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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) APRIL 30, 1996
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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 April 30, 1996, 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: April 30, 1996 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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Number Description Method of Filing
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<S> <C> <C>
20 CIGNA Corporation Filed herewith.
news release dated
April 30, 1996
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EXHIBIT 20
NEWS RELEASE [CIGNA LOGO]
For Release: IMMEDIATE One Liberty Place
1650 Market Street
P.O. Box 7716
Philadelpha, PA 19192-1550
(215) 761-1000
Contact: ROBERT W. SULLIVAN, FINANCIAL RELATIONS - (215) 761-6130
MICHAEL J. MONROE, MEDIA RELATIONS - (215) 761-6133
CIGNA'S FIRST QUARTER 1996 RESULTS
CONTINUED STRONG OPERATING INCOME GROWTH
PHILADELPHIA, APRIL 30, 1996 -- CIGNA Corporation (NYSE:CI) today reported
first quarter 1996 operating income* of $219 million, or $2.85 on a primary
earnings per share basis, versus $146 million, or $2.02 per share, reported in
the first quarter of 1995. First quarter 1996 operating results reflect
continued progress in all businesses, particularly in the property and casualty
segment.
SEGMENT RESULTS:
EMPLOYEE LIFE AND HEALTH BENEFITS
This segment, which includes CIGNA's HMO and indemnity operations, had
operating income of $112 million in the first quarter of 1996. This compares
with operating income of $104 million in the first quarter of 1995.
HMO medical membership grew by 350,000 covered lives or 9% in the quarter and
by 450,000 covered lives, or 12% since March 31, 1995.
* OPERATING INCOME IS DEFINED AS NET INCOME EXCLUDING REALIZED INVESTMENT GAINS
AND LOSSES.
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EMPLOYEE RETIREMENT AND SAVINGS BENEFITS
This segment, which operates in the defined contribution and defined benefit
markets, had operating income of $51 million in the first quarter of 1996.
This compares with operating income of $49 million in the first quarter of
1995.
Assets under management at March 31, 1996 were $38.1 billion, an increase of 9%
from $35.0 billion as of March 31, 1995.
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 $32 million in the first quarter of 1996. This compares with
operating income of $31 million in the first quarter of 1995.
PROPERTY AND CASUALTY
The property and casualty (P&C) segment had operating income of $42 million for
the first quarter of 1996. This compares with an operating loss of $19 million
for the first quarter of 1995.
The P&C segment consists of the Ongoing operations, International and Domestic,
and the Run-off operations.
Amounts for 1995 are reported on a pro forma basis as though the Domestic P&C
restructuring, which was effective as of December 31, 1995, was in place at the
beginning of 1995. These pro forma results are not necessarily indicative of
the results that would have been reported had the
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restructuring actually occurred as of January 1, 1995. Consolidated P&C
segment amounts for 1995 did not change.
International had operating income for the first quarter of 1996 of $29
million, compared with income of $18 million in 1995. The GAAP combined ratio
after policyholders' dividends was 95.0% for the first quarter of 1996,
compared with 97.5% for the comparable period of 1995.
Domestic had operating income of $12 million for the first quarter of 1996,
compared with a loss of $14 million in 1995. The GAAP combined ratio after
policyholders' dividends for the first quarter of 1996 was 115.2%, compared
with 118.8% for the comparable period of 1995.
Pre-tax catastrophe losses for the Ongoing operations were $23 million and $14
million for the first quarter of 1996 and 1995, respectively.
Run-off had operating income of $1 million in the first quarter of 1996,
compared with an operating loss of $23 million for the same period in 1995.
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 $18
million in the first quarter of 1996. This compares with an operating loss of
$19 million in the first quarter of 1995.
NET INCOME
Consolidated net income was $238 million ($3.10 primary earnings per share),
compared with $290 million ($4.00 per share) a year ago. The 1996 first
quarter consolidated net income
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included after-tax realized investment gains of $19 million ($0.25 per share),
compared with gains of $144 million ($1.98 per share) for the same period of
1995. The significant investment gains in the first quarter of 1995 reflected
the effects of restructuring the equity portfolio.
REVENUES
Consolidated revenues for the first quarter of 1996 were $4.6 billion, compared
with $4.8 billion for the same period in 1995.
ASSETS/SHAREHOLDERS' EQUITY
Assets at March 31, 1996 were approximately $95.4 billion, compared with
approximately $95.9 billion at year-end 1995. Shareholders' equity was $6.9
billion ($89.74 per share) at March 31, 1996, compared with $7.2 billion
($93.76 per share) at December 31, 1995.
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CIGNA CORPORATION
COMPARATIVE SUMMARY OF FINANCIAL RESULTS
(Dollars in millions, except per share amounts) [CIGNA LOGO]
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THREE MONTHS ENDED
MARCH 31,
1996 1995
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REVENUES
Premiums and fees $ 3390 $ 3418
Net investment income 1083 1027
Other revenues 142 127
Realized investment gains 30 182
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Total $ 4645 $ 4754
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OPERATING INCOME (LOSS) BY SEGMENT (1)
Employee Life and Health Benefits:
Indemnity operations $ 56 $ 47
HMO operations 56 57
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Total Employee Life and Health Benefits 112 104
Employee Retirement and Savings Benefits 51 49
Individual Financial Services 32 31
Property and Casualty (2):
Domestic 12 (14)
International 29 18
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Ongoing operations 41 4
Run-off operations 1 (23)
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Total Property and Casualty 42 (19)
Other Operations (18) (19)
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Total $ 219 $ 146
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NET INCOME (LOSS) BY SEGMENT
Employee Life and Health Benefits:
Indemnity operations $ 54 $ 128
HMO operations 56 57
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Total Employee Life and Health Benefits 110 185
Employee Retirement and Savings Benefits 61 51
Individual Financial Services 34 33
Property and Casualty (2):
Domestic 17 37
International 36 16
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Ongoing operations 53 53
Run-off operations (3) (27)
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Total Property and Casualty 50 26
Other Operations (17) (5)
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Total $ 238 $ 290
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SHAREHOLDERS' EQUITY at March 31 $ 6863 $ 6187
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WEIGHTED AVERAGE SHARES
OUTSTANDING (thousands) 76,886 72,441
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PRIMARY EARNINGS PER SHARE:
Operating income (1) $ 2.85 $ 2.02
After-tax realized investment gains 0.25 1.98
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Net income $ 3.10 $ 4.00
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Shareholders' equity per share at March 31 $ 89.74 $ 85.45
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(1) Operating income is defined as net income excluding after-tax realized
investment results.
(2) Amounts for the Property and Casualty segment's Domestic and Run-off
operations for 1995 are reported on a pro forma basis as though the
Property and Casualty restructuring, which was effective as of December
31, 1995, was in place at the beginning of 1995. These pro forma
results are not necessarily indicative of the results that would have
been reported had the restructuring actually occurred as of January 1,
1995. Consolidated Property and Casualty segment amounts for 1995 did
not change.
