Delaware
(State or other jurisdiction of incorporation)
|
1-08323
(Commission File Number)
|
06-1059331
(IRS Employer
Identification No.)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communication pursuant to Rule 13e-49(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
CIGNA CORPORATION
|
|
Date: November 1, 2012
|
By: /s/ Ralph J. Nicoletti
|
|
Ralph J. Nicoletti
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
Number
|
Description
|
Method of Filing
|
99.1
|
Furnished herewith.
|
|
NEWS RELEASE
|
|
Contact:
|
Ted Detrick, Investor Relations – (215) 761-1414, Edwin.Detrick@Cigna.com
|
|
Matthew Asensio, Media Relations – (860) 226-2599, Matthew.Asensio@Cigna.com
|
o
|
Consolidated revenues increased 31% to $7.4 billion in the third quarter of 2012.
|
o
|
o
|
Cigna's medical customer base grew by 1.25 million people through the first nine months of 2012.
|
o
|
Nine Months
|
|||||||||||||||||
Three Months Ended
|
Ended
|
||||||||||||||||
September 30,
|
June 30,
|
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2012
|
||||||||||||||
Total Revenues
|
$ | 7,358 | $ | 5,610 | $ | 7,457 | $ | 21,603 | |||||||||
Consolidated Earnings
|
|||||||||||||||||
Adjusted income from operations1
|
$ | 489 | $ | 308 | $ | 434 | $ | 1,282 | |||||||||
Net realized investment gains (losses), net of taxes
|
7 | 9 | (3 | ) | 16 | ||||||||||||
GMIB results, net of taxes2,5
|
32 | (134 | ) | (51 | ) | 22 | |||||||||||
Special items, net of taxes4
|
(62 | ) | - | - | (103 | ) | |||||||||||
Shareholders’ net income1
|
$ | 466 | $ | 183 | $ | 380 | $ | 1,217 | |||||||||
Adjusted income from operations1, per share
|
$ | 1.69 | $ | 1.13 | $ | 1.49 | $ | 4.42 | |||||||||
Shareholders’ net income1, per share
|
$ | 1.61 | $ | 0.67 | $ | 1.31 | $ | 4.20 | |||||||||
As of the Periods Ended
|
|||||||||||||||||
September 30,
|
June 30,
|
December 31,
|
|||||||||||||||
Medical Customers
|
2012 | 2011 | 2012 | 2011 | |||||||||||||
U.S. Health Care
|
12,731 | 11,471 | 12,619 | 11,483 | |||||||||||||
International (Global Health Benefits & Health Care)
|
1,240 | 1,196 | 1,224 | 1,197 | |||||||||||||
13,971 | 12,667 | 13,843 | 12,680 | ||||||||||||||
·
|
Cash and short term investments at the parent company were approximately $435 million at September 30, 2012 and $3.8 billion at December 31, 2011, which included amounts held at year-end to fund the HealthSpring acquisition that closed on January 31, 2012.
|
·
|
As of November 1, 2012, the Company repurchased6 approximately 4.4 million shares of stock for approximately $210 million.
|
·
|
Consistent with our strategy to deliver differentiated value and affordable solutions for our customers and clients, we have initiated a series of actions to improve our organizational alignment, operational effectiveness, and efficiency, resulting in a $50 million after-tax charge which is reported as a special item. We expect the impact of these actions to reduce annualized operating expenses by approximately $60 million after taxes. The majority of the expense savings is expected to be reinvested in the business to further our differentiated programs that improve the health, well-being and sense of security of our customers.
|
As of the Periods Ended
|
||||||||||||||
September 30,
|
June 30,
|
December 31,
|
||||||||||||
Customers:
|
2012
|
2011
|
2012
|
2011
|
||||||||||
Commercial
|
12,290
|
11,427
|
12,182
|
11,439
|
||||||||||
Medicare and Medicaid
|
441
|
44
|
437
|
44
|
||||||||||
Medical
|
12,731
|
11,471
|
|
12,619
|
11,483
|
|||||||||
Behavioral Care8
|
21,544
|
17,725
|
|
21,208
|
18,344
|
|||||||||
Dental
|
11,387
|
10,885
|
|
11,248
|
10,884
|
|||||||||
Pharmacy
|
6,721
|
6,357
|
|
6,634
|
6,368
|
|||||||||
Medicare Part D
|
1,265
|
538
|
|
1,264
|
538
|
·
|
Overall, Health Care results reflect contributions from the HealthSpring acquisition effective February 1, 2012 and sustained growth in our targeted customer segments.
|
·
|
Third quarter premiums and fees increased 51% relative to third quarter 2011, due to the contributions from the HealthSpring acquisition, organic business growth, rate increases, and increased specialty penetration, partially offset by business mix, which reflects a continued shift by clients to our Administrative Services Only (“ASO”) solutions.
|
·
|
Third quarter 2012 adjusted income from operations1 reflects continued growth in targeted medical and specialty businesses, favorable pharmacy results primarily for our Medicare Part D business, and favorable medical costs, including prior year claim development of approximately $6 million after-tax. The third quarter 2012 results also reflect further operating expense leverage, while continuing to make strategic investments in service capabilities and programs to increase efficiency.
|
·
|
Third quarter 2012 segment margins7 are higher than third quarter 2011 and second quarter 2012 primarily as a result of favorable pharmacy results.
|
·
|
Adjusted income from operations1 for third quarter 2011 and second quarter 2012 included favorable prior year claim development of approximately $5 million after-tax and $17 million after-tax, respectively.
|
·
|
Health Care medical claims payable9 was approximately $1.4 billion at September 30, 2012 and $900 million at December 31, 2011. The increase in the September 30, 2012 balance is primarily attributable to the HealthSpring acquisition.
|
Three Months Ended |
Nine Months
Ended |
|||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||
2012
|
2011 |
2012
|
2012 | |||||||||||||
Premiums and Fees
|
$ | 930 | $ | 765 | $ | 898 | $ | 2,694 | ||||||||
Adjusted Income from Operations1
|
$ | 79 | $ | 62 | $ | 65 | $ | 224 | ||||||||
Adjusted Margin, After-Tax7
|
8.2 | % | 7.8 | % | 7.0 | % | 8.0 | % | ||||||||
As of the Periods Ended | ||||||||||||||||
September 30, | June 30, | December 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Medical Customers – Global Health Benefits & Health Care
|
1,240 | 1,196 | 1,224 | 1,197 | ||||||||||||
Health, Life and Accident Policies (excluding China JV)8
|
9,438 | 6,450 | 9,354 | 9,106 |
·
|
Third quarter premium and fees grew 22% relative to third quarter 2011, 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 as well as revenues from recent acquisitions.
|
·
|
Third quarter 2012 adjusted income from operations1 reflects the impact of strong customer retention and business growth from both of our International businesses, improvements in operating expense efficiency, as well as favorable loss ratios. Third quarter 2012 segment margins7 have increased sequentially primarily due to favorable loss ratios in Korea and Global Health Benefits.
|
·
|
As previously disclosed, 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.
|
·
|
Third quarter 2012 results reflect continued strong premium and fee growth, including an 11% increase in disability premiums and fees, and favorable life claim experience, partially offset by unfavorable claims experience in the disability business.
|
·
|
Three Months Ended
|
Nine Months
Ended
|
|||||||||||||||
September 30, | June 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2012 | |||||||||||||
Run-off Reinsurance
|
$ | (7 | ) | $ | (46 | ) | $ | (11 | ) | $ | (29 | ) | ||||
Other Operations
|
$ | 22 | $ | 25 | $ | 21 | $ | 63 | ||||||||
Corporate
|
$ | (51 | ) | $ | (43 | ) | $ | (62 | ) | $ | (170 | ) |
·
|
Run-off Reinsurance includes the results for the VADBe2 business. Adjusted income from operations1 for the third quarter 2012, second quarter 2012, and third quarter 2011 includes reserve strengthenings of $6 million, $10 million, and $45 million after-tax, respectively, primarily related to updating reserve assumptions for VADBe2.
|
·
|
Second quarter 2012 Corporate results include a $10 million after-tax charge related to the termination of a vendor contract.
|
·
|
Cigna now estimates full year 2012 consolidated adjusted income from operations1,3 to be in the range of $1.655 billion to $1.705 billion, or $5.70 to $5.90 per share. This outlook reflects expected continued solid execution of our strategy resulting in strong organic growth, an expected increase in medical services utilization during the remainder of 2012, and contributions from the acquisition of HealthSpring.
|
(dollars in millions, except per share amounts)
|
Full-Year Ended
December 31, 2012
|
||||
Adjusted income (loss) from operations1,3
|
|||||
Health Care
|
$ | 1,290 to 1,320 | |||
International
|
280 to 290
|
||||
Disability and Life
|
265 to 275
|
||||
Ongoing Businesses
|
$ | 1,835 to 1,885 | |||
Run-off Reinsurance, Other Operations and Corporate
|
(180 | ) | |||
Consolidated | $ | 1,655 to 1,705 | |||
$ | 5.70 to 5.90 | ||||
U.S. Health Care medical customer growth, including medical customers acquired from HealthSpring
|
growth of approximately
1.25 million
|
·
|
Cigna’s earnings and earnings per share outlooks exclude the potential effects of future capital deployment6.
|
·
|
Cigna’s earnings and earnings per share outlooks include the impact of year-to-date results for VADBe2, but do not include an estimate for future impacts. Future potential impacts from VADBe2 are not known or reasonably estimable, including the impact of changes in capital markets or periodic updates to 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, as updated by the Current Report on Form 8-K filed on August 8, 2012, for more information on the potential effects of capital market and other assumption changes on shareholders’ net income.
|
|
2.
|
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. A reconciliation of reported shareholders’ net income1 and earnings per share to adjusted income from operations1 excluding the results of VADBe for the third quarter of 2012 and 2011 is as follows (dollars in millions, except per share amounts):
|
Three Months Ended September 30,
|
||||||||||||||||||||
2012
|
EPS
|
2011
|
EPS
|
% EPS
Change
|
||||||||||||||||
Shareholders’ net income
|
$ | 466 | $ | 1.61 | $ | 183 | $ | 0.67 | 140 | % | ||||||||||
Less adjustments for:
|
||||||||||||||||||||
Results of GMIB, after-tax
|
32 | 0.11 | (134 | ) | (0.50 | ) | ||||||||||||||
Net realized investment gains (losses), net of taxes
|
7 | 0.02 | 9 | 0.04 | ||||||||||||||||
Special items, after-tax4
|
(62 | ) | (0.21 | ) | - | - | ||||||||||||||
Adjusted income from operations1
|
489 | 1.69 | 308 | 1.13 | 50 | % | ||||||||||||||
Less adjustment for: Results of VADBe, after-tax
|
(7 | ) | (0.02 | ) | (45 | ) | (0.16 | ) | ||||||||||||
Adjusted income from operations1, excluding VADBe
|
$ | 496 | $ | 1.71 | $ | 353 | $ | 1.29 | 33 | % |
·
|
After-tax loss of $50 million related to a realignment and efficiency plan.
|
·
|
After-tax loss of $12 million related to transaction costs for the 2012 acquisition of HealthSpring.
|
·
|
After-tax loss of $28 million related to transaction costs for the 2012 acquisition of HealthSpring.
|
·
|
After-tax loss of $13 million related to a litigation matter.
|
|
7.
|
Adjusted margins in this press release are calculated by dividing adjusted income from operations1 by segment revenues. For the three and nine months ended September 30, 2012, segment margins including special items were 6.3% and 5.7% for Health Care, respectively, 7.3% and 7.7% for International, respectively, and 7.3% and 8.7% for Disability and Life, respectively.
|
|
9.
|
Health Care medical claims payable are presented net of reinsurance and other recoverables. The gross Health Care medical claims payable balance was $1,581 million as of September 30, 2012 and $1,095 million as of December 31, 2011.
|
1.
|
|
2.
|
|
3.
|
|
4.
|
5.
|
|
6.
|
|
7.
|
|
8.
|
|
9.
|
|
10.
|
|
11.
|
|
12.
|
|
13.
|
|
14.
|
|
15.
|
|
16.
|
|
17.
|
|
18.
|
|
19.
|
|
20.
|
|
21.
|
|
22.
|
|
23.
|
|
24.
|
|
CIGNA CORPORATION
|
||||||||||||||||
COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited)
|
Exhibit 1
|
|||||||||||||||
(Dollars in millions, except per share amounts)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
REVENUES
|
||||||||||||||||
Premiums and fees
|
$ | 6,637 | $ | 4,748 | $ | 19,464 | $ | 14,267 | ||||||||
Net investment income
|
283 | 297 | 854 | 860 | ||||||||||||
Mail order pharmacy revenues
|
401 | 368 | 1,189 | 1,056 | ||||||||||||
Other revenues
|
68 | 51 | 182 | 193 | ||||||||||||
Total operating revenues
|
7,389 | 5,464 | 21,689 | 16,376 | ||||||||||||
Run-off Reinsurance hedge gain (loss) (1)
|
(42 | ) | 133 | (106 | ) | 96 | ||||||||||
Net realized investment gains
|
11 | 13 | 20 | 56 | ||||||||||||
Total
|
$ | 7,358 | $ | 5,610 | $ | 21,603 | $ | 16,528 | ||||||||
ADJUSTED INCOME (LOSS) FROM OPERATIONS (2)
|
||||||||||||||||
Health Care
|
$ | 384 | $ | 248 | $ | 978 | $ | 774 | ||||||||
International
|
79 | 62 | 224 | 180 | ||||||||||||
Disability and Life
|
62 | 62 | 216 | 227 | ||||||||||||
Run-off Reinsurance
|
(7 | ) | (46 | ) | (29 | ) | (47 | ) | ||||||||
Other Operations
|
22 | 25 | 63 | 64 | ||||||||||||
Corporate
|
(51 | ) | (43 | ) | (170 | ) | (130 | ) | ||||||||
Total
|
$ | 489 | $ | 308 | $ | 1,282 | $ | 1,068 | ||||||||
SHAREHOLDERS' NET INCOME
|
||||||||||||||||
Segment Earnings (Loss)
|
||||||||||||||||
$ | 345 | $ | 248 | $ | 919 | $ | 775 | |||||||||
International (3)
|
70 | 62 | 215 | 180 | ||||||||||||
60 | 62 | 214 | 232 | |||||||||||||
Run-off Reinsurance
|
25 | (180 | ) | (7 | ) | (189 | ) | |||||||||
Other Operations (6)
|
22 | 25 | 63 | 68 | ||||||||||||
(63 | ) | (43 | ) | (203 | ) | (116 | ) | |||||||||
Total
|
459 | 174 | 1,201 | 950 | ||||||||||||
Net realized investment gains, net of taxes
|
7 | 9 | 16 | 37 | ||||||||||||
Shareholders' net income
|
$ | 466 | $ | 183 | $ | 1,217 | $ | 987 | ||||||||
DILUTED EARNINGS PER SHARE:
|
||||||||||||||||
Adjusted income from operations (2)
|
$ | 1.69 | $ | 1.13 | $ | 4.42 | $ | 3.91 | ||||||||
Results of guaranteed minimum income benefits business, after-tax
|
0.11 | (0.50 | ) | 0.07 | (0.52 | ) | ||||||||||
Net realized investment gains, net of taxes
|
0.02 | 0.04 | 0.06 | 0.14 | ||||||||||||
(0.21 | ) | - | (0.35 | ) | 0.09 | |||||||||||
Shareholders' net income
|
$ | 1.61 | $ | 0.67 | $ | 4.20 | $ | 3.62 | ||||||||
Weighted average shares (in thousands)
|
289,875 | 272,060 | 289,807 | 272,884 | ||||||||||||
SHAREHOLDERS' EQUITY at September 30
|
$ | 9,530 | $ | 7,430 | ||||||||||||
SHAREHOLDERS' EQUITY PER SHARE at September 30
|
$ | 33.24 | $ | 27.49 | ||||||||||||
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 Great American Supplemental Benefits are included in the International segment from the date of acquisition, which was on August 31, 2012. The financial results of HealthSpring are aggregated with the Health Care segment from the date of acquisition, which was on January 31, 2012.
|
(1) Includes pre-tax futures and swaps contracts entered into as part of a dynamic hedge program to manage equity and growth interest rate risks in Cigna's Run-off Reinsurance operations. Cigna recorded related offsets in Benefits and Expenses to adjust liabilities for reinsured guaranteed minimum death benefit and guaranteed minimum income benefit contracts. For more information, please refer to Cigna's Form 10-Q for the period ended September 30, 2012, which is expected to be filed on November 1, 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.
|
||||||||||||||||
(3) The three months and nine months ended September 30, 2012 includes pre-tax charges of $77 million ($50 million after-tax) for a realignment and efficiency plan: $60 million pre-tax ($39 million after-tax) in Health Care; $14 million pre-tax ($9 million after-tax) in International and $3 million pre-tax ($2 million after-tax) in Disability and Life.
|
||||||||||||||||
(4) The three months ended September 30, 2012 includes pre-tax charges of $12 million ($12 million after-tax) in Corporate for costs associated with the 2012 acquisition of HealthSpring. The nine months ended September 30, 2012 includes pre-tax charges of $53 million ($40 million after-tax) for costs associated with the 2012 acquisition of HealthSpring: $42 million pre-tax ($33 million after-tax) in Corporate and $11 million pre-tax ($7 million after-tax) in Health Care.
|
||||||||||||||||
(5) The nine months ended September 30, 2012 includes pre-tax charges of $20 million ($13 million after-tax) resulting from a litigation matter in Health Care.
|
||||||||||||||||
(6) The nine months ended September 30, 2011 includes a net tax benefit of $24 million resulting from the completion of the 2007 and 2008 IRS examinations.
- 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
|
Exhibit 2 | |||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL FINANCIAL INFORMATION (unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||
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,
|
3Q12 | 3Q11 | 2Q12 | 3Q12 | 3Q11 | 2Q12 | 3Q12 | 3Q11 | 2Q12 | 3Q12 | 3Q11 | 2Q12 | ||||||||||||||||||||||||||||||||||||
Adjusted income (loss) from operations
(1)
|
$ | 1.69 | $ | 1.13 | $ | 1.49 | $ | 489 | $ | 308 | $ | 434 | $ | 384 | $ | 248 | $ | 332 | $ | 79 | $ | 62 | $ | 65 | ||||||||||||||||||||||||
Results of guaranteed minimum income
benefits business (2)
|
0.11 | (0.50 | ) | (0.17 | ) | 32 | (134 | ) | (51 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Special item(s), after-tax:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Charge for realignment and efficiency
plan(3)
|
(0.17 | ) | - | - | (50 | ) | - | - | (39 | ) | - | - | (9 | ) | - | - | ||||||||||||||||||||||||||||||||
Cost associated with HealthSpring
acquisition (4)
|
(0.04 | ) | - | - | (12 | ) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Segment earnings (loss)
|
1.59 | 0.63 | 1.32 | 459 | 174 | 383 | $ | 345 | $ | 248 | $ | 332 | $ | 70 | $ | 62 | $ | 65 | ||||||||||||||||||||||||||||||
Net realized investment gains (losses), net
of taxes (7)
|
0.02 | 0.04 | (0.01 | ) | 7 | 9 | (3 | ) | ||||||||||||||||||||||||||||||||||||||||
Shareholders' net income
|
$ | 1.61 | $ | 0.67 | $ | 1.31 | $ | 466 | $ | 183 | $ | 380 | ||||||||||||||||||||||||||||||||||||
Disability
|
Run-off
|
Other
|
||||||||||||||||||||||||||||||||||||||||||||||
and Life
|
Reinsurance
|
Operations
|
Corporate
|
|||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended,
|
3Q12 | 3Q11 | 2Q12 | 3Q12 | 3Q11 | 2Q12 | 3Q12 | 3Q11 | 2Q12 | 3Q12 | 3Q11 | 2Q12 | ||||||||||||||||||||||||||||||||||||
Adjusted income (loss) from operations (1)
|
$ | 62 | $ | 62 | $ | 89 | $ | (7 | ) | $ | (46 | ) | $ | (11 | ) | $ | 22 | $ | 25 | $ | 21 | $ | (51 | ) | $ | (43 | ) | $ | (62 | ) | ||||||||||||||||||
Results of guaranteed minimum income
benefits business (2)
|
- | - | - | 32 | (134 | ) | (51 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Special item(s), after-tax:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Charge for realignment and efficiency
plan (3)
|
(2 | ) | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Cost associated with HealthSpring
acquisition (4)
|
- | - | - | - | - | - | - | - | - | (12 | ) | - | - | |||||||||||||||||||||||||||||||||||
Segment earnings (loss)
|
$ | 60 | $ | 62 | $ | 89 | $ | 25 | $ | (180 | ) | $ | (62 | ) | $ | 22 | $ | 25 | $ | 21 | $ | (63 | ) | $ | (43 | ) | $ | (62 | ) | |||||||||||||||||||
Diluted
|
||||||||||||||||||||||||||||||||
Earnings
|
||||||||||||||||||||||||||||||||
Per Share
|
Consolidated
|
Health Care
|
International
|
|||||||||||||||||||||||||||||
Nine Months Ended September 30,
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||
Adjusted income (loss) from operations (1) | $ | 4.42 | $ | 3.91 | $ | 1,282 | $ | 1,068 | $ | 978 | $ | 774 | $ | 224 | $ | 180 | ||||||||||||||||
Results of guaranteed minimum income benefits
business (2)
|
0.07 | (0.52 | ) | 22 | (142 | ) | - | - | - | - | ||||||||||||||||||||||
Special item(s), after-tax:
|
||||||||||||||||||||||||||||||||
Charge for realignment and efficiency plan (3) | (0.17 | ) | - | (50 | ) | - | (39 | ) | - | (9 | ) | - | ||||||||||||||||||||
Cost associated with HealthSpring acquisition (4) | (0.14 | ) | - | (40 | ) | - | (7 | ) | - | - | - | |||||||||||||||||||||
Charges associated with a litigation matter (5) | (0.04 | ) | - | (13 | ) | - | (13 | ) | - | - | - | |||||||||||||||||||||
Completion of IRS examination (6)
|
- | 0.09 | - | 24 | - | 1 | - | - | ||||||||||||||||||||||||
Segment earnings (loss)
|
4.14 | 3.48 | 1,201 | 950 | $ | 919 | $ | 775 | $ | 215 | $ | 180 | ||||||||||||||||||||
Net realized investment gains, net of taxes (7) | 0.06 | 0.14 | 16 | 37 | ||||||||||||||||||||||||||||
Shareholders' net income
|
$ | 4.20 | $ | 3.62 | $ | 1,217 | $ | 987 |
Disability
|
Run-off
|
Other
|
||||||||||||||||||||||||||||||
and Life
|
Reinsurance
|
Operations
|
Corporate | |||||||||||||||||||||||||||||
Nine Months Ended September 30,
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||
Adjusted income (loss) from operations (1)
|
$ | 216 | $ | 227 | $ | (29 | ) | $ | (47 | ) | $ | 63 | $ | 64 | $ | (170 | ) | $ | (130 | ) | ||||||||||||
Results of guaranteed minimum income benefits
business (2)
|
- | - | 22 | (142 | ) | - | - | - | - | |||||||||||||||||||||||
Special item(s), after-tax:
|
||||||||||||||||||||||||||||||||
Charge for realignment and efficiency plan (3)
|
(2 | ) | - | - | - | - | - | - | - | |||||||||||||||||||||||
Cost associated with HealthSpring acquisition (4)
|
- | - | - | - | - | - | (33 | ) | - | |||||||||||||||||||||||
Charges associated with a litigation matter (5)
|
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Completion of IRS examination (6)
|
- | 5 | - | - | - | 4 | - | 14 | ||||||||||||||||||||||||
Segment earnings (loss)
|
$ | 214 | $ | 232 | $ | (7 | ) | $ | (189 | ) | $ | 63 | $ | 68 | $ | (203 | ) | $ | (116 | ) | ||||||||||||
(1) Cigna measures the financial results of its segments using "segment earnings (loss)", which is defined as shareholders' net income (loss) before net realized investment gains (losses). Adjusted income (loss) from operations is defined as segment earnings excluding special items and results of Cigna's guaranteed minimum income benefits business.
|
||||||||||||||||||||||||||||||||
- three months and nine months ended September 30, 2012 were gains of $50 million and $34 million, respectively;
- three months and nine months ended September 30, 2011 were losses of $206 million and $219 million, respectively; and
- three months ended June 30, 2012 were losses of $79 million.
|
||||||||||||||||||||||||||||||||
- 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.
|
||||||||||||||||||||||||||||||||
- three months and nine months ended September 30, 2012 were gains of $11 million and $20 million, respectively;
- three months and nine months ended September 30, 2011 were gains of $13 million and $56 million, respectively; and
- three months ended June 30, 2012 were losses of $4 million.
|
^5?ZD*E8&^0(A#&)$3L-(X1Z-N+\%@..M>
ML8ZM0I,*)FL%KZ1EZV:9!EB;"DO(PJI$'/&L42RMG6.-9FQNB;,K&K*V)[F/
M?&V3Q[TC>^.-SF(OM I4#(!)&/
M1LC'C643FR-;(BH]K53,7'->U3J7DE7NU:]Q!_O(M(5827^R8&UKI9&2L'MJ6R@#N*DE\4K1K($6=T
\H[7QE:R%G6&T1_%5UEWT7Z8VTO&F3RK_`#!J>J0FP[O*7+\X/\_E
MXAXU5RGPUI7,%/%T]P3DB_!6W&XVQC+YT;%8[XUPM?$K=7=#(J5_A]=OA*^X
M>/D?E27K_0][_&&M%)PO`*F!9/8MB?LS&I0VM]RI\JQU