Cigna 2011 Annual Report Download - page 133

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111CIGNA CORPORATION2011 Form10K
PART II
ITEM 8 Financial Statements and Supplementary Data
2009
(In millions)
Pre-Tax
Tax (Expense)
Benet After-Tax
Net unrealized appreciation, securities:
Net unrealized appreciation on securities arising during the year $ 843 $ (292) $ 551
Reclassication adjustment for (gains) included in net income (14) 3 (11)
Net unrealized appreciation, securities $ 829 $ (289) $ 540
Net unrealized depreciation, derivatives $ (30) $ 13 $ (17)
Net translation of foreign currencies $ 76 $ (28) $ 48
Postretirement benets liability adjustment:
Reclassication adjustment for amortization of net losses from past experience and prior service costs $ 7 $ (3) $ 4
Curtailment gain (46) 16 (30)
Reclassication adjustment included in shareholders’ net income (39) 13 (26)
Net change arising from assumption and plan changes and experience (107) 36 (71)
Net postretirement benets liability adjustment $ (146) $ 49 $ (97)
NOTE 18 Shareholders’ Equity and Dividend Restrictions
State insurance departments and foreign jurisdictions that regulate
certain of the Company’s subsidiaries prescribe accounting practices
(which dier in some respects from GAAP) to determine statutory
net income and surplus. e Company’s life insurance and HMO
company subsidiaries are regulated by such statutory requirements. e
statutory net income for the years ended, and statutory surplus as of,
December31 of the Company’s life insurance and HMO subsidiaries
were as follows:
(In millions)
2011 2010 2009
Net income $ 953 $ 1,697 $ 1,088
Surplus $ 5,286 $ 5,107 $ 4,728
As of December31,2011, statutory surplus for each of the Company’s
life insurance and HMO subsidiaries is sucient to meet the minimum
required by regulators. As of December31,2011, the Company’s life
insurance and HMO subsidiaries had investments on deposit with state
departments of insurance with statutory carrying values of $306million.
e Company’s life insurance and HMO subsidiaries are also subject
to regulatory restrictions that limit the amount of annual dividends or
other distributions (such as loans or cash advances) insurance companies
may extend to the parent company without prior approval of regulatory
authorities. e maximum dividend distribution that the Company’s
life insurance and HMO subsidiaries may make during 2012 without
prior approval is approximately $0.9billion. Restricted net assets of the
Company as of December31,2011, were approximately $7.2billion.
One of the Company’s life insurance subsidiaries is permitted to loan
up to $600million to the parent company without prior approval.
NOTE 19 Income Taxes
A. Income Tax Expense
e components of income taxes for the years ended December31 were as follows:
(In millions)
2011 2010 2009
Current taxes
U.S. income $ 320 $ 267 $ 211
Foreign income 58 45 48
State income 20 19 16
398 331 275
Deferred taxes (benets)
U.S. income 198 182 279
Foreign income 43 15 39
State income 1 (7) 1
242 190 319
TOTAL INCOME TAXES $ 640 $ 521 $ 594
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