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Delaware
(State
or other jurisdiction of
incorporation)
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1-08323
(Commission
File Number)
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06-1059331
(IRS
Employer
Identification
No.)
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1.
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increased
medical costs that are higher than anticipated in establishing premium
rates in CIGNA’s health care operations, including increased use and costs
of medical services;
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2.
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increased
medical, administrative, technology or other costs resulting from new
legislative and regulatory requirements imposed on CIGNA’s employee
benefits businesses;
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3.
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challenges
and risks associated with implementing operational improvement initiatives
and strategic actions in the health care operations, including those
related to: (i) offering products that meet emerging market
needs, (ii) strengthening underwriting and pricing effectiveness, (iii)
strengthening medical cost and medical membership results, (iv) delivering
quality member and provider service using effective technology solutions,
and (v) lowering administrative costs;
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4.
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risks
associated with pending and potential state and federal class action
lawsuits, disputes regarding reinsurance arrangements, other litigation
and regulatory actions challenging CIGNA’s businesses, government
investigations and proceedings and tax audits;
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5.
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heightened
competition, particularly price competition, which could reduce product
margins and constrain growth in CIGNA’s businesses, primarily the health
care business;
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6.
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risks
associated with CIGNA's mail order pharmacy business which, among other
things, includes any potential operational deficiencies or service issues
as well as loss or suspension of state pharmacy
licenses;
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7.
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significant
changes in interest rates for a sustained period of
time;
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8.
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downgrades
in the financial strength ratings of CIGNA’s insurance subsidiaries, which
could, among other things, adversely affect new sales and retention of
current business;
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9.
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limitations
on the ability of CIGNA’s insurance subsidiaries to dividend capital to
the parent company as a result of downgrades in the subsidiaries’
financial strength ratings, changes in statutory reserve or capital
requirements or other financial constraints;
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10.
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inability
of the program adopted by CIGNA to substantially reduce equity market
risks for reinsurance contracts that guarantee minimum death benefits
under certain variable annuities (including possible market difficulties
in entering into appropriate futures contracts and in matching such
contracts to the underlying equity risk);
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11.
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adjustments
to the reserve assumptions (including lapse, partial surrender, mortality,
interest rates and volatility) used in estimating CIGNA’s liabilities for
reinsurance contracts covering guaranteed minimum death benefits under
certain variable annuities;
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12.
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adjustments
to the assumptions (including annuity election rates and reinsurance
recoverables) used in estimating CIGNA’s assets and liabilities for
reinsurance contracts that guarantee minimum income benefits under certain
variable annuities;
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13.
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significant
stock market declines, which could, among other things, result in
increased expenses for guaranteed minimum income benefit contracts and
pension expenses for CIGNA’s pension plan in future periods as well as the
recognition of additional pension
obligations;
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14.
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unfavorable
claims experience related to workers’ compensation and personal accident
exposures of the run-off reinsurance business, including losses
attributable to the inability to recover claims from
retrocessionaires;
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15.
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significant
deterioration in economic conditions, which could have an adverse effect
on CIGNA’s operations and investments;
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16.
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changes
in public policy and in the political environment, which could affect
state and federal law, including legislative and regulatory proposals
related to health care issues, which could increase cost and affect the
market for CIGNA’s health care products and services; and amendments to
income tax laws, which could affect the taxation of employer provided
benefits, and pension legislation, which could increase pension
cost;
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17.
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potential
public health epidemics and bio-terrorist activity, which could, among
other things, cause CIGNA’s covered medical and disability expenses,
pharmacy costs and mortality experience to rise significantly, and cause
operational disruption, depending on the severity of the event and number
of individuals affected;
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18.
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risks
associated with security or interruption of information systems, which
could, among other things, cause operational
disruption;
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19.
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challenges
and risks associated with the successful management of CIGNA’s outsourcing
projects or key vendors, including the agreement with IBM for provision of
technology infrastructure and related services;
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20.
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the
ability to successfully integrate and operate the businesses acquired from
Great-West by, among other things, renewing insurance and administrative
services contracts on competitive terms, retaining and growing membership,
realizing revenue, expense and other synergies, successfully leveraging
the information technology platform of the acquired businesses, and
retaining key personnel; and
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21.
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the
ability of CIGNA to execute its growth plans by successfully managing
Great-West Healthcare’s outsourcing projects and leveraging CIGNA's
capabilities and those of the business acquired from Great-West to further
enhance the combined organization’s network access position, underwriting
effectiveness, delivery of quality member and provider service, and
increased penetration of its membership base with differentiated product
offerings.
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CIGNA
CORPORATION
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Date:
September 8, 2008
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By: /s/ Michael W. Bell | |
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Michael
W. Bell
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Executive
Vice President and
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Chief
Financial Officer
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