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CIGNA REPORTS SECOND QUARTER 1993 RESULTS

 PHILADELPHIA, Aug. 2 /PRNewswire/ -- CIGNA Corporation (NYSE: CI) today reported consolidated net income of $88 million ($1.22 per share) for the second quarter of 1993, compared with $130 million ($1.81 per share) a year ago.
 For the first half of 1993, consolidated net income was $134 million ($1.86 per share), compared with $211 million ($2.94 per share) a year ago. Consolidated income, excluding after-tax realized investment gains, was $69 million ($0.96 per share) for the second quarter of 1993, compared with $59 million ($0.82 per share) a year ago. Excluding after-tax realized investment gains, consolidated income was $85 million ($1.18 per share) for the first half of 1993. This compares with $123 million ($1.71 per share) a year ago, which excludes after-tax realized investment gains and the $26 million cumulative effect of accounting changes.
 The 1993 second quarter and six month results include after-tax realized investment gains of $19 million ($0.26 per share) and $49 million ($0.68 per share), respectively, compared with gains of $71 million ($0.99 per share) and $114 million ($1.59 per share) in the same periods of 1992.
 "Three of our four businesses continued to perform well during the quarter, with particular improvement evident in managed health care, where growth in HMO enrollment is strong," said Wilson H. Taylor, CIGNA chairman and CEO. "Results for the Property/Casualty businesses remain unsatisfactory due to poor underwriting results and a difficult pricing environment."
 Consolidated revenues for the second quarter of 1993 were $4.6 billion, compared with $4.7 billion for 1992. Through the first six months of 1993, consolidated revenues were $8.9 billion, compared with $9.3 billion in 1992.
 In 1993, CIGNA adopted a new accounting standard (SFAS No. 113), which increases assets and liabilities for reinsurance recoverables that previously offset insurance liabilities; year-end 1992 amounts have been restated by approximately $8 billion. Assets at the end of the second quarter were $80.1 billion, up from $77.7 billion at year-end 1992. Shareholders' equity was $5.8 billion ($80.66 per share) at June 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 $45 million in the second quarter of 1993, including after-tax realized investment gains of $34 million. This compares with a loss of $14 million for the second quarter of 1992, including after-tax realized investment gains of $41 million. Through six months, the segment had a loss of $124 million, including after-tax realized investment gains of $58 million. This compares with income of $21 million in 1992, which included after-tax realized investment gains of $78 million.
 The second quarter and six months of 1993 included pre-tax catastrophe losses of $15 million and $98 million, respectively. This compares with pre-tax catastrophe losses of $55 million and $53 million for the respective periods of 1992.
 The GAAP combined operating ratio after policyholders' dividends was 125 and 128 for the second quarter and six months of 1993, compared with 119 and 118 for the respective periods of 1992.
 The Employee Life and Health Benefits segment had income of $111 million in the second quarter of 1993, including after-tax realized investment gains of $7 million. This compares with income of $97 million in the second quarter of 1992, which included after-tax realized investment gains of $30 million. For the first six months of 1993, the segment had income of $203 million, compared with $133 million in the first six months of 1992, including after-tax realized investment gains of $28 million and $37 million, respectively.
 Income for the Employee Retirement and Savings Benefits segment was $36 million for the second quarter of 1993, including after-tax realized investment losses of $8 million. This compares with income of $38 million for the second quarter of 1992, including after-tax realized investment losses of $4 million. Income for the first half of 1993 was $72 million, including after-tax realized investment losses of $16 million. This compares with income of $85 million for the first half of 1992. There were no net after-tax realized investment gains or losses in the first half of 1992. Assets under management at the end of the second quarter of 1993 were $32.8 billion, an increase of 3 percent from $32.0 billion as of June 30, 1992.
 Income for the Individual Financial Services segment was $18 million in the second quarter of 1993, including after-tax realized investment losses of $8 million. This compares with income of $21 million in the second quarter of 1992, which included after-tax realized investment gains of $1 million. Through six months of the year, income was $40 million, compared with $30 million through six months of 1992, including after-tax realized investment losses of $13 million and $5 million, respectively.
 Other Operations had a loss of $32 million in the second quarter of 1993, compared with a loss of $12 million in the second quarter of 1992. These results include after-tax realized investment losses of $6 million in 1993 and gains of $3 million in 1992. Through six months, Other Operations had a loss of $57 million, compared with a loss of $32 million in 1992, including after-tax realized investment losses of $8 million and after-tax realized investment gains of $4 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 Six months
 June 30 1993 1992 1993 1992
 Revenues:
 Premiums and fees $3,493 $3,453 $6,754 $6,904
 Net investment income 949 970 1,907 1,958
 Other revenues 109 157 233 329
 Realized investment gains 12 72 43 109
 Total 4,563 4,652 8,937 9,300
 Income (loss) by segment:
 Employee Life and Health Benefits 111 97 203 133
 Employee Retirement and Savings
 Benefits 36 38 72 85
 Individual Financial Services 18 21 40 30
 Property and Casualty (45) (14) (124) 21
 Other Operations (32) (12) (57) (32)
 Income before cumulative effect of
 accounting changes 88 130 134 237
 Cumulative effect of
 accounting changes --- --- --- (26)
 Net income 88 130 134 211
 Shareholders' equity at June 30 --- --- 5,805 5,734
 Weighted average shares
 outstanding (thousands) 72,040 71,729 71,965 71,695
 Per share:
 Income before cumulative effect
 of accounting changes $1.22 $1.81 $1.86 $3.30
 Cumulative effect of accounting
 changes --- --- --- (.36)
 Net income 1.22 1.81 1.86 2.94
 Shareholders' equity at June 30 --- --- 80.66 79.93
 Property and casualty
 statistics (GAAP):
 Net written premiums $1,026 $1,233 $2,099 $2,504
 Earned premiums 1,118 1,343 2,176 2,634
 Underwriting ratios:
 Loss and loss adjustment
 expense (pct.) 90.6 88.2 93.2 86.7
 Underwriting expense (pct.) 34.0 30.4 35.2 31.3
 Combined ratio (pct.) 124.6 118.6 128.4 118.0
 Combined after policyholders'
 dividends (pct.) 124.6 118.7 128.4 118.3
 Pre-tax catastrophe losses $15 $55 $98 $53
 /delval/
 -0- 8/2/93
 /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-MJ -- PH026 -- 8494 08/02/93 16:01 EDT
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Date:Aug 2, 1993
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