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CIGNA REPORTS SECOND QUARTER RESULTS

 CIGNA REPORTS SECOND QUARTER RESULTS
 PHILADELPHIA, Aug. 3 /PRNewswire/ -- CIGNA Corporation (NYSE: CI)


today reported consolidated net income of $125 million ($1.74 per share) for the second quarter of 1992, compared with $170 million ($2.38 per share) a year ago.
 For the first half of 1992, consolidated net income was $231 million ($3.22 per share), compared with $218 million ($3.05 per share) a year ago.
 The 1992 second quarter and six month results include after-tax realized investment gains of $47 million ($0.65 per share) and $70 million ($0.97 per share), respectively, compared with gains of $36 million ($0.50 per share) and $41 million ($0.57 per share) in the same periods of 1991.
 "The company's employee benefits, pension and life operations continued to perform well in the quarter. The earnings decline primarily reflects continued weak worldwide property and casualty market conditions and high catastrophe losses, notably from the Los Angeles riots," said Wilson H. Taylor, CIGNA's chairman and chief executive officer.
 "During the quarter, we took several restructuring steps to continue the process of better positioning our key businesses. The restructuring costs affected the results of the employee benefits and international property and casualty operations."
 Taylor also noted, "As a result of recent concerns regarding the London reinsurance market, we have initiated an extensive review of CIGNA's exposure through its London property and casualty reinsurance operations, particularly those losses arising from large catastrophes occurring over the last several years. Because of complexities existing in the London market, this review will not be completed until later this year. The effect of the review is not reasonably estimable at this time, but is not expected to have a material adverse effect on the corporation's consolidated financial condition."
 Consolidated revenues for both the second quarters of 1992 and 1991 were $4.7 billion. Through the first six months of 1992, consolidated revenues were $9.3 billion, compared with 1991's $9.5 billion.
 Assets at the end of the second quarter were $67.5 billion, up from $66.7 billion at year-end 1991. Shareholders' equity was $5.7 billion or $79.44 per share at June 30, 1992, compared with $5.9 billion or $81.93 per share at Dec. 31, 1991.
 CIGNA's Property and Casualty segment had a loss of $18 million in the second quarter, including after-tax realized investment gains of $26 million. This compared with $42 million of income in the second quarter of 1991, which included after-tax realized investment gains of $21 million. Through six months, the segment had income of $13 million, including after-tax realized investment gains of $47 million. This compared with income of $42 million in 1991, which included after-tax realized investment gains of $21 million.
 The GAAP combined operating ratio after policyholders' dividends for both the second quarter and six months of 1992 was 118, compared with 115 and 116 for the respective periods of 1991.
 The second quarter and six months of 1992 had pre-tax catastrophe losses of $55 million and $53 million, respectively, including $39 million ($26 million after-tax) from the Los Angeles riots. This compared with pre-tax catastrophe losses of $11 million and $16 million for the respective periods in 1991.
 The Employee Life and Health Benefits segment had income of $94 million in the second quarter, including after-tax realized investment gains of $21 million. This compared with $92 million of income in the second quarter of 1991, which included after-tax realized investment gains of $12 million. For the first six months of 1992, the segment had income of $132 million, compared with $111 million in the first six months of 1991, including after-tax realized investment gains of $24 million and $15 million, respectively.
 Income for the Employee Retirement and Savings Benefits segment was $38 million for the second quarter of 1992, compared with income of $41 million in 1991, including after-tax realized investment losses of $4 million and gains of $3 million, respectively. In the first half of 1992, income was $86 million, compared with $84 million in the first six months of 1991. There were no net realized investment gains or losses for the six months of 1992, compared with after-tax realized investment gains of $3 million in the comparable period of 1991. Assets under management grew five percent over the last 12 months to $32.0 billion, compared with $30.5 billion at June 30, 1991.
 Income for the Individual Financial Services segment was $22 million in the second quarter of 1992, compared with $19 million in the second quarter of 1991. The second quarter of 1992 included after-tax realized investment gains of $1 million. There were no net realized investment gains or losses in the second quarter of 1991. Through six months of the year, income was $32 million, compared with $34 million in the first half of 1991, including after-tax realized investment losses of $5 million and $1 million, respectively.
 Other Operations had a loss of $11 million in the second quarter of 1992, including after-tax realized investment gains of $3 million. This compared with a loss of $24 million in 1991's second quarter, when there were no net realized investment gains or losses. Through six months, Other Operations had a loss of $32 million, compared with a loss of $53 million in 1991, including after-tax realized investment gains of $4 million and $3 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 1992 1991 1992 1991
 Revenues:
 Premiums and fees $3,453 $3,596 $6,904 $7,204
 Net investment income 970 960 1,958 1,934
 Other revenues 157 136 329 257
 Realized investment gains 72 54 109 62
 Total 4,652 4,746 9,300 9,457
 Income (loss) by segment:
 Employee Life and Health Benefits 94 92 132 111
 Employee Retirement and Savings
 Benefits 38 41 86 84
 Individual Financial Services 22 19 32 34
 Property and Casualty (18) 42 13 42
 Other Operations (11) (24) (32) (53)
 Net income 125 170 231 218
 Shareholders' equity at June 30 --- --- 5,699 5,432
 Weighted average
 shares outstanding (thousands) 71,729 71,466 71,695 71,402
 Per share:
 Net income $1.74 $2.38 $3.22 $3.05
 Shareholders' equity at June 30 --- --- 79.44 75.90
 Property and casualty statistics (GAAP):
 Net written premiums $1,233 $1,270 $2,504 $2,602
 Earned premiums 1,343 1,420 2,634 2,756
 Underwriting ratios:
 Loss and loss adjustment
 expense (pct.) 88.2 85.2 86.7 85.1
 Underwriting expense (pct.) 29.9 29.1 30.8 30.4
 Combined ratio (pct.) 118.1 114.3 117.5 115.5
 Combined after policyholders'
 dividends (pct.) 118.2 114.6 117.8 116.1
 Catastrophe losses (pre-tax) $55 $11 $53 $16
 /delval/
 -0- 8/3/92
 /CONTACT: Gavin R. Arton (financial), 215-761-6128, or Michael J. Monroe (media), 215-761-6133, both of CIGNA/
 (CI) CO: CIGNA Corporation ST: Pennsylvania IN: INS SU: ERN


CC-MK -- PH024 -- 6290 08/03/92 16:02 EDT
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