Delaware
(State or other jurisdiction of incorporation)
|
1‑08323
(Commission File Number)
|
06‑1059331
(IRS Employer
Identification No.)
|
Item 9.01
|
Financial Statements and Exhibits.
|
|
|
(d)
|
Exhibits.
|
|
|
Exhibit No.
|
Description
|
99.1
|
Cigna Corporation
|
||
Date: February 2, 2017
|
By:
|
/s/ Thomas A. McCarthy
|
Thomas A. McCarthy
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
NEWS RELEASE
|
Contact:
|
Will McDowell, Investor Relations – (215) 761-4198
|
Matt Asensio, Media Relations – (860) 226-2599
|
o
|
Total revenues for 2016 increased 5% to $39.7 billion
|
o
|
Shareholders' net income for 2016 was $1.9 billion, or $7.19 per share
|
o
|
Adjusted income from operations1 for 2016 was $2.1 billion, or $8.10 per share
|
o
|
Global medical customer base2 is projected to grow in the range of 300,000 to 500,000 lives in 2017
|
o
|
Adjusted income from operations1,3,4 is projected to grow in the range of 12% to 18%, to $2.35 billion to $2.48 billion in 2017, or $9.00 to $9.50 per share, excluding capital deployment
|
Consolidated Financial Results (dollars in millions):
|
||||||||||||||||
Three Months Ended
|
Year
Ended
|
|||||||||||||||
December 31,
|
September 30,
|
December 31,
|
||||||||||||||
2016
|
2015
|
2016
|
2016
|
|||||||||||||
Total Revenues
|
$
|
9,944
|
$
|
9,528
|
$
|
9,880
|
$
|
39,668
|
||||||||
Net realized investment (gains) losses
|
(59
|
)
|
47
|
(75
|
)
|
(169
|
)
|
|||||||||
Consolidated Operating Revenues5
|
$
|
9,885
|
$
|
9,575
|
$
|
9,805
|
$
|
39,499
|
||||||||
Consolidated Earnings, net of taxes
|
||||||||||||||||
Shareholders' net income
|
$
|
382
|
$
|
426
|
$
|
456
|
$
|
1,867
|
||||||||
Net realized investment (gains) losses
|
(38
|
)
|
28
|
(48
|
)
|
(109
|
)
|
|||||||||
Amortization of other acquired intangible assets1
|
22
|
4
|
24
|
94
|
||||||||||||
Special items1
|
119
|
28
|
71
|
252
|
||||||||||||
Adjusted income from operations1
|
$
|
485
|
$
|
486
|
$
|
503
|
$
|
2,104
|
||||||||
|
||||||||||||||||
Shareholders' net income, per share
|
$
|
1.47
|
$
|
1.64
|
$
|
1.76
|
$
|
7.19
|
||||||||
Adjusted income from operations1, per share
|
$
|
1.87
|
$
|
1.87
|
$
|
1.94
|
$
|
8.10
|
·
|
2016 shareholders' net income included special item1 charges of $252 million after-tax, or $0.97 per share, for transaction costs related to Cigna's proposed combination with Anthem, the establishment of an allowance against risk corridor program receivables, and a litigation matter.
|
·
|
Fourth quarter 2016 shareholders' net income included special item1 charges of $119 million after-tax, or $0.46 per share, for the establishment of an allowance against risk corridor program receivables and transaction costs related to Cigna's proposed combination with Anthem.
|
·
|
Cash and marketable investments at the parent company were $2.8 billion at December 31, 2016 and $1.4 billion at December 31, 2015.
|
·
|
In 2016, the Company repurchased 785,000 shares of common stock for approximately $110 million.4
|
Financial Results (dollars in millions, customers in thousands):
|
||||||||||||||||
Three Months Ended
|
Year
Ended
|
|||||||||||||||
December 31,
|
September 30,
|
December 31,
|
||||||||||||||
2016
|
2015
|
2016
|
2016
|
|||||||||||||
|
||||||||||||||||
Premiums and Fees
|
$
|
6,857
|
$
|
6,721
|
$
|
6,807
|
$
|
27,663
|
||||||||
Adjusted Income from Operations1
|
$
|
406
|
$
|
394
|
$
|
416
|
$
|
1,852
|
||||||||
Adjusted Margin, After-Tax6
|
5.2
|
%
|
5.2
|
%
|
5.4
|
%
|
5.9
|
%
|
||||||||
|
|
As of the Periods Ended
|
|||||||||||||||
December 31,
|
September 30,
|
|||||||||||||||
Customers:
|
2016
|
2015
|
2016
|
|||||||||||||
Commercial
|
14,631
|
14,432
|
14,594
|
|||||||||||||
Government
|
566
|
567
|
583
|
|||||||||||||
Medical
|
15,197
|
14,999
|
15,177
|
|||||||||||||
|
||||||||||||||||
Behavioral Care
|
26,238
|
24,674
|
26,102
|
|||||||||||||
Dental
|
14,981
|
13,869
|
14,960
|
|||||||||||||
Pharmacy
|
8,461
|
8,068
|
8,370
|
|||||||||||||
Medicare Part D
|
972
|
1,476
|
999
|
·
|
Fourth quarter 2016 premiums and fees increased 2% relative to fourth quarter 2015, driven by customer growth, specialty contributions, and rate actions in our Commercial business, partially offset by, as expected, reductions in Medicare Part D and Individual customers.
|
·
|
The medical customer base2 at the end of 2016 totaled 15.2 million, including an increase of approximately 200,000 customers during the year, driven by organic growth in our Middle Market, Select, and International segments.
|
·
|
Fourth quarter 2016 adjusted income from operations1 and adjusted margin, after-tax6 reflect strong contributions from our Commercial employer and specialty businesses, partially offset by the impact of not recording $16 million, after tax of additional risk corridor receivables in fourth quarter 2016.
|
·
|
Adjusted income from operations1 included favorable prior year reserve development on an after-tax basis of $7 million for full year 2016, compared to $60 million for full year 2015.
|
·
|
The Total Commercial medical care ratio7 ("MCR") of 79.3% for full year 2016 reflects continued strong performance in our Commercial employer business, consistent with our expectations.
|
·
|
The Commercial MCR7 of 83.1% for fourth quarter 2016 reflects ongoing strength in our Commercial employer business, continued high medical costs in our U.S. Individual business, expected higher seasonal medical costs and the aforementioned risk corridor impact. The Commercial MCR7 for fourth quarter 2016 also reflects more normalized stop loss claim experience, as expected, compared to the favorable stop loss experience reported in fourth quarter 2015.
|
·
|
The Total Government MCR7 of 85.3% for full year 2016 reflects solid performance in Medicare Advantage. The Government MCR7 of 83.2% for fourth quarter 2016 reflects increased medical costs in our Medicaid business.
|
·
|
Full year medical cost trend for our total U.S. Commercial book of business was modestly below the low end of our previous range of 4% to 5%, reflecting improved pharmacy trend as well as continued favorable medical costs, physician engagement and low utilization trend.
|
·
|
Fourth quarter 2016 Global Health Care operating expense ratio7 of 22.0% reflects costs related to our CMS audit response as well as continued investments in strategic initiatives, offset by continued efficiency gains.
|
·
|
Global Health Care net medical costs payable8 was approximately $2.26 billion at December 31, 2016 and $2.11 billion at December 31, 2015.
|
Three Months Ended
|
Year
Ended
|
|||||||||||||||
December 31,
|
September 30,
|
December 31,
|
||||||||||||||
2016
|
2015
|
2016
|
2016
|
|||||||||||||
|
||||||||||||||||
Premiums and Fees9
|
$
|
842
|
$
|
776
|
$
|
833
|
$
|
3,247
|
||||||||
Adjusted Income from Operations1
|
$
|
63
|
$
|
54
|
$
|
81
|
$
|
294
|
||||||||
Adjusted Margin, After-Tax6
|
7.2
|
%
|
6.7
|
%
|
9.4
|
%
|
8.7
|
%
|
||||||||
|
|
As of the Periods Ended
|
|||||||||||||||
December 31,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
||||||||||||||
Policies9
|
12,151
|
12,888
|
12,069
|
|
|
·
|
Global Supplemental Benefits delivered strong results again in 2016, reflecting the benefits of our differentiated solutions for individual consumers.
|
·
|
Fourth quarter 2016 premiums and fees grew 10% over fourth quarter 2015 on a currency-adjusted basis, reflecting continued business growth.
|
·
|
Fourth quarter 2016 adjusted income from operations1 and adjusted margin, after-tax6 reflect business growth as well as the impact of strategic investments supporting long-term growth.
|
Year
|
||||||||||||||||
Three Months Ended
|
Ended
|
|||||||||||||||
December 31,
|
September 30,
|
December 31,
|
||||||||||||||
2016
|
2015
|
2016
|
2016
|
|||||||||||||
|
||||||||||||||||
Premiums and Fees
|
$
|
1,035
|
$
|
998
|
$
|
1,024
|
$
|
4,098
|
||||||||
Adjusted Income from Operations1
|
$
|
69
|
$
|
83
|
$
|
53
|
$
|
125
|
||||||||
Adjusted Margin, After-Tax6
|
6.1
|
%
|
7.6
|
%
|
4.8
|
%
|
2.8
|
%
|
·
|
Fourth quarter 2016 premiums and fees increased 4% over fourth quarter 2015 driven by business growth across disability and life products.
|
·
|
Fourth quarter 2016 adjusted income from operations1 and adjusted margin, after-tax6 reflect stabilized life claim experience as well as continued improvement in disability results.
|
Financial Results (dollars in millions):
|
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
September 30,
|
December 31,
|
||||||||||||||
2016
|
2015
|
2016
|
2016
|
|||||||||||||
|
||||||||||||||||
Corporate & Other Operations
|
$
|
(53
|
)
|
$
|
(45
|
)
|
$
|
(47
|
)
|
$
|
(167
|
)
|
(dollars in millions, except where noted and per share amounts)
|
Projection for Full-Year Ending
|
|||
|
December 31, 2017
|
|||
Adjusted Income (Loss) from Operations1,3
|
||||
Global Health Care
|
$ |
2,035 to 2,115
|
||
Global Supplemental Benefits
|
$ |
295 to 315
|
||
Group Disability and Life
|
$ |
200 to 230
|
||
Ongoing Businesses
|
$ |
2,530 to 2,660
|
||
|
||||
Corporate & Other Operations
|
$ |
(180)
|
|
|
Consolidated Adjusted Income from Operations1,3
|
$ |
2,350 to 2,480
|
||
|
||||
Consolidated Adjusted Income from Operations, per share1,3,4
|
$ |
9.00 to 9.50
|
||
|
2017 Operating Metrics and Ratios Outlook
|
|
|
|
Total Revenue Growth
|
|
|
2% to 3%
|
Full Year Total Commercial Medical Care Ratio7
|
|
|
80.5% to 81.5%
|
Full Year Total Government Medical Care Ratio7
|
|
|
85% to 86%
|
Full Year Global Health Care Operating Expense Ratio7
|
|
|
20.5% to 21.5%
|
Global Medical Customer Growth2
|
|
|
300,000 – 500,000 customers
|
1.
|
Adjusted income (loss) from operations is defined as shareholders' net income (loss) excluding the following after-tax adjustments: net realized investment results, net amortization of other acquired intangible assets and special items. Net amortization of other acquired intangible assets in 2015 included the one-time benefit of an acquisition in which the fair value of acquired net assets exceeded the purchase price. Special items are identified in Exhibit 2 of this earnings release.
|
2.
|
Global medical customers include individuals who meet any one of the following criteria: are covered under a medical insurance policy, managed care arrangement, or service agreement issued by Cigna; have access to Cigna's provider network for covered services under their medical plan; or have medical claims and services that are administered by Cigna.
|
3.
|
Management is not able to provide a reconciliation to shareholders' net income (loss) on a forward-looking basis because we are unable to predict, without unreasonable effort, certain components thereof including (i) future net realized investment results and (ii) future special items. These items are inherently uncertain and depend on various factors, many of which are beyond our control. As such, any associated estimate and its impact on shareholders' net income could vary materially. The Company believes it is reasonably likely that a guaranty fund assessment related to Penn Treaty Network America Insurance Company and its subsidiary American Network Insurance Company will be finalized in 2017. Due to uncertainties surrounding this matter, the Company's share of this guaranty fund assessment is uncertain, but based on current information, is estimated to be approximately $85 million after tax. The Company expects to treat this guaranty fund assessment as a special item.
|
4.
|
The Company's outlook excludes the potential effects of any share repurchases or business combinations that may occur after the date of this earnings release.
|
5.
|
The measure "consolidated operating revenues" is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measure, "total revenues." We define consolidated operating revenues as total revenues excluding realized investment results. We exclude realized investment results from this measure because our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment. As a result, gains or losses created in this process may not be indicative of past or future underlying performance of the business. See Exhibit 1 for a reconciliation of consolidated operating revenues to total revenues.
|
6.
|
Adjusted margin, after-tax, is calculated by dividing adjusted income (loss) from operations by operating revenues for each segment.
|
7.
|
Operating ratios are defined as follows:
|
·
|
Total Commercial medical care ratio represents medical costs as a percentage of premiums for all commercial risk products, including medical, pharmacy, dental, stop loss and behavioral products provided through guaranteed cost or experience-rated funding arrangements in both the United States and internationally.
|
·
|
Total Government medical care ratio represents medical costs as a percentage of premiums for Medicare Advantage, Medicare Part D, and Medicaid products.
|
·
|
Global Health Care Operating Expense Ratio represents operating expenses excluding acquisition related amortization expense as a percentage of operating revenue in the Global Health Care segment.
|
8.
|
Global Health Care medical costs payable are presented net of reinsurance and other recoverables. The gross Global Health Care medical costs payable balance was $2.53 billion as of December 31, 2016 and $2.36 billion as of December 31, 2015.
|
9.
|
Cigna owns a 50% noncontrolling interest in its China joint venture. Cigna's 50% share of the joint venture's earnings is reported in Other Revenues using the equity method of accounting under GAAP. As such, the premiums and fees and policy counts for the Global Supplemental Benefits segment do not include the China joint venture.
|
CIGNA CORPORATION
|
||||||||||||||||
COMPARATIVE SUMMARY OF FINANCIAL RESULTS (unaudited)
|
Exhibit 1
|
|||||||||||||||
(Dollars in millions, except per share amounts)
|
||||||||||||||||
Three Months Ended
|
Year Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
REVENUES
|
||||||||||||||||
Premiums
|
$
|
7,621
|
$
|
7,461
|
$
|
30,626
|
$
|
29,642
|
||||||||
Fees
|
1,139
|
1,056
|
4,485
|
4,217
|
||||||||||||
Net investment income
|
299
|
295
|
1,147
|
1,153
|
||||||||||||
Mail order pharmacy revenues
|
759
|
690
|
2,966
|
2,536
|
||||||||||||
Other revenues
|
67
|
73
|
275
|
271
|
||||||||||||
Consolidated operating revenues
|
9,885
|
9,575
|
39,499
|
37,819
|
||||||||||||
Net realized investment gains (losses)
|
59
|
(47
|
)
|
169
|
57
|
|||||||||||
Total revenues
|
$
|
9,944
|
$
|
9,528
|
$
|
39,668
|
$
|
37,876
|
||||||||
SHAREHOLDERS' NET INCOME (LOSS)
|
||||||||||||||||
Shareholders' net income
|
$
|
382
|
$
|
426
|
$
|
1,867
|
$
|
2,094
|
||||||||
After-tax adjustments to reconcile to adjusted income from operations:
|
||||||||||||||||
Realized investment (gains) losses
|
(38
|
)
|
28
|
(109
|
)
|
(40
|
)
|
|||||||||
Amortization of other acquired intangible assets, net
|
22
|
4
|
94
|
80
|
||||||||||||
Special items
|
119
|
28
|
252
|
122
|
||||||||||||
Adjusted income from operations (1)
|
485
|
$
|
486
|
$
|
2,104
|
$
|
2,256
|
|||||||||
Adjusted income (loss) from operations by segment
|
||||||||||||||||
Global Health Care
|
$
|
406
|
$
|
394
|
$
|
1,852
|
$
|
1,848
|
||||||||
Global Supplemental Benefits
|
63
|
54
|
294
|
262
|
||||||||||||
Group Disability and Life
|
69
|
83
|
125
|
324
|
||||||||||||
Ongoing Operations
|
538
|
531
|
2,271
|
2,434
|
||||||||||||
Corporate and Other
|
(53
|
)
|
(45
|
)
|
(167
|
)
|
(178
|
)
|
||||||||
Total adjusted income from operations
|
$
|
485
|
$
|
486
|
$
|
2,104
|
$
|
2,256
|
||||||||
DILUTED EARNINGS PER SHARE
|
||||||||||||||||
Shareholders' net income
|
$
|
1.47
|
$
|
1.64
|
$
|
7.19
|
$
|
8.04
|
||||||||
After-tax adjustments to reconcile to adjusted income from operations:
|
||||||||||||||||
Realized investment (gains) losses
|
(0.14
|
)
|
0.11
|
(0.42
|
)
|
(0.15
|
)
|
|||||||||
Amortization of other acquired intangible assets, net
|
0.08
|
0.01
|
0.36
|
0.30
|
||||||||||||
Special items
|
0.46
|
0.11
|
0.97
|
0.47
|
||||||||||||
Adjusted income from operations (1)
|
$
|
1.87
|
$
|
1.87
|
$
|
8.10
|
$
|
8.66
|
||||||||
Weighted average shares (in thousands)
|
259,882
|
260,518
|
259,647
|
260,592
|
||||||||||||
Common shares outstanding (in thousands)
|
256,869
|
256,544
|
||||||||||||||
SHAREHOLDERS' EQUITY at December 31,
|
$
|
13,723
|
$
|
12,035
|
||||||||||||
SHAREHOLDERS' EQUITY PER SHARE at December 31,
|
$
|
53.42
|
$
|
46.91
|
||||||||||||
(1) Adjusted income (loss) from operations is defined as shareholders' net income (loss) excluding the following after-tax adjustments: realized investment results; net amortization of other acquired intangible assets; and special items (identified and quantified on Exhibit 2).
|
Exhibit 2
|
||||||||||||||||||||||||||||||||||||
CIGNA CORPORATION
|
||||||||||||||||||||||||||||||||||||
RECONCILIATION OF SHAREHOLDERS' NET INCOME (LOSS) TO ADJUSTED INCOME FROM OPERATIONS
|
||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts)
|
||||||||||||||||||||||||||||||||||||
Diluted
|
||||||||||||||||||||||||||||||||||||
Earnings | Global | |||||||||||||||||||||||||||||||||||
Per Share | Consolidated | Health Care | ||||||||||||||||||||||||||||||||||
Three Months Ended
|
4Q16
|
4Q15
|
3Q16
|
4Q16
|
4Q15
|
3Q16
|
4Q16
|
4Q15
|
3Q16
|
|||||||||||||||||||||||||||
Shareholders' net income (loss)
|
$
|
1.47
|
$
|
1.64
|
$
|
1.76
|
$
|
382
|
$
|
426
|
$
|
456
|
$
|
337
|
$
|
354
|
$
|
413
|
||||||||||||||||||
After-tax adjustments to reconcile to adjusted income from operations:
|
||||||||||||||||||||||||||||||||||||
Realized investment (gains) losses
|
(0.14
|
)
|
0.11
|
(0.19
|
)
|
(38
|
)
|
28
|
(48
|
)
|
(29
|
)
|
20
|
(42
|
)
|
|||||||||||||||||||||
Amortization of other acquired intangible assets, net
|
0.08
|
0.01
|
0.09
|
22
|
4
|
24
|
18
|
20
|
20
|
|||||||||||||||||||||||||||
Special items:
|
||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters
|
-
|
-
|
0.10
|
-
|
-
|
25
|
-
|
-
|
25
|
|||||||||||||||||||||||||||
Merger-related transaction costs
|
0.15
|
0.11
|
0.18
|
39
|
28
|
46
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Risk corridor allowance
|
0.31
|
-
|
-
|
80
|
-
|
-
|
80
|
-
|
-
|
|||||||||||||||||||||||||||
Adjusted income (loss) from operations
|
$
|
1.87
|
$
|
1.87
|
$
|
1.94
|
$
|
485
|
$
|
486
|
$
|
503
|
$
|
406
|
$
|
394
|
$
|
416
|
||||||||||||||||||
Weighted average shares (in thousands)
|
259,882
|
260,518
|
259,754
|
|||||||||||||||||||||||||||||||||
Special Items, pre-tax:
|
||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters
|
$
|
-
|
$
|
-
|
$
|
40
|
$
|
-
|
$
|
-
|
$
|
40
|
||||||||||||||||||||||||
Merger-related transaction costs
|
43
|
31
|
49
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Risk corridor allowance
|
124
|
-
|
-
|
124
|
-
|
-
|
||||||||||||||||||||||||||||||
Total
|
$
|
167
|
$
|
31
|
$
|
89
|
$
|
124
|
$
|
-
|
$
|
40
|
||||||||||||||||||||||||
Diluted
|
||||||||||||||||||||||||||||||||||||
Earnings
|
Global
|
|||||||||||||||||||||||||||||||||||
Per Share | Consolidated |
Health Care
|
||||||||||||||||||||||||||||||||||
Year Ended December 31,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||||||||||||||
Shareholders' net income (loss)
|
$
|
7.19
|
$
|
8.04
|
$
|
1,867
|
$
|
2,094
|
$
|
1,751
|
$
|
1,794
|
||||||||||||||||||||||||
After-tax adjustments to reconcile to adjusted income from operations:
|
||||||||||||||||||||||||||||||||||||
Realized investment (gains) losses
|
(0.42
|
)
|
(0.15
|
)
|
(109
|
)
|
(40
|
)
|
(78
|
)
|
(30
|
)
|
||||||||||||||||||||||||
Amortization of other acquired intangible assets, net
|
0.36
|
0.30
|
94
|
80
|
74
|
84
|
||||||||||||||||||||||||||||||
Special Items:
|
||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters
|
0.10
|
-
|
25
|
-
|
25
|
-
|
||||||||||||||||||||||||||||||
Debt extinguishment costs
|
-
|
0.25
|
-
|
65
|
-
|
-
|
||||||||||||||||||||||||||||||
Merger-related transaction costs
|
0.56
|
0.22
|
147
|
57
|
-
|
-
|
||||||||||||||||||||||||||||||
Risk corridor allowance
|
0.31
|
-
|
80
|
-
|
80
|
-
|
||||||||||||||||||||||||||||||
Adjusted income (loss) from operations
|
$
|
8.10
|
$
|
8.66
|
$
|
2,104
|
$
|
2,256
|
$
|
1,852
|
$
|
1,848
|
||||||||||||||||||||||||
Weighted average shares (in thousands)
|
259,647
|
260,592
|
||||||||||||||||||||||||||||||||||
Common shares outstanding as of December 31, (in thousands)
|
256,869
|
256,544
|
||||||||||||||||||||||||||||||||||
Special Items, pre-tax:
|
||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters
|
$
|
40
|
$
|
-
|
$
|
40
|
$
|
-
|
||||||||||||||||||||||||||||
Debt extinguishment costs
|
-
|
100
|
-
|
-
|
||||||||||||||||||||||||||||||||
Merger-related transaction costs
|
166
|
66
|
-
|
-
|
||||||||||||||||||||||||||||||||
Risk corridor allowance
|
124
|
-
|
124
|
-
|
||||||||||||||||||||||||||||||||
Total
|
$
|
330
|
$
|
166
|
$
|
164
|
$
|
-
|
CIGNA CORPORATION
|
||||||||||||||||||||||||||||||||||||
RECONCILIATION OF SHAREHOLDERS' NET INCOME (LOSS) TO ADJUSTED INCOME FROM OPERATIONS
|
||||||||||||||||||||||||||||||||||||
(Dollars in millions, except per share amounts)
|
||||||||||||||||||||||||||||||||||||
Global
|
Group
|
Corporate
|
||||||||||||||||||||||||||||||||||
Supplemental
|
Disability
|
and
|
||||||||||||||||||||||||||||||||||
Benefits
|
and Life
|
Other
|
||||||||||||||||||||||||||||||||||
Three Months Ended
|
4Q16
|
4Q15
|
3Q16
|
4Q16
|
4Q15
|
3Q16
|
4Q16
|
4Q15
|
3Q16
|
|||||||||||||||||||||||||||
Shareholders' net income (loss)
|
$
|
54
|
$
|
72
|
$
|
77
|
$
|
83
|
$
|
74
|
$
|
65
|
$
|
(92
|
)
|
$
|
(74
|
)
|
$
|
(99
|
)
|
|||||||||||||||
After-tax adjustments to reconcile to adjusted income from operations:
|
||||||||||||||||||||||||||||||||||||
Realized investment (gains) losses
|
5
|
(2
|
)
|
-
|
(14
|
)
|
9
|
(12
|
)
|
-
|
1
|
6
|
||||||||||||||||||||||||
Amortization of other acquired intangible assets, net
|
4
|
(16
|
)
|
4
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||
Special items:
|
||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Merger-related transaction costs
|
-
|
-
|
-
|
-
|
-
|
-
|
39
|
28
|
46
|
|||||||||||||||||||||||||||
Risk corridor allowance
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Adjusted income (loss) from operations
|
$
|
63
|
$
|
54
|
$
|
81
|
$
|
69
|
$
|
83
|
$
|
53
|
$
|
(53
|
)
|
$
|
(45
|
)
|
$
|
(47
|
)
|
|||||||||||||||
Weighted average shares (in thousands)
|
||||||||||||||||||||||||||||||||||||
Special Items, pre-tax:
|
||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||||
Merger-related transaction costs
|
-
|
-
|
-
|
-
|
-
|
-
|
43
|
31
|
49
|
|||||||||||||||||||||||||||
Risk corridor allowance
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
43
|
$
|
31
|
$
|
49
|
||||||||||||||||||
Global
|
Group
|
Corporate
|
||||||||||||||||||||||||||||||||||
Supplemental |
Disability
|
and
|
||||||||||||||||||||||||||||||||||
Benefits
|
and Life
|
Other
|
||||||||||||||||||||||||||||||||||
Year Ended December 31,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||||||||||||||
Shareholders' net income (loss)
|
$
|
268
|
$
|
267
|
$
|
164
|
$
|
328
|
$
|
(316
|
)
|
$
|
(295
|
)
|
||||||||||||||||||||||
After-tax adjustments to reconcile to adjusted income from operations:
|
||||||||||||||||||||||||||||||||||||
Realized investment (gains) losses
|
6
|
(1
|
)
|
(39
|
)
|
(4
|
)
|
2
|
(5
|
)
|
||||||||||||||||||||||||||
Amortization of other acquired intangible assets, net
|
20
|
(4
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||
Special Items:
|
||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Debt extinguishment costs
|
-
|
-
|
-
|
-
|
-
|
65
|
||||||||||||||||||||||||||||||
Merger-related transaction costs
|
-
|
-
|
-
|
-
|
147
|
57
|
||||||||||||||||||||||||||||||
Risk corridor allowance
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Adjusted income (loss) from operations
|
$
|
294
|
$
|
262
|
$
|
125
|
$
|
324
|
$
|
(167
|
)
|
$
|
(178
|
)
|
||||||||||||||||||||||
Weighted average shares (in thousands)
|
||||||||||||||||||||||||||||||||||||
Common shares outstanding as of December 31, (in thousands)
|
||||||||||||||||||||||||||||||||||||
Special Items, pre-tax:
|
||||||||||||||||||||||||||||||||||||
Charges associated with litigation matters
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||||||||||
Debt extinguishment costs
|
-
|
-
|
-
|
-
|
-
|
100
|
||||||||||||||||||||||||||||||
Merger-related transaction costs
|
-
|
-
|
-
|
-
|
166
|
66
|
||||||||||||||||||||||||||||||
Risk corridor allowance
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
166
|
$
|
166
|
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