Cigna Reports Strong Full Year 2012 Results, Expects Continued Positive Momentum for 2013

Thu Feb 7, 2013 6:00am EST

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* Consolidated revenues for full year 2012 increased 33% to $29.1 billion.
* Adjusted income from operations1 for full year 2012 was $1.73 billion, or
$5.99 per share, which represents per share growth of 21% over 2011.
Shareholders` net income1 for full year 2012 was $1.62 billion, or $5.61 per
share.
* Cigna's global medical customer base grew by 1.4 million people during 2012,
reflecting strong growth across our Commercial and Government businesses,
including contributions from the HealthSpring acquisition.
* The Company increased its outlook for full year 2013 consolidated adjusted
income from operations1,3 to be in the range of $1.7 billion to $1.83 billion,
or $5.85 to $6.30 per share.

BLOOMFIELD, Conn.--(Business Wire)--
Cigna Corporation (NYSE: CI) today reported full year 2012 consolidated revenues
of $29.1 billion, an increase of 33% over 2011. Revenues reflect growth in
premiums and fees of 38% from ongoing operations, primarily driven by
contributions from the HealthSpring acquisition and continued organic growth in
targeted customer segments. 

"Cigna's operating performance in 2012 was strong, driven by effective execution
of our strategy and a consistent focus on delivering value for our customers,"
said David M. Cordani, President and Chief Executive Officer. "This focus on our
global customers and the disciplined management of our differentiated businesses
continues to drive our growth and positions Cigna well for attractive
performance in 2013 and beyond." 

Cigna`s adjusted income from operations1 for full year 2012 was $1.73 billion,
or $5.99 per share, compared with $1.36 billion, or $4.96 per share, for full
year 2011 which represents per share growth of 21% over 2011. For the fourth
quarter of 2012, adjusted income from operations1 was $452 million, or $1.57 per
share, compared to $293 million, or $1.05 per share, for the fourth quarter of
2011. 

Cigna reported full year 2012 shareholders` net income1 of $1.62 billion, or
$5.61 per share, compared with $1.26 billion, or $4.59 per share, for full year
2011. Shareholders` net income1 included income of $29 million, or $0.10 per
share, in 2012 and losses of $135 million, or $0.49 per share, in 2011 related
to the Guaranteed Minimum Income Benefits (GMIB)2,5 business within our Run-off
Reinsurance segment. Shareholders` net income1 also included special items4
which resulted in losses of $171 million, or $0.59 per share, in 2012 compared
to losses of $7 million, or $0.03 per share, in 2011. 

Cigna also reported fourth quarter 2012 shareholders` net income1 of $406
million, or $1.41 per share, compared with $273 million, or $0.98 per share, for
the fourth quarter of 2011. Shareholders` net income1 included income of $7
million, or $0.02 per share, in the fourth quarter of 2012 and income of $7
million, or $0.03 per share, in the same period of 2011 related to the Run-off
GMIB2,5 business. Shareholders` net income1 in the fourth quarter of 2012 also
included special items4 which resulted in losses of $68 million, or $0.24 per
share, related to litigation matters, compared to losses of $31 million, or
$0.11 per share, in the fourth quarter of 2011. 

CONSOLIDATED HIGHLIGHTS

The following table includes highlights of results anda reconciliation of
adjusted income from operations1 to shareholders` net income1 (dollars in
millions, except per share amounts; customers in thousands):

                                                                                                                                                     
                                                                                                                               Year                  
                                                         Three Months Ended                                                    Ended                 
                                                         December 31,                                  September 30,           December 31,          
                                                              2012                   2011                     2012                    2012           
 Total Revenues                                          $    7,620             $    5,425             $      7,323            $      29,119         
                                                                                                                                                     
 Consolidated Earnings                                                                                                                               
 Adjusted income from operations1                        $    452               $    293               $      489              $      1,734          
 Net realized investment gains (losses), net of taxes         15                     4                        7                       31             
 GMIB results, net of taxes2,5                                7                      7                        32                      29             
 Special items, net of taxes4                                 (68     )              (31     )                (62     )               (171    )      
 Shareholders` net income1                               $    406               $    273               $      466              $      1,623          
                                                                                                                                                     
 Adjusted income from operations1, per share             $    1.57              $    1.05              $      1.69             $      5.99           
 Shareholders` net income1, per share                    $    1.41              $    0.98              $      1.61             $      5.61           
                                                                                                                                                     
                                                         As of the Periods Ended                                                                     
                                                         December 31,                                  September 30,                                 
                                                              2012                   2011                     2012                                   
 Global Medical Customers                                     14,045                 12,680                   13,971                                 
                                                                                                                                                     


* Cash and short term investments at the parent company were approximately $700
million at December 31, 2012 and $3.8 billion at December 31, 2011. The 2011
balance included amounts held at year-end to fund the HealthSpring acquisition
that closed on January 31, 2012. 
* The Company repurchased6 approximately 4.4 million shares of stock for
approximately $210 million in 2012. 
* Effective in the fourth quarter of 2012, Cigna realigned its businesses to
better leverage distribution and service capabilities for the benefit of our
global clients and customers, which resulted in a change to Cigna's external
reporting segments. Results for all periods presented are now aggregated based
on the nature of the products and services delivered, rather than the
geographies in which we operate.

HIGHLIGHTS OF SEGMENT RESULTS

See Exhibit 2 for a reconciliation of adjusted income (loss) from operations1 to
segment earnings (loss)1. 

Global Health Care

This segment includes Cigna`s Commercial and Government businesses which deliver
medical and specialty health care products and services provided to clients and
customers on guaranteed cost, retrospectively experience-rated and service-only
funding bases. Specialty health care includes behavioral, dental, disease and
medical management, stop-loss, and pharmacy-related products and services. The
Global Health Care segment includes the business results previously reported in
the Health Care segment and Cigna`s international health care businesses,
primarily consisting of the expatriate benefits business, which was previously
included in the former International segment. 

Financial Results (dollars in millions, customers in thousands):

                                                                                                                                                 
                                                                                                                           Year                  
                                                          Three Months Ended                                               Ended                 
                                                          December 31,                             September 30,           December 31,          
                                                          2012                    2011                    2012             2012                  
 Premiums and Fees                                   $    5,399             $     3,645            $      5,307            $      20,973         
 Adjusted Income from Operations1                    $    397               $     240              $      419              $      1,480          
 Adjusted Margin, After-Tax7                              6.7     %               5.8    %                7.2     %               6.4     %      
                                                                                                                                                 
                                                     As of the Periods Ended                                                                     
                                                          December 31,                             September 30,                                 
 Customers:                                               2012              2011                          2012                                   
 Commercial (including international health care)         13,596            12,636                        13,530                                 
 Medicare and Medicaid                                    449               44                            441                                    
 Global Medical                                           14,045            12,680                        13,971                                 
                                                                                                                                                 
 Behavioral Care8                                         21,750            18,344                        21,544                                 
 Dental                                                   11,392            10,884                        11,387                                 
 Pharmacy                                                 6,772             6,368                         6,721                                  
 Medicare Part D                                          1,264             538                           1,265                                  
                                                                                                                                                 


* Overall, Global Health Care results reflect our strategic expansion into the
Seniors market through our acquisition of HealthSpring and growth in our
targeted customer segments. 
* Fourth quarter premiums and fees increased 48% relative to fourth quarter
2011, due to the contributions from the HealthSpring acquisition, organic
business growth, rate increases, and increased specialty penetration, which
reflects a continued shift by clients to our Administrative Services Only
("ASO") solutions. 
* Fourth quarter 2012 adjusted income from operations1 reflects continued growth
in targeted medical and specialty businesses, favorable medical costs and
continued operating expense leverage, while continuing to make strategic
investments to support future growth. 
* Third quarter 2012 segment margins7 are higher than fourth quarter 2012 and
2011 primarily as a result of favorable pharmacy results and medical costs. 
* Global Health Care medical claims payable9 was approximately $1.61 billion at
December 31, 2012 and $1.06 billion at December 31, 2011, including
international health care. The increase in the December 31, 2012 balance is
primarily attributable to the HealthSpring acquisition.

Global Supplemental Benefits

This segment includes Cigna`s supplemental health, life, and accident insurance,
including Medicare supplement coverage, in the U.S. and in foreign markets,
primarily in Asia. These results, along with the international health care
results, were previously reported in the former International segment. 

Financial Results (dollars in millions, policies in thousands):

                                                                                                                               
                                                                                                          Year                 
                                          Three Months Ended                                              Ended                
                                          December 31,                            September 30,           December 31,         
                                          2012                   2011                    2012             2012                 
 Premiums and Fees                   $    592               $    410              $      493              $      1,984         
 Adjusted Income from Operations1    $    38                $    15               $      40               $      148           
 Adjusted Margin, After-Tax7              6.1     %              3.5    %                7.7    %                7.1    %      
                                                                                                                               
                                     As of the Periods Ended                                                                   
                                          December 31,                            September 30,                                
                                          2012                   2011                    2012                                  
 Policies8 (excluding China JV)           11,436                 9,106                   9,438                                 
                                                                                                                               


* Fourth quarter premium and fees grew 44% relative to fourth quarter 2011,
reflecting recent acquisitions and attractive customer retention and business
growth, primarily in Korea. 
* Fourth quarter 2012 adjusted income from operations1 reflects the impact of
strong customer retention and business growth and favorable claim experience,
particularly in our Korean and U.S. operations. 
* Fourth quarter 2011 segment margins7 reflect increased strategic investments
in product and geographic expansion initiatives, costs to streamline operations,
and the unfavorable impact of changes in foreign tax law. 
* The sequential increase in policies as of December 31, 2012 reflects the
acquisitions of the Turkey joint venture and Great American Supplemental
Benefits.

Group Disability and Life

This segment includes Cigna`s group disability, life, and accident insurance
operations, including certain disability and life insurance business previously
reported in the former Health Care segment. 

Financial Results (dollars in millions):

                                                                                                                        
                                                                                                   Year                 
                                        Three Months Ended                                         Ended                
                                        December 31,                        September 30,          December 31,         
                                        2012                 2011                  2012            2012                 
 Premiums and Fees                   $  804             $    697            $      775             $      3,109         
 Adjusted Income from Operations1    $  56              $    58             $      66              $      281           
 Adjusted Margin, After-Tax7            6.4   %              7.5   %               7.8    %               8.2    %      
                                                                                                                        


* Adjusted income from operations1 and segment margins7 for the fourth quarter
of 2012 reflect the effect of unfavorable claims experience in the disability
business and favorable life claims experience. 
* Adjusted income from operations1 for the third quarter of 2012 includes a $5
million after-tax favorable impact related to reserve studies.

Other Segments

Adjusted income (loss) from operations1 for Cigna's remaining operations is
presented below (dollars in millions):

                                                                                                             
                                                                                        Year                 
                             Three Months Ended                                         Ended                
                             December 31,                        September 30,          December 31,         
                             2012                 2011                  2012            2012                 
 Run-off Reinsurance 2    $  -               $    (1    )        $      (7     )        $      (29    )      
 Other Operations         $  19              $    21             $      22              $      82            
 Corporate                $  (58   )         $    (40   )        $      (51    )        $      (228   )      
                                                                                                             


* During the first quarter of 2013, Cigna entered into a definitive agreement
with Berkshire Hathaway to exit the Run-off Reinsurance businesses. Cigna will
fund the transaction with an incremental $100 million of parent company cash,
approximately $1.8 billion of investment assets supporting the run-off
businesses, and an estimated $300 million tax benefit associated with the
transaction. As a result of this transaction, Cigna expects to record an
after-tax charge of $500 million as a special item in the first quarter of
2013.

OUTLOOK

* Cigna increased its outlook for full year 2013 consolidated adjusted income
from operations1,3 to be in the range of $1.70 billion to $1.83 billion, or
$5.85 to $6.30 per share.

                                                                                     
                                                                  Full-Year Ended    
 (dollars in millions, except per share amounts)                  December 31, 2013  
                                                                                     
 Adjusted income (loss) from operations1,3                                           
 Global Health Care                                            $  1,430 to 1,520     
 Global Supplemental Benefits                                     160 to 180         
 Group Disability and Life                                        270 to 290         
 Ongoing Businesses                                            $  1,860 to 1,990     
                                                                                     
 Corporate and other                                              (160)              
 Consolidated                                                  $  1,700 to 1,830     
                                                                                     
 Consolidated Adjusted income from operations, per share1,3    $  5.85 to 6.30       
                                                                                     
 Global medical customer growth                                   1% to 2%           
                                                                                     


* Cigna`s outlook excludes the potential effects of future capital deployment6. 
* Cigna`s earnings and per share outlooks are based on adjusted income (loss)
from operations1, which is defined as segment earnings (loss) excluding special
items and the results of Cigna's GMIB2,5 business. As a result, Cigna's 2013
outlook does not include the expected after-tax charge of $500 million related
to the transaction to exit its Run-off operations. 
* 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.

The foregoing statements represent management`s current estimate of Cigna`s 2013
consolidated and segment adjusted income from operations1,3 as of the date of
this release. Actual results may differ materially depending on a number of
factors, and investors are urged to read the Cautionary Statement included in
this release for a description of those factors. Management does not assume any
obligation to update these estimates. 

This quarterly earnings release and the Quarterly Financial Supplement are
available on Cigna`s website in the Investor Relations section
(http://www.cigna.com/aboutus/investor-relations). A link to the conference
call, during which management will review fourth quarter and full year 2012
results and discuss full year 2013 outlook is available in the Investor
Relations section of Cigna`s website
(http://www.cigna.com/aboutcigna/investors/events/index.page).

                                                                                                                                                                                 
 Notes:                                                                                                                                                                          
                                                                                                                                                                                 
 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    
       results. Adjusted income (loss) from operations is defined as segment earnings (loss) excluding special items (which are identified and quantified in Note 4) and the     
       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. This measure is 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) and shareholders` net income; see Exhibits 1 and 2 for reconciliations of the non-GAAP measure to the most directly comparable GAAP measures.             
                                                                                                                                                                                 
       Effective December 31, 2012, Cigna made changes to external reporting segments to reflect the Company`s realignment of its businesses to leverage distribution and service 
       delivery capabilities for the benefit of our global clients and customers. Prior period amounts have been presented on a comparable basis.                                
                                                                                                                                                                                 
 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.                                                                                  
                                                                                                                                                                                 
       During the first quarter of 2013, Cigna entered into a definitive agreement with Berkshire Hathaway to exit the Run-off Reinsurance businesses.                           
                                                                                                                                                                                 
 3.    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 2013 will include an after-tax     
       charge of $500 million related to the transaction to exit the GMIB and VADBe businesses 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 2013 special items.          
                                                                                                                                                                                 
 4.    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:                                                                                                                                                          
                                                                                                                                                                                 
       Fourth Quarter 2012                                                                                                                                                       
       -- After-tax loss of $68 million related to litigation matters.                                                                                                           
                                                                                                                                                                                 
       Third Quarter 2012                                                                                                                                                        
       -- 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, Inc. ("HealthSpring").                                            
                                                                                                                                                                                 
       First Quarter 2012                                                                                                                                                        
       -- 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.                                                                                                          
                                                                                                                                                                                 
       Fourth Quarter 2011                                                                                                                                                       
       -- 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").                                                                                               
                                                                                                                                                                                 
 5.    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 Cigna`s obligations, which could result in a material adverse or 
       favorable impact on the Run-off Reinsurance segment and Cigna`s results of operations.                                                                                    
                                                                                                                                                                                 
 6.    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.                                                                  
                                                                                                                                                                                 
 7.    Adjusted margins in this press release are calculated by dividing adjusted income from operations1 by segment revenues. For the three months ended September 30, 2012 and 
       year ended December 31, 2012, segment margins including special items were 6.5% and 6.1% for Global Health Care, respectively, 6.5% and 6.8% for Global Supplemental      
       Benefits, respectively, and 7.5% and 8.2% for Group Disability and Life, respectively. For the three months ended December 31, 2011, segment margins including special    
       items were 2.8% for Global Supplemental Benefits.                                                                                                                         
                                                                                                                                                                                 
 8.    The number of customers and policies reported in prior periods has been adjusted to conform to the current basis of reporting.                                            
                                                                                                                                                                                 
 9.    Global Health Care medical claims payable are presented net of reinsurance and other recoverables. The gross Global Health Care medical claims payable balance was $1,856 
       million as of December 31, 2012 and $1,305 million as of December 31, 2011.                                                                                               
                                                                                                                                                                                 


CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE
SECURITIES LITIGATION REFORM ACT OF 1995

Cigna Corporation and its subsidiaries (the "Company") and its representatives
may from time to time make written and oral forward-looking statements,
including statements contained in press releases, in the Company`s filings with
the Securities and Exchange Commission, in its reports to shareholders and in
meetings with analysts and investors. Forward-looking statements may contain
information about financial prospects, economic conditions, trends and other
uncertainties. These forward-looking statements are based on management`s
beliefs and assumptions and on information available to management at the time
the statements are or were made. Forward-looking statements include, but are not
limited to, the information concerning possible or assumed future business
strategies, financing plans, competitive position, potential growth
opportunities, potential operating performance improvements, trends and, in
particular, the Company`s strategic initiatives, litigation and other legal
matters, operational improvement initiatives in the Global Health Care
operations, and the outlook for the Company`s full year 2013 and beyond results.
Forward-looking statements include all statements that are not historical facts
and can be identified by the use of forward-looking terminology such as the
words "believe", "expect", "plan", "intend", "anticipate", "estimate",
"predict", "potential", "may", "should" or similar expressions. 

By their nature, forward-looking statements: (i) speak only as of the date they
are made, (ii) are not guarantees of future performance or results and (iii) are
subject to risks, uncertainties and assumptions that are difficult to predict or
quantify. Therefore, actual results could differ materially and adversely from
those forward-looking statements as a result of a variety of factors. Some
factors that could cause actual results to differ materially from the
forward-looking statements include:

                                                                                                                                                                                  
 1.     increased medical costs that are higher than anticipated in establishing premium rates in the Company`s Global Health Care operations, including increased use and costs  
        of medical services;                                                                                                                                                      
 2.     increased medical, administrative, technology or other costs resulting from new legislative and regulatory requirements imposed on the Company`s businesses;              
 3.     challenges and risks associated with implementing 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 members and health 
        care professionals using effective technology solutions, and (vi) lowering administrative costs;                                                                          
 4.     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;                                                                                                                      
 5.     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;             
 6.     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 market     
        segment and the Company`s other market segments, including through successful execution of the Company`s physician engagement strategy;                                   
 7.     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;                                                                                                                                                              
 8.     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;                                                                           
 9.     heightened competition, particularly price competition, that could reduce product margins and constrain growth in the Company`s businesses, primarily the Global Health   
        Care business;                                                                                                                                                            
 10.    risks associated with the Company`s mail order pharmacy business that, among other things, includes any potential operational deficiencies or service issues as well as   
        loss or suspension of state pharmacy licenses;                                                                                                                            
 11.    significant changes in interest rates or sustained deterioration in the commercial real estate markets;                                                                   
 12.    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 or adjustments to the assumptions used in estimating liabilities for the Company`s reinsurance contracts, 
        that could result in increased statutory reserves or capital requirements of the Company`s insurance subsidiaries;                                                        
 13.    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;                                                                    
 14.    risks associated with the reinsurance transaction for the run-off guaranteed minimum death benefits and guaranteed minimum income benefits businesses, including the risk 
        that future liabilities exceed the cap under the reinsurance agreement or that the reinsurance does not otherwise provide adequate protection;                            
 15.    significant stock market declines, that could, among other things, impact the Company`s pension plans in future periods as well as the recognition of additional pension  
        obligations;                                                                                                                                                              
 16.    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;                                                                                                                                            
 17.    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);                                                                                                                                       
 18.    amendments to income tax laws, that could affect the taxation of employer-provided benefits and the taxation of certain insurance products such as corporate-owned life   
        insurance;                                                                                                                                                                
 19.    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;                                                                                                                                                     
 20.    risks associated with security or interruption of information systems, that could, among other things, cause operational disruption;                                      
 21.    challenges and risks associated with the successful management of the Company`s outsourcing projects or key vendors; and                                                  
 22.    the unique political, legal, operational, regulatory and other challenges associated with expanding our business globally.                                                


This list of important factors is not intended to be exhaustive. Other sections
of the Company`s most recent Annual Report on Form 10-K, including the "Risk
Factors" section, the Quarterly Report on Form 10-Q for the quarters ended March
31, June 30, 2012 and September 30, 2012, the Current Report on Form 8-K filed
on August 8, 2012, and other documents filed with the Securities and Exchange
Commission include both expanded discussion of these factors and additional risk
factors and uncertainties that could preclude the Company from realizing the
forward-looking statements. The Company does not assume any obligation to update
any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.

                                                                                                                                                                                  
 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,                          
                                                                                    2012                             2011                       2012                 2011         
                                                                                                                                                                                  
 REVENUES                                                                                                                                                                         
                                                                                                                                                                                  
 Premiums and fees                                                          $       6,827                    $       4,787                  $   26,187           $   18,966       
 Net investment income                                                              290                              286                        1,144                1,146        
 Mail order pharmacy revenues                                                       434                              391                        1,623                1,447        
 Other revenues                                                                     58                               55                         240                  248          
 Total operating revenues                                                           7,609                            5,519                      29,194               21,807       
 Run-off Reinsurance hedge loss (1)                                                 (13      )                       (100     )                 (119     )           (4       )   
 Net realized investment gains                                                      24                               6                          44                   62           
                                                                                                                                                                                  
 Total                                                                      $       7,620                    $       5,425                  $   29,119           $   21,865       
                                                                                                                                                                                  
 ADJUSTED INCOME (LOSS) FROM OPERATIONS (2)                                                                                                                                       
                                                                                                                                                                                  
 Global Health Care                                                         $       397                      $       240                    $   1,480            $   1,104        
 Global Supplemental Benefits                                                       38                               15                         148                  100          
 Group Disability and Life                                                          56                               58                         281                  290          
 Run-off Reinsurance                                                                -                                (1       )                 (29      )           (48      )   
 Other Operations                                                                   19                               21                         82                   85           
 Corporate                                                                          (58      )                       (40      )                 (228     )           (170     )   
                                                                                                                                                                                  
 Total                                                                      $       452                      $       293                    $   1,734            $   1,361        
                                                                                                                                                                                  
 SHAREHOLDERS' NET INCOME                                                                                                                                                         
                                                                                                                                                                                  
 Segment Earnings (Loss)                                                                                                                                                          
 Global Health Care (4)(5)(6)(8)                                            $       397                      $       240                    $   1,418            $   1,105        
 Global Supplemental Benefits (4)(7)                                                38                               12                         142                  97           
 Group Disability and Life (4)(8)                                                   56                               58                         279                  295          
 Run-off Reinsurance                                                                7                                6                          -                    (183     )   
 Other Operations (8)                                                               19                               21                         82                   89           
 Corporate (3)(5)(7)(8)                                                             (126     )                       (68      )                 (329     )           (184     )   
                                                                                                                                                                                  
 Total                                                                              391                              269                        1,592                1,219        
 Net realized investment gains, net of taxes                                        15                               4                          31                   41           
                                                                                                                                                                                  
 Shareholders' net income                                                   $       406                      $       273                    $   1,623            $   1,260        
                                                                                                                                                                                  
                                                                                                                                                                                  
 DILUTED EARNINGS PER SHARE:                                                                                                                                                      
                                                                                                                                                                                  
 Adjusted income from operations (2)                                        $       1.57                     $       1.05                   $   5.99             $   4.96         
 Results of guaranteed minimum income benefits business, after-tax                  0.02                             0.03                       0.10                 (0.49    )   
 Net realized investment gains, net of taxes                                        0.06                             0.01                       0.11                 0.15         
 Special item(s), after-tax (3)(4)(5)(6)(7)(8)                                      (0.24    )                       (0.11    )                 (0.59    )           (0.03    )   
 Shareholders' net income                                                   $       1.41                     $       0.98                   $   5.61             $   4.59         
 Weighted average shares (in thousands)                                             288,710                          278,290                    289,530              274,249      
                                                                                                                                                                                  
 SHAREHOLDERS' EQUITY at December 31,                                                                                                       $   9,769            $   7,994        
                                                                                                                                                                                  
                                                                                                                                                                                  
 SHAREHOLDERS' EQUITY PER SHARE at December 31,                                                                                             $   34.18            $   28.00        


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 Effective December 31, 2012, Cigna changed its external reporting segments. The primary change is that the two businesses that comprised the former International segment (international health care and supplemental health, life and accident) are now reported as follows: 1) substantially all of the international health care business (comprised primarily of the global health benefits business) is now combined with the former Health Care segment and renamed Global Health Care; and 2) the supplemental health,     
 life and accident business becomes a separate reporting segment named the Global Supplemental Benefits segment. In addition, certain disability and life products, previously reported in the former Health Care segment, are now reported in the Group Disability and Life segment. Prior period segment information has been conformed to the current reporting segments. See Cigna's Form 8-K filed on January 24, 2013 for additional information.                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 Cigna acquired several businesses during 2012, including: The Turkey joint venture (JV) on November 9 for approximately $116 million, Great American Supplemental Benefits on August 31 for approximately $326 million, and HealthSpring on January 31 for approximately $3.8 billion. The financial results of these acquisitions are included in results from the date of acquisition. The Turkey JV and Great American Supplemental Benefits are included in the Global Supplemental Benefits segment and HealthSpring is      
 included in the Global Health Care segment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (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-K for the period ended December 31, 2012, which is expected to be filed on February 28, 2013.  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (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 year ended December 31, 2012 includes pre-tax charges of $104 million ($68 million after-tax) resulting from litigation matters in Corporate.                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (4)    The year ended December 31, 2012 includes pre-tax charges of $77 million ($50 million after-tax) for a realignment and efficiency plan: $65 million pre-tax ($42 million after-tax) in Global Health Care; $9 million pre-tax ($6 million after-tax) in Global Supplemental Benefits; and $3 million pre-tax ($2 million after-tax) in Group Disability and Life.                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (5)    The year ended December 31, 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 Global Health Care.                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (6)    The year ended December 31, 2012 includes a pre-tax charge of $20 million ($13 million after-tax) resulting from a litigation matter in Global Health Care.                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (7)    The three months and year ended December 31, 2011 includes pre-tax charges of $39 million ($31 million after-tax) for costs associated with acquisitions: $35 million pre-tax ($28 million after-tax) in Corporate for the 2012 acquisition of HealthSpring and $4 million pre-tax ($3 million after-tax) in Global Supplemental Benefits for the 2011 acquisition of FirstAssist Group Holdings Limited ("FirstAssist").                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (8)    The year ended December 31, 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 Global Health Care; after-tax benefit of $5 million in Group Disability and Life; after-tax benefit of $4 million ($9 million pre-tax charge) 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                                                                                                                         Global                                              Global Supplemental                               Group Disability                                Run-off                                           Other                                                                                     
                                                                   Earnings Per Share                                                       Consolidated                                           Health Care                                         Benefits                                          and Life                                        Reinsurance                                       Operations                                Corporate                                       
 Three Months Ended,                                               4Q12                     4Q11                     3Q12                   4Q12               4Q11             3Q12               4Q12               4Q11          3Q12               4Q12              4Q11            3Q12            4Q12              4Q11          3Q12            4Q12              4Q11            3Q12            4Q12           4Q11          3Q12         4Q12             4Q11             3Q12          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Adjusted income (loss) from operations (1)                        $     1.57               $     1.05               $     1.69             $   452            $   293          $   489            $   397            $    240      $   419            $   38            $   15          $   40          $   56            $    58       $   66          $   -             $   (1  )       $   (7    )     $    19        $    21       $    22      $   (58   )      $   (40  )       $   (51   )   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Results of guaranteed minimum income benefits business (2)              0.02                     0.03                     0.11                 7                  7                32                 -                   -            -                  -                 -               -               -                  -            -               7                 7               32               -              -             -           -                -                -         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Special item(s), after-tax:                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 Charges associated with litigation matters (3)                          (0.24  )                 -                        -                    (68    )           -                -                  -                   -            -                  -                 -               -               -                  -            -               -                 -               -                -              -             -           (68   )          -                -         
 Charge for realignment and efficiency plan (4)                          -                        -                        (0.17  )             -                  -                (50    )           -                   -            (42    )           -                 -               (6    )         -                  -            (2    )         -                 -               -                -              -             -           -                -                -         
 Costs associated with acquisitions (5)(7)                               -                        (0.11  )                 (0.04  )             -                  (31  )           (12    )           -                   -            -                  -                 (3  )           -               -                  -            -               -                 -               -                -              -             -           -                (28  )           (12   )   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Segment earnings (loss)                                                 1.35                     0.97                     1.59                 391                269              459            $   397            $    240      $   377            $   38            $   12          $   34          $   56            $    58       $   64          $   7             $   6           $   25          $    19        $    21       $    22      $   (126  )      $   (68  )       $   (63   )   
 Net realized investment gains, net of taxes                             0.06                     0.01                     0.02                 15                 4                7                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Shareholders' net income                                          $     1.41               $     0.98               $     1.61             $   406            $   273          $   466                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                   Diluted                                                                                                                         Global                                              Global Supplemental                               Group Disability                                Run-off                                           Other                                                                                     
                                                                   Earnings Per Share                                                       Consolidated                                           Health Care                                         Benefits                                          and Life                                        Reinsurance                                       Operations                                                 Corporate                      
 Year Ended December 31,                                                 2012                                              2011                 2012                                2011               2012                             2011               2012                              2011            2012                            2011            2012                              2011             2012                         2011        2012                              2011      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Adjusted income (loss) from operations (1)                        $     5.99                                        $     4.96             $   1,734                           $   1,361          $   1,480                        $   1,104          $   148                           $   100         $   281                         $   290         $   (29   )                       $   (48   )     $    82                      $    85      $   (228  )                       $   (170  )   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Results of guaranteed minimum income benefits business (2)              0.10                                              (0.49  )             29                                  (135   )           -                                -                  -                                 -               -                               -               29                                (135  )          -                            -           -                                 -         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Special item(s), after-tax:                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
 Charges associated with litigation matters (3)(6)                       (0.28  )                                          -                    (81    )                            -                  (13    )                         -                  -                                 -               -                               -               -                                 -                -                            -           (68   )                           -         
 Charge for realignment and efficiency plan (4)                          (0.17  )                                          -                    (50    )                            -                  (42    )                         -                  (6    )                           -               (2    )                         -               -                                 -                -                            -           -                                 -         
 Costs associated with acquisitions (5)(7)                               (0.14  )                                          (0.12  )             (40    )                            (31    )           (7     )                         -                  -                                 (3    )         -                               -               -                                 -                -                            -           (33   )                           (28   )   
 Completion of IRS examination (8)                                       -                                                 0.09                 -                                   24                 -                                1                  -                                 -               -                               5               -                                 -                -                            4           -                                 14        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Segment earnings (loss)                                                 5.50                                              4.44                 1,592                               1,219          $   1,418                        $   1,105          $   142                           $   97          $   279                         $   295         $   -                             $   (183  )     $    82                      $    89      $   (329  )                       $   (184  )   
 Net realized investment gains, net of taxes                             0.11                                              0.15                 31                                  41                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 Shareholders' net income                                          $     5.61                                        $     4.59             $   1,623                           $   1,260                                                                                                                                                                                                                                                                                                            


                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (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.                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (2)    Results of guaranteed minimum income benefits business on a pre-tax basis for:                                                                                                                                                                                                                                                                                                                                             
        - three months and year ended December 31, 2012 were gains of $10 million and $44 million, respectively;                                                                                                                                                                                                                                                                                                                   
        - three months and year ended December 31, 2011 were gains of $11 million and losses of $208 million, respectively; and                                                                                                                                                                                                                                                                                                    
        - three months ended September 30, 2012 were gains of $50 million.                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (3)    The three months and year ended December 31, 2012 includes pre-tax charges of $104 million ($68 million after-tax) resulting from litigation matters in Corporate.                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (4)    The year ended December 31, 2012 includes pre-tax charges of $77 million ($50 million after-tax) for a realignment and efficiency plan: $65 million pre-tax ($42 million after-tax) in Global Health Care; $9 million pre-tax ($6 million after-tax) in Global Supplemental Benefits; and $3 million pre-tax ($2 million after-tax) in Group Disability and Life.                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (5)    The year ended December 31, 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 Global Health Care.                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (6)    The year ended December 31, 2012 includes a pre-tax charge of $20 million ($13 million after-tax) resulting from a litigation matter in Global Health Care.                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (7)    The three months and year ended December 31, 2011 includes pre-tax charges of $39 million ($31 million after-tax) for costs associated with acquisitions: $35 million pre-tax ($28 million after-tax) in Corporate for the 2012 acquisition of HealthSpring and $4 million pre-tax ($3 million after-tax) in Global Supplemental Benefits for the 2011 acquisition of FirstAssist Group Holdings Limited ("FirstAssist").  
                                                                                                                                                                                                                                                                                                                                                                                                                                   
 (8)    The year ended December 31, 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 Global Health Care; after-tax benefit of $5 million in Group Disability and Life; after-tax benefit of $4 million ($9 million pre-tax charge) in Other Operations and an after-tax benefit of $14 million in Corporate.                 


Cigna Corporation
Ted Detrick, Investor Relations, 215-761-1414
Edwin.Detrick@Cigna.com
or
Matthew Asensio, Media Relations, 860-226-2599
Matthew.Asensio@Cigna.com



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