CIGNA TO SELL OFF PART OF BUSINESS; FIRM TO DEAL INDIVIDUAL INSURANCE SECTOR.Byline: Steve Farr Steven Farr (born December 12, 1956 in La Plata, Maryland), is a former professional baseball player who pitched primarily as a closer in the Major Leagues from 1984-1994. Farr attended DeMatha High School outside of Washington, D.C. and then American University. Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Cigna Corp. said Monday it will sell its individual life insurance and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. business to Lincoln National Corp. for $1.4 billion in cash as part of its strategy to focus on corporate customers. The sale reflects Cigna's plans to move away from retail insurance and into management of employee benefits and pensions. Under terms of the deal, Cigna will keep $225 million from the sale of Cigna Individual Insurance. The sale, totaling more than $1.6 billion, will almost match the amount Cigna paid for the health maintenance organization Healthsource Inc. last month. ``Virtually what we've done here is affected a swap,'' said Michael J. Monroe, spokesman for Philadelphia-based Cigna. ``We're trading a portion of our individual business that had moderate growth prospects . . . for a health organization that has growth prospects potentially 50 percent higher.'' The $225 million will come from backup capital that Cigna Individual Insurance was legally required to have before it could underwrite To insure; to sell an issue of stocks and bonds or to guarantee the purchase of unsold stocks and bonds after a public issue. The word underwrite has two meanings. policies. Although Cigna still sells some individual policies internationally, it has abandoned the individual market in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. to pursue corporate customers, Monroe said. Cigna will continue to sell group life insurance. ``That's where our expertise is,'' he said. Company executives said there was no pressing need to sell Hartford, Conn.-based Cigna Individual Insurance, which has grown steadily if slowly. ``But (it) has limited strategic connection to our other businesses,'' said Wilson H. Taylor, Cigna chief executive officer. Cigna said it likely would use the money to buy stock. On the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , Cigna's stock rose $5.93-3/4 to close at $196.93-3/4 per share, and Lincoln's slipped 43-3/4 cents to $67. |
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