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CONFORMED COPY
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, 1997
CIGNA CORPORATION
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
DELAWARE 1-8323 06-1059331
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
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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)
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Item 5. Other Events.
On April 30, 1997, 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, 1997 By: /s/ Gary A. Swords
-------------------
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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20 CIGNA Corporation Filed herewith
news release dated
April 30, 1997
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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 1997 RESULTS
CONTINUED IMPROVEMENT IN OPERATING INCOME;
OPERATING EPS UP 22%
PHILADELPHIA, APRIL 30, 1997 -- CIGNA Corporation (NYSE:CI) today reported
first quarter 1997 operating income* of $260 million, or $3.49 per share,
versus $219 million, or $2.85 per share, reported in the first quarter of 1996.
First quarter 1997 operating income reflects continued improvement in all
segments, with strong gains in Property and Casualty and Individual Financial
Services.
SEGMENT RESULTS:
EMPLOYEE LIFE AND HEALTH BENEFITS
This segment, which includes CIGNA's HMO and indemnity operations, had
operating income of $117 million in the first quarter of 1997. This compares
with operating income of $112 million in the first quarter of 1996.
HMO medical membership grew by approximately 275,000 covered lives, or 7%, since
March 31, 1996.
* Operating income (loss) is defined as net income (loss) excluding after-tax
realized investment results.
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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 $54 million in the first quarter of 1997. This
compares with the operating income of $51 million in the first quarter of 1996.
Assets under management at March 31, 1997 were $41.1 billion, an increase of 8%
from $38.2 billion as of March 31, 1996.
INDIVIDUAL FINANCIAL SERVICES
This segment, which includes individual and corporate life insurance; life,
accident and health reinsurance; and annuity businesses had operating income of
$47 million in the first quarter of 1997. This compares with operating income
of $32 million in the first quarter of 1996.
PROPERTY AND CASUALTY
The property and casualty (P&C) segment includes the Ongoing operations
(International and Domestic) and Run-off.
Ongoing operations had operating income of $56 million for the first quarter of
1997. This compares with operating income of $41 million for the same period
last year. The combined ratio for the first quarter of 1997 was 100, compared
with 105 for the first quarter of 1996.
The Ongoing operations had $8 million of after-tax catastrophe losses for the
first quarter of 1997, compared with $15 million for the same period last year.
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International had operating income for the first quarter of 1997 of $33
million, compared with $29 million in 1996. The GAAP combined ratio after
policyholders' dividends was 94 for the first quarter of 1997, compared with 95
for the same period last year.
Domestic had operating income of $23 million for the first quarter of 1997,
compared with $12 million in 1996. The GAAP combined ratio after policyholders'
dividends for the first quarter of 1997 was 108, compared with 115 for the same
period last year.
Run-off operations had operating income of $1 million in the first quarter of
1997 and 1996.
OTHER
Other Operations includes unallocated investment income, expenses (principally
debt service), taxes, and the results of CIGNA's settlement annuity business
and investment and real estate subsidiaries. Other Operations had an operating
loss of $15 million in the first quarter of 1997, compared with an operating
loss of $18 million in the first quarter of 1996.
NET INCOME
Consolidated net income was $288 million, or $3.86 per share, compared with
$238 million, or $3.10 per share, a year ago. The 1997 first quarter
consolidated net income included after-tax realized investment gains of $28
million, or $0.37 per share, compared with gains of $19 million, or $0.25 per
share, for the same period of 1996.
REVENUES
Consolidated revenues for the first quarter of 1997 and 1996 were $4.6 billion.
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ASSETS/SHAREHOLDERS' EQUITY
Assets at March 31, 1997 were $98.8 billion, compared with $98.9 billion at
year-end 1996. Shareholders' equity was $7.1 billion ($96.18 per share) at
March 31, 1997, compared with $7.2 billion ($97.15 per share) at December 31,
1996.
Quarterly earnings are available on CIGNA's home page on the Internet
(http://www.cigna.com).
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[CIGNA LOGO]
CIGNA CORPORATION
COMPARATIVE SUMMARY OF FINANCIAL RESULTS
(Dollars in millions, except per share amounts)
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THREE MONTHS ENDED
MARCH 31,
1997 1996
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REVENUES
Premiums and fees $ 3,388 $ 3,390
Net investment income 1,053 1,083
Other revenues 160 142
Realized investment gains 44 30
- --------------------------------------------------------------------------------------------------------
Total $ 4,645 $ 4,645
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OPERATING INCOME (LOSS) BY SEGMENT (1)
Employee Life and Health Benefits:
Indemnity operations $ 58 $ 56
HMO operations 59 56
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Total Employee Life and Health Benefits 117 112
Employee Retirement and Savings Benefits 54 51
Individual Financial Services 47 32
Property and Casualty:
International 33 29
Domestic 23 12
-------- --------
Ongoing operations 56 41
Run-off operations 1 1
-------- --------
Total Property and Casualty 57 42
Other Operations (15) (18)
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Total $ 260 $ 219
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NET INCOME (LOSS) BY SEGMENT
Employee Life and Health Benefits:
Indemnity operations $ 62 $ 54
HMO operations 59 56
-------- --------
Total Employee Life and Health Benefits 121 110
Employee Retirement and Savings Benefits 62 61
Individual Financial Services 55 34
Property and Casualty:
International 41 36
Domestic 22 17
-------- --------
Ongoing operations 63 53
Run-off operations 2 (3)
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Total Property and Casualty 65 50
Other Operations (15) (17)
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Total $ 288 $ 238
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WEIGHTED AVERAGE SHARES
OUTSTANDING (THOUSANDS) 74,587 76,886
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EARNINGS PER SHARE:
Operating income (1) $ 3.49 $ 2.85
After-tax realized investment gains 0.37 0.25
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Net income $ 3.86 $ 3.10
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SHAREHOLDERS' EQUITY AT MARCH 31 $ 7,117 $ 6,863
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SHAREHOLDERS' EQUITY PER SHARE AT MARCH 31 $ 96.18 $ 89.74
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(1) Operating income (loss) is defined as net income (loss) excluding after-tax
realized investment results.
