Cigna 2010 Annual Report Download - page 111

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CIGNA CORPORATION2010 Form 10K 91
PART II
ITEM 8 Financial Statements and Supplementary Data
In the Company’s Consolidated Income Statements, Premiums
and fees were presented net of ceded premiums, and Total benefi ts and expenses were presented net of reinsurance recoveries, in the
following amounts:
(In millions)
2010 2009 2008
Premiums and Fees
Short-duration contracts:
Direct $ 16,611 $ 13,886 $ 13,969
Assumed 496 1,076 1,221
Ceded (187) (192) (242)
16,920 14,770 14,948
Long-duration contracts:
Direct 1,687 1,499 1,521
Assumed 36 33 53
Ceded:
Individual life insurance and annuity business sold (195) (209) (220)
Other (55) (52) (49)
1,473 1,271 1,305
TOTAL $ 18,393 $ 16,041 $ 16,253
Reinsurance recoveries
Individual life insurance and annuity business sold $ 321 $ 322 $ 368
Other 156 178 282
TOTAL $ 477 $ 500 $ 650
e decrease in assumed premiums in 2010 primarily refl ects the
eff ect of the Company’s exit from two large, non-strategic assumed
government life insurance programs as well as the transfer of policies
assumed in the acquisition of Great-West Healthcare directly to
one of the Company’s insurance subsidiaries in 2010.  e eff ects
of reinsurance on written premiums and fees for short-duration
contracts were not materially diff erent from the recognized premium
and fee amounts shown in the above table.
NOTE 9 Goodwill, Other Intangibles, and Property and Equipment
Goodwill primarily relates to the Health Care segment ($2.9 billion)
and, to a lesser extent, the International segment ($240 million) and
increased by approximately $230 million during 2010 as a result
of the acquisition of Vanbreda International and foreign currency
translation after the acquisition.  e fair value of the Company’s
reporting units is substantially in excess of their carrying value
therefore the risk for future impairment is unlikely.
Other intangible assets were comprised of the following at
December 31:
(Dollars in millions)
Cost Accumulated
Amortization Net Carrying Value
Weighted Average
Amortization
Period (Years)
2010
Customer relationships $ 587 $ 277 $ 310 12
Other 70 22 48 14
Total reported in other assets, including other intangibles 657 299 358
Internal-use software reported in property and equipment 1,379 875 504 5
TOTAL OTHER INTANGIBLE ASSETS $ 2,036 $ 1,174 $ 862
2009
Customer relationships $ 386 $ 254 $ 132 9
Other 46 12 34 10
Total reported in other assets, including other intangibles 432 266 166
Internal-use software reported in property and equipment 1,168 692 476 4
TOTAL OTHER INTANGIBLE ASSETS $ 1,600 $ 958 $ 642
e increase in intangible assets in 2010 primarily relates to the
acquisition of Vanbreda International.