Segment Information

9 Months Ended

Sep. 30, 2013

Segment Information [Abstract]

Segment Information [Text Block]

Note 16 ― Segment Information

Effective December 31, 2012, Cigna changed its external reporting segments based on changes in its internal reporting structure that reflect the realignment of its businesses to better leverage distribution and service delivery capabilities for the benefit of its global clients and customers. The Company's results are now aggregated based on the nature of the Company's products and services, rather than its geographies. Prior period segment information has been conformed to the current presentation.

As a result of these changes, the financial results of Cigna's businesses are now reported in the following segments:

Global Health Care aggregates the following two operating segments:

• The Commercial operating segment includes both the U.S. commercial and international health care businesses that offer insured and self-insured medical, dental, behavioral health, vision, and prescription drug benefit plans, health advocacy programs and other products and services that may be integrated to provide comprehensive global health care benefit programs to employers and their employees, including globally mobile individuals. Cigna, either directly or through its partners, offers some or all of these products and servicesin all 50 states, the District of Columbia, the U.S. Virgin Islands, Canada, Europe, the Middle East, and Asia. Cigna services its globally mobile customers virtually everywhere in the world. Many of these products and services are offered through a variety of funding arrangements such as administrative services only (ASO), guaranteed cost and retrospectively experience rated.
• The Government operating segment offers Medicare Advantage plans to seniors in 15 states and the District of Columbia, Medicare Part D plans in all 50 states and the District of Columbia and Medicaid plans.

Global Supplemental Benefits includes supplemental health, life and accident insurance products offered in the U.S. and foreign markets, primarily in Asia as well as Medicare supplemental coverage following the 2012 acquisition of Great American Supplemental Benefits.

Group Disability and Life represents group disability, life and accident insurance products, including certain disability and life insurance business previously reported in the former Health Care segment.

Run-off Reinsurance is predominantly comprised of GMDB and GMIB business that was ceded to Berkshire on February 4, 2013.

The Company also reports results in two other categories.

Other Operations consist of:

• corporate-owned life insurance (“COLI”);
• deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business; and

• run-off settlement annuity business.

Corporate reflects amounts not allocated to other segments, such as net interest expense (defined as interest on corporate debt less net investment income on investments not supporting segment operations), interest on uncertain tax positions, certain litigation matters, intersegment eliminations, compensation cost for stock options, expense associated with the Company's frozen pension plans, certain corporate project costs and corporate overhead expenses such as directors' expenses.

The Company measures the financial results of its segments using “segment earnings (loss)”, which is defined as shareholders' net income (loss) excluding after-tax realized investment gains and losses.

Summarized segment financial information was as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(In millions)	2013		2012		2013		2012
Premiums and fees, Mail order pharmacy revenues and Other revenues
Global Health Care	$	6,230	$	5,771	$	18,698	$	16,936
Global Supplemental Benefits		638		500		1,872		1,410
Group Disability and Life		848		775		2,553		2,305
Run-off Reinsurance		-		(37)		(38)		(90)
Other Operations		38		36		114		114
Corporate		(12)		(16)		(35)		(50)
Total	$	7,742	$	7,029	$	23,164	$	20,625
Shareholders' net income
Global Health Care	$	424	$	377	$	1,230	$	1,021
Global Supplemental Benefits		39		34		143		104
Group Disability and Life		92		64		194		223
Run-off Reinsurance		-		25		(486)		(7)
Other Operations		35		22		74		63
Corporate		(54)		(63)		(167)		(203)
Segment earnings		536		459		988		1,201
Realized investment gains, net of taxes		17		7		127		16
Shareholders' net income	$	553	$	466	$	1,115	$	1,217

Concentration of risk.For theCompany's Global Supplemental Benefits segment, South Korea is the single largest geographic market. South Korea generated 50% of the segment's revenues and 84% of the segment's earnings for the nine months ended September 30, 2013. Due to the concentration of business in South Korea, the Global Supplemental Benefits segment is exposed to potential losses resulting from economic, regulatory and geopolitical developments in that country, as well as foreign currency movements affecting the South Korean currency, that could have a significant impact on the segment's results and the Company's consolidated financial results.For the nine months ended September 30, 2013, our Global Supplemental Benefits Segment operations in Korea represented4% of Cigna's total consolidated revenues and11% of Cigna's shareholders' net income.