NU Online News Service, Feb. 7, 11:42 a.m. – CIGNA Corp., Philadelphia, is reporting $47 million in net income for the fourth quarter of 2002 on $4.7 billion in revenue, compared with $191 million in net income on $4.8 billion in revenue for the fourth quarter of 2001.
Net results for the latest quarter include $95 million in restructuring charges and a $50 million reserve to cover the cost of a proposed settlement to a large class-action lawsuit.
The company recorded $9 million in investment gains for the quarter, in spite of problems with bonds, because of gains on real estate investments, CIGNA says.
CIGNA also notes that it had to shift $638 million in shareholders’ equity to its own pension plan, to cope with a reduction in the value of the plan’s assets caused by the stock market slump and low interest rates.
CIGNA’s products include employee benefits and employee retirement and investment services.