Cigna 2011 Annual Report Download - page 89

67CIGNA CORPORATION2011 Form10K
PART II
ITEM 7A Quantitative and Qualitative Disclosures About Market Risk
18. signicant deterioration in economic conditions and signicant
market volatility, that could have an adverse eect on the businesses
of our customers (including the amount and type of health care
services provided to their workforce, loss in workforce and our
customers’ ability to pay their obligations) and our vendors
(including their ability to provide services);
19. adverse changes in state, federal and international laws and
regulations, including health care reform legislation and regulation
that could, among other items, aect the way the Company does
business, increase costs, limit the ability to eectively estimate,
price for and manage medical costs, and aect the Company’s
products, services, market segments, technology and processes;
20. amendments to income tax laws, that could aect the taxation
of employer-provided benets, the taxation of certain insurance
products such as corporate-owned life insurance, or the nancial
decisions of individuals whose variable annuities are covered under
reinsurance contracts issued by the Company;
21. potential public health epidemics, pandemics, natural disasters
and bio-terrorist activity, that could, among other things, cause
the Company’s covered medical and disability expenses, pharmacy
costs and mortality experience to rise signicantly, and cause
operational disruption, depending on the severity of the event
and number of individuals aected;
22. risks associated with security or interruption of information systems,
that could, among other things, cause operational disruption;
23. challenges and risks associated with the successful management
of the Company’s outsourcing projects or key vendors; and
24. the unique political, legal, operational, regulatory and other
challenges associated with expanding our business globally.
is list of important factors is not intended to be exhaustive. Other
sections of the Form10-K, including the “Risk Factors” section, and
other documents led with the Securities and Exchange Commission
include both expanded discussion of these factors and additional risk
factors and uncertainties that could preclude the Company from
realizing the forward-looking statements. e Company does not
assume any obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Management’s Annual Report on Internal
Control over Financial Reporting
Management of Cigna Corporation is responsible for establishing
and maintaining adequate internal controls over nancial reporting.
e Company’s internal controls were designed to provide reasonable
assurance to the Company’s management and Board of Directors
that the Company’s consolidated published nancial statements for
external purposes were prepared in accordance with generally accepted
accounting principles. e Company’s internal control over nancial
reporting include those policies and procedures that:
(i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reect the transactions and dispositions of
the assets and liabilities of the Company;
(ii) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of nancial statements in
accordance with generally accepted accounting principles, and that
receipts and expenditures of the Company are being made only
in accordance with authorization of management and directors
of the Company; and
(iii) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisitions, use or disposition of the
Company’s assets that could have a material eect on the nancial
statements.
Because of its inherent limitations, internal control over nancial
reporting may not prevent or detect misstatements.
Management assessed the eectiveness of the Company’s internal controls
over nancial reporting as of December31,2011. In making this
assessment, Management used the criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission (“COSO”)
in Internal Control-Integrated Framework. Based on management’s
assessment and the criteria set forth by COSO, it was determined that
the Company’s internal controls over nancial reporting are eective
as of December31,2011.
e Company’s independent registered public accounting rm,
PricewaterhouseCoopers, has audited the eectiveness of the Company’s
internal control over nancial reporting, as stated in their report located
on page123 in this Form10-K.
ITEM 7A Quantitative and Qualitative Disclosures
About Market Risk
e information contained under the caption “Market Risk” in the MD&A section of this Form10-K is incorporated by reference.
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