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Hanway: CIGNA Might Split Health, Retirement Units

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NU Online News Service, July 31, 2003, 1:27 p.m. EDT – CIGNA Corp., Philadelphia, says it may sell or spin off its retirement and investment services business to maximize the value of the business.

“We appreciate the importance of financial security to our retirement and investment services customers and we are continuously exploring steps to enhance that security,” CIGNA Chairman H. Edward Hanway says in a statement about the possibility of separating the retirement unit from the managed care unit. “We will choose the option that allows us to deliver on our commitments to provide competitively superior value for clients and their participants and to maximize shareholder value.”

CIGNA recently reported that its managed care operations have been doing worse than it had originally hoped.

Analysts at Moody’s Investors Service, New York, published a commentary suggesting that CIGNA ought to split the retirement and managed care units.