A.M. Best Rates CIGNA Debt; Affirms Financial Strength Ratings.

    Business Editors

    OLDWICK, N.J.--(BUSINESS WIRE)--April 4, 2000--A.M. Best Co. has
assigned an "a+" rating to the senior debt of the shelf securities
registered by CIGNA Corp., Philadelphia, and assigned an "a+" rating
to the company's existing senior debt. In addition, the financial
strength ratings of all of the group's life and health insurance
subsidiaries were affirmed. The currently unused shelf registration
provides for the issuance up to $1 billion in any combination of
senior, subordinated or subordinated-convertible debt securities,
preferred stock and common stock.
    The ratings reflect CIGNA's excellent financial flexibility,
supported by its moderate financial leverage--currently 19% of total
adjusted capital--and strong fixed coverage. A.M. Best expects total
borrowings, comprised of debt plus preferred stock, to remain between
15% and 25% of total capital. CIGNA's current interest coverage is
high and A.M. Best expects the debt service capability to be
sustainable. The ratings also reflect the company's leading market
share and franchise value in substantially all of its employee
benefits segments, diverse product and services offerings,
tightly-controlled risk profile and stable earnings.
    CIGNA's national presence and diverse portfolio of individualized
and integrated benefit plan offerings provide it with a significant
competitive advantage. Since the mid-1990s, this competitive advantage
has been built by sharpening its focus on employee benefits through
acquisitions and divestitures. When the individual and annuity
business had growth and profitability levels below management's
expectations they were sold. The 1999 divestiture of the
property/casualty lines eliminated their associated high earnings
volatility. In addition, the acquisition of Healthsource Inc. expanded
CIGNA's managed-care market share, increased its penetration in
certain regions and extended its reach into the mid-sized employer
market. The inherent risks of being major players in the health-care
arena are somewhat mitigated by the company's well-established
presence as a retirement services provider.
    CIGNA's solid, stable earnings reflect an efficient operating
platform, the unique liability characteristics of both retirement and
health-care product lines and excellent investment results. A balanced
mix of guaranteed cost, experience-rated and fee-based offerings
provide a risk profile lower than that of its peers and also produces
consistently strong earnings. The experience-rated pricing of most of
the products protects the company from credit, interest rate and
morbidity risks. The company has been able to maintain solid earnings
due to its wide array of products, scale of operations,
well-established provider networks and large national membership base.
    Partially offsetting these strengths are the challenges the
company faces in the increasingly competitive and rapidly changing
health-care and pensions markets. Increased competition from mutual
fund companies in the defined contribution market and CIGNA's client
companies merging with other companies have posed challenges in
maintaining the historically strong asset growth of CIGNA's group
pensions business. The success of broadening product offerings,
expanding distribution and bolstering administrative capabilities will
be critical to CIGNA's continued growth and the maintenance of a
strong operating performance.
    While divestitures have sharpened CIGNA's focus on high growth and
relatively low-risk core businesses, they have somewhat diminished the
diversity of the company's markets and sources of earnings. The
subsequent use of the sales proceeds for stock repurchases rather than
expanding the business has reduced its capital base. However, this
concern is somewhat mitigated by the company's excellent financial
flexibility, which could be utilized for raising capital under
adequate market conditions.
    CIGNA's balance sheet strength is excellent with capital and
surplus for each operating company adequate for its risk exposure and
supported by CIGNA's financial flexibility. Asset quality and
liquidity are appropriately managed for credit and interest rate risk
exposures, which are further mitigated by the company's emphasis on
experience rating.
    CIGNA Corp. is one of the largest publicly owned employee-benefits
organizations serving the United States and selected international
markets. As of Dec. 31, 1999, CIGNA Corp. had consolidated assets of
$95.3 billion and shareholders' equity of $6.1 billion.

The following debt ratings were assigned to the shelf registration:

--  CIGNA Corporation--senior debt rating of "a+"; subordinated debt
    rating of "a"; preferred stock rating of "a".

The following rating was assigned to existing debt:

--  CIGNA Corporation--senior debt rating of "a+".

The A+ (Superior) financial strength rating of the following members
of CIGNA Corp. was affirmed:

--  Connecticut General Life Insurance Co.
--  CIGNA Life Insurance Co.
--  CIGNA Life Insurance Company of New York
--  Life Insurance Company of North America

The A (Excellent) financial strength rating of the following members
of CIGNA Corp. was affirmed:

--  CIGNA HealthCare--Lovelace (New Mexico)
--  CIGNA HealthCare of Arizona Inc.
--  CIGNA HealthCare of California Inc.
--  CIGNA HealthCare of Florida Inc.
--  CIGNA HealthCare of New York Inc.
--  CIGNA HealthCare of Virginia Inc.
--  Healthsource New Hampshire
--  CIGNA HealthCare of New Jersey Inc.

The A- (Excellent) financial strength rating of the following members
of CIGNA Corp. was affirmed:

--  CIGNA HealthCare Mid-Atlantic Inc.
--  CIGNA HealthCare of Colorado Inc.
--  CIGNA HealthCare of Delaware Inc.
--  CIGNA HealthCare of Georgia Inc.
--  CIGNA HealthCare of Illinois Inc.
--  CIGNA HealthCare of Louisiana Inc.
--  CIGNA HealthCare of North Carolina Inc.
--  CIGNA HealthCare of Oklahoma Inc.
--  CIGNA HealthCare of Pennsylvania Inc.
--  CIGNA HealthCare of St. Louis Inc.
--  CIGNA HealthCare of Tennessee Inc.
--  CIGNA HealthCare of Utah Inc.
--  Healthsource Arkansas Inc.
--  Healthsource HMO of New York Inc.
--  Healthsource Indiana Managed Care Plan Inc.
--  Healthsource Kentucky Inc.
--  Healthsource Maine Inc.
--  Healthsource New York/New Jersey Inc.
--  Healthsource North Carolina Inc.
--  Healthsource South Carolina Inc.
--  CIGNA HealthCare of Connecticut Inc.
--  CIGNA HealthCare of Ohio Inc.
--  CIGNA HealthCare of Texas Inc.
--  CIGNA HealthCare of Massachusetts Inc.
*T

    A.M. Best Co., established in 1899, is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit A.M. Best's Web site at www.ambest.com.

    --30--emb/ny*

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