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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, 1995
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CIGNA CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-8323 06-1059331
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
ONE LIBERTY PLACE, 1650 MARKET STREET, P.O. BOX 7716
PHILADELPHIA, PENNSYLVANIA 19192-1550
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(215) 761-1000
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NOT APPLICABLE
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
On May 2, 1995, 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, 1995 By:/s/Gary A. Swords
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Gary A. Swords
Vice President and
Chief Accounting Officer
Index to Exhibits
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<TABLE>
<CAPTION>
Number Description Method of Filing
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<S> <C> <C>
20 CIGNA Corporation Filed herewith.
news release dated
May 2, 1995
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EXHIBIT 20
NEWS RELEASE [CIGNA LOGO]
For Release: IMMEDIATE
Contact: ROBERT W. SULLIVAN, FINANCIAL RELATIONS - (215) 761-6130
MICHAEL J. MONROE, MEDIA RELATIONS - (215) 761-6133
CIGNA'S FIRST QUARTER 1995 RESULTS
PHILADELPHIA, MAY 2, 1995 -- CIGNA Corporation (NYSE:CI) today reported first
quarter 1995 operating income* of $146 million, or $2.02 per share, versus $100
million, or $1.39 per share, reported in the first quarter of 1994.
"The Health, Pension and Life operations together produced solid profits while
the Property and Casualty operations recorded significantly lower losses," said
Wilson H. Taylor, CIGNA's Chief Executive Officer.
SEGMENT RESULTS:
EMPLOYEE LIFE AND HEALTH BENEFITS
This segment, which includes CIGNA's HMO and indemnity operations, had
operating income of $104 million in the first quarter of 1995. This compares
with operating income of $119 million in the first quarter of 1994. The
decline is primarily due to unfavorable claim experience in the indemnity
business, particularly in the long-term disability product line.
* Operating income is defined as net income excluding realized investment gains
and losses.
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HMO medical membership grew by 284,000 covered lives or 8% in the quarter
and by 567,000 covered lives, or 18% since March 31, 1994.
EMPLOYEE RETIREMENT AND SAVINGS BENEFITS
This segment, which operates in the defined benefit and defined contribution
markets, had operating income of $49 million in the first quarter of 1995.
This compares with operating income of $48 million in the first quarter of
1994.
Assets under management at March 31, 1995 were $35.0 billion, an increase of 3%
from $33.9 billion as of March 31, 1994.
INDIVIDUAL FINANCIAL SERVICES
This segment, which includes individual and corporate-owned life insurance,
life, accident and health reinsurance, and annuity businesses, had operating
income of $31 million in the first quarter of 1995. This compares with
operating income of $26 million in the first quarter of 1994.
The operating income increase for the first quarter of 1995 reflects continued
business growth in interest sensitive products.
PROPERTY AND CASUALTY
The property and casualty (P&C) segment had an operating loss of $19 million
for the first quarter of 1995. This compares with an operating loss of $94
million for the first quarter of 1994, which included significant catastrophe
losses.
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Excluding asbestos and environmental (A&E) losses, the P&C segment reported
operating income of $26 million in the first quarter of 1995, compared with an
operating loss of $50 million for the same period in 1994. The International
division had operating income for the first quarter of 1995 of $16 million,
compared with income of $8 million in 1994, and the Domestic division reported
income of $12 million for the first quarter of 1995, compared with a loss of
$51 million in 1994.
The A&E losses in the first quarter of 1995 were $45 million, compared with
losses of $44 million in 1994.
The first quarter of 1995 and 1994 included after-tax catastrophe losses of $10
million and $85 million, respectively. The first quarter 1994 catastrophe
losses reflect the effect of the Los Angeles earthquake and the severe winter
weather in the Northeast.
Excluding A&E losses, the GAAP combined ratio after policyholders' dividends
was 112 for the first quarter of 1995, compared with 126 for the comparable
period of 1994.
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 an operating loss of $19
million in the first quarter of 1995. This compares with operating income of
$1 million in the first quarter of 1994. The first quarter of 1994 included a
$20 million after-tax gain from the sale of a business.
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NET INCOME
Consolidated net income was $290 million ($4.00 primary earnings per share),
compared with $114 million ($1.58 per share) a year ago. The 1995 first
quarter consolidated net income included after-tax realized investment gains of
$144 million ($1.98 per share), compared with gains of $14 million ($0.19 per
share) for the same period of 1994. The significant investment gains in the
first quarter of 1995 reflect the effects of restructuring several portfolios.
REVENUES
Consolidated revenues for the first quarter of 1995 were $4.8 billion, compared
with $4.5 billion for the same period in 1994.
ASSETS / SHAREHOLDERS' EQUITY
Assets at March 31, 1995 were approximately $89 billion, compared with
approximately $86 billion at year-end 1994. Shareholders' equity was $6.2
billion ($85.45 per share) at March 31, 1995, compared with $5.8 billion
($80.46 per share) at December 31, 1994.
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CIGNA CORPORATION
COMPARATIVE SUMMARY OF FINANCIAL RESULTS
(Dollars in millions, except per share amounts) [CIGNA LOGO]
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<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1995 1994
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<S> <C> <C>
REVENUES
Premiums and fees $ 3,418 $ 3,366
Net investment income 1,027 992
Other revenues 127 152
Realized investment gains 182 21
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Total $ 4,754 $ 4,531
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OPERATING INCOME (LOSS) BY SEGMENT*
Employee Life and Health Benefits:
Indemnity $ 47 $ 60
HMOs 57 59
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104 119
Employee Retirement and Savings Benefits 49 48
Individual Financial Services 31 26
Property and Casualty:
Operations 26 (50)
Asbestos and Environmental Losses (45) (44)
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Total Property and Casualty (19) (94)
Other Operations (19) 1
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Total $ 146 $ 100
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NET INCOME (LOSS) BY SEGMENT
Employee Life and Health Benefits $ 185 $ 125
Employee Retirement and Savings Benefits 51 46
Individual Financial Services 33 28
Property and Casualty:
Operations 71 (36)
Asbestos and Environmental Losses (45) (44)
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Total Property and Casualty 26 (80)
Other Operations (5) (5)
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Total $ 290 $ 114
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SHAREHOLDERS' EQUITY AT MARCH 31 $ 6,187 $ 6,096
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WEIGHTED AVERAGE SHARES
OUTSTANDING (THOUSANDS) 72,441 72,199
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PRIMARY EARNINGS PER SHARE:
Operating income* $ 2.02 $ 1.39
After-tax realized investment gains 1.98 0.19
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Net income $ 4.00 $ 1.58
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Shareholders' equity per share at March 31 $ 85.45 $ 84.32
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PROPERTY AND CASUALTY
STATISTICS (GAAP)
Net written premiums $ 845 $ 998
Earned premiums $ 901 $ 1,001
Underwriting ratios:
Loss and loss adjustment expense 76.7% 93.8%
Underwriting expense 42.3% 38.0%
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Combined ratio 119.0% 131.8%
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Combined after policyholders' dividends 120.0% 132.8%
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Pre-tax catastrophe losses $ 16 $ 130
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* Operating income is defined as net income excluding after-tax
realized investment results.
