Delaware
(State or other jurisdiction of incorporation)
|
1‑08323
(Commission File Number)
|
06‑1059331
(IRS Employer
Identification No.)
|
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
[ ]
|
Pre-commencement communication pursuant to Rule 13e-49(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 9.01
|
Financial Statements and Exhibits.
|
|
|
(d)
|
Exhibits.
|
|
|
Exhibit No.
|
Description
|
99.1
|
Cigna Corporation
|
||
Date: July 29, 2016
|
By:
|
/s/ Thomas A. McCarthy |
Thomas A. McCarthy
|
||
Executive Vice President and
|
||
Chief Financial Officer
|
||
(Principal Financial Officer)
|
NEWS RELEASE
|
![]() |
Contact:
|
Will McDowell, Investor Relations – (215) 761-4198
|
Matt Asensio, Media Relations – (860) 226-2599
|
o | Total revenues increased 5% to $10.0 billion in the second quarter |
o | Shareholders' net income for the second quarter was $510 million, or $1.97 per share |
o | Adjusted income from operations1 in second quarter was $515 million, or $1.98 per share |
o | Strong free cash flow provides ongoing financial flexibility |
o | Projected adjusted income from operations per share1,2,3 is now estimated to be in the range of $7.75 to $8.10 in 2016 |
Consolidated Financial Results (dollars in millions, customers in thousands):
|
||||||||||||||||
|
Three Months Ended
|
Six Months
Ended |
||||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
|||||||||||||
|
2016
|
2015
|
2016
|
2016
|
||||||||||||
|
||||||||||||||||
Consolidated Operating Revenues4
|
$
|
9,893
|
$
|
9,471
|
$
|
9,916
|
$
|
19,809
|
||||||||
Net realized investment gains (losses)
|
67
|
21
|
(32
|
)
|
35
|
|||||||||||
Total Revenues
|
$
|
9,960
|
$
|
9,492
|
$
|
9,884
|
$
|
19,844
|
||||||||
Consolidated Earnings, net of taxes
|
||||||||||||||||
Adjusted income from operations1
|
$
|
515
|
$
|
664
|
$
|
601
|
$
|
1,116
|
||||||||
Net realized investment gains
|
44
|
13
|
(21
|
)
|
23
|
|||||||||||
Amortization of other acquired intangible assets
|
(23
|
)
|
(24
|
)
|
(25
|
)
|
(48
|
)
|
||||||||
Special items1
|
(26
|
)
|
(65
|
)
|
(36
|
)
|
(62
|
)
|
||||||||
Shareholders' net income
|
$
|
510
|
$
|
588
|
$
|
519
|
$
|
1,029
|
||||||||
|
||||||||||||||||
Adjusted income from operations1, per share
|
$
|
1.98
|
$
|
2.55
|
$
|
2.32
|
$
|
4.30
|
||||||||
Shareholders' net income, per share
|
$
|
1.97
|
$
|
2.26
|
$
|
2.00
|
$
|
3.97
|
||||||||
|
||||||||||||||||
|
As of the Periods Ended
|
|||||||||||||||
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
|
||||||||||||||||
Global Medical Customers
|
15,141
|
14,771
|
15,129
|
14,999
|
· | Cash and marketable investments at the parent company were approximately $2 billion at June 30, 2016 and $1.4 billion at December 31, 2015. |
· | Year to date, as of July 28, 2016, the Company repurchased 785,000 shares of common stock for approximately $110 million.3 |
Financial Results (dollars in millions, customers in thousands):
|
||||||||||||||||
|
Three Months Ended
|
Six Months
Ended |
||||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
|||||||||||||
|
2016
|
2015
|
2016
|
2016
|
||||||||||||
|
||||||||||||||||
Premiums and Fees
|
$
|
6,943
|
$
|
6,734
|
$
|
7,056
|
$
|
13,999
|
||||||||
Adjusted Income from Operations1
|
$
|
486
|
$
|
528
|
$
|
544
|
$
|
1,030
|
||||||||
Adjusted Margin, After-Tax5
|
6.2
|
%
|
7.0
|
%
|
6.9
|
%
|
6.6
|
%
|
||||||||
|
||||||||||||||||
|
As of the Periods Ended
|
|||||||||||||||
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||
Customers:
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Commercial
|
14,543
|
14,215
|
14,514
|
14,432
|
||||||||||||
Government
|
598
|
556
|
615
|
567
|
||||||||||||
Medical
|
15,141
|
14,771
|
15,129
|
14,999
|
||||||||||||
|
||||||||||||||||
Behavioral Care
|
25,776
|
24,164
|
26,081
|
24,674
|
||||||||||||
Dental6
|
14,880
|
13,818
|
14,836
|
13,869
|
||||||||||||
Pharmacy
|
8,302
|
7,905
|
8,358
|
8,068
|
||||||||||||
Medicare Part D
|
1,037
|
1,458
|
1,083
|
1,476
|
· | Second quarter 2016 premiums and fees increased 3% relative to second quarter 2015, driven by customer growth, specialty contributions, and rate actions in our Commercial employer group business, partially offset by expected reductions in Medicare Part D and Individual customers. |
· | The second quarter medical customer base totaled 15.1 million, including an increase of over 140,000 customers in 2016, driven by organic growth in our Middle Market, Select, International and Medicare Advantage segments. |
· | Second quarter 2016 adjusted income from operations1 and adjusted margin, after-tax5 reflect strong contributions from our Commercial employer and specialty businesses, partially offset by medical cost pressure in our Individual business and costs related to our CMS audit response. |
· | Adjusted income from operations1 for second quarter 2016 did not have a meaningful amount of net prior year reserve development, while second quarter 2015 and first quarter 2016 included favorable prior year reserve development on an after-tax basis of approximately $19 million and $14 million respectively. |
· | Second quarter 2016 also benefitted from $3 million after-tax in updates to 2015 ACA risk mitigation program accruals while second quarter 2015 benefitted from approximately $20 million after-tax in updates to 2014 programs. |
· | On a year to date basis, Cigna has recorded net receivables of $29 million, after-tax related to 2016 risk mitigation programs for our Individual business. |
· | The Total Commercial medical care ratio7 ("MCR") of 78.8% for second quarter 2016 reflects the ongoing strong performance of our Commercial employer group business, partially offset by higher medical costs in our Individual business. |
· | The Total Government MCR7 of 86.4% for second quarter 2016 reflects solid performance in our Medicare Advantage business and less prior year reserve development. |
· | Second quarter 2016 Global Health Care operating expense ratio7 of 20.9% reflects costs related to our CMS audit response as well as continued investments in strategic initiatives, partially offset by revenue growth. |
· | Global Health Care net medical costs payable8 was approximately $2.37 billion at June 30, 2016 and $2.11 billion at December 31, 2015. |
|
Six Months
|
|||||||||||||||
|
Three Months Ended
|
Ended
|
||||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
|||||||||||||
|
2016
|
2015
|
2016
|
2016
|
||||||||||||
|
||||||||||||||||
Premiums and Fees9
|
$
|
800
|
$
|
749
|
$
|
772
|
$
|
1,572
|
||||||||
Adjusted Income from Operations1
|
$
|
83
|
$
|
77
|
$
|
67
|
$
|
150
|
||||||||
Adjusted Margin, After-Tax5
|
9.9
|
%
|
9.8
|
%
|
8.3
|
%
|
9.1
|
%
|
||||||||
|
||||||||||||||||
|
As of the Periods Ended
|
|||||||||||||||
|
June 30,
|
March 31,
|
December 31,
|
|||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Policies9
|
11,965
|
12,762
|
11,855
|
12,888
|
· | Global Supplemental Benefits results continue to reflect the value created by affordable and personalized solutions delivered to individual consumers on a direct basis. |
· | Excluding the impact of foreign currency movements, second quarter 2016 premiums and fees grew 12% over second quarter 2015, reflecting continued business growth. |
· | Second quarter 2016 adjusted income from operations1 and adjusted margin, after-tax5 reflect business growth with some offset from the unfavorable impact of foreign currency movements. |
|
Six Months
|
|||||||||||||||
|
Three Months Ended
|
Ended
|
||||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
|||||||||||||
|
2016
|
2015
|
2016
|
2016
|
||||||||||||
|
||||||||||||||||
Premiums and Fees
|
$
|
1,012
|
$
|
978
|
$
|
1,027
|
$
|
2,039
|
||||||||
Adjusted Income (Loss) from Operations1
|
$
|
(12
|
)
|
$
|
106
|
$
|
15
|
$
|
3
|
|||||||
Adjusted Margin, After-Tax5
|
(1.1
|
%)
|
10.0
|
%
|
1.4
|
%
|
0.1
|
%
|
· | The Group Disability and Life business significantly underperformed our expectations in the second quarter. |
· | Second quarter 2016 premiums and fees grew 3% relative to second quarter 2015, primarily driven by new sales and continued strong persistency. |
· | Second quarter 2016 adjusted loss from operations1 and adjusted margin, after-tax5 reflect the continued impact of modifications to our disability claims management process implemented in the first quarter and poor life claim experience. |
· | Second quarter 2016 adjusted loss from operations1 also includes an unfavorable after-tax impact related to life claim reserve studies of $17 million while second quarter 2015 adjusted income from operations1 includes a favorable after-tax impact related to disability claim reserve studies of $37 million. |
Financial Results (dollars in millions):
|
||||||||||||||||
|
Three Months Ended
|
Six Months
Ended |
||||||||||||||
|
June 30,
|
March 31,
|
June 30,
|
|||||||||||||
|
2016
|
2015
|
2016
|
2016
|
||||||||||||
|
||||||||||||||||
Corporate & Other Operations
|
$
|
(42
|
)
|
$
|
(47
|
)
|
$
|
(25
|
)
|
$
|
(67
|
)
|
· | First quarter 2016 adjusted loss from operations1 included a $23 million after-tax benefit from adoption of a new accounting standard for corporate income taxes from stock-based compensation programs.10 |
Full-Year Ending
|
|||
(dollars in millions, except where noted and per share amounts)
|
December 31, 2016
|
||
Projected Adjusted Income (Loss) from Operations1,2
|
|
|
|
Global Health Care
|
|
$
|
1,900 to 1,930
|
Global Supplemental Benefits
|
|
$
|
255 to 275
|
Group Disability and Life
|
|
$
|
40 to 80
|
Ongoing Businesses
|
|
$
|
2,195 to 2,285
|
|
|
|
|
Corporate & Other Operations
|
|
$
|
(175)
|
Consolidated Projected Adjusted Income from Operations1,2
|
|
$
|
2,020 to 2,110
|
|
|
|
|
Consolidated Projected Adjusted Income from Operations, per share1,2,3
|
|
$
|
7.75 to 8.10
|
|
|
|
|
2016 Projected Operating Metrics and Ratios Outlook
|
|
|
|
Total Revenue Growth
|
|
|
Mid single digit percentage range
|
Full Year Total Commercial Medical Care Ratio7
|
|
|
78.5% to 79.5%
|
Full Year Total Government Medical Care Ratio7
|
|
|
84% to 85%
|
Full Year Global Health Care Operating Expense Ratio7
|
|
|
21% to 22%
|
Global Medical Customer Growth11
|
|
|
Low single digit percentage range
|
2016 Outlook (as of First Quarter 2016 Earnings Release dated May 6, 2016)
|
$8.95 to $9.35
|
- Higher loss ratio in our Group Disability and Life business
|
~ ($0.90)
|
- Higher costs in our Global Health Care segment driven by our CMS audit response and Individual business
|
~ ($0.30)
|
2016 Outlook (Current)
|
$7.75 to $8.10
|
1. | Adjusted income (loss) from operations is defined as shareholders' net income (loss) excluding the following after-tax adjustments: net realized investment results, net amortization of other acquired intangible assets and special items. Net amortization of other acquired intangible assets in 2015 included the one-time benefit of an acquisition in which the fair value of acquired net assets exceeded the purchase price. Special items are identified in Exhibit 2 of this earnings release. |
Adjusted income (loss) from operations is a measure of profitability used by Cigna's management because it presents the underlying results of operations of Cigna's businesses and permits analysis of trends in underlying revenue, expenses and shareholders' net income. This consolidated measure is not determined in accordance with accounting principles generally accepted in the United States (GAAP) and should not be viewed as a substitute for the most directly comparable GAAP measure, shareholders' net income. See Exhibits 1 and 2 for a reconciliation of adjusted income from operations to shareholders' net income.
|
2. | Management is unable to provide a forward-looking reconciliation of adjusted income (loss) from operations to shareholders' net income for full year 2016 because future net realized investment results, net amortization of other acquired intangible assets and additional special items cannot be identified or reasonably estimated at this time. |
3. | The Company's outlook excludes the potential effects of any share repurchases or business combinations that may occur after the date of this earnings release. |
4. | The measure "consolidated operating revenues" is not determined in accordance with GAAP and should not be viewed as a substitute for the most directly comparable GAAP measure, "total revenues." We define consolidated operating revenues as total revenues excluding realized investment results. We exclude realized investment results from this measure because our portfolio managers may sell investments based on factors largely unrelated to the underlying business purposes of each segment. As a result, gains or losses created in this process may not be indicative of past or future underlying performance of the business. See Exhibit 1 for a reconciliation of consolidated operating revenues to total revenues. |
5. | Adjusted margin, after-tax, is calculated by dividing adjusted income (loss) from operations by operating revenues for each segment. |
6. | Prior period dental customers have been revised to conform to current presentation. |
7. | Operating ratios are defined as follows: |
· | Total Commercial medical care ratio represents medical costs as a percentage of premiums for all commercial risk products, including medical, pharmacy, dental, stop loss and behavioral products provided through guaranteed cost or experience-rated funding arrangements in both the United States and internationally. |
· | Total Government medical care ratio represents medical costs as a percentage of premiums for Medicare Advantage, Medicare Part D, and Medicaid products. |
· | Global Health Care Operating Expense Ratio represents operating expenses excluding acquisition related amortization expense as a percentage of operating revenue in the Global Health Care segment. |
8. | Global Health Care medical costs payable are presented net of reinsurance and other recoverables. The gross Global Health Care medical costs payable balance was $2.58 billion as of June 30, 2016 and $2.36 billion as of December 31, 2015. |
9. | Cigna owns a 50% noncontrolling interest in its China joint venture. Cigna's 50% share of the joint venture's earnings is reported in Other Revenues using the equity method of accounting under GAAP. As such, the premiums and fees and policy counts for the Global Supplemental Benefits segment do not include the China joint venture. |
10. | Effective January 1, 2016, the Company adopted ASU 2016-09. Under this new guidance, companies recognize all income tax effects of stock-based compensation in shareholders' net income when awards vest or are exercised. Adopting this new guidance resulted in the Company recording $23 million of tax benefits in adjusted income from operations in the first quarter of 2016 that previously would have been reported in the Balance Sheet as additional paid-in capital. |
11. | Global medical customers include individuals who meet any one of the following criteria: are covered under a medical insurance policy, managed care arrangement, or service agreement issued by Cigna; have access to Cigna's provider network for covered services under their medical plan; or have medical claims and services that are administered by Cigna. |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
REVENUES
|
||||||||||||||||
Premiums
|
$
|
7,654
|
$
|
7,432
|
$
|
15,400
|
$
|
14,834
|
||||||||
Fees
|
1,127
|
1,057
|
2,260
|
2,123
|
||||||||||||
Net investment income
|
294
|
297
|
566
|
573
|
||||||||||||
Mail order pharmacy revenues
|
748
|
625
|
1,445
|
1,203
|
||||||||||||
Other revenues
|
70
|
60
|
138
|
132
|
||||||||||||
Consolidated operating revenues
|
9,893
|
9,471
|
19,809
|
18,865
|
||||||||||||
Net realized investment gains
|
67
|
21
|
35
|
94
|
||||||||||||
Total
|
$
|
9,960
|
$
|
9,492
|
$
|
19,844
|
$
|
18,959
|
||||||||
ADJUSTED INCOME (LOSS) FROM OPERATIONS (1)
|
||||||||||||||||
Global Health Care
|
$
|
486
|
$
|
528
|
$
|
1,030
|
$
|
972
|
||||||||
Global Supplemental Benefits
|
83
|
77
|
150
|
146
|
||||||||||||
Group Disability and Life
|
(12
|
)
|
106
|
3
|
157
|
|||||||||||
Ongoing Operations
|
557
|
711
|
1,183
|
1,275
|
||||||||||||
Corporate and Other
|
(42
|
)
|
(47
|
)
|
(67
|
)
|
(98
|
)
|
||||||||
Total
|
$
|
515
|
$
|
664
|
$
|
1,116
|
$
|
1,177
|
||||||||
After-tax adjustments to reconcile to shareholders' net income:
|
||||||||||||||||
Realized investment gains
|
44
|
13
|
23
|
61
|
||||||||||||
Amortization of other acquired intangible assets, net
|
(23
|
)
|
(24
|
)
|
(48
|
)
|
(52
|
)
|
||||||||
Special items
|
(26
|
)
|
(65
|
)
|
(62
|
)
|
(65
|
)
|
||||||||
Shareholders' net income
|
$
|
510
|
$
|
588
|
$
|
1,029
|
$
|
1,121
|
||||||||
DILUTED EARNINGS PER SHARE
|
||||||||||||||||
Adjusted income from operations (1)
|
$
|
1.98
|
$
|
2.55
|
$
|
4.30
|
$
|
4.52
|
||||||||
After-tax adjustments to reconcile to shareholders' net income:
|
||||||||||||||||
Realized investment gains
|
0.18
|
0.05
|
0.09
|
0.23
|
||||||||||||
Amortization of other acquired intangible assets, net
|
(0.09
|
)
|
(0.09
|
)
|
(0.18
|
)
|
(0.20
|
)
|
||||||||
Special items
|
(0.10
|
)
|
(0.25
|
)
|
(0.24
|
)
|
(0.25
|
)
|
||||||||
Shareholders' net income
|
$
|
1.97
|
$
|
2.26
|
$
|
3.97
|
$
|
4.30
|
||||||||
Weighted average shares (in thousands)
|
259,500
|
260,097
|
259,473
|
260,668
|
||||||||||||
Common shares outstanding (in thousands)
|
256,558
|
257,451
|
||||||||||||||
SHAREHOLDERS' EQUITY at June 30,
|
$
|
13,356
|
$
|
11,290
|
||||||||||||
SHAREHOLDERS' EQUITY PER SHARE at June 30,
|
$
|
52.06
|
$
|
43.85
|
||||||||||||
(1) Adjusted income (loss) from operations is defined as shareholders' net income (loss) excluding the following after-tax adjustments: realized investment results; net amortization of other acquired intangible assets; and special items (identified and quantified on Exhibit 2).
|
|
||||||||||||||||||||||||||||||||||||
Diluted
Earnings
|
Global
|
|||||||||||||||||||||||||||||||||||
Per Share |
Consolidated
|
Health Care
|
||||||||||||||||||||||||||||||||||
Three Months Ended June 30,
|
2Q16
|
2Q15
|
1Q16
|
2Q16
|
2Q15
|
1Q16
|
2Q16
|
2Q15
|
1Q16
|
|||||||||||||||||||||||||||
Adjusted income (loss) from operations
|
$
|
1.98
|
$
|
2.55
|
$
|
2.32
|
$
|
515
|
$
|
664
|
$
|
601
|
$
|
486
|
$
|
528
|
$
|
544
|
||||||||||||||||||
After-tax adjustments to reconcile to shareholders' net income:
|
||||||||||||||||||||||||||||||||||||
Realized investment gains (losses)
|
0.18
|
0.05
|
(0.08
|
)
|
44
|
13
|
(21
|
)
|
19
|
4
|
(12
|
)
|
||||||||||||||||||||||||
Amortization of other acquired intangible assets, net
|
(0.09
|
)
|
(0.09
|
)
|
(0.10
|
)
|
(23
|
)
|
(24
|
)
|
(25
|
)
|
(18
|
)
|
(20
|
)
|
(18
|
)
|
||||||||||||||||||
Special Items:
|
||||||||||||||||||||||||||||||||||||
Debt extinguishment costs
|
-
|
(0.25
|
)
|
-
|
-
|
(65
|
)
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Merger-related transaction costs
|
(0.10
|
)
|
-
|
(0.14
|
)
|
(26
|
)
|
-
|
(36
|
)
|
-
|
-
|
-
|
|||||||||||||||||||||||
Shareholders' net income
|
$
|
1.97
|
$
|
2.26
|
$
|
2.00
|
$
|
510
|
$
|
588
|
$
|
519
|
$
|
487
|
$
|
512
|
$
|
514
|
||||||||||||||||||
Weighted average shares (in thousands)
|
259,500
|
260,097
|
259,447
|
|||||||||||||||||||||||||||||||||
Special Items, pre-tax:
|
||||||||||||||||||||||||||||||||||||
Debt extinguishment costs
|
$
|
-
|
$
|
(100
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||||||||||||||
Merger-related transaction costs
|
(34
|
)
|
- |
(40
|
)
|
-
|
- |
-
|
||||||||||||||||||||||||||||
Total
|
$
|
(34
|
)
|
$
|
(100
|
)
|
$
|
(40
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||||||||||||
Diluted
|
||||||||||||||||||||||||||||||||||||
Earnings
|
Global
|
|||||||||||||||||||||||||||||||||||
Per Share
|
Consolidated
|
Health Care
|
||||||||||||||||||||||||||||||||||
Six Months Ended June 30,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||||||||||||||
Adjusted income (loss) from operations
|
$
|
4.30
|
$
|
4.52
|
$
|
1,116
|
$
|
1,177
|
$
|
1,030
|
$
|
972
|
||||||||||||||||||||||||
After-tax adjustments to reconcile to shareholders' net income:
|
||||||||||||||||||||||||||||||||||||
Realized investment gains (losses)
|
0.09
|
0.23
|
23
|
61
|
7
|
36
|
||||||||||||||||||||||||||||||
Amortization of other acquired intangible assets, net
|
(0.18
|
)
|
(0.20
|
)
|
(48
|
)
|
(52
|
)
|
(36
|
)
|
(43
|
)
|
||||||||||||||||||||||||
Special Items:
|
||||||||||||||||||||||||||||||||||||
Debt extinguishment costs
|
-
|
(0.25
|
)
|
-
|
(65
|
)
|
-
|
-
|
||||||||||||||||||||||||||||
Merger-related transaction costs
|
(0.24
|
)
|
-
|
(62
|
)
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
Shareholders' net income
|
$
|
3.97
|
$
|
4.30
|
$
|
1,029
|
$
|
1,121
|
$
|
1,001
|
$
|
965
|
||||||||||||||||||||||||
Weighted average shares (in thousands)
|
259,473
|
260,668
|
||||||||||||||||||||||||||||||||||
Common shares outstanding as of June 30, (in thousands)
|
256,558
|
257,451
|
||||||||||||||||||||||||||||||||||
Special Items, pre-tax:
|
||||||||||||||||||||||||||||||||||||
Debt extinguishment costs
|
$
|
-
|
$
|
(100
|
)
|
$
|
-
|
$
|
-
|
|||||||||||||||||||||||||||
Merger-related transaction costs
|
(74
|
)
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||
Total
|
$
|
(74
|
)
|
$
|
(100
|
)
|
$
|
-
|
$
|
-
|
||||||||||||||||||||||||||
Global
Supplemental
|
Group
Disability
|
Corporate
and
|
||||||||||||||||||||||||||||||||||
Benefits | and Life | Other | ||||||||||||||||||||||||||||||||||
Three Months Ended June 30,
|
2Q16
|
2Q15
|
1Q16
|
2Q16
|
2Q15
|
1Q16
|
2Q16
|
2Q15
|
1Q16
|
|||||||||||||||||||||||||||
Adjusted income (loss) from operations
|
$
|
83
|
$
|
77
|
$
|
67
|
$
|
(12
|
)
|
$
|
106
|
$
|
15
|
$
|
(42
|
)
|
$
|
(47
|
)
|
$
|
(25
|
)
|
||||||||||||||
After-tax adjustments to reconcile to shareholders' net income:
|
||||||||||||||||||||||||||||||||||||
Realized investment gains (losses)
|
-
|
(3
|
)
|
(1
|
)
|
15
|
5
|
(2
|
)
|
10
|
7
|
(6
|
)
|
|||||||||||||||||||||||
Amortization of other acquired intangible assets, net
|
(5
|
)
|
(4
|
)
|
(7
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Special Items:
|
||||||||||||||||||||||||||||||||||||
Debt extinguishment costs
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(65
|
)
|
-
|
||||||||||||||||||||||||||
Merger-related transaction costs
|
-
|
-
|
-
|
-
|
-
|
-
|
(26
|
)
|
-
|
(36
|
)
|
|||||||||||||||||||||||||
Shareholders' net income
|
$
|
78
|
$
|
70
|
$
|
59
|
$
|
3
|
$
|
111
|
$
|
13
|
$
|
(58
|
)
|
$
|
(105
|
)
|
$
|
(67
|
)
|
|||||||||||||||
Weighted average shares (in thousands)
|
||||||||||||||||||||||||||||||||||||
Special Items, pre-tax:
|
||||||||||||||||||||||||||||||||||||
Debt extinguishment costs
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(100
|
)
|
$
|
-
|
|||||||||||||||||
Merger-related transaction costs
|
-
|
-
|
-
|
-
|
(34
|
)
|
(40
|
)
|
||||||||||||||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(34
|
)
|
$
|
(100
|
)
|
$
|
(40
|
)
|
|||||||||||||||
Global | Group | Corporate | ||||||||||||||||||||||||||||||||||
Supplemental | Disability | and | ||||||||||||||||||||||||||||||||||
Benefits | and Life | Other | ||||||||||||||||||||||||||||||||||
Six Months Ended June 30,
|
2016
|
2015
|
2016
|
2015
|
2016
|
2015
|
||||||||||||||||||||||||||||||
Adjusted income (loss) from operations
|
$
|
150
|
$
|
146
|
$
|
3
|
$
|
157
|
$
|
(67
|
)
|
$
|
(98
|
)
|
||||||||||||||||||||||
After-tax adjustments to reconcile to shareholders' net income: | ||||||||||||||||||||||||||||||||||||
Realized investment gains (losses)
|
(1
|
)
|
-
|
13
|
19
|
4
|
6
|
|||||||||||||||||||||||||||||
Amortization of other acquired intangible assets, net
|
(12
|
)
|
(9
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
Special Items:
|
||||||||||||||||||||||||||||||||||||
Debt extinguishment costs
|
-
|
-
|
-
|
-
|
-
|
(65
|
)
|
|||||||||||||||||||||||||||||
Merger-related transaction costs
|
-
|
-
|
-
|
-
|
(62
|
)
|
-
|
|||||||||||||||||||||||||||||
Shareholders' net income
|
$
|
137
|
$
|
137
|
$
|
16
|
$
|
176
|
$
|
(125
|
)
|
$
|
(157
|
)
|
||||||||||||||||||||||
Weighted average shares (in thousands)
|
||||||||||||||||||||||||||||||||||||
Common shares outstanding as of June 30, (in thousands)
|
||||||||||||||||||||||||||||||||||||
Special Items, pre-tax:
|
||||||||||||||||||||||||||||||||||||
Debt extinguishment costs
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(100
|
)
|
|||||||||||||||||||||||
Merger-related transaction costs
|
-
|
-
|
-
|
-
|
(74
|
)
|
-
|
|||||||||||||||||||||||||||||
Total
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(74
|
)
|
$
|
(100
|
)
|
||||||||||||||||||||||
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