SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------------------------
FORM 11-K
(Mark One)
|X| ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the fiscal year ended December 31, 1997
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ________ to ________
Commission File Number 1-8323
-----------------------------------------------------
A. Full title of the plan and the address of the plan, if different from that
of the issuer named below:
CIGNA Corporation
Savings and Investment Plus Plan
Two Liberty Place, 17th Floor
1601 Chestnut Street
P.O. Box 7716
Philadelphia, PA 19192
B. Name of issuer of the securities held pursuant to the plan and the address
of its principal executive office:
CIGNA Corporation
One Liberty Place
1650 Market Street
Philadelphia, PA 19192
<PAGE>
Required Information
Financial statements and schedules for CIGNA Corporation's Savings and
Investment Plus Plan, prepared in accordance with the financial reporting
requirements of Employee Retirement Income Security Act of 1974, appear on
pages 11-K-3 through 11-K-19 of this Annual Report on Form 11-K.
11-K-2
<PAGE>
SAVINGS AND INVESTMENT PLUS
PLAN
Financial Statements and
Supplemental Schedules
December 31, 1997 and 1996
11-K-3
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
TABLE OF CONTENTS
Page
Report of Independent Accountants 1
Financial Statements
Statements of Net Assets Available for Benefits 2
Statements of Changes in Net Assets Available for Benefits 3
Notes to Financial Statements 4
Supplemental Schedules
Schedule of Assets Held for Investment Purposes 13
Schedule of Reportable Transactions 14
Schedule of Loans in Default 15
11-K-4
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of CIGNA Corporation
and the Participants and Administrator of
the Savings and Investment Plus Plan
In our opinion, the accompanying statements of net assets available for
benefits and the related statements of changes in net assets available
for benefits present fairly, in all material respects, the net assets
available for benefits of the Savings and Investment Plus Plan (the
Plan) at December 31, 1997 and 1996, and the changes in net assets
available for benefits for the years then ended, in conformity with
generally accepted accounting principles. These financial statements
are the responsibility of the Plan's management; our responsibility is
to express an opinion on these financial statements based on our
audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for the opinion expressed
above.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules are
not required as part of the basic financial statements but represent
additional information required by the Employee Retirement Income
Security Act of 1974. Such information has been subjected to the
auditing procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a
whole.
/s/ Price Waterhouse LLP
Philadelphia, Pennsylvania
June 12, 1998
11-K-5
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
As of
December 31,
1997 1996
------ ------
(In thousands)
<S> <C> <C>
Assets
Investments, at fair value
Fixed Income Fund $ 886,053 $ 891,281
CIGNA Stock Fund 162,070 113,215
Pooled separate accounts of Connecticut
General Life Insurance Company:
Fidelity Advisor Growth Opportunities Fund 300,218 227,302
Stock Market Index Fund 144,841 84,101
Founders Growth Fund 44,028 13,362
International Equity Fund 29,733 30,114
Warburg Pincus Advisor Emerging Growth Fund 28,040 9,235
INVESCO Total Return Fund 28,036 22,967
INVESCO Industrial Income Fund -- 8,666
Participant Loans 50,648 45,221
----------- -----------
Net assets available for benefits $ 1,673,667 $ 1,445,464
=========== ===========
The Notes to Financial Statements are an integral part of these statements.
-2- 11-K-6
</TABLE>
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
<TABLE>
<CAPTION>
For the Years Ended
December 31,
1997 1996
------ ------
(In thousands)
<S> <C> <C>
Investment income
Interest and dividends $ 64,915 $ 64,426
Net appreciation in fair value of CIGNA stock 29,912 27,248
Net investment gain from separate accounts 112,262 54,882
----------- -----------
Total investment income 207,089 146,556
----------- -----------
Contributions
Employees' contributions 76,321 71,741
Employer's contributions 28,609 28,882
Rollover contributions 6,458 4,461
----------- -----------
Total contributions 111,388 105,084
----------- -----------
Benefits paid (90,274) (77,382)
----------- -----------
Transfers to other plans -- (40,972)
----------- -----------
Net increase 228,203 133,286
Net assets available for benefits
Beginning of year 1,445,464 1,312,178
----------- -----------
End of year $ 1,673,667 $ 1,445,464
=========== ===========
The Notes to Financial Statements are an integral part of these statements.
-3- 11-K-7
</TABLE>
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Note 1 - Description of the Plan
Generally, all domestic employees of CIGNA Corporation (CIGNA) and its
participating subsidiaries who have completed at least one year of service are
eligible to participate in the Savings and Investment Plus Plan (the Plan), a
defined contribution plan. The following description of the Plan provides
general information only. A more complete explanation of the features and
benefits available under the Plan is contained in the Summary Plan Description
and Prospectus.
Contributions
- -------------
The Plan permits tax-deferred contributions to a maximum of 16% of a
participant's eligible earnings. Eligible earnings were limited to $160,000 and
$150,000 in 1997 and 1996, respectively. Tax-deferred contributions are
accomplished by means of an employee's election, pursuant to Section 401(k) of
the Internal Revenue Code (IRC), to have an amount withheld by the employer from
the employee's compensation, and for the employer to remit to the employee's
plan account an amount equal to such withholding. Tax-deferred contributions are
also referred to herein as "employee contributions." Under the IRC, tax-deferred
contributions were limited to $9,500 in 1997 and 1996. To comply with
anti-discrimination provisions, tax-deferred contributions for highly
compensated employees were limited to 7% and 6% of eligible earnings in 1997 and
1996, respectively. CIGNA companies made matching contributions in an amount
equal to 50% of the first 6% of eligible earnings contributed by participants.
These matching contributions are referred to herein as "employer contributions."
Beginning with the 1998 plan year, CIGNA may provide an additional matching
contribution. This additional matching contribution would be made at CIGNA's
discretion after the close of the plan year, based on an assessment of CIGNA's
performance for the plan year. Each contribution would range from zero to two
percent of a participant's eligible earnings and would be invested in the CIGNA
Stock Fund.
The Plan may accept rollover contributions. Rollover contributions represent
distributions received from other employer-sponsored, tax qualified pension or
profit sharing plans. Distributions from other plans are subject to certain
conditions to be eligible for rollover into the Plan.
Vesting
- -------
Employee contributions, including related investment earnings, are fully vested
at all times. Employer contributions and related investment earnings vest 20%
for each year of vesting service. Participants earn a year of vesting service if
they have 1,000 hours of service during the calendar year period. Early vesting
rules may apply upon joining the Plan if the participant was previously employed
by a CIGNA company or had an account in certain plans that have since merged
into the Plan. Employer contributions and related investment earnings are fully
vested upon an employee's attainment of age 65, death or total and permanent
disability.
-4- 11-K-8
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Full vesting would also occur if a participating CIGNA company is sold and does
not maintain a successor plan, if CIGNA discontinues matching contributions or
if the Plan is terminated. Upon termination of a participant's employment, that
portion of employer contributions and related investment earnings which are not
vested are forfeited. Forfeited amounts are used to reduce future employer
contributions. Forfeitures of approximately $605,000 and $100,000 were used to
reduce employer contributions in 1997 and 1996, respectively.
Loans
- -----
The Plan permits participants to borrow a portion of their account, subject to
certain limitations, at an annual rate of interest with a specified repayment
period. The minimum amount that can be borrowed is $1,000; the maximum total
loan amount is the lesser of $50,000 or 50% of the participant's vested account
balance. A participant may have no more than two outstanding loans. Loan terms
range from 12 to 60 months, or up to 120 months if the loan is used to buy or
build a participant's primary residence. Loan interest rates remain fixed during
the term of the loan. The loan is secured by the participant's account balance.
Generally, loan repayments are made by payroll deduction. Both the interest and
principal portions of every repayment are allocated to the participant account
according to the investment election in effect at the time of the repayment. The
interest portion of every repayment is added to the participant's account
balance as earnings. If a default occurs, the amount of the outstanding loan
balance is treated as a distribution to the participant. The defaulting
participant is subject to immediate taxation on the taxable portion of the
defaulted amount, including a possible 10% penalty tax. As soon as permitted by
law, the loan account balance is reduced to zero and the participant's account
balance is reduced by the amount of the defaulted loan.
Payment of Benefits
- -------------------
Participants may withdraw funds subject to the requirements of the Plan, and
such withdrawals may be subject to immediate taxation and a possible 10% penalty
tax.
On termination of employment due to death, disability, retirement or other
reasons, a participant may elect to receive either a lump-sum amount equal to
the value of the participant's vested account balance, monthly installments for
up to 30 years, an annuity, or a combination of these forms. To the extent
amounts are invested in the CIGNA Stock Fund, a participant may elect to receive
such amounts in CIGNA common stock.
Transfers to Other Plans
- ------------------------
In accordance with agreements related to the disposition of certain operations
of CIGNA, the account balances of certain participants were transferred during
1996 to plans maintained by the acquirers of these operations.
-5- 11-K-9
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Investments
- -----------
Plan participants may elect to invest in any combination of several funds, and
are permitted to transfer assets, subject to certain restrictions, among the
funds. Some of the funds are pooled with investments made by other benefit plans
or investors in separate accounts.
Fixed Income Fund - Contributions to this investment option are invested in a
- -----------------
group fixed annuity contract issued by Connecticut General Life Insurance
Company (CGLIC), a CIGNA subsidiary. CGLIC guarantees the principal and
accumulated interest of all monies deposited. An annual rate of interest is
declared in advance and subject to change.
CIGNA Stock Fund - Contributions to this investment option are invested in
- ----------------
shares of CIGNA common stock. Such shares presently are purchased on the open
market but may be acquired directly from CIGNA. From time to time, a portion of
CIGNA Stock Fund assets may be invested in short-term investments.
Fidelity Advisor Growth Opportunities Fund - Contributions to this investment
- ------------------------------------------
option are invested in Separate Account 55A (SA-55A) of CGLIC. All the assets of
this pooled account are invested in Class T shares of the Fidelity Advisor
Growth Opportunities Fund, a mutual fund. The fund's objective is long-term
capital growth. The fund's portfolio consists primarily of common stocks or
securities convertible into common stocks.
Stock Market Index Fund - Contributions to this investment option are invested
- -----------------------
in Separate Account B (SA-B) of CGLIC, a pooled common stock fund. The fund's
objective is to match the performance of the Standard & Poor's 500 Composite
Stock Price Index.
Founders Growth Fund - Contributions to this investment option began November
- --------------------
15, 1996, and are invested in Separate Account 55JR (SA-55JR) of CGLIC. All the
assets of this pooled account are invested in the Founders Growth Fund, a mutual
fund. The fund's objective is long-term capital growth. The fund's portfolio
consists primarily of common stocks of high-quality growth companies.
International Equity Fund - Contributions to this investment option are invested
- -------------------------
in Separate Account I (SA-I) of CGLIC, a pooled common stock fund. The fund's
objective is to invest primarily in stocks of a diversified group of non-U.S.
companies that have the potential to provide superior returns.
Warburg Pincus Advisor Emerging Growth Fund - Contributions to this investment
- -------------------------------------------
option began November 15, 1996, and are invested in Separate Account 55G
(SA-55G) of CGLIC. All the assets of this pooled account are invested in the
Warburg Pincus Advisor Emerging Growth Fund, a mutual fund. The fund's objective
is maximum capital appreciation. The fund's portfolio consists primarily of
common stocks or warrants of small to medium-sized domestic companies with
emerging or renewed growth potential.
-6- 11-K-10
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
INVESCO Total Return Fund - Contributions to this investment option are invested
- -------------------------
in Separate Account 55K (SA-55K) of CGLIC. All the assets of this pooled account
are invested in the INVESCO Total Return Fund, a mutual fund. The fund's
objective is to provide a high return on investment through both capital
appreciation and current income. The fund's portfolio consists of equity
securities (common stocks and, to a lesser extent, securities convertible into
common stocks) and fixed income securities (primarily obligations of the U.S.
government and government-backed agencies). This investment option was
eliminated from the Plan on February 27, 1998. Any balances in the fund on this
date were transferred into the Fixed Income Fund.
INVESCO Industrial Income Fund - This investment option was eliminated from the
- ------------------------------
Plan on January 31, 1997. Any balances in the fund on this date were transferred
into the CIGNA Stock Market Index Fund. Contributions to this investment option
had been invested in Separate Account 55J (SA-55J) of CGLIC. All the assets of
this pooled account are invested in the INVESCO Industrial Income Fund, a mutual
fund.
New Investment Options - Effective January 1, 1998, the Plan added three new
- ----------------------
investment options.
o Templeton Foreign Fund - Contributions to this investment option will
----------------------
be invested in Separate Account 55HS of CGLIC. All the assets of this
pooled account are invested in Class I shares of the Templeton Foreign
Fund, a mutual fund, whose objective is long-term capital growth.
o Barclays Equity Market Index Fund - Contributions to this investment
---------------------------------
option will be invested in Separate Account BGI of CGLIC. All the
assets of this pooled account are invested in the Barclays Daily
Extended Equity Market Fund, a commingled trust fund, whose objective
is to approximate the performance of the Barclays Extended Market
Index.
o State Street Global Advisors EAFE Index Fund - Contributions to this
--------------------------------------------
investment option will be invested in Separate Account 55A1 of CGLIC.
All the assets of this pooled account are invested in the State Street
Global Advisors EAFE Index Fund, a commingled trust fund, whose
objective is to match the total return of the Morgan Stanley Capital
International Europe, Australia and Far East (EAFE) Index.
Plan Termination
- ----------------
CIGNA intends to continue the Plan indefinitely, but reserves the right to
discontinue contributions or terminate the Plan in whole or in part at any time.
If contributions are discontinued or the Plan is terminated, affected
participants will become fully vested. Upon Plan termination, net assets of the
Plan will be distributed in the manner CIGNA elects and in accordance with the
Employee Retirement Income Security Act of 1974 (ERISA) and its related
regulations.
-7- 11-K-11
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Plan Trustee
- ------------
Mellon Bank (East) N.A., Philadelphia, Pennsylvania is the Trustee for the Plan.
Note 2 - Significant Accounting Policies
Basis of Presentation
- ---------------------
The financial statements have been prepared on the accrual basis of accounting
in conformity with generally accepted accounting principles.
Valuation of Investments
- ------------------------
Plan investments are reported at fair value. The fair value of the Fixed Income
Fund is equivalent to its contract value. Contract value represents the
aggregate amount on deposit, including accumulated interest. The fair value of
CIGNA common stock is based upon quoted market price. Fair value of CGLIC's
separate accounts is measured by the net unit value, which is based on the fair
value of the underlying assets of the account. Net investment gain from separate
accounts results from the increase in net unit value.
Payment of Benefits
- -------------------
Benefits are recorded when paid.
Plan Expenses
- -------------
The investment results of all funds except the CIGNA Stock Fund are net of
management fees, investment expenses, risk charges and administrative costs
charged by CGLIC. Brokers' commissions resulting from buying or selling stock in
the CIGNA Stock Fund are paid from the participants' accounts and have been
reflected as a reduction of the CIGNA Stock Fund's investment income in these
financial statements. Other costs associated with the operation of the Plan,
including trustee and legal fees, are paid by CIGNA.
-8- 11-K-12
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Note 3 - Investments
An analysis of the changes in net assets available for benefits by investment
fund for the year ended December 31, 1997 is presented below.
<TABLE>
<CAPTION>
Fidelity
Advisor
Growth Founders
Fixed CIGNA Opportunities Stock Market Growth International
Year Ended December 31, 1997 Income Fund Stock Fund Fund Index Fund Fund Equity Fund
- ---------------------------------- ----------- ---------- ------------- ------------ -------- -------------
(In thousands)
<S> <C> <C> <C> <C> <C> <C>
Investment income
Interest and dividends $ 58,541 $ 2,926 $ -- $ -- $ -- $ --
Net appreciation in fair value
of CIGNA stock -- 29,912 -- -- -- --
Net investment gain (loss) from
separate accounts -- -- 65,617 32,244 5,585 (872)
----------- ----------- ----------- ----------- ----------- -----------
Total investment income 58,541 32,838 65,617 32,244 5,585 (872)
----------- ----------- ----------- ----------- ----------- -----------
Contributions
Employees' contributions 30,285 9,214 17,699 8,345 3,306 2,977
Employer's contributions 11,418 3,489 6,660 3,083 1,176 1,134
Rollover contributions 1,715 754 1,077 894 839 190
----------- ----------- ----------- ----------- ----------- -----------
Total contributions 43,418 13,457 25,436 12,322 5,321 4,301
----------- ----------- ----------- ----------- ----------- -----------
Loan principal repayments 11,372 2,569 4,316 1,797 770 604
Loan interest received - allocated 1,755 398 667 270 105 104
Loans issued (18,026) (2,829) (4,637) (1,902) (613) (600)
Benefits paid (59,311) (6,776) (12,732) (5,344) (809) (1,225)
Interfund transfers (42,977) 9,198 (5,751) 21,353 20,307 (2,693)
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) (5,228) 48,855 72,916 60,740 30,666 (381)
Net assets available for benefits
Beginning of year 891,281 113,215 227,302 84,101 13,362 30,114
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 886,053 $ 162,070 $ 300,218 $ 144,841 $ 44,028 $ 29,733
=========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Warburg
Pincus
Advisor INVESCO INVESCO
Emerging Total Industrial Participant
Year Ended December 31, 1997 Growth Fund Return Fund Income Fund Loans Total
- ---------------------------------- ----------- ----------- ----------- ----------- -----
(In thousands)
Investment income
<S> <C> <C> <C> <C> <C>
Interest and dividends $ -- $ -- $ -- $ 3,448 $ 64,915
Net appreciation in fair value
of CIGNA stock -- -- -- -- 29,912
Net investment gain (loss) from
separate accounts 3,277 6,138 273 -- 112,262
----------- ----------- ----------- ----------- -----------
Total investment income 3,277 6,138 273 3,448 207,089
----------- ----------- ----------- ----------- -----------
Contributions
Employees' contributions 2,250 2,180 65 -- 76,321
Employer's contributions 821 802 26 -- 28,609
Rollover contributions 584 401 4 -- 6,458
----------- ----------- ----------- ----------- -----------
Total contributions 3,655 3,383 95 -- 111,388
----------- ----------- ----------- ----------- -----------
Loan principal repayments 546 452 10 (22,436) --
Loan interest received - allocated 74 73 2 (3,448) --
Loans issued (372) (485) (12) 29,476 --
Benefits paid (1,003) (1,429) (32) (1,613) (90,274)
Interfund transfers 12,628 (3,063) (9,002) -- --
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 18,805 5,069 (8,666) 5,427 228,203
Net assets available for benefits
Beginning of year 9,235 22,967 8,666 45,221 1,445,464
----------- ----------- ----------- ----------- -----------
End of year $ 28,040 $ 28,036 $ -- $ 50,648 $ 1,673,667
=========== =========== =========== =========== ===========
-9- 11-K-13
</TABLE>
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
An analysis of the changes in net assets available for benefits by investment
fund for the year ended December 31, 1996 is presented below.
<TABLE>
<CAPTION>
Fidelity
Advisor
Growth Founders
Fixed CIGNA Opportunities Stock Market Growth International
Year Ended December 31, 1996 Income Fund Stock Fund Fund Index Fund Fund Equity Fund
- --------------------------------------------- ----------- ---------- ------------- ------------ -------- -------------
(In thousands)
Investment income
<S> <C> <C> <C> <C> <C> <C>
Interest and dividends $ 58,907 $ 2,610 $ -- $ -- $ -- $ --
Net appreciation in fair value of CIGNA stock -- 27,248 -- -- -- --
Net investment gain (loss) from
separate accounts -- -- 34,381 13,433 (213) 1,785
----------- ----------- ----------- ----------- ----------- -----------
Total investment income 58,907 29,858 34,381 13,433 (213) 1,785
----------- ----------- ----------- ----------- ----------- -----------
Contributions
Employees' contributions 34,990 6,814 17,605 5,265 117 2,908
Employer's contributions 14,415 2,712 6,966 2,040 43 1,148
Rollover contributions 1,358 710 1,189 564 35 197
----------- ----------- ----------- ----------- ----------- -----------
Total contributions 50,763 10,236 25,760 7,869 195 4,253
----------- ----------- ----------- ----------- ----------- -----------
Loan principal repayments 11,233 1,598 3,589 952 30 596
Loan interest received - allocated 1,717 264 563 151 5 97
Loans issued (19,073) (1,908) (3,670) (996) (7) (512)
Benefits paid (55,883) (5,184) (9,158) (2,611) (6) (1,037)
Transfers to other plans (27,419) (1,673) (6,684) (1,543) -- (581)
Interfund transfers (31,132) (1,368) (5,872) 17,531 13,358 6,366
----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) (10,887) 31,823 38,909 34,786 13,362 10,967
Net assets available for benefits
Beginning of year 902,168 81,392 188,393 49,315 -- 19,147
----------- ----------- ----------- ----------- ----------- -----------
End of year $ 891,281 $ 113,215 $ 227,302 $ 84,101 $ 13,362 $ 30,114
=========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Warburg
Pincus
Advisor INVESCO INVESCO
Emerging Total Industrial Participant
Year Ended December 31, 1996 Growth Fund Return Fund Income Fund Loans Total
- --------------------------------------------- ----------- ----------- ------------ ----------- -----
(In thousands)
Investment income
<S> <C> <C> <C> <C> <C>
Interest and dividends $ -- $ -- $ -- $ 2,909 $ 64,426
Net appreciation in fair value of CIGNA stock -- -- -- -- 27,248
Net investment gain (loss) from
separate accounts 147 2,510 2,839 -- 54,882
----------- ----------- ----------- ----------- -----------
Total investment income 147 2,510 2,839 2,909 146,556
----------- ----------- ----------- ----------- -----------
Contributions
Employees' contributions 89 1,976 1,977 -- 71,741
Employer's contributions 33 764 761 -- 28,882
Rollover contributions 13 202 193 -- 4,461
----------- ----------- ----------- ----------- -----------
Total contributions 135 2,942 2,931 -- 105,084
----------- ----------- ----------- ----------- -----------
Loan principal repayments 28 367 335 (18,728) --
Loan interest received - allocated 3 60 49 (2,909) --
Loans issued (1) (334) (305) 26,806 --
Benefits paid (5) (926) (559) (2,013) (77,382)
Transfers to other plans -- (455) (323) (2,294) (40,972)
Interfund transfers 8,928 2,663 (10,474) -- --
----------- ----------- ----------- ----------- -----------
Net increase (decrease) 9,235 6,827 (5,507) 3,771 133,286
Net assets available for benefits
Beginning of year -- 16,140 14,173 41,450 1,312,178
----------- ----------- ----------- ----------- -----------
End of year $ 9,235 $ 22,967 $ 8,666 $ 45,221 $ 1,445,464
=========== =========== =========== =========== ===========
-10- 11-K-14
</TABLE>
<PAGE>
SAVINGS AND INVESTMENT PLUS PLAN
NOTES TO FINANCIAL STATEMENTS
Note 4 - Tax Status
A favorable determination letter was received from the Internal Revenue Service
(IRS) for the Plan and all Plan amendments through December 31, 1994, indicating
that the Plan was in compliance with the applicable requirements of the IRC. The
Plan has been amended since receiving the determination letter. However,
management believes that the Plan is designed and is currently being operated in
compliance with the applicable requirements of the IRC.
Note 5 - Related Party Transactions
There are transactions between the Plan and CIGNA and its affiliates which, in
the opinion of Plan management, are exempt from detailed reporting under Title I
of ERISA. Investments in CGLIC's separate accounts represent investments for
which CGLIC has fiduciary responsibility. Investment in the Fixed Income Fund
represents participation in the general account assets of CGLIC. CGLIC is the
Plan's recordkeeper.
Note 6 - Subsequent Event
CIGNA acquired Healthsource, Inc. in June 1997. In February 1998, assets of
approximately $45 million were transferred into the Plan from the Healthsource
Retirement Savings Plan.
-11- 11-K-15
<PAGE>
SUPPLEMENTAL SCHEDULES
11-K-16
<PAGE>
<TABLE>
<CAPTION>
SAVINGS AND INVESTMENT PLUS PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
As of December 31, 1997
(Dollars in thousands)
Current
Identity of Party Description Cost Value
------------------ ---------------------------------------------------------- -------------- --------------
<S> <C> <C> <C>
CGLIC Fixed Income Fund $ 886,053 $ 886,053
CIGNA CIGNA Stock Fund
CIGNA common stock- 935,310 shares 97,611 161,224
Short-term investments 76 76
CGLIC Fidelity Advisor Growth Opportunities Fund 191,440 300,218
CGLIC Stock Market Index Fund 101,783 144,841
CGLIC Founders Growth Fund 39,624 44,028
CGLIC International Equity Fund 29,483 29,733
CGLIC Warburg Pincus Advisor Emerging Growth Fund 25,230 28,040
CGLIC INVESCO Total Return Fund 21,131 28,036
CGLIC Participant Loans
(5.14% to 12.95%; maturity 1998-2007) 50,648
-------------
Total assets held for investment purposes 1,672,897
Investment income receivable (CIGNA Stock Fund) 770
-------------
Net assets available for benefits $ 1,673,667
=============
-13- 11-K-17
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SAVINGS AND INVESTMENT PLUS PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
For the Year Ended December 31, 1997
(In thousands)
Sales
------------------------------------------------
Party Involved Description of Asset Purchases Proceeds Cost Net Gain
- ------------------- ---------------------------- ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
CGLIC Fixed Income Fund $ 136,857 $ 200,626 $ 200,626 $ -
CIGNA CIGNA Stock Fund 46,352 27,521 15,533 11,988
CGLIC Fidelity Advisor Growth
Opportunities Fund 67,567 60,268 42,192 18,076
CGLIC Stock Market Index Fund 61,411 32,915 23,220 9,695
-14-
11-K-18
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SAVINGS AND INVESTMENT PLUS PLAN
SCHEDULE OF LOANS IN DEFAULT
As of December 31, 1997
(In thousands)
Original Amounts Received Unpaid
Amounts of During 1997 Balances at Amounts
Obligor Loans Principal Interest End of Year Overdue
- --------------------- ---------------- ----------------------------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Various $ 720 $ 13 $ 2 $ 381 $ 381
-15- 11-K-19
</TABLE>
<PAGE>
Exhibits
--------
Exhibits are listed in the Index to Exhibits appearing on page E-1.
Signatures
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the employee benefit plan) have duly
caused this annual report to be signed on its behalf by the undersigned
thereunto duly authorized.
SAVINGS AND INVESTMENT PLUS PLAN
Date: June 29, 1998 By: /s/ Stewart M. Beltz
--------------------
Stewart M. Beltz
Plan Administrator
11-K-20
<PAGE>
Index to Exhibits
Method of
Number Description Filing
23 Consent of Filed herewith
Independent
Accountants
-E-1-
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statement on Form S-8 (No. 33-51791) of CIGNA Corporation of our report dated
June 12, 1998, appearing on page 11-K-5 of this Form 11-K.
/s/ PRICE WATERHOUSE LLP
Philadelphia, Pennsylvania
June 26, 1998
-E-2-
