-----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, Cb5Qo5Ylw9ZnXC6Kgnicxz71S1oNQLLDj5afDsY/tU6atv7ASjj26PM9hgV+B0Iw tUaCT/qdhuYwczxgl0jzXA== 0000893220-95-000622.txt : 19951004 0000893220-95-000622.hdr.sgml : 19951004 ACCESSION NUMBER: 0000893220-95-000622 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951002 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19951003 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: 95578297 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 OCTOBER 2, 1995 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) OCTOBER 2, 1995 --------------- 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 October 2, 1995, 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: October 2, 1995 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 October 2, 1995
-2- EX-20 2 CIGNA NEWS RELEASE 1 NEWS RELEASE [CIGNA LOGO] EXHIBIT 20 For Release: IMMEDIATE One Liberty Place 1650 Market Street P.O. Box 7716 Philadelphia, PA 19192-1550 (215) 761-1000 Contact: Michael J. Monroe, Media Relations -- 215-761-6133 Robert W. Sullivan, Financial Relations -- 215-761-6130 CIGNA CORPORATION ANNOUNCES PLANS TO STRENGTHEN RESERVES BY $1.2 BILLION AND RESTRUCTURE DOMESTIC PROPERTY AND CASUALTY OPERATIONS Philadelphia, PA, October 2, 1995 -- CIGNA Corporation announced today that it will increase net reserves for asbestos and environmental (A&E) claims and other exposures by $1.2 billion in conjunction with a restructuring of its domestic property and casualty companies (CIGNA P&C). The reserve actions will result in a charge to earnings of approximately $750 million (after-tax) in the third quarter.(1) The reserve strengthening and restructuring are designed to significantly reduce the uncertainty associated with A&E exposures, improve operating results and better position CIGNA P&C for future growth, the Company said. The capital required to implement the restructuring and reserve strengthening will be provided by internally available resources. "These actions position us very well for the future," said Wilson H. Taylor, CIGNA Chief Executive Officer. "We have addressed the reserve issue for both asbestos and environmental claims and, at the same time, restructured CIGNA P&C into two distinct operations -- one concentrating on profitable growth, free of the uncertainty associated with A&E exposures, and the other ensuring that policyholder obligations for run-off policies are secure and properly managed. We believe that this comprehensive approach will contribute to improved future financial results," he added. - ---------------------- (1) Third quarter earnings release scheduled for October 31, 1995. 2 Page 2 The $1.2 billion addition to net reserves, which is based on extensive internal analysis and information developed by two nationally recognized independent actuarial firms -- Milliman and Robertson, Inc., retained by CIGNA, and Tillinghast Associates, retained by the Commonwealth of Pennsylvania -- increases CIGNA's total A&E net reserves to approximately $1.9 billion. In the Company's judgement, these reserves reflect reasonable estimates of its future asbestos and environmental claims. The proposed CIGNA P&C restructuring, which is subject to regulatory approval, will establish two separate holding companies -- one managing the active ongoing operations and the other responsible for run-off operations, including asbestos and environmental claims. The restructuring and reserve plans have been discussed extensively with CIGNA's domiciliary state regulators and with major rating agencies. CIGNA expects to obtain regulatory approvals to implement the restructuring plan in the fourth quarter. The active company will be comprised of the existing domestic P&C specialist organization that has been concentrating on profitable niche markets. Assuming the restructuring plan had been in place on June 30, 1995, the active domestic P&C operation would have had statutory assets of approximately $5.2 billion. Over the past several years, management has strengthened aggressively the underwriting quality of these operations; improved the mix of business; restructured the producer force; reduced exposures to major catastrophes; and significantly reduced expenses. As announced earlier, a charge of approximately $75 million (pre-tax) will be taken in the third quarter to reflect additional planned cost reduction initiatives. "The active operation will have a strong balance sheet, appropriate reserves and excellent profit potential," said Gerald A. Isom, President of CIGNA P&C. "Further, we are committed to providing superior service at competitive prices in our selected markets. Our run-off operation is very well capitalized and very strongly staffed." 3 Page 3 The active domestic P&C operation will continue to have three primary profit centers: Special Risk Facilities, which focuses on U.S.-based large risks; Specialty Insurance Services, which serves clients that have unique or specialized needs; and Commercial Insurance Services, which specializes in serving segments of the standard commercial market. Assuming the effect of the restructuring plan, as of June 30, 1995, the inactive operation would have had statutory assets of approximately $7.0 billion, which would be sufficient to cover future claims, including asbestos and environmental, CIGNA said. "In addition to a sound financial position, the run-off operation has a strong management team focused on meeting the obligations to policyholders, handling claims and settlements, identifying and controlling exposures, collecting reinsurance and other recoverables, and conserving and enhancing its asset base," Mr. Isom added. The run-off operations will no longer accept new business. CIGNA Corporation had consolidated assets of approximately $92 billion and shareholder equity of approximately $6.8 billion as of June 30, 1995. CIGNA's businesses rank among the largest health care, insurance and financial services organizations in the United States, and also include one of the largest U.S.-based international insurance organizations. :mn/509150-4 -----END PRIVACY-ENHANCED MESSAGE-----