A.M. Best Assigns Ratings to CIGNA Corporation's Senior Unsecured Notes

Business Wire, March 13, 2007

OLDWICK, N.J. -- A.M. Best Co. has assigned debt ratings of "bbb" to $250 million 5.375% senior unsecured notes due March 2017 and to $250 million 6.15% senior unsecured notes due November 2036 to CIGNA Corporation (CIGNA) (Philadelphia, PA) [NYSE: CI]. The outlook on both ratings is stable.

The proceeds from the offerings will be used to replace two securities maturing in 2007, which total $376 million, and for general corporate purposes.

These rating actions reflect CIGNA's strength in operating performance, growth in healthcare membership and good financial flexibility. CIGNA's financial leverage is expected to remain at approximately 27%, and debt service coverage remains strong at more than 15 times. Earnings in the healthcare segment have remained fairly stable excluding prior year development, which A.M. Best views positively due to the competitive pricing environment.

Membership in the healthcare segment experienced some organic growth in 2006, with projections for 2007 indicating additional member growth of between 5% and 6%. Financial flexibility is adequate for the current ratings including an appropriate level of debt and interest coverage, along with access to a $1.75 billion letter of credit.

Partially offsetting factors include the decline in the company's cash position and decline in the risk-based capitalization levels at the company's health maintenance organization subsidiaries.

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.