Fitch Affirms CIGNA, Units’ Ratings

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July 14, 2010 Wednesday

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Fitch affirms CIGNA, units' ratings

Imran Ali Ghouri

Fitch affirmed the long- and short-term issuer default ratings of CIGNA at BBB+ and F2, respectively. The rating agency also affirmed the insurer financial strength ratings of the company's primary insurance units at A.

Fitch Ratings on July 12 affirmed the long- and short-term issuer default ratings of CIGNA Corp. at BBB+ and F2, respectively.

The rating agency also affirmed the company's senior debt rating at BBB and the insurer financial strength ratings of its primary insurance units at A.

The units are Connecticut General Life Insurance Co., Life Insurance Co. of North America, CIGNA Life Insurance Co. of New York and CIGNA Worldwide Insurance Co.

The rating outlook remains negative.

The agency said the ratings action factors in the company's improving balance sheet and an expected return to solid earnings and cash flows after a difficult 2008 and early 2009.

The ratings on the company take into account its "established competitive position in the U.S. health benefits and group insurance business, stable profitability, and good operating company balance sheet quality," Fitch noted.

July 20, 2010

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