A.M. Best Affirms Ratings of CIGNA Corporation and Its Subsidiaries

Business Wire, Feb 11, 2008

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of "a" for the following insurance subsidiaries of CIGNA Corporation (CIGNA) (Philadelphia, PA) (NYSE: CI): Connecticut General Life Insurance Company (Bloomfield, CT), Life Insurance Company of North America (Philadelphia, PA) and CIGNA Life Insurance Company of New York (New York, NY). Additionally, A.M. Best has affirmed the FSR and ICRs of CIGNA's health maintenance organizations (HMO) and its dental subsidiaries. A.M. Best also has affirmed the ICR and debt ratings of CIGNA. The outlook for all ratings is stable. (See link below for a detailed listing of the companies and ratings.)

The ratings of the subsidiaries are based on CIGNA's consistent trend in operational earnings, growth in membership and its sizable market share relative to its peers. The health-care segment has recorded strong operational margins and contributes to a large portion of the revenues and debt service for CIGNA. Included in the health-care segment is the specialty health-care lines of business, which include dental, pharmacy and behavioral health. In addition, CIGNA's group insurance (life and disability) and international operations produce consistent, strong results and provide diversification from core health-care business. Interest coverage currently is forecasted to exceed 10 times earnings and is projected to remain strong.

Offsetting these favorable indicators is the increase in debt. The financial leverage of CIGNA is currently targeted at 25%-30%, and A.M. Best expects this number to increase to over 30% with any additional debt issued to support the pending Great-West HealthCare merger, which was announced on November 27, 2007. However, A.M. Best expects the debt-to-capital ratio to return to below 30% by the end of 2008. Additional offsetting rating factors include the uncertainties of the Great-West HealthCare acquisition and the inherit risks involved in any acquisition.

For a complete listing of CIGNA Corporation's FSRs, ICRs and debt ratings, please visit www.ambest.com/press/021101cigna.pdf

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.