NU Online News Service, Aug. 1, 2003, 7:24 p.m. EDT – CIGNA Corp., Philadelphia, says its health insurance unit was still profitable during the second quarter.
The company as a whole is reporting a $53 million net loss for the quarter on $4.6 billion in revenue, compared with $214 million in net income on $4.7 billion in revenue for the second quarter of 2002.
CIGNA realized $104 million in losses on investments sold, written down or written off during the second quarter of 2002. During the latest quarter, CIGNA benefited from realizing $109 million in investment gains.
CIGNA has attributed the latest net loss to an increase in health insurance claims costs and a $296 million charge related to problems with the effects of investment market volatility on a block of old annuity reinsurance contracts.