Cigna Reports Strong Third Quarter Results And Raises 2012 Outlook

CONSOLIDATED HIGHLIGHTS

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.

HIGHLIGHTS OF SEGMENT RESULTS

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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