Cigna changes insurance focus to boost profit

Article Abstract:

CIGNA Corp (Philadelphia, PA) is selling its property-casualty insurance operations and shifting its focus to the more profitable health care and employee benefits areas. During 4th quarter 1998, Cigna gained 75% of net earnings, or $185 million, from employee life, health-care, and disability benefits. In 4th quarter 1997, less than 25% of Cigna's net earnings came from corporate health and retirement benefits. Cigna gained no profits from its property-casualty unit in 1998, because of hurricanes. In spring 1999, Cigna will sell its property-casualty division to Ace Ltd of Bermuda for $3.45 billion.

Comment:

CIGNA Corp (Philadelphia, PA) is selling its property-casualty insurance operations and shifting its focus to the more profitable health care and employee benefits areas.

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Cigna may shun a merger and stay put

Article Abstract:

Sanford C. Bernstein & Co. stock analyst Weston Hicks believes that a merger of Cigna Corp. and Hartford Financial Services would form a worldwide powerhouse in the retail insurance industry. Mr. Hicks said that such a merger would create another global financial service leader. However, if Cigna were to pursue Mr. Hicks' plan, it would have to change its long-term strategy of reformulating itself to become the largest employee-benefits firm in the world. A merger would also make Cigna a larger entity, but would also mean a return of the company's management and risk troubles on a broader level.

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Sovereign to establish official headquarters here

Article Abstract:

Sovereign Bancorp Inc will move its official headquarters to Philadelphia, PA from the Reading, PA suburb of Wyomissing in Apr 1999. The $20 billion asset-banking company will not be relocating corporate posts from the Reading area, but it will add at least 50 jobs to the 25-member Philadelphia-based corporate banking staff by the end of 1999.

Offices of Bank Holding Companies, Bank Holding Companies, Sovereign Bancorp Inc., SVRN

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