CIGNA Corporation and its subsidiaries constitute one of the largest investor-owned
employee benefits organizations in the United States. Its subsidiaries are major
providers of employee benefits offered through the workplace, including health
care products and services, group life, accident and disability insurance, retirement
products and services and investment management. CIGNA’s major insurance subsidiary,
Connecticut General Life Insurance Company (“CG Life”), traces its origins to
1865. CIGNA Corporation was incorporated in the State of Delaware in 1981.
CIGNA’s revenues are derived principally from premiums and fees, and investment
income. The financial results of the operating divisions are reported in the
following segments, as shown:
Health Care Segment
CIGNA HealthCare
Disability and Life Segment
CIGNA Group Insurance
Retirement Segment
CIGNA Retirement & Investment Services
International Segment
CIGNA International
Run-off Reinsurance Segment
CIGNA Reinsurance
Other Operations consists of:
deferred gains recognized from the 1998 sale of the individual life insurance
and annuity business;
corporate life insurance on which policy loans are outstanding;
settlement annuity business; and
certain investment management services.
CIGNA employs group sales representatives to distribute the managed care and
indemnity products and services of this segment through insurance brokers, insurance
consultants and directly to employers. CIGNA also employs representatives to
sell medical cost containment, managed behavioral health care and employee assistance
services, and disability management programs directly to insurance companies,
HMOs, third party administrators and employer groups.
Competition
Managed care and indemnity businesses are highly competitive. Recent industry
consolidation (particularly among Blue Cross and Blue Shield companies) and
the development of PPO products that are competitive with CIGNA’s have exacerbated
this already competitive business environment. While no one competitor or small
number of competitors dominates the health care market, a trend of continued
consolidation in the industry could change this situation.
The principal competitors of CIGNA’s managed care and indemnity businesses
are:
other large insurance companies that provide group health and life insurance
products;
Blue Cross and Blue Shield organizations;
stand-alone HMOs and PPOs;
HMOs affiliated with major insurance companies and hospitals; and
national managed pharmacy, behavioral health and cost containment services
companies.
The principal competitive factors that affect the products of the Disability
and Life segment are underwriting and pricing, relative operating efficiency,
distribution methodologies and producer relations, variety of products and services
offered, and the quality of customer service and claims management.
The retirement plan marketplace is highly competitive. CIGNA’s competitors
include mutual fund companies, insurance companies, banks, investment advisors,
and certain service and professional organizations. Competition focuses on service,
technology, cost, variety of investment options, investment performance and
financial strength, as indicated for CIGNA’s retirement business by ratings
of CG Life by nationally recognized rating agencies.
2.79% 
88.92 %