-----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, Xlnf6J6f4v3fjkH1zpt9p44o0K4ae8KvKUoLzjVUZL/QfKAHjHhZzeTpbKWxNnyD KoW8fHUjrqhRKtv630Cfdw== 0000950133-94-000157.txt : 19940802 0000950133-94-000157.hdr.sgml : 19940802 ACCESSION NUMBER: 0000950133-94-000157 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940801 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19940801 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: 94541123 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 CURRENT REPORT FOR CIGNA CORPORATION 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) AUGUST 1, 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 August 1, 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: August 1, 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 August 1, 1994
-2- EX-20 2 CIGNA SECOND QUARTER RESULTS 1 (CIGNA PRESS 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 SECOND QUARTER 1994 RESULTS PHILADELPHIA, AUGUST 1, 1994 -- CIGNA Corporation (NYSE:CI) today reported second quarter 1994 consolidated net income of $135 million ($1.86 per share), compared with $88 million ($1.22 per share) a year ago. For the first half of 1994, consolidated net income was $249 million ($3.44 per share), compared with $134 million ($1.86 per share) a year ago. OPERATING INCOME* Operating income for the second quarter of 1994 was $120 million, an improvement of $51 million over the $69 million reported for the comparable period of 1993. For the first six months of 1994, operating income was $220 million versus $85 million in 1993. "We are pleased with the continued strong performance of our health, pension and life businesses. While property and casualty results remain weak, I expect recent initiatives 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 second quarter consolidated net income includes after-tax realized investment gains of $15 million ($0.21 per share), compared with gains of $19 million ($0.26 per share) for the same period of 1993. For the first six months of 1994, consolidated net income included after-tax investment gains of $29 million ($0.40 per share), compared with gains of $49 million ($0.68 per share) for the same period of 1993. REVENUES Consolidated revenues for the second quarter of 1994 were $4.5 billion, compared with $4.6 billion for 1993. For the first six months of 1994, consolidated revenues were $9.1 billion, versus $8.9 billion in 1993. ASSETS/SHAREHOLDERS' EQUITY Assets at June 30, 1994 were $84.3 billion, compared with $85.0 billion at year-end 1993. Shareholders' equity was $5.9 billion ($80.98 per share) at June 30, 1994, compared with $6.6 billion ($91.30 per share) at December 31, 1993. During the first six months of 1994, shareholders' equity decreased approximately $700 million due to upward movement in interest rates, which reduced the unrealized appreciation of securities carried at fair value. The new mark to market SFAS 115 requirement will result in fluctuations in shareholders' equity. SEGMENT RESULTS: EMPLOYEE LIFE AND HEALTH BENEFITS This segment, which includes CIGNA's indemnity and HMO operations, had operating income of $130 million in the second quarter of 1994. This compares with operating income of $104 3 - 3 - million in the second quarter of 1993. For the first six months of 1994, operating income was $249 million, compared with $175 million in 1993. For the second quarter of 1994, the operating income increase reflects improvements in both the indemnity and HMO operations. Indemnity improvements were primarily from favorable claim experience, reflecting lower medical cost inflation and improved group life insurance results. The HMO improvements were attributable to good membership growth and favorable medical cost experience. HMO medical membership grew by 64,000 to approximately 3.1 million enrollees in the second quarter of 1994, a 21% increase over second quarter 1993 levels. Year to date membership has grown by 427,000 enrollees. EMPLOYEE RETIREMENT AND SAVINGS BENEFITS This segment, which operates in the Defined Benefit and Defined Contribution retirement markets, had operating income of $44 million in the second quarter of both 1994 and 1993. For the first six months of 1994, operating income was $92 million, compared with $88 million in 1993. This operation continues to produce strong results. Assets under management at June 30, 1994 were $33.4 billion, an increase of 2 percent from $32.8 billion as of June 30, 1993. 4 - 4 - INDIVIDUAL FINANCIAL SERVICES This segment, which includes individual and corporate-owned life insurance, life and health reinsurance, and annuity businesses, had operating income of $37 million in the second quarter of 1994. This compares with operating income of $26 million in the second quarter of 1993. For the first six months of 1994, operating income was $63 million, compared with $53 million in 1993. The second quarter 1994 improvement was principally attributable to improved interest margins and favorable mortality. PROPERTY AND CASUALTY This segment, which includes Domestic, International and Reinsurance operations, had an operating loss of $67 million in the second quarter of 1994, compared with an operating loss of $79 million for the same period in 1993. For the first six months of 1994, the operating loss was $161 million, compared with $182 million in 1993. The second quarter 1994 moderation in losses was primarily attributable to improved International results and lower catastrophe losses. The second quarter and six months of 1994 included after-tax catastrophe losses of $3 million and $88 million, respectively. This compares with losses of $10 million and $64 million for the respective periods of 1993. 5 - 5 - The GAAP combined operating ratio after policyholders' dividends was 123 and 128 for the second quarter and six months of 1994, compared with 125 and 128 for the comparable periods 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 an operating loss of $24 million in the second quarter of 1994. This compares with an operating loss of $26 million in the second quarter of 1993. For the first six months of 1994, the operating loss was $23 million, compared with a loss of $49 million in 1993. The first quarter of 1994 included a $20 million after-tax gain from the sale of CIGNA's California personal automobile and homeowners businesses. 6 CIGNA CORPORATION COMPARATIVE SUMMARY OF FINANCIAL RESULTS (Dollars in millions, except per share amounts)
- --------------------------------------------------------------------------------------------------------------------- THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 1994 1993 1994 1993 ===================================================================================================================== REVENUES Premiums and fees $ 3,444 $ 3,493 $ 6,810 $ 6,754 Net investment income 968 949 1,960 1,907 Other revenues 103 109 255 233 Realized investment gains 23 12 44 43 - --------------------------------------------------------------------------------------------------------------------- Total $ 4,538 $ 4,563 $ 9,069 $ 8,937 - ------------------------------------------------------=============================================================== NET INCOME (LOSS) BY SEGMENT Employee Life and Health Benefits $ 136 $ 111 $ 261 $ 203 Employee Retirement and Savings Benefits 49 36 95 72 Individual Financial Services 41 18 69 40 Property and Casualty: Operations (35) (21) (71) (52) Asbestos and Environmental Losses (32) (24) (76) (72) -------- -------- -------- -------- Total Property and Casualty (67) (45) (147) (124) Other Operations (24) (32) (29) (57) - --------------------------------------------------------------------------------------------------------------------- NET INCOME $ 135 $ 88 $ 249 $ 134 - ------------------------------------------------------=============================================================== SHAREHOLDERS' EQUITY at June 30 $ 5,850 $ 5,805 - ----------------------------------------------------------------------------------------------======================= WEIGHTED AVERAGE SHARES OUTSTANDING (thousands) 72,398 72,040 72,299 71,965 - ------------------------------------------------------=============================================================== PER SHARE: Net income $ 1.86 $ 1.22 $ 3.44 $ 1.86 - ------------------------------------------------------=============================================================== Shareholders' Equity at June 30 $ 80.98 $ 80.66 - ----------------------------------------------------------------------------------------------======================= PROPERTY AND CASUALTY STATISTICS (GAAP) Net written premiums $ 936 $ 1,026 $ 1,907 $ 2,099 Earned premiums $ 1,028 $ 1,118 $ 2,002 $ 2,176 Underwriting ratios: Loss and loss adjustment expense 86.0% 84.5% 90.3% 88.6% Underwriting expense 35.7% 38.0% 36.2% 37.2% - --------------------------------------------------------------------------------------------------------------------- Combined ratio 121.7% 122.5% 126.5% 125.8% - ------------------------------------------------------=============================================================== Combined after policyholders' dividends 122.6% 124.6% 127.5% 128.4% - ------------------------------------------------------=============================================================== Pre-tax catastrophe losses $ 5 $ 15 $ 135 $ 98 - ------------------------------------------------------===============================================================
7 CIGNA CORPORATION SUPPLEMENTAL FINANCIAL INFORMATION (Dollars in millions, except per share amounts) For informational purposes, the following information presents operating income, which is defined as net income excluding after-tax realized investment results. The information presented in this manner does not conform with Generally Accepted Accounting Principles.
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 1994 1993 1994 1993 ====================================================================================================================== OPERATING INCOME (LOSS) BY SEGMENT Employee Life and Health Benefits: Indemnity $ 80 $ 72 $ 140 $ 107 HMOs 50 32 109 68 --------- --------- --------- --------- 130 104 249 175 Employee Retirement and Savings Benefits 44 44 92 88 Individual Financial Services 37 26 63 53 Property and Casualty Operations (35) (55) (85) (110) Asbestos and Environmental Losses (32) (24) (76) (72) --------- --------- --------- --------- Total Property and Casualty (67) (79) (161) (182) Other Operations (24) (26) (23) (49) - ---------------------------------------------------------------------------------------------------------------------- Total $ 120 $ 69 $ 220 $ 85 - ---------------------------------------------------------------------------------------------------------------------- AFTER-TAX REALIZED INVESTMENT GAINS (LOSSES) BY SEGMENT Employee Life and Health Benefits $ 6 $ 7 $ 12 $ 28 Employee Retirement and Savings Benefits 5 (8) 3 (16) Individual Financial Services 4 (8) 6 (13) Property and Casualty - 34 14 58 Other Operations - (6) (6) (8) - ---------------------------------------------------------------------------------------------------------------------- Total 15 19 29 49 - ---------------------------------------------------------------------------------------------------------------------- NET INCOME $ 135 $ 88 $ 249 $ 134 - ------------------------------------------------------================================================================ PER SHARE: Operating income $ 1.65 $ 0.96 $ 3.04 $ 1.18 After-tax realized investment gains 0.21 0.26 0.40 0.68 - ---------------------------------------------------------------------------------------------------------------------- Net income $ 1.86 $ 1.22 $ 3.44 $ 1.86 - ------------------------------------------------------================================================================
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