This summary is based on the first quarter fiscal 2008 earnings call conducted by CIGNA Corp. (CI: chart) on May 1, 2008.

Management:

- Chairman and CEO: Ed Hanway
- EVP and CFO: Mike Bell
- President, CIGNA HealthCare: David Cordani
- Financial Officer, CIGNA HealthCare: Marcia Dall
- VP of IR: Ted Detrick

Key Investors Issues

- Earnings dropped 5% to $265 million or 94 cents a share.
- Consolidated revenues were $4.6 billion, up 4.56% from $4.4 billion in the prior year.
- The Great-West Healthcare transaction was completed on time and closed on 1 April.

First Quarter Highlights

Earnings were $265 million or 94 cents a share, down 5% from $279 million or 94 cents a share in 2007, reflecting the challenging environment for the HealthCare segment.

- HealthCare earnings were below expectations due to the impact of lower margins on the experience-rated book, and lower than expected guaranteed cost and experience-rated membership.
- The experience-rated book provides the firm with a differentiated product in the marketplace and continues to be an important contributor to earnings.
- Cigna grew aggregate medical membership by 2% on an organic basis, which was in line with expectations, reflecting higher than expected growth in ASO.

The guaranteed cost membership declined more than expected reflecting continued focus on maintaining pricing discipline in a very competitive environment.

- Consolidated revenues were $4.6 billion, up 4.56% from $4.4 billion in the prior year.
- Health care medical claims payable were $780 million.

The Great-West Healthcare transaction was completed on time and closed on April 1st.

- This acquisition is expected to accelerate profitable growth in the small group markets, as well as increase the opportunities for national and mid-size employers to improve the health, well being and security of their employees.

Segment Highlights:

- HealthCare earnings were $138 million, down from $168 million in the prior year.
- Results were impacted by a $7 million after tax loss on a large non-medical account, which is now managed by CIGNA group insurance.
- It also experienced a $4 million after tax impact on the guaranteed cost book, from higher than expected upper respiratory in patient claims, which were related to the increasing incidents of the flu.
- The firm also incurred $4 million of after tax integration expenses associated with the Great-West acquisition.

Results also reflect lower than expected margins on the experience rated book, lower net investment income and lower guaranteed costs and experience rated membership partly offset by contributions from the specialty businesses.

- Experience-rated margins were driven by higher than expected medical costs on accounts and deficit, and lower than expected net premium yields, in part reflecting competitive market conditions.
- The firm is taking actions to improve experience-rated earnings in the balance of the year, including securing additional renewal pricing increases, and accelerating the deficit recovery efforts.
- Membership grew organically by 200,000 members in the quarter, a 2% increase relative to year end 2007.

Guaranteed cost membership declined by 9%, reflecting focus on maintaining pricing discipline, in an environment which continues to be very competitive.

- HealthCare premiums and fees increased 1% versus 2007, primarily reflecting rate increases and higher specialty premiums, mostly offset by the declining guaranteed cost membership.
- Operating expenses increased relative to last year, primarily reflecting higher technology and customer acquisition expenses.

- Disability and Life reported earnings of $68 million on 9% year-over-year premium growth, and an after tax margin that continues to be industry leading.
- In the international segment, earnings of $52 million, reflected continued growth and competitively strong margins in the life, accident and supplemental health and expatriate benefits businesses.
- Results for the remaining operations, including run-off reinsurance, other operations and corporate were $7 million of earnings including the net favorable impact of settlement activity.

Investment Portfolio:

- The investment strategy is to maintain a high quality and well diversified portfolio.
- There is no direct exposure to subprime loans and de-minimus direct exposure to residential mortgages.
- The current commercial mortgage portfolio results are strong, reflecting the consistent disciplined approach to underwriting as all loans in this portfolio are fully performing, with none currently 30 days delinquent.