CIGNA CORP | 2013 | FY | 3


December 31, 2013        
(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:        
Federal government and agency $ 297$ 583$ -$ 880
State and local government  -  2,144  -  2,144
Foreign government  -  1,421  23  1,444
Corporate   -  10,476  505  10,981
Federal agency mortgage-backed   -  76  -  76
Other mortgage-backed   -  76  1  77
Other asset-backed   -  282  602  884
Total fixed maturities (1)  297  15,058  1,131  16,486
Equity securities   8  74  59  141
Subtotal  305  15,132  1,190  16,627
Short-term investments  -  631  -  631
GMIB assets (2)  -  -  751  751
Other derivative assets (3)  -  3  -  3
Total financial assets at fair value, excluding separate accounts$ 305$ 15,766$ 1,941$ 18,012
Financial liabilities at fair value:        
GMIB liabilities $ -$ -$ 741$ 741
Other derivative liabilities (3)  -  16  -  16
Total financial liabilities at fair value$ -$ 16$ 741$ 757
         
(1) Fixed maturities included $458 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $60 million of appreciation for securities classified in Level 3.
        
(2) The GMIB assets represented retrocessional contracts in place from three external reinsurers that cover the exposures on these contracts. See Note 7 for additional information.
        
(3) Other derivative assets reflected interest rate and foreign currency swaps qualifying as cash flow hedges. Other derivative liabilities included $15 million of interest rate and foreign currency swaps qualifying as cash flow hedges and $1 million of interest rate and foreign currency swaps not designated as accounting hedges. See Note 12 for additional information.
        

December 31, 2012        
(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:        
Federal government and agency $ 156$ 746$ -$ 902
State and local government  -  2,437  -  2,437
Foreign government  -  1,298  24  1,322
Corporate   -  11,201  695  11,896
Federal agency mortgage-backed   -  122  -  122
Other mortgage-backed   -  88  1  89
Other asset-backed   -  340  597  937
Total fixed maturities (1)  156  16,232  1,317  17,705
Equity securities   4  73  34  111
Subtotal  160  16,305  1,351  17,816
Short-term investments  -  154  -  154
GMIB assets (2)  -  -  622  622
Other derivative assets (3)  -  41  -  41
Total financial assets at fair value, excluding separate accounts$ 160$ 16,500$ 1,973$ 18,633
Financial liabilities at fair value:        
GMIB liabilities $ -$ -$ 1,170$ 1,170
Other derivative liabilities (3)  -  31  -  31
Total financial liabilities at fair value$ -$ 31$ 1,170$ 1,201
         
(1) Fixed maturities included $875 million of net appreciation required to adjust future policy benefits for the run-off settlement annuity business including $108 million of appreciation for securities classified in Level 3.
        
         
(2) The GMIB assets represented retrocessional contracts in place from two external reinsurers that cover 55% of the exposures on these contracts. See Note 7 for additional information.
(3) Other derivative assets included $5 million of interest rate and foreign currency swaps qualifying as cash flow hedges and $36 million of interest rate swaps not designated as accounting hedges. Other derivative liabilities reflected foreign currency and interest rate swaps qualifying as cash flow hedges. See Note 12 for additional information.
        

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