual Report on Form 10-K (Form 10-K) .
Unless otherwise indicated, financial information in the MD&A is presented in accordance with accounting principles generally accepted in the United
States of America (GAAP). See Note 2 to the Consolidated Financial Statements for additional information regarding the Companys significant
accounting policies. In some of our financial tables in this MD&A, we present either percentage changes or N/M when those changes are so large as to
become not meaningful, and changes in percentages are expressed in basis points (bps).
In this MD&A, our consolidated measures operating revenues and adjusted income from operations are not determined in accordance with GAAP and
should not be viewed as substitutes for the most directly comparable GAAP measures total revenues and shareholders net income.
We define operating revenues as total revenues excluding realized investment results. We exclude realized investment results from this measure because our
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.
We use adjusted income (loss) from operations as our principal financial measure of operating performance because management believes it best reflects the
underlying results of our business operations and permits analysis of trends in underlying revenue, expenses and profitability. Beginning on January 1,
2015, we define adjusted income from operations as shareholders net income (loss) excluding after-tax realized investment gains and losses, net
amortization of other acquired intangible assets and special items. Prior period segment information has been restated to reflect these new performance
metrics. 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 Companys business operations. The amortization amount is net of one-time benefits of acquisitions in which the fair value of net
assets acquired exceeds the purchase price.
Special items, if any, are excluded because management believes they are not representative of the underlying results of operations. See Note 22 to the
Consolidated Financial Statements for descriptions of special items.
In 2013, adjusted income from operations also excluded the results of the guaranteed minimum income benefit (GMIB) business prior to the reinsurance
transaction with Berkshire Hathaway Life Insurance Company of Nebraska (Berkshire).
PART II
Overview
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, Cignas strategy is to Go Deep,
Go Global and Go Individual with a differentiated set of medical,
dental, disability, life and accident insurance and related products and
services offered by our subsidiaries. In addition to these ongoing
operations, we also have certain run-off operations.
For further information on our business and strategy, please see

Item 1, Business in this Form 10-K.
Executive Overview
This section includes a discussion of our consolidated financial results
over the past three years as well as key trends and transactions
impacting our business.
Financial Summary
Summarized below are certain key measures of our performance for the years ended December 31:
For the Years Ended December 31,
2015
2014
2013
(Dollars in millions, except per share amounts)
Increase/(Decrease)
2015 vs. 2014
Increase/(Decrease)
2014 vs. 2013
Operating revenues(1)
Global Health Care
29,929
27,290
25,296
2,639
10%
1,994
8%
3,149
3,005
2,639
144
366
14
4,271
3,970
3,747
301
223
485
510
489
(25)
(5)
21
Other Operations
Corporate
Total operating revenues
TOTAL REVENUES
Adjusted Income (Loss) From Operations
Global Health Care
(15)
(15)
(4)
(11)
(275)
37,819
34,760
32,167
3,059
2,593
2,962
8%
2,534
8%
37,876
34,914
32,380
1,848
1,752
1,699
(1)
96
5%
53
3%
262
243
200
19
43
22
324
317
311
75
68
88
10
(20)
(23)
(253)
(265)
(222)
12
(43)
(19)
Other Operations
Corporate
TOTAL ADJUSTED INCOME FROM
OPERATIONS
SHAREHOLDERS NET INCOME
(1)
2,256
2,115
2,076
141
7%
39
2%
2,094
2,102
1,476
(8)
626
42%
8.66
7.87
7.29
0.79
10%
0.58
8%
8.04
7.83
5.18
0.21
3%
2.65
51%
543
4%
378
3%
Earnings per share (diluted):

Adjusted income from operations(1)
Shareholders net income(1)
Global medical customers (in thousands)
(2)
14,999
14,456
14,078
(1) See Consolidated Results of Operations on page 39 for reconciliations of Operating revenues to Total revenues and Adjusted income from operations to Shareholders net income on a dollar and
per share basis.
(2) 2013 excludes limited benefits customers.
PART II
Operating revenues increased in both 2015 and 2014 in each of our

ongoing reporting segments (Global Health Care, Global
Supplemental Benefits, and Group Disability and Life). These
increases are primarily attributable to customer growth in our targeted
market segments, rate actions in our commercial health care
businesses to recover medical cost trend as well as amounts assessed
under Health Care Reform (as defined on page 2 in this Form 10-K),
and growth in our specialty businesses within our Global Health Care
segment.
Total revenues. The increases in operating revenues in both 2015 and
2014 were partially offset by decreases in realized investment results.
See additional discussion in our Consolidated financial results
beginning on page 39 of this MD&A.
Shareholders net income was flat in 2015 compared with 2014
primarily due to higher adjusted income from operations as discussed
below offset by lower realized investment gains and the impact of the
2015 special item charges described in our Consolidated financial
results on page 40 of this MD&A. Shareholders net income per share
in 2015 and 2014 benefited from the favorable effect of share
repurchase.
For 2014, the significant increase in shareholders net income
compared with 2013 is largely due to the absence of the $507 million
after-tax charge associated with the reinsurance agreement with
Berkshire recorded in 2013. See Note 7 to the Consolidated Financial
Statements for further information.
Adjusted income from operations increased in both 2015 and 2014
reflecting higher earnings in each of our ongoing reporting segments.
These favorable effects were driven by continued customer growth in
our targeted market segments and improved contributions from our
specialty health care businesses. Adjusted income from operations per
share in 2015 and 2014 benefited from share repurchase.
Global medical customers. Our medical customer base increased in
2015, primarily driven by growth in our targeted market segments
and the acquisition of QualCare Alliance Networks, Inc. Excluding
customers from our limited benefits business that we were required to
exit in 2014, our medical customer base increased in 2014 compared
with 2013, primarily due to growth in our targeted market segments.
Further discussion of detailed components of revenues and expenses
can be found in the Consolidated Results of Operations section of
this MD&A beginning on page 39. For further analysis and
explanation of individual segment results, see the Segment
Reporting section of this MD&A beginning on page 48.
Key Transactions and Other Significant Items

Proposed Merger with Anthem, Inc. (Anthem)
On July 23, 2015, we entered into a definitive agreement to merge
with Anthem, subject to certain terms, conditions and customary
operating covenants, with Anthem continuing as the surviving

company. Upon closing, our shareholders will receive $103.40 in cash
and 0.5152 of a share of Anthem common stock for each common
share of the Company. The closing price of Anthem common stock
on February 24, 2016 was $130.75. At special shareholders meetings
held in December 2015, Cigna shareholders approved the merger
with Anthem and Anthem shareholders voted to approve the issuance
of shares of Anthem common stock according to the merger
agreement. Consummation of the merger remains subject to certain
customary conditions, including the receipt of certain necessary
governmental and regulatory approvals and the absence of a legal
restraint prohibiting the consummation of the merger. See Note 3 to
the Consolidated Financial Statements for additional details. In
addition, see Item 1A. Risk Factors in this Form 10-K for risks to
our business due to the proposed merger.
Management expects this transaction to close in the second half of
2016
Other Significant Items Reported in Prior Years:

Run-off reinsurance transaction: See Note 7 to the Consolidated
Financial Statements for further information.
Disability claims regulatory matter: See Note 23 to the
Consolidated Financial Statements for further information.
Organizational efficiency plan: See Note 6 to the Consolidated
Financial Statements for further information.
Health Care Industry Developments

The Patient Protection and Affordable Care Act and the Health Care
and Education Reconciliation Act (Health Care Reform) and the
implementing regulations have resulted in broad changes that are
meaningfully impacting the industry, including relationships with
customers and health care providers, the design of products and
services, and pricing and delivery systems. In 2014, there were changes
resulting from the implementation of Health Care Reform regulations
including public exchanges, a non-deductible industry tax in addition
to fees and assessments, and minimum medical loss ratio requirements
for Medicare Advantage and Medicare Part D plans. In both 2014 and
2015, there were ongoing payment reductions for Medicare
Advantage plans by the Centers for Medicare & Medicaid Services
(CMS). Collectively, these changes have had a significant impact on
our business and customers, requiring adjustments to our business
model to mitigate their effects on our results of operations and cash
flows.
PART II
The Regulation section of this Form 10-K provides a detailed description of Health Care Reform provisions and other legislative initiatives that
impact our domestic health care business, including regulations issued by CMS and the Departments of the Treasury and Health and Human
Services (HHS). The discussion below provides a summary of the financial impacts of key provisions of Health Care Reform and certain other
regulatory matters in 2015 and beyond.
Item
Description
Medicare Advantage
(MA)
CMS actions: In January 2016, CMS issued to the Company a Notice of Imposition of Immediate
Intermediate Sanctions (the Notice). The Notice requires the Company to suspend certain
enrollment and marketing activities for Medicare Advantage-Prescription Drug and Medicare Part D
Plans. The sanctions do not impact the ability of current enrollees to remain covered by the
Companys Medicare Advantage-Prescription Drug or Medicare Part D Plans. See Note 23 to the
Consolidated Financial Statement for additional information.
Based on managements current expectations, we do not expect any impact to the Companys
consolidated results of operations, financial condition or cash flows to be material.
If the CMS sanctions remain in effect beyond managements current expectations, we do not expect a
material impact on 2016 consolidated results of operations, financial condition or cash flows. If,
however, the Company is not able to address matters arising from the Notice in a timely and
satisfactory manner, or if there are changes in eligibility for government payments for our programs
that are not resolved in a timely and satisfactory manner, the impact to our 2017 Medicare customer
base and consolidated revenues, results of operations and cash flows could be material.
2016 MA Rates: Final MA reimbursement rates for 2016, published by CMS in April 2015, have
decreased funding for MA participants with the highest clinical needs, including those with multiple
chronic conditions. We reflected these 2016 rates in our bids to CMS submitted during the second
quarter of 2015 and currently expect that the 2016 final MA reimbursement rates will decrease
funding for our Medicare Advantage business by approximately 2% in 2016 compared to 2015. We
do not expect the 2016 MA rates to have a material impact on our consolidated results of operations
or cash flows in 2016 and beyond.
Health Care Reform

Taxes and Fees
Industry Tax
Health Insurance Industry Tax: This non-deductible tax is being levied based on a ratio of an
insurers net health insurance premiums written for the previous calendar year compared to the U.S.
health insurance industry total. We recognized approximately $310 million in operating expenses in
2015 compared with approximately $240 million in 2014. The increase in 2015 largely reflects
growth in the industry assessment from $8 billion in 2014 to $11.3 billion in 2015. Because this tax
is not deductible for federal income tax purposes, our effective tax rate increased from historical levels
in 2014 and 2015. Of the full year 2015 tax, $170 million relates to our commercial business and
$140 million to our Medicare business. For our commercial business, we incorporated the industry
tax into target pricing actions. For our Medicare business, although we have partially mitigated the
effect of the tax through benefit changes and customer premium increases, the combination of the
tax and lower MA rates have contributed to lower margins in the Government operating segment in
both 2015 and 2014.
Because the industry assessment in 2016 is also $11.3 billion, we expect our share of the tax, and its
effect on our results of operations, to be similar to 2015. In December 2015, federal appropriations
legislation imposed a one-year moratorium on the industry tax for 2017, with reinstatement expected
in 2018. For our commercial business, our target pricing actions related to 2017 and 2018 plan years
will reflect the impacts of this legislation. For our Medicare business, we expect to partially mitigate
the impacts of this legislation.
See the Consolidated Results of Operations and Global Health Care segment sections of this MD&A
and Note 2(B) to the Consolidated Financial Statements for further discussion.
Reinsurance Fee
Public Health Exchanges
Reinsurance Fee: This tax deductible fee is a fixed dollar per customer levy that applies to both
insured and self-insured major medical plans excluding certain products such as Medicare Advantage
and Medicare Part D. Proceeds from the fee are being used to fund the reinsurance program for
non-grandfathered individual business sold either on or off the public exchanges beginning in 2014.
For our insured business, we recognized approximately $70 million in 2015 compared with
$110 million in 2014. We incorporate these fees into target pricing actions.
Public Health Exchanges: For 2015, we offered individual coverage on eight public health insurance
exchanges (Arizona, Colorado, Florida, Georgia, Maryland, Missouri, Tennessee and Texas). In 2016,
we exited the Florida public exchange market.
PART II
Risk Mitigation Programs

See Note 2(R) to the Consolidated Financial Statements for a
description of and our accounting policy for these programs that
commenced in 2014.
In 2015, shareholders net income included after-tax benefits of
approximately $250 million related to the 2015 coverage year risk
mitigation programs, consisting of approximately $100 million for

reinsurance and approximately $75 million each for the risk
adjustment and risk corridor programs. After-tax benefits reported
below for each program in 2015 also included the effects of updates to
2014 coverage year amounts based on CMS data received in June
2015.
The following table presents the after-tax benefits to shareholders net income from these programs for the years ended December 31, 2015 and
2014 and our net receivable balances as of December 31, 2015 and 2014.
After-tax Impact on
Shareholders Net Income(1)
For the Years Ended
December 31,
2015
2014
(In millions)
Reinsurance
Risk Adjustment
92
Risk Corridor
Total
125
266
49
49
$
109
Net Receivable Balance(2)

As of December 31,
2015
2014
198
118
40
$
158
76
134
$
410
167
62
$
305
(1) After-tax impacts reported in 2015 included an increase for the 2014 coverage year of approximately $20 million based on CMS data received in June 2015. For the 2015 coverage year, we
have accrued reinsurance recoveries at the 50% coinsurance rate prescribed by Health Care Reform.
(2) Net receivables for the risk adjustment and risk corridor programs are reported in premiums, accounts and notes receivable. For the reinsurance program, receivables are reported in reinsurance
recoverables.
In 2015, we received approximately $300 million related to the 2014

risk mitigation programs. CMS paid substantially all amounts due
under the 2014 reinsurance and risk adjustment programs. In
addition, CMS paid approximately 13% of insurers 2014 coverage
year risk corridor receivables. CMS has acknowledged its legal
obligation to pay insurers under the risk corridor program for the
balance of the 2014 coverage year as well as the 2015 coverage year, as
required by Health Care Reform. If CMS risk corridor program

collections, including carryovers from prior years, are insufficient to
satisfy its payment obligations, CMS has stated that it will explore
other funding sources subject to the availability of appropriations that
may require congressional approval. We are continuing to monitor
developments related to the risk corridor program.
PART II
Consolidated Results of Operations

Summarized below are our results of operations on a GAAP basis.
2015
2014
2013
Financial Summary
(In millions)
Premiums
29,642
27,214
25,575
Increase/(Decrease)
2015 vs. 2014
$
2,428
Increase/(Decrease)
2014 vs. 2013
9%
1,639
6%
Fees and other revenues
4,488
4,141
3,601
347
540
15
Net investment income
1,153
1,166
1,164
(13)
(1)
Mail order pharmacy revenues
2,536
2,239
1,827
297
13
412
23
37,819
34,760
32,167
3,059
2,593
57
154
213
(97)
(63)
(59)
(28)
Operating revenues
Net realized investment gains
Total revenues
37,876
34,914
32,380
2,962
2,534
Global Health Care medical costs
18,354
16,694
15,867
1,660
10
827
Other benefit expenses
4,936
4,640
4,998
296
(358)
(7)
Mail order pharmacy costs
2,134
1,907
1,509
227
12
398
26
Other operating expenses
8,982
8,174
7,595
808
10
579
Amortization of other acquired intangible assets,

net
143
195
235
(52)
(27)
(40)
(17)
34,549
31,610
30,204
2,939
1,406
Income before income taxes
3,327
3,304
2,176
23
1,128
52
Income taxes
1,250
1,210
698
40
512
73
Net income
2,077
2,094
1,478
(17)
(1)
616
42
(9)
(113)
(10)
N/M
(8)
626
42%
Benefits and expenses
Less: net income (loss) attributable to

noncontrolling interests
(17)
$
2,094
(8)
$
2,102
2
$
1,476
PART II
A reconciliation of shareholders net income to adjusted income from operations follows:

2015
2014
2013
Financial Summary
(In millions)
2,094
2,102
1,476
Increase/(Decrease)
2015 vs. 2014
$
(8)
Increase/(Decrease)
2014 vs. 2013
$
626
42%
After-tax adjustments required to reconcile to

adjusted income from operations:
Results of GMIB business
(25)
25
(40)
(106)
(141)
66
35
80
119
144
(39)
(25)
Debt extinguishment costs (See Note 15 to the

Consolidated Financial Statements)
65
65
Merger-related transaction costs (See Note 3 to

the Consolidated Financial Statements)
57
57
Costs associated with PBM services agreement

(See Note 22 to the Consolidated Financial
Statements)
24
(24)
Charge related to reinsurance transaction (See

Note 7 to the Consolidated Financial
Statements)
507
(507)
Charge for disability claims regulatory matter

(See Note 23 to the Consolidated Financial
Statements)
51
(51)
Charge for organizational efficiency plans (See

Note 6 to the Consolidated Financial
Statements)
40
(40)
Net realized investment (gains)

net
Special items:
ADJUSTED INCOME FROM OPERATIONS
2,256
2,115
2,076
141
7%
39
2%
8.04
7.83
5.18
0.21
3%
2.65
51%
Other Key Consolidated Financial Data

Earnings per share (diluted):
Per share impact of after-tax adjustments to
shareholders net income
net
Special items
Adjusted income from operations
Effective tax rate
(0.09)
0.09
(0.15)
(0.40)
(0.49)
0.25
0.09
0.30
0.44
0.51
(0.14)
(0.07)
0.47
$
8.66
37.6%
7.87
36.6%
2.18
$
7.29
32.1%
0.47
$
0.79
100 bps
(2.18)
10%
0.58
450 bps
8%
PART II
Consolidated Results of Operations: 2015

Compared to 2014 and 2014 Compared to
2013
Revenues. The components of revenue changes are discussed
further below:
Premiums. The increase in 2015 compared with 2014 reflects
premium growth in each of our ongoing reporting segments:
Global Health Care, Global Supplemental Benefits and Group
Disability and Life. These results are primarily attributable to
customer growth in our targeted market segments and rate
actions in our commercial health care businesses consistent
with medical cost trend. The increase in 2014 compared with
2013 was driven primarily by rate increases to recover both
medical cost trend and new taxes and fees assessed under
Health Care Reform. Business growth in certain of our market
segments also contributed to the increase in 2014.
Fees and other revenues. The increases in both 2015 and 2014
largely reflected growth from specialty products offered
through our Global Health Care segment and an increased
customer base for our administrative services only business.
Fees and other revenues also included pre-tax losses of
$39 million in early 2013 attributable to the hedge program
associated with the guaranteed minimum death benefit
(GMDB) and GMIB business prior to the reinsurance
transaction with Berkshire.
Net investment income decreased in 2015 versus 2014, due to
lower investment yields from the continued low interest rate
environment and unfavorable foreign currency effects partially
offset by higher average invested assets. In 2014, net
investment income was flat compared with 2013, reflecting
higher average investment assets offset by lower yields.
Mail order pharmacy revenues increased in both 2015 and 2014
driven by greater volume, primarily for specialty medications
(injectables) due to our higher customer base and home
delivery utilization.
Realized investment results. In 2015, realized investment results
decreased compared with 2014, primarily due to higher
impairment losses on certain externally managed fixed
maturities, particularly within the energy sector, that have an
increased probability of sale prior to recovery of amortized
cost. These impairments were driven by increased market
yields. The significant decrease in 2014, compared with 2013,

resulted primarily from the absence of large gains on sales of
fixed maturities in 2013 related to funding the reinsurance
transaction with Berkshire. See Note 14 to the Consolidated
Financial Statements for additional information.
Global Health Care medical costs. The increases in both 2015 and
2014 were primarily due to customer growth in our government
business and, to a lesser extent, medical cost inflation.
Other benefit expenses. The increase in 2015 compared with 2014
was primarily due to business growth in our Group Disability and
Life and Global Supplemental Benefits segments. The decrease in
other benefit expenses in 2014 compared with 2013 resulted from
the absence of the charges recorded in the first quarter of 2013
associated with the reinsurance agreement with Berkshire
($727 million pre-tax), partially offset by continued business
growth in the Global Supplemental and Group Disability and Life
segments.
Mail order pharmacy costs. The increases in both 2015 and 2014
are primarily due to increased volume, primarily for specialty
medications (injectables), from our higher customer base, and home
delivery utilization as well as higher unit costs.
Other operating expenses. The increase in 2015 compared with
2014 was primarily due to business growth, strategic investments
across our segments and special items described below. In 2014, the
increase in other operating expenses over 2013 was largely driven by
new taxes and fees assessed under Health Care Reform and business
growth in all of our ongoing segments.
Amortization of other acquired intangible assets, net. The
decreases in both 2015 and 2014 reflect the expected continuing
decline in amortization from our 2012 acquisition of
HealthSpring, Inc. The decrease in 2015 also includes the one-time
$23 million benefit of an acquisition in which the fair value of
acquired net assets exceeded the purchase price.
Special items. See Note 22 to the Consolidated Financial
Statements for additional details about special items.
Consolidated effective tax rate. The increases in the consolidated
effective tax rate in both 2015 and 2014 were primarily driven by
the non-deductible health insurance industry tax assessed under
Health Care Reform. This tax was first assessed in 2014 and
increased in 2015. See Note 19 to the Consolidated Financial
Statements for additional details.
Liquidity and Capital Resources

Financial Summary
Short-term investments
2015
381
2014
163
2013
631
Cash and cash equivalents
1,968
1,420
2,795
Short-term debt
149
147
233
(In millions)
(1)
Long-term debt
5,020
4,979
4,984
Shareholders equity
12,035
10,774
10,567
(1) As explained in Note 2 (B) to the Consolidated Financial Statements, in the fourth quarter of 2015, the Company retrospectively adopted Accounting Standards Update 2015-03 that
requires debt issuance costs to be netted against the carrying value of the debt. Amounts presented above for 2014 and 2013 have been retrospectively adjusted to conform to the new guidance.
The impact was not material.
PART II
Consolidated short-term investments increased in 2015 compared with 2014 as a result of higher net purchases of short-term investments at the
parent company level. The decrease in short-term investments in 2014 compared with 2013 resulted from the Companys investment mix shift
toward longer-term holdings.
Liquidity
We maintain liquidity at two levels: the subsidiary level and the parent company level.
Liquidity requirements at the subsidiary level generally consist of:
medical costs and benefit payments to policyholders; and
operating expense requirements, primarily for employee compensation and benefits.
Our subsidiaries normally meet their operating requirements by:
maintaining appropriate levels of cash, cash equivalents and short-term investments;
using cash flows from operating activities;
selling investments;
matching investment durations to those estimated for the related insurance and contractholder liabilities; and
borrowing from affiliates, subject to applicable regulatory limits.
Liquidity requirements at the parent company level generally consist of:
debt service and dividend payments to shareholders;
pension plan funding; and
repurchases of common stock.
The parent company normally meets its liquidity requirements by:
maintaining appropriate levels of cash and various types of marketable investments;
collecting dividends from its subsidiaries;
using proceeds from issuance of debt and equity securities; and
borrowing from its subsidiaries.
Cash flows for the years ended December 31, were as follows:
Net cash provided by operating activities
2015
2,717
2014
1,994
Net cash provided by (used in) investing activities
(1,599)
(1,755)
15
Net cash used in financing activities
(530)
(1,582)
(930)
(In millions)
Cash flows from operating activities consist of cash receipts and

disbursements for premiums and fees, mail order pharmacy, other
revenues, investment income, taxes, benefits and expenses. Because
certain income and expense transactions do not generate cash, and
because cash transactions related to revenues and expenses may occur
in periods different from when those revenues and expenses are
recognized in shareholders net income, cash flows from operating
activities can be significantly different from shareholders net income.
Cash flows from investing activities generally consist of net
investment purchases or sales and net purchases of property and
equipment including capitalized software, as well as cash used to
acquire businesses.
Cash flows from financing activities are generally comprised of
issuances and re-payment of debt at the parent company level,
proceeds on the issuance of common stock resulting from stock
option exercises, and stock repurchases. In addition, the subsidiaries
report deposits to and withdrawals from investment contract liabilities
(including universal life insurance liabilities) because such liabilities
are considered financing activities with policyholders.
2013
719
Operating activities
Cash flows from operating activities increased in 2015 compared with
2014 primarily driven by the volume and timing of government
reimbursements and pharmacy considerations.
Cash flows from operating activities increased substantially in 2014
compared with 2013, primarily due to the absence of the 2013
reinsurance payments totaling $2.2 billion to Berkshire. Excluding
those payments and tax benefits realized in connection with the
Berkshire transaction, cash flows from operating activities in 2014
decreased by $0.6 billion, compared with 2013. This decrease was
primarily related to the volume and timing of reimbursements
prescribed by government programs.
Investing activities
Net cash used in investing activities decreased in 2015 compared with
2014, due to lower net purchases of fixed maturities. Cash flows from
investing activities decreased by $1.8 billion in 2014 compared with
2013, primarily due to higher net purchases of fixed maturities. In
2013, net purchases of fixed maturities were lower than 2014
primarily due to funding the Berkshire transaction.
PART II
Financing activities
Cash used in financing activities decreased in 2015 compared with
2014, primarily reflecting lower share repurchases. Cash used in
financing activities increased in 2014 compared with the same period
in 2013, primarily due to higher share repurchases.
Share repurchase
We maintain a share repurchase program, authorized by our Board of
Directors. Under this program, we may repurchase shares from time
to time, depending on market conditions and alternate uses of capital.
We may suspend activity under our share repurchase program from
time to time and may also remove such suspensions, generally without
public announcement. We may also repurchase shares at times by
using a Rule 10b5-1 trading plan when we otherwise might be
precluded from doing so under insider trading laws or because of
self-imposed trading block-out periods.
In 2015, we repurchased 5.5 million shares for $683 million. From
January 1, 2016 through February 25, 2016 we repurchased
0.8 million shares for $110 million. The total remaining share
repurchase authorization as of February 25, 2016 was $390 million.
We repurchased 18.5 million shares for $1.6 billion in 2014 and
repurchased 13.6 million shares for $1.0 billion in 2013.
Interest Expense
Interest expense on long-term debt, short-term debt and capital leases was as follows:
2015
(In millions)
Interest expense
Interest expense reported above for the year ended 2015 excludes
losses on the early extinguishment of debt.
The weighted average interest rate for outstanding short-term debt
(primarily commercial paper) was 0.69% at December 31, 2015 and
0.27% at December 31, 2014.
Capital Resources
Our capital resources (primarily retained earnings and proceeds from
the issuance of debt and equity securities) provide protection for
policyholders, furnish the financial strength to underwrite insurance
risks and facilitate continued business growth.
Management, guided by regulatory requirements and rating agency
capital guidelines, determines the amount of capital resources that we
maintain. Management allocates resources to new long-term business
commitments when returns, considering the risks, look promising
and when the resources available to support existing business are
adequate.
We prioritize our use of capital resources to:
provide the capital necessary to support growth and maintain or
improve the financial strength ratings of subsidiaries and to fund
pension obligations;
consider acquisitions that are strategically and economically
advantageous; and
return capital to investors through share repurchase.
The availability of capital resources will be impacted by equity and
credit market conditions. Extreme volatility in credit or equity market
conditions may reduce our ability to issue debt or equity securities.
252
2014
$
265
2013
$
270
parent companys combined cash obligations are expected to be

approximately $365 million to pay for interest, commercial paper
maturities and dividends.
We expect, based on the parent companys current cash position,
current projections for subsidiary dividends, and the ability to
refinance its commercial paper borrowing, to have sufficient liquidity
to meet the obligations discussed above.
Our cash projections may not be realized and the demand for funds
could exceed available cash if our ongoing businesses experience
unexpected shortfalls in earnings, or we experience material adverse
effects from one or more risks or uncertainties described more fully in
the Risk Factors section of this Form 10-K. In those cases, we expect
to have the flexibility to satisfy liquidity needs through a variety of
measures, including intercompany borrowings and sales of liquid
investments. The parent company may borrow up to $1.3 billion
from its insurance subsidiaries without additional state approval. As of
December 31, 2015, the parent company had $63 million of net
intercompany loans receivable from its insurance subsidiaries.
Alternatively, to satisfy parent company liquidity requirements we
may use short-term borrowings, such as the commercial paper
program, the committed revolving credit and letter of credit
agreement of up to $1.5 billion subject to the maximum debt leverage
covenant in its line of credit agreement. As of December 31, 2015,
$1.5 billion of short-term borrowing capacity under the credit
agreement was available to us. Within the maximum debt leverage
covenant in the line of credit agreement as described in Note 15, we
have $7.9 billion of borrowing capacity in addition to the $5.2 billion
of debt outstanding. This additional borrowing capacity includes the
$1.5 billion available under the credit agreement.
Liquidity and Capital Resources Outlook
Though we believe we have adequate sources of liquidity, significant

disruption or volatility in the capital and credit markets could affect
our ability to access those markets for additional borrowings or
increase costs associated with borrowing funds.
At December 31, 2015, there was approximately $1.4 billion in cash

and investments available at the parent company level. In 2016, the
We maintain a capital management strategy to retain overseas a

significant portion of the earnings from our foreign operations. These
PART II
undistributed earnings are deployed outside of the U.S. in support of

the liquidity and capital needs of our foreign operations. As of
December 31, 2015, undistributed earnings were approximately
$2.2 billion. If repatriated, approximately $310 million of cash and
cash equivalents held overseas would be subject to additional tax
expense representing the difference between the U.S. and foreign tax
rates. This strategy does not materially limit our ability to meet our
liquidity and capital needs in the U.S. Cash and cash equivalents in
foreign operations are held primarily to meet local liquidity and
surplus needs with excess funds generally invested in longer duration,
high quality securities.
Unfunded Pension Plan Liability. As of December 31, 2015, our
unfunded pension liability was $953 million, reflecting a decrease of
approximately $150 million from December 31, 2014. The decrease
in the unfunded liability reflected an increase of approximately 40
basis points in the weighted average assumed discount rate, and

changes to our mortality assumptions based on an updated pension
mortality table. In 2016, we do not expect to make any pension
contributions, as there are no contributions required under the
Pension Protection Act of 2006. See Note 9 for additional
information regarding our pension plans.
Solvency II. Beginning in 2016, our businesses in the European
Union became subject to the directive on insurance regulation,
solvency and governance requirements known as Solvency II. This
directive imposes economic risk-based solvency and governance
requirements and supervisory rules. Our European insurance
companies are capitalized at levels consistent with projected Solvency
II requirements and in compliance with anticipated governance and
technical capability requirements.
Guarantees and Contractual Obligations

We are contingently liable for various contractual obligations entered into in the ordinary course of business. The maturities of our primary
contractual cash obligations, as of December 31, 2015, are estimated to be as follows:
On-Balance Sheet:
Insurance liabilities:
Contractholder deposit funds
Future policy benefits
Global Health Care medical costs payable
Unpaid claims and claims expenses
Short-term debt
Long-term debt
Other long-term liabilities
Off-Balance Sheet:
Purchase obligations
Operating leases
TOTAL
On balance sheet:
Insurance liabilities. Contractual cash obligations for insurance
liabilities, excluding unearned premiums, represent estimated net
benefit payments for health, life and disability insurance policies
and annuity contracts. Recorded contractholder deposit funds
reflect current fund balances primarily from universal life insurance
customers. Contractual cash obligations for these universal life
contracts are estimated by projecting future payments using
assumptions for lapse, withdrawal and mortality. These projected
future payments include estimated future interest crediting on
current fund balances based on current investment yields less the
estimated cost of insurance charges and mortality and
administrative fees. Actual obligations in any single year will vary
based on actual morbidity, mortality, lapse, withdrawal, investment
and premium experience. The sum of the obligations presented
above exceeds the corresponding insurance and contractholder
liabilities of $20 billion recorded on the balance sheet because the
recorded insurance liabilities reflect discounting for interest and the
recorded contractholder liabilities exclude future interest crediting,
charges and fees. We manage our investment portfolios to generate
Less than
1 year
Total
(In millions, on an undiscounted basis)
6,704
11,377
2,369
5,041
149
8,396
750
969
700
$
36,455
754
632
2,293
1,530
149
254
153
1-3
years
428
127
$
6,320
967
1,387
31
989
882
131
4-5
years
352
221
$
4,960
768
1,084
10
667
1,013
92
After 5
years
107
162
$
3,903
4,215
8,274
35
1,855
6,247
374
82
190
21,272
cash flows needed to satisfy contractual obligations. Any shortfall

from expected investment yields could result in increases to
recorded reserves and adversely impact results of operations. The
amounts associated with the sold retirement benefits and individual
life insurance and annuity businesses, as well as the reinsured
workers compensation, personal accident and supplemental
benefits businesses, are excluded from the table above as their related
net cash flows associated with them are not expected to impact our
cash flows. The total amount of these reinsured reserves excluded is
approximately $5 billion. The expected future cash flows for
GMDB and GMIB contracts included in the table above (within
future policy benefits and other long-term liabilities) do not
consider any of the related reinsurance arrangements.
Short-term debt represents commercial paper, current maturities of
long-term debt, and current obligations under capital leases.
Long-term debt includes scheduled interest payments. Capital
leases are included in long-term debt and represent obligations for
IT network storage, servers and equipment.
PART II
Other long-term liabilities. This table includes estimated

payments for GMIB contracts, pension and other postretirement
and postemployment benefit obligations, supplemental and
deferred compensation plans, interest rate and foreign currency
swap contracts, and certain tax and reinsurance liabilities. These
items are presented in accounts payable, accrued expenses and other
liabilities in our Consolidated Balance Sheets.
Estimated payments of $75 million for deferred compensation,
non-qualified and international pension plans and other
postretirement and postemployment benefit plans are expected to
be paid in less than one year. Our best estimate is that there will be
no contributions to the qualified domestic pension plans during
2016. We expect to make payments subsequent to 2016 for these

obligations, however subsequent payments have been excluded from
the table as their timing is based on plan assumptions that may
materially differ from actual activities. See Note 9 to the
Consolidated Financial Statements for further information on
pension and other postretirement benefit obligations.
The above table also does not contain $31 million of liabilities for
uncertain tax positions because we cannot reasonably estimate the
timing of their resolution with the respective taxing authorities. See
Note 19 to the Consolidated Financial Statements for the year
ended December 31, 2015 for further information.
Off-Balance Sheet:
Purchase obligations. As of December 31, 2015, purchase obligations consisted of estimated payments required under contractual
arrangements for future services and investment commitments as follows:
(In millions)
Fixed maturities
Commercial mortgage loans
Limited liability entities (other long-term investments)
Total investment commitments

Future service commitments
691
278
TOTAL PURCHASE OBLIGATIONS
See Note 11 to the Consolidated Financial Statements for additional

information.
Our estimated future service commitments primarily represent
contracts for certain outsourced business processes and IT
maintenance and support. We generally have the ability to terminate
these agreements, but do not anticipate doing so at this time. Purchase
obligations exclude contracts that are cancelable without penalty and
those that do not specify minimum levels of goods or services to be
purchased.
15
5
671
969
Operating leases. For additional information, see Note 21 to the

Consolidated Financial Statements.
Guarantees
We are contingently liable for various financial and other guarantees
provided in the ordinary course of business. See Note 23 to the
Consolidated Financial Statements for additional information on
guarantees.
Critical Accounting Estimates

The preparation of Consolidated Financial Statements in accordance
with GAAP requires management to make estimates and assumptions
that affect reported amounts and related disclosures in the
Consolidated Financial Statements. Management considers an
accounting estimate to be critical if:
Consolidated Financial Statements, including estimates of liabilities

for future policy benefits, as well as estimates with respect to unpaid
claims and claim expenses, postemployment and postretirement
benefits other than pensions, certain compensation accruals, and
income taxes.
it requires assumptions to be made that were uncertain at the time

the estimate was made; and
Management believes the current assumptions used to estimate

amounts reflected in our Consolidated Financial Statements are
appropriate. However, if actual experience differs from the
assumptions used in estimating amounts reflected in our
Consolidated Financial Statements, the resulting changes could have a
material adverse effect on our consolidated results of operations and,
in certain situations, could have a material adverse effect on our
liquidity and financial condition.
changes in the estimate or different estimates that could have been

selected could have a material effect on our consolidated results of
operations or financial condition.
Management has discussed the development and selection of its
critical accounting estimates with the Audit Committee of our Board
of Directors and the Audit Committee has reviewed the disclosures
presented below.
See Note 2 to the Consolidated Financial Statements for further

information on significant accounting policies.
In addition to the estimates presented in the following table, there are

other accounting estimates used in the preparation of our
PART II
Balance Sheet Caption / Nature of Critical Accounting Estimate
Effect if Different Assumptions Used
Goodwill
At the acquisition date, goodwill represents the excess of the cost of
businesses acquired over the fair value of their net assets.
We completed our annual evaluations of goodwill for impairment
during the third quarter of 2015. These evaluations were performed at
the reporting unit level, based on discounted cash flow analyses and
market data. The evaluations indicated that no impairment was
required.
Fair value of a reporting unit was estimated using models and
assumptions that we believe 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 was used,
corresponding with the reporting units weighted average cost of
capital, consistent with that used for investment decisions considering
the specific and detailed operating plans and strategies within the
reporting units. Projections of future cash flows were consistent with
our annual planning process for revenues, claims, operating expenses,
taxes, capital levels and long-term growth rates. In addition to these
assumptions, we considered market data to evaluate the fair value of
each reporting unit.
In our Government operating segment (which is a reporting unit) we
contract with CMS and various state governmental agencies to provide
managed health care services, including Medicare Advantage plans and
Medicare-approved prescription drug plans. Estimated future cash
flows for this business incorporated the potential effects of Medicare
Advantage reimbursement rates for 2016 and beyond as discussed in
the Overview section of this MD&A. Revenues from the Medicare
programs are dependent, in whole or in part, upon annual funding
from the federal government through CMS. This evaluation was
updated to consider managements assessment of the impact of the
CMS sanctions discussed in Note 23 to the Consolidated Financial
Statements. Funding for these programs is dependent on many factors
including general economic conditions, continuing government efforts
to contain health care costs and budgetary constraints at the federal
level and general political issues and priorities.
Goodwill as of December 31 was as follows (in millions):
2015 $6,019
2014 $5,989
See Notes 2(H) and 8 to the Consolidated Financial Statements for
additional discussion of our goodwill.
If we do not achieve our earnings objectives or the cost of capital rises

significantly, the assumptions and estimates underlying these
impairment evaluations could be adversely affected and result in future
impairment charges that would negatively impact our operating
results.
The fair value estimate of our Government reporting unit could
decrease by approximately 30% before an indication of impairment of
goodwill occurs. Changes in the funding for our Medicare programs by
the federal government, or our inability to resolve the matters arising
from the CMS Notice in a timely and satisfactory manner, could
materially reduce revenues and profitability in our Government
reporting unit and have a significant impact on its fair value.
The estimated fair value of our remaining reporting units exceeded
their carrying values by a substantial margin based on our annual
evaluations of goodwill for impairment during the third quarter of
2015.
PART II
Accounts payable, accrued expenses and other liabilities pension

liabilities
The discount rate is typically the most significant assumption in

measuring the pension liability. We develop the discount rate by
applying actual annualized yields at various durations from a discount
rate curve constructed from high quality corporate bonds.
These liabilities are estimates of the present value of the qualified and
nonqualified pension benefits to be paid (attributed to employee
service to date) net of the fair value of plan assets. The accrued pension
benefit liability as of December 31 was as follows (in millions):
2015 $953
2014 $1,099
See Note 9 to the Consolidated Financial Statements for assumptions
and methods used to estimate pension liabilities.
If discount rates for the qualified and nonqualified pension plans

decreased by 50 basis points, the accrued pension benefit liability
would increase by approximately $205 million as of December 31,
2015 resulting in an after-tax decrease to shareholders equity of
approximately $135 million.
If the December 31, 2015 fair values of domestic qualified plan assets
decreased by 10%, the accrued pension benefit liability would increase
by approximately $395 million as of December 31, 2015 resulting in
an after-tax decrease to shareholders equity of approximately
$255 million.
An increase in these key assumptions would result in impacts to, the
accrued pension liability and shareholders equity in an opposite
direction, but similar amounts.

Medical costs payable for the Global Health Care segment include
both reported claims and estimates for losses incurred but not yet
reported.
Liabilities for medical costs payable as of December 31 were as follows
(in millions):
2015 gross $2,355; net $2,112
2014 gross $2,180; net $1,928
These liabilities are presented above both gross and net of reinsurance
and other recoverables and generally exclude amounts for
administrative services only business.
See Notes 2 and 5 to the Consolidated Financial Statements for
additional information regarding assumptions and methods used to
estimate this liability.
In 2015, actual experience differed from our key assumptions as of

December 31, 2014, resulting in $210 million of favorable incurred
costs related to prior years medical costs payable or 1.3% of the
current year incurred costs as reported in 2014. In 2014, actual
experience differed from our key assumptions as of December 31,
2013, resulting in $159 million of favorable incurred costs related to
prior years medical claims, or 1.0% of the current year incurred costs
reported in 2013. Specifically, the favorable impact is due to faster than
expected completion factors and lower than expected medical cost
trends, both of which included an assumption for moderately adverse
experience.
The impact of this favorable prior year development was an increase to
shareholders net income of $60 million in 2015. The change in the
amount of the incurred costs related to prior years in the medical costs
payable liability does not directly correspond to an increase or decrease
in shareholders net income as explained in Note 5 to the Consolidated
PART II
Valuation of fixed maturity investments
Typically, the most significant input in the measurement of fair value is

the market interest rate used to discount the estimated future cash
flows of the instrument. 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.
Most fixed maturities 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.
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.
If the interest rates used to calculate fair value increased by 100 basis
points, the fair value of the total fixed maturity portfolio of $19 billion
would decrease by approximately $1.2 billion.
Determining fair value for a financial instrument requires management

judgment. The degree of judgment involved generally correlates to the
level of pricing readily observable in the markets. Financial instruments
with quoted prices in active markets or with market observable inputs
to determine fair value, such as public securities, generally require less
judgment. Conversely, private placements including more complex
securities that are traded infrequently are typically measured using
pricing models that require more judgment as to the inputs and
assumptions used to estimate fair value. There may be a number of
alternative inputs to select based on an understanding of the issuer, the
structure of the security and overall market conditions. In addition,
these factors are inherently variable in nature as they change frequently
in response to market conditions. Approximately two-thirds of our
fixed maturities are public securities, and one-third are private
placement securities.
See Note 10 to the Consolidated Financial Statements for a discussion
of our fair value measurements and the procedures performed by
management to determine that the amounts represent appropriate
estimates.
Assessment of other-than-temporary impairments of fixed
maturities
To determine whether a fixed maturitys decline in fair value below its
amortized cost is other than temporary, we must evaluate the expected
recovery in value and our intent to sell or the likelihood of a required
sale of the fixed maturity prior to an expected recovery. To make this
determination, we consider a number of general and specific factors
including the regulatory, economic and market environments, length
of time and severity of the decline, and the financial health and specific
near term prospects of the issuer.
For all fixed maturities with cost in excess of their fair value, if this
excess was determined to be other-than-temporary, shareholders net
income for the year ended December 31, 2015 would have decreased
by approximately $142 million after-tax.
See Notes 2 (C) and 11 to the Consolidated Financial Statements for

additional discussion of our review of declines in fair value, including
information regarding our accounting policies for fixed maturities.
Segment Reporting
The following section of this MD&A discusses the results of each of
our reporting segments. In these segment discussions, we present
operating revenues, defined as total revenues excluding realized
investment results. We exclude realized investment results from this
measure because our 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. See Note 22 for the components of each segments operating

revenues.
We use adjusted income from operations as our principal financial
measure of operating performance because management believes it
best reflects the underlying results of our business operations and
permits analysis of trends in underlying revenue, expenses and
profitability. Beginning on January 1, 2015, we define adjusted
PART II
income from operations as shareholders net income (loss) excluding

after-tax realized investment gains and losses, net amortization of
other acquired intangible assets and special items. Prior period
segment information has been restated to reflect these new
performance metrics. Ratios presented in this segment discussion
exclude the same items as adjusted income from operations. Income
or expense amounts are excluded from adjusted income from
operations for the following reasons:
In 2013, adjusted income from operations also excluded the results of

the guaranteed minimum income benefit (GMIB) business prior to
the reinsurance transaction with Berkshire.
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.
As described in the Segment Reporting introduction on page 48, the

performance of the Global Health Care segment is measured using
adjusted income from operations. See Note 22 to the Consolidated
Financial Statements for the calculation of adjusted income from
operations for each segment. The key factors affecting adjusted
income from operations for this segment are:
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 Companys business
operations. The amortization amount is net of one-time benefits of
acquisitions in which the fair value of net assets acquired exceeds the
purchase price.
Special items, if any, are excluded because management believes they
are not representative of the underlying results of operations. See
Note 22 to the Consolidated Financial Statements for descriptions
of special items.
See MD&A Overview on page 35 for summarized financial results of

each of our reporting segments.
Global Health Care Segment
customer growth;
sales of specialty products;
operating expense as a percentage of operating revenues (operating
expense ratio); and
medical costs as a percentage of premiums (medical care ratio or
MCR) for our commercial and government businesses.
Results of Operations
For the Years Ended December 31, Increase/(Decrease) Increase/(Decrease)
2015
2014
2013
2015 vs. 2014
2014 vs. 2013
Financial Summary
(In millions)
Operating revenues
29,929 $
27,290 $
1,848 $
1,752 $
1,699 $
6.2%
6.4%
6.7%
(20)bps
(30)bps
Commercial
78.1%
78.5%
78.9%
(40)bps
(40)bps
Government
85.2%
84.3%
84.1%
90bps
20bps
Consolidated Global Health Care
80.9%
80.6%
80.8%
30bps
(20)bps
21.4%
21.4%
20.9%
bps
50bps
Adjusted margin
25,296 $ 2,639
96
10% $ 1,994
5% $
53
8%
3%
Medical Care Ratios:
Operating expense ratio
(Dollars in millions, customers in thousands)
Global Health Care medical claims payable
As of December 31,
2015
2014
2013
Increase/(Decrease) Increase/(Decrease)
2015 vs. 2014
2014 vs. 2013
2,355 $
2,180 $
2,050 $
175
2,502
2,534
2,496
(32)
567
518
492
49
8% $
130
6%
(1)%
38
2%
26
Customers:
Total commercial risk
Total government
Total risk
3,069
3,052
2,988
17
64
Service
11,930
11,404
11,090
526
314
TOTAL MEDICAL CUSTOMERS(1)
14,999
14,456
14,078
543
4%
378
3%
(1) 2013 excludes limited benefits customers.
PART II
Adjusted income from operations increased in 2015 compared with

2014, reflecting U.S. Commercial business growth, including
increased contributions from pharmacy, stop loss and other specialty
products. Results in 2015 also reflect the impact of increased
investments in business initiatives.
2013. This growth was primarily driven by increased specialty
contributions, partially offset by lower earnings in our government
segment. In addition, results included the impact of higher operating
expenses and lower margins in our U.S. commercial group risk
business.
Operating revenues. The increase in operating revenues in 2015,
compared with 2014 is primarily due to a higher customer base in our
government segment, as well as revenue growth in specialty businesses
and higher premiums in the U.S. commercial segment reflecting rate
actions on most risk products primarily to recover underlying medical
cost trends.
The increase in 2014 compared with 2013 was primarily driven by
growth in specialty businesses, higher premiums in the U.S.
commercial segment reflecting rate actions on most risk products to
recover underlying medical cost trends and taxes and fees mandated
by Health Care Reform, and a higher customer base in our individual
and Medicaid business. These increases were partially offset by lower

revenue due to our exit from the limited benefits business.
Medical care ratios. The Commercial medical care ratio decreased
slightly in 2015 compared with 2014 primarily due to improved
performance in our stop loss business. In 2014, the commercial
medical care ratio decreased slightly compared with 2013 due to rate
increases to cover new taxes and fees mandated by Health Care
Reform and improved performance in our specialty business, partially
offset by a higher medical care ratio in the U.S. Individual business
and our exit from the limited benefits business.
The Government medical care ratio increased in 2015 compared with
2014 due to an increase in Medicare Part D utilization. In 2014, the
Government medical care ratio increased slightly compared with 2013
due to higher Medicare Part D pharmacy costs offset by improved
per-member revenues in the Medicare Advantage business.
Operating expense ratio. The operating expense ratio was flat in
2015 compared with 2014, reflecting business-initiative investments
offset by higher revenue and disciplined expense management. The
operating expense ratio increased in 2014 compared with 2013
primarily due to the impact of Health Care Reform taxes and fees that
became effective in 2014.
Other Items Affecting Health Care Results
Global Health Care Medical Costs Payable

Medical costs payable is higher as of December 31, 2015 compared with 2014, primarily due to growth in the stop loss book of business and the
Government segment. See Note 5 to the Consolidated Financial Statements for additional information. Medical costs payable increased in 2014
compared with 2013, primarily driven by growth in the individual and stop loss books of business.
Medical Customers
A medical customer is defined as a person meeting any one of the following criteria:
is covered under an insurance policy or service agreement issued by us;
has access to the Companys provider network for covered services under their medical plan; or
has medical claims that are administered by us.
Our medical customer base as of December 31, 2015 was higher than 2014, driven by strong overall retention and sales in our targeted market
segments, as well as the acquisition of QualCare Alliance Networks, Inc. on February 28, 2015.
As required by Health Care Reform, we exited the limited benefits business effective December 31, 2013. Excluding this impact, our medical
customer base increased in 2014 compared with 2013, primarily driven by continued growth in our targeted market segments.
Global Supplemental Benefits Segment

As described in the Segment Reporting introduction on page 48, the performance of the Global Supplemental Benefits segment is measured using
adjusted income from operations. See Note 22 to the Consolidated Financial Statements for the calculation of adjusted income from operations
for each segment. The key factors affecting adjusted income from operations for this segment are:
premium growth, including new business and customer retention;
benefit expenses as a percentage of premiums (loss ratio);
operating expense and acquisition expense as a percentage of operating revenues (expense ratio and acquisition cost ratio); and
the impact of foreign currency movements.
Throughout this discussion and the table presented below, prior period currency adjusted income from operations and operating revenues are
calculated by applying the current periods exchange rates to reported results in the prior period. A strengthening U.S. Dollar against foreign
currencies will decrease segment earnings, while a weakening U.S. Dollar produces the opposite effect.
PART II
Financial Summary
(In millions)

2015
2014
2013
Increase/(Decrease)
2015 vs. 2014
Increase/(Decrease)
2014 vs. 2013
Operating revenues
3,149 $
3,005 $
2,639 $
144
5% $
366
14%
262 $
243 $
200 $
19
8% $
43
22%
Adjusted income from operations, using actual 2015 currency

exchange rates
262 $
217 $
189 $
45
21% $
28
15%
Operating revenues, using actual 2015 currency exchange rates
3,149 $
2,814 $
2,494 $
335
12% $
320
13%
8.3%
8.1%
7.6%
Adjusted margin
20 bps
50 bps
Loss ratio
55.3%
54.3%
52.5%
100 bps
180 bps
Acquisition cost ratio
19.3%
21.0%
22.8%
(170) bps
(180) bps
Expense ratio (excluding acquisition costs)
18.3%
17.7%
17.4%
60 bps
30 bps

2014 primarily due to business growth and lower acquisition costs,
partially offset by the unfavorable impact of foreign currency
movements and higher expense ratios as discussed below.
Other Items Affecting Global Supplemental Benefits

Results
South Korea is the single largest geographic market for our Global
Supplemental Benefits segment. South Korea generated 50% of the
segments revenues and 75% of the segments earnings in 2015. In
2015, our Global Supplemental Benefits segment operations in South
Korea represented 4% of our total consolidated revenues and 9.6% of
shareholders net income.
The increase in adjusted income from operations in 2014 compared

with 2013 was driven in part by a lower acquisition cost ratio and
continuing business growth, primarily in South Korea, partially offset
by a higher loss ratio driven by a business mix shift and higher
incurred claims. 2014 results also included favorable tax-related items
of $21 million recorded in the third quarter of 2014.
Significant movements in foreign currency exchange rates could

materially affect the reported results of the Global Supplemental
Benefits segment.
Operating revenues were higher in both 2015 and 2014 compared

with each prior year, primarily attributable to new sales, particularly in
South Korea and the U.S. reflecting both customer growth and sales
of higher premium products. The increase in 2015 was partially offset
by the unfavorable impact of foreign currency movements.
Group Disability and Life Segment

As described in the Segment Reporting introduction on page 48, the
performance of the Group Disability and Life segment is measured
using adjusted income from operations. See Note 22 to the
Consolidated Financial Statements for the calculation of adjusted
income from operations for each segment. The key factors affecting
adjusted income from operations for this segment are:
Loss ratios increased in 2015 and 2014 compared with each prior
year. The increase is due primarily to a business mix shift toward
products with higher expected loss ratios in South Korea and the U.S.
Acquisition cost ratios decreased in both 2015 and 2014 compared
with each prior year. The decline in each years ratio largely represents
a shift toward higher premium products with lower acquisition costs
primarily in South Korea and the U.S.
premium growth, including new business and customer retention;

net investment income;
The expense ratio (excluding acquisition costs) increased in both

2015 and 2014 compared with each prior year reflecting strategic
business investments partially offset by operating efficiencies.
benefit expenses as a percentage of premiums (loss ratio); and

operating expense as a percentage of operating revenues excluding
net investment income (expense ratio).
Financial Summary
(In millions)

2015
2014
2013
Increase/(Decrease)
2015 vs. 2014
Increase/(Decrease)
2014 vs. 2013
Operating revenues
4,271 $
3,970 $
3,747 $
301
8% $
223
6%
324 $
317 $
311 $
2% $
2%
Adjusted margin
7.6%
8.0%
8.3%
(40) bps
(30) bps
Loss ratio
76.3%
76.5%
76.0%
(20) bps
50 bps
Operating expense ratio
21.9%
21.9%
22.2%
bps
(30) bps
PART II

2014 due primarily to favorable life claims experience. Results also
included the favorable after-tax effects of reserve reviews of
$55 million in 2015 compared with $52 million in 2014.
The loss ratio decreased in 2015 compared with 2014 due to lower
life claim incidence. The loss ratio increased in 2014 compared with
2013 due to higher disability claim costs including the effect of a
lower discount rate, partially offset by lower life new claim incidence.
The increase in adjusted income from operations in 2014 compared

with 2013 reflected favorable life results, higher net investment
income and a lower expense ratio partially offset by higher disability
claim costs largely due to a lower discount rate. Disability claim costs
were lower in 2013 in part due to the $29 million favorable after-tax
effect of a higher discount rate on claims incurred in 2013, resulting
from the reallocation of higher yielding assets to the disability and life
portfolio that had previously supported liabilities in the run-off
reinsurance business. The favorable after-tax effects of reserve reviews
were $52 million in 2014 and $60 million in 2013.
Operating expense ratio. The operating expense ratio was flat in

2015 compared with 2014 and lower in 2014 compared to 2013
driven by effective cost management.
Operating revenues. The increases in both 2015 and in 2014

reflected premiums from new business growth due to disability and
life sales. Net investment income also increased in both 2015 and in
2014 primarily due to higher average assets partially offset by lower
yields.
Other Operations
Cignas corporate-owned life insurance (COLI) business contributes
the majority of earnings in Other Operations. Cignas Other
Operations segment also includes the results from the run-off
reinsurance and settlement annuity businesses, as well as the
remaining deferred gains recognized from the sale of the individual life
insurance and annuity and retirement benefits businesses.
2015
2014
2013
Financial Summary
(In millions)
Increase/(Decrease)
2015 vs. 2014
Increase/(Decrease)
2014 vs. 2013
Operating revenues
485 $
510 $
489 $
(25)
(5)% $
21
4%
75 $
68 $
88 $
10% $
(20)
(23)%
Adjusted Margin
15.5%

2014, reflecting favorable mortality experience in COLI. In 2014,
adjusted income from operations decreased compared with 2013,
primarily reflecting the absence of the $14 million favorable impact of
the Internal Revenue Service (IRS) examinations of our 2009-2010
federal tax returns completed during the third quarter of 2013 and
unfavorable COLI mortality experience in 2014.
Operating revenues. The decrease in operating revenues in 2015
compared with 2014 is largely due to lower net investment income
13.3%
18.0%
220 bps
(470) bps
driven by lower investment yields and, to a lesser extent, lower

premiums in COLI driven by favorable experience-rating impacts.
In 2014, the increase in operating revenues compared with 2013
largely reflects the absence of $39 million in losses recorded in 2013
associated with a dynamic hedge program for the run-off reinsurance
business that was discontinued with the effective exit from the
GMDB and GMIB business. This impact is partially offset by a
decrease in net investment income due to selling or reallocating
investment assets in 2013 as a result of the reinsurance transaction
with Berkshire.
Corporate
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, expense associated with our frozen pension plans and certain overhead and
project costs.
(In millions)

2015
2014
2013
ADJUSTED LOSS FROM OPERATIONS
Financial Summary
(253) $
Corporates adjusted loss from operations decreased in 2015

compared with 2014, primarily due to lower pension and interest
expenses.
Corporates adjusted loss from operations increased in 2014 compared
with 2013, primarily due to increased taxes related to certain
(265) $
Increase/(Decrease)
2015 vs. 2014
(222) $
12
5% $
Increase/(Decrease)
2014 vs. 2013
(43)
(19)%
employee stock compensation costs that are not deductible for income
tax purposes under Health Care Reform.
PART II
Investment Assets
The following table presents our invested asset portfolio, excluding separate account assets, as of December 31, 2015 and 2014. Additional
information regarding our investment assets and related accounting policies is included in Notes 2, 10, 11, 12, 13, 14 and 17 to the Consolidated
(In millions)
Fixed maturities
Equity securities
2015
19,455
2014
18,983
190
189
1,864
2,081
Policy loans
1,419
1,438
Other long-term investments
1,404
1,488
381
TOTAL
24,713
163
$
24,342
Fixed Maturities
Investments in fixed maturities include publicly traded and privately placed debt securities, mortgage and other asset-backed securities, and
preferred stocks redeemable by the investor. These investments are classified as available for sale and are carried at fair value on our balance sheet.
Additional information regarding valuation methodologies, key inputs and controls is included in Note 10 of the Consolidated Financial
Statements.
The following table reflects our fixed maturity portfolio by type of issuer as of December 31, 2015 and 2014.
(In millions)
Federal government and agency
State and local government
1,641
Foreign government
Corporate
Mortgage-backed
Other asset-backed
TOTAL
2015
779
2014
954
1,856
2,014
1,940
14,448
13,498
49
85
524
650
19,455
18,983
The fixed maturity portfolio increased modestly during 2015,

reflecting a strategic increase in investment in fixed maturities,
partially offset by decreased valuations due to the impact of increased
market yields. Although overall asset values are well in excess of
amortized cost, there are specific securities with amortized cost in
excess of fair value by $219 million in aggregate as of December 31,
2015. See Note 11 to the Consolidated Financial Statements for
further information.
We invest in high quality foreign government obligations, with an

average quality rating of Aa3 as of December 31, 2015. These
investments are primarily concentrated in Asia consistent with the
geographic distribution of our international business operations.
Foreign government obligations also include $205 million of
investments in European sovereign debt, none of which are in
countries with significant political or economic concerns (Portugal,
Italy, Ireland, Greece, and Spain).
As of December 31, 2015, $17.5 billion, or 89%, of the fixed

maturities in our investment portfolio were investment grade (Baa and
above, or equivalent), and the remaining $2.0 billion were below
investment grade. The majority of the bonds that are below
investment grade are rated at the higher end of the non-investment
grade spectrum. These quality characteristics have not materially
changed from the prior year.
As of December 31, 2015, corporate fixed maturities included private

placement investments of $5.2 billion that are generally less
marketable than publicly-traded bonds. However, yields on these
investments tend to be higher than yields on publicly-traded bonds
with comparable credit risk. We perform a credit analysis of each
issuer, diversify investments by industry and issuer and require
financial and other covenants that allow us to monitor issuers for
deteriorating financial strength and pursue remedial actions, if
warranted. Corporate fixed maturities include $341 million of
investments in companies that are domiciled or have significant
business interests in Italy, Ireland, and Spain. These investments have
an average quality rating of Baa3 and are diversified by industry sector,
including approximately 6% invested in financial institutions.
Corporate fixed maturities also include investments in the energy and
Our investment in state and local government securities, with an

average quality rating of Aa2 is diversified by issuer and geography
with no single exposure greater than $30 million. We assess each
issuers credit quality based on a fundamental analysis of underlying
financial information and do not rely solely on statistical rating
organizations or monoline insurer guarantees.
PART II
natural gas sector of $1.5 billion with gross unrealized losses of

$59 million. These investments have an average quality rating of Baa1
and are diversified by issuer with no single exposure greater than
$35 million.
We have approximately $25 million of aggregate corporate fixed
maturity investments in China-based companies. In addition to
amounts classified in fixed maturities on our Consolidated Balance
Sheet, we operate a joint venture in China in which we have a 50%
ownership interest. We account for this joint venture on the equity
basis of accounting and report it in other assets, including other
intangibles. This entity has an investment portfolio of approximately
$2 billion that is primarily invested in diversified corporate fixed
maturities and has no investments with a material unrealized loss as of
December 31, 2015.
Commercial Mortgage Loans

Our commercial mortgage loans are fixed rate loans, diversified by
property type, location and borrower. Loans are secured by high
quality commercial properties and are generally made at less than 70%
of the propertys value at origination of the loan. Property value, debt
service coverage, quality, building tenancy and stability of cash flows
are all important financial underwriting considerations. We hold no
direct residential mortgage loans and do not securitize or service
mortgage loans.
We completed an annual in-depth review of our commercial mortgage
loan portfolio during the second quarter of 2015. This review
included an analysis of each propertys year-end 2014 financial
statements, rent rolls, operating plans and budgets for 2015, a physical
inspection of the property and other pertinent factors. Based on
property values and cash flows estimated as part of this review and
subsequent fundings and repayments, the portfolios average
loan-to-value ratio improved to 58% at December 31, 2015, from
63% as of December 31, 2014, and the portfolios average debt service
coverage ratio also improved to 1.78 at December 31, 2015 from 1.66
as of December 31, 2014. These improvements reflect payoffs of loans
with below average debt service coverage ratios and high loan to value
ratios, as well as increased operating income and value across most
underlying properties. See Note 11 to the Consolidated Financial
Statements for further information.
Commercial real estate capital markets remain very active for
well-leased, quality commercial real estate located in strong
institutional investment markets. The vast majority of properties
securing the mortgages in our mortgage portfolio possess these
characteristics.
The $1.9 billion commercial mortgage loan portfolio consists of
approximately 65 loans. The portfolio includes three impaired loans
with a carrying value totaling $98 million, net of $15 million in
reserves, that are classified as problem or potential problem loans. We
have $205 million of loans maturing in the next twelve months. Given
the quality and diversity of the underlying real estate, positive debt
service coverage and significant borrower cash investment or equity
value averaging 30%, we remain confident that borrowers will
continue to perform as expected under their contract terms.
Other Long-term Investments

Other long-term investments of $1.4 billion primarily include
investments in security partnership and real estate funds as well as
direct investments in real estate joint ventures. The funds typically
invest in mezzanine debt or equity of privately held companies
(securities partnerships) and equity real estate. Given our subordinate
position in the capital structure of these underlying entities, we
assume a higher level of risk for higher expected returns. To mitigate
risk, investments are diversified across approximately 105 separate
partnerships, and approximately 65 general partners who manage one
or more of these partnerships. Also, the funds underlying investments
are diversified by industry sector or property type, and geographic
region. No single partnership investment exceeds 6% of our securities
and real estate partnership portfolio.
Problem and Potential Problem Investments

Problem bonds and commercial mortgage loans are either
delinquent by 60 days or more or have been restructured as to terms,
including concessions by us for modification of interest rate, principal
payment or maturity date. Potential problem bonds and commercial
mortgage loans are considered current (no payment is more than
59 days past due), but management believes they have certain
characteristics that increase the likelihood that they may become
problems. The characteristics management considers include, but are
not limited to, the following:
request from the borrower for restructuring;
principal or interest payments past due by more than 30 but fewer
than 60 days;
downgrade in credit rating;
collateral losses on asset-backed securities; and
for commercial mortgages, deterioration of debt service coverage
below 1.0 or value declines resulting in estimated loan-to-value
ratios increasing to 100% or more.
We recognize interest income on problem bonds and commercial
mortgage loans only when payment is actually received because of the
risk profile of the underlying investment. The amount that would
have been reflected in net income if interest on non-accrual
investments had been recognized in accordance with the original
terms was not significant for 2015 or 2014.
PART II
The following table shows problem and potential problem investments at amortized cost, net of valuation reserves and write-downs:
December 31, 2015
Gross
Reserve
(In millions)
Problem bonds
Problem commercial mortgage loans

Foreclosed real estate
(1)
December 31, 2014

Gross
Reserve
Net
2
Net
90
(11)
79
90
(4)
86
24
24
TOTAL PROBLEM INVESTMENTS
93
(12)
81
114
(4)
110
Potential problem bonds
55
(23)
32
22
(9)
13
Potential problem commercial mortgage loans

TOTAL POTENTIAL PROBLEM INVESTMENTS
64
$
Net problem and potential problem investments representing less

than 1% of total investments, excluding policy loans at December 31,
2015, decreased by $72 million from December 31, 2014, primarily
due to the payoffs of four potential problem mortgage loans and the
sale of the remaining foreclosed property.
Investment Outlook
Global financial markets have exhibited continued volatility,
including modest depreciation of fixed income asset values. This
volatility reflects increasing global economic uncertainty, led by
concerns about Chinas decelerating economic growth as well as the
negative and potentially destabilizing impacts from cyclically low and
falling energy prices. Future realized and unrealized investment results
119
(4)
$
(27)
60
$
92
130
$
152
(8)
$
(17)
122
$
135
will be driven largely by market conditions that exist when a

transaction occurs or at the reporting date. These future conditions
are not reasonably predictable. We believe that the vast majority of our
fixed maturity investments will continue to perform under their
contractual terms and that the commercial mortgage loan portfolio is
positioned to perform well due to its solid aggregate loan-to-value
ratio and strong debt service coverage. Based on our strategy to match
the duration of invested assets to the duration of insurance and
contractholder liabilities, we expect to hold a significant portion of
these assets for the long term. Although future impairment losses
resulting from interest rate movements and credit deterioration due to
both company-specific and the global economic uncertainties
discussed above remain possible, we do not expect these losses to have
a material adverse effect on our financial condition or liquidity.
Market Risk
Financial Instruments
Our assets and liabilities include financial instruments subject to the
risk of potential losses from adverse changes in market rates and
prices. Our primary market risk exposures are:
Interest-rate risk on fixed-rate, medium-term instruments.
Changes in market interest rates affect the value of instruments that
promise a fixed return and our employee pension liabilities.
Foreign currency exchange rate risk of the U.S. dollar primarily to
the South Korean won, Euro, Chinese yuan renminbi, Taiwan
dollar and British pound. An unfavorable change in exchange rates
reduces the carrying value of net assets denominated in foreign
currencies.
Our Management of Market Risks

We predominantly rely on three techniques to manage our exposure
to market risk:
Investment/liability matching. We generally select investment
assets with characteristics (such as duration, yield, currency and
liquidity) that correspond to the underlying characteristics of our
related insurance and contractholder liabilities so that we can match
the investments to our obligations. Shorter-term investments

generally support shorter-term life and health liabilities.
Medium-term, fixed-rate investments support interest-sensitive and
health liabilities. Longer-term investments generally support
products with longer pay out periods such as annuities and
long-term disability liabilities.
Use of local currencies for foreign operations. We generally
conduct our international business through foreign operating
entities that maintain assets and liabilities in local currencies. While
this technique does not reduce foreign currency exposure on our net
assets, it substantially limits exchange rate risk to those net assets.
Use of derivatives. We use derivative financial instruments to
minimize certain market risks. In 2014, we entered into interest rate
swap contracts to convert a portion of our interest rate exposure on
long-term debt from fixed rates to variable rates to more closely
align interest expense with interest income received on our cash
equivalent and short-term investment balances.
See Notes 2(C) and 12 to the Consolidated Financial Statements for
additional information about financial instruments, including
derivative financial instruments.
PART II
Effect of Market Fluctuations

The examples that follow illustrate the adverse effect of hypothetical
changes in market rates or prices on the fair value of certain financial
instruments including:
a hypothetical increase in market interest rates, primarily for fixed
maturities and commercial mortgage loans, partially offset by
liabilities for long-term, largely fixed-rate debt; and
a hypothetical strengthening of the U.S. dollar to foreign currencies,
primarily for the net assets of foreign subsidiaries denominated in a
foreign currency.
Management believes that actual results could differ materially from
these examples because:
changes in the fair values of all insurance-related assets and liabilities

have been excluded because their primary risks are insurance rather
than market risk;
changes in the fair values of investments recorded using the equity
method of accounting and liabilities for pension and other
postretirement and postemployment benefit plans (and related
assets) have been excluded, consistent with the disclosure guidance;
and
changes in the fair values of other significant assets and liabilities
such as goodwill, deferred policy acquisition costs, taxes, and various
accrued liabilities have been excluded; because they are not financial
instruments, their primary risks are other than market risk.
these examples were developed using estimates and assumptions;

The effects of hypothetical changes in market rates or prices on the fair values of certain of our financial instruments, subject to the exclusions
noted above (particularly insurance liabilities), would have been as follows as of December 31:
Loss in fair value
2015
2014
Market scenario for certain non-insurance financial instruments (in millions)

100 basis point increase in interest rates
865
850
10% strengthening in U.S. dollar to foreign currencies
340
320
The effect of a hypothetical increase in interest rates was determined

by estimating the present value of future cash flows using various
models, primarily duration modeling. The impact of a hypothetical
increase to interest rates at December 31, 2015 was greater than that
at December 31, 2014 reflecting increased purchases of longer
duration assets, partially offset by valuation decreases resulting from
higher market yields of fixed maturities during 2015.
The effect of a hypothetical strengthening of the U.S. dollar relative to
the foreign currencies held by us was estimated to be 10% of the U.S.
dollar equivalent fair value. Our foreign operations hold investment

assets, such as fixed maturities, cash, and cash equivalents, that are
generally invested in the currency of the related liabilities. The effect
of a hypothetical 10% strengthening in the U.S. dollar to foreign
currencies at December 31, 2015 was greater than that effect at
December 31, 2014 due to increased amounts of investments that are
primarily denominated in the South Korean won.
PART II
ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk
ITEM 7A. Quantitative and Qualitative Disclosures About

Market Risk
The information contained under the caption Market Risk in the MD&A section of this Form 10-K is incorporated by reference.
ITEM 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm
To the Board of Directors
and Shareholders of Cigna Corporation
In our opinion, the accompanying consolidated balance sheets and
the related consolidated statements of income, comprehensive
income, changes in total equity and cash flows present fairly, in all
material respects, the financial position of Cigna Corporation and its
subsidiaries at December 31, 2015 and 2014, and the results of their
operations and their cash flows for each of the three years in the period
ended December 31, 2015 in conformity with accounting principles
generally accepted in the United States of America. Also in our
opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2015,
based on criteria established in Internal Control Integrated
Framework 2013 issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). The
Companys management is responsible for these financial statements,
for maintaining effective internal control over financial reporting and
for its assessment of the effectiveness of internal control over financial
reporting, included in Managements Annual Report on Internal
Control over Financial Reporting appearing under Item 9A. Our
responsibility is to express opinions on these financial statements and
on the Companys internal control over financial reporting based on
our integrated audits. We conducted our audits in accordance with
the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement and whether effective
internal control over financial reporting was maintained in all material
respects. Our audits of the financial statements included examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management and evaluating the overall
financial statement presentation. Our audit of internal control over
financial reporting included obtaining an understanding of internal
control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audits
also included performing such other procedures as we considered
necessary in the circumstances. We believe that our audits provide a
reasonable basis for our opinions.
A companys internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
principles. A companys internal control over financial reporting
includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with
authorizations of management and directors of the company; and
(iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the financial
statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 25, 2016
PART II
Cigna Corporation
Consolidated Statements of Income
(In millions, except per share amounts)
For the years ended December 31,
2015
2014
2013
Revenues
Premiums
29,642
27,214
25,575
4,488
4,141
3,601
1,153
1,166
1,164
2,536
2,239
1,827
(112)
(36)
(11)
169
190
224
57
154
213
37,876
34,914
32,380
18,354
16,694
15,867
4,936
4,640
4,998
Mail order pharmacy costs
2,134
1,907
1,509
8,982
8,174
7,595
143
195
235
34,549
31,610
30,204
3,327
3,304
2,176
1,229
1,232
501
21
(22)
197
1,250
1,210
698
2,077
2,094
1,478
(17)
(8)
Realized investment gains (losses):

Other-than-temporary impairments on fixed maturities
Other realized investment gains, net
TOTAL REVENUES
Benefits and Expenses
Global Health Care medical costs
Amortization of other acquired intangible assets, net

TOTAL BENEFITS AND EXPENSES
Income before Income Taxes
Income taxes (benefits):
Current
Deferred
TOTAL TAXES
Net Income
Less: Net Income (Loss) Attributable to Noncontrolling Interests
2,094
2,102
1,476
Basic
8.17
7.97
5.28
Diluted
8.04
7.83
5.18
Dividends Declared Per Share
0.04
0.04
0.04
Shareholders Net Income Per Share:
The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.
PART II
Cigna Corporation
Consolidated Statements of Comprehensive Income
(In millions)

2015
$
2,094
2014
$
2,102
2013
$
1,476
Shareholders other comprehensive income (loss):

Net unrealized appreciation (depreciation) on securities
Net unrealized appreciation on derivatives
Net translation of foreign currencies
Postretirement benefits liability adjustment
(202)
143
(410)
15
11
(212)
(144)
13
85
(426)
539
Shareholders other comprehensive income (loss)
(314)
(416)
151
Shareholders comprehensive income
1,780
1,686
1,627
Comprehensive income attributable to noncontrolling interests:

Net income (loss) attributable to redeemable noncontrolling interests
(6)
Net loss attributable to other noncontrolling interests
(11)
(9)
Other comprehensive (loss) attributable to redeemable noncontrolling interests
(17)
(7)
(19)
(1)
Other comprehensive income (loss) attributable to other noncontrolling interests

TOTAL COMPREHENSIVE INCOME
1,745
1,672
1,610
PART II
Cigna Corporation
Consolidated Balance Sheets
As of December 31,
ASSETS
2015
2014
Investments:
Fixed maturities, at fair value (amortized cost, $18,456; $17,278)
Equity securities, at fair value (cost, $190; $199)
19,455
18,983
190
189
1,864
2,081
Policy loans
1,419
1,438
1,404
1,488
381
163
Total investments
24,713
24,342
1,968
1,420
Premiums, accounts and notes receivable, net
3,694
2,757
Reinsurance recoverables
6,813
7,080
Deferred policy acquisition costs
1,659
1,502
Property and equipment
1,534
1,502
Deferred tax assets, net
379
293
Goodwill
6,019
5,989
Other assets, including other intangibles
2,476
2,657
Separate account assets
7,833
8,328
TOTAL ASSETS
57,088
55,870
8,443
8,430
LIABILITIES
Contractholder deposit funds
Future policy benefits
9,479
9,642
Unpaid claims and claim expenses
4,574
4,400
2,355
2,180
Unearned premiums
Total insurance and contractholder liabilities
Accounts payable, accrued expenses and other liabilities
629
621
25,480
25,273
6,493
6,264
Short-term debt
149
147
Long-term debt
5,020
4,979
Separate account liabilities
7,833
8,328
TOTAL LIABILITIES
44,975
44,991
69
90
Contingencies Note 23
Redeemable noncontrolling interests
SHAREHOLDERS EQUITY
Common stock (par value per share, $0.25; shares issued, 296; authorized, 600)
Additional paid-in capital
Accumulated other comprehensive loss
74
74
2,859
2,769
(1,250)
(936)
Retained earnings
12,121
10,289
Less: treasury stock, at cost
(1,769)
(1,422)
12,035
10,774
TOTAL SHAREHOLDERS EQUITY

Noncontrolling interests
Total equity
Total liabilities and equity
SHAREHOLDERS EQUITY PER SHARE
15
12,044
10,789
57,088
55,870
46.91
41.55
PART II
Cigna Corporation
Consolidated Statements of Changes in Total Equity
Balance at January 1, 2013
2013 Activity:
Effect of issuing stock for employee benefit plans
Effects of acquisition of joint venture
Other comprehensive income (loss)
Net income
Common dividends declared (per share: $0.04)
Repurchase of common stock
Other transactions impacting noncontrolling interests
Accumulated
Additional
Other
Common
Paid-in Comprehensive Retained Treasury Shareholders Noncontrolling
Stock
Capital
Loss Earnings
Stock
Equity
Interest
$
92 $
3,295 $
(671) $ 12,330 $ (5,277) $
61
(119)
243
9,769 $
$ 9,769 $
185
14
151
1,476
(11)
(1,003)
BALANCE AT DECEMBER 31, 2013
92
2014 Activity:
Other comprehensive income (loss)
Net income (loss)
Retirement of treasury stock
3,356
(520)
69
(6,037)
10,567
(124)
220
165
(416)
2,102
(11)
(1,629)
(4)
74
2,769
(7)
96
15
10,789
(314)
(1)
(315)
(17)
2,094
2,094
(11)
2,083
(6)
(10)
(10)
(5,354)
(936)
10,581
6
(19)
2
2,102
(11)
(652)
(4)
14
185
14
151
1,476
(11)
(1,003)
114
165
(415)
2,093
(11)
(1,629)
(416)
(18)
151
1,476
(11)
(1,003)
13,676
Redeemable
Total Noncontrolling
Equity
Interests
(1,629)
6,024
10,289
(1,422)
(252)
336
10,774
1
(9)
(7)
1
90
2015 Activity:
99
Other comprehensive (loss)
(314)
Net income (loss)

(683)

(9)
$
74 $
2,859 $
(1,250) $ 12,121 $(1,769) $
183
(10)
(683)
(9)
183
12,035 $
(683)
6
(3)
9 $ 12,044 $
2
69
PART II
Cigna Corporation
Consolidated Statements of Cash Flows
(In millions)
2015
2014
2013
Cash Flows from Operating Activities

Net income
2,077
2,094
1,478
Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization
585
588
597
Realized investment gains, net
(57)
(154)
(213)
21
(22)
197
(945)
(780)
(110)
55
22
369
(182)
(176)
(227)
16
(265)
405
657
457
1,040
(483)
Deferred income taxes

Net changes in assets and liabilities, net of non-operating effects:
Premiums, accounts and notes receivable
Deferred policy acquisition costs
Other assets
Insurance liabilities
Accounts payable, accrued expenses and other liabilities
423
202
Current income taxes
(25)
111
(56)
(2,196)
Cash used to exit the run-off reinsurance business

Loss on extinguishment of debt
100
(8)
(83)
(82)
2,717
1,994
719
1,555
1,769
1,775
1,435
1,640
1,621
640
453
653
1,297
2,706
1,661
(4,234)
(5,424)
(3,062)
(500)
(287)
(58)
(1,183)
(2,115)
(1,930)
Property and equipment purchases
(510)
(473)
(527)
Acquisitions, net of cash acquired
(99)
(76)
(24)
(42)
(1,599)
(1,755)
15
Other, net
NET CASH PROVIDED BY OPERATING ACTIVITIES
Cash Flows from Investing Activities
Proceeds from investments sold:
Fixed maturities and equity securities
Investment maturities and repayments:
Other sales, maturities and repayments (primarily short-term and other long-term investments)
Investments purchased or originated:
Other (primarily short-term and other long-term investments)
Other, net
NET CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES
Cash Flows from Financing Activities
Deposits and interest credited to contractholder deposit funds
1,429
1,482
1,399
(1,359)
(1,456)
(1,358)
Net change in short-term debt
(21)
(112)
(101)
Net proceeds on issuance of long-term debt
894
Repayment of long-term debt
(938)
(15)
Withdrawals and benefit payments from contractholder deposit funds
(671)
(1,612)
(1,003)
Issuance of common stock
154
110
150
Other, net
(18)
(2)
(530)
(1,582)
(930)
NET CASH USED IN FINANCING ACTIVITIES

Effect of foreign currency rate changes on cash and cash equivalents
(40)
(32)
13
Net increase / (decrease) in cash and cash equivalents
548
(1,375)
(183)
Cash and cash equivalents, January 1,

Cash and cash equivalents, December 31,
1,420
$
1,968
Income taxes paid, net of refunds
Interest paid
2,795
2,978
1,420
2,795
1,194
1,085
519
245
259
265
Supplemental Disclosure of Cash Information:
PART II
Notes to the Consolidated Financial Statements

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, Cignas strategy is to Go Deep,
Go Global and Go Individual 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 U.S. and selected international markets. In
addition to these ongoing operations, Cigna also has certain run-off
operations.
NOTE 2 Summary of Significant Accounting Policies

A.
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 managements 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. As of December 31, 2015 and 2014, the
Company determined it was not a primary beneficiary in any material
variable interest entities.
B.
Recent Accounting Changes
Leases (Accounting Standards Update (ASU) 2016-02). The

Financial Accounting Standards Board (FASB) amended lease
accounting requirements to begin recording assets and liabilities
arising from leases on the balance sheet. The new guidance will also
require significant additional disclosures about the amount, timing
and uncertainty of cash flows from leases. This new guidance will
become effective beginning January 1, 2019 using a modified
restatement approach for leases in effect as of and after the date of
adoption. Early adoption and certain practical expedients to measure
the effect of adoption will also be allowed. While the Company is
evaluating this new guidance to determine its timing and method of
adoption and the estimated effects on its consolidated financial
statements, assets and liabilities arising from leases are expected to
increase based on the present value of remaining estimated lease
payments at the time of adoption.
Recognition and Measurement of Financial Assets and Financial

Liabilities (ASU 2016-01). In January 2016 the FASB issued
guidance that will require entities to measure equity securities at fair
value in net income if they are not consolidated or accounted for
under the equity method. The new guidance also changes the
presentation and disclosure requirements for financial instruments. In
addition, the FASB clarified guidance for assessing the valuation
allowance when recognizing deferred tax assets from unrealized losses
on available-for-sale debt securities. The accounting for other
financial instruments, such as loans, investments in debt securities,
and financial liabilities was left largely unchanged. The new standard
will be effective beginning January 1, 2018 and will be recognized as a
cumulative adjustment to the beginning balance of retained earnings.
If adopted as of December 31, 2015, the impact of this new guidance
would have resulted in a cumulative effect adjustment to retained
earnings of less than $10 million representing unrealized gains on
equity securities that would be reclassified from accumulated other
comprehensive income. The actual cumulative effect adjustment will
depend on the portfolio and market conditions as of the date of
implementation.
Disclosures about Short-Duration Insurance Contracts (ASU
2015-09). In May 2015, the FASB issued final guidance to enhance
disclosure requirements for short-duration insurance contracts. The
disclosures require more transparent information about an insurance
entitys initial claim estimates and subsequent adjustments to those
estimates, methodologies and judgments in estimating claims, and the
timing, frequency and severity of claims. The impact of adoption is
limited to increased disclosures including most insurance liabilities of
the Global Health Care and Group Disability and Life segments. The
Company plans to adopt the new disclosures, as required, in its 2016
annual financial statements.
Simplifying the Presentation of Debt Issuance Costs (ASU
2015-03). In the fourth quarter of 2015, the Company implemented
the FASBs April 2015 amended guidance to simplify the presentation
of debt issuance costs by reclassifying debt issuance costs from other
assets, including other intangibles, to long-term debt. Amounts
PART II
reported as of December 31, 2014 have been retrospectively adjusted.

The effect was not material to either caption.
Revenue from Contracts with Customers (ASU 2014-09). In May
2014, the FASB issued new revenue recognition guidance that will
apply to various contracts with customers to provide goods or services,
including the Companys non-insurance, administrative services
contracts. It will not apply to certain contracts within the scope of
other GAAP, such as insurance contracts. This new guidance
introduces a model that requires companies to estimate and allocate
the expected contract revenue among distinct goods or services in the
contract based on relative standalone selling prices. Revenue is
recognized as goods or services are delivered. This new method
replaces the current GAAP approach of recognizing revenue that is
fixed and determinable primarily based on contract terms. In
addition, extensive new disclosures will be required including the
presentation of additional categories of revenues and information
about related contract assets and liabilities. This new guidance must
be implemented on January 1, 2018; early adoption is permitted only
as of January 1, 2017. The Company may choose to adopt these
changes through retrospective restatement with or without using
certain practical expedients or with a cumulative effect adjustment on
adoption. The Company continues to monitor developing
implementation guidance and evaluate these new requirements for its
non-insurance customer contracts to determine its method and
timing of implementation and any resulting estimated effects on its
financial statements.
Amendments to the Consolidation Analysis (ASU 2015-02). In
February 2015, the FASB issued guidance to improve targeted areas of
consolidation guidance for legal entities such as limited partnerships,
limited liability companies and securitization structures. Among other
provisions, the consolidation guidance specific to limited partnerships
is eliminated and consolidation by a general partner is no longer
presumed. The new guidance applies retrospectively, with a
cumulative effect adjustment to beginning Retained earnings at the
date of adoption or through restatement of financial statements of
comparative periods presented. Effective on January 1, 2016 this
guidance is expected to have no material effect on the Companys
financial statements at adoption. Additional disclosures will be
provided beginning in 2016 about various real estate and security
limited partnerships to be newly identified as variable interest entities
for which the Company is not the primary beneficiary.
Fees Paid to the Federal Government by Health Insurers (ASU
2011-06). Effective January 1, 2014, the Company adopted the
FASBs accounting guidance for the health insurance industry
assessment (the tax) mandated by the Patient Protection and
Affordable Care Act (referred to as Health Care Reform). This
non-deductible tax is being levied based on a ratio of an insurers net
health insurance premiums written for the previous calendar year
compared to the U.S. health insurance industry total. As required by
the guidance, the Company reports a liability at the beginning of each
year (accounts payable, accrued expenses and other liabilities) and a
corresponding deferred cost (other assets, including other intangibles)
based on a preliminary assessment of the full year tax. The Company
recognizes the tax in operating expenses on a straight line basis over
the year, reduces the deferred cost correspondingly and pays the tax
during the third quarter of each year. The Company recognized

operating expenses of $311 million in 2015 and $238 million in 2014
for the tax.
Investment Company Accounting (ASU 2013-08). Effective
January 1, 2014, the Company adopted the FASBs amended
accounting guidance to change the criteria for reporting as an
investment company, clarify the fair value measurement used by an
investment company and require additional disclosures. This
guidance also confirms that parent company accounting for an
investment company should reflect fair value accounting. While this
guidance applies to certain of the Companys security and real estate
partnership investments, its adoption did not have a material impact
on the Companys financial statements.
C.
Investments
Fixed maturities and equity securities. 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. 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.
Commercial mortgage loans. These loans are made exclusively to
commercial borrowers at a fixed rate of interest. 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.
If the fair value of the underlying real estate is less than unpaid
principal of an impaired loan, a valuation reserve is recorded.
Commercial mortgage loans are considered impaired when it is
probable that the Company will not collect amounts due according to
the terms of the original loan agreement. The Company monitors
credit risk and assesses the impairment of loans individually and on a
consistent basis for all loans in the portfolio. 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.
PART II
Policy loans. Policy loans are carried at unpaid principal balances plus
accumulated interest, the total of which approximates fair value. The
loans are collateralized by life insurance policy cash values and
therefore have no exposure to credit loss. Interest rates are reset
annually based on an index.
Other long-term investments. 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 Companys 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, 2015 and 2014 is expected to be held
longer than one year and includes real estate acquired through the
foreclosure of commercial mortgage loans.
hedge ineffectiveness). The Company generally reports hedge

ineffectiveness in realized investment gains and losses.
On early termination, the changes in fair value of derivatives that
qualified for hedge accounting are reported in shareholders net
income (generally as part of realized investment gains and losses).
Net investment income. 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.
Investment gains and losses. 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.
Unrealized gains and losses on fixed maturities and equity securities
carried at fair value and certain derivatives are included in
accumulated other comprehensive income (loss), net of deferred
income taxes and amounts required to adjust future policy benefits for
the run-off settlement annuity business.
D.
Cash and Cash Equivalents
Additionally, other long-term investments include interest rate and

foreign currency swaps carried at fair value. See Note 12 for
information on the Companys accounting policies for these derivative
financial instruments.
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.
Short-term investments. Security investments with maturities of

greater than 90 days but less than one year from time of purchase are
classified as short-term, available for sale and carried at fair value, that
approximates cost.
E.
Derivative financial instruments. 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.
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 $78 million as of December 31, 2015
and $105 million as of December 31, 2014. The Company estimates
these allowances for doubtful accounts and unrecoverable reinsurance
using managements best estimates of collectability, taking into
consideration the age of the outstanding amounts, historical
collection patterns and other economic factors.
The Company accounts for derivative instruments as follows:

Derivatives are reported on the balance sheet at fair value with
changes in fair values reported in shareholders net income or
accumulated other comprehensive income.
Changes in the fair value of derivatives that hedge market risk
related to future cash flows and that qualify for hedge accounting are
reported in accumulated other comprehensive income (cash flow
hedges).
Changes in the fair value of a derivative instrument may not always
equal changes in the fair value of the hedged item (referred to as
F.
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
PART II
taxes. The Company records acquisition costs differently depending

on the product line. Acquisition costs for:
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.
Supplemental health, life and accident insurance (primarily
individual products) 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.
Other products are expensed as incurred.
Deferred policy acquisition costs also include the value of business
acquired with certain acquisitions.
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 managements estimates of these sums are less than the
deferred costs, the Company reduces deferred policy acquisition costs
and records an expense. The Company recorded amortization for
policy acquisition costs of $286 million in 2015, $289 million in
2014 and $255 million in 2013 primarily in other operating expenses.
G.
Property and Equipment
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 Companys 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, one 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. See Note 8 for
additional information.
H.
and reported in the Global Health Care segment ($5.7 billion) and
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
results of operations 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
units weighted average cost of capital, consistent with that used for
investment decisions considering the specific and detailed operating
plans and strategies within the reporting units. Projections of future
cash flows for the reporting units are consistent with our annual
planning process for revenues, claims, operating expenses, taxes,
capital levels and long-term growth rates. See Note 8 for additional
information.
I.
Other Assets, including Other

Intangibles
Other assets consist primarily of guaranteed minimum income

benefits (GMIB) assets and various other insurance-related assets.
The Companys 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. See Notes 8 and 10 for additional
information.
J.
Separate Account Assets and Liabilities
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 Companys other businesses. These separate
account assets are carried at fair value with equal amounts for related
separate account liabilities. The investment income, gains and losses
of these accounts generally accrue to the contractholders and, together
with their deposits and withdrawals, are excluded from the Companys
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.
Goodwill
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
K.
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
PART II
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.
L.
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, guaranteed minimum death
benefit (GMDB) contracts (see Note 7 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 to be paid to policyholders, net of future premiums
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 Companys own experience and
published actuarial tables. Interest rate assumptions are based on
managements judgment considering the Companys 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 requirements of
GAAP when a premium deficiency exists.
M.
Unpaid Claims and Claims Expenses
Liabilities for unpaid claims and claim expenses are estimates of future
payments under insurance coverages (primarily long-term disability,
life and health) for reported claims and for losses incurred but not yet
reported. When estimates of these liabilities change, the Company
immediately records the adjustment in benefits and expenses.
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.
The Companys liability for disability claims reported but not yet paid
is the present value of estimated future benefit payments 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 Companys experience,
expected claim resolution rates may vary based upon the anticipated
disability period, the covered benefit period, cause of disability,
benefit design and the policyholders age, gender and income level.
The gross monthly benefit is reduced (offset) by disability income
received under other benefit programs, such as Social Security
Disability Income, workers compensation, statutory disability or
other group benefit plans. For offsets not yet finalized, the Company
estimates the probability and amount of the offset based on the
Companys experience over the past three to five years.
The Company discounts certain unpaid claim liabilities because
benefit payments are made over extended periods. Substantially all of
these liabilities are associated with the group long-term disability
business. Discount rate assumptions for that business are based on
projected investment returns for the asset portfolios that support these
liabilities and range from 4.4% to 5.7%. Discounted liabilities were
$3.7 billion at December 31, 2015 and $3.9 billion at December 31,
2014.
N.
Global Health Care Medical Costs

Payable
Medical costs payable for the Global Health Care segment include
reported claims, estimates for losses incurred but not yet reported and
liabilities for services rendered by providers, as well as liabilities under
risk-sharing and quality management arrangements with providers.
The Company uses actuarial principles and assumptions consistently
applied each reporting period and recognizes the actuarial best
estimate of the ultimate liability within a level of confidence. This
approach is consistent with actuarial standards of practice that the
liabilities be adequate under moderately adverse conditions.
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 the more recent months, the Company relies 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
PART II
and emerging trends that may impact key assumptions. The

estimation process involves considerable judgment, reflecting the
variability inherent in forecasting future claim payments. These
estimates are highly sensitive to changes in the Companys key
assumptions, specifically completion factors and medical cost trends.
See Note 5 for further information.
O.
Redeemable Noncontrolling Interests
Products and services are offered in Turkey and India through joint
venture entities for which the Company is the primary beneficiary.
Accordingly, these entities are consolidated. The redeemable
noncontrolling interests on our consolidated balance sheet represent
our joint venture partners preferred and common stock interests in
these entities. Our joint venture partners may, at their election, require
the Company to purchase their redeemable noncontrolling interests.
We also have the right to require our joint venture partners 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.
P.
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 9), GMIB contract liabilities (see Note 10),
self-insured exposures, management compensation, cash overdraft
positions and various insurance-related liabilities, including
experience-rated refunds, the minimum medical loss ratio rebate
accrual under Health Care Reform and reinsurance contracts. Legal
costs to defend the Companys 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.
Q.
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.
R.
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 business, medical costs are presented
net of pharmaceutical manufacturer rebates. For experience-rated
contracts, premium revenue includes an adjustment for experiencerated refunds based on contract terms and calculated using the
customers 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 Health Care Reform. These rebates are
settled in the year following the policy year.
Premiums received for the Companys Medicare Advantage Plans and
Medicare Part D products from customers and the Centers for
Medicare and Medicaid Services (CMS) 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 health severity 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 that are estimated quarterly based on
claim experience, compare actual incurred drug benefit costs to
estimated costs submitted in original contracts and 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 Health
Care Reform.
Accounting for Health Care Reforms Risk Mitigation Programs.
Beginning in 2014, as prescribed by Health Care Reform, programs
went into effect to reduce the risk for participating health insurance
companies selling coverage on the public exchanges.
A three-year (2014-2016) reinsurance program is designed to provide
reimbursement to insurers for high cost individual business sold on
or off the public exchanges. The reinsurance entity established by
the U.S. Department of Health and Human Services (HHS) is
funded by a per-customer reinsurance fee assessed on all insurers,
Health Maintenance Organizations (HMOs) and self-insured
group health plans, excluding certain products such as Medicare
Advantage and Medicare Part D. Only non-grandfathered
individual plans are eligible for recoveries if claims exceed a specified
threshold, up to a reinsurance cap. Reinsurance contributions
associated with non-grandfathered individual plans are reported as a
reduction in premium revenue, and estimated reinsurance recoveries
are established with an offsetting reduction in Global Health Care
medical costs. Reinsurance fee contributions for other insured
business are reported in other operating expenses. Final recoverable
amounts are determined and settled with HHS in the year following
the policy year.
PART II
A premium stabilization program is comprised of two components:

1) a permanent component that 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 HHS; and 2) a temporary (2014-2016) component designed to
limit insurer gains and losses by comparing allowable medical costs
to a target amount as defined by HHS. This program applies to
individual and small group qualified health plans, operating on and
off the exchanges. Variances from the target amount exceeding
certain thresholds may result in amounts due to or due from HHS.
these performance guarantees. Approximately 12% of ASO fees

reported for the year ended December 31, 2015 were at risk, with
reimbursements estimated to be approximately 1%.
For the premium stabilization program, the Company records

receivables or payables 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.
Mail order pharmacy revenues and the cost of prescriptions are

recognized as each prescription is shipped. Mail order pharmacy
revenues are presented net of pharmaceutical manufacturer rebates
payable to clients. Mail order pharmacy costs include the cost of
prescriptions sold and other costs to operate this business including
supplies, shipping and handling, net of pharmaceutical rebates from
manufacturers.
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. 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.
S.
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 pharmaceutical manufacturer
rebates payable to clients and estimated refunds under performance
guarantees. Expenses associated with these programs and services are
recognized in other operating expenses as incurred, net of
pharmaceutical rebates from manufacturers. 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 fee or a stated dollar amount. The Company
establishes deferred revenues for estimated payouts associated with
Revenue for investment-related products is 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.
T.
Stock Compensation
The Company records compensation expense for stock awards and

options over their vesting periods primarily based on the estimated fair
value at the grant date. For stock options, fair value is estimated using
an option-pricing model, whereas for restricted stock grants and units,
fair value is equal to the market price of the Companys common stock
on the date of grant. Compensation expense for strategic performance
shares is recorded over the performance period. For strategic
performance shares with payment dependent on a market condition,
fair value is determined at the grant date using a Monte Carlo
simulation model and not subsequently adjusted regardless of the final
outcome. For strategic performance shares with payment dependent
on performance conditions, 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). See Note 20 for
additional information on the Companys stock compensation plans.
U.
Participating Business
The Companys participating life insurance policies entitle

policyholders to earn dividends that represent a portion of the
earnings of the Companys life insurance subsidiaries. Participating
insurance accounted for approximately 1% of the Companys total life
insurance in force at the end of 2015, 2014 and 2013.
V.
Income Taxes
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. Deferred income tax assets are recognized when
available evidence indicates that realization is more likely than not.
PART II
The deferred income tax provision generally represents the net change
in deferred income tax assets and liabilities during the year, exclusive
of amounts reported as adjustments to accumulated other
comprehensive income or amounts initially recorded due to business
combinations. The current income tax provision generally represents
the estimated amounts due on the 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 tax provisions related to the Companys foreign operations are
generally determined based upon the local country income tax rate.
See Note 19 for additional information.
W.
Earnings Per Share
The Company computes basic earnings per share using the weightedaverage number of unrestricted common and deferred shares
outstanding. Diluted earnings per share also includes the dilutive
effect of outstanding employee stock options and unvested restricted
stock granted after 2009 using the treasury stock method and the
effect of strategic performance shares. See Note 4 for additional
information.
NOTE 3 Acquisitions and Dispositions

Proposed Merger
On July 23, 2015, the Company entered into a merger agreement
with Anthem, Inc. (Anthem) and Anthem Merger Sub Corp.
(Merger Sub), a direct wholly owned subsidiary of Anthem. The
merger agreement provides (a) for the merger of the Company and
Merger Sub, with the Company continuing as the surviving
corporation and (b) if certain tax opinions are delivered, immediately
following the completion of the initial merger, for the surviving
corporation to be merged with and into Anthem, with Anthem
continuing as the surviving corporation (collectively, the merger).
Subject to certain terms, conditions, and customary operating
covenants, each share of Cigna common stock issued and outstanding
immediately prior to the effective time of the merger will be converted
into the right to receive (a) $103.40 in cash, without interest, and
(b) 0.5152 of a share of Anthem common stock. The closing price of
Anthem common stock on February 24, 2016 was $130.75.
At special shareholders meetings held in December 2015, Cigna
shareholders approved the merger and Anthem shareholders approved
the issuance of shares of Anthem common stock in connection with
the merger. Completing the merger remains subject to certain
customary conditions, including the receipt of certain necessary
governmental and regulatory approvals and the absence of a legal
restraint prohibiting the merger. Completing the merger is not subject
to a financing condition.
If the merger agreement is terminated under certain circumstances,
Anthem will be required to pay Cigna a termination fee of
$1.85 billion. Anthems obligation to pay the termination fee arises if
the merger agreement is terminated because: (1) a governmental
entity, such as the Department of Justice or a state Department of
Insurance, has prevented the merger for regulatory reasons and that
decision is final and non-appealable; or (2) the merger has not closed
by January 31, 2017 (subject to extension to April 30, 2017 under
certain circumstances) only because all necessary regulatory approvals
have not been received.
The merger agreement contains customary covenants, including
covenants that Cigna conduct its business in the ordinary course
during the period between entering into the merger agreement and
closing. In addition, Cignas ability to take certain actions prior to
closing without Anthems consent is subject to certain limitations.
These limitations relate to, among other matters, the payment of
dividends, capital expenditures, the payment or retirement of
indebtedness or the incurrence of new indebtedness, settlement of
material claims or proceedings, mergers or acquisitions, and certain
employment-related matters.
The transaction is expected to close in the second half of 2016.
For the year ended December 31, 2015, the Company incurred
pre-tax costs of $66 million ($57 million after-tax) directly related to
the proposed merger. These costs consisted primarily of fees for
financial advisory, legal and other professional services.
Acquisitions
The Company completed certain acquisitions during the three years
ended December 31, 2015. In accordance with GAAP, the purchase
price for each acquisition was allocated to the tangible and intangible
net assets acquired based on managements preliminary estimates of
their fair values. The results of acquisition activities for these years
were not material to the Companys results of operations, liquidity or
financial condition.
PART II
NOTE 4 Earnings Per Share

Basic and diluted earnings per share were computed as follows:
Effect of
Dilution
Basic
(Shares in thousands, dollars in millions, except per share amounts)
Diluted
2015
2,094
2,094
Shares
Weighted average
256,149
4,443
4,443
256,149
4,443
260,592
Common stock equivalents

Total shares
EPS
256,149
8.17
(0.13)
8.04
2,102
2,102
2014
Shares
Weighted average
263,889
Total shares
EPS
4,714
263,889
263,889
4,714
4,714
268,603
7.97
(0.14)
7.83
1,476
1,476
2013
Shares
Weighted average
279,296
5,389
279,296
5,389
Total shares
279,296
5,389
284,685
EPS
5.28
(0.10)
5.18
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)
Anti-dilutive options
2015
2014
2013
0.4
1.0
0.9
PART II
NOTE 5 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 yet
reported, those that have been reported but not yet paid (reported costs in process), and other medical expenses payable that are primarily
comprised of accruals for incentives and other amounts payable to health care professionals and facilities, as follows:
2015
(In millions)
Incurred but not yet reported
1,757
2014
$
1,777
Reported costs in process
470
288
Physician incentives and other medical care expense and services payable
128
115
MEDICAL COSTS PAYABLE
2,355
2,180
1,856
Activity in medical costs payable was as follows:

2015
(In millions)
Balance at January 1,
Less: Reinsurance and other amounts recoverable

Balance at January 1, net
2,180
2014
$
2,050
2013
252
194
242
1,928
1,856
1,614
18,564
16,853
16,049
(210)
(159)
(182)
18,354
16,694
15,867
16,588
14,966
14,267
Incurred costs related to:

Current year
Prior years
Total incurred
Paid costs related to:
Current year
Prior years
1,582
1,656
1,358
Total paid
18,170
16,622
15,625
2,112
1,928
1,856
243
252
194
Balance at December 31, net

Add: Reinsurance and other amounts recoverable
Balance at December 31,
Reinsurance and other amounts recoverable reflect amounts due from

reinsurers and policyholders to cover incurred but not reported and
pending claims for minimum premium products and certain ASO
business where the right of offset does not exist. See Note 7 for
additional information on reinsurance. For the year ended
December 31, 2015, actual experience differed from the Companys
key assumptions resulting in favorable incurred costs related to prior
years medical costs payable of $210 million, or 1.3% of the current
year incurred costs as reported for the year ended December 31, 2014.
Actual completion factors accounted for $62 million, or 0.4%, while
actual medical cost trend resulted in $115 million, or 0.7%. The
remaining $33 million, or 0.2%, was primarily related to an increase
in the 2014 reinsurance reimbursement rate from CMS under Health
Care Reform.
For the year ended December 31, 2014, actual experience differed
from the Companys key assumptions, resulting in favorable incurred
costs related to prior years medical costs payable of $159 million, or
1.0% of the current year incurred costs as reported for the year ended
2,355
2,180
2,050
December 31, 2013. Actual completion factors accounted for

$61 million of favorability, or 0.4%, while actual medical cost trend
resulted in the remaining $98 million, or 0.6%.
The impact of prior year development on shareholders net income
was $60 million for the year ended December 31, 2015 compared
with $53 million for the year ended December 31, 2014. The
favorable effect of prior year development for both years primarily
reflects low utilization of medical services. Incurred costs related to
prior years in the table above do not directly correspond to an increase
or decrease to shareholders net income. The primary reason for the
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 determination of liabilities for Global Health
Care medical costs payable requires the Company to make critical
accounting estimates. See Note 2(N) for further information about
the assumptions and estimates used to establish this liability.
PART II
NOTE 6 Organizational Efficiency Plan

The Company is regularly evaluating ways to deliver its products and
services more efficiently and at a lower cost. During the fourth quarter
of 2013, the Company committed to a plan to increase its
organizational efficiency and reduce costs through a series of actions
including employee headcount reductions. As a result, the Company
recognized a charge in other operating expenses of $60 million pre-tax

($40 million after-tax) in the fourth quarter of 2013, primarily for
severance costs. As of December 31, 2015, the remaining balance
associated with this plan was not material.
NOTE 7 Reinsurance
The Companys 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.
Effective Exit of GMDB and GMIB Business

In 2013, the Company entered into an agreement with Berkshire
Hathaway Life Insurance Company of Nebraska (Berkshire) to
effectively exit the GMDB and GMIB business via a reinsurance
transaction. Berkshire reinsured 100% of the Companys future claim
payments in this business, net of retrocessional arrangements existing
at that time. The reinsurance agreement is subject to an overall limit
with approximately $3.6 billion remaining at December 31, 2015.
This transaction resulted in an after-tax charge to shareholders net

income in the first quarter of 2013 of $507 million ($781 million
pre-tax reported as follows: $727 million in other benefit expenses;
$54 million in other operating expenses, including $45 million of
GMIB fair value loss). The payment to Berkshire under the agreement
was $2.2 billion and was funded from the sale of investment assets, tax
benefits related to the transaction and available parent cash.
GMDB
The Company estimates this liability with an internal model based on
the Companys experience and future expectations over an extended
period, consistent with the long-term nature of this product. Because
the product is premium deficient, the Company records increases to
the reserve if it is inadequate based on the model. 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 assets).
Activity in future policy benefit reserves for the GMDB business was as follows:
2015
(In millions)
Add: Unpaid claims
1,270
2014
$
1,396
2013
$
1,090
16
18
24
1,186
1,317
42
100
97
1,072
699
(3)
1,674
Ending balance, net
106
100
97
Less: Unpaid claims
18
16
18
1,164
1,186
1,317
Less: Reinsurance and other amounts recoverable

Balance at January 1, net
Add: Incurred benefits
Less: Paid benefits (including the $1,647 payment for Berkshire reinsurance transaction)
Add: Reinsurance and other amounts recoverable

Benefits paid and incurred are net of ceded amounts, including the
impact of the 2013 reinsurance transaction with Berkshire. The
ending net retained reserve as of December 31, 2015 and
December 31, 2014 covers ongoing administrative expenses, as well as
the minor claim exposure retained by the Company.
The majority of the exposure arises under annuities that guarantee
that the benefit received at death will be no less than the highest
1,252
1,270
1,396
historical account value of the related mutual fund investments on a

contractholders anniversary date. Under this type of death benefit,
the Company is liable to the extent the highest historical anniversary
account value exceeds the fair value of the related mutual fund
investments at the time of a contractholders death.
PART II
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.
2015
(Dollars in millions, excludes impact of reinsurance ceded)
2014
Account value
11,355
13,078
Net amount at risk
2,870
2,763
Average attained age of contractholders (weighted by exposure)

Number of contractholders
74
73
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 Companys Consolidated Statements of Income.
2015
(In millions)
2014
2013
Premiums
Short-duration contracts:
Direct
Assumed
26,751
24,294
23,056
289
429
394
(254)
(226)
(252)
26,786
24,497
23,198
3,061
2,921
2,485
111
173
183
Individual life insurance and annuity business sold
(158)
(254)
(176)
Other
(158)
(123)
(115)
2,856
2,717
2,377
Ceded
Long-duration contracts:
Direct
Assumed
Ceded:
TOTAL
29,642
27,214
25,575
301
366
335
Reinsurance recoveries
Individual life insurance and annuity business sold
Other
TOTAL
Recoveries were lower in 2013 primarily due to activity related to the

Berkshire transaction.
436
$
737
292
$
658
(18)
$
317
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.
PART II
Reinsurance Recoverables
The majority of the Companys reinsurance recoverables balance resulted from acquisition and disposition transactions in which the underwriting
company was not acquired. Components of the Companys reinsurance recoverables are presented below:
(In millions)
Line of Business
GMDB
Reinsurer(s)
Berkshire
December 31, December 31,

2015
2014
$
Other
1,123 $
Collateral and Other Terms

at December 31, 2015
1,147 100% were secured by assets in a trust.
41
39 100% were secured by assets in a letter of

credit or a trust.
3,705
3,817 Both companies ratings were sufficient to

avoid triggering a contractual obligation to
fully secure the outstanding balance.
Individual Life and Annuity (sold in

1998)
Lincoln National Life and

Lincoln Life & Annuity
of New York
Retirement Benefits Business (sold in

2004)
Prudential Retirement
Insurance and Annuity
995
1,092 100% were secured by assets in a trust.
Supplemental Benefits Business (2012

acquisition)
Great American Life
315
336 99% were secured by assets in a trust.
Global Health Care, Global Supplemental

Benefits, Group Disability and Life
Various
553
561 Recoverables from approximately 75

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
Over 90% of the Companys reinsurance recoverables were from

companies that are rated A or higher by Standard & Poors at
December 31, 2015. The Company reviews its reinsurance
arrangements and establishes reserves against the recoverables in the
event that recovery is not considered probable. As of December 31,
2015, the Companys recoverables were net of a reserve of $3 million.
6,813 $
7,080
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.
NOTE 8 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:
2015
(In millions)
5,989
2014
$
6,029
Goodwill acquired:
QualCare Alliance Networks, Inc.
Other
Impact of foreign currency translation
74
(44)
$
6,019
(43)
$
5,989
PART II
Other intangible assets were comprised of the following at December 31:

Cost
(In millions)
Accumulated
Amortization
Net Carrying
Value
2015
Customer relationships
1,264
Other
Total reported in other assets, including other intangibles
397
302
131
1,566
998
568
232
48
184
2,442
1,708
734
Value of business acquired (reported in deferred policy acquisition costs)

Internal-use software (reported in property and equipment)
867
171
TOTAL OTHER INTANGIBLE ASSETS
4,240
2,754
1,486
2014
Customer relationships
Other
1,266
313
779
91
487
222
Total reported in other assets, including other intangibles

Internal-use software (reported in property and equipment)
1,579
165
2,191
TOTAL OTHER INTANGIBLE ASSETS
870
30
1,467
3,935
709
135
724
2,367
1,568
Property and equipment was comprised of the following as of December 31:

Cost
(In millions)
Accumulated
Amortization
Net Carrying
Value
2015
Internal-use software
Other property and equipment

TOTAL PROPERTY AND EQUIPMENT
2,442
1,574
1,708
734
774
800
4,016
2,482
1,534
2,191
1,467
724
2014
TOTAL PROPERTY AND EQUIPMENT
Other property and equipment includes assets recorded under capital

leases with a cost of $90 million, accumulated amortization of
$44 million, and a net carrying value of $46 million as of
December 31, 2015. Other property and equipment includes assets
recorded under capital leases with a cost of $84 million, accumulated
1,740
$
962
3,931
778
2,429
1,502
amortization of $36 million, and a net carrying value of $48 million as

of December 31, 2014. Current capital lease agreements are for
equipment and generally have a term of 48 months with the
equipment returned to the lessor at the end of the term.
Depreciation and amortization was comprised of the following for the years ended December 31:
2015
(In millions)
288
TOTAL DEPRECIATION AND AMORTIZATION
260
2013
$
225
160
153
160
18
12
19
119
163
193

Other intangibles(1)
2014
585
588
597
(1) Includes the one-time $23 million benefit of a 2015 acquisition in which the fair value of acquired net assets exceeded the purchase price.
Other property and equipment includes amortization on assets

recorded under capital leases of $22 million in 2015 and $20 million
in 2014.
years to be as follows: $432 million in 2016, $313 million in 2017,

$216 million in 2018, $151 million in 2019, and $82 million in
2020.
The Company estimates annual pre-tax amortization for intangible

assets, including internal-use software, over the next five calendar
PART II
NOTE 9 Pension and Other Postretirement Benefit Plans

A.
Pension and Other Postretirement Benefit Plans
The Company and certain of its subsidiaries provide pension, health

care and life insurance defined benefits to eligible retired employees,
spouses and other eligible dependents through various domestic and
foreign plans. The effect of its foreign pension and other
postretirement benefit plans is immaterial to the Companys results of
operations, liquidity and financial position. The Company froze its
defined benefit postretirement medical plan in 2013 and its primary
domestic pension plans in 2009.
As further discussed in Note 23, the Company and the Cigna Pension
Plan are defendants in a class action lawsuit. When the plan
amendment related to this litigation is adopted, the pension benefit
obligation will be updated to reflect benefits resulting from this
litigation.
The Company measures the assets and liabilities of its domestic pension and other postretirement benefit plans as of December 31. The following
table summarizes the projected benefit obligations and assets related to the Companys domestic and international pension and other
postretirement benefit plans as of, and for the year ended, December 31:
Other Postretirement
Benefits
2015
2014
Pension Benefits
2015
2014
(In millions)
Change in benefit obligation

Benefit obligation, January 1
5,269
4,700
335
323
Service cost
Interest cost
194
206
11
12
(239)
679
(19)
31
(270)
(291)
(3)
(5)
(22)
(29)
(29)
(26)
4,934
5,269
295
335
4,170
4,089
12
16
75
257
(1)
(270)
(291)
(3)
(5)
(Gain) loss from past experience

Effect of plan amendment
Benefits paid from plan assets
Benefits paid other
Benefit obligation, December 31
Change in plan assets
Fair value of plan assets, January 1
Actual return on plan assets
Benefits paid
Contributions
Fair value of plan assets, December 31
Funded Status
115
3,981
4,170
12
(953)
$ (1,099)
(287)
(323)
The postretirement benefits liability adjustment included in accumulated other comprehensive loss consisted of the following as of December 31:
Pension Benefits
2015
2014
(In millions)
Unrecognized net gain (loss)
(2,201)
(7)
(7)
(2,208)
$ (2,324)
Unrecognized prior service cost

POSTRETIREMENT BENEFITS LIABILITY ADJUSTMENT
During 2015, the unfunded liability for the Companys pension and
other postretirement benefit plans decreased by $182 million. In
addition, the postretirement benefits liability adjustment (recorded in
accumulated other comprehensive income) decreased by $131 million
pre-tax ($85 million after-tax) resulting in an increase to shareholders
equity. These decreases were primarily due to an increase in the
discount rate and a change in the mortality assumption (as discussed
further in the assumptions section of this note).
(2,317)
Other Postretirement
Benefits
2015
2014
$
53
$ (16)
52
54
$
38
Pension benefits. The Company funds its 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 2016, the Company does 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.
PART II
Components of net pension cost for the years ended December 31 were as follows:
2015
(In millions)
Service cost
2014
Interest cost
Expected long-term return on plan assets
2013
$
194
206
181
(267)
(264)
(272)
70
57
74
Amortization of:
Net loss from past experience
Settlement loss
NET PENSION COST
The Company expects to recognize pre-tax losses of $66 million in

2016 from amortization of the net loss from past experience. This
estimate is 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 28 years.
Plan assets. The Companys current target investment allocation
percentages (50% fixed income, 25% public equity securities, and
25% in other investments, including securities partnerships, hedge
funds and real estate) are developed by management as guidelines,
although the fair values of each asset category are expected to vary as a
(1)
(14)
result of changes in market conditions. The Company would expect

to further reduce the allocation to equity securities and increase the
allocation to fixed income investments as funding levels improve.
As of December 31, 2015, pension plan assets included $3.6 billion
invested in the separate accounts of Connecticut General Life
Insurance Company and Life Insurance Company of North America,
that are subsidiaries of the Company, as well as an additional
$332 million invested directly in funds offered by the buyer of the
retirement benefits business.
The fair values of plan assets by category and by the fair value hierarchy as defined by GAAP are as follows. See Note 10 for further details
regarding how the Company determines fair value, including the level within the fair value hierarchy and the procedures the Company uses to
validate fair value measurements.
December 31, 2015

(In millions)
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Plan assets at fair value:

Fixed maturities:
Corporate
1,026
41
1,067
Mortgage and other asset-backed
19
21
553
556
1,599
46
1,646
585
86
677
18
358
383
603
364
93
1,060
362
362
131
131
Securities partnerships
406
406
Fund investments and pooled separate accounts
(1)
TOTAL FIXED MATURITIES

Equity securities:
Domestic
International, including funds and pooled separate accounts
(1)
TOTAL EQUITY SECURITIES

Real estate, including pooled separate accounts
(1)
Hedge funds
256
256
Guaranteed deposit account contract
58
58
Cash equivalents and other current assets, net
62
62
TOTAL PLAN ASSETS AT FAIR VALUE
604
2,025
1,352
3,981
(1) A pooled separate account has several participating benefit plans and each owns a share of the total pool of investments.
PART II
December 31, 2014

(In millions)
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Plan assets at fair value:

Fixed maturities:
Corporate
Mortgage and other asset-backed
Fund investments and pooled separate accounts
(1)

Equity securities:
Domestic
International, including funds and pooled separate accounts
(1)

Real estate, including pooled separate accounts
Hedge funds
Guaranteed deposit account contract
Cash equivalents and other current assets, net
35
3
3
2
1,060
24
747
1,791
41
1,833
640
131
5
241
73
7
718
379
771
246
80
1,097
115
331
110
357
283
44
331
110
357
283
44
115
(1)
TOTAL PLAN ASSETS AT FAIR VALUE
1
1,025
21
744
772
2,152
1,246
4,170
(1) A pooled separate account has several participating benefit plans and each owns a share of the total pool of investments.
Plan assets in Level 1 include exchange-listed equity securities. Level 2

assets primarily include:
Plan assets classified in Level 3 include investments primarily in

securities partnerships, equity real estate and hedge funds generally
valued based on the pension plans ownership share of the equity of
the investee including changes in the fair values of its underlying
investments.
fixed income and international equity funds priced using their daily
net asset value that is the exit price; and
fixed maturities valued using recent trades of similar securities or
pricing models as described in Note 10.
The following table summarizes the changes in pension plan assets classified in Level 3 for the years ended December 31, 2015 and December 31,
2014. Actual return on plan assets in this table may include changes in fair value that are attributable to both observable and unobservable inputs.
(In millions)
Fixed
Maturities
& Equity
Securities
Real Estate
& Mortgage
Loans
Securities
Partnerships
Hedge Funds
Guaranteed
Deposit
Account
Contract
121
441
357
283
44
Total
$
1,246
Actual return on plan assets:

Assets still held at the reporting date
(3)
Assets sold during the period
58
50
110
TOTAL ACTUAL RETURN ON PLAN ASSETS
(3)
58
50
110
Purchases, sales, settlements, net
14
(6)
(1)
(31)
13
(11)
Transfers into/out of Level 3

Balance at December 31, 2015
139
493
406
256
58
1,352
PART II
(In millions)
Fixed
Maturities
& Equity
Securities
Real Estate
& Mortgage
Loans
Securities
Partnerships
Hedge Funds
Guaranteed
Deposit
Account
Contract
74
339
304
360
44
Total
$
1,121
Actual return on plan assets:

Assets still held at the reporting date
Assets sold during the period
41
40
17
101
TOTAL ACTUAL RETURN ON PLAN ASSETS
41
40
17
101
44
2
61
13
(94)
(2)
22
2
Purchases, sales, settlements, net

Transfers into/out of Level 3
121
Other postretirement benefits. The Companys pre-tax expense for

these plans was $8 million for 2015, $9 million for 2014 and $(11)
million for 2013. The 2013 benefit was primarily due to a pre-tax
curtailment gain of $19 million resulting from the freeze of the
441
357
283
44
1,246
postretirement medical plan. Changes in the estimated rate of future

increases in the per capital cost of health care benefits would have no
material effect on postretirement benefit costs or obligations.
Assumptions 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:
2015
2014
Pension benefit obligation
4.17%
3.75%
Other postretirement benefit obligation
3.89%
3.50%
Pension benefit cost
3.75%
4.50%
Other postretirement benefit cost
3.50%
4.00%
Pension benefit cost
7.25%
7.25%
Other postretirement benefit cost
5.00%
5.00%
Discount rate:
Expected long-term return on plan assets:
The Society of Actuaries mortality table and projection scale

published in the fourth quarter of 2014 was adopted for the
Companys defined benefit pension and other postretirement plans as
of December 31, 2014. We used the updated table because the
Companys mortality experience over the past several years closely
matched the updated mortality table based on a study conducted in
2014. In the fourth quarter of 2015, the Society of Actuaries
published an updated improvement scale based on two additional
years of experience. The Company adopted the updated improvement
scale as of December 31, 2015 after reviewing its experience compared
with the updated improvement scale.
In measuring the benefit obligation, the Company sets discount rates
by applying actual annualized yields at various durations from a
discount rate curve to the expected cash flows of the pension and
other postretirement benefits liabilities. The discount rate curve is
constructed using an array of bonds in various industries throughout
the domestic market for high quality bonds, but only selects those for
the curve that have an above average return at each duration. The
bond portfolio used to construct the curve is monitored to ensure that
only high quality issues are included. The Company believes that this
curve is representative of the yields that the Company is able to
achieve in its plan asset investment strategy. As part of its discount rate
setting process, the Company reviewed alternative indices and

determined that they were not materially different than the result
produced by the curve used.
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 managements investment
strategy that continues a significant allocation to domestic and foreign
equity securities as well as real estate, securities partnerships 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.
To measure pension costs, the Company uses a market-related asset
valuation for domestic pension plan assets invested in non-fixed
income investments. The market-related value of these pension assets
recognizes the difference between actual and expected long-term
returns in the portfolio over 5 years, a method that reduces the
short-term impact of market fluctuations on pension cost. At
December 31, 2015, the market-related asset value was approximately
$3.9 billion compared with a market value of approximately
$4.0 billion.
PART II
Benefit payments. The following benefit payments are expected to be paid in:
(In millions)
Pension Benefits
2016
2017
2018
2019
2020
2021-2025
$
$
$
$
$
$
B.
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 Companys
common stock, several diversified stock funds, a bond fund or a
fixed-income fund. In conjunction with the action to freeze the
domestic defined benefit pension plans, effective January 1, 2010, the
363
322
323
329
322
1,604
Other
Postretirement
Benefits
$
$
$
$
$
$
29
28
27
26
25
104
Company increased its matching contributions to 401(k) plan

participants.
The Company may elect to increase its matching contributions if the
Companys annual performance meets certain targets. The Companys
expense for these plans was $106 million for 2015, $98 million for
2014 and $91 million for 2013.
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 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 liabilitys 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 Companys 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 assets or a liabilitys 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 instruments 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 thirdparty 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 Companys 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 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 of a sample of securities held across various
asset types to validate the documented pricing process.
PART II
Financial Assets and Financial Liabilities Carried at Fair Value

The following tables provide information as of December 31, 2015 and 2014 about the Companys financial assets and liabilities carried at fair
value. Separate account assets that are also recorded at fair value on the Companys Consolidated Balance Sheets are reported separately under the
heading Separate account assets as gains and losses related to these assets generally accrue directly to policyholders.
December 31, 2015

(In millions)
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Financial assets at fair value:

Fixed maturities:
251
528
1,641
779
1,641
Foreign government
2,010
2,014
Corporate
14,122
326
14,448
Mortgage-backed
48
49
Other asset-backed
198
326
524
251
18,547
657
19,455
32
89
69
190
283
18,636
726
19,645
381
381
GMIB assets
907
907
Other derivative assets(3)
16
16
1,633
$ 20,949
Total fixed maturities(1)

Equity securities
Subtotal
(2)
TOTAL FINANCIAL ASSETS AT FAIR VALUE, EXCLUDING

SEPARATE ACCOUNTS
283
19,033
GMIB liabilities
885
885
TOTAL FINANCIAL LIABILITIES AT FAIR VALUE
885
885
(1) Fixed maturities included $483 million of net cumulative appreciation required to adjust future policy benefits for the run-off settlement annuity business including $30 million of
appreciation for securities classified in Level 3. See Note 11 for additional information.
(2) The GMIB assets represented retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts.
(3) Other derivative assets included $15 million of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million of interest rate swaps qualifying as fair value hedges. See
Note 12 for additional information.
PART II
December 31, 2014

(In millions)
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Total
Financial assets at fair value:

Fixed maturities:
290
664
954
1,856
1,856
Foreign government
1,936
1,940
Corporate
13,105
393
13,498
Mortgage-backed
84
85
Other asset-backed
234
416
650
290
17,879
814
18,983
61
85
43
189
351
17,964
857
19,172
GMIB assets(2)
163
953
163
953
Other derivative assets(3)
6
$ 20,294
Total fixed maturities(1)

Equity securities
Subtotal
TOTAL FINANCIAL ASSETS AT FAIR VALUE, EXCLUDING

SEPARATE ACCOUNTS
GMIB liabilities
Other derivative liabilities

TOTAL FINANCIAL LIABILITIES AT FAIR VALUE
351
18,133
1,810
929
1
$
929
929
1
930
(1) Fixed maturities included $756 million of net cumulative appreciation required to adjust future policy benefits for the run-off settlement annuity business including $65 million of
appreciation for securities classified in Level 3. See Note 11 for additional information.
(2) The GMIB assets represented retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts.
(3) Other derivative assets included $5 million of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million of interest rate swaps qualifying as fair value hedges. See
Note 12 for additional information.
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 Companys investment asset strategy to maximize
investment returns, a relatively small portion of the Companys
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 95% of the
Companys 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 mortgagebacked 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
PART II
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, 2015 or 2014. 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
Companys 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 4% of fixed maturities and equity
securities are priced using significant unobservable inputs and
classified in this category.
Fair values of other asset and mortgage-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 other asset and mortgage-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 issuers

Quantitative Information about Unobservable Inputs
The following tables summarize the fair value and significant
unobservable inputs used in pricing the following securities that were
developed directly by the Company as of December 31, 2015 and
2014. 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
Companys best estimates of the unobservable adjustments a market
participant would make to calculate these fair values.
Other asset and mortgage-backed securities. The significant
unobservable inputs used to value the following other asset and
mortgage-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 collaterals characteristics and their proportional cash flows
supporting the bond obligations. The resulting wide range of
unobservable adjustments in the table below is due to the varying
liquidity and quality of the underlying collateral, ranging from high
credit quality to below investment grade.
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.
Equity securities. The significant unobservable input used to value
the following 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.
Unobservable
Input
Unobservable Adjustment
Range (Weighted Average)
285
Liquidity
Weighting of credit spreads
Liquidity
60 - 440 (200)
170 - 630 (220)
70 - 930 (280)
Total fixed maturities

Equity securities
612
69
Price-to-earnings multiples
4.2 - 11.6 (8.3)
Subtotal
Securities not priced by the Company(1)
681
45
As of December 31, 2015

(Fair value in millions)
Fair Value
Fixed maturities:
Other asset and mortgage-backed securities
Corporate and government fixed maturities
Total Level 3 securities
327
726
(1) The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.
PART II
Unobservable
Input
Unobservable Adjustment
Range (Weighted Average)
344
Liquidity
Weighting of credit spreads
Liquidity
60 - 370 (140) bps

160 - 2,560 (290) bps
80 - 930 (262) bps
Total fixed maturities

Equity securities
761
43
Price-to-earnings multiples
4.2 - 9.8 (8.1)
Subtotal
Securities not priced by the Company(1)
804
53
As of December 31, 2014

(Fair value in millions)
Fair Value
Fixed maturities:
Other asset and mortgage-backed securities
Corporate and government fixed maturities
Total Level 3 securities
417
857
(1) The fair values for these securities use single, unadjusted non-binding broker quotes not developed directly by the Company.
Significant increases in fixed maturity spreads would result in a lower

fair value measurement while decreases in these inputs would result in
a higher fair value measurement. Significant decreases in equity
price-to-earnings multiples would result in a lower fair value
measurement while increases in these inputs would result in a higher
fair value measurement. 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. As discussed in Note 7, the Company effectively
exited the GMIB business in 2013. Although these GMIB assets and
liabilities must continue to be reported as derivatives at fair value, the
only assumption that is expected to impact future shareholders net
income is the risk of non-performance. This assumption reflects a
market participants view of (a) the risk of the Company not fulfilling
its GMIB obligations (GMIB liabilities) and (b) the credit risk that
the reinsurers do not pay their obligations (GMIB assets). As of
December 31, 2015, there were three reinsurers for GMIB, with
collateral securing 70% of the balance.
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. Under the terms
of these written and purchased contracts, the Company periodically
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 account values and interest rates when
contractholders elect to begin to receive minimum income payments.
The Company estimates the fair value of the assets and liabilities for
GMIB contracts by calculating the results for many scenarios run
through a model utilizing various assumptions that include

non-performance risk, among other things.
The non-performance risk adjustment is incorporated by adding an
additional spread to the discount rate in the calculation of both (a) the
GMIB liabilities to reflect a market participants view of the risk of the
Company not fulfilling its GMIB obligations, and (b) the GMIB
assets to reflect a market participants view of the credit risk of the
reinsurers, after considering collateral.
Other assumptions that affect GMIB assets and liabilities include
capital market assumptions (including market returns, interest rates
and market volatilities of the underlying equity and bond mutual fund
investments) and future annuitant behavior (including mortality,
lapse, and annuity election rates). As certain assumptions used to
estimate fair values for these contracts are largely unobservable
(primarily related to future annuitant behavior), the Company
classifies GMIB assets and liabilities in Level 3.
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,
or increases in assumed annuity election rates, 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 liabilities are reported in the Companys Consolidated Balance
Sheets in accounts payable, accrued expenses and other liabilities.
GMIB assets associated with these contracts represent net receivables
in connection with reinsurance that the Company has purchased from
three external reinsurers and are reported in the Companys
Consolidated Balance Sheets in other assets, including other
intangibles.
Changes in Level 3 Financial Assets and Financial Liabilities Carried at Fair Value
The following tables summarize the changes in financial assets and financial liabilities classified in Level 3 for the years ended December 31, 2015
and 2014. Separate account asset changes are reported separately under the heading Separate account assets as the changes in fair values of these
PART II
assets accrue directly to the policyholders. Gains and losses reported in these tables may include net changes in fair value that are attributable to
both observable and unobservable inputs.
Fixed
Maturities &
Equity Securities
$
857
(In millions)
GMIB Assets
953
GMIB Liabilities
$
(929)
GMIB Net
$
24
Gains (losses) included in shareholders net income:

GMIB fair value gain/(loss)
Other
Total gains (losses) included in shareholders net income
Losses included in other comprehensive income
Losses required to adjust future policy benefits for settlement annuities
(1)
(5)
(3)
24
24
(4)
(2)
(11)
(1)
Purchases, sales, settlements:

Purchases
Sales
Settlements
Total purchases, sales and settlements
153
(230)
(21)
(42)
42
(98)
(42)
42
49
Transfers into/(out of ) Level 3:

Transfers into Level 3
Transfers out of Level 3
Total transfers into/(out of ) Level 3
(94)
(45)
726
907
(885)
22
Total gains (losses) included in shareholders net income attributable to

instruments held at the reporting date
(6)
(4)
(2)
Fixed
Maturities &
Equity Securities
$
1,190
GMIB Assets
751
GMIB Liabilities
$
(741)
GMIB Net
$
10
251
(251)
(1) Amounts do not accrue to shareholders.
(In millions)

Gains (losses) included in shareholders net income:
GMIB fair value gain/(loss)
Other
Total gains (losses) included in shareholders net income
Gains included in other comprehensive income
Gains required to adjust future policy benefits for settlement annuities
(1)
15
(1)
15
14
15
250
(236)
14
14
55
101
Purchases, sales, settlements:

Purchases
Sales
(202)
Settlements
(156)
(48)
48
(257)
(48)
48
165

Total transfers into/(out of ) Level 3
(325)
(160)
857
953
(929)
24
Total gains (losses) included in shareholders net income attributable to

instruments held at the reporting date
250
(236)
14
(1) Amounts do not accrue to shareholders.
PART II
As noted in the tables above, 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 Companys 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. For the
years ended December 31, 2015 and 2014, transfers between Level 2
and Level 3 primarily reflect the change in significance of the
unobservable inputs used to value certain public and private corporate
bonds, principally related to liquidity of the securities and credit risk
of the issuers.
Separate account assets

Fair values and changes in the fair values of separate account assets generally accrue directly to the policyholders and are excluded from the
Companys revenues and expenses. At December 31, 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)
Guaranteed separate accounts (See Note 23)
2015
Non-guaranteed separate accounts(1)

TOTAL SEPARATE ACCOUNT ASSETS
235
1,401
1,636
274
4,698
4,972
Total
$ 509
1,225
7,324
1,225
$7,833
(1) As of December 31, 2015, non-guaranteed separate accounts included $3.6 billion in assets supporting the Companys pension plans, including $1.2 billion classified in Level 3.
(In millions)
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Guaranteed separate accounts (See Note 23)
2014
Non-guaranteed separate accounts(1)

TOTAL SEPARATE ACCOUNT ASSETS
242
1,609
1,851
288
5,031
5,319
Total
$ 530
1,158
7,798
1,158
$8,328
(1) As of December 31, 2014, non-guaranteed separate accounts included $3.8 billion in assets supporting the Companys pension plans, including $1.1 billion classified in Level 3.
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 and
separate accounts priced using the daily net asset value that is the
exit price.
Separate account assets classified in Level 3 include investments

primarily in securities partnerships, real estate and hedge funds
generally valued based on the separate accounts ownership share of
the equity of the investee including changes in the fair values of its
underlying investments.
PART II
The following table summarizes the changes in separate account assets reported in Level 3 for the years ended December 31, 2015 and 2014.
2015
(In millions)
Balance at January 1
Policyholder gains
(1)
1,158
2014
$
1,035
95
85
198
266
(2)
(230)
(226)
(32)
38
16
20
(12)
(20)
Purchases, issuances, settlements:

Purchases
Sales
Settlements
Total transfers into/(out of ) Level 3:
Balance at December 31
1,225
1,158
(1) Included in this amount were gains of $95 million attributable to instruments still held at December 31, 2015 and gains of $85 million attributable to instruments still held at December 31,
2014.
Assets and Liabilities Measured at Fair Value under

Certain Conditions
Fair Value Disclosures for Financial Instruments Not

Carried at Fair Value
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 entities and
commercial mortgage loans when they become impaired. Impaired
real estate entities and commercial mortgage loans representing less
than 1% of total investments were written down to their fair values,
resulting in realized investment losses of $16 million, after-tax in 2015
and $10 million, after-tax in 2014.
The following table includes the Companys financial instruments not

recorded at fair value that are subject to fair value disclosure
requirements at December 31, 2015 and 2014. Financial instruments
that are carried in the Companys Consolidated Financial Statements
at amounts that approximate fair value are excluded from the
following table.
(In millions)
Classification in
Fair Value
Hierarchy
Level 3
December 31, 2015

Fair Carrying
Value
Value
$ 1,911
$ 1,864
December 31, 2014

Fair Carrying
Value
Value
$ 2,168
$ 2,081
Contractholder deposit funds, excluding universal life products
Level 3
$ 1,151
$ 1,148
$ 1,136
$ 1,124
Long-term debt, including current maturities, excluding capital leases
Level 2
$ 5,515
$ 5,020
$ 5,740
$ 4,967
As explained in Note 2(B), in the fourth quarter of 2015, the

Company retrospectively adopted ASU 2015-03 that requires debt
issuance costs to be netted against the carrying value of the debt. The
carrying value presented above for 2014 has been retrospectively
adjusted to conform to the new guidance. 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 Companys 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
65% 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
PART II
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
Companys 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, 2015 and 2014.
NOTE 11 Investments
A.
Fixed Maturities and Equity Securities
The amortized cost and fair value by contractual maturity periods for fixed maturities were as follows at December 31, 2015:
(In millions)
Amortized
Cost
Due in one year or less
1,397
Fair
Value
$
1,403
Due after one year through five years
6,251
6,504
Due after five years through ten years
6,905
7,058
Due after ten years
3,363
3,917
540
573
$ 18,456
$ 19,455
Mortgage and other asset-backed securities

TOTAL
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, or because in certain cases the Company may have the option to unilaterally
extend the contractual maturity date.
Gross unrealized appreciation (depreciation) on fixed maturities by type of issuer is shown below.
(In millions)
Amortized
Cost
December 31, 2015

Unrealized
Unrealized
Appreciation Depreciation

Foreign government
Corporate
Mortgage-backed
Other asset-backed
TOTAL
528
1,496
147
(2)
779
1,641
1,870
147
(3)
2,014
14,022
632
(206)
14,448
48
(1)
49
492
39
(7)
524
(219)
$ 19,455
$ 18,456
1,218
December 31, 2014
(In millions)
251
Fair
Value
608
346
954
1,682
176
(2)
Foreign government
1,824
121
(5)
1,940
12,517
1,014
(33)
13,498
Corporate
Mortgage-backed
Other asset-backed
TOTAL
The above table includes investments with a fair value of $2.7 billion at
December 31, 2015 and $3.1 billion at December 31, 2014 supporting
liabilities of the Companys run-off settlement annuity business. These
investments had gross unrealized appreciation of $521 million and gross
unrealized depreciation of $38 million at December 31, 2015,
compared with gross unrealized appreciation of $758 million and gross
1,856
83
(1)
85
564
87
(1)
650
(42)
$ 18,983
$ 17,278
1,747
unrealized depreciation of $2 million at December 31, 2014. Such

unrealized amounts are reported in future policy benefit liabilities rather
than accumulated other comprehensive income.
As of December 31, 2015, the Company had commitments to purchase
$15 million of fixed maturities, all of which bear interest at a fixed
market rate.
PART II
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;
changes in the regulatory, economic or general market environment

of the issuers industry or geographic region; and
the Companys intent to sell or the likelihood of a required sale prior
to recovery.
financial health and specific near term prospects of the issuer;

The table below summarizes fixed maturities with a decline in fair value from amortized cost as of December 31, 2015 but with no indicative
impairment loss based on the criteria listed above. These fixed maturities are primarily corporate securities with a decline in fair value that reflects
an increase in market yields since purchase.
Fair
Value
(Dollars in millions)
December 31, 2015

Amortized
Unrealized
Cost
Depreciation
Number
of Issues
Fixed maturities:
One year or less:
Investment grade
$ 4,411
4,558
(147)
721
Below investment grade
534
557
(23)
228
Investment grade
180
204
(24)
56
Below investment grade
124
149
(25)
29
More than one year:
There were no available for sale equity securities with a significant

unrealized loss reflected in accumulated other comprehensive income
at December 31, 2015. 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
B.
gains (losses) and dividends reported in net investment income. As of

December 31, 2015, fair values of these securities were $52 million
and amortized cost was $66 million. As of December 31, 2014, fair
values of these securities were $57 million and amortized cost was
$69 million.
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.
At December 31, commercial mortgage loans were distributed among the following property types and geographic regions:
2015
(In millions)
2014
Property type
Office buildings
697
700
Apartment buildings
366
264
Industrial
322
466
Hotels
259
351
Retail facilities
213
272
28
Other
TOTAL
1,864
2,081
738
637
Geographic region
Pacific
South Atlantic
366
572
New England
276
277
Central
205
214
Middle Atlantic
227
287
52
94
Mountain
TOTAL
1,864
2,081
PART II
At December 31, 2015, scheduled commercial mortgage loan

maturities were as follows (in millions): $205 in 2016, $143 in 2017,
$177 in 2018, $275 in 2019 and $1,064 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, 2015, the Company had commitments to extend
credit under commercial mortgage loan agreements of $5 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 an 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 tables summarize the credit risk profile of the Companys commercial mortgage loan portfolio based on loan-to-value and debt
service coverage ratios, as of December 31, 2015 and 2014:
Debt Service Coverage Ratio
December 31, 2015
(In millions)
Loan-to-Value Ratios
Below 50%
1.30x or Greater
$
261
1.20x to 1.29x
$
2
1.10x to 1.19x
$
1.00x to 1.09x
$
67
Less than 1.00x

$
Total
330
50% to 59%
683
24
707
60% to 69%
590
14
19
623
70% to 79%
30
36
66
80% to 89%
40
40
90% to 100%
98
98
$ 1,864
TOTAL
Below 50%
1,574
340
50% to 59%
681
60% to 69%
70% to 79%
80% to 89%
90% to 100%
TOTAL
17
December 31, 2014

$
$
140
134
363
719
394
15
60
469
68
36
33
80
217
41
58
105
1,489
The Companys 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
Companys investment professionals in the second quarter of 2015
and included an analysis of each underlying propertys most recent
annual financial statements, rent rolls, operating plans, budgets for
2015, 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, and
categorizes the investments as loans in good standing, potential
problem loans or problem loans. Based on property valuations and
cash flows estimated as part of this review, and considering updates for
loans where material changes were subsequently identified, the
portfolios average loan-to-value ratio improved to 58% at
38
16
132
55
$
103
153
208
351
$ 2,081
December 31, 2015 from 63% at December 31, 2014. The portfolios
average debt service coverage ratio was estimated to be 1.78 at
December 31, 2015, an improvement from 1.66 at December 31,
2014.
The Company will reevaluate a loans credit quality between annual
reviews if new property information is received or an event such as
delinquency or a borrowers request for restructure causes
management to believe that the Companys estimate of financial
performance, fair value or the risk profile of the underlying property
has been impacted.
Certain loans were modified during 2015 and 2014. However, these
were not considered troubled debt restructures and the impact of such
modifications was not material to the Companys results of
operations, financial condition or liquidity.
PART II
Potential problem mortgage loans are considered current (no payment

is more than 59 days past due), but exhibit certain characteristics that
increase the likelihood of future default such as the deterioration of
debt service coverage below 1.0, estimated loan-to-value ratios
increasing to 100% or more, downgrade in quality rating and requests
from the borrower for restructuring. In addition, loans are considered
potential problems if principal or interest payments are past due by
more than 30 but less than 60 days. Problem mortgage loans are either
in default by 60 days or more or have been restructured as to terms,
which could include concessions on interest rate, principal payment

or maturity date. The Company monitors each problem and potential
problem mortgage loan on an ongoing basis and updates the loan
categorization and quality rating when warranted.
Problem and potential problem mortgage loans, net of valuation
reserves, totaled $139 million at December 31, 2015 and
$208 million at December 31, 2014.
Impaired commercial mortgage loans. The carrying value of the Companys impaired commercial mortgage loans and related valuation reserves
were as follows:
Impaired commercial mortgage loans with valuation reserves
2015
Reserves
Gross
(In millions)
113
Impaired commercial mortgage loans with no valuation reserves
(15)
98
147
98
2014
Reserves
Gross
$
31
$
178
Net
(12)
135
31
TOTAL
The average recorded investment in impaired loans was $126 million

during 2015 and $155 million during 2014. Because of the risk
profile of the underlying investment, the Company recognizes interest
income on problem mortgage loans only when payment is actually
received. Interest income that would have been reflected in net
income if interest on non-accrual commercial mortgage loans had
been accrued in accordance with the original terms was not significant
for 2015 or 2014. Interest income on impaired commercial mortgage

loans was not significant for 2015 or 2014. See Note 2 for further
information on impaired commercial mortgage loans.
C.
113
(15)
Net
(12)
166
Changes in valuation reserves for commercial mortgage loans were not

material for the years ended December 31, 2015 and 2014.
Other Long-Term Investments
As of December 31, other long-term investments consisted of the following:

2015
(In millions)
Real estate investments
Other
TOTAL
Real estate investments and securities partnerships with a carrying

value of $277 million at December 31, 2015 and $264 million at
December 31, 2014 were non-income producing during the
preceding twelve months.
D.
814
2014
$
916
501
456
89
116
1,404
1,488
Short-Term Investments and Cash

Equivalents
$184 million to limited liability entities that hold either real estate
or loans to real estate entities that are diversified by property type
and geographic region; and
Short-term investments and cash equivalents included corporate

securities of $925 million, federal government securities of
$220 million and money market funds of $55 million as of
December 31, 2015. The Companys short-term investments and cash
equivalents as of December 31, 2014 included corporate securities of
$509 million, federal government securities of $274 million and
money market funds of $33 million.
$487 million to entities that hold securities diversified by issuer and

maturity date.
E.
As of December 31, 2015, the Company had commitments to

contribute:
The Company expects to disburse approximately 40% of the

committed amounts in 2016.
Concentration of Risk
As of December 31, 2015 and 2014, the Company did not have a
concentration of investments in a single issuer or borrower exceeding
10% of shareholders equity.
PART II
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. For information on the
Companys accounting policy for derivative financial instruments, see
Note 2. Derivatives in the Companys separate accounts are excluded
from the following discussion because associated gains and losses
generally accrue directly to separate account policyholders.
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, 2015, the Company had
$16 million in cash on deposit representing the upfront margin
required for the Companys centrally-cleared derivative instruments.
Certain of the Companys 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, 2015 or 2014.
Investment Cash Flow Hedges.

The Company uses interest rate, foreign currency, and combination
(interest rate and foreign currency) swap contracts to hedge the
interest and foreign currency cash flows of its fixed maturity bonds to
match associated insurance liabilities.
Using cash flow hedge accounting, fair values are reported in other
long-term investments or accounts payable, accrued expenses and
other liabilities. Changes in fair value are reported in accumulated
other comprehensive income and amortized into net investment
income or reported in other realized investment gains and losses as
interest or principal payments are received.
Under the terms of these various contracts, the Company periodically
exchanges cash flows between variable and fixed interest rates or
between two currencies for both principal and interest. Foreign
currency and combination swaps are primarily Euros, Australian
dollars, Canadian dollars, Japanese yen and British pounds and have
terms for periods of up to six years. Net interest cash flows are
reported in operating activities.
The notional values of these cash flow swaps were $131 million as of
December 31, 2015 and $145 million as of December 31, 2014.
As of and for the years ended December 31, 2015 and 2014, the
effects of these derivative instruments on the Consolidated Financial
Statements were not material. No amounts were excluded from the
assessment of hedge effectiveness and no gains or losses were
recognized due to hedge ineffectiveness.
Interest Rate Fair Value Hedges.

The Company entered into centrally-cleared interest rate swap
contracts to convert a portion of the interest rate exposure on its
long-term debt from fixed to variable rates to more closely align
interest expense with interest income received on its cash equivalent
and short-term investment balances. The variable rates are
benchmarked to LIBOR.
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. As the critical terms of
these swaps match those of the long-term debt being hedged, 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, including interest expense for the difference
between the variable and fixed interest rates.
Under the terms of these contracts, the Company provides upfront
margin and settles fair value changes and net interest between variable
and fixed interest rates daily with the clearinghouse. Net interest cash
flows are reported in operating activities.
As of December 31, 2015 and 2014, the notional values of these
derivative instruments were $750 million.
As of and for the years ended December 31, 2015 and 2014, the
effects of these derivative instruments on the Consolidated Financial
Statements were not material.
GMIB.
The Companys run-off reinsurance business has written reinsurance
contracts with issuers of variable annuities that provide annuitants
with certain guarantees of minimum income benefits resulting from
the level of variable annuity account values compared with a
contractually guaranteed amount (GMIB liabilities). According to
the contractual terms of the written reinsurance contracts, 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. The Company has
purchased retrocessional coverage (GMIB assets) for these contracts,
including the agreement with Berkshire in 2013, effectively exiting
this business. See Note 7 for further details.
The fair value effects of GMIB contracts on the financial statements
are included in Note 10 and their volume of activity is included in
Note 23. Cash flows on these contracts are reported in operating
activities.
GMDB and GMIB Hedge Programs.

The Companys dynamic hedge programs were discontinued at the
time of the Berkshire reinsurance transaction in 2013. These hedge
programs generated losses (included in other revenues) of $39 million
in 2013.
PART II
NOTE 13 Variable Interest Entities

When the Company becomes involved with a variable interest entity,
as well as when the nature of the Companys involvement with the
entity changes, the Company evaluates the following to determine if it
is the primary beneficiary and must consolidate the entity:
the structure and purpose of the entity;
the risks and rewards created by and shared through the entity; and
the Companys 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.
In the normal course of its investing activities, the Company makes
passive investments in securities that are issued by variable interest
entities for which the Company is not the sponsor or manager. These
investments are predominantly asset-backed securities primarily
collateralized by foreign bank obligations or mortgage-backed
securities. The asset-backed securities largely represent fixed-rate debt
securities issued by trusts that hold perpetual floating-rate
subordinated notes issued by foreign banks. The mortgage-backed
securities represent senior interests in pools of commercial or
residential mortgages created and held by special-purpose entities to
provide investors with diversified exposure to these assets. The
Company owns senior securities issued by several entities and receives
fixed-rate cash flows from the underlying assets in the pools.
To provide certain services to its Medicare Advantage customers, the
Company contracts with independent physician associations (IPAs)
that are variable interest entities. Physicians provide health care

services to Medicare Advantage customers and the Company provides
medical management and administrative services to the IPAs.
The Company is not the primary beneficiary and does not consolidate
these entities because either:
it has no power to direct the activities that most significantly impact
the entities economic performance; or
it has neither the right to receive benefits nor the obligation to
absorb losses that could be significant to these variable interest
entities.
The Company has not provided, and does not intend to provide,
financial support to these 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. The Companys maximum potential
exposure to loss related to the investment entities is limited to the
carrying amount of its investments of $600 million as of
December 31, 2015, that are reported in fixed maturities. The
Companys combined ownership interests are insignificant relative to
the total principal amount issued by these entities. The Companys
maximum exposure to loss related to the IPA arrangements is limited
to their liability for incurred but not reported medical costs for the
Companys Medicare Advantage customers. These liabilities are not
material and are generally secured by deposits maintained by the IPAs.
NOTE 14 Investment Income and Gains and Losses

A.
Net Investment Income
The components of pre-tax net investment income for the years ended December 31 were as follows:
2015
(In millions)
Fixed maturities
Equity securities
Policy loans
Short-term investments and cash
879
2014
$
876
2013
$
823
112
133
174
72
72
74
116
105
101
14
17
22
Total investment income
1,196
1,206
1,200
Less investment expenses
43
40
36
NET INVESTMENT INCOME
1,153
1,166
1,164
Net investment income for separate accounts that is excluded from the Companys revenues was $262 million for 2015, $225 million for 2014,
and $232 million for 2013.
PART II
B.
Realized Investment Gains and Losses
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.
2015
(In millions)
Fixed maturities
Equity securities
(82)
2014
$
36
14
2013
$
113
13
(2)
(6)
(3)
105
133
95
Net realized investment gains, before income taxes
57
154
213
Less income taxes
17
48
72
Other investments, including derivatives
NET REALIZED INVESTMENT GAINS
40
106
141
Included in these realized investment gains (losses) were pre-tax asset write-downs as follows:
2015
(In millions)
Other-than-temporary impairments on debt securities:

Credit-related
Non credit-related
(1)
Total other-than-temporary impairments on debt securities

Other credit-related(2)
Other non credit-related
TOTAL
(11)
2014
$
2013
$
(101)
(36)
(11)
(112)
(36)
(11)
(28)
(16)
(8)
(10)
(140)
(52)
(29)
(1) These write-downs pertain to other-than-temporary declines in fair values due to increases in market yields (widening of credit spreads), particularly within the energy sector, for certain below
investment grade fixed maturities with an increased probability of sales activity prior to recovery of amortized cost basis.
(2) Other credit-related losses include other-than-temporary declines in the fair values of equity securities, increases in valuation reserves on commercial mortgage loans, and asset write-downs
related to security partnerships and real estate investments.
Realized investment gains in other investments, including derivatives, represented primarily gains on sale of real estate properties held in joint
ventures.
Realized investment gains that are excluded from the Companys revenues for the years ended December 31 were as follows:
2015
(In millions)
2014
2013
Separate accounts
117
376
417
Investment gains required to adjust future policy benefits for the run-off settlement annuity business
114
86
Sales information for available-for-sale fixed maturities and equity securities for the years ended December 31 were as follows:
2015
(In millions)
2014
2013
Proceeds from sales
1,555
1,769
1,775
Gross gains on sales
85
62
102
Gross losses on sales
13
PART II
NOTE 15 Debt
2014(1)
2015
(In millions)
Short-term:
Commercial paper
100
Other, including capital leases
100
149
147
598
49
TOTAL SHORT-TERM DEBT
47
Long-term:
Uncollateralized debt:
$600 million, 2.75% Notes due 2016
249
249
131
131
250
$250 million, 4.375% Notes due 2020(2)
254
253
303
302
78
78
304
301
$750 million, 4% Notes due 2022
743
741
100
100
17
17

(2)

892
$300 million, 7.875% Debentures due 2027
299
298
82
82
498
498
295
295
743
743
$83 million, 8.3% Step Down Notes due 2033
Other, including capital leases

TOTAL LONG-TERM DEBT
32
$
5,020
43
$
4,979
(1) As explained in Note 2(B), in the fourth quarter of 2015, the Company retrospectively adopted ASU 2015-03 that requires debt issuance costs to be netted against the carrying value of the
debt. Amounts presented above for 2014 have been retrospectively adjusted to conform to the new guidance. The impact on 2014 balances was not material.
(2) 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 Companys interest rate risk
management and these derivative instruments.
On March 11, 2015, the Company issued $900 million of 10-Year

Notes due April 15, 2025 at a stated interest rate of 3.25%
($892 million, net of discount and issuance costs, with an effective
annual interest rate of 3.36%). Interest is payable on April 15 and
October 15 of each year beginning October 15, 2015. The proceeds
of this debt were used to repay debt maturing in 2016 and in 2019 as
described below.
The Company may redeem the newly issued Notes, at any time, in
whole or in part, at a redemption price equal to the greater of:
100% of the principal amount of the Notes to be redeemed; or
the present value of the remaining principal and interest payments
on the Notes being redeemed discounted at the applicable Treasury
rate plus 17.5 basis points.
The following debt transactions occurred in April 2015:

The Company redeemed its 2.75% Notes due 2016, including
accrued interest from November 15, 2014 through the settlement
date of April 13, 2015. The redemption price equaled the present
value of the remaining principal and interest payments on the Notes
being redeemed, discounted at a rate equal to the 10-year Treasury
Rate plus a fixed spread of 30 basis points. The Company paid
$626 million including accrued interest and expenses, resulting in a
pre-tax loss on early debt extinguishment of $21 million
($14 million after-tax) that was recognized in the second quarter of
2015.
PART II

2015.
The Company has a five-year revolving credit and letter of credit
agreement for $1.5 billion that permits up to $500 million to be used
for letters of credit. This agreement extends through December 2019
and is diversified among 16 banks with three banks each having 12%
of the commitment and the remainder spread among 13 banks. The
credit agreement includes options to increase the commitment
amount to $2 billion and to extend the term past December 2019,
subject to consent by the administrative agent and the committing
banks. The credit agreement is available for general corporate
purposes including for the issuance of letters of credit. The credit
agreement contains customary covenants and restrictions, including a
financial covenant that the Company may not permit its leverage ratio
to be greater than 0.50. The leverage ratio is total consolidated debt to
total consolidated capitalization (each as defined in the credit
agreement) and excludes net unrealized appreciation in fixed
maturities and the portion of the post-retirement benefits liability
adjustment attributable to pension that is included in accumulated

other comprehensive loss on the Companys consolidated balance
sheet.
The Company had $7.9 billion of borrowing capacity within the
maximum debt coverage covenant in the letter of credit agreement, in
addition to the $5.2 billion of debt outstanding as of December 31,
2015. This additional borrowing capacity includes the $1.5 billion
available under the credit agreement. Letters of credit outstanding as
of December 31, 2015 totaled $19 million.
The Company was in compliance with its debt covenants as of
December 31, 2015.
Maturities of long-term debt, excluding capital leases, are as follows
(in millions): none in 2016, $250 in 2017, $131 in 2018, none in
2019, $550 in 2020 and the remainder in years after 2020. Maturities
of debt under capital lease arrangements are as follows (in millions):
$23 in 2016, $12 in 2017, $7 in 2018, $6 in 2019, none in 2020 and
the remainder in years after 2020. Interest expense on long-term and
short-term debt was $252 million in 2015, $265 million in 2014, and
$270 million in 2013. The 2015 expense excludes losses on the early
extinguishment of debt.
NOTE 16 Common and Preferred Stock

As of December 31, the Company had issued the following shares:
2015
2014
2013
259,276
275,526
285,829
2,751
2,284
3,319
Repurchased common stock
(5,483)
(18,534)
(13,622)
Outstanding December 31,
256,544
259,276
275,526
(Shares in thousands)
Common: Par value $0.25; 600,000 shares authorized

Outstanding January 1,
Issued for stock option and other benefit plans
Treasury stock
ISSUED DECEMBER 31,
The Company maintains a share repurchase program authorized by its

Board of Directors. Under this program, we may repurchase shares
from time to time, depending on market conditions and alternate uses
of capital. We may suspend activity under our share repurchase
program from time to time and may also remove such suspensions
without public announcement. We may also repurchase shares at
times when we otherwise might be precluded from doing so under
insider trading laws or because of self-imposed trading black-out
periods by using a Rule 10b5-1 trading plan.
39,601
36,869
90,619
296,145
296,145
366,145
In 2014, the Company retired 70 million shares of treasury stock.

This transaction had no effect on total shareholders equity.
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, 2015, 2014 or 2013.
PART II
NOTE 17 Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) 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:
Tax
(Expense)
Benefit
(In millions)
2015
Pre-Tax
Net unrealized appreciation on securities, January 1,
Net unrealized (depreciation) on securities arising during the year

Reclassification adjustment for losses included in shareholders net income (net realized investment gains)
955
(335)
After-Tax
$
620
(389)
157
(232)
46
(16)
30
(343)
141
(202)
Net unrealized appreciation on securities, December 31,
612
(194)
418
Net unrealized (depreciation) on derivatives, January 1,
(12)
(8)
Net unrealized appreciation on derivatives arising during the year
10
(3)
Reclassification adjustment for losses included in shareholders net income (other operating expenses)
12
(4)
22
(7)
15
Net unrealized appreciation on derivatives, December 31,
Net translation of foreign currencies, January 1,
Net translation of foreign currencies arising during the year
10
(71)
(224)
(3)
12
7
(62)
(212)
Net translation of foreign currencies, December 31,
(295)
21
(274)
Postretirement benefits liability adjustment, January 1,
(2,286)
800
(1,486)
Reclassification adjustment for amortization of net losses from past experience and prior service costs (other
operating expenses)
68
(23)
45
Net change due to valuation update
63
(23)
40
Net postretirement benefits liability adjustment arising during the year
131
Postretirement benefits liability adjustment, December 31,
(2,155)
(46)
$
Pre-Tax
Net unrealized appreciation on securities arising during the year

Reclassification adjustment for (gains) included in shareholders net income (net realized investment gains)
733
249
(27)
Net unrealized appreciation on securities arising during the year
85
$
Tax
(Expense)
Benefit
(In millions)
2014
754
(256)
After-Tax
$
(89)
10
222
(1,401)
477
160
(17)
(79)
143
955
(335)
620
Net unrealized (depreciation) on derivatives, January 1,

Net unrealized appreciation on derivatives, arising during the year
(29)
17
10
(6)
(19)
11
Net unrealized (depreciation) on derivatives, December 31,
(12)
(8)

Net translation of foreign currencies, arising during the year
91
(162)
(9)
18
82
(144)
(71)
(62)
(1,630)
570
(1,060)
operating expenses)
Reclassification adjustment for settlement (other operating expenses)
54
6
(18)
(2)
36
4
Total reclassification adjustment to shareholders net income (other operating expenses)

Net change due to valuation update
60
(716)
(20)
250
40
(466)
(656)
230
(426)
(2,286)
800
(1,486)
PART II
Tax
(Expense)
Benefit
(In millions)
2013
Pre-Tax
$

Reclassification adjustment for (gains) included in net income (net realized investment gains)
1,352
(498)
(121)
(465)
After-Tax
$
166
43
(619)
887
(332)
(78)
209
(410)
733
(256)
477
Net unrealized depreciation on derivatives, January 1,

(43)
14
15
(5)
(28)
9
Net unrealized depreciation on derivatives, December 31,
(29)
10
(19)

Net translation of foreign currencies arising during the year
91
(22)
13
69
13
91
(9)
82
(2,460)
861
(1,599)
operating expenses)
Reclassification adjustment for curtailment gain (other operating expenses)
70
(19)
(25)
7
45
(12)
Total reclassification adjustment to shareholders net income (other operating expenses)

Net change due to valuation update and plan amendments
51
779
(18)
(273)
33
506
830
(291)
539
(1,630)
570
(1,060)
NOTE 18 Shareholders Equity and Dividend Restrictions

State insurance departments and foreign jurisdictions that regulate certain of the Companys subsidiaries prescribe accounting practices (differing
in some respects from GAAP) to determine statutory net income and surplus. The Companys life insurance and HMO company subsidiaries are
regulated by such statutory requirements. The statutory net income of the Companys life insurance and HMO subsidiaries for the years ended,
and their statutory surplus as of December 31, were as follows:
2015
(In billions)
2014
2013
Net income
2.1
2.0
1.6
Surplus
8.0
7.5
6.3
The Companys HMO and life subsidiaries are 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, 2015, these amounts, including restricted net assets of the Company, were as follows:
2015
(In billions)
Minimum statutory surplus required by regulators
2.6
Investments on deposit with regulatory bodies
0.4
Maximum dividend distributions permitted in 2016 without state approval
1.5
Maximum loans to the parent company permitted without state approval
1.3
Restricted net assets of Cigna Corporation
8.6
Statutory surplus for each of the Companys life insurance and HMO subsidiaries is sufficient to meet the minimum required by regulators. For
one of the Companys foreign insurance subsidiaries, the regulatory authority has permitted deferral of certain policy acquisition costs that
increased statutory capital and surplus by approximately $0.2 billion as of December 31, 2015. There were no other permitted practices for the
Companys insurance subsidiaries that significantly differed from prescribed regulatory accounting practices.
PART II
NOTE 19 Income Taxes

A.
Income Tax Expense
The components of income taxes for the years ended December 31 were as follows:
2015
(In millions)
2014
2013
Current taxes
U.S. income taxes
Foreign income taxes
1,076
93
State income taxes
1,068
115
382
77
60
49
42
1,229
1,232
501
U.S. income taxes
22
10
152
Foreign income taxes (benefits)
(6)
(22)
46
(10)
(1)
21
(22)
197
Deferred taxes (benefits)
State income taxes (benefits)

Total income taxes
1,250
1,210
698
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:
2015
(In millions)
Tax expense at nominal rate
1,164
2014
$
1,156
2013
$
761
Effect of undistributed foreign earnings
(67)
(74)
(42)
Health insurance industry tax
109
83
42
25
27
State income tax (net of federal income tax benefit)

Other
Total income taxes
2
$
1,250
20
$
1,210
(48)
$
698
Consolidated pre-tax income from the Companys foreign operations was approximately 11% of the Companys pre-tax income in 2015, 10% in
2014 and 12% in 2013.
Effective Tax Rates

The consolidated effective tax rates of 37.6% in 2015 and 36.6% in
2014 have increased from historical levels due to the health insurance
industry tax that took effect in 2014 and that is not deductible for
federal income tax purposes. Other matters having a significant
impact on the effective tax rate included:
Undistributed foreign earnings. As part of its global capital
management strategy, the Companys foreign operations retain a
significant portion of their earnings overseas. These undistributed
earnings are deployed outside of the U.S. in support of the liquidity
and capital needs of our foreign operations. The Company does not
intend to repatriate these earnings to the U.S. and as a result,
income taxes are provided using the respective foreign jurisdictions
tax rate. The Company has accumulated undistributed foreign

earnings of $2.2 billion as of December 31, 2015. If the Company
intended to repatriate these foreign earnings to the U.S., the
Companys consolidated balance sheet would have included an
additional $290 million of deferred tax liabilities as of
December 31, 2015.
Completion of IRS examinations/other 2013 impacts. In 2013,
the Internal Revenue Service (IRS) completed its examination of
the Companys 2009 and 2010 tax years, resulting in an increase to
shareholders net income of $18 million. In addition, income tax
expense was reduced in 2013 due to certain other tax benefits
related to the Companys foreign operations.
PART II
B.
Deferred Income Taxes
Deferred income tax assets and liabilities as of December 31 were as follows:

2015
(In millions)
2014
Deferred tax assets

Employee and retiree benefit plans
535
597
Other insurance and contractholder liabilities
465
Net operating losses
101
72
Other accrued liabilities
177
203
99
105
1,377
1,417
Other
Deferred tax assets before valuation allowance
Valuation allowance for deferred tax assets
440
(71)
(49)
1,306
1,368
765
755
Unrealized appreciation on investments and foreign currency translation
152
298
Deferred tax assets, net of valuation allowance

Deferred tax liabilities
Other
Total deferred tax liabilities
Net deferred income tax assets
Included in the consolidated net deferred tax asset of $379 million is

approximately $150 million of deferred tax liabilities attributable to
foreign jurisdictions, most notably Korea and Taiwan.
Management believes that future results will be sufficient to realize the
Companys deferred tax assets. With the exception of certain net
operating loss related tax benefits, the Companys deferred tax benefits
may be carried forward indefinitely. Net operating loss benefits are
primarily attributable to foreign jurisdictions. The Company
C.
10
22
927
1,075
379
293
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. The increased
valuation allowance for 2015 is primarily attributable to tax benefits
of certain overseas start-up operations.
Uncertain Tax Positions
A reconciliation of unrecognized tax benefits for the years ended December 31 was as follows:
2015
(In millions)
26
2014
$
17
2013
$
51
Decrease due to prior year positions
(35)
Increase due to current year positions
12
Reduction related to lapse of applicable statute of limitations

(2)
$
31
(3)
$
26
(5)
$
17
PART II
D.
Other Tax Matters
The Internal Revenue Service is expected to complete their

examination of the Companys 2011 and 2012 consolidated federal
income tax returns during the second half of 2016.
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 audit activity is expected
for tax years prior to 2011, and prior to 2009 for foreign audit activity.
NOTE 20 Employee Incentive Plans

The People Resources Committee (the Committee) of the Board of
Directors awards stock options, restricted stock, deferred stock and
strategic performance shares to certain employees. The Committee
has issued common stock instead of cash compensation and dividend
equivalent rights to a very limited extent, as part of restricted and
deferred stock units. The Company issues shares from Treasury stock
for option exercises, awards of restricted stock grants and payment of
strategic performance shares, deferred stock units and restricted stock
units.
Compensation cost and related tax benefits for these awards were as follows:
2015
2014
$ 111
$ 24
$ 101
$ 12
(In millions)
Compensation cost
Tax benefits
2013
$
$
88
25
The Company had the following number of common stock shares available for award at December 31: 8.6 million in 2015, 10.3 million in 2014
and 13.2 million in 2013.
Stock options. The Company awards options to purchase the Companys common stock at the market price of the stock on the grant date.
Options vest over periods ranging from one to five years and expire no later than 10 years from grant date.
The table below shows the status of, and changes in, common stock options during the last three years:
(Options in thousands)
Outstanding January 1
Options
2015
Weighted Average
Exercise
Price
Options
2014
Weighted Average
Exercise
Price
Options
2013
Weighted Average
Exercise
Price
7,331
51.84
7,350
42.24
8,951
36.29
1,410
120.94
2,012
78.11
1,890
58.84
(2,146)
43.63
(1,869)
41.29
(3,107)
34.99
(162)
86.04
(162)
64.27
(384)
43.86
OUTSTANDING DECEMBER 31
6,433
68.86
7,331
51.84
7,350
42.24
Options exercisable at year-end
3,414
46.55
3,919
38.11
4,217
35.84
Granted
Exercised
Expired or canceled
Compensation expense of $36 million related to unvested stock options at December 31, 2015 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:
2014
2013
Intrinsic value of options exercised
$ 179
2015
$
84
$ 105
Cash received for options exercised
94
76
$ 109
Excess tax benefits realized from options exercised
33
19
(In millions)
23
PART II
The following table summarizes information for outstanding common stock options at December 31, 2015:
Options
Outstanding
Options
Exercisable
6,433
3,414
Number (in thousands)

Total intrinsic value (in millions)
498
341
Weighted average exercise price
68.86
46.55
Weighted average remaining contractual life
6.8
5.4
The weighted average fair value of options granted under employee incentive plans was $36.40 for 2015, $23.56 for 2014 and $19.84 for 2013
using the Black-Scholes option-pricing model and the assumptions presented in the following table.
Dividend yield
Expected volatility
Risk-free interest rate
Expected option life
The expected volatility reflects the Companys past daily stock price
volatility. The Company does not consider volatility implied in the
market prices of traded options to be a good indicator of future
volatility because remaining maturities of traded options are less than
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 grant.
Expected option life reflects the Companys historical experience.
Restricted stock. The Company awards restricted stock to its
employees or directors with vesting periods ranging from two to five
years. These awards are generally in one of two forms: restricted stock
grants or restricted stock units. Restricted stock grants are the most
2015
2014
2013
0.0%
0.1%
0.1%
35.0%
35.0%
40.0%
1.3%
1.3%
0.7%
4.3 years
4.3 years
4.5 years
widely used form and are used for substantially all U.S.-based
employees receiving such awards. Recipients of restricted stock grants
accumulate dividends and can vote during the vesting period, but
forfeit their awards and accumulated dividends if their employment
terminates before the vesting date. Awards of restricted stock units are
generally limited to overseas employees. A restricted stock unit
represents a right to receive a common share of stock when the unit
vests. Recipients of restricted stock units are entitled to accumulate
hypothetical dividends, but cannot vote during the vesting period.
They forfeit their units and accumulated dividends if their
employment terminates before the vesting date.
The table below shows the status of, and changes in, restricted stock grants and units during the last three years:
(Awards in thousands)
2015
Weighted Average
Fair Value at
Grants/Units
Award Date
Awarded
Vested
Forfeited
2013
Weighted Average
Fair Value at
Grants/Units
Award Date
2,121 $
53.59
2,844 $
41.56
4,064 $
35.00
352 $
121.93
454 $
78.99
525 $
59.36
(736) $
41.99
(1,065) $
32.34
(1,480) $
30.24
(95) $
68.31
(112) $
52.95
(265) $
39.46
1,642 $
72.58
2,121 $
53.59
2,844 $
41.56
The fair value of vested restricted stock was: $92 million in 2015,
$85 million in 2014 and $94 million in 2013.
At the end of 2015, approximately 3,900 employees held 1.6 million
restricted stock grants and units with $56 million of related
compensation expense to be recognized over the next two years
(weighted average period).
Strategic Performance Shares. The Company awards strategic
performance shares to executives and certain other key employees
generally with a performance period of three years. Strategic
2014
Weighted Average
Fair Value at
Grants/Units
Award Date
performance shares are divided into two broad groups: 50% are
subject to a market condition (total shareholder return relative to
industry peer companies) and 50% are subject to performance
conditions (2013 and 2014 awards: revenue growth and cumulative
adjusted net income; 2015 awards, cumulative adjusted net income).
These targets are set by the Committee. At the end of the performance
period, holders of strategic performance shares will be awarded
anywhere from 0 to 200% of the original grant of strategic
performance shares in Cigna common stock.
PART II
The table below shows the status of, and changes in, strategic performance shares during the last three years:
(Awards in thousands)
2015
Weighted Average
Fair Value at
Grants/Units
Award Date
1,547
59.20
Awarded
Vested
1,572
2013
Weighted Average
Fair Value at
Grants/Units
Award Date
49.67
1,600
41.92
311
121.78
450
78.50
616
59.84
(608)
45.51
(397)
43.53
(448)
36.88
(62)
76.33
(78)
58.41
(196)
47.52
1,188
81.68
1,547
59.20
1,572
49.67
Forfeited
2014
Weighted Average
Fair Value at
Grants/Units
Award Date
The fair value of vested strategic performance shares was $119 million
in 2015, $57 million in 2014 and $42 million in 2013.
At the end of 2015, approximately 1,300 employees held 1.2 million
strategic performance shares and $37 million of related compensation
expense is expected to be recognized over the next two years. For

strategic performance shares subject to a performance condition, the
amount of expense may vary based on actual performance in 2016
and 2017.
NOTE 21 Leases and Rentals

The Companys operating leases are primarily for office space. Some
of these leases include renewal options and other incentives that are
amortized over the life of the lease. Office space leases active in 2015
had terms ranging from one month to 18 years. Net rental expenses
for operating leases amounted to approximately $165 million in 2015,

$150 million in 2014 and $140 million in 2013. As of December 31,
2015, future net minimum rental payments under non-cancelable
operating leases were approximately $700 million, payable as follows:
(In millions)
Operating Lease
Payments
2016
2017
2018
2019
2020
2021 and thereafter
$
$
$
$
$
$
127
121
100
85
77
190
The Company also has capital lease arrangements. See Note 8 and Note 15 for further information on assets recorded under capital leases and the
related obligations.
NOTE 22 Segment Information

The financial results of the Companys 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 encompasses both the U.S.
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 offers Medicare Advantage
and Medicare Part D plans to seniors and Medicaid plans.
Global Supplemental Benefits includes supplemental health, life and
accident insurance products offered in selected international markets
and in the U.S.
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
GMDB and GMIB business effectively exited through reinsurance
with 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, such
as 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
PART II
options, expense associated with frozen pension plans and certain

costs for corporate projects, including overhead.
new performance metrics. Income or expense amounts are excluded

from adjusted income from operations for the following reasons:
In the Companys 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.
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.
The Company uses adjusted income (loss) 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. Beginning on January 1, 2015, adjusted
income from operations was newly defined as shareholders net
income (loss) excluding after-tax realized investment gains and losses,
net amortization of other acquired intangible assets and special items.
Prior period segment information has been restated to reflect these
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 Companys business
operations. The amortization amount is net of one-time benefits of
acquisitions in which the fair value of net assets acquired exceeds the
purchase price.
Special items, if any, are excluded because management believes they
are not representative of the underlying results of operations.
In 2013, adjusted income from operations also excluded the results of
the guaranteed minimum income benefit (GMIB) business prior to
the reinsurance transaction with Berkshire.
For the years ended December 31, 2015, 2014 and 2013, the Company reported the following special item charges:
(In millions)
Year(1)
Description and Financial Statement Line Item(s)
After-tax
Before-tax
2015
2015
2013
Debt extinguishment costs (Other operating expenses, see Note 15 for details)
Merger related transaction costs (Other operating expenses, see Note 3 for details)
Charge related to a reinsurance transaction (see Note 7 for details)
Charge for a disability claims regulatory matter (see Note 23 for details)
Charge for an organizational efficiency plan (Other operating expenses, see Note 6 for details)
Costs associated with a pharmacy benefit management (PBM) services agreement (Other operating expenses)(2)
$
$
$
65
57
507
$
$
$
51
$
$
40
24
$
$
2013
2013
2013
(1) There were no special items recorded in 2014.

(2) Under this agreement, the Company utilizes a vendors technology and service platforms, retail network contracting and claims processing services.
100
66
781
727
54
77
75
2
60
37
PART II
Summarized segment financial information for the years ended December 31, was as follows:
(In millions)
Global Health
Care
Global
Supplemental
Benefits
Group
Disability
and Life
Other
Operations
Corporate
Total
2015
Premiums
22,696
3,000
3,843
103
$29,642
4,357
46
91
13
(19)
4,488
340
103
337
369
1,153
2,536
2,536
29,929
3,149
4,271
485
(15)
37,819
43
57
29,972
3,149
4,276
494
(15)
37,876
526
31
26
585
27,028
2,849
3,796
374
502
34,549
Income before taxes
2,944
300
480
120
(517)
3,327
Income taxes and net income attributable to noncontrolling

interests
1,150
33
152
40
(142)
1,233
Shareholders net income by segment
1,794
267
328
80
(375)
2,094
(30)
(1)
(4)
(5)
(40)
84
(4)
80
Debt extinguishment costs
65
65
Merger-related transaction costs
57
57
(253)
$ 2,256

Total revenues
Total benefits and expenses
After-tax adjustments to reconcile to adjusted income from

operations:
Amortization of other acquired intangible assets, net(1)
Special items (see summary on Page 106):
1,848
262
324
75
(1) As disclosed in Note 8, includes a one-time $23 million benefit.
PART II
(In millions)
Global Health
Care
Global
Supplemental
Benefits
Group
Disability
and Life
Other
Operations
Corporate
Total
2014
Premiums
20,709
2,844
3,549
112
$27,214
4,005
52
86
14
(16)
4,141
337
109
335
384
1,166
2,239
2,239
27,290
3,005
3,970
510
(15)
34,760
79
22
15
35
154
27,369
3,008
3,992
525
20
34,914
513
50
22
588
24,610
2,734
3,513
413
340
31,610
Income before taxes
2,759
274
479
112
(320)
3,304
Income taxes and net loss attributable to noncontrolling interests
1,059
41
148
33
(79)
1,202
1,700
233
331
79
(241)
2,102
(54)
(3)
(14)
(11)
(24)
(106)
106
13
119
(265)
$ 2,115

Total revenues

operations:
1,752
243
317
68
PART II
(In millions)
Global Health
Care
Global
Supplemental
Benefits
Group
Disability
and Life
Other
Operations
Corporate
Total
2013
Premiums
19,626
2,496
3,348
105
$25,575
3,518
43
78
(24)
(14)
3,601
325
100
321
408
10
1,164
1,827
1,827
25,296
2,639
3,747
489
(4)
32,167
113
62
35
213
25,409
2,642
3,809
524
(4)
32,380
529
50
14
597
22,957
2,412
3,387
1,120
328
30,204
2,452
230
422
(596)
(332)
2,176
862
50
123
(225)
(110)
700
1,590
180
299
(371)
(222)
1,476
(73)
(5)
(40)
(23)
(141)
127
17
144
(25)
(25)

Total revenues
Income before taxes
Income taxes and net loss attributable to noncontrolling interests
operations:

Special items (see summary on Page 106):
Costs associated with PBM service agreement
24
24
Charge related to reinsurance transaction
507
507
Charge for disability claims regulatory matter
51
51
31
40
(222)
$ 2,076
Charge for organizational efficiency plan

1,699
200
311
88
PART II
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:
2015
2014
2013
Guaranteed cost
$ 4,761
$ 4,600
$ 4,463
Experience-rated
2,329
2,322
2,292
Stop loss
2,701
2,318
1,907
International health care
1,834
1,827
1,752
Dental
1,392
1,257
1,139
Medicare
6,142
5,660
5,639
Medicaid
1,102
515
317
Medicare Part D
1,589
1,405
1,387
846
805
730
22,696
20,709
19,626
4,107
3,767
3,307
26,803
24,476
22,933
Disability
1,899
1,767
1,616
Life, Accident and Supplemental Health
5,054
4,739
4,322
Mail order pharmacy
2,536
2,239
1,827
374
373
305
$ 36,666
$ 33,594
$ 31,003
(In millions)
Medical
Premiums by product:
Other medical premiums

Total medical premiums
Medical fees
Total medical premiums and fees
Other
Total
Foreign and U.S. revenues from external customers for the three years ended December 31 are shown below. In the periods shown, no foreign
country contributed more than 5% of consolidated revenues from external customers.
2015
(In millions)
U.S.
Foreign
TOTAL
33,185
2014
$
3,481
$
36,666
30,070
2013
$
3,524
$
33,594
27,868
3,135
31,003
The Company had net receivables from CMS of $1.5 billion as of December 31, 2015 and $0.8 billion as of December 31, 2014. These amounts
were included in premiums, accounts and notes receivable and reinsurance recoverables. Receivables from CMS included $0.4 billion as of
December 31, 2015 and $0.3 billion as of December 31, 2014 related to government risk mitigation programs in our Commercial business. As a
percentage of consolidated revenues, premiums and fees from CMS were 21% in 2015, 21% in 2014 and 22% in 2013. These amounts were
reported in the Global Health Care segment.
PART II
NOTE 23 Contingencies and Other Matters

The Company, through its subsidiaries, is contingently liable for
various guarantees provided in the ordinary course of business.
A.
Financial Guarantees: Retiree and Life

Insurance Benefits
Separate account assets are contractholder funds maintained in

accounts with specific investment objectives. The Company records
separate account liabilities equal to separate account assets. In certain
cases, the Company guarantees a minimum level of benefits for
retirement and insurance contracts written in separate accounts. The
Company establishes an additional liability if management believes
that the Company will be required to make a payment under these
guarantees.
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. This
percentage varies depending on the asset class within a sponsoring
employers portfolio (for example, a bond fund would require a lower
percentage than a riskier equity fund) and thus will vary as the
composition of the portfolio changes. If employers do not maintain
the required levels of separate account assets, the Company or an
affiliate of the buyer of the retirement benefits business (Prudential
Retirement Insurance and Annuity Company) has the right to redirect
the management of the related assets to provide for benefit payments.
As of December 31, 2015, employers maintained assets that exceeded
the benefit obligations. Benefit obligations under these arrangements
were $495 million as of December 31, 2015 and approximately 13%
of these are reinsured by an affiliate of the buyer of the retirement
benefits business. The remaining guarantees are provided by the
Company with minimal reinsurance from third parties. There were no
additional liabilities required for these guarantees as of December 31,
2015. Separate account assets supporting these guarantees are
classified in Levels 1 and 2 of the GAAP fair value hierarchy. See
Note 10 for further information on the fair value hierarchy.
The Company does not expect that these financial guarantees will
have a material effect on the Companys consolidated results of
operations, liquidity or financial condition.
B.
Guaranteed Minimum Income Benefit

Contracts
Under these guarantees, future payment amounts are dependent on

underlying mutual fund investment values and interest rate levels
prior to and at the date of annuitization election that must occur
within 30 days of a policy anniversary after the appropriate waiting
period. Therefore, the 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 (2016 through 2021); and
all underlying mutual fund investment values remained at the
December 31, 2015 value of $944 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 $776 million, which is lower than the recorded
liability for GMIB calculated using fair value assumptions. See
Notes 7, 10 and 12 for further information on GMIB contracts.
C.
Certain Other Guarantees
The Company had indemnification obligations to lenders of up to

$173 million as of December 31, 2015, related to borrowings by
certain real estate joint ventures that the Company either records as an
investment or consolidates. These borrowings, that are nonrecourse to
the Company, are secured by the joint ventures real estate properties
with fair values in excess of the loan amounts and mature at various
dates beginning in 2016 through 2021. The Companys
indemnification obligations would require payment to lenders 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 these indemnification
obligations. Any payments that might be required could be recovered
through a refinancing or sale of the assets. In some cases, the
Company also has recourse to partners for their proportionate share of
amounts paid. There were no liabilities required for these
indemnification obligations as of December 31, 2015.
As of December 31, 2015, the Company guaranteed that it would
compensate the lessors for a shortfall of up to $41 million in the
market value of certain leased equipment at the end of the lease.
Guarantees of $16 million expire in 2016 and $25 million expire in
2022. The Company had liabilities for these guarantees of
$14 million as of December 31, 2015.
The Company does not expect that these guarantees will have a
material adverse effect on the Companys consolidated results of
operations, financial condition or liquidity.
The Company had indemnification obligations as of December 31,
2015 in connection with acquisition, disposition and reinsurance
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,
actuarial models, 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
PART II
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, 2015.
D.
Guaranty Fund Assessments
The Company operates in a regulatory environment that may require

the Company to participate in assessments under state insurance
guaranty association laws. The Companys 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. For the year ended December 31, 2015 and 2014,
charges related to guaranty fund assessments were immaterial to the
Companys results of operations.
The Company is aware of an insurer that is in rehabilitation. In 2012,
the state court denied the regulators amended petitions for
liquidation and set forth specific requirements and a deadline for the
regulator to develop a plan of rehabilitation without liquidating the
insurer. The regulator has appealed the courts decision. If the actions
taken in the rehabilitation plan fail to improve this insurers financial
condition, or if the state courts ruling is overturned on appeal, this
insurer may be forced into insolvency. In that event, the Company
would be required to pay guaranty fund assessments related to this
insurer. Due to the uncertainties surrounding this matter, the
Company is unable to estimate the amount of any potential guaranty
fund assessments. The Company is monitoring this situation.
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 health services
business. These actions may include benefit disputes, breach of
contract claims, tort claims, provider disputes, disputes regarding
reinsurance arrangements, employment and employment
discrimination-related suits, employee benefit claims, wage and hour
claims, privacy, intellectual property claims and real estate-related
disputes. There are currently, and may be in the future, attempts to
bring class action lawsuits against the industry. The Company also is
regularly engaged in IRS audits and may be subject to examinations
by various state and foreign taxing authorities. Disputed income tax
matters arising from these examinations, including those resulting in
litigation, are accounted for under GAAP for uncertain tax positions.
Further information on income tax matters can be found in Note 19.
The business of administering and insuring health services programs,
particularly health care and group insurance programs, is heavily
regulated by federal and state laws and administrative agencies, such as
state departments of insurance, HHS and the U.S. Departments of
Treasury, Labor and Justice, as well as the courts. Health care
regulation and legislation in its various forms, including the
implementation of Health Care Reform, other regulatory reform

initiatives, such as those relating to Medicare programs, or additional
changes in existing laws or regulations or their interpretations, could
have a material adverse effect on the Companys business, results of
operations and financial condition.
In addition, there is heightened review by federal and state regulators
of the health care, disability and life insurance industry business and
related reporting practices. Cigna is frequently the subject of
regulatory market conduct reviews and other examinations of its
business and reporting practices, audits and investigations by state
insurance and health and welfare departments, state attorneys general,
CMS and the Office of Inspector General (OIG). With respect to
Cignas Medicare Advantage business, the CMS and OIG perform
audits to determine a health plans compliance with federal regulations
and contractual obligations, including compliance with proper coding
practices (sometimes referred to as Risk Adjustment Data Validation
Audits or RADV audits) that may result in retrospective
adjustments to payments made to health plans. Regulatory actions
can result in assessments, civil or criminal fines or penalties or other
sanctions, including loss of licensing or exclusion from participating
in government programs.
As a global company, Cigna is also subject to the laws, regulations and
rules of the foreign jurisdictions in which it conducts business.
Foreign laws and rules and regulatory audit and investigation practices
may differ from, or be more stringent than, similar requirements in
the U.S.
Regulation, legislation and judicial decisions have resulted in changes
to industry and the Companys business practices, financial liability or
other sanctions and will continue to do so in the future.
When the Company (in the course of its regular review of pending
litigation and legal or regulatory matters) has determined that a
material loss is reasonably possible, the matter is disclosed. Such
matters are described in the Litigation Matters and Regulatory
Matters sections below. In accordance with GAAP, when litigation
and regulatory matters present loss contingencies that are both
probable and estimable, the Company accrues the estimated loss by a
charge to net income. The amount accrued represents the Companys
best estimate of the probable loss at the time. If only a range of
estimated losses can be determined, the Company accrues an amount
within the range that, in the Companys judgment, reflects the most
likely outcome; if none of the estimates within that range is a better
estimate than any other amount, the Company accrues the minimum
amount of the range.
In cases when the Company has accrued an estimated loss, the accrued
amount may differ materially from the ultimate amount of the loss. In
many proceedings, it is inherently difficult to determine whether any
loss is probable or even possible or to estimate the amount or range of
any loss. 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. As a litigation or regulatory matter develops, the Company
monitors the matter for further developments that could affect the
amount previously accrued, if any, and updates such amount accrued
or disclosures previously provided as appropriate.
PART II
The outcome of litigation and other legal or regulatory matters is

always uncertain, and unfavorable outcomes that are not justified by
the evidence or existing law can occur. The Company believes that it
has valid defenses to the matters pending against it and is defending
itself vigorously. Except as otherwise noted, 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 Companys results of operations, financial
condition or liquidity based upon current knowledge and taking into
consideration current accruals. The Company had pre-tax reserves as
of December 31, 2015 of $190 million ($125 million after-tax) for
the matters discussed below. 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 Companys results of operations, financial
condition or liquidity for any particular period.
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 Plans 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 Companys 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. The Second Circuit upheld
this decision. From 2008 through the present, 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. Accordingly, management expects this lawsuit to be
resolved, and the Plan to be amended to comply with the District
Courts order, in 2016. The Companys reserve for this litigation
remains reasonable at December 31, 2015 based on a calculation
compliant with the court order.
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

Companys 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 plaintiff s 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 Companys 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 Courts decisions
in favor of the Company, including the class certification decision, to
the Third Circuit. The Company will continue to vigorously defend
its position.
Regulatory Matters
CMS actions. In January 2016, CMS issued to the Company a
Notice of Imposition of Immediate Intermediate Sanctions (the
Notice). The Notice requires the Company to suspend certain
enrollment and marketing activities for its Medicare AdvantagePrescription Drug and Medicare Part D Plans. The sanctions do not
impact the ability of current enrollees to remain covered by the
Companys Medicare Advantage-Prescription Drug or Medicare
Part D Plans.
CMS imposed sanctions based on its finding of deficiencies with the
Companys operations of its Parts C and D appeals and grievances,
Part D formulary and benefit administration, and compliance
program. The Company is working to resolve these matters as quickly
as possible and is cooperating fully with CMS on its review. Based on
managements current expectations, the Company does not expect the
impact to its 2016 consolidated results of operations, financial
condition or cash flows to be material.
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
Companys long-term disability claims handling practices. Most other
jurisdictions have joined the agreement as participating,
non-monitoring states. The agreement requires, among other things:
(1) enhanced procedures related to documentation and disposition;
(2) a two-year monitoring period; and (3) reassessment of claims
denied or closed during a two-year prior period, except California that
has a three-year reassessment period. As previously disclosed, the
PART II
Company recorded a charge of $77 million before-tax ($51 million

after-tax) in the first quarter of 2013 related to this matter. The
Company is actively addressing 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.
Other Legal Matters

Following announcement of the Companys merger agreement with
Anthem as discussed in Note 3, six putative class action complaints
(collectively the complaints or Cigna Merger Litigation) were filed
by purported Cigna shareholders on behalf of a purported class of
Cigna shareholders. Five of the complaints were filed in the Court of
Chancery of the State of Delaware. The sixth complaint was filed in
the Connecticut Superior Court, Judicial District of Hartford.
Additional lawsuits arising out of or relating to the merger agreement
or the merger may be filed in the future.
Cigna, members of the Cigna board of directors, Anthem and
Anthem Merger Sub Corp (Merger Sub) have been named as
defendants. The plaintiffs generally assert that the members of the
Cigna board of directors breached their fiduciary duties to the Cigna
shareholders during merger negotiations and by entering into the
merger agreement and approving the merger, and that Cigna, Anthem
and Merger Sub aided and abetted such breaches of fiduciary duties.
The allegations include, among other things, that (1) the merger
consideration undervalues Cigna, (2) the sales process leading up to
the merger was flawed due to purported conflicts of interest of
members of the Cigna board of directors and (3) certain provisions of
the merger agreement inappropriately favor Anthem and inhibit

competing bids. Plaintiffs seek, among other things, injunctive relief
enjoining the merger, rescission of the merger agreement to the extent
already implemented, and costs and damages.
Effective November 24, 2015, solely to avoid the costs, risks and
uncertainties inherent in litigation, and without admitting any
liability or wrongdoing, the Company, the Companys directors,
Anthem and Merger Sub entered into a Memorandum of
Understanding (MOU) to settle the Cigna Merger Litigation.
Subject to court approval and further definitive documentation in a
settlement agreement that will be subject to customary conditions, the
MOU resolved the Cigna Merger Litigation and provided that the
Company would make certain additional disclosures related to the
merger. If the Court approves the settlement, the Cigna Merger
Litigation will be dismissed with prejudice and all claims that were or
could have been brought in any actions challenging any aspect of the
merger, the merger agreement and any related disclosures will be
released. In connection with the settlement, subject to the ultimate
determination of the Court, plaintiffs counsel may receive an award
of reasonable fees. There can be no assurance that the parties will
ultimately enter into a settlement agreement, or that the Court will
approve the settlement even if the parties were to enter into such
agreement. The MOU may terminate, if, among other reasons, the
Court does not approve the settlement or the merger is not
consummated for any reason. Following entry into the MOU, the five
complaints filed in Delaware were voluntarily dismissed with
prejudice.
PART II
Quarterly Financial Data (unaudited)

The following unaudited quarterly financial data is presented on a consolidated basis for each of the years ended December 31, 2015 and
December 31, 2014. 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.
Three Months Ended
June 30
Sept. 30
March 31
Dec. 31
Consolidated Results
2015
Total revenues
9,467
854
9,492
936
9,389
878
(1)
9,528
659
(2)
426(2)
533
588
547
Basic
2.08
2.30
2.14
1.66
Diluted
2.04
2.26
2.10
1.64
2014
Total revenues
8,496
8,733
8,757
8,928
853
901
818
732
528
573
534
467
Basic
1.96
2.16
2.04
1.80
Diluted
1.92
2.12
2.01
1.77
Stock and Dividend Data

2015
Price range of common stock high
low
Dividends declared per common share
131.13
170.63
166.19
$ 148.51
100.68
124.30
125.61
$ 127.51
0.04
90.63
93.20
97.28
$ 105.73
75.37
73.47
87.33
85.75
0.04
2014
Price range of common stock high
low
Dividends declared per common share
(1) Shareholders net income includes an after-tax charge of $65 million for the early extinguishment of debt in the second quarter of 2015. See Note 15 to the Consolidated Financial Statements
for additional details.
(2) Shareholders net income includes after-tax charges of $29 million in the third quarter of 2015 and $28 million in the fourth quarter of 2015 for advisory, legal and other transactions costs
directly related to the Companys proposed merger with Anthem. See Note 3 to the Consolidated Financial Statements for additional details.
PART II
ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
ITEM 9. Changes in and Disagreements with Accountants

on Accounting and Financial Disclosure
None.
ITEM 9A. Controls and Procedures

A.
Disclosure Controls and Procedures
Based on an evaluation of the effectiveness of Cignas disclosure

controls and procedures conducted under the supervision and with
the participation of Cignas management, Cignas Chief Executive
Officer and Chief Financial Officer concluded that, as of the end of
the period covered by this report, Cignas disclosure controls and
B.
Internal Control Over Financial Reporting
Managements Annual Report on Internal

Control over Financial Reporting
Management of Cigna Corporation is responsible for establishing and
maintaining adequate internal controls over financial reporting. The
Companys internal controls were designed to provide reasonable
assurance to the Companys management and Board of Directors that
the Companys consolidated published financial statements for
external purposes were prepared in accordance with accounting
principles generally accepted in the United States. The Companys
internal control over financial reporting includes those policies and
procedures that:
(i)
procedures are effective to ensure that information required to be

disclosed by Cigna in the reports that it files or submits under the
Exchange Act is recorded, processed, summarized and reported,
within the time periods specified in the SECs rules and forms.
pertain to the maintenance of records that, in reasonable detail,

accurately and fairly reflect the transactions and dispositions of
the assets and liabilities of the Company;
(ii) provide reasonable assurance that transactions are recorded as

necessary to permit preparation of financial statements in
accordance with accounting principles generally accepted in the
United States, and that receipts and expenditures of the
Company are being made only in accordance with authorization
of management and directors of the Company; and
ITEM 9B. Other Information

None.
(iii) provide reasonable assurance regarding prevention or timely

detection of unauthorized acquisitions, use or disposition of the
Companys assets that could have a material effect on the
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements.
Management assessed the effectiveness of the Companys internal
controls over financial reporting as of December 31, 2015. In making
this assessment, management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control Integrated Framework
(2013). Based on managements assessment and the criteria set forth
by COSO, it was determined that the Companys internal controls
over financial reporting are effective as of December 31, 2015.
The Companys independent registered public accounting firm,
PricewaterhouseCoopers, has audited the effectiveness of the
Companys internal control over financial reporting, as stated in their
report located on page 58 in this Form 10-K.
PART III
ITEM 10. Directors and Executive Officers of the
Registrant
A. Directors of the Registrant
The information under the captions Corporate Governance Matters Process for Director Elections, Board of Directors Nominees,
Directors Who Will Continue in Office and Board Meetings and Committees (as it relates to Audit Committee disclosure) in Cignas
definitive proxy statement related to the 2016 annual meeting of shareholders is incorporated by reference.
B. Executive Officers of the Registrant

See PART I Executive Officers of the Registrant on page 30 in this Form 10-K.
C. Code of Ethics and Other Corporate Governance Disclosures

The information under the caption Corporate Governance Matters Codes of Ethics in Cignas definitive proxy statement related to the 2016
annual meeting of shareholders is incorporated by reference.
D. Section 16(a) Beneficial Ownership Reporting Compliance

The information under the caption Ownership of Cigna Common Stock Section 16(a) Beneficial Ownership Reporting Compliance in
Cignas definitive proxy statement related to the 2016 annual meeting of shareholders is incorporated by reference.
ITEM 11. Executive Compensation

The information under the captions Corporate Governance Matters Non-Employee Director Compensation, Compensation Matters
Report of the People Resources Committee, Compensation Discussion and Analysis and Executive Compensation Tables in Cignas
PART III
ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
ITEM 12. Security Ownership of Certain Beneficial

Owners and Management and Related
Stockholder Matters
The following table presents information regarding Cignas equity compensation plans as of December 31, 2015:
(b)
Weighted Average
Exercise Price Per
Share Of
Outstanding Options,
Warrants And Rights
(c) (3)
Securities Remaining
Available For Future
Issuance Under Equity
Compensation Plans
(Excluding Securities
Reflected In Column (a))
(2)
Plan Category
(a) (1)
Securities To Be Issued
Upon Exercise Of
Outstanding Options,
Warrants And Rights
Equity Compensation Plans Approved by Security Holders

Equity Compensation Plans Not Approved by Security Holders
9,070,059
68.86
8,840,649
Total
9,070,059
68.86
8,840,649
(1) Includes, in addition to outstanding stock options, 159,498 restricted stock units, 102,376 deferred shares and 2,375,646 strategic performance shares, which are reported at the maximum
200% payout rate. Also includes 296,903 shares of common stock underlying stock option awards granted under the HealthSpring, Inc. Amended and Restated 2006 Equity Incentive Plan
which was approved by HealthSprings shareholders before Cignas acquisition of HealthSpring in January 2012.
(2) The weighted-average exercise price is based only on outstanding stock options. The outstanding stock options assumed due to Cignas acquisition of HealthSpring, Inc. have a weighted-average
exercise price of $17.86. Excluding these assumed options results in a weighted-average exercise price of $71.33.
(3) Includes 271,407 shares of common stock available as of the close of business December 31, 2015 for future issuance under the Cigna Directors Equity Plan and 8,569,242 shares of common
stock available as of the close of business on December 31, 2015 for future issuance under the Cigna Long-Term Incentive Plan.
The information under the captions Ownership of Cigna Common Stock Stock Held by Directors, Nominees and Executive Officers and
Ownership of Cigna Common Stock Stock Held by Certain Beneficial Owners in Cignas definitive proxy statement related to the 2016
annual meeting of shareholders is incorporated by reference.
ITEM 13. Certain Relationships and Related Transactions

The information under the captions Corporate Governance Matters Director Independence and Certain Transactions in Cignas
ITEM 14. Principal Accounting Fees and Services

The information under the captions Audit Matters Policy for the Pre-Approval of Audit and Non-Audit Services and Fees to Independent
Registered Public Accounting Firm in Cignas definitive proxy statement related to the 2016 annual meeting of shareholders is incorporated by
reference.
PART IV
ITEM 15. Exhibits and Financial Statement Schedules
(a) (1) The following Financial Statements appear on pages 58
through 114:
Consolidated Statements of Changes in Total Equity for

the years ended December 31, 2015, 2014 and 2013.
Report of Independent Registered Public Accounting Firm.
Consolidated Statements of Cash Flows for the years ended

December 31, 2015, 2014 and 2013.
Consolidated Statements of Income for the years ended

December 31, 2015, 2014 and 2013.
Consolidated Statements of Comprehensive Income for the
years ended December 31, 2015, 2014 and 2013.
Notes to the Consolidated Financial Statements.

(2) The financial statement schedules are listed in the Index to
Financial Statement Schedules on page FS-1.
Consolidated Balance Sheets as of December 31, 2015 and

2014.
PART IV
ITEM 15. Signatures
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
CIGNA CORPORATION
Date:
By:
February 25, 2016

/s/ THOMAS A. MCCARTHY
Thomas A. McCarthy
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated as of February 25, 2016.
Signature
Title
/s/ DAVID M. CORDANI
Chief Executive Officer and Director (Principal Executive Officer)
David M. Cordani
/s/ THOMAS A. MCCARTHY
Executive Vice President and Chief Financial Officer (Principal Financial Officer)
Thomas A. McCarthy
/s/ MARY T. HOELTZEL
Vice President and Chief Accounting Officer (Principal Accounting Officer)
Mary T. Hoeltzel
/s/ ERIC J. FOSS
Director
Eric J. Foss
/s/ MICHELLE D. GASS
Director
Michelle D. Gass
/s/ ISAIAH HARRIS, JR.
Chairman of the Board
Isaiah Harris, Jr.

/s/ JANE E. HENNEY, M.D.
Director
Jane E. Henney, M.D.

/s/ ROMAN MARTINEZ IV
Director
Roman Martinez IV
/s/ JOHN M. PARTRIDGE
Director
John M. Partridge
/s/ JAMES E. ROGERS
Director
James E. Rogers
/s/ ERIC C. WISEMAN
Director
Eric C. Wiseman
/s/ DONNA F. ZARCONE
Director
Donna F. Zarcone
/s/ WILLIAM D. ZOLLARS
Director
William D. Zollars
INDEX TO FINANCIAL STATEMENT SCHEDULES

Cigna Corporation and Subsidiaries
INDEX TO FINANCIAL STATEMENT

SCHEDULES
PAGE
Report of Independent Registered Public Accounting Firm on Financial Statement Schedules ............................................FS-2
Schedules
I Summary of Investments Other Than Investments in Related Parties as of December 31, 2015 ................................FS-3
II Condensed Financial Information of Cigna Corporation (Registrant)............................................................................FS-4
III Supplementary Insurance Information ...........................................................................................................................FS-9
IV Reinsurance....................................................................................................................................................................FS-11
V Valuation and Qualifying Accounts and Reserves ..........................................................................................................FS-12
Schedules other than those listed above are omitted because they are not required or are not applicable, or the required information is shown in
the financial statements or notes thereto.
CIGNA CORPORATION - 2015 Form 10-K FS-1
PART IV
ITEM 15. Report of Independent Registered Public Accounting Firm on Financial Statement Schedules
Report of Independent Registered Public Accounting Firm

on Financial Statement Schedules
To the Board of Directors and Shareholders of Cigna Corporation
Our audits of the consolidated financial statements and of the effectiveness of internal control over financial reporting referred to in our report
dated February 25, 2016 (which report and consolidated financial statements are included under Item 8 in this Annual Report on Form 10-K)
also included an audit of the financial statement schedules listed in Item 15(a)(2) of this Form 10-K. In our opinion, these financial statement
schedules present fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial
statements.

February 25, 2016
FS-2 CIGNA CORPORATION - 2015 Form 10-K
PART IV

Schedule I Summary of Investments Other Than Investments in Related Parties
December 31, 2015
Fair
Value
Type of Investment
Cost
(in millions)
Fixed maturities:
Bonds:
United States government and government agencies and authorities
States, municipalities and political subdivisions
Foreign governments
Public utilities
All other corporate bonds
Asset backed securities:
Mortgage-backed
Other asset-backed
Redeemable preferred stocks

Equity securities:
Common stocks:
Industrial, miscellaneous and all other
Non-redeemable preferred stocks
Commercial mortgage loans on real estate
Policy loans
TOTAL INVESTMENTS
528
1,496
1,870
1,648
12,364
779
1,641
2,014
1,743
12,695
Amount at
which shown in
the Consolidated
Balance Sheet
48
492
10
49
524
10
49
524
10
18,456
19,455
19,455
91
99
97
93
97
93
190
190
190
1,864
1,419
1,404
381
$
779
1,641
2,014
1,743
12,695
23,714
1,864
1,419
1,404
381
$
24,713
PART IV

Schedule II Condensed Financial Information of Cigna Corporation (Registrant)
Statements of Income
2015
(in millions)
2014
2013
Operating expenses:
Interest
Intercompany interest
246
258
264
Loss on early extinguishment of debt
100
Other
147
82
69
495
345
335
Loss before income taxes
(495)
(345)
(335)
Income tax benefit
(135)
(89)
(109)
TOTAL OPERATING EXPENSES
Loss of parent company
(360)
(256)
(226)
Equity in income of subsidiaries
2,454
2,358
1,702
2,094
2,102
1,476
(202)
143
(410)
15
11
(212)
(144)
13
85
(426)
539
Shareholders other comprehensive income (loss):

Net unrealized appreciation (depreciation) on securities
Net unrealized appreciation on derivatives
Net translation of foreign currencies
Postretirement benefits liability adjustment
Shareholders other comprehensive income (loss)
SHAREHOLDERS COMPREHENSIVE INCOME
See Notes to Financial Statements on the following pages.
(314)
$
1,780
(416)
$
1,686
151
$
1,627
PART IV

Balance Sheets
As of December 31,
2015
(in millions)
2014
ASSETS:
Short term investments

Investments in subsidiaries
16
51
54
18,799
17,645
Intercompany
182
74
Other assets
497
526
TOTAL ASSETS
19,548
18,296
1,086
1,138
LIABILITIES:
Intercompany
Short-term debt
100
100
Long-term debt
4,910
4,858
Other liabilities
1,417
1,426
7,513
7,522
TOTAL LIABILITIES
SHAREHOLDERS EQUITY:
Common stock (shares issued, 296; authorized, 600)
Additional paid-in capital
74
74
2,859
2,769
Accumulated other comprehensive loss
(1,250)
(936)
Retained earnings
12,121
10,289
Less treasury stock, at cost
(1,769)
(1,422)
12,035
10,774
TOTAL SHAREHOLDERS EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
19,548
18,296
PART IV

Statements of Cash Flows
(in millions)

2015
2014
2013
2,094
1,476
Cash Flows from Operating Activities:

Shareholders Net Income
2,102
Adjustments to reconcile shareholders net income to net cash provided by operating

activities:
Equity in income of subsidiaries
(2,454)
(2,358)
(1,702)
Dividends received from subsidiaries
880
1,648
506
Other liabilities
112
(73)
(245)
Loss on early extinguishment of debt
100
Other, net
Net cash provided by operating activities
Cash Flows from Investing Activities:
33
765
173
1,492
63
98
Short term investment purchased
(54)
Other, net
Net cash provided by / (used in) investing activities
(14)
(68)
11
11
(161)
61
751
Cash Flows from Financing Activities:

Net change in amounts due to / from affiliates
Net change in short-term debt
Net proceeds on issuance of long-term debt
Repayment of long-term debt
Issuance of common stock
Common dividends paid
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
(100)
894
(938)
154
110
150
(10)
(11)
(11)
(671)
(732)
(1,612)
(1,452)
(1,003)
(213)
(35)
51
(115)
51
16
51
115
PART IV

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 Form 10-K.
Note 1 For purposes of these condensed financial statements, Cigna
Corporations (the Company) wholly-owned and majority-owned
subsidiaries are recorded using the equity basis of accounting.
In fourth quarter 2015, the Company implemented the Financial

Accounting Standards Boards amended guidance to simplify the
presentation of debt issuance costs (Accounting Standards Update
(ASU) 2015-03) by reclassifying debt issuance costs from other
assets to long-term debt. Amounts reported as of December 31, 2014
have been retrospectively adjusted. The effect was not material to
either caption.
Note 2 Short-term and long-term debt consisted of the following at December 31:
December 31, 2015
(In millions)
December 31, 2014(1)
Short-term:
Commercial Paper
100
100
TOTAL SHORT-TERM DEBT
100
100
598
Long-term:
Uncollateralized debt:
249
249
131
131
250
254
253
(2)
303
302
304
301
$750 million, 4% Notes due 2022
743
741
100
100
17
17
892
$300 million, 7.875% Debentures due 2027
299
298
82
82
498
498
295
295
743
743

(2)
$83 million, 8.3% Step Down Notes due 2033
TOTAL LONG-TERM DEBT
4,910
4,858
(1) As explained in Note 1, in the fourth quarter of 2015, the Company retrospectively adopted ASU 2015-03 that requires debt issuance costs to be netted against the carrying value of the debt.
The impact on 2014 balances was not material.
(2) In 2014, the Company entered into interest rate swap contracts hedging a portion of these fixed-rate debt instruments.
On March 11, 2015, the Company issued $900 million of 10-Year

Notes due April 15, 2025 at a stated interest rate of 3.25%
($892 million, net of discount and issuance costs, with an effective
annual interest rate of 3.36%). Interest is payable on April 15 and
October 15 of each year beginning October 15, 2015. The proceeds

of this debt were used to repay debt maturing in 2016 and in 2019 as
described below.
PART IV
The Company may redeem the newly issued Notes, at any time, in
whole or in part, at a redemption price equal to the greater of:
The Company was in compliance with its debt covenants as of

December 31, 2015.
100% of the principal amount of the Notes to be redeemed; or
Maturities of long-term debt are as follows (in millions): none in

2016, $250 in 2017, $131 in 2018, none in 2019, $550 in 2020 and
the remainder in years after 2020. Interest expense on long-term and
short-term debt was $246 million in 2015, $252 million in 2014, and
$259 million in 2013. The 2015 expense excludes losses on the early
extinguishment of debt.
the present value of the remaining principal and interest payments

on the Notes being redeemed discounted at the applicable Treasury
rate plus 17.5 basis points.
The following debt transactions occurred in April 2015:
2015.
2015.
The company has a five-year revolving credit and letter of credit
agreement for $1.5 billion that permits up to $500 million to be used
for letters of credit. This agreement extends through December 2019
and is diversified among 16 banks with three banks each having 12%
of the commitment and the remainder spread among 13 banks. The
credit agreement includes options to increase the commitment
amount to $2 billion and to extend the term past December 2019,
subject to consent by the administrative agent and the committing
banks. The credit agreement is available for general corporate
purposes including for the issuance of letters of credit. The credit
agreement contains customary covenants and restrictions, including a
financial covenant that the Company may not permit its leverage ratio
to be greater than 0.50. The leverage ratio is total consolidated debt to
total consolidated capitalization (each as defined in the credit
agreement) and excludes net unrealized appreciation in fixed
maturities and the portion of the post-retirement benefits liability
adjustment attributable to pension that is included in accumulated
other comprehensive loss on the Companys consolidated balance
sheet.
The Company had $7.9 billion of borrowing capacity within the
maximum debt coverage covenant in the letter of credit agreement, in
addition to the $5 billion of debt outstanding as of December 31,
2015. This additional borrowing capacity includes the $1.5 billion
available under the credit agreement. Letters of credit outstanding as
of December 31, 2015 totaled $19 million.
Note 3 Intercompany liabilities consist primarily of loans payable to

Cigna Holdings, Inc. of $875 million as of December 31, 2015 and
$877 million as of December 31, 2014. Interest was accrued at an
average monthly rate of 0.60% for 2015 and 0.52% for 2014.
Note 4 As of December 31, 2015, the Company had guarantees and
similar agreements in place to secure payment obligations or solvency
requirements of certain wholly-owned subsidiaries as follows:
Various indirect, wholly-owned subsidiaries have obtained surety
bonds in the normal course of business. If there is a claim on a surety
bond and the subsidiary is unable to pay, the Company guarantees
payment to the company issuing the surety bond. The aggregate
amount of such surety bonds as of December 31, 2015 was
$77 million.
The Company is obligated under a $6 million letter of credit
required by the insurer of its high-deductible self-insurance
programs to indemnify the insurer for claim liabilities that fall
within deductible amounts for policy years dating back to 1994.
The Company also provides solvency guarantees aggregating
$34 million under state and federal regulations in support of its
indirect wholly-owned medical HMOs in several states.
The Company has arranged a $13 million letter of credit in support
of Cigna Europe Insurance Company, an indirect wholly-owned
subsidiary. The Company has agreed to indemnify the banks
providing the letters of credit in the event of any draw. Cigna
Europe Insurance Company is the holder of the letters of credit.
The Company has agreed to indemnify payment of losses included
in Cigna Europe Insurance Companys reserves on the assumed
reinsurance business transferred from ACE. As of December 31,
2015, the reserve was $16 million.
The Company guarantees the payment of up to $10 million for
certain expenses of an indirect wholly-owned subsidiary operating as
a Professional Employer Organization in the State of Kansas.
The Company operates a global notional currency pool in support
of certain foreign subsidiaries and provides a guarantee of borrowing
by subsidiaries from the notional pool. The aggregate amount of
such borrowing at December 31, 2015 was $20 million.
In 2015, no payments have been made on these guarantees and none
are pending. The Company provided other guarantees to subsidiaries
that, in the aggregate, do not represent a material risk to the
Companys results of operations, liquidity or financial condition.
PART IV

Schedule III Supplementary Insurance Information
(In millions)
Segment
Deferred
policy
acquisition
costs
Future policy
benefits and
contractholder
deposit
funds
Medical claims
payable and
unpaid
claims
Unearned
premiums
Year Ended December 31, 2015:

Global Health Care
Other Operations
Corporate
TOTAL
Global Health Care
Other Operations
Corporate
TOTAL
Global Health Care
Other Operations
Corporate
TOTAL
11
169
2,355
145
1,593
3,006
353
453
1,714
4,012
13
54
13,033
215
18
(6)
1,659
17,922
6,929
629
17
1,437
1
47
182
2,785
1,662
13,443
2,180
339
3,844
222
(5)
155
431
15
20
1,502
18,072
6,580
621
20
1,323
1
51
197
2,525
1,615
13,439
2,050
305
3,739
260
(6)
116
419
23
22
1,395
17,776
6,348
580
PART IV
Premiums
(1)
Net
investment
income (2)
Benefit
expenses (1)(3)
Amortization
of deferred
policy
acquisition
expenses
Other
operating
expenses (4)

Global Health Care
22,696
340
18,354
53
8,621
3,000
103
1,659
227
963
3,843
337
2,934
861
103
369
343
26
Other Operations
Corporate
TOTAL
Global Health Care
Other Operations
Corporate
TOTAL
Global Health Care
Other Operations
Corporate
TOTAL
502
29,642
1,153
23,290
286
10,973
20,709
2,844
3,549
112
337
109
335
384
1
16,694
1,544
2,716
380
73
209
1
6
7,843
981
796
27
340
27,214
1,166
21,334
289
9,987
19,626
2,496
3,348
105
325
100
321
408
10
15,867
1,310
2,621
1,067
69
178
1
7
7,021
924
765
46
328
25,575
1,164
20,865
255
9,084
(1) Amounts presented are shown net of the effects of reinsurance. See Note 7 to the Consolidated Financial Statements included in this Form 10-K.
(2) The allocation of net investment income is based upon the investment year method, the identification of certain portfolios with specific segments, or a combination of both.
(3) Benefit expenses include Global Health Care medical costs and other benefit expenses.
(4) 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.
PART IV

Schedule IV Reinsurance
(In millions)
Gross amount
Ceded to other
companies
Assumed from
other companies
Net amount
Percentage
of amount
assumed to net
1,047,982
72,208
3,273
979,047
0.3%
2,657
4.0%
26,985
1.1%
29,642
1.3%
824,555
0.4%

Life insurance in force
Premiums:
Life insurance and annuities
Accident and health insurance

TOTAL
TOTAL
TOTAL
29,812
335
235
$
879,508
570
106
294
$
58,133
400
3,180
2,302
24,913
320
283
32
570
2,014
25,200
1.6%
2.3%
27,215
603
602
27,214
2.2%
725,509
0.5%

Premiums:
26,926

Premiums:
2,886
781,053
59,003
3,459
2,140
23,401
279
264
28
549
1,889
23,686
1.5%
2.3%
25,541
543
577
25,575
2.3%
PART IV

Schedule V Valuation and Qualifying Accounts and Reserves
Balance at
beginning of
year
Charged
(Credited)
to costs and
expenses
Charged
(Credited)
to other
accounts
Investment asset valuation reserves: Commercial mortgage loans
12
(4)
Allowance for doubtful accounts: Premiums, accounts and notes receivable
101
(10)
(15)
(1)
75
Deferred tax asset valuation allowance
49
14
71
2014:
2013:
(1)
$
$
$
$
8
43
49
4
$
$
$
$
4
53
21
$
$
$
$
5
(21)
$
$
$
$
$
$
$
$
12
101
49
4
(3)

$
$
$
51
42
4
$
$
$
$
$
$
(2)
$
$
$
(6)
$
$
$
8
43
49
4
(In millions)
Description
Other
deductions(1)
Balance at
end of year
2015:
(1) Amounts for commercial mortgage loans primarily reflect charge-offs upon sales and repayments, as well as transfers to foreclosed real estate.
15
PART IV
Index to Exhibits
Number
2.1
3.1
Description
Agreement and Plan of Merger dated as of July 23, 2015 by and
among Cigna Corporation, Anthem Inc., and Anthem Merger Sub
Corp.
Restated Certificate of Incorporation of the registrant as last
amended October 28, 2011
Method of Filing
Filed as Exhibit 2.1 to the registrants 8-K filed on July 27, 2015
and incorporated herein by reference.
Filed as Exhibit 3.1 to the registrants Form 10-Q for the quarterly
period ended September 30, 2011 and incorporated herein by
reference.
3.2
By-Laws of the registrant as last amended and restated December 6,
Filed as Exhibit 3.2 to the registrants Form 10-K for the year ended
2012
December 31, 2012 and incorporated herein by reference.
4.1
(a) Indenture dated August 16, 2006 between Cigna Corporation and
Filed as Exhibit 4.1(a) to the registrants Form 10-K for the year
U.S. Bank National Association
ended December 31, 2012 and incorporated herein by reference.
(b) Supplemental Indenture No. 1 dated November 10, 2006 between
Filed as Exhibit 4.1(b) to the registrants Form 10-K for the year
Cigna Corporation and U.S. Bank National Association
(c) Supplemental Indenture No. 2 dated March 15, 2007 between Cigna Filed as Exhibit 4.1(c) to the registrants Form 10-Q for the
Corporation and U.S. Bank National Association
quarterly period ended March 31, 2011 and incorporated herein by
reference.
(d) Supplemental Indenture No. 3 dated March 7, 2008 between Cigna
Filed as Exhibit 4.1 to the registrants Form 8-K on March 10, 2008
(f ) Supplemental Indenture No. 5 dated May 17, 2010 between Cigna
Filed as Exhibit 99.2 to the registrants Form 8-K on May 28, 2010
(g) Supplemental Indenture No. 6 dated December 8, 2010 between
Filed as Exhibit 99.2 to the registrants Form 8-K on December 9,
Cigna Corporation and U.S. Bank National Association
2010 and incorporated herein by reference.
(h) Supplemental Indenture No. 7 dated March 7, 2011 between Cigna
(i) Supplemental Indenture No. 8 dated November 10, 2011 between
Filed as Exhibit 4.1 to the registrants Form 8-K on November 14,
Cigna Corporation and U.S. Bank National Associated
(j) Supplemental Indenture No. 9 dated as of March 20, 2015, between
Cigna Corporation and U.S. Bank National Association, as trustee.
4.2
Indenture dated January 1, 1994 between Cigna Corporation and
Marine Midland Bank
4.3
Indenture dated June 30, 1988 between Cigna Corporation and
Bankers Trust
Exhibits 10.1 through 10.31 are identified as compensatory plans, management contracts or arrangements pursuant to Item 15 of Form 10-K.
10.1
Deferred Compensation Plan for Directors of Cigna Corporation, as
Filed as Exhibit 10.1 to the registrants Form 10-K for the year
amended and restated January 1, 1997
10.2
Deferred Compensation Plan of 2005 for Directors of Cigna
Corporation, Amended and Restated effective April 28, 2010
10.3
Cigna Corporation Non-Employee Director Compensation Program
amended and restated effective February 26, 2014
period ended March 31, 2014 and incorporated herein by reference.
10.4
Cigna Restricted Share Equivalent Plan for Non-Employee Directors
as amended and restated effective January 1, 2008
10.5
Cigna Corporation Director Equity Plan
10.6
Cigna Corporation Stock Plan, as amended and restated through July Filed as Exhibit 10.7 to the registrants Form 10-K for the year
2000
10.7
(a) Cigna Stock Unit Plan, as amended and restated effective July 22,
2008
period ended September 30, 2008 and incorporated herein by
reference.
(b) Amendment No. 1 to the Cigna Stock Unit Plan, as amended and
restated effective July 22, 2008
period ended June 30, 2010 and incorporated herein by reference.
10.8
Cigna Executive Severance Benefits Plan as amended and restated
effective April 27, 2010
10.9
Description of Severance Benefits for Executives in Non-Change of
Control Circumstances
10.10
Cigna Executive Incentive Plan amended and restated as of
January 1, 2012
10.11 (a) Cigna Long-Term Incentive Plan as amended and restated effective as Filed as Exhibit 10.2 to the registrants Form 10-Q for the quarterly
of April 28, 2010
(b) Amendment No. 1 to the Cigna Long-Term Incentive Plan as
amended and restated effective as of April 28, 2010
(c) Amendment No. 2 to the Cigna Long-Term Incentive Plan as
amended and restated effective as of April 28, 2010
CIGNA CORPORATION - 2015 Form 10-K E-1
PART IV
Number
10.12
10.13
10.14
(a)
(b)
(c)
10.15
(a)
(b)
Description
Cigna Deferred Compensation Plan, as amended and restated
October 24, 2001
Cigna Deferred Compensation Plan of 2005 effective as of
January 1, 2005
Cigna Supplemental Pension Plan as amended and restated effective
August 1, 1998
Amendment No. 1 to the Cigna Supplemental Pension Plan,
amended and restated effective as of September 1, 1999
Amendment No. 2 dated December 6, 2000 to the Cigna
Supplemental Pension
Cigna Supplemental Pension Plan of 2005 effective as of January 1,
2005
Amendment No. 1 to the Cigna Supplemental Pension Plan of 2005
10.16
Cigna Supplemental 401(k) Plan effective January 1, 2010
10.17
Description of Cigna Corporation Financial Services Program
10.18
10.23
Form of Cigna Long-Term Incentive Plan: Strategic Performance

Share Grant Agreement
Form of Cigna Long-Term Incentive Plan: Nonqualified Stock
Option Grant Agreement
Form of Cigna Long-Term Incentive Plan: Restricted Stock Grant
Agreement
Form of Cigna Long-Term Incentive Plan: Restricted Stock Unit
Grant Agreement
Schedule regarding Amended Deferred Stock Unit Agreements
effective December 31, 2008 with John M. Murabito and Form of
Amended Deferred Stock Unit Agreement
Nicole Jones Offer of Employment dated April 27, 2011
10.24
Matthew Manders Promotion Letter dated June 2, 2014
10.25
Thomas A. McCarthys Offer Letter dated May 9, 2013
10.19
10.20
10.21
10.22
10.26
(a) Retention Agreement with Herbert Fritch dated October 24, 2011
(b) Agreement dated December 7, 2011 with Herbert Fritch
(c) Retention Agreement with Herbert Fritch dated September 15, 2014.
10.27
10.28
10.29
HealthSpring, Inc. Amended and Restated 2006 Equity Incentive

Plan (the HealthSpring Equity Incentive Plan)
HealthSpring Equity Incentive Plan: Form of Restricted Share Award
10.30
HealthSpring Equity Incentive Plan: Form of Non-Qualified Stock

Option Agreement
Employment Agreement for Jason D. Sadler dated May 7, 2010
10.31
Promotion letter for Jason Sadler dated June 2, 2014
10.32
Master Transaction Agreement, dated February 4, 2013 among

Connecticut General Life Insurance Company, Berkshire Hathaway
Life Insurance Company of Nebraska and, solely for purposes of
Sections 3.10, 6.1, 6.3, 6.4, 6.6, 6.9 and Articles II, V, VII, and
VIII, thereof, National Indemnity Company (including the Forms of
Retrocession Agreement, the Collateral Trust Agreement, the Security
and Control Agreement, the Surety Policy and the ALC Model
Purchase Option Agreement as exhibits)
Computation of Ratios of Earnings to Fixed Charges
Subsidiaries of the Registrant
Consent of Independent Registered Public Accounting Firm
Certification of Chief Executive Officer of Cigna Corporation
pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities
Exchange Act of 1934
Certification of Chief Financial Officer of Cigna Corporation
pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities
Exchange Act of 1934
12
21
23
31.1
31.2
E-2 CIGNA CORPORATION - 2015 Form 10-K
Method of Filing
Filed as Exhibit 10.15(a) to the registrants Form 10-K for the year
Filed as Exhibit 10.15(b) to the registrants Form 10-K for the year
Filed as Exhibit 10.16(c) to the registrants Form 10-K for the year
Filed as Exhibit 10.2 to the registrants Form 10-Q for the period
ended March 31, 2015 and incorporated herein by reference.
Filed as Exhibit 10.1 to the registrants Form 8-K filed on June 4,
Filed as Exhibit 10.1 to the registrants Form 8-K filed on May 13,
Filed as Exhibit 10.1 to the registrants Form 8-K filed on
September 19, 2014 and incorporated herein by reference.
Filed as Exhibit 10.1(a) to the registrants Form 10-Q for the period
Filed as Exhibit 10.1(b) to the registrants Form 10-Q for the period
Filed
Filed
Filed
Filed
herewith.
herewith.
herewith.
herewith.
Filed herewith.
PART IV
Number
32.1
32.2
101
Description
Certification of Chief Executive Officer of Cigna Corporation
pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C.
Section 1350
Certification of Chief Financial Officer of Cigna Corporation
pursuant to Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C.
Section 1350
The following materials from Cigna Corporations Annual Report on
Form 10-K for the year ended December 31, 2015, formatted in
XBRL (Extensible Business Reporting Language): (i) the
Consolidated Balance Sheets; (ii) the Consolidated Statements of
Income; (iii) the Consolidated Statements of Comprehensive Income;
(iv) the Consolidated Statements of Cash Flows; (v) the Consolidated
Statements of Changes in Total Equity; (vi) the Notes to
Consolidated Financial Statements and (vii) Financial Statement
Schedules I, II, III, IV and V.
Method of Filing
Furnished herewith.
Furnished herewith.
Filed herewith.
Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Company agrees to furnish supplementally to the Securities and Exchange Commission a copy of any omitted
schedule upon request.
The registrant will furnish to the Commission upon request of any other instruments defining the rights of holders of long-term debt.
Shareholders may obtain copies of exhibits by writing to Cigna Corporation, Shareholder Services Department, 1601 Chestnut Street,
Philadelphia, PA 19192.
PART IV
EXHIBIT 12 Cigna Corporation Computation of Ratio of Earnings to Fixed Charges

(Dollars in millions)
Year Ended December 31,
2015
2014
2013
2012
2011
$ 3,327
$ 3,304
$ 2,176
$ 2,477
$ 1,876
(18)
(17)
(10)
(15)
Adjustments:
(Income) loss from equity investee
(Income) loss attributable to noncontrolling interests
Income before income taxes, as adjusted
17
(3)
(1)
(1)
$ 3,347
$ 3,291
$ 2,156
$ 2,466
$ 1,860
Fixed charges included in income:

Interest expense
Interest portion of rental expense
Interest credited to contractholders
$
Income available for fixed charges
RATIO OF EARNINGS TO FIXED CHARGES:
252
265
270
268
202
54
50
38
43
38
307
318
313
315
245
$ 3,654
$ 3,609
$ 2,469
$ 2,781
$ 2,105
11.9
11.3
7.9
8.8
8.6
PART IV
EXHIBIT 21 Subsidiaries of the Registrant

Listed below are subsidiaries of Cigna Corporation as of December 31, 2015 with their jurisdictions of organization. Those subsidiaries not listed
would not, in the aggregate, constitute a significant subsidiary of Cigna Corporation, as that term is defined in Rule 1-02(w) of Regulation S-X.
Entity Name
Jurisdiction
Allegiance Life & Health Insurance Company, Inc.

Allegiance Re, Inc.
American Retirement Life Insurance Company
Benefits Management Corp.
Bravo Health Mid-Atlantic, Inc.
Bravo Health of Pennsylvania, Inc.
Central Reserve Life Insurance Company
Ceres Sales of Ohio, LLC
Cigna & CMB Life Insurance Company Limited
Cigna Alder Holdings, LLC
Cigna Apac Holdings Limited
Cigna Arbor Life Insurance Company
Cigna Beechwood Holdings, SdC/MTS
Cigna Behavioral Health of California, Inc.
Cigna Behavioral Health of Texas, Inc.
Cigna Behavioral Health, Inc.
Cigna Bellevue Alpha, LLC
Cigna Benefits Financing, Inc.
Cigna Brokerage & Marketing (Thailand) Limited
Cigna Chestnut Holdings, Ltd.
Cigna Corporate Services, LLC
Cigna Data Services (Shanghai) Company Limited
Cigna Dental Health of California, Inc.
Cigna Dental Health of Colorado, Inc.
Cigna Dental Health of Delaware, Inc.
Cigna Dental Health of Florida, Inc.
Cigna Dental Health of Illinois, Inc.
Cigna Dental Health of Kansas, Inc.
Cigna Dental Health of Kentucky, Inc.
Cigna Dental Health of Maryland, Inc.
Cigna Dental Health of Missouri, Inc.
Cigna Dental Health of New Jersey, Inc.
Cigna Dental Health of North Carolina, Inc.
Cigna Dental Health of Ohio, Inc.
Cigna Dental Health of Pennsylvania, Inc.
Cigna Dental Health of Texas, Inc.
Cigna Dental Health of Virginia, Inc.
Cigna Dental Health Plan of Arizona, Inc.
Cigna Dental Health, Inc.
Cigna Elmwood Holdings, SPRL
Cigna Europe Insurance Company S.A.-N.V.
Cigna European Services (UK) Limited
Cigna Finans Emeklilik ve Hayat A.S.
Cigna Global Holdings, Inc.
Cigna Global Insurance Company Limited
Cigna Global Reinsurance Company, Ltd.
Cigna Health and Life Insurance Company
Cigna Health Corporation
Cigna Health Management, Inc.
Cigna Health Solutions India Pvt. Ltd.
Cigna Healthcare Holdings, Inc.
Cigna Healthcare Mid-Atlantic, Inc.
Cigna Healthcare of Arizona, Inc.
Cigna Healthcare of California, Inc.
Cigna Healthcare of Colorado, Inc.
Cigna Healthcare of Connecticut, Inc.
Montana
Montana
Ohio
Montana
Maryland
Pennsylvania
Ohio
Ohio
China
Delaware
Bermuda
Connecticut
Belgium
California
Texas
Minnesota
Delaware
Delaware
Thailand
United Kingdom
Delaware
China
California
Colorado
Delaware
Florida
Illinois
Kansas
Kentucky
Maryland
Missouri
New Jersey
North Carolina
Ohio
Pennsylvania
Texas
Virginia
Arizona
Florida
Belgium
Belgium
United Kingdom
Turkey
Delaware
Guernsey, C.I
Bermuda
Connecticut
Delaware
Delaware
India
Colorado
Maryland
Arizona
California
Colorado
Connecticut
PART IV
Entity Name
Jurisdiction
Cigna Healthcare of Florida, Inc.

Cigna Healthcare of Georgia, Inc.
Cigna Healthcare of Illinois, Inc.
Cigna Healthcare of Indiana, Inc.
Cigna Healthcare of Maine, Inc.
Cigna Healthcare of Massachusetts, Inc.
Cigna Healthcare of New Hampshire, Inc.
Cigna Healthcare of New Jersey, Inc.
Cigna Healthcare of North Carolina, Inc.
Cigna Healthcare of Pennsylvania, Inc.
Cigna Healthcare of South Carolina, Inc.
Cigna Healthcare of St. Louis, Inc.
Cigna Healthcare of Tennessee, Inc.
Cigna Healthcare of Texas, Inc.
Cigna Healthcare of Utah, Inc.
Cigna HLA Technology Services Company Limited
Cigna Holdings Overseas, Inc.
Cigna Holdings, Inc.
Cigna Hong Kong Holdings Company Limited
Cigna Insurance Public Company Limited
Cigna Insurance Services (Europe) Limited
Cigna Intellectual Property, Inc.
Cigna International Corporation
Cigna International Health Services Kenya Limited
Cigna International Health Services SDN BHD
Cigna International Health Services BVBA
Cigna International Health Services, LLC
Cigna International Services Australia Pty. Ltd.
Cigna Investment Group, Inc.
Cigna Investments, Inc.
Cigna Korea Chusik Hoesa
Cigna Laurel Holdings, Ltd.
Cigna Legal Protection UK Ltd.
Cigna Life Insurance Company of Canada
Cigna Life Insurance Company of Europe S.A.- N.V.
Cigna Life Insurance Company of New York
Cigna Life Insurance New Zealand Limited
Cigna Linden Holdings, Inc.
Cigna Myrtle Holdings, Ltd.
Cigna Nederland Alpha Cooperatief U.A.
Cigna Nederland Beta N.V.
Cigna Nederland Gamma N.V.
Cigna Oak Holdings, Ltd.
Cigna Palmetto Holdings, Ltd.
Cigna Poplar Holdings, Inc.
Cigna Saico Benefits Services WLL
Cigna Sequoia Holdings, SPRL
Cigna Taiwan Life Assurance Company Limited
CignaTTK Health Insurance Company Limited
Cigna Walnut Holdings, Ltd.
Cigna Willow Holdings, Ltd.
Cigna Worldwide General Insurance Company Limited
Cigna Worldwide Insurance Company
Cigna Worldwide Life Insurance Company Limited
Connecticut General Corporation
Connecticut General Life Insurance Company
FirstAssist Administration Limited
Great-West Healthcare of Illinois, Inc.
Health-Lynx
Healthsource, Inc.
HealthSpring, Inc.
Florida
Georgia
Illinois
Indiana
Maine
Massachusetts
New Hampshire
New Jersey
North Carolina
Pennsylvania
South Carolina
Missouri
Tennessee
Texas
Utah
Hong Kong
Delaware
Delaware
Hong Kong
Thailand
United Kingdom
Delaware
Delaware
Kenya
Malaysia
Belgium
Florida
Australia
Delaware
Delaware
Korea
Bermuda
United Kingdom
Canada
Belgium
New York
New Zealand
Delaware
Malta
Netherlands
Netherlands
Netherlands
United Kingdom
Bermuda
Delaware
Bahrain
Belgium
Taiwan
India
United Kingdom
United Kingdom
Hong Kong
Delaware
Hong Kong
Connecticut
Connecticut
United Kingdom
Illinois
New Jersey
New Hampshire
Delaware
PART IV
Entity Name
HealthSpring of Alabama, Inc
HealthSpring of Florida, Inc.
HealthSpring Life & Health Insurance Company, Inc.
HealthSpring of Tennessee, Inc.
KDM Thailand Limited
Life Insurance Company of North America
LINA Financial Service
LINA Life Insurance Company of Korea
Loyal American Life Insurance Company
MCC Independent Practice Association of New York, Inc.
NewQuest, LLC
NewQuest Management Northeast, LLC
Olympic Health Management Services, Inc.
Provident American Life and Health Insurance Company
PT Asuransi Cigna
Qualcare Alliance Networks, Inc.
Qualcare Captive Insurance Company Inc. PCC
Qualcare Management Resources Limited Liability Company
Qualcare, Inc.
RHP (Thailand) Limited
Scibal Associates, Inc.
Sterling Life Insurance Company
Tel Drug, Inc.
Tel Drug of Pennsylvania, LLC
Temple Insurance Company Limited
United Benefit Life Insurance Company
Vielife Holdings Limited
Vielife Limited
Jurisdiction
Alabama
Florida
Texas
Tennessee
Thailand
Pennsylvania
Korea
Korea
Ohio
New York
Texas
Delaware
Washington
Ohio
Indonesia
New Jersey
New Jersey
New Jersey
New Jersey
Thailand
New Jersey
Illinois
South Dakota
Pennsylvania
Bermuda
Ohio
United Kingdom
United Kingdom
PART IV
EXHIBIT 23 Consent of Independent Registered Public Accounting Firm

We hereby consent to the incorporation by reference in the
Registration Statement on Form S-8 (No. 333-179307,
No. 333-166583, No. 333-163899, No. 333-147994,
No. 333-64207, No. 333-129395, No. 333-107839, No. 333-90785,
No. 333-31903, No. 333-22391, No. 033-60053 and
February 25, 2016
No. 033-51791) of Cigna Corporation of our reports dated

February 25, 2016 relating to the financial statements, the financial
statement schedules and the effectiveness of internal control over
financial reporting, which appear in this Form 10-K.
PART IV
EXHIBIT 31.1 Certification

I, DAVID M. CORDANI, certify that:
1.
I have reviewed this Annual Report on Form 10-K of Cigna

Corporation;
2.
Based on my knowledge, this report does not contain any untrue

statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3.
4.
the preparation of financial statements for external

purposes in accordance with generally accepted accounting
principles;
Based on my knowledge, the financial statements, and other

financial information included in this report, fairly present in all
material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods
presented in this report;
The registrants other certifying officer(s) and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and
15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f ) and 15d-15(f )) for the
registrant and have:
a)
b)
designed such disclosure controls and procedures, or caused

such disclosure controls and procedures to be designed
under our supervision, to ensure that material information
relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report
is being prepared;
designed such internal control over financial reporting, or
caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and
5.
c)
evaluated the effectiveness of the registrants disclosure

controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered
by this report based on such evaluation; and
d)
disclosed in this report any change in the registrants

internal control over financial reporting that occurred
during the registrants most recent fiscal quarter (the
registrants fourth fiscal quarter in the case of an annual
report) that has materially affected, or is reasonably likely to
materially affect, the registrants internal control over
financial reporting; and
The registrants other certifying officer(s) and I have disclosed,

based on our most recent evaluation of internal control over
financial reporting, to the registrants auditors and the audit
committee of the registrants board of directors (or persons
performing the equivalent functions):
a)
all significant deficiencies and material weaknesses in the

design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the
registrants ability to record, process, summarize and report
financial information; and
b)
any fraud, whether or not material, that involves

management or other employees who have a significant role
in the registrants internal control over financial reporting.
/s/ David M. Cordani

Date:
Chief Executive Officer

February 25, 2016
PART IV
EXHIBIT 31.2 Certification

I, THOMAS A. MCCARTHY, certify that:
1.
I have reviewed this Annual Report on Form 10-K of Cigna

Corporation;
2.
Based on my knowledge, this report does not contain any untrue

statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the
circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3.
4.
Based on my knowledge, the financial statements, and other

financial information included in this report, fairly present in all
material respects the financial condition, results of operations
and cash flows of the registrant as of, and for, the periods
presented in this report;
The registrants other certifying officer(s) and I are responsible
for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f ) and 15d-15(f )) for the
registrant and have:
a)
b)
designed such disclosure controls and procedures, or caused

such disclosure controls and procedures to be designed
under our supervision, to ensure that material information
relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report
is being prepared;
designed such internal control over financial reporting, or
caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable
assurance regarding the reliability of financial reporting and
/s/ Thomas A. McCarthy
Date:
the preparation of financial statements for external

purposes in accordance with generally accepted accounting
principles;
Chief Financial Officer

February 25, 2016
5.
c)
evaluated the effectiveness of the registrants disclosure

controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure
controls and procedures, as of the end of the period covered
by this report based on such evaluation; and
d)
disclosed in this report any change in the registrants

internal control over financial reporting that occurred
during the registrants most recent fiscal quarter (the
registrants fourth fiscal quarter in the case of an annual
report) that has materially affected, or is reasonably likely to
materially affect, the registrants internal control over
financial reporting; and
The registrants other certifying officer(s) and I have disclosed,

based on our most recent evaluation of internal control over
financial reporting, to the registrants auditors and the audit
committee of the registrants board of directors (or persons
performing the equivalent functions):
a)
all significant deficiencies and material weaknesses in the

design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the
registrants ability to record, process, summarize and report
financial information; and
b)
any fraud, whether or not material, that involves

management or other employees who have a significant role
in the registrants internal control over financial reporting.
PART IV
EXHIBIT 32.1 Certification of Chief Executive Officer of Cigna Corporation pursuant

to 18 U.S.C. Section 1350
I certify that, to the best of my knowledge and belief, the Annual Report on Form 10-K of Cigna Corporation for the fiscal period ending
December 31, 2015 (the Report):
(1) complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Cigna
Corporation.
/s/ David M. Cordani
David M. Cordani
Chief Executive Officer
February 25, 2016
PART IV
EXHIBIT 32.2 Certification of Chief Financial Officer of Cigna Corporation pursuant

to 18 U.S.C. Section 1350
I certify that, to the best of my knowledge and belief, the Annual Report on Form 10-K of Cigna Corporation for the fiscal period ending
December 31, 2015 (the Report):
(1) complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Cigna
Corporation.
/s/ Thomas A. McCarthy
Thomas A. McCarthy
Chief Financial Officer
February 25, 2016

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT:

Name of each exchange on which registered

Common Stock, Par Value $0.25

New York Stock Exchange, Inc.

SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:

Indicate by check mark

Smaller Reporting Company

Item 1A. Risk Factors ............................................................................................................................... 19

Item 15. Exhibits and Financial Statement Schedules.......................................................................... 119

CAUTIONARY NOTE REGARDING FORWARDLOOKING STATEMENTS

How we will win

We present the financial results of our businesses in the following

CIGNA CORPORATION - 2015 Form 10-K 1

2015 Adjusted Income from Operations by Segment*

Global Health Care

Global Health Care

Excludes Corporate and Other Operations

We present the remainder of our segment results in Other

Proposed Merger with Anthem, Inc.

Other Key Transactions

Health Care Reform

Cigna Corporation was incorporated in Delaware in 1981. Our

Global Health Care

Products and Services

We seek to differentiate ourselves in this business by providing

Insurance brokers and consultants

Our Commercial operating segment encompasses both our U.S.

CIGNA CORPORATION - 2015 Form 10-K 3

customers cost-sharing obligation is usually greater for the

Principal Products and Services

In most states, individual and group insurance premium rates must be

an identified threshold to review by the United States Department of

Government Health Plans

many of the coordinated care aspects of our Medicare Advantage

Specialty Products and Services

Service and Quality

6 CIGNA CORPORATION - 2015 Form 10-K

In our international health care business, we have a service model

Quality Medical Care

Health Improvement through Engaging Providers

Cigna Collaborative Care.

cost-efficiency criteria. Customers in Cigna Care Network plans pay

Medical Care and Onsite Services

Specialty Care Collaboration Program we continue to develop

Cigna Medical Group is a multi-specialty medical group practice

Patient Care Collaboration Program we are developing a program

LivingWell Health Centers. Medicare Advantage customers may

Independent Practice Associations are innovative physician

Cigna Onsite Health provides employer-based onsite or nearby

Delivery System Alliances. Cigna and select health care providers

Participating Provider Network

We continue to demonstrate our commitment to quality and have a

CIGNA CORPORATION - 2015 Form 10-K 7

Markets and Distribution

Cigna Guided SolutionsSM is Cignas benefit administration and