This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cigna Reports Strong Third Quarter Results And Raises 2012 Outlook


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.

2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs