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CIGNA REPORTS 1991 RESULTS

 CIGNA REPORTS 1991 RESULTS
 PHILADELPHIA, Feb. 13 /PRNewswire/ -- CIGNA Corporation (NYSE: CI)


today reported consolidated net income of $449 million ($6.28 per share) for 1991, compared with $330 million ($4.36 per share) a year ago.
 For the fourth quarter of 1991, consolidated net income was $108 million ($1.51 per share), compared with $119 million ($1.66 per share) a year ago.
 "Our employee benefits, pension and individual life insurance businesses reported earnings increases for the year. I would expect these businesses to continue to contribute to improved overall results in 1992. The property and casualty market, however, remains very competitive and results for this segment of the company, both here and overseas, will remain poor until the pricing environment improves," stated Wilson H. Taylor, CIGNA's chief executive officer.
 Income from continuing operations for 1991, excluding after-tax realized investment results, totalled $401 million ($5.61 per share), compared with $333 million ($4.40 per share) in 1990. For the fourth quarter of 1991, such amounts were $111 million ($1.55 per share), compared with $132 million ($1.84 per share) in 1990. Full year results in 1990 include after-tax charges aggregating $98 million ($1.30 per share) related to business restructuring initiatives.
 Full year and fourth quarter 1991 results include after-tax realized investment gains of $52 million ($0.73 per share) and $1 million ($0.02 per share), respectively, compared with losses of $15 million ($0.20 per share) and $25 million ($0.35 per share) in the same periods of 1990. These amounts include the effect of reserve increases for investment assets reflecting the company's current assessment of unfavorable economic and real estate market conditions.
 Consolidated revenues for 1991 were $18.8 billion compared with $18.2 billion in 1990. For the fourth quarters of 1991 and 1990, consolidated revenues were $4.8 billion. Assets at year-end 1991 were $66.7 billion, up from $63.7 billion at year-end 1990. Shareholders' equity was $5.9 billion ($81.93 per share) at Dec. 31, 1991, compared with $5.2 billion ($73.51 per share) at Dec. 31, 1990.
 During 1990 an accounting standard (SFAS No.106) was issued that established new accounting for postretirement benefits other than pensions. Although no decision has been made by the company regarding the date of implementation, the standard must be adopted by the first quarter of 1993. If the standard had been adopted as of Dec. 31, 1991, the company currently estimates that the after-tax liability for future benefits attributable to employees' services rendered through that date would approximate $500 million.
 CIGNA's Property and Casualty segment had a loss of $7 million in 1991, including after-tax realized investment gains of $36 million. This compares with a loss of $104 million in 1990, which included after- tax realized investment losses of $11 million. For the fourth quarter of 1991, the segment had a loss of $54 million, including after-tax realized investment gains of $8 million, resulting from significant international underwriting losses. This compares with a loss of $18 million in 1990, which included after-tax realized investment losses of $4 million. Full year 1990 results included after-tax charges of $59 million ($0.78 per share) for domestic field office consolidation and $22 million ($0.29 per share) for withdrawal from the Massachusetts personal automobile insurance market.
 The GAAP combined operating ratio after policyholders' dividends was 117.3 for 1991, compared with 115.9 for 1990. The combined ratio was 120.7 and 116.4 for the fourth quarters of 1991 and 1990, respectively.
 The full year and fourth quarter of 1991 included pre-tax catastrophe losses of $68 million and $35 million, respectively. This compares with pre-tax catastrophe losses of $131 million and $18 million for the same periods in 1990.
 The Employee Life and Health Benefits segment had income of $329 million in 1991, including after-tax realized investment gains of $28 million. This compares with $291 million of income in 1990, which included after-tax realized investment gains of $11 million. For the fourth quarter of 1991, the segment had income of $135 million, compared with $124 million in 1990, including after-tax realized investment gains of $8 million in 1991 and losses of $9 million in 1990. Full year 1990 results include an after-tax integration charge of $17 million ($0.23 per share) associated with the acquisition of EQUICOR.
 Income for the Employee Retirement and Savings Benefits segment was $167 million for 1991, compared with income of $161 million in 1990, including after-tax realized investment gains of $2 million for 1990. There were no net after-tax realized investment gains or losses in 1991. For the ft?h quarter of 1991, income was $42 million, compared with $40 million in 1990, including after-tax realized investment losses of $2 million in 1991. There were no net after-tax realized investment gains or losses in the fourth quarter of 1990. Assets under management grew 10 percent during 1991 to $31.8 billion, compared with $29.0 billion as of Dec. 31, 1990.
 Income for the Individual Financial Services segment was $76 million in 1991, including after-tax realized investment losses of $6 million. This compares with income of $67 million in 1990, which included after- tax realized investment losses of $3 million. For the fourth quarter of 1991, income was $16 million, including after-tax realized investment losses of $7 million. This compares with income of $18 million in 1990, which included after-tax realized investment gains of $1 million.
 Other Operations had a loss of $112 million in 1991, compared with a loss of $97 million in 1990. These results include after-tax realized investment
losses of $6 million and $14 million, respectively in 1991 and 1990. During the fourth quarters of 1991 and 1990, Other


Operations had losses of $27 million and $57 million, including after- tax realized investment losses of $6 million and $13 million, respectively. Other Operations includes unallocated investment income, expenses and taxes, as well as the results of CIGNA's investment and real estate subsidiaries and settlement annuity business.
 CIGNA CORPORATION
 Comparative Summary of Financial Results
 (Dollars in millions, except per-share amounts)
 Periods ended Three months 12 months
 Dec. 31 1991 1990 1991 1990
 Revenues:
 Premiums and fees $3,679 $3,759 $14,295 $13,986
 Net investment income 948 963 3,860 3,736
 Other revenues 144 105 513 462
 Realized investment gains (losses) 5 (35) 82 (20)
 Total 4,776 4,792 18,750 18,164
 Income (loss) by segment:
 Employee Life and Health Benefits (A) 135 124 329 291
 Employee Retirement and Savings
 Benefits 42 40 167 161
 Individual Financial Services 16 18 76 67
 Property and Casualty (54) (18) (7) (104)
 Other Operations (27) (57) (112) (97)
 Income from continuing operations 112 107 453 318
 Income from discontinued operations --- 12 --- 12
 Extraordinary loss (4) --- (4) ---
 Net income 108 119 449 330
 Shareholders' equity at Dec. 31 --- --- 5,863 5,242
 Weighted average shares
 outstanding (thousands) 71,580 71,878 71,491 75,687
 Per share:
 Income from continuing operations $1.57 $1.49 $6.34 $4.20
 Income from discontinued operations --- .17 --- .16
 Extraordinary loss (.06) --- (.06) ---
 Net income 1.51 1.66 6.28 4.36
 Shareholders' equity at Dec. 31 --- --- 81.93 73.51
 Property and casualty statistics (GAAP):
 Net written premiums $1,448 $1,493 $5,462 $5,932
 Earned premiums 1,496 1,574 5,619 6,031
 Underwriting ratios (pct.):
 Loss and loss adjustment
 expense 94.9 87.8 87.7 85.1
 Underwriting expense 27.1 29.1 29.5 30.3
 Combined ratio 122.0 116.9 117.2 115.4
 Combined after policyholders'
 dividends 120.7 116.4 117.3 115.9
 Catastrophe losses (pre-tax) $35 $18 $68 $131
 (A) Results include EQUICOR from the March 29, 1990, acquisition date.
 /delval/
 -0- 2/13/92
 /CONTACT: Gavin R. Arton (financial), 215-761-6128, or Warren C. Levy (media), 215-761-4750, both of CIGNA/
 (CI) CO: CIGNA Corporation ST: Pennsylvania IN: INS SU: ERN


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