-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T+iYH/WFKEaqJ4wndTffW4MQXHUWb5BHKyDIwiQVDP1uZwwM3lmcACarNZcLOajT vScCIhynXWXMlXyV8Pq0dg== 0000893220-96-000666.txt : 19960502 0000893220-96-000666.hdr.sgml : 19960502 ACCESSION NUMBER: 0000893220-96-000666 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960430 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960501 SROS: NYSE SROS: PHLX SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CIGNA CORP CENTRAL INDEX KEY: 0000701221 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [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: 96554570 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 APRIL 30, 1996 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) APRIL 30, 1996 -------------- 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 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 ------------------------------- Gary A. Swords Vice President and Chief Accounting Officer Index to Exhibits -----------------
Number Description Method of Filing - ------ ----------- ---------------- 20 CIGNA Corporation Filed herewith. news release dated April 30, 1996
-2- EX-20 2 CIGNA CORPORATION NEWS RELEASE DATED 4/30/96 1 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. 2 - 2 - 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 3 - 3 - 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 4 - 4 - 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. ### 5 CIGNA CORPORATION COMPARATIVE SUMMARY OF FINANCIAL RESULTS (Dollars in millions, except per share amounts) [CIGNA LOGO]
==================================================================================================================================== THREE MONTHS ENDED MARCH 31, 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums and fees $ 3390 $ 3418 Net investment income 1083 1027 Other revenues 142 127 Realized investment gains 30 182 - ------------------------------------------------------------------------------------------------------------------------------------ Total $ 4645 $ 4754 - ---------------------------------------------------------------------------------------------------================================= OPERATING INCOME (LOSS) BY SEGMENT (1) Employee Life and Health Benefits: Indemnity operations $ 56 $ 47 HMO operations 56 57 ------------- ------------ 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 ------------- ------------ Ongoing operations 41 4 Run-off operations 1 (23) ------------- ------------ Total Property and Casualty 42 (19) Other Operations (18) (19) - ------------------------------------------------------------------------------------------------------------------------------------ Total $ 219 $ 146 - ---------------------------------------------------------------------------------------------------================================= NET INCOME (LOSS) BY SEGMENT Employee Life and Health Benefits: Indemnity operations $ 54 $ 128 HMO operations 56 57 ------------- ------------ 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 ------------- ------------ Ongoing operations 53 53 Run-off operations (3) (27) ------------- ------------ Total Property and Casualty 50 26 Other Operations (17) (5) - ------------------------------------------------------------------------------------------------------------------------------------ Total $ 238 $ 290 - ---------------------------------------------------------------------------------------------------================================= SHAREHOLDERS' EQUITY at March 31 $ 6863 $ 6187 - ---------------------------------------------------------------------------------------------------================================= WEIGHTED AVERAGE SHARES OUTSTANDING (thousands) 76,886 72,441 - ---------------------------------------------------------------------------------------------------================================= PRIMARY EARNINGS PER SHARE: Operating income (1) $ 2.85 $ 2.02 After-tax realized investment gains 0.25 1.98 - ------------------------------------------------------------------------------------------------------------------------------------ Net income $ 3.10 $ 4.00 - ---------------------------------------------------------------------------------------------------================================= Shareholders' equity per share at March 31 $ 89.74 $ 85.45 - ---------------------------------------------------------------------------------------------------=================================
(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. -----END PRIVACY-ENHANCED MESSAGE-----