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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 the Company’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 the Company’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 ongoing operations of the businesses,
including those related to: (i) growth in targeted geographies, product
lines, buying segments and distribution channels, (ii) offering products
that meet emerging market needs, (iii) strengthening underwriting and
pricing effectiveness, (iv) strengthening medical cost and medical
membership results, (v) delivering quality member and provider service
using effective technology solutions, (vi) lowering administrative costs
and (vii) transitioning to an integrated operating company model,
including operating efficiencies related to the
transition;
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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 the Company’s businesses, including
disputes related to payments to providers, government investigations and
proceedings, and tax audits and related litigation;
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5.
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heightened
competition, particularly price competition, which could reduce product
margins and constrain growth in the Company’s businesses, primarily
the Health Care
business;
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6.
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risks
associated with the Company’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 and deterioration in the loan to value ratios of
commercial real estate investments for a sustained period of
time;
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8.
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downgrades
in the financial strength ratings of the Company’s insurance subsidiaries,
which could, among other things, adversely affect new sales, retention of
current business as well as a downgrade in financial strength ratings of
reinsurers which could result in increased statutory reserve or capital
requirements;
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9.
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limitations
on the ability of the Company’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 the Company 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
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| 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 the Company’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 amounts
collectible from reinsurers) used in estimating the Company’s assets and
liabilities for reinsurance contracts covering guaranteed 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,
guaranteed minimum death benefit contracts and the Company’s pension plans
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 and significant market volatility,
which could have an adverse effect on the Company’s
operations, investments, liquidity and access to capital
markets;
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16.
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significant
deterioration in economic conditions and significant market volatility,
which could have an adverse effect 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
receivables) and our vendors (including their ability to provide
services);
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17.
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adverse
changes in state and federal laws and regulations, including health care
reform legislation and regulation which could, among other items, affect
the way the Company does business, increase cost, limit the ability to
effectively estimate, price for and manage medical costs, and affect the
Company’s health care products, services, technology and
processes;
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18.
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amendments
to income tax laws, which could affect the taxation of employer provided
benefits and certain insurance products such as corporate-owned life
insurance;
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19.
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potential
public health epidemics, pandemics and bio-terrorist activity, which
could, among other things, cause the Company’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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20.
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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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21.
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challenges
and risks associated with the successful management of the Company’s
outsourcing projects or key vendors, including the agreement with IBM for
provision of technology infrastructure and related
services;
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22.
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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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23.
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the
ability of the Company to execute its growth plans by
successfully managing Great-West Healthcare’s outsourcing projects and
leveraging the Company's capabilities and those of the
businesses 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:
June 3, 2010
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By:
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/s/ Annmarie T. Hagan | |
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Annmarie
T. Hagan
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Executive
Vice President &
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Chief
Financial Officer
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