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CIGNA REPORTS 1992 RESULTS

 PHILADELPHIA, Feb. 16 /PRNewswire/ -- CIGNA Corporation (NYSE: CI) today reported consolidated net income of $311 million ($4.34 per share) for 1992, compared with $449 million ($6.28 per share) a year ago.
 For the fourth quarter of 1992, consolidated net income was $50 million ($0.70 per share), compared with $108 million ($1.51 per share) a year ago.
 Results for the full year and fourth quarter of 1992 include after- tax realized investment gains of $192 million ($2.68 per share) and $19 million ($0.27 per share), respectively, compared with gains of $52 million ($0.73 per share) and $1 million ($0.02 per share) in the same periods of 1991.
 Results also include the effect of accounting changes related to postretirement and postemployment benefits (SFAS 106 and 112) and income taxes (SFAS 109). These changes were made effective as of the first quarter of 1992.
 Implementation of SFAS 106 and 112 resulted in a cumulative after- tax charge of $530 million. SFAS 109 resulted in a cumulative benefit of $504 million. The combined effect of these cumulative adjustments reduced full year and first quarter net income by $26 million, or $0.36 per share.
 The combined incremental cost of SFAS 106 and 112 resulted in after- tax charges of $34 million and $6 million for the full year and fourth quarter, respectively. The full year incremental effect of SFAS 109 was an increase to net income of $29 million. This effect relates principally to benefits related to realized investment gains of $59 million and $8 million for the full year and fourth quarter, respectively, offset by the elimination of "Fresh Start" benefits, which would have been approximately $30 million and $8 million in the respective periods.
 In the fourth quarter, CIGNA also adopted a new accounting rule (SOP 92-3) relating to accounting for foreclosed assets, which resulted in a $6 million reduction in 1992 full year and fourth quarter net income.
 CIGNA Chief Executive Officer Wilson H. Taylor commented on the year's underlying results by noting, "CIGNA's health, pension and life business segments performed well in 1992. Results of the property and casualty (P&C) business, however, significantly reduced consolidated results.
 "While overall 1992 results were unsatisfactory, I expect to see CIGNA make substantial progress toward our goal of building shareholder value in 1993. Our capital position remains strong and asset quality is expected to continue to be manageable."
 Net income for 1992, excluding the cumulative effect of accounting changes and after-tax realized investment results, totalled $145 million ($2.02 per share), compared with $401 million ($5.61 per share) in 1991. For the fourth quarter of 1992, such amount was $31 million ($0.43 per share), compared with $111 million ($1.55 per share) in 1991. Consolidated revenues for 1992 were $18.6 billion, compared with $18.8 billion in 1991. For the fourth quarters of 1992 and 1991, consolidated revenues were $4.8 billion.
 Assets at year-end 1992 were $69.8 billion, up from $66.7 billion at year-end 1991. Shareholders' equity was $5.7 billion ($80.09 per share) at December 31, 1992, compared with $5.9 billion ($81.93 per share) at December 31, 1991.
 The following segment discussions exclude the cumulative effect of accounting changes:
 CIGNA's Property and Casualty segment had a loss of $374 million in 1992, including after-tax realized investment gains of $111 million. This compares with a loss of $7 million in 1991, which included after- tax realized investment gains of $36 million. Full-year 1992 results included a $140 million net charge related to CIGNA's property and casualty London reinsurance exposures.
 For the fourth quarter of 1992, the segment had a loss of $120 million, including after-tax realized investment gains of $1 million. This compares with a loss of $54 million in 1991, which included after-tax realized investment gains of $8 million.
 The GAAP combined operating ratio after policyholders' dividends was 131.3 for 1992, compared with 117.3 for 1991. The combined ratio was 128.3 and 120.7 for the fourth quarters of 1992 and 1991, respectively.
 The full year and fourth quarter of 1992 included pre-tax catastrophe losses of $251 million and $59 million, respectively. This compares with pre-tax catastrophe losses of $68 million and $35 million for the same periods in 1991. Full-year 1992 results include $223 million of pre-tax catastrophe losses for hurricanes Andrew and Iniki, the December East Coast winter storm and the Los Angeles riots.
 The Employee Life and Health Benefits segment had income of $483 million in 1992, including $63 million of after-tax realized investment gains and $108 million of benefits from settling tax issues of prior years. This compares with income of $329 million in 1991, which included after-tax realized investment gains of $28 million. For the fourth quarter of 1992, the segment had income of $129 million, compared with $135 million in 1991, including after-tax realized investment gains of $18 million in 1992 and $8 million in 1991.
 Income for the Employee Retirement and Savings Benefit segment was $216 million for 1992, including after-tax realized investment gains of $16 million, compared with income of $167 million in 1991. There were no net after-tax realized investment gains or losses in 1991. Included in 1992 income were benefits from the settled tax issues of $41 million, of which $14 million related to realized investment results. For the fourth quarter of 1992, income was $44 million, compared with $42 million in 1991, including after-tax realized investment losses of $2 million in 1991. There were no net after-tax realized investment gains or losses for the fourth quarter of 1992.
 Assets under management grew 3 percent during 1992 to $32.7 billion, compared with $31.8 billion as of December 31, 1991.
 Income for the Individual Financial Services segment was $86 million in 1992, compared with $76 million in 1991, which included after-tax realized investment losses of $6 million. There were no net after-tax realized investment gains or losses for the full-year 1992. For the fourth quarter of 1992, income was $21 million, including after-tax realized investment losses of $3 million. This compares with income of $16 million in 1991, which included after-tax realized investment losses of $7 million.
 Other Operations had a loss of $74 million in 1992, compared with a loss of $112 million in 1991. These results include after-tax realized investment gains of $2 million in 1992 and losses of $6 million in 1991. For the fourth quarter of 1992, Other Operations had a loss of $24 million, compared with a loss of $27 million in 1991. Included in the fourth quarters of 1992 and 1991 were after-tax realized investment gains of $3 million and losses of $6 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 Twelve months
 Dec. 31 1992 1991 1992 1991
 Revenues:
 Premiums and fees $3,657 $3,679 $13,924 $14,295
 Net investment income 981 948 3,914 3,860
 Other revenues 141 144 579 513
 Realized investment gains 12 5 165 82
 Total 4,791 4,776 18,582 18,750
 Income (loss) by segment:
 Employee Life and Health Benefits 129 135 483 329
 Employee Retirement and Savings
 Benefits 44 42 216 167
 Individual Financial Services 21 16 86 76
 Property and Casualty (120) (54) (374) (7)
 Other Operations (24) (27) (74) (112)
 Income before extraordinary item
 and cumulative effect of
 accounting changes 50 112 337 453
 Extraordinary loss --- (4) --- (4)
 Cumulative effect of
 accounting changes --- --- (26) ---
 Net income 50 108 311 449
 Shareholders' equity at Dec. 31 --- --- 5,744 5,863
 Weighted average shares
 outstanding (thousands) 71,791 71,580 71,737 71,491
 Per share:
 Income before extraordinary item
 and cumulative effect of
 accounting changes $.70 $1.57 $4.70 $6.34
 Extraordinary loss --- (.06) --- (.06)
 Cumulative effect of
 accounting changes --- --- (.36) ---
 Net income .70 1.51 4.34 6.28
 Shareholders' equity at Dec. 31 --- --- 80.09 81.93
 Property and casualty statistics (GAAP):
 Net written premiums $1,217 $1,448 $4,817 $5,462
 Earned premiums 1,313 1,496 5,132 5,619
 Underwriting ratios:
 Loss and loss adjustment
 expense (pct.) 97.0 94.9 99.5 87.7
 Underwriting expense (pct.) 32.7 27.1 32.0 29.5
 Combined ratio (pct.) 129.7 122.0 131.5 117.2
 Combined after policyholders'
 dividends (pct.) 128.3 120.7 131.3 117.3
 Catastrophe losses (pre-tax) $59 $35 $251 $68
 /delval/
 -0- 2/16/93
 /CONTACT: Robert W. Sullivan (financial), 215-761-6130, or Michael J. Monroe (media), 215-761-6133, both of CIGNA/
 (CI)


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

MK-CC -- PH022 -- 6923 02/16/93 16:02 EST
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Date:Feb 16, 1993
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