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CIGNA REPORTS THIRD QUARTER RESULTS

 CIGNA REPORTS THIRD QUARTER RESULTS
 PHILADELPHIA, Nov. 2 /PRNewswire/ -- CIGNA Corporation (NYSE: CI)


today reported consolidated net income of $55 million ($0.77 per share) for the third quarter of 1992, compared with $123 million ($1.72 per share) a year ago.
 For the nine months of 1992, consolidated net income was $286 million ($3.99 per share), compared with $341 million ($4.77 per share) a year ago.
 The 1992 third quarter and nine months results include after-tax realized investment gains of $52 million ($0.73 per share) and $122 million ($1.70 per share), respectively, compared with gains of $10 million ($0.14 per share) and $51 million ($0.71 per share) in the same periods of 1991.
 "Although three of CIGNA's four business segments had strong earnings in the third quarter, consolidated results were significantly reduced by charges related to the company's property and casualty segment," stated Wilson H. Taylor, chairman and chief executive officer. "As previously announced, these charges primarily reflect the impact of Hurricanes Andrew and Iniki as well as the outcome of a review of London reinsurance exposures. Favorably affecting all of the company's business segments were tax benefits reflecting resolution of certain issues relating to the audit of prior tax years," Taylor noted.
 Income excluding after-tax realized investment results was $3 million ($0.04 per share) in the third quarter of 1992, compared with $113 million ($1.58 per share) in 1991. For the nine months of 1992, the total was $164 million ($2.29 per share), compared with $290 million ($4.06 per share) in 1991.
 Third quarter consolidated revenues were $4.5 billion for both 1992 and 1991. Through the nine months of 1992, consolidated revenues were $13.8 billion compared with $14.0 billion in 1991.
 Assets at Sept. 30, 1992 were $68.3 billion, up from $66.7 billion at year-end 1991. Shareholders' equity was $5.8 billion, or $80.17 per share, at Sept. 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 $270 million in the third quarter, including after-tax realized investment gains of $29 million. This compared with income of $5 million in the third quarter of 1991, which included after-tax realized investment gains of $7 million. Through nine months, the segment had a loss of $257 million, including after-tax realized investment gains of $76 million. This compared with income of $47 million in 1991, which included after-tax realized investment gains of $28 million.
 Results for the third quarter and nine months of 1992 were adversely affected by a net charge of $140 million related to the completion of a review of London reinsurance operations and charges totalling $61 million primarily for settlement of certain claim disputes and adverse loss experience on reinsurance of international bond and credit business. Benefits from the settled tax issues totalled $22 million for both the third quarter and nine months of 1992.
 The third quarter and nine months of 1992 included pre-tax catastrophe losses of $139 million and $192 million, respectively, including $131 million for Hurricanes Andrew and Iniki. This compared with pre-tax catastrophe losses of $17 million and $33 million for the same periods in 1991.
 The GAAP combined operating ratio after policyholders' dividends was 163 in the third quarter and 132 for nine months of 1992, compared with 116 for both the third quarter and nine months of 1991. Excluding the London reinsurance charge, the ratios for the third quarter and nine months of 1992 were 139 and 124, respectively.
 The Employee Life and Health Benefits segment had income of $220 million in the third quarter, including after-tax realized investment gains of $4 million. This compared with $83 million in the third quarter of 1991, which included after-tax realized investment gains of $5 million. For the nine months of 1992, the segment had income of $352 million, compared with $194 million in 1991, including after-tax realized investment gains of $28 million and $20 million, respectively. Benefits from the settled tax issues included in 1992 amounts totalled $108 million.
 Income for the Employee Retirement and Savings Benefit segment was $87 million for the third quarter of 1992, compared with income of $41 million in 1991, including after-tax realized investment gains of $16 million for 1992 and losses of $1 million for 1991. For the nine months of 1992, income was $173 million, compared with $125 million in 1991, including after-tax realized investment gains of $16 million and $2 million in the respective periods. Included in third quarter and nine months 1992 income were benefits from the settled tax issues of $41 million, of which $14 million related to realized investment results.
 Assets under management grew 4 percent over the last 12 months to $32.4 billion, compared with $31.1 billion as of Sept. 30, 1991.
 Income for the Individual Financial Services segment was $35 million in the third quarter of 1992, including after-tax realized investment gains of $8 million. This compared with income of $26 million in the third quarter of 1991, including after-tax realized investment gains of $2 million. Through nine months of this year, income was $67 million, including after-tax realized investment gains of $3 million. This compared with $60 million in 1991, which included after-tax realized investment gains of $1 million. In the third quarter and nine months of 1992, income included benefits from settled tax issues totalling $14 million of which $10 million related to realized investment results.
 Other Operations had a loss of $17 million in the third quarter of 1992, including after-tax realized investment losses of $5 million, compared with a loss of $32 million in 1991, including after-tax realized investment losses of $3 million. Through nine months, Other Operations had a loss of $49 million, compared with a loss of $85 million in 1991. Included in the nine months of 1992 were after-tax realized investment losses of $1 million. There were no net realized investment gains or losses in the nine months ended Sept. 30, 1991. A tax charge of $3 million is included in the third quarter and nine months results for 1992, reflecting the effect of settled tax issues.
 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 1992 1991 1992 1991
 Revenues:
 Premiums and fees $3,363 $3,412 $10,267 $10,616
 Net investment income 975 978 2,933 2,912
 Other revenues 109 112 438 369
 Realized investment gains 44 15 153 77
 Total 4,491 4,517 13,791 13,974
 Income (loss) by segment:
 Employee Life and Health Benefits 220 83 352 194
 Employee Retirement and Savings
 Benefits 87 41 173 125
 Individual Financial Services 35 26 67 60
 Property and Casualty (270) 5 (257) 47
 Other Operations (17) (32) (49) (85)
 Net income 55 123 286 341
 Shareholders' equity at Sept. 30 --- --- 5,751 5,566
 Weighted average shares
 outstanding (thousands) 71,766 71,578 71,718 71,461
 Per share:
 Net income $.77 $1.72 $3.99 $4.77
 Shareholders' equity at Sept. 30 --- --- 80.17 77.79
 Property and casualty
 statistics (GAAP):
 Net written premiums $1,096 $1,412 $3,600 $4,014
 Earned premiums 1,185 1,367 3,819 4,123
 Underwriting ratios:
 Loss and loss adjustment
 expense (pct.) 130.5 85.1 100.3 85.1
 Underwriting expense (pct.) 32.5 30.2 31.3 30.4
 Combined ratio (pct.) 163.0 115.3 131.6 115.5
 Combined after policyholders'
 dividends (pct.) 163.0 116.0 131.8 116.1
 Catastrophe losses (pre-tax) $139 $17 $192 $33
 /delval/
 -0- 11/2/92
 /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


MK -- PH028 -- 1734 11/02/92 16:01 EST
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Date:Nov 2, 1992
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