-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, K7lDfrb3LT79uX7bntmIV7UGeFlkkV5EEa2+HotxrCqAroeaBk6HbYOxUo8+U5YR iUBdJa/esmFV7ppq9Wl3cw== 0000893220-94-000241.txt : 19940513 0000893220-94-000241.hdr.sgml : 19940513 ACCESSION NUMBER: 0000893220-94-000241 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940502 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19940503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIGNA CORP CENTRAL INDEX KEY: 0000701221 STANDARD INDUSTRIAL CLASSIFICATION: 6331 IRS NUMBER: 061059331 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08323 FILM NUMBER: 94525881 BUSINESS ADDRESS: STREET 1: ONE LIBERTY PL 1650 MARKET ST STREET 2: P O BOX 7716 CITY: PHILADELPHIA STATE: PA ZIP: 19192-1550 BUSINESS PHONE: 2157611000 8-K 1 FORM 8-K DATED MAY 2, 1994 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) DELAWARE 1-8323 06-1059331 -------- ------ ---------- (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 ------------------------------------------------------ (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) 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
Method of Number Description Filing - - ------ ----------- -------- 20 CIGNA Corporation Filed herewith. news release dated May 2, 1994
-2- EX-20 2 NEWS RELEASE RE CIGNA 1994 1ST QUARTER RESULTS 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. 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. 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. 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. 5 CIGNA CORPORATION (CIGNA LOGO) COMPARATIVE SUMMARY OF FINANCIAL RESULTS (Dollars in millions, except per share amounts)
- - --------------------------------------------------------------------------- Three Months Ended March 31, 1994 1993 =========================================================================== 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 - - ------------------------------------------------------=====================
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