CIGNA CORP

CIK:0000701221|SEC Filings

Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Premiums	$ 8,994	$ 8,075	$ 27,005	$ 24,283
Fees and other revenues	1,361	1,266	4,087	3,782
Net investment income	355	298	1,036	909
Mail order pharmacy revenues	747	733	2,222	2,200
Realized investment gains (losses):
Other-than-temporary impairments on fixed maturities	(1)	(6)	(19)	(15)
Other realized investment gains (losses), net	1	123	(17)	229
Net realized investment gains (losses)	0	117	(36)	214
Total revenues	11,457	10,489	34,314	31,388
Benefits and Expenses
Global Health Care medical costs	5,360	4,845	16,098	14,684
Other benefit expenses	1,443	1,342	4,322	4,044
Mail order pharmacy costs	602	612	1,776	1,819
Other operating expenses	2,971	2,838	8,666	7,905
Amortization of other acquired intangible assets	48	28	99	88
Total benefits and expenses	10,424	9,665	30,961	28,540
Income before Income Taxes	1,033	824	3,353	2,848
Income taxes (benefits):
Current	248	231	837	821
Deferred	11	31	17	62
Total income taxes	259	262	854	883
Net Income	774	562	2,499	1,965
Less: net income (loss) attributable to noncontrolling interests	2	2	6	(6)
Shareholders' net income	$ 772	$ 560	$ 2,493	$ 1,971
Shareholders' net income per share:
Basic	$ 3.18	$ 2.25	$ 10.28	$ 7.79
Diluted	3.14	2.21	10.14	7.67
Dividends declared per share	$ 0	$ 0	$ 0.04	$ 0.04

Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows from Operating Activities
Net Income	$ 2,499	$ 1,965
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	438	425
Realized investment (gains) losses	36	(214)
Deferred income taxes (benefits)	17	62
Net changes in assets and liabilities, net of non-operating effects:
Premiums, accounts and notes receivable	(243)	(190)
Reinsurance recoverables	100	144
Deferred policy acquisition costs	(195)	(209)
Other assets	339	(156)
Insurance liabilities	408	988
Accounts payable, accrued expenses and other liabilities	113	221
Current income taxes	73	7
Debt extinguishment costs	0	321
Distributions from partnership investments	128	114
Other, net	(69)	33
Net cash provided by (used in) operating activities	3,644	3,511
Proceeds from investments sold:
Fixed maturities and equity securities	1,930	1,376
Investment maturities and repayments:
Fixed maturities and equity securities	1,394	1,444
Commercial mortgage loans	181	253
Other sales, maturities and repayments (primarily short-term and other long-term investments)	588	1,486
Investments purchased or originated:
Fixed maturities and equity securities	(4,461)	(4,292)
Commercial mortgage loans	(288)	(272)
Other (primarily short-term and other long-term investments)	(660)	(722)
Property and equipment purchases	(346)	(340)
Acquisitions, net of cash acquired	0	(33)
Other, net	(12)	0
Net cash provided by (used in) investing activities	(1,674)	(1,100)
Cash Flows from Financing Activities
Deposits and interest credited to contractholder deposit funds	816	965
Withdrawals and benefit payments from contractholder deposit funds	(872)	(1,079)
Net change in short-term debt	(109)	(16)
Payments for debt extinguishment	0	(313)
Repayment of long-term debt	(131)	(1,250)
Net proceeds on issuance of long-term debt	19,884	1,584
Repurchase of common stock	(310)	(1,961)
Issuance of common stock	41	111
Other, net	(204)	(9)
Net cash provided by (used in) financing activities	19,115	(1,968)
Effect of foreign currency rate changes on cash and cash equivalents	(25)	28
Net increase / (decrease) in cash and cash equivalents	21,060	471
Cash and cash equivalents, January 1,	2,972	3,185
Cash and cash equivalents, September 30,	24,032	3,656
Supplemental Disclosure of Cash Information:
Income taxes paid, net of refunds	767	812
Interest paid	$ 167	$ 197

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Investments:
Fixed maturities, at fair value (amortized cost, $22,869; $21,867)	$ 23,268	$ 23,138
Equity securities	579	588
Commercial mortgage loans	1,867	1,761
Policy loans	1,421	1,415
Other long-term investments	1,739	1,518
Short-term investments	102	199
Total investments	28,976	28,619
Cash and cash equivalents	24,032	2,972
Premiums, accounts and notes receivable, net	3,609	3,380
Reinsurance recoverables	5,780	6,046
Deferred policy acquisition costs	2,350	2,237
Property and equipment	1,559	1,563
Deferred tax assets, net	132	39
Goodwill	6,129	6,164
Other assets, including other intangibles	2,227	2,316
Separate account assets	8,162	8,423
Total assets	82,956	61,759
Liabilities:
Contractholder deposit funds	8,069	8,196
Future policy benefits	9,652	10,040
Unpaid claims and claim expenses	5,259	5,168
Global Health Care medical costs payable	2,955	2,719
Unearned premiums	683	724
Total insurance and contractholder liabilities	26,618	26,847
Accounts payable, accrued expenses and other liabilities	7,541	7,290
Short-term debt	9	240
Long-term debt	25,041	5,199
Separate account liabilities	8,162	8,423
Total liabilities	67,371	47,999
Contingencies - Note 16
Redeemable noncontrolling interests	30	49
Shareholders' Equity
Common stock (par value per share, $0.25; shares issued, 296; authorized, 600)	74	74
Additional paid-in capital	2,985	2,940
Accumulated other comprehensive income (loss)	(1,857)	(1,082)
Retained earnings	18,474	15,800
Less: treasury stock, at cost	(4,121)	(4,021)
Total shareholders' equity	15,555	13,711
Total liabilities and shareholders' equity	$ 82,956	$ 61,759
Shareholders' Equity Per Share	$ 63.88	$ 56.2