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Cigna Reports Strong Third Quarter Results And Raises 2012 Outlook

Stocks in this article: CI


The following table includes highlights of results and a reconciliation of adjusted income from operations 1 to shareholders’ net income 1 (dollars in millions, except per share amounts; customers in thousands):

Nine Months
Three Months Ended Ended
September 30,   June 30, September 30,
2012   2011   2012 2012
Total Revenues $ 7,358   $ 5,610 $ 7,457 $ 21,603
Consolidated Earnings
Adjusted income from operations 1 $ 489 $ 308 $ 434 $ 1,282
Net realized investment gains (losses), net of taxes 7 9 (3) 16
GMIB results, net of taxes 2,5 32 (134) (51) 22
Special items, net of taxes 4   (62)     -     -   (103)
Shareholders’ net income 1 $ 466   $ 183   $ 380 $ 1,217
Adjusted income from operations 1, per share $ 1.69   $ 1.13   $ 1.49 $ 4.42
Shareholders’ net income 1, per share $ 1.61   $ 0.67   $ 1.31 $ 4.20
As of the Periods Ended
September 30, June 30, December 31,
Medical Customers 2012   2011   2012   2011
U.S. Health Care 12,731 11,471 12,619 11,483
International (Global Health Benefits & Health Care)   1,240     1,196     1,224     1,197
  13,971     12,667     13,843     12,680
  • Cash and short term investments at the parent company were approximately $435 million at September 30, 2012 and $3.8 billion at December 31, 2011, which included amounts held at year-end to fund the HealthSpring acquisition that closed on January 31, 2012.
  • As of November 1, 2012, the Company repurchased 6 approximately 4.4 million shares of stock for approximately $210 million.
  • Consistent with our strategy to deliver differentiated value and affordable solutions for our customers and clients, we have initiated a series of actions to improve our organizational alignment, operational effectiveness, and efficiency, resulting in a $50 million after-tax charge which is reported as a special item. We expect the impact of these actions to reduce annualized operating expenses by approximately $60 million after taxes. The majority of the expense savings is expected to be reinvested in the business to further our differentiated programs that improve the health, well-being and sense of security of our customers.


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

Health Care

This segment includes medical and specialty health care products and services provided 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.

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