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Delaware
(State
or other jurisdiction of incorporation)
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1-08323
(Commission
File Number)
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06-1059331
(IRS
Employer
Identification
No.)
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1.
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increased
medical costs that are higher than anticipated in establishing premium
rates in CIGNA’s health care operations, including increased use and costs
of medical services;
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2.
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increased
medical, administrative, technology or other costs resulting from
new
legislative and regulatory requirements imposed on CIGNA’s employee
benefits businesses;
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3.
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challenges
and risks associated with implementing operational improvement initiatives
and strategic actions in the health care operations, including those
related to: (i) offering products that meet emerging market
needs, (ii) strengthening underwriting and pricing effectiveness,
(iii)
strengthening medical cost and medical membership results, (iv) delivering
quality member and provider service using effective technology solutions,
and (v) lowering administrative
costs;
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4.
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risks
associated with pending and potential state and federal class action
lawsuits, purported securities class action lawsuits, disputes regarding
reinsurance arrangements, other litigation and regulatory actions
challenging CIGNA’s businesses and the outcome of pending government
proceedings and federal tax audits;
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5.
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heightened
competition, particularly price competition, which could reduce product
margins and constrain growth in CIGNA’s businesses, primarily the health
care business;
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6.
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significant
changes in interest rates;
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7.
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downgrades
in the financial strength ratings of CIGNA’s insurance subsidiaries, which
could, among other things, adversely affect new sales and retention
of
current business;
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8.
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limitations
on the ability of CIGNA’s insurance subsidiaries to dividend capital to
the parent company as a result of downgrades in the subsidiaries’
financial strength ratings, changes in statutory reserve or capital
requirements or other financial
constraints;
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9.
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inability
of the program adopted by CIGNA to substantially reduce equity market
risks for reinsurance contracts that guarantee minimum death benefits
under certain variable annuities (including possible market difficulties
in entering into appropriate futures contracts and in matching such
contracts to the underlying equity
risk);
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10.
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adjustments
to the reserve assumptions (including lapse, partial surrender, mortality,
interest rates and volatility) used in estimating CIGNA’s liabilities for
reinsurance contracts covering guaranteed minimum death benefits
under
certain variable annuities;
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11.
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adjustments
to the assumptions (including annuity election rates and reinsurance
recoverables) used in estimating CIGNA’s assets and liabilities for
reinsurance contracts that guarantee minimum income benefits under
certain
variable annuities;
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12.
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significant
stock market declines, which could, among other things, result in
increased pension expenses of CIGNA’s pension plan in future periods and
the recognition of additional pension
obligations;
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13.
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unfavorable
claims experience related to workers’ compensation and personal accident
exposures of the run-off reinsurance business, including losses
attributable to the inability to recover claims from
retrocessionaires;
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14.
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significant
deterioration in economic conditions, which could have an adverse
effect
on CIGNA’s operations and
investments;
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15.
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changes
in public policy and in the political environment, which could affect
state and federal law, including legislative and regulatory proposals
related to health care issues, which could increase cost and affect
the
market for CIGNA’s health care products and services; and amendments to
income tax laws, which could affect the taxation of employer provided
benefits, and pension legislation, which could increase pension
cost;
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16.
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potential
public health epidemics and bio-terrorist activity, which could,
among
other things, cause CIGNA’s covered medical and disability expenses,
pharmacy costs and mortality experience to rise significantly, and
cause
operational disruption, depending on the severity of the event and
number
of individuals affected;
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17.
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risks
associated with security or interruption of information systems,
which
could, among other things, cause operational disruption;
and
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18.
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challenges
and risks associated with the successful management of CIGNA’s outsourcing
projects or key vendors, including the agreement with IBM for provision
of
technology infrastructure and related
services.
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CIGNA
CORPORATION
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Date: September 10,
2007
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By: /s/
Michael W. Bell
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Michael
W. Bell
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Executive
Vice President and
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Chief
Financial Officer
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