A.M. Best Comments on CIGNA's Acquisition of Star HRG from HealthMarkets, Inc.

OLDWICK, N.J. -- A.M. Best Co. has commented that all financial strength and debt ratings of CIGNA Corporation's (CIGNA) (NYSE: CI) (Philadelphia, PA) insurance subsidiaries and HMOs remain unchanged following the announcement of CIGNA's acquisition of Star HRG from HealthMarkets, Inc. Financial details regarding the transaction will not be disclosed to the general public.

The acquisition of Star HRG is viewed positively by A.M. Best. Star HRG is the nation's largest provider of limited benefit medical plans for non-benefited hourly employees. Plan benefits offered by Star HRG are designed to meet the needs of entry level, high turnover hourly and part-time employees. A.M. Best views the acquisition as a strategic fit in CIGNA's healthcare business model, as it allows CIGNA to enter a niche market in which it had previously not been involved. This new business segment is also viewed as a possibility for CIGNA to obtain additional market share in the middle market and national account business.

CIGNA's healthcare membership base has remained stable with modest growth (i.e., 1% to 2%) projected for 2006. The acquisition of Star HRG will add approximately 200,000 members to the membership base. CIGNA's profitable and diverse health care product portfolio is complemented by favorable returns from the specialty health services, disability and life and international businesses.

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