EX-99.1 2 a12-17090_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Item 6. SELECTED FINANCIAL DATA

 

The Selected Financial Data reflects changes described in Item 8.01 of this Current Report on Form 8-K, and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and accompanying notes included elsewhere herein.

 

Highlights

 

(Dollars in millions, except per share amounts)

 

2011

 

2010

 

2009

 

2008

 

2007

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

Premiums and fees and other revenues

 

$

19,333

 

$

18,647

 

$

16,157

 

$

17,002

 

$

15,375

 

Net investment income

 

1,146

 

1,105

 

1,014

 

1,063

 

1,114

 

Mail order pharmacy revenues

 

1,447

 

1,420

 

1,282

 

1,204

 

1,118

 

Realized investment gains (losses)

 

62

 

75

 

(43

)

(170

)

16

 

Total revenues

 

$

21,988

 

$

21,247

 

$

18,410

 

$

19,099

 

$

17,623

 

Results of Operations:

 

 

 

 

 

 

 

 

 

 

 

Health Care

 

$

991

 

$

861

 

$

731

 

$

664

 

$

679

 

Disability and Life

 

287

 

291

 

284

 

273

 

254

 

International

 

219

 

177

 

173

 

147

 

138

 

Run-off Reinsurance

 

(183

)

26

 

185

 

(646

)

(11

)

Other Operations

 

89

 

85

 

86

 

87

 

109

 

Corporate

 

(184

)

(211

)

(142

)

(162

)

(97

)

Realized investment gains (losses), net of taxes and noncontrolling interest

 

41

 

50

 

(26

)

(110

)

10

 

Shareholders’ income from continuing operations

 

1,260

 

1,279

 

1,291

 

253

 

1,082

 

Income from continuing operations attributable to noncontrolling interest

 

1

 

4

 

3

 

2

 

3

 

Income from continuing operations

 

1,261

 

1,283

 

1,294

 

255

 

1,085

 

Income (loss) from discontinued operations, net of taxes

 

—

 

—

 

1

 

4

 

(5

)

Net income

 

$

1,261

 

$

1,283

 

$

1,295

 

$

259

 

$

1,080

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ income per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

4.65

 

$

4.69

 

$

4.71

 

$

0.91

 

$

3.78

 

Diluted

 

$

4.59

 

$

4.65

 

$

4.69

 

$

0.91

 

$

3.73

 

Shareholders’ net income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

4.65

 

$

4.69

 

$

4.71

 

$

0.93

 

$

3.76

 

Diluted

 

$

4.59

 

$

4.65

 

$

4.69

 

$

0.92

 

$

3.71

 

Common dividends declared per share

 

$

0.04

 

$

0.04

 

$

0.04

 

$

0.04

 

$

0.04

 

Total assets

 

$

50,697

 

$

45,393

 

$

42,794

 

$

41,206

 

$

39,884

 

Long-term debt

 

$

4,990

 

$

2,288

 

$

2,436

 

$

2,090

 

$

1,790

 

Shareholders’ equity

 

$

7,994

 

$

6,356

 

$

5,198

 

$

3,392

 

$

4,567

 

Per share

 

$

28.00

 

$

23.38

 

$

18.95

 

$

12.51

 

$

16.33

 

Common shares outstanding (in thousands)

 

285,533

 

271,880

 

274,257

 

271,036

 

279,588

 

Shareholders of record

 

8,178

 

8,568

 

8,888

 

9,014

 

8,696

 

Employees

 

31,400

 

30,600

 

29,300

 

30,300

 

26,600

 

 

Beginning in 2010, the Company began reporting the expense associated with its frozen pension plans in Corporate.  Prior periods were not restated.  The effect on prior periods was not material.

 

In 2008, the Company recorded significant charges related to the guaranteed minimum income benefits and guaranteed minimum death benefits businesses as well as an after-tax litigation charge of $52 million in Corporate related to the Cigna pension plan.

 

See Note 2 to the Consolidated Financial Statements for further discussion on changes to reported amounts as of December 31, 2011 and 2010 and for the years ended December 31, 2011, 2010, and 2009  resulting from the retrospective adoption of amended accounting guidance for deferred policy acquisition costs.

 

Adoption of the amended accounting guidance for deferred policy acquisition costs resulted in a reduction in both assets and shareholders’ equity of $219 million as of December 31, 2009.

 

The following table represents changes to reported amounts for the years ended December 31, 2008 and 2007.

 

5


 

Condensed Selected Financial Data

Year ended December 31, 2008

Highlights

 

 

 

 

 

Effect of

 

 

 

 

 

 

 

amended

 

As

 

 

 

As previously

 

accounting

 

retrospectively

 

(Dollars in millions, except per share data)

 

reported

 

guidance

 

adjusted

 

Revenues

 

 

 

 

 

 

 

Premiums and fees and other revenues

 

$

17,004

 

$

(2

)

$

17,002

 

Total revenues

 

$

19,101

 

$

(2

)

$

19,099

 

Results of Operations:

 

 

 

 

 

 

 

International

 

$

182

 

$

(35

)

$

147

 

Shareholders’ income from continuing operations

 

$

288

 

$

(35

)

$

253

 

Income from continuing operations

 

$

290

 

$

(35

)

$

255

 

Net Income

 

$

294

 

$

(35

)

$

259

 

Shareholders’ income per share from continuing operations:

 

 

 

 

 

 

 

Basic

 

$

1.04

 

$

(0.13

)

$

0.91

 

Diluted

 

$

1.03

 

$

(0.12

)

$

0.91

 

Shareholders’ net income per share:

 

 

 

 

 

 

 

Basic

 

$

1.05

 

$

(0.13

)

$

0.92

 

Diluted

 

$

1.05

 

$

(0.13

)

$

0.92

 

Total assets

 

$

41,406

 

$

(200

)

$

41,206

 

Shareholders’ equity

 

$

3,592

 

$

(200

)

$

3,392

 

Per share

 

$

13.25

 

$

(0.74

)

$

12.51

 

 

Condensed Selected Financial Data

Year ended December 31, 2007

Highlights

 

 

 

 

 

Effect of

 

 

 

 

 

 

 

amended

 

As

 

 

 

As previously

 

accounting

 

retrospectively

 

(Dollars in millions, except per share data)

 

reported

 

guidance

 

adjusted

 

Revenues

 

 

 

 

 

 

 

Premiums and fees and other revenues

 

$

15,376

 

$

(1

)

$

15,375

 

Total revenues

 

$

17,624

 

$

(1

)

$

17,623

 

Results of Operations:

 

 

 

 

 

 

 

International

 

$

176

 

$

(38

)

$

138

 

Shareholders’ income from continuing operations

 

$

1,120

 

$

(38

)

$

1,082

 

Income from continuing operations

 

$

1,123

 

$

(38

)

$

1,085

 

Net Income

 

$

1,118

 

$

(38

)

$

1,080

 

Shareholders’ income per share from continuing operations:

 

 

 

 

 

 

 

Basic

 

$

3.91

 

$

(0.13

)

$

3.78

 

Diluted

 

$

3.86

 

$

(0.13

)

$

3.73

 

Shareholders’ net income per share:

 

 

 

 

 

 

 

Basic

 

$

3.89

 

$

(0.13

)

$

3.76

 

Diluted

 

$

3.84

 

$

(0.13

)

$

3.71

 

Total assets

 

$

40,065

 

$

(181

)

$

39,884

 

Shareholders’ equity

 

$

4,748

 

$

(181

)

$

4,567

 

Per share

 

$

16.98

 

$

(0.65

)

$

16.33

 

 

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