Delaware
(State or other jurisdiction of incorporation)
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1-08323
(Commission File Number)
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06-1059331
(IRS Employer
Identification No.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communication pursuant to Rule 13e-49(c) under the Exchange Act (17 CFR 240.13e-4(c))
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CIGNA CORPORATION
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Date: May 3, 2012
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By: /s/ Ralph J. Nicoletti
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Ralph J. Nicoletti
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Executive Vice President and
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Chief Financial Officer
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(Principal Financial Officer)
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Number
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Description
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Method of Filing
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99.1
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Furnished herewith.
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NEWS RELEASE
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![]() |
Contact:
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Ted Detrick, Investor Relations – (215) 761-1414
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o
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Consolidated operating revenues1 increased 27% to $6.9 billion in the first quarter.
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o
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o
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Total revenues increased 25% to $6.8 billion and shareholders’ net income1 was $371 million, or $1.28 per share.
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o
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Cigna grew its medical customer base by 1.2 million people in the first quarter.
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o
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Three Months Ended
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||||||||||||
March 31,
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December 31,
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|||||||||||
2012
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2011
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2011
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||||||||||
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||||||||||
Total Revenues
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$ | 6,788 | $ | 5,411 | $ | 5,460 | ||||||
Consolidated Earnings
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||||||||||||
Adjusted income from operations1
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$ | 359 | $ | 359 | $ | 293 | ||||||
Net realized investment gains (losses), net of taxes
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12 | 17 | 4 | |||||||||
GMIB results, net of taxes5
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41 | 13 | 7 | |||||||||
Special items, net of taxes4
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(41 | ) | 24 | (31 | ) | |||||||
Shareholders' net income1
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$ | 371 | $ | 413 | $ | 273 | ||||||
Adjusted income from operations1, per share
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$ | 1.24 | $ | 1.31 | $ | 1.05 | ||||||
Shareholders' net income1, per share
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$ | 1.28 | $ | 1.51 | $ | 0.98 | ||||||
As of the periods ended:
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||||||||||||
Medical Customers
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||||||||||||
Health Care
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12,660 | 11,422 | 11,483 | |||||||||
International (Expatriate and Health Care)
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1,205 | 1,110 | 1,197 | |||||||||
Total medical customers
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13,865 | 12,532 | 12,680 | |||||||||
·
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Cash and short term investments at the parent company were approximately $520 million at March 31, 2012 and $3.8 billion at December 31, 2011. The year-end 2011 balance included amounts to fund the HealthSpring acquisition that closed on January 31, 2012.
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Three Months Ended
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||||||||||||
March 31,
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December 31,
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|||||||||||
2012
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2011
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2011
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||||||||||
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||||||||||
Premiums and Fees
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$ | 4,501 | $ | 3,311 | $ | 3,320 | ||||||
Adjusted Income from Operations1
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$ | 262 | $ | 246 | $ | 216 | ||||||
Adjusted Margin, After-Tax7
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5.2 | % | 6.5 | % | 5.6 | % | ||||||
Customers:
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||||||||||||
Commercial
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12,226 | 11,378 | 11,439 | |||||||||
Medicare and Medicaid
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434 | 44 | 44 | |||||||||
Medical
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12,660 | 11,422 | 11,483 | |||||||||
Behavioral Care9
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19,803 | 17,716 | 18,344 | |||||||||
Dental
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11,279 | 10,745 | 10,884 | |||||||||
Pharmacy
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6,584 | 6,205 | 6,368 | |||||||||
Medicare Part D
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1,268 | 545 | 538 |
·
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Overall, Health Care results reflect continued growth in our targeted customer segments and two months of results for HealthSpring, which was acquired on January 31, 2012.
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·
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First quarter premiums and fees increased approximately 36% relative to first quarter 2011, due to the impact of the HealthSpring acquisition, business growth, rate increases, and increased specialty penetration, partially offset by current medical business mix, reflecting a continued shift by clients to our Administrative Services Only (“ASO”) solutions.
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·
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First quarter 2012 adjusted income from operations1 reflect continued growth in targeted medical and specialty businesses, and favorable prior year claim development of approximately $38 million after-tax, compared to $22 million after-tax of favorable development in first quarter 2011, as well as targeted strategic investments in support of our customer growth, service capabilities, and ongoing efficiency programs.
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·
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Health Care medical claims payable8 was approximately $1.5 billion at March 31, 2012 and $900 million at December 31, 2011. The March 31, 2012 balance included the impact of the HealthSpring acquisition.
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Three Months Ended
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||||||||||||
March 31,
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December 31,
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|||||||||||
2012
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2011
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2011
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||||||||||
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||||||||||
Premiums and Fees
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$ | 866 | $ | 698 | $ | 790 | ||||||
Adjusted Income from Operations1
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$ | 80 | $ | 61 | $ | 42 | ||||||
8.9 | % | 8.4 | % | 5.1 | % | |||||||
As of the periods ended:
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||||||||||||
Medical Customers – Expatriate and Health Care
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1,205 | 1,110 | 1,197 | |||||||||
Health, Life and Accident Policies (excluding China JV)
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8,845 | 6,118 | 8,716 |
·
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International segment revenue and earnings reflect strong premium and fee growth of 24%, driven by attractive customer retention and business growth from sales in targeted markets within our individual Health, Life and Accident and Global Health Benefits businesses.
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·
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First quarter 2012 earnings also include a benefit of $8 million after-tax related to the implementation of a capital management strategy.
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·
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Effective January 1, 2012, Cigna retrospectively adopted amended accounting rules for costs related to the acquisition or renewal of insurance contracts (“deferred policy acquisition costs”). Prior period amounts have been presented on a comparable basis.
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Three Months Ended
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||||||||||||
March 31,
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December 31,
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|||||||||||
2012
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2011
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2011
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||||||||||
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||||||||||
Premiums and Fees
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$ | 743 | $ | 688 | $ | 677 | ||||||
Adjusted Income from Operations1
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$ | 65 | $ | 77 | $ | 55 | ||||||
Adjusted Margin, After-Tax7
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8.0 | % | 10.2 | % | 7.4 | % |
·
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First quarter 2012 results benefited from strong premium and fee growth, including an 8% increase in disability premiums and fees.
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·
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Adjusted income from operations1 for the first quarter of 2012 declined compared with the first quarter of 2011, due to the absence of a favorable $6 million after-tax impact related to a reserve study in the first quarter of 2011, as well as strategic investments in our disability management programs that deliver sustained value for our clients.
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Three Months Ended
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March 31,
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December 31,
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2012
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2011
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2011
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Run-off Reinsurance
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$ | (11 | ) | $ | - | $ | (1 | ) | ||||
Other Operations
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$ | 20 | $ | 19 | $ | 21 | ||||||
Corporate
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$ | (57 | ) | $ | (44 | ) | $ | (40 | ) |
·
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·
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Cigna now estimates full year 2012 consolidated adjusted income from operations1,3 to be in the range of $1.52 billion to $1.63 billion, or $5.20 to $5.55 per share. This outlook reflects expected continued solid execution of our strategy resulting in strong organic growth, expected increase in medical services utilization during 2012, and contributions from the acquisition of HealthSpring.
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(dollars in millions, except per share amounts)
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Full-Year Ended
December 31, 2012
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Health Care
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$
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1,190 to 1,260
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International
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265 to 285
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Disability and Life
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260 to 280
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Ongoing Businesses
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$
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1,715 to 1,825
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Run-off Reinsurance, Other Operations and Corporate
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(195) to (195)
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Consolidated
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$
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1,520 to 1,630
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$
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5.20 to 5.55
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Health Care medical customer growth, including medical customers acquired from HealthSpring
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growth of approximately
1.2 million
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·
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Cigna’s earnings and earnings per share outlooks exclude the potential effects of future capital deployment6.
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·
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Cigna's earnings and earnings per share outlooks assume break-even results for VADBe2 for the remainder of 2012, which assumes that actual experience, including capital market performance, will be consistent with long term reserve assumptions. See the Critical Accounting Estimates section of the Management’s Discussion and Analysis of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 for more information on the effect of capital market assumption changes in shareholders’ net income.
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Cigna measures the financial results of its segments using segment earnings (loss), which is defined as shareholders’ net income (loss) before net realized investment results. Adjusted income (loss) from operations is defined as segment earnings (loss) excluding special items (which are identified and quantified in Note 4) and excludes results of Cigna's GMIB business. Adjusted income (loss) from operations is a measure of profitability used by Cigna’s management because it presents the underlying results of operations of Cigna’s businesses and permits analysis of trends in underlying revenue, expenses and shareholders’ net income. Cigna's Consolidated Operating Revenues exclude hedge gains (losses) from the Run-off Reinsurance business and net realized investment results. This measure is used by Cigna's management because it presents the underlying revenue of Cigna's operating businesses. These measures are not determined in accordance with generally accepted accounting principles (GAAP) and should not be viewed as a substitute for the most directly comparable GAAP measures, which are segment earnings (loss), shareholders’ net income and segment revenues; see Exhibits 1 and 2 for a reconciliation of the Non-GAAP measures to the most directly comparable GAAP measures.
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(Dollars in millions, except per share amounts)
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2012
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2012
EPS
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2011
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2011
EPS
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% EPS
Change
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|||||||||||||||
Shareholders’ net income, as reported
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$ | 371 | $ | 413 | ||||||||||||||||
Effect of GMIB
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(41 | ) | (13 | ) | ||||||||||||||||
Effect of Special items, after-tax
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41 | (24 | ) | |||||||||||||||||
Effect of VADBe
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11 | - | ||||||||||||||||||
Shareholders’ net income as adjusted
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$ | 382 | $ | 1.32 | $ | 376 | $ | 1.37 | (4 | %) | ||||||||||
Effect of net realized investment gains
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(12 | ) | (17 | ) | ||||||||||||||||
Adjusted income from operations1 excluding VADBe
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$ | 370 | $ | 1.28 | $ | 359 | $ | 1.31 | (2 | %) |
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The Guaranteed Minimum Income Benefits (GMIB) business and Guaranteed Minimum Death Benefits business, also known as Variable Annuity Death Benefits (VADBe), are included in our Run-off Reinsurance operations. These businesses have been in run-off since 2000.
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Information is not available for management to (1) reasonably estimate future net realized investment gains (losses) or (2) reasonably estimate future GMIB business results due in part to interest rate and stock market volatility and other internal and external factors; therefore it is not possible to provide a forward-looking reconciliation of adjusted income from operations to shareholders’ income from continuing operations. We expect that special items for 2012 will include HealthSpring, Inc. acquisition costs and may also include potential adjustments associated with litigation and assessment related items. Other than these items, information is not available for management to identify, or reasonably estimate additional 2012 special items.
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Special items included in shareholders’ net income and segment earnings (loss), but excluded from adjusted income (loss) from operations, and the calculation of adjusted margins include:
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·
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After-tax loss of $28 million related to transaction costs for the 2012 acquisition of HealthSpring, Inc., (“HealthSpring”).
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·
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After-tax loss of $13 million related to a litigation matter.
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After-tax loss of $28 million related to transaction costs for the 2012 acquisition of HealthSpring and after-tax loss of $3 million related to transaction costs for the 2011 acquisition of FirstAssist Group Holdings Limited (“FirstAssist”).
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After-tax benefit of $24 million related to the completion of an IRS examination.
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The application of the FASB’s fair value disclosure and measurement guidance (ASC 820-10), which impacts reinsurance contracts covering GMIB, does not represent management's expectation of the ultimate payout. Changes in underlying contract holder account values, interest rates, stock market volatility, and other factors may result in changes to the fair value assumptions, and/or amount that will be required to ultimately settle the Company’s obligations, which could result in a material adverse or favorable impact on the Run-off Reinsurance segment and Cigna's results of operations.
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Share repurchases may from time to time be made pursuant to written trading plans under Rule 10b5-1, which permit shares to be repurchased when Cigna might otherwise be precluded from doing so under insider trading laws or because of self-employed trading blackout periods.
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Adjusted margins in this press release are calculated by dividing adjusted income from operations1 by segment revenues. Segment margins including special items were 4.8% for Health Care for the three months ended March 31, 2012, 6.5% for Health Care and 10.9% for Disability and Life for the three months ended March 31, 2011 and 4.8% for International for the three months ended December 31, 2011.
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Health Care medical claims payable are presented net of reinsurance and other recoverables. The gross Health Care medical claims payable balance was $1,698 million as of March 31, 2012 and $1,095 million as of December 31, 2011.
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Behavioral Care customers in Health Care has been redefined for all periods presented to exclude certain wellness programs.
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1.
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increased medical costs that are higher than anticipated in establishing premium rates in the Company’s Health Care operations, including increased use and costs of medical services;
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2.
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increased medical, administrative, technology or other costs resulting from new legislative and regulatory requirements imposed on the Company’s businesses;
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3.
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challenges and risks associated with implementing operational improvement initiatives and strategic actions in the ongoing |
operations of the businesses, including those related to: (i) growth in targeted geographies, product lines, buying segments and distribution channels, (ii) offering products that meet emerging market needs, (iii) strengthening underwriting and pricing effectiveness, (iv) strengthening medical cost results and a growing medical customer base, (v) delivering quality service to customers and health care professionals using effective technology solutions, and (vi) lowering administrative costs; | |
4.
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adverse changes in state, federal and international laws and regulations, including health care reform legislation and regulation that could, among other items, affect the way the Company does business, increase costs, limit the ability to effectively estimate, price for and manage medical costs, and affect the Company’s products, services, market segments, technology and processes;
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5.
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the ability to successfully complete the integration of acquired businesses, including the acquired HealthSpring businesses by, among other things, operating Medicare Advantage coordinated care plans and HealthSpring’s prescription drug plan, retaining and growing the customer base, realizing revenue, expense and other synergies, renewing contracts on competitive terms, successfully leveraging the information technology platform of the acquired businesses, and retaining key personnel;
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6.
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the ability of the Company to execute its growth plans by successfully leveraging its capabilities and those of the businesses acquired in serving the Seniors segment and the Company’s other market segments, including through successful execution of the Company’s physician engagement strategy;
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7.
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the possibility that the acquired HealthSpring business may be adversely affected by economic, business and/or competitive factors, or by federal and/or state regulation, including health care reform, reductions in funding levels for Medicare programs, and potential changes in risk adjustment data validation audit and payment adjustment methodology;
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8.
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risks associated with pending and potential state and federal class action lawsuits, disputes regarding reinsurance arrangements, other litigation and regulatory actions challenging the Company’s businesses, including disputes related to payments to health care professionals, government investigations and proceedings, tax audits and related litigation, and regulatory market conduct and other reviews, audits and investigations;
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9.
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heightened competition, particularly price competition, that could reduce product margins and constrain growth in the Company’s businesses, primarily the Health Care business;
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10.
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risks associated with the Company’s mail order pharmacy business that, among other things, include any potential operational deficiencies or service issues as well as loss or suspension of state pharmacy licenses;
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11.
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significant changes in interest rates or sustained deterioration in the commercial real estate markets;
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12.
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downgrades in the financial strength ratings of the Company’s insurance subsidiaries, that could, among other things, adversely affect new sales and retention of current business; downgrades in financial strength ratings of reinsurers, that could result in increased statutory reserves or capital requirements of the Company’s insurance subsidiaries;
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13.
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limitations on the ability of the Company’s insurance subsidiaries to dividend capital to the parent company as a result of downgrades in the subsidiaries’ financial strength ratings, changes in statutory reserve or capital requirements or other financial constraints;
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14.
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inability of the hedge programs adopted by the Company to substantially reduce equity market and certain interest rate risks in the run-off reinsurance operations;
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15.
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adjustments to the reserve assumptions (including lapse, partial surrender, mortality, interest rates and volatility) used in estimating the Company’s liabilities for reinsurance contracts covering guaranteed minimum death benefits under certain variable annuities;
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16.
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adjustments to the assumptions (including interest rates, annuity election rates and amounts collectible from reinsurers) used in estimating the Company’s assets and liabilities for reinsurance contracts covering guaranteed minimum income benefits under certain variable annuities;
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17.
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significant stock market declines, that could, among other things, result in increased expenses for guaranteed minimum income benefit contracts, guaranteed minimum death benefit contracts and the Company’s pension plans in future periods as well as the recognition of additional pension obligations;
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18.
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significant deterioration in economic conditions and significant market volatility, that could have an adverse effect on the Company’s operations, investments, liquidity and access to capital markets;
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19.
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significant deterioration in economic conditions and significant market volatility, that could have an adverse effect on the businesses of our customers (including the amount and type of health care services provided to their workforce, loss in workforce and our customers' ability to pay their obligations) and our vendors (including their ability to provide services);
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20.
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amendments to income tax laws, that could affect the taxation of employer provided benefits, the taxation of certain insurance products such as corporate-owned life insurance, or the financial decisions of individuals whose variable annuities are covered under reinsurance contracts issued by the Company;
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21.
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potential public health epidemics, pandemics, natural disasters and bio-terrorist activity, that could, among other things, cause the Company’s covered medical and disability expenses, pharmacy costs and mortality experience to rise significantly, and cause operational disruption, depending on the severity of the event and number of individuals affected;
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22.
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risks associated with security or interruption of information systems, that could, among other things, cause operational disruption;
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23.
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challenges and risks associated with the successful management of the Company’s outsourcing projects or key vendors; and
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24.
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the unique political, legal, operational, regulatory and other challenges associated with expanding our business globally.
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CIGNA CORPORATION
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||||||||
COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited)
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||||||||
(Dollars in millions, except per share amounts)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
2012
|
2011
|
|||||||
REVENUES
|
||||||||
Premiums and fees
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$ | 6,141 | $ | 4,733 | ||||
Net investment income
|
288 | 279 | ||||||
Mail order pharmacy revenues
|
386 | 339 | ||||||
Other revenues
|
55 | 74 | ||||||
Total operating revenues
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6,870 | 5,425 | ||||||
Run-off Reinsurance hedge losses (1)
|
(95 | ) | (40 | ) | ||||
Net realized investment gains
|
13 | 26 | ||||||
Total
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$ | 6,788 | $ | 5,411 | ||||
ADJUSTED INCOME (LOSS) FROM OPERATIONS (2)
|
||||||||
Health Care
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$ | 262 | $ | 246 | ||||
International
|
80 | 61 | ||||||
Disability and Life
|
65 | 77 | ||||||
Run-off Reinsurance
|
(11 | ) | - | |||||
Other Operations
|
20 | 19 | ||||||
Corporate
|
(57 | ) | (44 | ) | ||||
Total
|
$ | 359 | $ | 359 | ||||
SHAREHOLDERS' NET INCOME
|
||||||||
Segment Earnings (Losses)
|
||||||||
Health Care (3)(4)(5)
|
$ | 242 | $ | 247 | ||||
International
|
80 | 61 | ||||||
Disability and Life (5)
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65 | 82 | ||||||
Run-off Reinsurance
|
30 | 13 | ||||||
Other Operations (5)
|
20 | 23 | ||||||
Corporate (3)(5)
|
(78 | ) | (30 | ) | ||||
Total
|
359 | 396 | ||||||
Net realized investment gains, net of taxes
|
12 | 17 | ||||||
Shareholders' net income
|
$ | 371 | $ | 413 | ||||
DILUTED EARNINGS PER SHARE:
|
||||||||
Adjusted income from operations (2)
|
$ | 1.24 | $ | 1.31 | ||||
Results of guaranteed minimum income benefits business, after-tax
|
0.14 | 0.05 | ||||||
Net realized investment gains, net of taxes
|
0.04 | 0.06 | ||||||
Special item(s), after-tax (3)(4)(5)
|
(0.14 | ) | 0.09 | |||||
Shareholders' net income
|
$ | 1.28 | $ | 1.51 | ||||
Weighted average shares (in thousands)
|
288,999 | 273,873 | ||||||
SHAREHOLDERS' EQUITY at March 31,:
|
$ | 8,561 | $ | 6,715 | ||||
SHAREHOLDERS' EQUITY PER SHARE at March 31,: | $ | 29.69 | $ | 24.81 | ||||
Effective January 1, 2012, Cigna adopted, as required, amended accounting guidance for deferred policy acquisition costs by selecting retrospective adjustment of prior periods.
|
||||||||
The financial results of HealthSpring are aggregated with the Health Care segment from the date of acquisition, which was on January 31, 2012.
|
||||||||
(2) Adjusted income (loss) from operations is segment earnings (loss) (shareholders' net income (loss) before net realized investment gains (losses)) excluding results of Cigna's guaranteed minimum income benefits business and special items. See Exhibit 2 for a detailed reconciliation of adjusted income (loss) from operations to segment earnings (loss) and shareholders' net income presented in accordance with generally accepted accounting principles.
|
||||||||
- After-tax benefit of $1 million in Health Care; after-tax benefit of $5 million in Disability and Life; after-tax benefit of $4 million (includes a pre-tax charge of $9 million offset by a tax benefit of $13 million) in Other Operations and an after-tax benefit of $14 million in Corporate.
|
||||||||
CIGNA CORPORATION
|
||||||||||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (unaudited)
|
Exhibit 2 | |||||||||||||||||||||||||||||||
RECONCILIATION OF ADJUSTED INCOME (LOSS) FROM OPERATIONS TO SHAREHOLDERS' NET INCOME
|
||||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts)
|
||||||||||||||||||||||||||||||||
Diluted
|
||||||||||||||||||||||||||||||||
Earnings
|
||||||||||||||||||||||||||||||||
Per Share
|
Consolidated
|
Health Care
|
International
|
|||||||||||||||||||||||||||||
Three Months Ended March 31,
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||
Adjusted income (loss) from operations (1)
|
$ | 1.24 | $ | 1.31 | $ | 359 | $ | 359 | $ | 262 | $ | 246 | $ | 80 | $ | 61 | ||||||||||||||||
Results of guaranteed minimum income benefits business
|
0.14 | 0.05 | 41 | 13 | - | - | - | - | ||||||||||||||||||||||||
Special item(s), after-tax:
|
||||||||||||||||||||||||||||||||
Cost associated with HealthSpring acquisition (2)
|
(0.10 | ) | - | (28 | ) | - | (7 | ) | - | - | - | |||||||||||||||||||||
Cost associated with a litigation matter (3)
|
(0.04 | ) | - | (13 | ) | - | (13 | ) | - | - | - | |||||||||||||||||||||
Completion of IRS examination (4)
|
- | 0.09 | - | 24 | - | 1 | - | - | ||||||||||||||||||||||||
Segment earnings (loss)
|
1.24 | 1.45 | 359 | 396 | $ | 242 | $ | 247 | $ | 80 | $ | 61 | ||||||||||||||||||||
Net realized investment gains, net of taxes
|
0.04 | 0.06 | 12 | 17 | ||||||||||||||||||||||||||||
Shareholders' net income
|
$ | 1.28 | $ | 1.51 | $ | 371 | $ | 413 | ||||||||||||||||||||||||
Disability
|
Run-off
|
Other
|
||||||||||||||||||||||||||||||
and Life
|
Reinsurance
|
Operations
|
Corporate
|
|||||||||||||||||||||||||||||
Three Months Ended March 31,
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||
Adjusted income (loss) from operations (1)
|
$ | 65 | $ | 77 | $ | (11 | ) | $ | - | $ | 20 | $ | 19 | $ | (57 | ) | $ | (44 | ) | |||||||||||||
Results of guaranteed minimum income benefits business
|
- | - | 41 | 13 | - | - | - | - | ||||||||||||||||||||||||
Special item(s), after-tax:
|
||||||||||||||||||||||||||||||||
Cost associated with HealthSpring acquisition (2)
|
- | - | - | - | - | - | (21 | ) | - | |||||||||||||||||||||||
Cost associated with a litigation matter (3)
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Completion of IRS examination (4)
|
- | 5 | - | - | - | 4 | - | 14 | ||||||||||||||||||||||||
Segment earnings (loss)
|
$ | 65 | $ | 82 | $ | 30 | $ | 13 | $ | 20 | $ | 23 | $ | (78 | ) | $ | (30 | ) | ||||||||||||||
Diluted
|
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Earnings
|
||||||||||||||||
Per Share
|
Consolidated
|
Health Care
|
International
|
|||||||||||||
Three Months Ended December 31, 2011
|
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Adjusted income (loss) from operations (1)
|
$ | 1.05 | $ | 293 | $ | 216 | $ | 42 | ||||||||
Results of guaranteed minimum income benefits business | 0.03 | 7 | - | - | ||||||||||||
Special item(s), after-tax:
|
||||||||||||||||
Cost associated with acquisitions (5)
|
(0.11 | ) | (31 | ) | - | (3 | ) | |||||||||
Segment earnings (loss)
|
0.97 | 269 | $ | 216 | $ | 39 | ||||||||||
Net realized investment gains, net of taxes
|
0.01 | 4 | ||||||||||||||
Shareholders' net income
|
$ | 0.98 | $ | 273 |
Disability
|
Run-off
|
Other
|
||||||||||||||
and Life
|
Reinsurance
|
Operations
|
Corporate
|
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Three Months Ended December 31, 2011
|
||||||||||||||||
Adjusted income (loss) from operations (1)
|
$ | 55 | $ | (1 | ) | $ | 21 | $ | (40 | ) | ||||||
Results of guaranteed minimum income benefits business
|
- | 7 | - | - | ||||||||||||
Special item(s), after-tax:
|
||||||||||||||||
Cost associated with acquisitions (5)
|
- | - | - | (28 | ) | |||||||||||
Segment earnings (loss)
|
$ | 55 | $ | 6 | $ | 21 | $ | (68 | ) |
Effective January 1, 2012, Cigna adopted, as required, amended accounting guidance for deferred policy acquisition costs by selecting retrospective adjustment of prior periods.
|
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The financial results of HealthSpring are aggregated with the Health Care segment from the date of acquisition, which was on January 31, 2012.
|
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- After-tax benefit of $1 million in Health Care; after-tax benefit of $5 million in Disability and Life; after-tax benefit of $4 million (includes a pre-tax charge of $9 million offset by a tax benefit of $13 million) in Other Operations and an after-tax benefit of $14 million in Corporate.
|
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