<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) MAY 2, 1994
CIGNA CORPORATION
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
DELAWARE 1-8323 06-1059331
-------- ------ ----------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
</TABLE>
ONE LIBERTY PLACE, 1650 MARKET STREET, P.O. BOX 7716
PHILADELPHIA, PENNSYLVANIA 19192-1550
------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(215) 761-1000
--------------
NOT APPLICABLE
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE> 2
Item 5. Other Events.
On May 2, 1994, the registrant issued a news release, a copy of which
is filed as Exhibit 20 hereto and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) The exhibit accompanying this report is listed in the Index to
Exhibits below.
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CIGNA CORPORATION
Date: May 2, 1994 By: /s/ Gary A. Swords
---------------------------
Gary A. Swords
Vice President and
Chief Accounting Officer
Index to Exhibits
<TABLE>
<CAPTION>
Method of
Number Description Filing
- - ------ ----------- --------
<S> <C> <C>
20 CIGNA Corporation Filed herewith.
news release dated
May 2, 1994
</TABLE>
-2-
<PAGE> 1
[CIGNA NEWS RELEASE LETTERHEAD]
EXHIBIT 20
For Release: IMMEDIATE
Contact: ROBERT W. SULLIVAN, FINANCIAL RELATIONS - (215) 761-6130
MICHAEL J. MONROE, MEDIA RELATIONS - (215) 761-6133
CIGNA'S FIRST QUARTER 1994 RESULTS
PHILADELPHIA, MAY 2, 1994 -- CIGNA Corporation (NYSE:CI) today reported first
quarter 1994 consolidated net income of $114 million ($1.58 per share),
compared with $46 million ($0.64 per share) a year ago.
OPERATING INCOME*
Operating income for the first quarter of 1994 significantly improved over the
comparable period of 1993. The first quarter 1994 operating income was $100
million versus $16 million in 1993.
"Operating income for our health, pension and life businesses continued to be
strong in the quarter. Although domestic property and casualty results remain
weak, the actions taken by the new management team are expected to produce
future improvements," said Wilson H. Taylor, CIGNA's Chief Executive Officer.
* Operating income is defined as net income excluding realized investment gains
and losses.
<PAGE> 2
- 2 -
REALIZED GAINS/LOSSES
The 1994 first quarter consolidated net income includes after-tax realized
investment gains of $14 million ($0.19 per share), compared with gains of $30
million ($0.42 per share) for the same period of 1993.
REVENUES
Consolidated revenues were $4.5 billion and $4.4 billion for the first quarter
of 1994 and 1993, respectively.
ASSETS/SHAREHOLDERS' EQUITY
Assets at March 31, 1994 were $84.9 billion, compared with $85.0 billion at
year-end 1993. Shareholders' equity was $6.1 billion ($84.32 per share) at
March 31, 1994, compared with $6.6 billion ($91.30 per share) at December 31,
1993. In the first quarter of 1994, shareholders' equity decreased
approximately $500 million, primarily due to upward movement in interest rates,
resulting in a decrease in the unrealized appreciation of securities carried at
fair value. The new "mark to market" accounting requirement (SFAS 115) will
result in fluctuations in shareholders' equity.
SEGMENT RESULTS:
EMPLOYEE LIFE AND HEALTH BENEFITS
This segment, which includes CIGNA's group indemnity and HMO operations, had
operating income of $119 million in the first quarter of 1994. This compares
with operating income of $71 million in the first quarter of 1993.
<PAGE> 3
- 3 -
For the first quarter 1994, the operating income increase reflects improvements
in both the group indemnity and HMO operations. Indemnity improvements were
primarily from favorable claim experience and seasonal effects. The HMO
improvements were attributable to strong membership growth, rate increases and
cost management; HMO medical membership grew by 363,000 to approximately 3
million enrollees in the first quarter of 1994.
EMPLOYEE RETIREMENT AND SAVINGS BENEFITS
This segment, which manages retirement accounts, had operating income of $48
million in the first quarter of 1994. This compares with operating income of
$44 million in the first quarter of 1993. This increase in earnings primarily
reflects overall growth in assets under management.
Assets under management at March 31, 1994 were $33.9 billion, an increase of 5
percent from $32.3 billion as of March 31, 1993.
INDIVIDUAL FINANCIAL SERVICES
This segment, which includes individual and corporate-owned life insurance,
life & health reinsurance, and annuity businesses, had operating income of $26
million in the first quarter of 1994, about even with the $27 million for the
same period of 1993.
PROPERTY AND CASUALTY
This segment, which includes Domestic, International and Reinsurance
operations, had an operating loss of $94 million in the first quarter of 1994,
compared with an operating loss of $103 million for the same period in 1993.
<PAGE> 4
- 4 -
The first quarter 1994 results included after-tax catastrophe losses of $85
million due to the Los Angeles earthquake and the severe winter weather in the
Northeast. Catastrophe losses were $55 million after-tax for the first quarter
of 1993.
The GAAP combined operating ratio after policyholders' dividends was 133 for
the first quarter of 1994, compared with 132 for the first quarter of 1993.
OTHER
Other Operations, which includes unallocated investment income, expenses and
taxes, as well as the results of CIGNA's investment and real estate
subsidiaries and settlement annuity business, had operating income of $1
million in the first quarter of 1994. This compares with an operating loss of
$23 million in the first quarter of 1993. The first quarter of 1994 includes a
$20 million after-tax gain from the sale of the California personal automobile
and homeowners businesses.
<PAGE> 5
CIGNA CORPORATION (CIGNA LOGO)
COMPARATIVE SUMMARY OF FINANCIAL RESULTS
(Dollars in millions, except per share amounts)
<TABLE>
<CAPTION>
- - ---------------------------------------------------------------------------
Three Months Ended
March 31,
1994 1993
===========================================================================
<S> <C> <C>
REVENUES
Premiums and fees $ 3,366 $ 3,261
Net investment income 992 958
Other revenues 152 124
Realized investment gains 21 31
- - ---------------------------------------------------------------------------
Total $ 4,531 $ 4,374
- - ------------------------------------------------------=====================
NET INCOME (LOSS) BY SEGMENT
Employee Life and Health Benefits $ 125 $ 92
Employee Retirement and Savings Benefits 46 36
Individual Financial Services 28 22
Property and Casualty:
Operations (36) (31)
Asbestos and Environmental Losses (44) (48)
------- -------
Total Property and Casualty (80) (79)
Other Operations (5) (25)
- - ---------------------------------------------------------------------------
NET INCOME $ 114 $ 46
- - ------------------------------------------------------=====================
SHAREHOLDERS' EQUITY at March 31 $ 6,096 $ 5,788
- - ------------------------------------------------------=====================
WEIGHTED AVERAGE SHARES
OUTSTANDING (thousands) $72,199 $71,888
- - ------------------------------------------------------=====================
PER SHARE:
Net income $ 1.58 $ 0.64
- - ------------------------------------------------------=====================
Shareholders' Equity at March 31 $ 84.32 $ 80.44
- - ------------------------------------------------------=====================
PROPERTY AND CASUALTY
STATISTICS (GAAP)
Net written premiums $ 971 $ 1,073
Earned premiums $ 974 $ 1,058
Underwriting ratios:
Loss and loss adjustment expense 94.8% 92.9%
Underwriting expense 36.7% 36.4%
- - ---------------------------------------------------------------------------
Combined ratio 131.5% 129.3%
- - ------------------------------------------------------=====================
Combined after policyholders' dividends 132.5% 132.4%
- - ------------------------------------------------------=====================
Pre-tax catastrophe losses $ 130 $ 83
- - ------------------------------------------------------=====================
</TABLE>
