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CIGNA Corp. Reports Operating Results (10-K)

February 23, 2012 | About:


CIGNA Corp. (CI) filed Annual Report for the period ended 2011-12-31.

Cigna Corp has a market cap of $12.83 billion; its shares were traded at around $44.83 with a P/E ratio of 8.6 and P/S ratio of 0.6. The dividend yield of Cigna Corp stocks is 0.1%. Cigna Corp had an annual average earning growth of 3% over the past 5 years.

Highlight of Business Operations:

Segment earnings increased 2% in 2010 compared to 2009 reflecting 4% higher adjusted income from operations partially offset by the absence of a $5 million favorable special item related to the completion of the 2005 and 2006 IRS examinations. Adjusted income from operations increased as a result of higher net investment income and the $11 million after-tax gain on the sale of the workers’ compensation and case management business.

Segment earnings declined significantly in 2010 compared with 2009, primarily due to the reduction in earnings from the GMIB business, partially offset by the gain resulting from the resolution of a federal tax matter and reduced charges in 2010 to strengthen GMDB reserves ($34 million after-tax for 2010, compared to $47 million after-tax for 2009).

The increase in benefits expense in 2011 reflects significantly more unfavorable equity market conditions in 2011 compared to 2010 and 2009. Due to the additional growth interest rate hedge in 2011, the expense included additional amounts due to declines in interest rates for the liability that is subject to the growth interest rate hedge. As explained in Other revenues above, these changes do not affect shareholders’ net income because they are offset by gains or losses on futures contracts used to hedge equity market performance.

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