A.M. Best Upgrades and Affirms Ratings of CIGNA Corporation and Its Subsidiaries; Revises Most Outlooks to Stable.

OLDWICK, N.J. -- A.M. Best Co. has upgraded the financial strength rating (FSR) to A (Excellent) from A- (Excellent) and the issuer credit ratings (ICR) to "a" from "a-" for the following insurance subsidiaries of CIGNA Corporation (CIGNA) (Philadelphia, PA) (NYSE: CI): Connecticut General Life Insurance Company, Life Insurance Company of North America and CIGNA Life Insurance Company of New York. Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and the ICR of "a-"of CIGNA Worldwide Insurance Company (Delaware). A.M. Best has also upgraded the ICR to "bbb" from "bbb-"and the outstanding senior notes and shelf registration of CIGNA. The outlook for the above ratings has been revised to stable from positive.

Additionally, A.M. Best has affirmed the FSRs of CIGNA's health maintenance organizations (HMOs) and its dental subsidiaries. The HMOs' outlook has been revised to stable from positive, while the dental outlook remains stable. (Please see link below for a detailed listing of the ratings.)

These rating actions affect approximately $1.5 billion of senior debt and indicative ratings for securities issuable under the shelf registration. CIGNA's key financial metrics are commensurate with its debt and FSRs. Financial leverage is currently over 25% and is expected to remain within a 25% to 30% range. Interest coverage--currently exceeding 19 times--is projected to remain strong in the near term.

CIGNA's life insurance subsidiaries continue to be the main driver of earnings for the corporation and also account for the majority of capitalization and debt service coverage. CIGNA's healthcare operating performance continues to be supported by good margins in the specialty product business including dental, life, disability, pharmacy and behavioral health, and medical management. CIGNA's diverse product portfolio is mostly a self funded business, which eliminates business risk that is experienced by CIGNA's peers and further supports CIGNA's ratings.

The healthcare market continues to become increasingly competitive, and further carrier consolidation is expected in the medium-term. In order to remain competitive, CIGNA must continue to strategically price its products and reduce its operating expenses, which are higher than its peers. However, any material, non-recurring charges for ongoing or discontinued operations could pressure debt ratings and FSRs.

For a complete listing of CIGNA Corporation's FSRs, ICRs and debt ratings, please visit www.ambest.com/press/121403cigna.pdf.

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.