SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2008

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from _____ to _____

Commission file number 1-08323

CIGNA Corporation
(Exact name of registrant as specified in its charter)

Delaware
06-1059331
(State or other jurisdiction
(I.R.S. Employer
of incorporation or organization)
Identification No.)

Two Liberty Place, 1601 Chestnut Street
Philadelphia, Pennsylvania 19192
 (Address of principal executive offices)      (Zip Code)

Registrant's telephone number, including area code (215) 761-1000

Not Applicable
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d)
 of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant
 was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No _

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer,
 or a smaller reporting company.  See definitions of “large accelerated filer”, “accelerated filer”, and “smaller
 reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [X]
  
Accelerated filer [   ]
  
Non-accelerated filer [   ]
  
Smaller Reporting  Company [   ]
  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes _   No x

      As of April 18, 2008, 280,813,911 shares of the issuer's common stock were outstanding.
 

 

CIGNA CORPORATION

INDEX


   
Page No.
PART I.
FINANCIAL INFORMATION
 
  
 
Item 1.   Financial Statements
  
 
Consolidated Statements of Income
 
Consolidated Balance Sheets
 
Consolidated Statements of Comprehensive Income and Changes in Shareholders' Equity
 
Consolidated Statements of Cash Flows
 
Notes to the Financial Statements
 
 
Item 2.   Management's Discussion and Analysis of    Financial Condition and Results of Operations
 
 
Item 3. Quantitative and Qualitative Disclosures About Market Risk
 
 
Item 4. Controls and Procedures
     
PART II.
 
OTHER INFORMATION
  
 
Item 1.   Legal Proceedings
 
 
Item 1A. Risk Factors
 
 
Item 2.   Unregistered Sales of Equity Securities and
Use of Proceeds
 
 
Item 6.   Exhibits
 
SIGNATURE
 
  
EXHIBIT INDEX


As used herein, CIGNA refers to one or more of CIGNA Corporation and its consolidated subsidiaries.
 
 

CIGNA Corporation
            
Consolidated Statements of Income
            
   
Unaudited
  
   
Three Months Ended
  
   
March 31,
  
(In millions, except per share amounts)
  
2008
    
2007
  
Revenues
            
Premiums and fees
   $ 3,851     $ 3,708  
Net investment income
     265       280  
Mail order pharmacy revenues
     296       271  
Other revenues
     143       94  
Realized investment gains
     14       21  
   Total revenues
     4,569       4,374  
Benefits and Expenses
                
Health Care medical claims expense
     1,744       1,719  
Other benefit expenses
     928       836  
Mail order pharmacy costs of goods sold
     239       219  
Guaranteed minimum income benefits expense
     304       24  
Other operating expenses
     1,281       1,163  
   Total benefits and expenses
     4,496       3,961  
Income from Continuing Operations
                
   before Income Taxes
     73       413  
Income taxes (benefits):
                
Current
     77       132  
Deferred
     (59 )     4  
   Total taxes
     18       136  
Income from Continuing Operations
     55       277  
Income from Discontinued Operations, Net of Taxes
     3       12  
Net Income
   $ 58     $ 289  
Earnings Per Share - Basic:
                
   Income from continuing operations
   $ 0.20     $ 0.95  
   Income from discontinued operations
     0.01       0.05  
Net income
   $ 0.21     $ 1.00  
Earnings Per Share - Diluted:
                
   Income from continuing operations
   $ 0.19     $ 0.93  
   Income from discontinued operations
     0.02       0.05  
Net income
   $ 0.21     $ 0.98  
Dividends Declared Per Share
   $ 0.040     $ 0.008  
                 
The accompanying Notes to the Consolidated Financial Statements are an integral part of these statements.
  

 
 
1
 
CIGNA Corporation
                        
Consolidated Balance Sheets
                        
         
Unaudited
          
As of
  
         
As of March 31,
          
December 31,
  
(In millions, except per share amounts)
        
2008
          
2007
  
Assets
                        
Investments:
                        
   Fixed maturities, at fair value (amortized cost, $11,406; $11,409)
         $ 12,033           $ 12,081  
   Equity securities, at fair value (cost, $140; $127)
           144             132  
   Commercial mortgage loans
           3,291             3,277  
   Policy loans
           1,504             1,450  
   Real estate
           49             49  
   Other long-term investments
           541             520  
   Short-term investments
           36             21