NU Online News Service, Feb. 8, 2:14 p.m. – CIGNA Corp., Philadelphia, is reporting $199 million in net income for the fourth quarter of 2001 on $4.9 billion in revenue, down from $277 million in net income on $5.1 billion in revenue for the fourth quarter of 2000.
CIGNA sells employee health, disability and life insurance benefits, retirement services and international health benefits.
Net results for the latest quarter include $96 million in restructuring charges for the benefits operation. They also include $64 million in gains on the sale of a stake in a Japanese life insurance unit and the sale of a life reinsurance unit.
CIGNA is also recording $65 million in investment losses for the quarter. Some of the losses are due to the poor performance of collateralized debt obligations, and some to problems with securities from Enron Corp., Houston, and issuers in Argentina, CIGNA says.
Operating income, which excludes the investment losses and the unusual gains and losses fell to $256 million, from $285 million, the company says.