MOODY'S RATING REDUCTION OF CIGNA CORPORATION 'SIGN OF THE TIMES'
PHILADELPHIA, Dec. 18 /PRNewswire/ -- CIGNA Corporation (NYSE: CI) Chairman and Chief Executive Officer Wilson H. Taylor, responding today to Moody's Investor Service Inc.'s decision to lower various credit and claims-paying ratings of the company and certain subsidiaries, said that the rating agency's action was more "a sign of the times" than a reflection of any change in CIGNA's overall financial strength. "CIGNA continues to be a strong and financially secure insurance and financial services organization," Taylor said. "Although this year's performance of our property and casualty operations reflects record industry catastrophes and a difficult competitive marketplace, we have appropriate capital resources available to fund our existing businesses and to take advantage of future opportunities. While 1992 earnings are expected to be significantly less than those of 1991, we expect 1993 results to improve over 1991, absent major catastrophe losses or substantial deterioration in real estate market conditions." Taylor added, "the ratings changes are basically a sign of the times, as Moody's and other rating agencies have responded to perceived concerns throughout the insurance industry and have become more conservative in their rating process." Taylor also commented on Moody's decision to downgrade the claims- paying ability of CIGNA's Connecticut General Life Insurance subsidiary (CG). He noted that Standard & Poor's and A.M. Best's, both among the nation's most respected rating services, have continued their highest ratings for the company -- AAA from Standard & Poor's and A++ from Best's. Best's has acknowledged CG Life's superior earnings, favorable capitalization and "the prominent position which Connecticut General Life holds in the employee benefit and pension fields." "While we are particularly disappointed with the Moody's rating change for CG," Taylor said. "The Aa3' rating is, nevertheless, a positive endorsement of a financially strong company. As defined by Moody's, insurance companies in the Aa range offer excellent financial security' and, together with the Aaa group, constitute what are generally known as high grade companies.'" CIGNA companies are leading providers of insurance, retirement benefits, investment management, health care and financial services to businesses and individuals worldwide. /delval/ -0- 12/18/92 /CONTACT: Michael J. Monroe of CIGNA, 215-761-6133/ (CI)
CO: CIGNA Corporation; Moody's Investor Service Inc.'s ST: Pennsylvania IN: INS SU:
CC -- PH039 -- 8431 12/18/92 17:11 EST
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|Date:||Dec 18, 1992|
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