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CIGNA's THIRD QUARTER 1993 RESULTS INCLUDE ASBESTOS - ENVIRONMENTAL AND RESTRUCTURING CHARGES

 PHILADELPHIA, Nov. 1 /PRNewswire/ -- CIGNA Corporation (NYSE: CI) today reported a third quarter 1993 consolidated net loss of $94 million ($1.31 per share), which resulted from asbestos-environmental and restructuring charges as well as continuing poor P&C segment results, compared with $50 million net income ($0.70 per share) a year ago.
 For the nine months of 1993, consolidated net income was $40 million ($0.55 per share). This compares with $261 million ($3.64 per share) a year ago, which includes a $26 million after-tax charge for the cumulative effect of accounting changes.
 The third quarter and nine months of 1993 reflect a $244 million after-tax addition to reserves for asbestos and environmental litigation costs, a $107 million after-tax restructuring charge and a benefit of $48 million from the federal income tax rate change. The third quarter and nine months of 1992 were affected by a $140 million net charge for London reinsurance exposures and by a $182 million benefit from resolution of certain tax audit issues. For further details of these and other specific adjustments in 1993 and 1992, see the supplemental financial information.
 The 1993 third quarter and nine month consolidated net results include after-tax realized investment gains of $73 million ($1.01 per share) and $122 million ($1.69 per share), respectively, compared with gains of $59 million ($0.82 per share) and $173 million ($2.41 per share) in the same periods of 1992.
 Operating results(A) for the third quarter and nine months of 1993, before the referenced adjustments, improved over comparable periods of 1992. The third quarter 1993 operating results, before adjustments, were $143 million of income versus a loss of $27 million in 1992. For the nine months of 1993, operating results before adjustments were $228 million of income versus $117 million in 1992.
 "The operating results for our health, pension and life businesses were strong in the quarter and these businesses are expected to produce good earnings and returns for the year. Underlying property and casualty results remain poor, but we believe the actions to restructure this business will contribute to future profitability. The restructuring focuses on reducing expenses by streamlining property and casualty operations and increasing their specialty presence," said Wilson H. Taylor, CIGNA's chief executive officer.
 Consolidated revenues were $4.5 billion for both the third quarter of 1993 and 1992. Through the first nine months of 1993, consolidated revenues were $13.5 billion, compared with $13.8 billion in 1992.
 (A) Operating results exclude realized investment gains and the cumulative effect of accounting changes.
 Assets at the end of the third quarter were $82.2 billion, up from $77.7 billion at year-end 1992. Shareholders' equity was $5.6 billion ($78.23 per share) at Sept. 30, 1993, compared with $5.7 billion ($80.09 per share) at Dec. 31, 1992.
 The following segment discussions exclude the cumulative effect of accounting changes implemented in 1992 for SFAS Nos. 106, 109 and 112.
 CIGNA's Property and Casualty segment had a loss of $320 million in


the third quarter of 1993, including after-tax realized investment gains of $54 million. This compares with a loss of $275 million for the third quarter of 1992, including after-tax realized investment gains of $32 million. Through nine months, the segment had a loss of $444 million, including after-tax realized investment gains of $112 million. This compares with a loss of $254 million in 1992, which included after-tax realized investment gains of $110 million.
 Results for the third quarter and nine months of 1993 were adversely affected by a charge of $244 million after-tax ($375 million pre-tax) for asbestos and environmental litigation costs and $97 million after- tax ($150 million pre-tax) for restructuring actions. Results for the third quarter and nine months of 1992 were adversely affected by a net charge of $140 million for London reinsurance exposures.
 The third quarter and nine months of 1993 included pre-tax catastrophe losses of $36 million and $134 million, respectively. This compares with losses of $139 million and $192 million for the respective periods of 1992, including $131 million for Hurricanes Andrew and Iniki.
 The GAAP combined operating ratio after policyholders' dividends was 162 and 139 for the third quarter and nine months of 1993, compared with 163 and 132 for the respective periods of 1992.
 The Employee Life and Health Benefits segment had income of $152 million in the third quarter of 1993, including after-tax realized investment gains of $19 million. This compares with income of $221 million in the third quarter of 1992, which included after-tax realized investment gains of $8 million and a $108 million benefit from the resolution of tax issues. For the first nine months of 1993, the segment had income of $355 million, compared with income of $354 million in the first nine months of 1992, including after-tax realized investment gains of $47 million and $45 million, respectively. The nine months of 1992 include the $108 million benefit from the resolution of tax issues.
 Income for the Employee Retirement and Savings Benefits segment was $44 million for the third quarter of 1993, including after-tax realized investment losses of $6 million. This compares with income of $87 million for the third quarter of 1992, including after-tax realized investment gains of $16 million. Included in third quarter 1992 income was a $41 million benefit from the resolution of tax issues, of which $14 million related to realized investment results. Income for the first nine months of 1993 was $116 million, including after-tax realized investment losses of $22 million. This compares with income of $172 million for the first nine months of 1992, including after-tax realized investment gains of $16 million. Included in the nine months of 1992 was the $41 million benefit from the resolution of tax issues, of which $14 million related to realized investment results.
 Assets under management at the end of the third quarter of 1993 were $33.6 billion, an increase of 4 percent from $32.4 billion as of Sept. 30, 1992.
 Income for the Individual Financial Services segment was $39 million in the third quarter of 1993, including after-tax realized investment gains of $2 million. This compares with income of $35 million in the third quarter of 1992, which included after-tax realized investment gains of $8 million. Through nine months of the year, income was $79 million, compared with $65 million through nine months of 1992, including after-tax realized investment losses of $11 million and gains of $3 million, respectively.
 Other Operations had a loss of $9 million in the third quarter of 1993, compared with a loss of $18 million in the third quarter of 1992. These results include after-tax realized investment gains of $4 million in 1993 and losses of $5 million in 1992. Through nine months, Other Operations had a loss of $66 million, compared with a loss of $50 million in 1992, including after-tax realized investment losses of $4 million and $1 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 Nine months
 Sept. 30 1993 1992 1993 1992
 Revenues:
 Premiums and fees $3,298 $3,363 $10,052 $10,267
 Net investment income 971 975 2,878 2,933
 Other revenues 146 109 379 438
 Realized investment gains 110 44 153 153
 Total 4,525 4,491 13,462 13,791
 Income (loss) by segment:
 Employee Life and Health Benefits 152 221 355 354
 Employee Retirement and Savings
 Benefits 44 87 116 172
 Individual Financial Services 39 35 79 65
 Property and Casualty (320) (275) (444) (254)
 Other Operations (9) (18) (66) (50)
 Income (loss) before cumulative effect
 of accounting changes (94) 50 40 287
 Cumulative effect of accounting
 changes --- --- --- (26)
 Net income (loss) (94) 50 40 261
 Shareholders' equity at Sept. 30 --- --- 5,632 5,757
 Weighted average shares outstanding
 (thousands) 72,056 71,766 71,995 71,718
 Per share:
 Income (loss) before cumulative
 effect of accounting changes $(1.31) $.70 $.55 $4.00
 Cumulative effect of accounting
 changes --- --- --- (.36)
 Net income (loss) (1.31) .70 .55 3.64
 Shareholders' equity at Sept. 30 --- --- 78.23 80.25
 Property and casualty statistics
 (GAAP):
 Net written premiums $1,054 $1,096 $3,153 $3,600
 Earned premiums 1,070 1,185 3,246 3,819
 Underwriting ratios:
 Loss and loss adjustment
 expense (pct.) 126.2 130.5 102.7 100.3
 Underwriting expense (pct.) 35.4 32.8 36.6 31.8
 Combined ratio (pct.) 161.6 163.3 139.3 132.1
 Combined after policyholders'
 dividends (pct.) 161.6 163.3 139.3 132.3
 Pre-tax catastrophe losses $36 $139 $134 $192
 CIGNA CORPORATION
 Supplemental Financial Information


Financial Data Excluding Specific Adjustments -- Results of Operations
 (Dollars in millions, except per-share amounts)
 For informational purposes, the following information presents the effects of the items noted below on published results of operations. The information presented in this manner does not conform with Generally Accepted Acccounting Principles.
 Three Months Ended Sept. 30
 Employee Life & Health Benefits Employee
 Retirement Individual
 Non- & Savings Financial
 Indemnity Indemnity Total Benefits Services
 1993 1992 1993 1992 1993 1992 1993 1992 1993 1992
 Operating income
 (loss) before
 adjustments $88 $83 $46 $22 $134 $105 $43 $44 $29 $23
 Asbestos/environ-
 mental litigation
 costs --- --- --- --- --- --- --- --- --- ---
 Restructuring
 charges (5) --- (5) --- (10) --- --- --- --- ---
 Federal income
 tax rate change 12 --- 2 --- 14 --- 1 --- 3 ---
 London reinsurance
 exposures --- --- --- --- --- --- --- --- --- ---
 Tax audits (1) 114 (4) (6) (5) 108 6 27 5 4
 Operating income
 (loss) as
 published 94 197 39 16 133 213 50 71 37 27
 After-tax realized
 investment gains
 (losses) before
 adjustments 21 8 --- --- 21 8 (3) 2 3 (2)
 Tax audits (2) --- --- --- (2) --- (3) 14 (1) 10
 After-tax realized
 investment gains
 (losses) as
 published 19 8 --- --- 19 8 (6) 16 2 8
 Net income
 (loss) 113 205 39 16 152 221 44 87 39 35
 Continued Earnings
 Property Per
 & Casualty Other Consolidated Share
 1993 1992 1993 1992 1993 1992 1993 1992
 Operating income
 (loss) before
 adjustments ($44) ($189) ($19) ($10) $143 ($27) $1.99 ($0.37)
 Asbestos/environ-
 mental litigation
 costs (244) --- --- --- (244) --- (3.39) ---
 Restructuring
 charges (97) --- --- --- (107) --- (1.49) ---
 Federal income
 tax rate change 24 --- 6 --- 48 --- 0.67 ---
 London reinsurance
 exposures (16) (140) --- --- (16) (140) (0.22) (1.95)
 Tax audits 3 22 --- (3) 9 158 0.12 2.20
 Operating income
 (loss) as
 published (374) (307) (13) (13) (167) (9) (2.32) (0.12)
 After-tax realized
 investment gains
 (losses) before
 adjustments 54 32 4 (5) 79 35 1.10 0.48
 Tax audits --- --- --- --- (6) 24 (0.09) 0.34
 After-tax realized
 investment gains
 (losses) as
 published 54 32 4 (5) 73 59 1.01 0.82
 Net income
 (loss) (320) (275) (9) (18) (94) 50 (1.31) 0.70
 Nine Months Ended Sept. 30
 Employee Life & Health Benefits Employee
 Retirement Individual
 Non- & Savings Financial
 Indemnity Indemnity Total Benefits Services
 1993 1992 1993 1992 1993 1992 1993 1992 1993 1992
 Operating income
 (loss) before
 adjustments $195 $156 $114 $56 $309 $212 $131 $129 $82 $58
 Asbestos/environ-
 mental litigation
 costs --- --- --- --- --- --- --- --- --- ---
 Restructuring
 charges (5) (5) (5) (6) (10) (11) --- --- --- ---
 Federal income
 tax rate change 12 --- 2 --- 14 --- 1 --- 3 ---
 London reinsurance
 exposures --- --- --- --- --- --- --- --- --- ---
 Tax audits (1) 114 (4) (6) (5) 108 6 27 5 4
 Operating income
 (loss) as
 published 201 265 107 44 308 309 138 156 90 62
 After-tax realized
 investment gains
 (losses) before
 adjustments 49 45 --- --- 49 45 (19) 2 (10) (7)
 Tax audits (2) --- --- --- (2) --- (3) 14 (1) 10
 After-tax realized
 investment gains
 (losses) as
 published 47 45 --- --- 47 45 (22) 16 (11) 3
 Income (loss)
 before cumulative
 effect of
 accounting
 changes 248 310 107 44 355 354 116 172 79 65
 Continued Earnings
 Property Per
 & Casualty Other Consolidated Share
 1993 1992 1993 1992 1993 1992 1993 1992
 Operating income
 (loss) before
 adjustments ($226) ($236) ($68) ($46) $228 $117 $3.17 $1.63
 Asbestos/environ-
 mental litigation
 costs (244) --- --- --- (244) --- (3.39) ---
 Restructuring
 charges (97) (10) --- --- (107) (21) (1.49) (0.29)
 Federal income
 tax rate change 24 --- 6 --- 48 --- 0.67 ---
 London reinsurance
 exposures (16) (140) --- --- (16) (140) (0.22) (1.95)
 Tax audits 3 22 --- (3) 9 158 0.12 2.20
 Operating income
 (loss) as
 published (556) (364) (62) (49) (82) 114 (1.14) 1.59
 After-tax realized
 investment gains
 (losses) before
 adjustments 112 110 (4) (1) 128 149 1.78 2.07
 Tax audits --- --- --- --- (6) 24 (0.09) 0.34
 After-tax realized
 investment gains
 (losses) as
 published 112 110 (4) (1) 122 173 1.69 2.41
 Income (loss)
 before cumulative
 effect of
 accounting
 changes (444) (254) (66) (50) 40 287 0.55 4.00
 /delval/
 -0- 11/1/93
 /CONTACT: Robert W. Sullivan (financial), 215-761-6130, or Michael J. Monroe (media), 215-761-6133 of CIGNA/
 (CI)


CO: CIGNA Corporation ST: Pennsylvania IN: INS SU: ERN

MP-LJ -- PH035 -- 9293 11/01/93 16:06 EST
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Date:Nov 1, 1993
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