Cigna 2010 Annual Report Download - page 53

CIGNA CORPORATION  2010 Form 10K 33
PART II
ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations
ITEM 7 Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Index
Introduction ...............................................................................................................................................................................................................................................................................................................................................................33
Consolidated Results of Operations .......................................................................................................................................................................................................................................................................................38
Critical Accounting Estimates .........................................................................................................................................................................................................................................................................................................41
Segment Reporting ...........................................................................................................................................................................................................................................................................................................................................48
Health Care .......................................................................................................................................................................................................................................................................................................................................................48
Disability and Life ...................................................................................................................................................................................................................................................................................................................................52
International ....................................................................................................................................................................................................................................................................................................................................................54
Run-off Reinsurance .............................................................................................................................................................................................................................................................................................................................55
Other Operations .....................................................................................................................................................................................................................................................................................................................................58
Corporate .............................................................................................................................................................................................................................................................................................................................................................58
Liquidity and Capital Resources ..................................................................................................................................................................................................................................................................................................59
Investment Assets ................................................................................................................................................................................................................................................................................................................................................65
Market Risk .................................................................................................................................................................................................................................................................................................................................................................69
Cautionary Statement ..................................................................................................................................................................................................................................................................................................................................70
Introduction
As used in this document, “CIGNA” and the “Company” may
refer to CIGNA Corporation itself, one or more of its subsidiaries,
or CIGNA Corporation and its consolidated subsidiaries. CIGNA
Corporation is a holding company and is not an insurance company.
Its subsidiaries conduct various businesses, which are described
in this Annual Report on Form 10-K for the fi scal year ended
December 31, 2010 (“Form 10-K”).
In this fi ling and in other marketplace communications, the
Company makes certain forward-looking statements relating to the
Company’s fi nancial condition and results of operations, as well as
to trends and assumptions that may aff ect the Company. Generally,
forward-looking statements can be identifi ed through the use of
predictive words (e.g., “Outlook for 2010”). Actual results may
diff er from the Company’s predictions. Some factors that could cause
results to diff er are discussed throughout Management’s Discussion
and Analysis (“MD&A”), including in the Cautionary Statement
beginning on page 70.  e forward-looking statements contained in
this fi ling represent management’s current estimate as of the date of
this fi ling. Management does not assume any obligation to update
these estimates.
 e following discussion addresses the fi nancial condition
of the Company as of December 31, 2010, compared with
December 31, 2009, and a comparison of results of operations for
the years ended December 31, 2010, 2009 and 2008.
CIGNA is a global health service organization with subsidiaries that
are major providers of medical, dental, disability, life and accident
insurance and related products and services. In the U.S., the majority
of these products and services are off ered through employers
and other groups (e.g. unions and associations) and in selected
international markets, CIGNA off ers supplemental health, life and
accident insurance products, expatriate benefi ts and international
health care coverage and services to businesses, governmental and
non-governmental organizations and individuals. In addition to its
ongoing operations described above, the Company also has certain
run-off operations, including a Run-off Reinsurance segment.
Unless otherwise indicated, fi nancial information in the MD&A is
presented in accordance with accounting principles generally accepted
in the United States (“GAAP”). Certain reclassifi cations have been
made to prior period amounts to conform to the presentation of
2010 amounts. See Note 2 to the Consolidated Financial Statements
for additional information.
Overview of 2010 Results
Summarized below are the key highlights for 2010. For additional
information, see the remaining sections of this MD&A, which
discuss both consolidated and segment results in more detail.