Capital Outlook:

- The parent company capital position continues to be strong, and subsidiaries remain well capitalized.
- The firmended the quarterwith cash and short-term investments of the parent of approximately $1.6 billion.
- This included $550 million and proceeds from debt issuance, as well as $120 million of subsidiary dividends.
- The firm used $1.5 billion of this balance to finance the Great-West acquisition, which closed on April 1st.

Update on the Great-West HealthCare Operations:

- CIGNA acquired 1.4 million full service medical members, as well as some membership in TPA arrangements.
- Margins on the full service book continue to be strong, and the firm is currently completing detailed integration plans with a strong focus on stabilizing and in resuming membership growth.
- The acquisition strengthens the firm’s geographic presence for a national and regional segment.
- It accelerates segment strategy in the small segment area and provides the opportunity to cross sell additional programs and services to thousands of new employer relationships.

Strategic Insights:

- The firm’s strategy is to develop innovative products and services that promote consumer engagement to drive personal health improvement at a competitive cost.
- The acquisition of Great-West on April 1st expands the firm’s reach geographically in the west, and within buyer segments, specifically, the small employer segment.
- CIGNA expects to secure further rate actions on the renewing book of business for the balance of the year, and additional specialty penetration on new business.

It is also focused on improving the medical cost result through a combination of actions, including intensifying the clinical reviews, large claim negotiations and obtaining additional provider discounts in targeted areas.

- In addition, the firm is accelerating efforts for deficit recovery to improve profitability on specific accounts.
- The firm expects higher existing case member disenrollment and lower new sales, reflecting the impact of the economic slowdown on customers and the former and the very competitive pricing environment on the ladder.
- By combining the capabilities of the two organizations, including the strong total medical cost position, it expects to stabilize and resume growth of the Great-West membership.
- The measured approach integration will achieve operating expense synergies over time, and the firm will expand choice by offering specialty products and health efficacy programs focused on improving health to current Great-West members.

Full Year 2008 Outlook:

- Earnings per share will be in the range of $4.05 and $4.25 per share, reflecting the impact of the Great-West acquisition.
- Subsidiary dividends to be $380 million taking into account $400 million of surplus that the firm plans to retain in the subsidiaries to support the Great-West acquisition.
- The firm now expect to have the capacity to resume share repurchase, or consider additional acquisitions during the second quarter of 2008.
- Medical membership is expected to increase by 2% to 2.5%, excluding Great-West.

The firm expects guaranteed cost membership to decline by an addition 1% in the balance of the year as a result of maintaining pricing and underwriting discipline in a competitive market.

- The firm continues to expect medical cost trend for the total book of business excluding Great-West to be in the range of 6.5% to 7.5%.
- HealthCare earnings are expected to be in the range of $735 million to $775 million.
- Great-West is expected to contribute $40 million to $50 million in earnings excluding the related financing cost of $15 million after-tax, which will be reflected in the corporate segment.
- CIGNA expects growth in the service business including the impact of increased membership and higher penetration of the specialty products to deliver $50 million to $65 million of after-tax year-over-year earnings growth.

Guaranteed cost pricing actions in excess with medical trend to improve to approximately 83%.

- The impact of the improved MLR will be tempered by a projected full year guarantee cost membership decrease of 10%.
- Investments in segment expansion initiatives in the individual, small group and seniors markets will be dilutive in by approximately $15 million after-tax, but will be accretive the earnings starting in 2009.

Key questions and answers from the first quarter earnings call conducted by CIGNA Corp. (CI: chart) on May 1, 2008.

Matthew Borsch (Goldman Sachs): What are you seeing in terms of price competition particularly as it''s impacting your fully insured business?

David Cordani: The pricing environment is very competitive. Our guarantee cost membership results are a bit lower than our expectations as a result of that. The primary driver is lower new business sales and we orient that specifically to the pricing environment and our commitment to maintain pricing discipline.

Matthew Borsch (Goldman Sachs): How should we think about the Great-West enrollment in terms of where it fits in your three categories of commercial enrollment?

David Cordani: As you think about the Great-West membership first and foremost about a third of the total membership falls in what we would call the small segment or what Great-West refers to as the select segment.

And about two-thirds falls in to what we would have called the middle market segment, so in the 200 or 250 from where Great-West cuts it to 5,000 and then large single side employers.