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<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>cigna10k.htm
<TEXT>
<HTML>
<HEAD>
  <TITLE>CIGNA 2002 FORM 10-K</TITLE>
</HEAD>
<BODY>
<P ALIGN="CENTER"><FONT SIZE="+2"><B>UNITED STATES</B></FONT><BR>
<FONT SIZE="+1"><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT><BR>
<B>Washington, D.C. 20549</B> </P>

<P ALIGN="CENTER"><FONT SIZE="+2"><B>FORM 10-K</B></FONT></P>

<HR ALIGN="CENTER" WIDTH=25% SIZE=1 NOSHADE>

<P ALIGN="LEFT"><B>(Mark One)<BR>
[X]&nbsp;&nbsp;&nbsp;&nbsp;ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACT OF 1934 </B> <BR></P>

<P ALIGN="CENTER"><B>For the fiscal year ended December 31, 2002<BR>
OR</B></P>

<P ALIGN="LEFT"><B>[&nbsp;&nbsp;]&nbsp;&nbsp;&nbsp;TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXCHANGE ACT OF 1934</B></P>

<P ALIGN="CENTER"><B>For the transition period from ______________ to ______________ <BR>
Commission file number 1-8323<BR><BR>
<FONT SIZE="+3">CIGNA Corporation</FONT></B><BR>
(Exact name of registrant as specified in its charter)</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TD ALIGN="CENTER" WIDTH="50%"><B>Delaware</B></TD>
     <TD ALIGN="CENTER" WIDTH="50%"><B>06-1059331</B></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">(State or other jurisdiction of</TD>
     <TD ALIGN="CENTER">(I.R.S. Employer</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">incorporation or organization)</TD>
     <TD ALIGN="CENTER"> Identification No.)</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER"><B>One Liberty Place, Philadelphia, Pennsylvania</B></TD>
     <TD ALIGN="CENTER"><B>19192</B></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">(Address of principal executive offices)</TD>
     <TD ALIGN="CENTER">(Zip code)</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER" COLSPAN="2"><B>Registrant's telephone number, including area code (215) 761-1000</B></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER" COLSPAN="2"><HR ALIGN="CENTER" WIDTH=25% SIZE=1 NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER" COLSPAN="2"><B>Securities registered pursuant to section 12(b) of the Act</B>:</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="CENTER"><B><U>Title of each class</U></B> </TD>
     <TD ALIGN="CENTER"><B>Name of each exchange on<BR><U>which registered</U></B></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">Common Stock, Par Value $0.25; </TD>
     <TD ALIGN="CENTER">New York Stock Exchange, Inc.</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">Preferred Stock</TD>
     <TD ALIGN="CENTER">Pacific Exchange, Inc.</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">Purchase Rights</TD>
     <TD ALIGN="CENTER">Philadelphia Stock Exchange, Inc.</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER" COLSPAN="2"><B>Securities registered pursuant to section 12(g) of the Act:</B></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER" COLSPAN="2">None</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER"></TD>
     <TD ALIGN="CENTER"></TD></TR>
</TABLE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 <U>X</U> &nbsp;No <U>&nbsp;&nbsp;</U></P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark if
disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [X] </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark
whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes <U>X</U>&nbsp; No <U>&nbsp;&nbsp;</U> </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The aggregate market
value of the voting stock held by non-affiliates of the registrant as of June 30, 2002,
was approximately $13.3 billion.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of January
31, 2003, 139,593,057 shares of the registrant&#146;s Common Stock were
outstanding. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parts I and II
of this Form 10-K incorporate by reference information from the
registrant&#146;s annual report to shareholders for the year ended December 31,
2002. Part III of this Form 10-K incorporates by reference information from the
registrant&#146;s proxy statement to be dated on or about March 21, 2003. </P>




<HR ALIGN="CENTER" WIDTH="100%" SIZE="2" NOSHADE>

<P ALIGN="CENTER"><B>TABLE OF CONTENTS</B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD ALIGN="CENTER"><B><U>Page</U></B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="12%" ALIGN="LEFT"><B><A HREF="#PARTI">PART I</A></B></TD>
     <TD WIDTH="78%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="10%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#PARTI">Item 1.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#PARTI">Business</A></TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT"><A HREF="#IA">A.</A>&nbsp;&nbsp;&nbsp;<A HREF="#IA">Description of Business</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IA">3</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT"><A HREF="#IB">B.</A>&nbsp;&nbsp;&nbsp;<A HREF="#IB">Financial Information about Industry Segments</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IB">4</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#IC">C.</A>&nbsp;&nbsp;&nbsp;<A HREF="#IC">Employee Health Care, Life and Disability Benefits</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IC">5</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#ID">D.</A>&nbsp;&nbsp;&nbsp;<A HREF="#ID">Employee Retirement Benefits and Investment Services</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#ID">16</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#IE">E.</A>&nbsp;&nbsp;&nbsp;<A HREF="#IE">International Life, Health and Employee Benefits</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IE">23</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#IF">F.</A>&nbsp;&nbsp;&nbsp;<A HREF="#IF">Run-off Reinsurance Operations</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IF">26</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#IG">G.</A>&nbsp;&nbsp;&nbsp;<A HREF="#IG">Other Operations</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IG">29</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#IH">H.</A>&nbsp;&nbsp;&nbsp;<A HREF="#IH">Investments and Investment Income</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IH">30</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#II">I.</A>&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#II">Regulation</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#II">37</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#IJ">J.</A>&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#IJ">Ratings</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IJ">41</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#IK">K.</A>&nbsp;&nbsp;&nbsp;<A HREF="#IK">Miscellaneous</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IK">43</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#I2">Item 2.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#I2">Properties</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#I2">43</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#I3">Item 3.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#I3">Legal Proceedings</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#I3">43</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#I4">Item 4.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#I4">Submission of Matters to a Vote of Security Holders</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#I4">45</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="2"><A HREF="#OFFICERS">Executive Officers of the Registrant</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#OFFICERS">45</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B><A HREF="#PII">PART II</A></B></TD>
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#II5">Item 5.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#II5">Market for Registrant's Common Equity and Related Stockholder Matters</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#II5">46</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#II6">Item 6.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#II6">Selected Financial Data</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#II6">46</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#II7">Item 7.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#II7">Management's Discussion and Analysis of Financial Condition and Results of</A></TD>
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#II7">Operations</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#II7">46</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#II7A">Item 7A.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#II7A">Quantitative and Qualitative Disclosures about Market Risk</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#II7A">46</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#II8">Item 8.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#II8">Financial Statements and Supplementary Data</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#II8">46</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#II9">Item 9.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#II9">Changes in and Disagreements With Accountants on Accounting and Financial</A></TD>
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#II9">Disclosure</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#II9">47</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B><A HREF="#III">PART III</A></B></TD>
     <TD ALIGN="RIGHT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#III10">Item 10.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#III10">Directors and Executive Officers of the Registrant</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#III10">47</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#III10A">A.</A>&nbsp;&nbsp;&nbsp;<A HREF="#III10A">Directors of the Registrant</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#III10A">47</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"><A HREF="#III10B">B.</A>&nbsp;&nbsp;&nbsp;<A HREF="#III10B">Executive Officers of the Registrant</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#III10B">47</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#III11">Item 11.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#III11">Executive Compensation</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#III11">47</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"><A HREF="#III12">Item 12.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#III12">Security Ownership of Certain Beneficial Owners and Management and <BR> Related Stockholder Matters</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#III12">48</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#III13">Item 13.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#III13">Certain Relationships and Related Transactions</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#III13">48</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#III14">Item 14.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#III14">Controls and Procedures</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#III14">49</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B><A HREF="#IV">PART IV</A></B></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><A HREF="#IV15">Item 15.</A></TD>
     <TD ALIGN="LEFT"><A HREF="#IV15">Exhibits, Financial Statement Schedules, and Reports on Form 8-K</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#IV15">49</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="2"><A HREF="#SIG">Signatures</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#SIG">50</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="2"><A HREF="#CERT">Certifications</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#CERT">51</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="2"><A HREF="#FS1">Index to Financial Statement Schedules</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#FS1">FS-1</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="2"><A HREF="#E1">Index to Exhibits</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#E1">E-1</A>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
</TABLE>

<P ALIGN="CENTER">2 </P>


<HR ALIGN="CENTER" WIDTH="100%" SIZE="2" NOSHADE>

<A NAME="PARTI"></A>
<P ALIGN="LEFT"><B>PART I</B></P>

<P ALIGN="LEFT"><B>Item 1. <I>BUSINESS</I></B></P>
<A NAME="IA"></A>
<P ALIGN="LEFT"><B>A. Description of Business</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA
Corporation had consolidated shareholders&#146; equity of $3.9 billion and
assets of $89.0 billion as of December 31, 2002, and revenues of $19.3 billion
for the year then ended. CIGNA Corporation and its subsidiaries constitute one
of the largest investor-owned employee benefits organizations in the United
States. Its subsidiaries are major providers of employee benefits offered
through the workplace, including health care products and services, group life,
accident and disability insurance, retirement products and services and
investment management. CIGNA&#146;s major insurance subsidiary, Connecticut
General Life Insurance Company (&#147;CG Life&#148;), traces its origins to
1865. CIGNA Corporation was incorporated in the State of Delaware in 1981. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this
document, &#147;CIGNA&#148; and the &#147;Company&#148; may refer to CIGNA
Corporation itself, one or more of its subsidiaries, or CIGNA Corporation and
its consolidated subsidiaries. CIGNA Corporation is a holding company and is not
an insurance company. Its subsidiaries conduct various businesses, which are
described in this document. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
revenues are derived principally from premiums and fees, and investment income.
CIGNA conducts its business through subsidiaries in the following operating
divisions, the financial results of which are reported in the following
segments: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Employee
Health Care, Life and Disability Benefits Segment  </P></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">CIGNA
HealthCare  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">CIGNA
Group Insurance </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Employee
Retirement Benefits and Investment Services Segment </P></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">CIGNA
Retirement &amp;&nbsp;Investment Services </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">International
Life, Health and Employee Benefits Segment </P></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">CIGNA
International </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Run-off
Reinsurance Operations Segment </P></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Other
Operations consists of: </P></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">deferred
gains recognized from the 1998 sale of the individual life insurance and annuity business; </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">corporate
life insurance on which policy loans are outstanding; </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">settlement
annuity business; and </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">certain
investment management services initiatives.  </P></TD>
</TR>
</TABLE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
results produced by CIGNA Retirement &amp; Investment Services on behalf of
CIGNA&#146;s insurance operations are reported in each segment&#146;s results. </P>

<A NAME="recenttransactions"></A><P ALIGN="LEFT"><I>Recent Transactions</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2003,
CIGNA sold a subsidiary, Lovelace Health Systems, Inc. (&#147;Lovelace&#148;), an integrated health
care system located in New Mexico that includes a multi-specialty physician
group practice, a hospital, family practice clinics and a health plan for cash
proceeds of approximately $210 million. The sale generated an after-tax gain of
approximately $30 million, which will be recognized in the first quarter of
2003. In the fourth quarter, CIGNA began reporting this business as discontinued
operations and reclassified prior year financial information. Unless otherwise
indicated, all amounts exclude Lovelace for all periods presented. For
additional information about the sale of Lovelace, see
&#147;Acquisitions and Dispositions&#148; in the Management&#146;s Discussion
and Analysis (&#147;MD&amp;A&#148;) section of, and Note 4 to the Financial
Statements included in CIGNA&#146;s</P>


<P ALIGN="CENTER">3 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>



<P ALIGN="LEFT">2002 Annual Report to Shareholders (&#147;Annual Report&#148;).  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2003,
CIGNA sold its Brazilian health care operations. CIGNA expects to record a net gain of
approximately $15 million after-tax in the first quarter of 2003 associated with
the sale of the health care operations, primarily as a result of the disposition
of the net liabilities associated with these operations. The gain will be
reported as part of income from discontinued operations. For additional
information about the sale of the Brazilian health care operations, see
&#147;Acquisitions and Dispositions&#148; in the MD&amp;A section of, and Note 4
to CIGNA&#146;s 2002 Financial Statements included in its Annual Report. </P>

<P ALIGN="LEFT"><I>Available Information</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
Internet address is <U>http://www.CIGNA.com</U>. CIGNA&#146;s annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any
amendments to those reports are available through CIGNA&#146;s website as soon
as reasonably practicable after the filing or furnishing of such material with
the Securities and Exchange Commission. </P>

<A NAME="IB"></A>
<P ALIGN="LEFT"><B>B. Financial Information about Industry Segments</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
information in the tables that follow is presented in conformity with generally
accepted accounting principles (&#147;GAAP&#148;), unless otherwise indicated.
Certain reclassifications have been made to the 2001 and 2000 financial
information to conform to the 2002 presentation. Industry rankings and
percentages set forth below are for the year ended December 31, 2001, unless
otherwise indicated. Unless otherwise noted, statements set forth in this
document concerning CIGNA&#146;s rank or position in an industry or particular
line of business have been developed internally, based on publicly available
information. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial data
for each of CIGNA&#146;s business segments is set forth in Note 19 and financial
information for foreign operations is set forth in Note 20 to the Financial
Statements included in CIGNA&#146;s Annual Report. </P>






<P ALIGN="CENTER">4 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="IC"></A>
<P ALIGN="LEFT"><B>C. Employee Health Care, Life and Disability Benefits</B></P>

<P ALIGN="CENTER"><B><I>Principal Products and Markets</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
Employee Health Care, Life and Disability Benefits operations offer a wide range
of managed care and indemnity products and services primarily to meet the needs
of employers of all sizes and their employees and dependents. These products and
services are provided by subsidiaries of CIGNA Corporation. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The customers of
these operations range in size from some of the largest United States
corporations to small enterprises, and include employers, multiple employer
groups, unions, professional and other associations, government-sponsored
programs and other groups. Products are marketed in all 50 states, the District
of Columbia and Puerto Rico. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
table sets forth the net premiums and fees, premium equivalents and adjusted
premiums and fees for this segment by principal product categories (described
beginning on <A HREF="#page7">page 7</A>) and by funding arrangements (described beginning on <A HREF="#page12">page
12</A>). Premium equivalents generally equal paid claims under administrative
services only (&#147;ASO&#148;) and minimum premium funding arrangements. CIGNA would have
recorded the amount of these paid claims as additional premiums if the contracts
under which the claims arise had been written under guaranteed cost or
retrospectively experience-rated funding arrangements. Premium equivalents are
an indicator of business volume associated with ASO and minimum premium
arrangements and, when combined with premiums and fees (&#147;adjusted premiums
and fees&#148;), convey the level of activity supported by the operations of
this segment. </P>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3">&nbsp;</TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>Premiums<BR><U>and Fees</U></B></TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>Premium<BR><U>Equivalents</U></B></TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>Adjusted<BR>Premiums<BR><U>and Fees</U></B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"><B>Year ended December 31, 2002 </B></TD>
     <TD COLSPAN="9" ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;<B>(In millions)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="55%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="10%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="10%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="10%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B>By Product:</B></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Managed Care:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 6,496</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 8,632</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15,128</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dental</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">408</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">408</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Managed Care</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,904</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">8,632</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">15,536</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Indemnity:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,537</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">11,854</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">16,391</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,587</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,587</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term Disability</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">469</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">40</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">509</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dental</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">535</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,140</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,675</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accidental Death and Dismemberment</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">207</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">207</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term Disability</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">75</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">48</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">123</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Indemnity</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7,432</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">14,082</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">21,514</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 14,336</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 22,714</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 37,050</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B>By Funding Arrangement:</B></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guaranteed Cost</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 7,757</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT">   -</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 7,757</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retrospectively Experience-Rated</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,616</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,616</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative Services Only</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,676</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">20,292</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">21,968</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minimum Premium</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">287</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,422</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,709</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 14,336</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 22,714</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 37,050</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>


<P ALIGN="CENTER">5 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>




<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3">&nbsp;</TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>Premiums<BR><U>and Fees</U></B></TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>Premium<BR><U>Equivalents</U></B></TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>Adjusted<BR>Premiums<BR><U>and Fees</U></B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"><B>Year ended December 31, 2001 </B></TD>
     <TD COLSPAN="9" ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;<B>(In millions)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="55%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="10%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="10%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="10%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B>By Product:</B></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Managed Care:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 5,845</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 7,239</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 13,084</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dental</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">412</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">412</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Managed Care</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,257</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7,239</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,496</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Indemnity:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,047</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10,871</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">14,918</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,698</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,698</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term Disability</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">591</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">70</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">661</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dental</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">516</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,977</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,493</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accidental Death and Dismemberment</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">217</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">217</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term Disability</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">114</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">73</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">187</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">19</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">19</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Indemnity</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7,202</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12,991</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">20,193</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 13,459</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 20,230</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 33,689</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">By Funding Arrangement:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guaranteed Cost</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 7,269</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT">      -</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 7,269</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retrospectively Experience-Rated</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,269</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,269</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative Services Only</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,665</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">17,825</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">19,490</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minimum Premium</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">256</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,405</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,661</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 13,459</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 20,230</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 33,689</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B>Year ended December 31, 2000</B></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B>By Product:</B></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Managed Care:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 5,788</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 6,769</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 12,557</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dental</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">407</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">407</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Managed Care</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,195</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,769</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12,964</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Indemnity:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medical</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,607</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9,092</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12,699</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,764</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,764</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term Disability</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">556</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">69</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">625</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dental</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">483</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,776</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,259</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accidental Death and Dismemberment</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">230</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">230</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term Disability</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">102</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">76</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">178</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Indemnity</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,764</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">11,013</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">17,777</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 12,959</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 17,782</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 30,741</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B>By Funding Arrangement:</B></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guaranteed Cost</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 7,061</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT">      -</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 7,061</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retrospectively Experience-Rated</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,107</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,107</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Administrative Services Only</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,546</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">15,624</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">17,170</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minimum Premium</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">245</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,158</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,403</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 12,959</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 17,782</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 30,741</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>



<P ALIGN="CENTER">6 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<A NAME="page7"></A>
<P ALIGN="LEFT"><B>Products and Services</B></P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Health care products and
services and life, accident and disability insurance are this segment&#146;s principal
product lines. CIGNA provides a wide array of products and services to satisfy the
benefit needs of employers and their employees and dependents, as described below:  </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">managed
care products and services, such as: </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;  </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">medical
health maintenance organizations ("HMOs"), </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">point-of-service
("POS") medical plans, </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">managed
dental programs, </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">managed
behavioral health care services and employee assistance programs, </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">medical
cost and utilization management, and </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">managed
pharmacy programs and pharmaceutical fulfillment services; </P></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">indemnity
products and services, such as: </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">medical
and dental preferred provider organizations ("PPOs"), </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">traditional
medical and dental indemnity, </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">indemnity
pharmacy programs, and </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">life,
accident and disability insurance. </P></TD>
</TR>
</TABLE>

<P ALIGN="LEFT"><I>Managed Care Products and Services</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed care
products provide for an effective, efficient use of health care services by
coordinating utilization of care and controlling unit costs through provider
contracts. Managed care products and services include those described below. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Medical
Health Maintenance Organizations.</I>&nbsp;HMOs generally offer the most
cost-efficient form of health care coverage. Members typically choose a primary
care physician from CIGNA&#146;s provider network. Primary care physicians are
responsible for the member&#146;s primary medical and preventive care. In some
cases, a member must receive a referral from his or her primary care physician
to receive covered services from a participating specialist or medical facility
in order to have those services covered under the member&#146;s plan. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA also
provides an open access HMO product. This product offers the member an HMO
network of providers without the requirement of a referral from the primary care
physician in order to have services provided by a participating specialist or
medical facility covered under the member&#146;s plan. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA delivers
its medical HMOs principally through individual practice association
(&#147;IPA&#148;) models. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under an IPA
model, the HMO contracts with independent physicians and hospitals to provide
services to members. IPA models typically cover wide geographic areas and have
low fixed costs. They rely on cost-effective contracts with providers and
appropriate medical cost and utilization management to deliver quality medical
care at an appropriate cost. CIGNA has one medical HMO that offers the consumer
both an IPA model and a staff model. In a staff model, physicians and certain
other providers are employees of the medical HMO. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IPA models
typically offer broader provider choice to the consumer, whereas staff models
generally offer more limited provider choice but lower costs. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December
31, 2002, CIGNA&#146;s HMO networks included approximately 255,000 physicians
and 2,600 hospitals. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most contracted
providers are compensated by CIGNA on a discounted fee-for-service or other
service-specific basis for health care services provided to the member. Certain
of CIGNA&#146;s HMO providers receive a monthly predetermined fee (capitation)
from CIGNA to cover the cost of certain services available to each HMO member,
regardless of the medical services actually provided to each member. Capitation
arrangements shift some of the financial risk from CIGNA to the providers. </P>

<P ALIGN="CENTER">7 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>




     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In some cases,
capitated providers subcontract with other providers for certain health care
services. In the event that the capitated provider is paid but fails to pay its
subcontracted providers, the subcontracted providers or regulators may attempt
to look to the CIGNA HMO for payment. The CIGNA HMO may, in some cases,
voluntarily make additional payments directly to the subcontracted providers to
ensure continuity of care to its members through the provider network. A few
states have adopted laws or regulations requiring that HMOs pay subcontracted
providers in this situation. CIGNA HMOs typically require a satisfactory letter
of credit or other financial guarantee from the capitated provider to protect
CIGNA from this possible exposure, although not all capitated arrangements have
this protection. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA contracts
with the federal Centers for Medicare and Medicaid Services (&#147;CMS&#148;) to
provide Medicare HMO coverage for eligible individuals in Arizona. The contract
provides for a fixed per member per month premium from CMS, based upon a formula
that calculates the projected cost of providing services for each Medicare
member. Premium amounts are updated annually. Members generally receive enhanced
benefits over standard Medicare fee-for-service coverage, including prescription
drug and vision coverage, and pay lower, fixed co-payments for services used.
Depending on the plan benefits selected, members may be required to pay an
additional premium to CIGNA for their HMO coverage. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA is also a
participating provider in the fee-for-service Medicare program, furnishing
outpatient care to Medicare beneficiaries, through CIGNA subsidiaries. Until the
sale of Lovelace in January 2003, CIGNA also furnished fee-for-service inpatient
care to Medicare beneficiaries. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reimbursement for
inpatient and outpatient services is made by CMS pursuant to laws and regulations
governing the Medicare program. Currently, CMS reimburses outpatient services in
accordance with payment classification groups based on historical cost information filed
by the participating CIGNA subsidiary. CMS reimburses inpatient stays at a case rate
based on the patient&#146;s diagnosis. A government investigation relating to cost
reports filed by Lovelace was settled in 2002. For additional information,&nbsp;see &#147;Legal
Proceedings&#148;on&nbsp; <A HREF="#I3">page 43</A>&nbsp;and &#147;Regulatory and Industry Developments&#148;in
the MD&amp;A section of, and Note 21 to CIGNA&#146;s 2002 Financial Statements included
in its Annual Report.  </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA also contracts with
one state agency (two prior to the sale of Lovelace) to offer coverage for individuals
eligible for Medicaid and with the Office of Personnel Management (&#147;OPM&#148;) for
the federal employees program. Benefits are generally determined by the contracting
agencies. Medicaid premiums are determined by the contracting agency, while CIGNA agrees
upon rates with OPM for the federal employee plan.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Point-of-Service
Medical Plans.</I>&nbsp;Under POS medical plans, participants generally pay an
HMO-type fixed co-payment to use CIGNA&#146;s managed care network providers.
Alternatively, participants may choose to go to non-network providers. Use of
non-network providers is subject to certain deductibles and cost sharing
provisions, which result in a higher cost to participants than if they used
network providers. Participants in point-of-service plans are considered HMO
members for purposes of the table on <A HREF="#CLIVES">page 10</A>. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Managed
Dental Programs</I>.&nbsp;CIGNA offers managed dental care products through a network
of independent providers in most states. CIGNA contracts with dentists to
provide services to members. Most network dentists receive a monthly
predetermined fee (capitation) for each covered member. Network dentists may
also receive additional fees for certain services. Generally, members are
responsible for a fixed co-payment for certain covered services provided by a
network dentist. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Managed
Behavioral Health</I>.&nbsp;CIGNA also provides managed behavioral health care
services and employee assistance programs. CIGNA provides its behavioral health
care coverage through a national network of independent behavioral health
providers and facilities that are paid on a contracted fee-for-</P>


<P ALIGN="CENTER">8 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT">service basis. Members pay a fixed co-payment for most of these services.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Medical Cost
and Utilization Management.</I>&nbsp; In addition, CIGNA provides disability
management and medical cost containment services to help insurers and employers
optimize the quality relative to the cost of certain of their benefit programs. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Managed
Pharmacy Programs.</I>&nbsp;CIGNA also provides managed pharmacy benefit programs to
HMO and POS members through participating national and independent pharmacies.
Members typically pay a fixed co-payment for these services. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA also
offers mail order, telephone and on-line pharmaceutical fulfillment services
through its CIGNA Tel-Drug operation. Tel-Drug offers to managed care and PPO
participants a cost effective alternative to other participating pharmacies at
the same benefit levels offered by the consumer&#146;s underlying medical
benefits plan. </P>

<P ALIGN="LEFT"><I>Credentialing</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA promotes
the delivery of quality care under its managed care products in part through its
credentialing of medical providers and facilities, using its own quality
criteria which meet external accreditation agency standards. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
practitioner credentialing criteria include verification of a current
unrestricted professional license, a valid and unrestricted license to prescribe
drugs (as appropriate), board certification or other appropriate training and
hospital privileges at a CIGNA participating facility. In addition, CIGNA
queries the National Practitioner Data Bank to obtain information about the
practitioner&#146;s malpractice experience and also obtains Medicare sanction
activity. CIGNA expects practitioners to demonstrate an acceptable history of
malpractice claim experience, adequacy of malpractice insurance coverage and an
acceptable work history. Typically, most practitioners are recredentialed every
two years. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To be
credentialed, CIGNA requires the medical facilities with which it contracts to
have an unrestricted state license, no sanctions by the Department of Health and
Human Services, accreditation by an approved accrediting organization and
adequate malpractice and general liability coverage. Typically, most medical
facilities are recredentialed every three years. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA also seeks
accreditation of its medical HMOs by the National Committee for Quality
Assurance (&#147;NCQA&#148;). The NCQA is a nationally recognized independent,
not-for-profit organization dedicated to assessing, measuring and reporting on
the quality of managed care plans. As of December 31, 2002, 100% of CIGNA&#146;s
U.S. plan locations have gone through the NCQA accreditation review process, and
100% have received Excellent or Commendable accreditation for HMO and POS
products. </P>

<P ALIGN="LEFT"><I>Indemnity Products and Services</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Preferred
Provider Organizations.</I>&nbsp;CIGNA has contractual arrangements with certain
physicians, hospitals and other independent providers that comprise medical and
dental PPO networks. Under a typical PPO plan, a participant may elect (with
certain exceptions) to receive care from any health care provider. Within
applicable state requirements and restrictions, CIGNA reimburses PPO
participants at a higher percentage for the costs of care obtained from
contracted providers, who are generally paid on a discounted basis, than it does
for care obtained from non-contracted providers. As of December 31, 2002, 2001
and 2000, CIGNA had 140, 139 and 137 medical PPO networks. As of the same dates,
CIGNA&#146;s national dental PPO network had approximately 57,000, 54,000 and
50,000 participating dentists. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some of
CIGNA&#146;s medical PPO networks, called &#147;Gatekeeper PPOs&#148;, use
contracted primary care physicians to make referrals to specialists and other
health care providers. Under a Gatekeeper PPO, the higher reimbursement level is
usually available only if participants obtain a referral from their primary care
physicians before using other </P>


<P ALIGN="CENTER">9 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">contracted providers. As of December 31, 2002 and
2001, CIGNA had 48 Gatekeeper PPO networks in addition to its medical PPO networks that do not require
referrals from the primary care physician. As of December 31, 2000, CIGNA had 38.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Participants in
Gatekeeper PPOs are considered HMO members for the purposes of the covered lives
table below. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Traditional
Medical and Dental Indemnity. </I>Traditional medical and dental indemnity
products generally do not restrict selection of providers or vary their
insureds&#146; cost sharing obligations depending on the providers chosen. The
costs of traditional indemnity products to customers are higher than managed
care products, due to the limited number of negotiated fee arrangements with
physicians and hospitals to control unit costs and limited influence over the
utilization of services. Under indemnity arrangements, insureds usually pay
deductibles and coinsurance, subject to annual out-of-pocket maximums. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indemnity
Pharmacy Programs. </I>CIGNA also provides pharmacy programs to its PPO and
traditional medical indemnity participants. Participants may choose to pay the
retail price of prescriptions, or obtain prescriptions at a lower price from the
program&#146;s participating pharmacies. As stated above, PPO participants also
have access to mail order, telephone and on-line pharmaceutical fulfillment
services through Tel-Drug, which is a cost effective alternative to other
participating pharmacies. </P>

<P ALIGN="LEFT"><B>Covered Lives</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
medical and dental managed care and indemnity products and services and managed
behavioral health care services applied to the following approximate number of
lives for the periods presented: </P>

<A NAME="CLIVES"></A>
<P ALIGN="LEFT"><B><U>Approximate Number of Covered Lives</U></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>As of December 31,</B></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="8" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>(In thousands)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="62%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Medical Covered Lives</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Managed Care:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Guaranteed Cost:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,752</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,016</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,921</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Medicare and Medicaid</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">113</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">84</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">138</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Experience-rated, ASO and Minimum Premium</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(including POS and Gatekeeper PPOs)</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,885</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,709</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5,013</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Managed Care</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,750</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,809</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7,072</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Indemnity (estimated):</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Medical</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">995</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,089</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,473</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Medical PPO (excluding Gatekeeper PPOs)</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5,346</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5,352</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,669</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Indemnity</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,341</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,441</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,142</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Medical Covered Lives</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,091</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,250</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,214</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Behavioral Care</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">14,113</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,346</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12,172</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Dental Covered Lives:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Managed Care</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,559</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,756</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,833</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Indemnity and Dental PPO (estimated)</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10,458</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10,600</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10,246</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Dental Covered Lives</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,017</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,356</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,079</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Pharmacy</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9,773</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9,356</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"><A HREF="#P10FN">*</A></TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

</TABLE>
<A NAME="P10FN"></A>
<P ALIGN="LEFT">* Not available for 2000. </P>

<P ALIGN="CENTER">10 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>



     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2002,
CIGNA revised the factor used to estimate the number of covered lives per
subscriber in estimating indemnity and managed behavioral health care membership
levels. The revised estimate reflects updated information resulting from recent
technology enhancements. Prior period information has been revised using this
updated information. For more information, see &#147;Medical Membership&#148; in
the MD&amp;A section of CIGNA&#146;s Annual Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Life,
Accident and Disability Insurance Products and Services</I>.&nbsp;CIGNA also offers
group life insurance, accidental death and dismemberment insurance, and
long-term and short-term disability insurance products and services. Group
insurance products are marketed to employers, employees, professional and other
associations and other groups. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Group life
insurance products include group term life, group universal life and group
variable universal life insurance. Group term life insurance may be
employer-paid basic life insurance or employee-paid supplemental life insurance,
and also may be offered through groups other than employers and unions. Group
universal life insurance is a voluntary life insurance product in which the
owner may accumulate cash value. The cash value earns interest at rates declared
from time to time, subject to a minimum guaranteed rate, and may be borrowed,
withdrawn, or used to fund future life insurance coverage. With group variable
universal life insurance, the cash value varies directly with the performance of
the underlying investments and neither the return nor the principal is
guaranteed. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approximately
5,400 group life insurance policies covering approximately 18.3 million lives
were outstanding as of December 31, 2002. The following table shows group life
insurance in force and cancellation data. </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>Year Ended<BR>December 31,</B></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="8" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>(In billions)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="6%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">In force, end of year</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 375</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 456</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 444</TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Cancellations (lapses</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;and expirations)</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 62</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 30</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 50</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA markets
group long-term and short-term disability insurance products in all states and
statutorily required disability insurance plans in certain states. CIGNA&#146;s
integrated disability insurance products coordinate short-term disability,
long-term disability and workers&#146; compensation with health care coverages
to provide increased efficiency and effectiveness in disability claims
management. These products generally provide a fixed level of income to replace
a portion of wages lost because of disability. They also provide assistance in
return to work and assistance to the employer in managing the cost of employee
disability. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA offers
personal accident coverage, which consists primarily of accidental death and
dismemberment and travel accident insurance, to employers, associations and
other groups. </P>

<P ALIGN="CENTER"><B><I>Distribution</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA employs
group sales representatives to distribute the managed care and indemnity
products and services of this segment through national and other insurance
brokers, insurance consultants and directly to employers. CIGNA also employs
representatives to sell disability management, medical and disability cost
containment, and managed behavioral health care services and employee assistance
programs directly to insurance companies, HMOs, third party administrators and
employer groups. As of December 31, 2002, the field sales force for the products
and services of this segment consisted of approximately 730 sales
representatives in 95 field locations. </P>

<P ALIGN="CENTER">11 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="page12"></A>
<P ALIGN="CENTER"><B><I>Funding Arrangements</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
segment&#146;s managed care and indemnity products and services are offered
through guaranteed cost, retrospectively experience-rated, administrative
services only (&#147;ASO&#148;) and minimum premium funding arrangements. Customers may
combine funding arrangements to benefit from the features of more than one. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under guaranteed
cost arrangements, CIGNA charges a fixed premium and bears the risk for costs
incurred in excess of the premium. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
retrospectively experience-rated arrangements, a premium that typically includes
a margin to partially protect against adverse claim fluctuations is determined
at the beginning of the policy period and may be adjusted at the end of the
policy period based on the actual incurred costs over the policy period. CIGNA
generally bears the risk for costs incurred in excess of premiums, but has the
potential to recover this excess from policyholders that renew their
experience-rated contracts with CIGNA. For additional discussion, see
<A HREF="#PRICING">&#147;Pricing, Reserves and Reinsurance&#148; below.</A> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under ASO plans,
the customer or plan sponsor, rather than CIGNA, assumes the risk for claim
costs incurred. CIGNA provides claims processing, health quality and medical
cost containment services (through its provider networks) or utilization
management programs, or a combination of these services, in exchange for an
administrative service fee. The plan sponsor is responsible for self-funding all
claims, but may purchase stop-loss insurance from CIGNA or other insurers for
claims in excess of some predetermined amount in total or for specific types of
claims or both. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minimum premium
programs combine insurance protection with an element of self-funding. The
policyholder assumes the risk for claim costs up to a predetermined aggregate,
maximum amount and CIGNA bears the risk for claim costs incurred in excess of
that amount, but has the potential to recover this excess from policyholders
that renew their minimum premium contracts with CIGNA. Accordingly, minimum
premium funding arrangements have a risk profile similar to retrospectively
experience-rated funding arrangements. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASO and minimum
premium funding programs and their effect on CIGNA&#146;s results are more fully
described in the MD&amp;A section of CIGNA&#146;s Annual Report under the
heading &#147;Premium Equivalents&#148;. </P>

<A NAME="PRICING"></A>
<P ALIGN="CENTER"><B><I>Pricing, Reserves and Reinsurance</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums and
fees charged for most insured managed care and indemnity products are generally
set in advance of the policy period and are guaranteed for a one-year duration.
Premiums and fees charged for disability and life insurance products are often
guaranteed for two years, and occasionally for three years, but contracts may be
subject to termination. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premium rates
are established either on a guaranteed cost basis or on a retrospectively
experience-rated basis. Charges to customers established on a guaranteed cost
basis at the beginning of the policy period cannot be adjusted to reflect actual
claim experience during the policy period. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A guaranteed
cost pricing methodology reflects assumptions about future claims, expenses,
credit risk, enrollment mix, investment returns, competitive considerations and
profit margins. Claim and expense assumptions may be based in whole or in part
on prior experience of the account or on a pool of accounts, depending on the
group size and the statistical credibility of the experience. Generally,
guaranteed cost groups are smaller and less statistically credible than
retrospectively experience-rated groups. In addition, pricing for health care
products that use networks of contracted providers also reflects assumptions
about the impact of provider contracts on future claims. Premium rates may vary
among accounts to reflect the anticipated contract mix, family size, industry,
renewal date, and other cost-predictive factors. In some states, premium rates
must be approved by the state insurance </P>


<P ALIGN="CENTER">12 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT">departments, and state laws may restrict or limit the use of rating
methods.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums
established for retrospectively experience-rated business may be adjusted for
the actual claim and administrative cost experience of the account through an
experience settlement process subsequent to the policy period. To the extent
that the cost experience is favorable in relation to the prospectively
determined premium rates, a portion of the initial premiums may be credited to
the policyholder as an experience refund. If claim experience is adverse in
relation to the initial premiums, the resulting experience deficit may be
recoverable, according to contractual provisions, through future premiums and
experience settlements, provided the contract remains in force.</P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA contracts
on an ASO basis with customers who fund their own claims. CIGNA charges these
customers administrative fees based on the expected cost of administering their
self-funded programs. These fees reflect anticipated or actual experience with
respect to claim volumes, expenses, competitive considerations, and profit
margins. In some cases, CIGNA provides financial guarantees related to
administrative performance standards. If these standards are not met, CIGNA may
be financially at risk up to a percentage of the contracted fee or a stated
dollar amount. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to
paying current benefits and expenses, CIGNA establishes reserves in amounts
estimated to be sufficient to settle reported claims not yet paid, as well as
claims incurred but not yet reported. Also, reserves are established for
estimated experience refunds based on the results of retrospectively
experience-rated policies. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December
31, 2002, approximately $3.0 billion, or 43%, of the reserves of this segment
comprise liabilities that could be paid within one year, primarily for medical
and dental managed care and indemnity claims, as well as group life and accident
insurance claims. The remainder primarily includes liabilities for group
long-term disability insurance benefits, group life insurance benefits for
disabled and retired individuals, and benefits paid in the form of both life and
non-life contingent annuities to survivors. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA credits
interest on fund balances to retrospectively experience-rated policyholders
through rates that are either set at CIGNA&#146;s discretion or based on actual
investment performance. Generally, for interest-crediting rates set at
CIGNA&#146;s discretion, higher rates are credited to funds with longer terms
reflecting the fact that higher yields are generally available on investments
with longer maturities. For 2002, the rates of interest credited ranged from
1.18% to 6.45%, with a weighted average rate of 3.97%. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
profitability of indemnity products depends on the adequacy of premiums charged
relative to claims and expenses. For medical and dental indemnity and managed
care products, profitability reflects the accuracy of cost projections for
health care (unit costs and utilization), the adequacy of fees charged for
administration and risk assumption and effective medical cost and utilization
management. For disability insurance products, profitability reflects effective
rehabilitation management as well as adequate return on invested assets. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA reduces
its exposure to large individual and catastrophe losses under group life,
disability and accidental death contracts by purchasing reinsurance from
unaffiliated reinsurers. </P>

<P ALIGN="CENTER"><B><I>Competition</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Managed care and
indemnity businesses are highly competitive. Recent industry consolidation
(especially among Blue Cross and Blue Shield companies) and the development of
PPO products that are competitive with CIGNA&#146;s have exacerbated this already
competitive business environment. No one competitor or small number of
competitors dominates the health care market, although in certain geographic
locations some health care companies may have significant market share
positions. A large number of health care companies and other entities compete in offering
similar</P>


<P ALIGN="CENTER">13 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT"> products. Competition in the health care market exists both for
employer-policyholders and for the employees in those instances where the employer offers
its employees the choice of products of more than one health care company. Most group
policies are subject to annual review by the policyholder, which may seek competitive
quotations prior to renewal.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal
competitive factors that affect this segment are quality of service; scope,
cost-effectiveness and quality of provider networks for health care products;
product responsiveness to the needs of customers and their employees;
cost-containment services; technology; price; and effectiveness of marketing and
sales. For certain products with longer-term liabilities, such as group
long-term disability insurance, financial strength of the insurer, as indicated
by ratings issued by nationally recognized rating agencies, is also a
competitive factor. For more information concerning insurance ratings, see
&#147;Ratings&#148; beginning on <A HREF="#IJ">page 41</A>. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA believes
that its national scope, product breadth, funding options and ability to offer
non-medical products (e.g., dental, managed behavioral health care, medical cost
and utilization management and pharmacy programs) with its group health
offerings are strategic competitive advantages. These advantages allow CIGNA to
respond to the diverse needs of its customer base in each market in which it
operates. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal
competitors of CIGNA&#146;s managed care and indemnity businesses are: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">other
large life and health insurance companies that provide group life and health insurance
products;  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Blue
Cross and Blue Shield organizations;  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">stand-alone
HMOs and PPOs; </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">HMOs
affiliated with major insurance companies and hospitals; and  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">national
managed pharmacy, behavioral health and cost containment services companies.  </P></TD>
</TR>
</TABLE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition also
arises from smaller regional or specialty companies with strength in a
particular geographic area or product line, administrative service firms and,
indirectly, self-insurers. In addition to these traditional competitors, a new
group of competitors is emerging. These new competitors are focused on
delivering employee benefits and services through Internet-enabled technology
that allow consumers to take a more active role in the management of their
health. This is accomplished primarily through financial incentives and access
to enhanced medical quality data. Management believes that it has the
capabilities to allow it to compete against both the traditional and new
competitors. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA is one of
the largest investor-owned managed care companies, based on the number of
members, and one of the largest investor-owned providers of group life and
health indemnity insurance, based on premiums and premium equivalents. It is
also one of the largest providers of group accident insurance and group
long-term disability coverages, based on premiums. </P>

<P ALIGN="CENTER"><B><I>Technology </I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
health care, life and disability benefits businesses are highly dependent on
automated systems and systems applications. These businesses are working to
improve their system infrastructure, standardize business processes and design
more flexible, easier-to-use products. CIGNA&#146;s health care business is
currently engaged in a multi-year project to convert to newly designed systems
and processes to support business growth and service to customers as well as to
accommodate new products and ongoing regulatory changes. In 2002, CIGNA began
transitioning certain customers to these new systems and experienced a decline
in customer service, retention and new sales as a result of transition
difficulties. CIGNA is devoting resources to improving customer service and the
underlying system issues, but expects continued depressed new sales and customer
retention levels for 2003. </P>


<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, CIGNA
implemented the myCIGNA.com consumer Internet portal, which provides
personalized web pages to CIGNA customers for health and financial benefits
information. The portal is personalized to each member&#146;s specific</P>

<P ALIGN="CENTER">14 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">CIGNA medical, dental and pharmacy plan information (as well as financial
information described in Section D, Employee Retirement Benefits and Investment Services
on <A HREF="#ID">page 16</A>). CIGNA also introduced a package of web-based self-service
tools for physicians and other providers.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Among other
things, the technology efforts of this business are intended to enhance customer
service, improve operating efficiency and facilitate regulatory compliance. </P>

<P ALIGN="CENTER"><B><I>Health Care Regulation</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal and
state legislatures, administrative agencies and courts continue efforts to
increase regulation of the health care industry and change its operational
practices. Regulatory and operational changes could have an adverse effect on
CIGNA&#146;s health care operations if they reduce marketplace competition and
innovation or result in increased medical or administrative costs without
improving the quality of care. Debate at the federal level over &#147;managed
care reform&#148; and &#147;patients&#146; bill of rights&#148; legislation, focusing
on questions regarding liability, is expected to continue. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Health
Insurance Portability and Accountability Act of 1996 (&#147;HIPAA&#148;) and
other federal and state statutes subject health care insurers and HMOs to
regulation. See Section I, &#147;Regulation&#148; on <A HREF="#II">page 37</A> for a description of the impact of
HIPAA and other statutes on CIGNA. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other possible
regulatory changes that could have an adverse effect on CIGNA&#146;s health care
operations include: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">additional
mandated benefits or services that increase costs without improving the quality of care;  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">narrowing
of the Employer Retirement Income Security Act of 1974 (&#147;ERISA&#148;) preemption of
state laws;  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">changes
in ERISA regulations resulting in increased administrative burdens and costs;  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">additional
restrictions on the use of prescription drug formularies; </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">additional
privacy legislation and regulations that interfere with the proper use of medical
information for research, coordination of medical care and disease management; </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">additional
rules establishing the time periods for payment of health care provider claims that vary
from state to state; and </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">legislation
that would exempt independent physicians from antitrust laws. </P></TD>
</TR>
</TABLE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The health care
industry is under increasing scrutiny by various state and federal government
agencies and could be subject to government efforts to bring criminal actions in
circumstances that could previously have given rise only to civil or
administrative proceedings. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Regulation&#148; and &#147;Legal Proceedings&#148; on <A HREF="#II">pages 37</A> and <A HREF="#I3">43</A> for additional
information. </P>

<P ALIGN="CENTER">15 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="ID"></A>
<P ALIGN="LEFT"><B>D. Employee Retirement Benefits and Investment Services</B></P>

<P ALIGN="CENTER"><B><I>General</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
Employee Retirement Benefits and Investment Services businesses provide
investment products and professional services to sponsors of qualified and
non-qualified pension, profit sharing and retirement savings plans. This
segment&#146;s businesses also offer corporate life insurance, principally to
Fortune 1000 companies, and operate a retail broker-dealer operation and a
federal savings bank. Except for certain investment management services provided
by unaffiliated entities, as described below, the products and services related
to this segment are provided by CIGNA subsidiaries. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits and assets under
management for this segment (&#147;Retirement Assets under Management&#148;) for the year
ended December 31 were as follows:  </P>





<P ALIGN="CENTER">16 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B> </B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>(In millions)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="62%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Deposits:</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined Contribution</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 5,581</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 6,125</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 7,480</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined Benefit</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,993</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,708</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,654</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, including GICs<SUP><A HREF="#T171">(1)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">61</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">688</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">102</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate Life Insurance<SUP><A HREF="#T172">(2)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">865</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">570</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">602</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Advisory Accounts<SUP><A HREF="#T173">(3)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">272</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">58</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">104</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Deposits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 8,772</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 10,149</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 9,942</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Retirement Assets Under Management:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;By Account:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Account<SUP><A HREF="#T174">(4)</A></SUP>:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fully Guaranteed</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,422</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,443</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,145</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience-rated</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">18,445</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">16,542</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">15,510</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22,867</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">20,985</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">19,655</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate Accounts</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">25,453</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">29,391</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">30,889</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate Life Insurance<SUP><A HREF="#T172">(2)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,281</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,943</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,725</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Advisory Accounts<SUP><A HREF="#T173">(3)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,156</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">987</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">885</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 53,757</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 55,306</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 55,154</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;By Plan Type:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined Contribution</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 28,062</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 29,853</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 30,620</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined Benefit</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">18,547</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">18,690</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">18,370</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, including GICs<SUP><A HREF="#T171">(1)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,711</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,833</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,554</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate Life Insurance<SUP><A HREF="#T172">(2)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,281</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,943</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,725</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment Advisory Accounts<SUP><A HREF="#T173">(3)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,156</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">987</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">885</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 53,757</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 55,306</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 55,154</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>



<P ALIGN="LEFT">_________________ <br>

Assets under management include assets managed by third-party managers. <br>
<A NAME="T171"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">This
category also supports defined benefit and defined contribution plans.  </P></TD>
</TR>
</TABLE>

<A NAME="T172"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(2)</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Corporate
Life Insurance consists of general and separate account assets. Corporate Life Insurance
excludes corporate life insurance business on which policy loans are outstanding. For a
discussion of corporate life insurance business on which policy loans are outstanding,
see Section G &#147;Other Operations&#148; on <A HREF="#IG">page 29</A>.  </P></TD>
</TR>
</TABLE>

<A NAME="T173"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(3)</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Investment
advisory accounts include assets for individual retirement account investments and retail
brokerage services provided through the broker dealer operation, as well as advisory
accounts sold by Retirement personnel.  </P></TD>
</TR>
</TABLE>

<A NAME="T174"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(4)</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">General
Account assets under management (Defined Contribution, Defined Benefit and Other,
including guaranteed investment contracts (&#147;GICs&#148;)) reflect adjustments to fair
value on fixed income and certain other investments of $872 million as of December 31,
2002, $256 million as of December 31, 2001 and $74 million as of December 31, 2000.  </P></TD>
</TR>
</TABLE>




<A NAME="PRINCIPALPRODUCTS"></A>
<P ALIGN="CENTER"><B><I>Principal Products and Markets</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA offers a
broad range of products to both defined benefit and defined contribution pension
plans, profit-sharing plans and retirement savings plans. The largest category
of Retirement Assets under Management relates to defined contribution plans,
which provide participant accounts with benefits based upon the value of
contributions to, and investment returns on, the individual&#146;s account. This
has been the fastest growing portion of the pension marketplace for a number of
years. Defined contribution plan assets amounted to 52% of Retirement Assets
under Management as of December 31, 2002, compared with 54% as of December 31,
2001. The second largest category of Retirement Assets under Management<B>
</B>relates to defined benefit plans, under which annual retirement benefits are
fixed or defined by a benefit formula. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA sells
investment products and investment management services, either separately or as
full-service packages with </P>




<P ALIGN="CENTER">17 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT">administrative and other professional services, to corporate pension plan
sponsors and Taft-Hartley trustees. CIGNA markets full-service products that include
investment management and pension services to small, middle and large market customers.
In addition, CIGNA sells products to sponsors of larger plans that look to more than one
entity to provide actuarial, administrative or investment services and products, or
combinations thereof.  </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA markets a Total
Retirement Services&reg;&nbsp;offering, which integrates tax qualified and non-qualified
defined contribution and defined benefit products and services. Non-qualified plans are
primarily used to provide supplemental retirement benefits to highly compensated
employees in addition to the benefits offered under the qualified plan. Total Retirement
Services&reg;&nbsp;plans accounted for approximately 24% of Retirement Assets under Management
as of December 31, 2002 compared with 25% as of December 31, 2001. The assets of CIGNA&#146;s
pension plans and CIGNA-sponsored 401(k) plans for CIGNA employees are included in Total
Retirement Services&reg;&nbsp;plans. If the impact of the those plans are excluded, Total
Retirement Services&reg;&nbsp;plans accounted for approximately 18% of Retirement Assets under
Management as of December 31, 2002 compared with 19% as of December 31, 2001.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For defined
contribution plans, principally 401(k) plans, CIGNA markets products that offer
investment services, participant recordkeeping and plan administrator support
services. CIGNA&#146;s defined contribution plans also offer employee
communications, enrollment, plan design, technological support and other
consulting services. For defined benefit plans, CIGNA offers investment services
and administrative and professional services, including recordkeeping, plan
administrator support services, plan documentation, and actuarial valuation and
advice. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA also
provides retail brokerage and banking products and services. A primary focus of
the retail operation is offering individual retirement account rollover products
and related banking and brokerage services to terminating plan participants. A
federal savings bank subsidiary offers retail banking products, including
certificates of deposit and individual retirement accounts. In addition,
CIGNA&#146;s broker-dealer operation manages a self-directed brokerage account
feature in CIGNA-administered 401(k) plans as well as other retail brokerage
accounts. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA also
offers single premium annuities, on both guaranteed and experience-rated bases,
and guaranteed investment contracts (&#147;GICs&#148;), which provide guarantees
of principal and interest with a fixed maturity date. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA manages
Retirement Assets under Management either directly or through contractual
arrangements under which CIGNA selects and oversees sub-advisors who invest
assets based on guidelines determined by CIGNA (&#147;Sub-advisory
Arrangements&#148;). In addition, a portion of the Retirement Assets under
Management are invested in retail funds managed by third-party mutual fund
managers, including Fidelity Investments, Janus, Invesco and State Street, under
guidelines determined by the mutual fund managers (&#147;Independent
Funds&#148;). CIGNA monitors the Independent Funds on behalf of its customers.
The table below shows the percentage of Retirement Assets under Management
managed through each of these methods as of December 31: </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TH COLSPAN="2"></TH>
     <TH COLSPAN="2"></TH>
     <TH COLSPAN="2"></TH></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="52%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="12%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><B><U>2002</U></B></TD>
        <TD WIDTH="16%" ALIGN="LEFT"><B>&nbsp;</B></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><B><U>2001</U></B></TD>
        <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">70%</TD>
        <TD ALIGN="CENTER"></TD>
     <TD ALIGN="RIGHT">66%</TD>
        <TD ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sub-advisory</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">11%</TD>
        <TD ALIGN="LEFT"></TD>
     <TD ALIGN="RIGHT">12%</TD>
        <TD ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">19%</TD>
        <TD ALIGN="LEFT"></TD>
     <TD ALIGN="RIGHT">22%</TD>
        <TD ALIGN="LEFT"></TD></TR>
</TABLE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For additional
information about CIGNA&#146;s investment operations, see Section H
&#147;Investments and Investment Income&#148; on <A HREF="#IH">page 30</A>. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both defined
benefit and defined contribution pension products are supported by the general
asset account (&#147;General Account&#148;) and segregated accounts
(&#147;Separate Accounts&#148;). </P>

<P ALIGN="CENTER">18 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT"><I>The General Account</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The General
Account primarily invests in fixed income assets, and supports both fully
guaranteed and experience-rated contracts. As of December 31, 2002, the General
Account-supported contracts accounted for 39% of the underlying investments in
defined benefit plans and 50% in defined contribution plans, compared with 36%
in defined benefit plans and 41% in defined contribution plans as of December
31, 2001. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fully guaranteed
contracts consist of single premium annuities and GICs. Single premium annuities
accounted for $2.7 billion of this segment&#146;s General Account assets under
management as of December 31, 2002 compared with $2.6 billion as of December 31,
2001. GICs and other guaranteed products accounted for $1.7 billion as of
December 31, 2002 and $1.8 billion as of December 31, 2001. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For 2002, the
interest rate on reserves for single premium annuities and the interest rate
credited on GICs ranged from<B> </B>.8% to 12.76%,<B> </B>with a weighted
average of 6.71%, compared with a range from 1.16% to 12.76% with a weighted
average of 6.93% in 2001. CIGNA&#146;s single premium annuities and GICs
generally do not permit withdrawal by the plan sponsor prior to maturity, except
that GICs permit withdrawal at market value in the event of plan termination.
None of the GICs include renewal clauses. Payouts associated with GICs have not
been material to CIGNA&#146;s liquidity or capital resources. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience-rated
contracts that are supported by the General Account have no fixed maturity dates
and provide for transfer of net investment experience (including impairments and
non-accruals) to contractholders through credited interest and termination
provisions, subject to a guarantee of a minimum level of benefits. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credited
interest rates for pooled, experience-rated defined contribution contracts are
declared in advance for six months and may be changed at the expiration of the
six-month period. Pooled contracts are contracts that are combined for purposes
of crediting interest rates and tracking investment performance. Credited
interest rates on other experience-rated contracts supported by the General
Account are generally declared annually in advance and may be changed
prospectively by CIGNA from time to time. Credited interest rates reflect
investment income and realized gains and losses (including the effect of
non-accruals and impairments). Credited interest rates for 2002 ranged from
4.65% to 8.00% compared to a range of 5.55% to 9.00% for 2001. The weighted
average rate was 5.75% for 2002 compared with 6.88% for 2001. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The termination
provisions of $3.3 billion, or 100%, of CIGNA&#146;s liability for
experience-rated defined benefit contracts supported by the General Account that
are subject to withdrawal, and the termination provisions of $5.0 billion, or
37%, of CIGNA&#146;s liability for experience-rated defined contribution
contracts supported by the General Account, provide the contractholder with
essentially two options for withdrawal of assets upon election to terminate: (a)
a lump sum at market value; or (b) annual installments. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the market
value option, CIGNA determines the market value of the underlying investments by
use of public information or by discounting expected future investment cash
flows from investment income (including the effect of non-accruals) and
repayment of principal, including the effect of impaired assets. The discount
rate is based on current market interest rates. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the
installment option, 100% of the contractholder book value is paid, usually over
not more than 10 years. Interest is credited over the installment period under a
formula designed to pass investment income and gains and losses (reflecting
non-accruals and impairments) through to contractholders. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The termination
provisions of the remaining $8.5 billion, or 63%, of CIGNA&#146;s liability for
experience-rated defined contribution contracts (all of which are pooled)
supported by the General Account contain a book value mechanism for withdrawal
at contractholder termination.</P>


<P ALIGN="CENTER">19 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">Under certain circumstances, payout of book value is subject to deferral
over a period of five to ten years, depending on the policy form.  </P>

<P ALIGN="LEFT"><I>Separate Accounts</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate Account
assets are contractholder funds maintained in accounts with specific investment
objectives. The assets of these accounts are legally segregated and are not
subject to claims that arise out of any of CIGNA&#146;s other businesses. The
investment income, gains and losses of these accounts generally accrue to the
contractholders and are not included in CIGNA&#146;s revenues and expenses.
CIGNA realizes fee income for the investment management and other services it
provides for Separate Account contractholders. The Separate Accounts allow
contractholders the flexibility to invest in specific portfolios and participate
directly in the investment results. Investment options include publicly traded
bonds, private placement bonds, equities, real estate, short-term securities,
mutual funds and funds managed by third-party managers. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December
31, 2002, Separate Account investments accounted for 61% of the underlying
investments in defined benefit plans and 50% in defined contribution plans,
compared with 64% for defined benefit plans and 59% for defined contribution
plans as of December 31, 2001. As of December 31, 2002 approximately $20.6
billion, or 81%, of the assets in the Separate Accounts supported contracts
under which the risks and benefits of investment performance generally accrue to
the contractholders, compared with approximately $25.2 billion, or 86%, of
Separate Account assets as of December 31, 2001. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The remaining
assets in the Separate Accounts are held under experience-rated contracts that
guarantee a minimum level of benefits. As of December 31, 2002 the amount of
minimum benefit guarantees under these contracts was $4.9 billion compared with
$4.1 billion as of December 31, 2001. CIGNA establishes a liability if
management believes that CIGNA will be required to make a payment under a
Separate Account guarantee. For additional information, see &#147;Liquidity and
Capital Resources&#148; in the MD&amp;A section of, and Note 21 to CIGNA&#146;s
2002 Financial Statements included in its Annual Report. </P>

<P ALIGN="LEFT"><I>Persistency</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA monitors
contract termination experience on an ongoing basis. Of those defined
contribution and defined benefits assets under management subject to withdrawal,
persistency was 92.3% for 2002, 92.7% for 2001 and 91.3% for 2000. </P>

<P ALIGN="LEFT"><I>Corporate Life Insurance</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate life
insurance products are permanent life insurance contracts that are sold to
corporations to provide coverage on the lives of certain of their employees.
Permanent life insurance, which is non-participating, provides coverage that
when adequately funded does not expire after a term of years and builds a cash
value that may equal the full policy amount if the insured is alive on the
policy maturity date. Non-participating insurance does not pay dividends, but
deviations from assumed experience may be reflected in future policy values. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate life
insurance products include universal life and variable universal life. Universal
life policies typically provide flexible coverage and flexible premium payments.
Universal life cash values fluctuate with the amount of the premiums paid,
mortality and expense charges made, and interest credited to the policy.
Variable universal life policies are universal life contracts where the cash
values vary directly with the performance of the investments underlying the
policy. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest is
credited on most nonvariable universal life products at a declared rate equal to
or above a minimum guaranteed rate. Credited interest rates vary with the
characteristics of each product and the anticipated investment results of the
assets backing these products. Where the credited interest rate exceeds the
guaranteed rate, the excess is used to purchase additional</P>

<P ALIGN="CENTER">20 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">insurance or increase cash values. Credited interest rates on these
products for 2002 ranged from 1.11% to 7.14%, with a weighted average rate of 5.13%,
compared with a range from 3.00% to 7.31%, with a weighted average rate of 5.58% for
2001.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In lieu of
credited interest rates, certain nonvariable universal life contracts are
credited income based on changes in an equity index, such as the S&amp;P 500&reg;. If
such an equity index is used, CIGNA may purchase derivative options to minimize
the effect of the income credited for such contracts. For additional information
about such derivative options, see Note 7(G) to CIGNA&#146;s 2002 Financial
Statements included in its Annual Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1996,
Congress passed tax legislation that has affected premium and earnings growth of
certain corporate life insurance business on which policy loans are outstanding.
The corporate life insurance affected by the 1996 legislation is reported in
Section G &#147;Other Operations&#148; on <A HREF="#IG">page 29</A>. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Internal
Revenue Service recently proposed regulations that will treat premiums for
corporate life insurance policies issued with certain &#147;split-dollar&#148;
arrangements as loans to the covered employees. Under split-dollar arrangements,
corporate purchasers are reimbursed for premium payments from policy proceeds.
In addition, Congress recently passed the Sarbanes-Oxley Act, which contains a
provision that prohibits public companies from making personal loans to
directors and executives. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since such
split-dollar arrangements may be construed to constitute loans to employees
under the Sarbanes-Oxley Act, these developments may cause policies issued with
these split-dollar arrangements to be less attractive and lead to withdrawals of
assets, policy terminations and fewer sales of new policies. Approximately $366
million in Retirement Assets under Management are attributable to these
split-dollar contracts. </P>

<P ALIGN="CENTER"><B><I>Distribution</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
retirement products and services are distributed primarily through a salaried
direct sales force, pension plan consultants and brokers, investment advisors
and other service providers. As of December 31, 2002, the sales organization
consisted of 22 salaried sales associates and 55 client service representatives
and administrative personnel located in offices across the United States. In
addition, CIGNA&#146;s bank and broker-dealer operations offer benefit plan
participants and other customers a range of IRA rollover investments and retail
banking and brokerage services through 42 registered representatives. Corporate
life insurance products are sold primarily through a limited number of specialty
brokers. </P>

<P ALIGN="CENTER"><B><I>Pricing, Reserves and Reinsurance</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums for
single premium annuities and corporate life insurance are based on assumptions
about mortality, persistency, expenses, target profit margins, interest rates
and competitive considerations. The long-term profitability of single premium
annuities and corporate life insurance products is affected by the degree to
which future experience deviates from these assumptions. Fees for universal life
insurance products consist of mortality, administrative and surrender charges
assessed against the contractholder&#146;s fund balance. Interest credited and
mortality charges for universal life, and mortality charges on variable
universal life, may be adjusted prospectively to reflect expected interest and
mortality experience. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA
establishes reserves for experience-rated contracts in an amount equivalent to
the contractholder funds on deposit with it, adjusted for estimated investment
and mortality experience. Profitability on these contracts is based primarily on
margins from charges for investment and administrative services and risk
assumption. For fully guaranteed contracts, the reserve established is the
present value of expected future obligations based on assumptions about
mortality, investment returns, expenses and target profits, with a margin for
adverse</P>


<P ALIGN="CENTER">21 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">deviation. Profitability on fully guaranteed contracts is affected by the
degree to which future experience deviates from these assumptions.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For corporate
life insurance, CIGNA establishes reserves for deposits received and interest
credited to the contractholder, less mortality and administrative charges
assessed against the contractholder&#146;s fund balance. In addition, CIGNA
establishes loss reserves for losses incurred but not paid, based on prior claim
experience. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA reduces
its exposure to large single life losses and to multiple losses arising out of a
single occurrence under corporate life insurance contracts by purchasing
reinsurance from unaffiliated reinsurers. </P>

<P ALIGN="CENTER"><B><I>Competition</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The retirement
plan marketplace is highly competitive. CIGNA&#146;s competitors include mutual
fund companies, insurance companies, banks, investment advisors, and certain
service and professional organizations. Competition focuses on service,
technology, cost, variety of investment options, investment performance and
financial strength, as indicated for CIGNA&#146;s retirement business by ratings
of CG Life by nationally recognized rating agencies. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The largest
single retirement plan manager holds a 7% market share, as measured by assets
under management. Based on a survey published in &#147;Pensions &amp;
Investments,&#148; CIGNA ranked 35th among retirement plan managers overall, in
terms of pension and employee retirement savings plan assets under management. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA ranked
15th overall in terms of 401(k) plan assets under management according to a
separate survey published in &#147;Pensions &amp; Investments.&#148; As of
December&nbsp;31, 2002, 401(k) plan assets constituted approximately 81% of
CIGNA&#146;s defined contribution assets under management, and 43% of Retirement
Assets under Management. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The corporate
life insurance marketplace is also highly competitive. CIGNA principally
competes with a significant number of the largest domestic life insurance
companies that may offer one or more corporate life insurance products.
Competition in this market focuses primarily on product design, underwriting,
price, administrative servicing capabilities and insurer financial strength, as
indicated by ratings issued by nationally recognized agencies. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more
information concerning insurance ratings, see Section J &#147;Ratings&#148; on <A HREF="#IJ">page 41</A> and the discussion of Ratings in the MD&amp;A section of the Annual
Report. </P>

<P ALIGN="CENTER"><B><I>Technology</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
Employee Retirement Benefits and Investment Services businesses are highly
dependent on automated systems and systems applications. These businesses have
worked to improve their system infrastructure. In addition, CIGNA has developed
integrated offerings across its retirement services products. These offerings
include Internet access to retirement account information, self-service advisory
and financial planning capabilities and integrated financial statements. These
offerings are available on the myCIGNA.com consumer portal, which provides
personalized web pages to customers. CIGNA implemented the portal in 2002. The
portal also offers access to health care information, which is described in
Section C &#147;Employee Health Care, Life and Disability Benefits&#148; on <A HREF="#IC">page 5</A>. </P>


<P ALIGN="CENTER">22 </P>


<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="IE"></A>
<P ALIGN="LEFT"><B>E. International Life, Health and Employee Benefits</B></P>

<P ALIGN="CENTER"><B><I>Principal Products and Markets</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
international life, health and employee benefits operations
(&#147;International&#148;) provide various coverages, products and services in
selected markets outside the United States, including Asia (principally Korea, Hong
Kong and Taiwan), Europe (principally the United Kingdom and Spain), and
Latin America. In addition, CIGNA provides group benefits products in numerous
U.S. and non-U.S. markets for expatriate employees of multinational companies. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The coverages,
products and services of this segment, which are provided by subsidiaries of
CIGNA Corporation, include individual and group life, accident and health,
health care, and pension products. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
table sets forth the principal lines of business of this segment and their
related net earned premiums and fees: </P>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>Year Ended December 31,</B></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="8" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>(In millions)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="6%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Health Care</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 456</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 446</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 401</TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Life, Accident and Health</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">355</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">342</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">290</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">811</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">788</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">691</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Japanese Life Operation:<SUP><A HREF="#T231">(1)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Individual Life</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">813</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Individual Health</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">538</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subtotal</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,351</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Premiums and Fees</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 811</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 788</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,042</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>


<P ALIGN="LEFT">_________________ <br>
<A NAME="T231"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1)</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Beginning
in 2001, CIGNA stopped consolidating the premiums and fees from the Japanese life
insurance operation because CIGNA&#146;s ownership interest dropped to 40% in January
2001. CIGNA sold its remaining interest in the Japanese life insurance operation to Sompo
Japan Insurance, Inc. (formerly Yasuda Fire &amp;&nbsp;Marine Insurance Company, Ltd.) in
November 2001. For additional information, see Note 4(C) to CIGNA&#146;s 2002 Financial
Statements included in its Annual Report.  </P></TD>
</TR>
</TABLE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life, accident
and health products are designed to meet the insurance, savings and investment
needs of consumers outside of U.S. insurance markets. These products are
marketed on both group and individual bases. Traditional life insurance products
include term, whole life, endowment and products with variable investment
returns. Supplemental products include accidental death, medical,
hospitalization, dread disease and cancer coverages. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The health care
products of the International segment are primarily indemnity insurance
coverages, with some products having managed care or administrative service
aspects. These products provide government-mandated medical benefits in some
markets and offer an alternative or supplement to governmental programs in
others. Health care includes life and medical insurance products that are
provided through group benefit programs as well as medical insurance products
that are marketed directly to individuals. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Health care also
includes global group benefits products for employees of multinational companies
(primarily U.S. and U.K. multinational companies) who work outside of their
country of citizenship. This product group includes medical, dental, vision,
life, accidental death and dismemberment and disability coverages, as</P>


<P ALIGN="CENTER">23 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT">well as primary medical and dental benefits for international travelers.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA has
established representative offices in China to facilitate the development of
profitable business opportunities. CIGNA received formal approval to enter the
Chinese life insurance market from the China Insurance Regulatory Commission in
September 2002 and entered a joint venture to begin life insurance operations in
China in 2003. CIGNA has also established joint venture operations in Japan to
participate in its pension market. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following a
strategic review, International concluded that CIGNA&#146;s growth potential in
Brazil&#146;s private health care and pension markets did not meet its long-term
business goals. In January 2003, CIGNA sold its Brazilian health care operation
and entered an agreement to sell its Brazilian pension operation. For more
information, see &#147;Recent Transactions&#148; on <A HREF="#recenttransactions">page 3</A>, &#147;Acquisitions and
Dispositions&#148; in the MD&amp;A section of, and Note 4 to CIGNA&#146;s 2002
Financial Statements included in its Annual Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA intends to
continue pursuing international growth through acquisitions, joint ventures and
other investments. This strategy will result in additional start-up costs which
could result in initial losses. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA generally
conducts its international businesses through foreign operating entities that
maintain assets and liabilities in local currencies, which reduces the exposure
to economic loss resulting from unfavorable exchange rate movements. For
information on the effect of foreign exchange exposure, see &#147;Market Risk of
Financial Instruments&#148; in the MD&amp;A section of, and Notes 2(Q) and 20 to
CIGNA&#146;s 2002 Financial Statements included in its Annual Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003,
International expects continued emphasis on its life, accident and health
products as well as its global group benefits products. International also
expects enhanced focus on potential growth markets, including Europe and Asia. </P>

<P ALIGN="CENTER"><B><I>Distribution</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International
distributes its products through a combination of independent agents, agents of
strategic partners, financial institutions and various direct marketing
channels. Life, accident and health products are primarily distributed through
direct marketing, including telemarketing and direct mail under a variety of
sponsored arrangements; the Internet; and agents and financial institutions.
Health care products are distributed through independent brokers and agents as
well as the company&#146;s own sales personnel. </P>

<P ALIGN="CENTER"><B><I>Pricing, Reserves and Reinsurance</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums for
life, accident and health insurance products are based on assumptions about
mortality, morbidity, persistency, expenses and target profit margins, as well
as interest rates and competitive considerations. The profitability of these
products is affected by the degree to which future experience deviates from
these assumptions. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Premiums and
fees for health care products reflect assumptions about future claims, expenses,
investment returns, competitive considerations and profit margins. For products
using networks of contracted providers, premiums reflect assumptions about the
impact of provider contracts and utilization management on future claims. Most
of the premium volume for the medical indemnity business is on a guaranteed cost
basis. Other premiums are established on an experience-rated basis. Most
contracts permit rate changes at least annually. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
profitability of health care products is dependent upon the accuracy of
projections for health care inflation (unit cost and utilization), the adequacy
of fees charged for administration and risk assumption and, in the case of
managed care products, effective medical cost management. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees for
variable universal life insurance products consist of mortality, administrative
and surrender charges assessed against the contractholder&#146;s fund balance.
Interest </P>

<P ALIGN="CENTER">24 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">credited and mortality charges on variable universal life may be
adjusted prospectively to reflect expected interest and mortality experience.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition to
paying current benefits and expenses, CIGNA establishes reserves in amounts
estimated to be sufficient to settle reported claims not yet paid, as well as
claims incurred but not yet reported. Additionally, for individual life
insurance products, CIGNA establishes policy reserves that reflect the present
value of expected future obligations less the present value of expected future
premiums. For variable universal life, CIGNA establishes reserves for deposits
received and income credited less mortality and administrative charges assessed
against the contractholder&#146;s fund balance. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA reduces
its exposure to large and/or multiple losses arising out of a single occurrence
by purchasing reinsurance from unaffiliated reinsurers. </P>

<P ALIGN="CENTER"><B><I>Competition</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal
competitive factors that affect International are underwriting and pricing,
relative operating efficiency, relative effectiveness in medical cost
management, quality of provider networks and relationships, product innovation
and differentiation, distribution methodologies and producer relations, and the
quality of claims and policyholder services. In most overseas markets,
perception of financial strength is also an important competitive factor. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International&#146;s
primary competitors include U.S.-based companies with global operations, as well
as other, non-U.S., global carriers and indigenous companies in regional and
local markets. For the life, accident and health lines of business, locally
based competitors are primarily indigenous life insurance companies, but also
include financial institutions and insurance subsidiaries of banks. CIGNA
expects that the competitive environment will intensify as U.S. and Europe-based
insurance and financial services providers pursue global expansion
opportunities. </P>




<P ALIGN="CENTER">25 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="IF"></A>
<P ALIGN="LEFT"><B>F. Run-off Reinsurance Operations</B></P>

<P ALIGN="CENTER"><B><I>Principal Products and Markets</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until June of
2000, CIGNA offered reinsurance coverage for part or all of the risks written by
other insurance companies under life and annuity policies (both group and
individual); accident policies (personal accident, catastrophe and workers&#146;
compensation coverages); and health policies. These products were sold
principally in North America and Europe through a small sales force and through
intermediaries. </P>

<P ALIGN="LEFT"><B><U>Premiums and Fees</U></B> <BR>
<I>(In millions)</I> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="1" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="1" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="1" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD WIDTH="53%" ALIGN="LEFT">Life</TD>
     <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="9%" ALIGN="RIGHT">$84</TD>        <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="9%" ALIGN="RIGHT">$93</TD>        <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="9%" ALIGN="RIGHT">$116</TD>        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Personal Accident</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">52</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">51</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">237</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Health</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">2</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">4</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">12</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Premiums and Fees</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$138</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$148</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$365</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="1" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

</TABLE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 1,
2000, CIGNA sold its U.S. individual life, group life and accidental death
reinsurance business for cash proceeds of approximately $170 million. The sale
generated an after-tax gain of approximately $85 million, but recognition of
that gain was deferred because the sale was structured as an indemnity
reinsurance arrangement. During 2001 and 2002, the acquirer entered into
agreements with most of the reinsured parties, relieving CIGNA of any remaining
obligations to those parties. As a result, CIGNA accelerated the recognition of
most of the deferred gain in 2001. For additional discussion, see
&#147;Acquisitions and Dispositions&#148; in the MD&amp;A section of, and Note 4
to CIGNA&#146;s 2002 Financial Statements included in its Annual Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA placed its
remaining reinsurance businesses (including its accident, domestic health,
international life and health, and specialty life reinsurance businesses) into
run-off as of June 1, 2000, and stopped underwriting new reinsurance business.
For the run-off reinsurance business, CIGNA has established policy reserves that
reflect the present value of expected future obligations less the present value
of expected premiums. In addition, CIGNA establishes loss reserves for claims
received but not yet paid, based on the amount of the claim received, and for
losses incurred but not reported, based on prior claim experience. </P>

<P ALIGN="CENTER"><B><I>Specialty Life Reinsurance Contracts</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reinsurance
operations reinsured a guaranteed minimum death benefit under certain variable
annuities issued by other insurance companies. These variable annuities are
essentially investments in mutual funds combined with a death benefit. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, CIGNA
recognized an after-tax charge of $720 million ($1.1 billion pre-tax) to
strengthen reserves related to these guaranteed minimum death benefits and the
adoption of a program to substantially reduce equity market risks related to
these contracts. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of
this program is to substantially reduce the adverse effects of potential future
domestic and international stock market declines on CIGNA&#146;s liabilities for
these contracts, as increases in liabilities under the contracts from a
declining market will be substantially offset by gains on the futures contracts.
A consequence of this program is that it also substantially reduces the positive
effects of potential future equity market increases, as reductions in
liabilities under these contracts from improved equity market conditions will be
substantially offset by losses on the futures contracts. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to
achieve the objective of this program, CIGNA expects to adjust its futures
contract position and possibly enter into other positions over time to reflect
changing equity market levels and changes in the investment mix of the
underlying variable annuity investments. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA had
reserves for these liabilities of approximately $1.4 billion as of December 31,
2002, and approximately $300 million as of December&nbsp;31, 2001. </P>

<P ALIGN="CENTER">26 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
estimates reserves for variable annuity death benefit exposure based on
assumptions and other considerations, including lapse, partial surrender,
mortality, interest rates and volatility. These are based on CIGNA&#146;s
experience and future expectations. CIGNA monitors actual experience to update
these reserve estimates as necessary. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lapse refers to
the full surrender of an annuity prior to an annuitant&#146;s death. Volatility
refers to market volatility that affects the costs of the investment program
adopted by CIGNA to reduce equity market risks associated with these
liabilities. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partial
surrender refers to the fact that most annuitants have the ability to withdraw
substantially all of their mutual fund investments while retaining any available
death benefit coverage in effect at the time of the withdrawal. A very small
percentage of annuitants have elected partial surrenders to date. An increase in
CIGNA&#146;s liabilities for variable annuity death benefits due to partial
surrenders would depend on many factors, including financial market conditions
prior to surrender and annuitant behavior. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
determination of reserves for variable annuity death benefits requires CIGNA to
make critical accounting estimates, as discussed further in &#147;Other
Matters&#148; in the MD&amp;A section of CIGNA&#146;s Annual Report. Management
believes the current assumptions and other considerations used to estimate
reserves for these liabilities are appropriate. However, if actual experience
differs from the assumptions and other considerations (including lapse, partial
surrender, mortality, interest rates and volatility) used in estimating these
reserves, the resulting change could have a material adverse effect on
CIGNA&#146;s results of operations, and in certain situations, could have a
material adverse effect on CIGNA&#146;s financial condition. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December
31, 2002, the aggregate fair value of the underlying mutual fund investments of
the variable annuities guaranteed by CIGNA was approximately $50 billion. The
death benefit coverage in force as of that date (representing the amount that
CIGNA would have to pay if all 1.5 million annuitants had died on that date) was
approximately $23.4 billion. The death benefit coverage in force represents the
excess of the guaranteed benefit amount over the fair value of the underlying
mutual fund investments. The notional amount of the futures contract positions
held by CIGNA at December&nbsp;31, 2002, was $2.2 billion. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The reinsurance
operations also wrote reinsurance contracts with issuers of variable annuity
contracts that provide annuitants with certain guarantees related to minimum
income benefits. When annuitants elect to receive these minimum income benefits,
CIGNA may be required to make payments based on changes in underlying mutual
fund values and interest rates. CIGNA has purchased reinsurance from third
parties, which covers 80% of the exposures of these contracts. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA estimates
the fair value of the assets and liabilities associated with these contracts
using assumptions as to equity market returns, volatility of the underlying
equity and bond mutual fund investments, interest rates, mortality, annuity
election rates and policy surrenders. As of December 31, 2002, CIGNA had
liabilities of $95 million related to these contracts and amounts recoverable
from reinsurers of $76 million. CIGNA has an additional liability of $44 million
associated with the cost of reinsurance. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For additional
discussion, see &#147;Other Matters&#148; under &#147;Run-off Reinsurance
Operations&#148; and &#147;Speciality Life Reinsurance Contracts&#148; in the
MD&amp;A section of, and Note 3 to CIGNA&#146;s 2002 Financial Statements
included in its Annual Report. </P>

<P ALIGN="CENTER"><B><I>Unicover and Other Run-off Reinsurance</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Run-off
Reinsurance Operations participate in a workers&#146; compensation reinsurance
pool, which ceased accepting new risks in early 1999. This pool was formerly
managed by Unicover Managers, Inc.  Certain disputes over reinsurance coverage for the
</P>


<P ALIGN="CENTER">27 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">pool were resolved by an arbitration ruling issued in October 2002, which was further clarified in January 2003.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Run-off
Reinsurance Operations include other workers&#146; compensation reinsurance
contracts, as well as personal accident reinsurance contracts, including
contracts assumed in the London market. CIGNA obtained reinsurance coverage in
the London market for a significant portion of the claims under these contracts.
Some of these London market retrocessionaires have disputed the validity of
their contracts with CIGNA and arbitration over some of these disputes has
commenced. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on the
outcome of the Unicover arbitration in October 2002, as well as a review of
other workers&#146; compensation and personal accident reinsurance exposures for
the run-off reinsurance operations, including an assessment of London market
retrocessional disputes and workers&#146; compensation and personal accident
reinsurance exposures, CIGNA recorded an after-tax charge of $317 million ($408
million pre-tax) in the third quarter of 2002. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The London
market retrocessional disputes are not expected to be resolved for some time. In
addition, unfavorable claims experience related to workers&#146; compensation
and personal accident exposures is possible and could result in future losses,
including losses attributable to the inability to recover amounts from
retrocessionaires (either due to disputes with the retrocessionaires or their
financial condition). </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
reserves for amounts recoverable from retrocessionaires, as well as for reserves
for liabilities associated with underlying reinsurance exposures assumed by
CIGNA, are considered appropriate as of December&nbsp;31, 2002, based on current
information. However, it is possible that future developments regarding these
matters could result in a material adverse effect on CIGNA&#146;s consolidated
results of operations, and, in certain situations, could have a material adverse
effect on CIGNA&#146;s financial condition. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For more
information see &#147;Run-off Reinsurance Operations&#148; and &#147;Other
Matters&#148; in the MD&amp;A section of, and Notes 3 and 21(D) to
CIGNA&#146;s 2002 Financial Statements included in its Annual Report. </P>






<P ALIGN="CENTER">28 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="IG"></A>
<P ALIGN="LEFT"><B>G. &nbsp;&nbsp;Other Operations</B></P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Operations consists
of:  </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="6%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="91%"><P ALIGN="LEFT">deferred
gains recognized from the 1998 sale of the individual life insurance and annuity
business;  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="6%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="91%"><P ALIGN="LEFT">corporate
life insurance on which policy loans are outstanding (&#147;leveraged corporate life
insurance&#148;);  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="6%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="91%"><P ALIGN="LEFT">settlement
annuity business; and  </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="6%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="91%"><P ALIGN="LEFT">certain
investment management services initiatives.  </P></TD>
</TR>
</TABLE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The products and
services related to these operations are offered by subsidiaries of CIGNA
Corporation. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA sold its
individual life insurance and annuity business in 1998. A portion of the gain
was deferred because the principal agreement to sell this business was an
indemnity reinsurance arrangement. The deferred portion is being recognized at
the rate that earnings from the sold business would have been expected to
emerge, primarily over 15 years on a declining basis. Because it was an
indemnity reinsurance transaction, CIGNA is not relieved of liability for the
reinsured business. See &#147;Other Operations&#148; in the MD&amp;A section of,
and Note 4 to CIGNA&#146;s 2002 Financial Statements included in its Annual
Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 1996,
Congress passed legislation implementing a three-year phase-out period for tax
deductibility of policy loan interest for most leveraged corporate life
insurance products. The legislation has adversely affected premiums and earnings
of CIGNA&#146;s leveraged corporate life insurance business. No new policies
have been sold since 1997. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2001, the
Internal Revenue Service (&#147;IRS&#148;) implemented an initiative for leveraged corporate
life insurance plans purchased after June 20, 1986, that permits policyholders
to settle tax disputes related to these plans. Management expects that some
customers will accept the IRS settlement offer and surrender their policies in
2003. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The full effect
of the 1996 legislation and the 2001 IRS settlement offer on customers&#146;
decisions to maintain these policies is uncertain. However, management expects
revenues and operating income associated with these products to decline. For
additional information on the impact of the legislation, see &#147;Other
Operations&#148; in the MD&amp;A section of CIGNA&#146;s Annual Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
settlement annuity business is a run-off block of contracts. These contracts are
primarily liability settlements with the majority of payments guaranteed and not
contingent on survivorship. </P>




<P ALIGN="CENTER">29 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="IH"></A>
<P ALIGN="LEFT"><B>H. Investments and Investment Income</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
investment operations provide investment management and related services in the
United States and certain other countries for CIGNA&#146;s corporate and
insurance-related invested assets and for group pension plan sponsors,
institutions, international investors and individual investors. CIGNA acquires
or originates, directly or through intermediaries, various investments including
private placements, public securities, mortgage loans, real estate and
short-term investments. CIGNA&#146;s investment operations also develop
structured investment products. The products and services for CIGNA&#146;s
investment operations are provided by CIGNA subsidiaries. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As shown in the
chart below, CIGNA&#146;s assets under management at December 31, 2002 totaled
$82.0 billion. These assets consist of the following: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Invested
Assets. These include the insurance and retirement-related assets that CIGNA holds in the
General Account and other corporate invested assets. </P></TD>
</TR>
</TABLE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Advisory
Portfolio Assets. These include: </P></TD>
</TR>
</TABLE>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">Separate
Account Assets, which are contractholder funds maintained in accounts with specific
investment objectives, principally for CIGNA&#146;s defined contribution and defined
benefit customers. Although Separate Account Assets are separately presented on CIGNA&#146;s
balance sheet, the investment income, gains and losses on Separate Accounts generally
accrue to the contractholders and are not included in CIGNA&#146;s revenues and expenses.  </P></TD>
</TR>
</TABLE>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">Third
Party Account Assets, which are customer assets that CIGNA manages, but for which the
customer retains title. These assets are not reflected in CIGNA&#146;s balance sheet, and
investment income, gains and losses are excluded from CIGNA&#146;s revenues and expenses.  </P></TD>
</TR>
</TABLE>
<BR>


<P ALIGN="CENTER">30 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="AUM"></A>
<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="12" ALIGN="CENTER"><B>ASSETS UNDER MANAGEMENT<BR>DECEMBER 31, 2002<BR>(In millions)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="12">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="74%" ALIGN="LEFT">Invested Assets</TD>     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="5%" ALIGN="RIGHT"></TD>        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="5%" ALIGN="RIGHT"></TD>        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="5%" ALIGN="RIGHT"></TD>        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee Health Care, Life and Disability Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 8,352</TD>        <TD ALIGN="LEFT">&nbsp;</TD>     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee Retirement Benefits and Investment Services</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">24,698</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International Life, Health and Employee Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">848</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Run-Off Reinsurance Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,356</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5,106</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Invested Assets</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="LEFT">40,362</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>


<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Advisory Portfolio Assets</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separate Accounts</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee Health Care, Life and Disability Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,250</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee Retirement Benefits and Investment <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">28,513</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;International Life, Health and  Employee Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">172</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,320</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Separate Accounts</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"> $</TD><TD ALIGN="RIGHT">31,255</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third Party Accounts <SUP><A HREF="#T311">(1)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACE Limited <SUP><A HREF="#T312">(2)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,436</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Third Party Accounts <SUP><A HREF="#T313">(3)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7,985</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Third Party Accounts</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"></TD><TD ALIGN="RIGHT">10,421</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Advisory Portfolio Assets</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD>   <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"></TD><TD ALIGN="RIGHT">41,676</TD>   <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Total Assets Under Management</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT"> </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT">82,038</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>

<P>_________________

<A NAME="T311"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Amounts
in Third Party Accounts are not included in CIGNA&#146;s Consolidated Balance Sheets.  </P></TD>
</TR>
</TABLE>

<A NAME="T312"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(2) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">These
assets were transferred by CIGNA to ACE Limited in 1999 in connection with the sale of
CIGNA&#146;s property and casualty business, but continue to be managed by CIGNA. </P></TD>
</TR>
</TABLE>

<A NAME="T313"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(3) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Includes
investment advisory assets managed by the Employee Retirement Benefits and Investment
Services segment.  </P></TD>
</TR>
</TABLE>





     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets under
management for CIGNA include $53.8 billion in assets under management for the
Employee Retirement Benefits and Investment Services segment. For additional
information about the assets under management for that segment, and additional
information about General and Separate Accounts, see Section D &#147;Employee
Retirement Benefits and Investment Services&#151;Principal Products and
Markets&#148; on <A HREF="#PRINCIPALPRODUCTS">page 17</A>.</P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
investment operations directly manage substantially all of the Invested Assets. CIGNA manages
a portion of the Advisory Portfolio Assets directly and a portion through
Sub-advisory Arrangements. Third-party retail mutual fund managers also manage a
portion of the Advisory Portfolio Assets in Independent Funds. The table below
shows the percentage of Advisory Portfolio Assets managed through each of these
methods as of December 31: </P>

<P ALIGN="CENTER">31 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B><U>2002</U></B></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B><U>2001</U></B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Direct</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="CENTER">56%</TD>        <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">59%</TD>        <TD ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sub-advisory</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="CENTER">15%</TD>        <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">13%</TD>        <TD ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="CENTER">29%</TD>        <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">28%</TD>        <TD ALIGN="LEFT"></TD></TR>
</TABLE>

<P ALIGN="LEFT"><I>Types of Investments</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA invests in
a broad range of asset classes, including domestic and international fixed
maturities and common stocks, mortgage loans, real estate and short-term
investments. Fixed maturity investments include publicly traded and private
placement corporate bonds, government bonds, publicly traded and private
placement asset-backed securities, and redeemable preferred stocks. CIGNA&#146;s
investment in asset-backed securities includes investments in collateralized
mortgage obligations (&#147;CMOs&#148;) and collateralized debt obligations.
CIGNA&#146;s CMO holdings are concentrated in securities with limited
prepayment, extension and default risk<I>. </I>For additional information about
asset-backed securities, see &#147;Investment Assets&#148; in the MD&amp;A
section of CIGNA&#146;s Annual Report. </P>

<P ALIGN="CENTER"><B><I>Domestic Employee Benefits Investments</I></B> </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The major portfolios
under management in CIGNA&#146;s General Account consist of the combined assets of the
Employee Health Care, Life and Disability Benefits segment, the Employee Retirement
Benefits and Investment Services segment, the Run-off Reinsurance Operations segment and
Other Operations (collectively, &#147;Domestic Employee Benefits portfolios&#148;). CIGNA
generally manages the characteristics of these assets to reflect the underlying
characteristics of related insurance and contractholder liabilities, as well as
regulatory and tax considerations pertaining to those liabilities. CIGNA&#146;s domestic
insurance and contractholder liabilities as of December 31, 2002, excluding liabilities
of businesses sold through use of reinsurance, were associated with the following
products: experience-rated pension, 47%; fully guaranteed investment and annuity, 17%;
interest-sensitive life insurance, 14%; and other life and health, 22%. These products,
and the investment assets supporting them, are described below.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Experience-rated
pension products primarily consist of defined benefit and defined contribution
pension products. Investments for these products are selected to support the
yield and liquidity needs of the products and are principally fixed income
investments. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fully guaranteed
products primarily include guaranteed investment contracts (&#147;GICs&#148;),
single premium annuity products and settlement annuities. Because these products
generally do not permit withdrawal by policyholders prior to maturity, the
amount and timing of future benefit cash flows can be reasonably estimated.
Funds supporting these products are invested in fixed income investments that
generally match the aggregate duration of the investment portfolio with that of
the related benefit cash flows. As of December 31, 2002, the duration of assets
and liabilities was approximately 3 years for GICs, 7 years for single premium
annuities, and 12 years for settlement annuities. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest-sensitive
products primarily consist of corporate life insurance products. Invested assets
supporting these products are primarily fixed income investments and policy
loans. Fixed income investments emphasize investment yield while meeting the
liquidity requirements of the related liabilities. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other life and
health insurance products consist of various group and individual life, health
and disability insurance products. The supporting invested assets are structured
to emphasize investment income, and the necessary liquidity is provided through
cash flow, short-term investments and public securities. Assets supporting
longer-term group disability insurance benefits and group life waiver of premium
benefits are generally managed to an aggregate duration similar to that of the
related benefit cash flows. </P>

<P ALIGN="CENTER">32 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT"><I>Investment Strategy</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment
strategy and results are affected by the amount and timing of cash available for
investment, competition for investments (especially in private asset classes),
economic conditions, interest rates and asset allocation decisions. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA routinely
monitors and evaluates the status of its investments in light of current
economic conditions, trends in capital markets and other factors. Such factors
include industry sector considerations for fixed maturity investments, and
geographic and property-type considerations for mortgage loan and real estate
investments. Most international fixed maturity investments are
government-backed. </P>

<P ALIGN="LEFT"><I>Fixed Maturities</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
fixed maturity investments, including policyholder share, as of December 31,
2002, constituted 68% of the Domestic Employee Benefits portfolios. As of that
date, approximately 48% of fixed maturity investments was attributable to
experience-rated pension contracts. CIGNA invests primarily in investment grade
fixed maturities rated by rating agencies (for public investments), by CIGNA
(for private investments) or by the Securities Valuation Office of the National
Association of Insurance Commissioners (for both public and private
investments). For information about below investment grade holdings, see
&#147;Investment Assets&#148; in the MD&amp;A section of CIGNA&#146;s Annual
Report. </P>

<P ALIGN="LEFT"><I>Mortgages and Real Estate</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
mortgage loan investments, including policyholder share, constituted 22% of the
Domestic Employee Benefits portfolios as of December 31, 2002. As of that date,
approximately 56% of mortgage loan investments was attributable to
experience-rated pension contracts. Mortgage loan investments are subject to
underwriting criteria addressing loan-to-value ratio, debt service coverage,
cash flow, tenant quality, leasing, market, location and borrower&#146;s
financial strength. Such investments consist primarily of first mortgage loans
on commercial properties and are diversified by property type, location and
borrower. CIGNA invests in fully completed and substantially leased commercial
properties. Virtually all of CIGNA&#146;s mortgage loans are bullet or balloon
payment loans, under which all or a substantial portion of the loan principal is
due at the end of the loan term. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
real estate investments, including policyholder share, constituted 1% of the
Domestic Employee Benefits portfolios as of December 31, 2002. As of that date,
54% of real estate investments was attributable to experience-rated pension
contracts. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate
investments purchased by CIGNA are actively managed to maximize operating
income. These investments consist primarily of stabilized commercial properties
and are diversified relative to property type and location. CIGNA also acquires
real estate through foreclosure of mortgage loans. CIGNA rehabilitates,
re-leases and sells foreclosed properties, a process that usually takes from two
to four years unless management considers a near-term sale preferable. CIGNA
sold $78 million of foreclosed properties in 2002 and $88 million in 2001 and
expects to sell additional foreclosed properties in 2003. </P>

<P ALIGN="LEFT"><I>Derivative Instruments</I></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA generally
uses derivative financial instruments to minimize its exposure to certain market
risks. CIGNA has also written derivative instruments to minimize insurance
customers&#146; market risks. For information about CIGNA&#146;s use of
derivative financial instruments, see Notes 2(B) and 7(G) to CIGNA&#146;s 2002
Financial Statements included in its Annual Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Investment Assets&#148; in the MD&amp;A section of, and Notes 2, 7, 8 and 9 to
CIGNA&#146;s 2002 Financial Statements included in its Annual Report for
additional information about CIGNA&#146;s investments. </P>



<P ALIGN="CENTER">33 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
tables summarize the distribution of investments attributable to CIGNA&#146;s
Domestic Employee Benefits portfolios and the related net investment income from
such investments. Approximately 49% of the investments in the Domestic Employee
Benefits portfolios is attributable to experience-rated pension contracts with
policyholders. </P>







<P ALIGN="CENTER">34 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"><B>Domestic Employee Benefits Investments</B></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>As of December 31,</B></TD></TR>
<TR>
     <TD COLSPAN="1"><HR NOSHADE SIZE="1"></TD><TD></TD><TD></TD>
     <TD COLSPAN="8" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>(In millions)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Fixed maturities:</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Bonds:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumer products</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 3,949</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 3,729</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,684</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manufacturing</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,848</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,401</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,303</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finance</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,948</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,936</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,467</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Energy</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,603</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,290</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,204</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public utilities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,761</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,606</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,530</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;States, municipalities and political<BR> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subdivisions</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,761</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,596</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,555</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transportation</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,321</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,277</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,258</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;U.S. government and government <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;agencies and authorities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,196</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">487</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">777</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign governments<SUP><A HREF="#T351">(1)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">391</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">338</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">306</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">937</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">613</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">394</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total bonds</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">20,715</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">17,273</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">15,478</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Asset-backed securities:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States government agencies,<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mortgage-backed</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,669</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">627</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">511</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other mortgage-backed</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,265</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,344</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,132</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,290</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,515</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,190</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Redeemable preferred stocks</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">90</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">26</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">27,029</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22,785</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">21,313</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Equity securities:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Common stocks:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial and miscellaneous</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">232</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">325</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">430</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks, trust and insurance companies</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">23</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">30</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">48</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public utilities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">16</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total common stocks</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">260</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">365</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">494</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Non-redeemable preferred stocks</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">19</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">266</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">377</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">513</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Mortgage loans:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Commercial:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Office buildings</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,749</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,086</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4,127</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail facilities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,292</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,091</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,069</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Apartments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,177</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,313</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,262</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">740</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">704</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">592</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hotels</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">592</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">544</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">599</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">179</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">182</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">118</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total mortgages</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">8,729</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9,920</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9,767</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Policy loans</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,399</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,766</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,924</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Real estate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">253</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">430</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">525</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Other long-term investments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">787</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,178</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,001</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Short-term investments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">49</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">26</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">119</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 39,512</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 37,482</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 36,162</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>

<P ALIGN="LEFT">_________________ <br>

These amounts do not include Separate Account assets. See Note 2(D) to
the Financial Statements of CIGNA&#146;s Annual Report for a discussion of the method of
valuation of investments. <BR>
<A NAME="T351"></A>(1) Comprises fixed maturities of sovereign foreign governments.  </P>


<P ALIGN="CENTER">35 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"><B>Net Investment Income for Domestic<br>Employee Benefits Investments</B> </TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>Year ended December 31,</B></TD></TR>
<TR>
     <TD COLSPAN="2"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="8" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD></TR>

<TR VALIGN="BOTTOM">
     <TD COLSPAN="2"><B></B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></td>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="9" ALIGN="CENTER"><B>(In millions)</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="6%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Fixed maturities</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,723</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,676</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,637</TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Equity securities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">8</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Mortgage loans</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">707</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">772</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">773</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Policy loans</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">177</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">208</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">201</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Real estate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">62</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">94</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">113</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Other investments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">66</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">101</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">119</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,743</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,860</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,853</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Less investment expenses</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">83</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">91</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">110</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Net investment income, pre-tax</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,660</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,769</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,743</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Net investment yield<SUP><A HREF="#T361">(1)</A></SUP></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7.05</TD>
        <TD ALIGN="LEFT">%</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7.58</TD>
        <TD ALIGN="LEFT">%</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7.80</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>

<P>_________________ </P>
<A NAME="T361"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1)</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">The
net investment yield is equal to (a) net investment income multiplied by two, divided by
(b) the sum, at the beginning and end of the year, of cash, invested assets (at cost or
amortized cost less impairments) and investment income due and accrued, less borrowed
money, less net investment income.  </P></TD>
</TR>
</TABLE>





<P ALIGN="CENTER"><B><I>International Employee Benefits and Corporate Investments</I></B> </P>

<P ALIGN="LEFT">In addition to the Domestic Employee Benefits portfolios, CIGNA has a
portfolio for CIGNA&#146;s International Life, Health and Employee Benefits segment (&#147;International&#148;).
Invested assets for International and unallocated corporate investments totaled $850
million as of December 31, 2002, $779 million as of December 31, 2001 and $3.6 billion as
of December 31, 2000. Investments include U.S. and international fixed maturities, policy
loans, mortgage loans and short-term investments. Net investment income from these
investments and from cash and cash equivalents was $56 million for 2002, $73 million for
2001 and $197 million for 2000.  </P>



<P ALIGN="CENTER">36 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>



<A NAME="II"></A>
<P ALIGN="LEFT"><B>I. Regulation</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
subsidiaries, depending on the type and location of their business activities,
may be subject to federal, state and foreign regulation. CIGNA&#146;s insurance
subsidiaries and HMOs are licensed to do business in, and are subject to
regulation and supervision by, state regulatory authorities as well as
authorities in the District of Columbia, certain U.S. territories and various
foreign jurisdictions. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The extent of
regulation of insurance subsidiaries and HMOs varies. Licensing of insurers,
HMOs and their agents and the approval of coverage and provider contract forms
is usually required. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most
jurisdictions have laws and regulations governing rates, solvency, standards of
conduct and various insurance and investment products. States often regulate
standards for HMO quality assurance programs, minimum levels of benefits that
must be offered and requirements for availability and continuity of care.
Increasingly, states also are regulating the relationship between HMOs and their
contracted providers, and are requiring submission of reports on medical
utilization and other matters for managed care products. Most states have
enacted laws requiring the payment of interest on claims paid late and state
regulators have recently begun imposing substantial penalties for late payment
even where interest is properly paid on late claim payments. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The form and
content of statutory financial statements and the type and concentration of
investments are also regulated. Each insurance and HMO subsidiary is required to
file periodic financial reports with supervisory agencies in most of the
jurisdictions in which it does business, and its operations and accounts are
subject to examination by such agencies at regular intervals. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance risk
selection is a concern of regulators. For example, some states have imposed
restrictions on the use of underwriting criteria related to AIDS, domestic abuse
and credit reports. Also, various interpretations under the Americans with
Disabilities Act may affect the provision of insurance benefits under certain
types of policies. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Most states and
certain foreign jurisdictions require licensed insurance companies to support
guaranty associations or indemnity funds, which are organized to pay claims on
behalf of insolvent insurance companies. In the United States, these
associations levy assessments on member insurers in a particular state to pay
such claims. These assessments are levied in proportion to the member
insurers&#146; relative shares of the lines of business that had been written by
the insolvent insurer. The maximum assessment permitted by law in any one year
is generally 2% of annual premiums written by each member in a particular state
with respect to the categories of business involved and may be offset in some
states over a five-year period against premium taxes payable. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition,
insurance companies are subject to a variety of assessments to fund
insurance-related activities such as medical risk pools and operating expenses
of state regulatory bodies. These assessments are levied on various bases,
including companies&#146; proportionate shares of aggregate written premiums and
aggregate incurred or paid losses. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Several states
also require HMOs to participate in guaranty funds, special risk pools and
administrative funds. CIGNA expects additional states to consider revising their
solvency standards and guaranty fund legislation to encompass HMOs. For
additional information about guaranty fund and other assessments, see Note 21 to
CIGNA&#146;s 2002 Financial Statements included in its Annual Report. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some states
require health insurers and HMOs to participate in assigned risk plans, joint
underwriting authorities, pools or other residual market mechanisms to insure
risks</P>

<P ALIGN="CENTER">37 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">not acceptable under normal underwriting standards.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The National
Association of Insurance Commissioners (&#147;NAIC&#148;) has developed model
solvency-related laws that many states have adopted. The NAIC also has developed
risk-based capital rules (&#147;RBC rules&#148;) for life and health insurance
companies and HMOs that have been adopted by many states. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The RBC rules
recommend a minimum level of capital depending on the types and quality of
investments held, the types of business written and the types of liabilities
maintained. Depending on the ratio of the insurer&#146;s adjusted surplus to its
risk-based capital, the insurer could be subject to various regulatory actions
ranging from increased scrutiny to conservatorship. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition,
various foreign jurisdictions prescribe minimum surplus requirements that are
based upon liquidity and reserve coverage measures. As of December 31, 2002,
CIGNA&#146;s life and health insurance and HMO subsidiaries were adequately
capitalized under applicable RBC and foreign surplus rules. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
insurance subsidiaries are subject to state laws regulating insurers that are
subsidiaries of insurance holding companies. Under such laws, certain dividends,
distributions and other transactions between an insurance subsidiary and the
holding company or its other subsidiaries may require notification to, or be
subject to the approval of, one or more state insurance commissioners. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State and
federal regulatory scrutiny of life and health insurance company and HMO
marketing and advertising practices, including the adequacy of disclosure
regarding products and their future performance, may result in increased
regulation. States have responded to concerns about marketing, advertising and
administration of insurance by increasing the number and frequency of market
conduct examinations and imposing larger penalties for violations of laws and
regulations pertaining to these functions. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA sells its
products and services to sponsors of employee health care benefit plans that are
typically governed by ERISA and, therefore, may be subject to requirements
imposed by ERISA on plan fiduciaries and parties in interest. New ERISA
regulations affecting claims and appeals procedures were implemented in 2002 for
life, accident and disability and health care claims. These regulations required
significant operational changes. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA also
participates in selected markets in health care programs sponsored by the
federal government, including Medicare, Medicaid and the Federal Employee Health
Benefits Program. In addition, CIGNA has contractual arrangements with the
federal government by which CIGNA provides claims processing and other
administrative services to the government with respect to certain Medicare
claims. Participation in government sponsored health care programs subjects
CIGNA to a variety of federal laws and regulations and risks associated with
audits conducted under the programs, including reimbursement claims as well as
potential fines and penalties. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For example,
under Office of Personnel Management rules, CIGNA HMOs that contract to cover
federal employees may be required to reimburse the federal government if,
following an audit, it is determined that a federal employee group did not
receive the benefit of a discount offered by a CIGNA HMO to one of the two
groups closest in size to the federal employee group. The federal government
also requires Medicare and Medicaid providers to file detailed cost reports for
health care services provided. These reports may be audited in subsequent years.
See Section C &#147;Employee Health Care, Life and Disability Benefits&#148;
on <A HREF="#IC">page 5</A> for additional information about CIGNA&#146;s participation in government
health-related programs. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Health
Insurance Portability and Accountability Act of 1996 (&#147;HIPAA&#148;) and
other federal statutes subject health care insurers and HMOs to federal
regulation.</P>

<P ALIGN="CENTER">38 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>




<P ALIGN="LEFT"> HIPAA imposes guaranteed issuance (for groups with 50 or fewer lives), renewal and portability requirements on
health care insurers.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HIPAA, through
its &#147;Administrative Simplification&#148; provisions, also establishes new
rules to standardize the electronic transmission of data and the codes relating
to enrollment, eligibility, payment of claims and coordination of benefits among
insurers, providers and health care clearinghouses. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The compliance
date for implementing these electronic transaction standards and code sets has
been extended to October 16, 2003 for CIGNA based on CIGNA&#146;s submission of
a compliance plan, including a work plan and implementation strategy, to the
Secretary of Health and Human Services. CIGNA is required to make significant
systems enhancements to implement the electronic standards and code sets. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulations
issued in February 2003 set standards for the security of electronic health
information, and must be implemented by CIGNA by April 2005. The new regulations
specify a series of administrative, technical and physical security procedures.
CIGNA has implemented certain security measures and planned others in
anticipation of these rules. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulations
pursuant to HIPAA providing standards for the assignment of a unique national
identifier for health plans and providers have been proposed. Final regulations
requiring a unique national identifier for employer groups must be implemented
by July 2004. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compliance with
the privacy regulations under HIPAA is required by April 2003. These regulations
cover all aspects of the health care delivery system, and address the use and
disclosure of individually identifiable health care information. CIGNA is implementing
significant systems enhancements, training and administrative efforts
as well as modifications of contracts and interactions with its customers
regarding the exchange of individually identifiable health care information in
order to satisfy these regulations. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition,
increasing numbers of federal, state and foreign lawmakers and regulators have
imposed or are seeking to impose new privacy standards. These standards affect
how identifiable information about individuals may be handled, used and
disclosed. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA expects
federal and state legislatures to continue efforts to increase regulation of the
health care industry. In addition, private litigants, particularly those
represented by a coalition of plaintiffs&#146; lawyers who have brought proposed
class action lawsuits against CIGNA and health care industry competitors, have
attempted to force changes in certain operational practices of the industry. See
Section C &#147;Employee Health Care, Life and Disability Benefits&#148; on <A HREF="#IC">page 5</A> for
additional information. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
&#147;Gramm-Leach-Bliley Financial Modernization Act,&#148; enacted in 1999,
removed many of the restrictions on affiliations among firms in different
financial services businesses, notably banking, securities and insurance.
Although no significant additional competition for CIGNA&#146;s businesses has
resulted from the Act to date, it is too early to assess the Act&#146;s
long-range effects. The Act also contains provisions to protect the privacy of
certain information held by insurance companies and financial institutions, and
requires such companies to inform individuals of their practices in handling
individually identifiable information. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The extent of
insurance regulation varies significantly among the countries in which CIGNA
conducts its international operations. In many countries, foreign insurers are
faced with greater restrictions than domestic competitors. These may include
discriminatory licensing procedures, compulsory cessions of reinsurance,
required localization of records and funds, higher premium and income taxes, and
requirements  </P>

<P ALIGN="CENTER">39 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT">for local participation in an insurer&#146;s ownership. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depending upon
their nature, CIGNA&#146;s investment management activities and products with
United States jurisdictional contacts and its broker-dealer activities are
subject to U.S. federal securities laws, ERISA, and other federal and state laws
governing investment-related activities and products. Investments made by United
States insurance companies are subject to state insurance laws. Investment
management activities and products outside the United States, and investments
made by non-U.S. insurance companies outside the United States, are subject to
local regulation. In many cases, the investment management activities and
investments of individual insurance companies are subject to regulation by
multiple jurisdictions. In addition, a CIGNA subsidiary operates a federal
savings bank, which is subject to federal regulation. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA is also
subject to Presidential Executive Order 13224 which prohibits U.S. entities from
doing business with persons and entities (including terrorists) on a list
maintained by the Office of Foreign Asset Control. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal
regulation and taxation may affect CIGNA&#146;s operations in a variety of ways.
In addition to proposals discussed above related to increased regulation of the
health care industry, current and proposed federal measures that may
significantly affect CIGNA&#146;s operations include pension and other employee
benefit regulation, tax legislation and Social Security legislation. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The economic and
competitive effects on CIGNA&#146;s business operations of the legislative and
regulatory proposals discussed above will depend upon the final form any such
legislation or regulation may take. </P>




<P ALIGN="CENTER">40 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="IJ"></A>
<P ALIGN="LEFT"><B>J. Ratings</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA and
certain of its insurance subsidiaries are rated by nationally recognized rating
agencies. The significance of individual ratings varies from agency to agency.
However, companies assigned ratings at the top end of the range have, in the
opinion of the rating agency, the strongest capacity for repayment of debt or
payment of claims, while companies at the bottom end of the range have the
weakest capacity. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance
ratings represent the opinions of the rating agencies on the financial strength
of a company and its capacity to meet the obligations of insurance policies. The
principal agencies that rate CIGNA&#146;s insurance subsidiaries
characterize their insurance rating scales as follows: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">A.M.
Best Company, Inc. ("A.M. Best"), A++ to S ("Superior" to "Suspended"); </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Moody's
Investors Service ("Moody's"), Aaa to C ("Exceptional" to "Lowest"); </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Standard
&amp; Poor's Corp. ("S&amp;P"), AAA to R ("Extremely Strong" to "Regulatory Action"); and </P></TD>
</TR>
</TABLE>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Fitch,
Inc. ("Fitch"), AAA to D ("Exceptionally Strong" to "Order of Liquidation"). </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of February
28, 2003, the insurance financial strength ratings for CG Life were as follows: </P>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="TOP">
     <TD WIDTH="60%" ALIGN="LEFT"></TD>
     <TD WIDTH="40%" ALIGN="CENTER"><B>CG Life</B></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER"><B>Insurance Ratings</B><SUP><A HREF="#T61">(1)</A></SUP></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT"><HR ALIGN=CENTER WIDTH=80% SIZE=1 NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">A.M. Best</TD>
     <TD ALIGN="CENTER">A</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">("Excellent,"</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">3<SUP>rd </SUP>&nbsp;of 16)</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">Moody's</TD>
     <TD ALIGN="CENTER">A1</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">("Good,"</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">5<SUP>th</SUP> of 21)</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">S&amp;P</TD>
     <TD ALIGN="CENTER">A+</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">("Strong,"</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">5<SUP>th</SUP> of 21)</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">Fitch</TD>
     <TD ALIGN="CENTER">AA-</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">("Very strong,"</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">4<SUP>th</SUP> of 24)</TD></TR>
</TABLE>

<P>_________________ </P>
<A NAME="T61"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Includes
the rating assigned, the agency&#146;s characterization of the rating and the position of
the rating in the agency&#146;s rating scale (e.g., CG Life&#146;s rating by A.M. Best is
the 3<SUP>rd</SUP>&nbsp;highest rating awarded in its scale of 16).  </P></TD>
</TR>
</TABLE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of February
28, 2003, the insurance financial strength rating for Life Insurance Company of
North America assigned by A.M. Best was A (&#147;Excellent,&#148; 3<SUP>rd</SUP>
of 16), and by Moody&#146;s was A2 (&#147;Good,&#148; 6<SUP>th</SUP> of 21). </P>


<P ALIGN="CENTER">41 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt ratings are
assessments of the likelihood that a company will make timely payments of
principal and interest. The principal agencies that rate CIGNA&#146;s senior
debt characterize their rating scales as follows: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">Moody&#146;s,
Aaa to C (&#147;Exceptional&#148;&nbsp;to &#147;Lowest&#148;);  </P></TD>
</TR>
</TABLE>



<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">S&amp;P,
AAA to D (&#147;Extremely Strong&#148;&nbsp;to &#147;Default&#148;); and </P></TD>
</TR>
</TABLE>



<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">Fitch,
AAA to D (&#147;Highest&#148;&nbsp;to &#147;Default&#148;).  </P></TD>
</TR>
</TABLE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The commercial
paper rating scales for those agencies are as follows: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">Moody&#146;s,
Prime-1 to Not Prime (&#147;Superior&#148;&nbsp;to &#147;Not Prime&#148;); </P></TD>
</TR>
</TABLE>



<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">S&amp;P,
A-1+ to D (&#147;Extremely Strong&#148;&nbsp;to &#147;Default&#148;); and  </P></TD>
</TR>
</TABLE>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">Fitch,
F-1+ to D (&#147;Very Strong&#148;&nbsp;to &#147;Distressed&#148;).  </P></TD>
</TR>
</TABLE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of February
28, 2003, the debt ratings obtained from the following agencies were as
follows: </P>






<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="600">
<TR VALIGN="BOTTOM">
     <TD ALIGN="CENTER" COLSPAN="3"><B>Debt Ratings</B><SUP><A HREF="#T71">(1)</A></SUP>&nbsp;&nbsp;&nbsp;&nbsp;<BR><B><U>CIGNA CORPORATION</U></B>&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="CENTER"></TD>
     <TD ALIGN="CENTER"><B><U>Senior Debt</U></B></TD>
     <TD ALIGN="CENTER"><B>Commercial<BR><U>Paper</U></B></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="50%" ALIGN="LEFT"></TD>
     <TD WIDTH="25%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="25%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">Moody's</TD>
     <TD ALIGN="CENTER">Baa1</TD>
     <TD ALIGN="CENTER">Prime-2</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">("Adequate,"</TD>
     <TD ALIGN="CENTER">("Strong,"</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">8<SUP>th</SUP> of 21)</TD>
     <TD ALIGN="CENTER">2<SUP>nd</SUP> of 4)</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">S&amp;P</TD>
     <TD ALIGN="CENTER">BBB+</TD>
     <TD ALIGN="CENTER">A-2</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">("Adequate,"</TD>
     <TD ALIGN="CENTER">("Good,"</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">8<SUP>th</SUP> of 22)</TD>
     <TD ALIGN="CENTER">3<SUP>rd</SUP> of 7)</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">Fitch</TD>
     <TD ALIGN="CENTER">A-</TD>
     <TD ALIGN="CENTER">F-2</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">("High,"</TD>
     <TD ALIGN="CENTER">("Moderately Strong,"</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="CENTER">7<SUP>th</SUP> of 24)</TD>
     <TD ALIGN="CENTER">3<SUP>rd</SUP> of 7)</TD></TR>
</TABLE>


<HR ALIGN=LEFT WIDTH=25% SIZE=1 NOSHADE>
<A NAME="T71"></A>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1)</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Includes
the rating assigned, the agency&#146;s characterization of the rating and the position of
the rating in the applicable agency&#146;s rating scale.  </P></TD>
</TR>
</TABLE>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ratings are reviewed
routinely by the rating agencies and may be changed at their discretion.  </P>



<P ALIGN="CENTER">42 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="IK"></A>
<P ALIGN="LEFT"><B>K. Miscellaneous</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portions of
CIGNA&#146;s insurance business are seasonal in nature. Reported claims under
group health products are generally higher in the first quarter. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA and its
principal subsidiaries are not dependent on business from one or a few
customers. No customer accounted for 10% or more of CIGNA&#146;s consolidated
revenues in 2002. CIGNA and its principal subsidiaries are not dependent on
business from one or a few brokers or agents. In addition, CIGNA&#146;s
insurance businesses are generally not committed to accept a fixed portion of
the business submitted by independent brokers and agents, and generally all such
business is subject to its approval and acceptance. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA had
approximately 41,200, 44,600, and 43,200 employees as of December 31, 2002, 2001
and 2000, respectively. </P>

<A NAME="I2"></A>
<P ALIGN="LEFT"><B>Item 2. <I>PROPERTIES</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
headquarters are located in approximately 50,000 square feet of leased office
space at One Liberty Place, Philadelphia, Pennsylvania. CIGNA Group Insurance,
CIGNA International, portions of CIGNA HealthCare and CIGNA&#146;s staff support
operations are located in leased premises of approximately 635,000 square feet
at Two Liberty Place, Philadelphia. CIGNA HealthCare is the primary occupant of
a complex of buildings owned by CIGNA, aggregating approximately 1.4 million
square feet of office space, located at 900-950 Cottage Grove Road, Bloomfield,
Connecticut. CIGNA Retirement &amp; Investment Services leases approximately
336,000 square feet at 280 Trumbull Street, Hartford, Connecticut and
approximately 35,000 square feet at Four Times Square, New York, New York. In
addition, CIGNA owns or leases office buildings, or parts thereof, throughout
the United States and in other countries. For additional information concerning
leases and property, see Notes 2(H) and 18 to CIGNA&#146;s 2002 Financial
Statements included in its Annual Report. This paragraph does not include
information on investment properties. </P>

<A NAME="I3"></A>
<P ALIGN="LEFT"><B>Item 3. <I>LEGAL PROCEEDINGS</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Various CIGNA
entities are defendants in several proposed class action lawsuits brought in
federal court against the managed care industry by physicians and members of
health plans. The lawsuits allege violations under one or more of the Employment
Retirement Income Security Act (&#147;ERISA&#148;), the Racketeer Influenced and
Corrupt Organizations Act (&#147;RICO&#148;) and various state laws. They
challenge, in general terms, the mechanisms used by managed care companies in
connection with the delivery of or payment for health care services. The
complaints seek injunctive relief, unspecified damages (subject, in the case of
RICO, to trebling) and attorneys&#146; fees. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These federal
cases against the Company are<I> Shane v. Humana, Inc., et al. </I>(CIGNA
subsidiaries added as defendants in August 2000), <I>Mangieri v. CIGNA
Corporation </I>&nbsp;(filed December 7, 1999 in the United States District Court for
the Northern District of Alabama), and<I> Pickney v. CIGNA Corporation and CIGNA
Health Corporation </I>(filed November 22, 1999, in the United States District
Court for the Southern District of Mississippi)<I>. </I>Plaintiffs in the
<I>Shane</I> and <I>Mangieri</I> cases are physicians, and in the <I>Pickney
</I>case, a health plan subscriber. These cases were transferred to the United
States District Court for the Southern District of Florida, along with other
cases against other managed care companies and similar cases subsequently filed
against the Company in other federal courts, for consolidated pretrial
proceedings. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On September 26,
2002, the United States District Court for the Southern District of Florida
denied class action certification to the health plan subscriber plaintiffs in
the consolidated<I> Pickney </I>case, and certified a class of physician
plaintiffs in the consolidated <I>Shane</I> and <I>Mangieri</I> cases. The U.S.
Court of Appeals for the Eleventh Circuit has granted the defendant&#146;s
request for review of the decision to certify the physician class. The</P>


<P ALIGN="CENTER">43  </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT">plaintiff&#146;s request for reconsideration of the denial of class
status to the subscriber class was denied by the district court, and the plaintiffs did
not appeal.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company was
also a defendant in similar state court cases. On March 29, 2001, a trial judge
in Madison County, Illinois certified a class of providers in <I>Kaiser and
Corrigan v. CIGNA Corporation, et al.</I>, a case alleging breach of contract
and seeking increased reimbursements. An Amended Complaint in <I>Kaiser</I>
included federal claims under ERISA and RICO, and the case was removed to
federal court in Illinois, where a settlement agreement between the parties was
filed on November 26, 2002. If approved, the agreement will encompass most of
the claims brought on behalf of health care providers asserted in other state
and federal jurisdictions, including the <I>Shane </I>and <I>Mangieri</I> cases.
On February 21, 2003 the Judicial Panel for Multidistrict Litigation ordered the Illinois case to be transferred to the Florida federal court,
which will decide whether the settlement should be approved.
In connection with the <I>Kaiser</I> matter, CIGNA recognized an after-tax
charge of $50 million ($77 million pre-tax) in the fourth quarter of 2002. As this matter has not been
resolved, adjustments to this amount in future periods are possible. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Department
of Justice and Office of Inspector General of the Department of Health and Human
Services investigated a subsidiary of CIGNA, Lovelace Health Systems, Inc.
(&#147;Lovelace&#148;) regarding Medicare cost reporting practices for the years
1990 through 1999. Medicare cost reports form the basis for reimbursements to
Lovelace by the Centers for Medicare and Medicaid Services for Medicare covered
services that Lovelace provides to eligible individuals. In 2002, CIGNA
increased reserves for this matter by $9 million after-tax ($14 million
pre-tax). This matter was resolved on December 4, 2002 by a settlement agreement
between the parties. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The U.S.
Attorney&#146;s Office for the Eastern District of Pennsylvania is investigating
compliance with federal laws in connection with pharmaceutical companies&#146;
marketing practices and their impact on prices paid by the government to
pharmaceutical companies for products under federal health programs. As part of
this investigation, CIGNA is responding to subpoenas concerning contractual
relationships between pharmaceutical companies and CIGNA&#146;s health care
operations. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October 25,
2002, the Securities and Exchange Commission notified CIGNA that it has opened
an informal inquiry into matters relating to CIGNA. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Several
purported class action lawsuits have been filed against CIGNA and certain of its
officers by individuals who seek to represent a class of purchasers of CIGNA
securities from May 2, 2001 to October 24, 2002. The complaints allege, among
other things, that the defendants violated SEC Rule 10b-5 by misleading CIGNA
shareholders with respect to the company&#146;s performance during the class
period. Another purported class action lawsuit has been filed against CIGNA and
certain officers by an individual who seeks to represent a class of participants
in the CIGNA 401(k) Plan who allegedly suffered losses on investments in CIGNA
stock from May 2, 2001 to the present. The complaint asserts, among other
things, that the same actions alleged in the shareholder suits violated ERISA.
The complaints have been filed in the United States District Court for the
Eastern District of Pennsylvania by the following individual plaintiffs on the
dates indicated: Edward Kaminski (October 25, 2002); Jeffrey Lubin (October 29,
2002); Jean Mullin (October 29, 2002); Janis Dolan (October 31, 2002); Harvard
Kolm (November 1, 2002); Joseph G. Blandford (December 6, 2002); Jeremy Schiff
(December 13, 2002); and Donna Huntsman (February 4, 2003, the ERISA suit).
Plaintiffs seek compensatory damages and attorneys&#146; fees and, in the ERISA
suit, injunctive relief. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On November 7,
2002, a purported shareholder derivative complaint nominally on behalf of CIGNA
was filed in the United States District Court for the Eastern District of
Pennsylvania by Evelyn Hobbs. The </P>



<P ALIGN="CENTER">44 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT">complaint alleges breaches of fiduciary duty by CIGNA&#146;s directors,
including, among other things, their &#147;failure to monitor, investigate and oversee
Cigna&#146;s management information system&#148;&nbsp;and seeks compensatory and punitive
damages. A similar complaint, filed on November 19, 2002 in the New Castle County
(Delaware) Chancery Court by Jack Scott has been dismissed by the plaintiff and refiled
in the United States District Court for the Eastern District of Pennsylvania so it can be
consolidated with the <I>Hobbs</I>&nbsp;case and the shareholder cases.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December 18,
2001, Janice Amara filed a purported class action lawsuit in the United States
District Court for the District of Connecticut against CIGNA Corporation and the
CIGNA Pension Plan on behalf of herself and other similarly situated
participants in the CIGNA Pension Plan who earned certain Plan benefits prior to
1998. The plaintiffs allege, among other things, that the Plan violated ERISA by
impermissibly conditioning certain post-1997 benefit accruals on the amount of
pre-1998 benefit accruals, and that these conditions are not adequately
disclosed to plan participants. The plaintiffs were granted class certification
on December 20, 2002, and seek equitable relief. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA is
routinely involved in numerous lawsuits and other legal matters arising, for the
most part, in the ordinary course of the business of administering and insuring
employee benefit programs. An increasing number of claims are being made for
substantial non-economic, extra-contractual or punitive damages. The outcome of
litigation and other legal matters is always uncertain, and outcomes that are
not justified by the evidence can occur. CIGNA believes that it has valid
defenses to the legal matters pending against it and is defending itself
vigorously. Nevertheless, it is possible that resolution of one or more of the
legal matters currently pending or threatened could result in losses material to
CIGNA&#146;s consolidated results of operations, liquidity or financial
condition. </P>

<A NAME="I4"></A>
<P ALIGN="LEFT"><B>Item 4. <I>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</I></B></P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </P>

<A NAME="OFFICERS"></A>
<P ALIGN="LEFT"><B>Executive Officers of the Registrant</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All officers are
elected to serve for a one-year term or until their successors are elected.
Principal occupations and employment during the past five years are listed. </P>

<P ALIGN="LEFT">ANDREA ANANIA, 50, Executive Vice President, Systems, beginning
February 2001; Chief Information Officer since 1998; Senior Vice President,
Systems, from 1998 until February 2001; and Senior Vice President, Operations
and Technology, of CIGNA Retirement and Investment Services from 1996 until
1998. </P>

<P ALIGN="LEFT">MICHAEL W. BELL, 39, Executive Vice President and Chief
Financial Officer of CIGNA beginning December 2002; Chief Financial
Officer-elect from October 2002 until December 2002; President of CIGNA Group
Insurance from July 2000 until October 2002; and Vice President of CIGNA
Corporate Accounting and Planning from February 1997 until July 2000. </P>

<P ALIGN="LEFT">H. EDWARD HANWAY, 51, Chairman of CIGNA since December 2000;
Chief Executive Officer of CIGNA since January 2000; President and a Director of
CIGNA since January 1999; Chief Operating Officer of CIGNA from January 1999
until January 2000; and President of CIGNA HealthCare from February 1996 until
January 1999. </P>

<P ALIGN="LEFT">TERRY L. KENDALL, 56, President of CIGNA International since
January 1999; Senior Vice President of CIGNA International from May 1998 until
January 1999; and President and Chief Executive Officer of Golden American Life
Insurance Company from September 1993 until April 1998. Golden American Life
Insurance Company is a subsidiary of ING Group, a financial services company. </P>

<P ALIGN="LEFT">JOHN Y. KIM, 42, President of CIGNA Retirement and Investment
Services since February 2002; President and Chief Executive </P>


<P ALIGN="CENTER">45 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="LEFT">Officer of BondBook LLC from January 2001 until February 2002; and
President and Chief Executive Officer and Chief Investment Officer of Aeltus Investment
Management from October 1995 until January 2001. BondBook LLC was an electronic corporate
bond trading firm. Aeltus Investment Management is an investment management subsidiary of
ING Group.  </P>

<P ALIGN="LEFT">DONALD M. LEVINSON, 57, Executive Vice President of CIGNA since 1988,
with responsibility for Human Resources and Services. </P>

<P ALIGN="LEFT">ROBERT G. ROMASCO, 55, Executive Vice President and Chief
Marketing Officer beginning February 2002; President and Chief Executive Officer
of JCPenney Direct Marketing Services from January 1999 until June 2001; Senior
Vice President, Corporate Marketing of American Century Investments from
September 1993 to July 1998. JCPenney Direct Marketing Services is a provider of
life and supplemental insurance products and consumer service programs. American
Century Investments is a financial services company. </P>

<P ALIGN="LEFT">JUDITH E. SOLTZ, 56, Executive Vice President and General
Counsel beginning February 2001; Senior Vice President and Associate General
Counsel, 1998 until February 2001; and Vice President, Corporate Tax, 1990 until
1998. </P>

<P ALIGN="LEFT">PATRICK E. WELCH, 56, President of CIGNA HealthCare beginning
May 2002; and Chairman, President and Chief Executive Officer of National Life
Insurance Company from February 1997 until May 2002. National Life Insurance
Company is a financial services company. </P>

<P ALIGN="LEFT">GREGORY H. WOLF, 46, President of CIGNA Group Insurance beginning October
2002; President of CIGNA Small Case Business Development from September 2001 until
October 2002; Chairman and Chief Executive Officer of nextHR.com from January 2000 until
July 2001; and President, Chief Executive Officer and Director of Humana, Inc. from
December 1997 until August 1999. Humana, Inc. is a provider of managed health care
products and services. </P>

<A NAME="PII"></A>
<P ALIGN="CENTER"><B>PART II</B> </P>

<A NAME="II5"></A>
<P ALIGN="LEFT"><B>Item 5. <I>MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
under the caption &#147;Quarterly Financial Data &#151; Stock and Dividend
Data&#148; and under the caption &#147;Stock Listing&#148; in CIGNA&#146;s Annual Report is incorporated by reference, as
is the information from Note 11 to CIGNA&#146;s 2002 Financial Statements and
the number of shareholders of record as of December 31, 2002 under the caption
&#147;Highlights&#148; in CIGNA&#146;s Annual Report. </P>

<A NAME="II6"></A>
<P ALIGN="LEFT"><B>Item 6. <I>SELECTED FINANCIAL DATA</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The five-year
financial information under the caption &#147;Highlights&#148; in
CIGNA&#146;s Annual Report is incorporated by reference. </P>

<A NAME="II7"></A>
<P ALIGN="LEFT"><B>Item 7. <I>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS</I></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
contained in the MD&amp;A Section of CIGNA&#146;s Annual Report is incorporated by
reference. </P>

<A NAME="II7A"></A>
<P ALIGN="LEFT"><B>Item 7A. <I>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
under the caption &#147;Market Risk of Financial Instruments&#148; in the MD&amp;A section of CIGNA&#146;s Annual Report is incorporated by reference. </P>

<A NAME="II8"></A>
<P ALIGN="LEFT"><B>Item 8. <I>FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CIGNA&#146;s
Consolidated Financial Statements and the report of its
independent accountants in CIGNA&#146;s Annual Report are
incorporated by reference, as is the unaudited information set forth under the
caption &#147;Quarterly Financial Data &#151;Consolidated Results&#148;. </P>

<P ALIGN="CENTER">46 </P>


<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="II9"></A>
<P ALIGN="LEFT"><B>Item 9. <I>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE</I></B> </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </P>

<A NAME="III"></A>
<P ALIGN="CENTER"><B>PART III</B> </P>

<A NAME="III10"></A>
<P ALIGN="LEFT"><B>Item 10. <I>DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT</I></B></P>

<A NAME="III10A"></A>
<P ALIGN="LEFT"><B>A. Directors of the Registrant</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
under the captions &#147;Management&#146;s nominees for terms to expire in April
2005&#148; and &#147;Directors who will continue in office&#148; in CIGNA&#146;s
proxy statement to be dated on or about March 21, 2003 is incorporated by reference. </P>

<A NAME="III10B"></A>
<P ALIGN="LEFT"><B>B. Executive Officers of the Registrant</B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See PART I
&#150; &#147;Executive Officers of the Registrant.&#148; </P>

<A NAME="III11"></A>
<P ALIGN="LEFT"><B>Item 11. <I>EXECUTIVE COMPENSATION</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
under the captions &#147;Executive Compensation&#148; and &#147;Non-employee
director compensation&#148; in CIGNA&#146;s proxy statement to be dated on or about March
21, 2003 is incorporated by reference. </P>



<P ALIGN="CENTER">47 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="III12"></A>
<P ALIGN="LEFT"><B>Item 12. <I>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
under the captions &#147;Stock held by directors and executive officers as of
January 31, 2003&#148; and &#147;Largest Security Holders&#148; in CIGNA&#146;s
proxy statement to be dated  on or about March 21, 2003 is incorporated by reference. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table
presents information regarding CIGNA&#146;s equity compensation plans as of December 31,
2002:  </P>





<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="800">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"><B>Plan category</B> &nbsp;</TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>   Number of    <br>securities to be<br>  issued upon   <br>  exercise of
<br>  outstanding   <br>   options,     <br> warrants and   <br>    rights      <br> (a)  </B></TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>
Weighted-average<BR>exercise price <BR> of outstanding <BR>
options, <BR> warrants and <BR> rights <BR> (b)  </B>

</TD>
     <TD COLSPAN="3" ALIGN="CENTER"><B>Number of<BR> securities<BR> remaining available<BR>for future issuance<BR>
under equity<BR>compensation plans<BR> (excluding<BR>     securities reflected<BR>
                   in column (a))<BR>(c)</B></TD></TR>
<TR>
     <TD COLSPAN="12"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="40%" ALIGN="LEFT"></TD>     <TD WIDTH="1%" ALIGN="LEFT"></TD>     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD>   <TD WIDTH="16%" ALIGN="RIGHT"></TD>        <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD>   <TD WIDTH="16%" ALIGN="RIGHT"></TD>        <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD>   <TD WIDTH="16%" ALIGN="RIGHT"></TD>        <TD WIDTH="7%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">Equity compensation plans   <BR> approved by security holders</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> 14,354,000 </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> $ 88.71</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> 13,381,000 </TD>
        <TD ALIGN="LEFT"><SUP><A HREF="#I121">(1)</A></SUP></TD></TR>
<TR>
     <TD COLSPAN="12"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">Equity compensation plans not   <BR> approved by security holders</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> 0 </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> N/A</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> N/A</TD>
        <TD ALIGN="LEFT"><SUP><A HREF="#I122">(2)</A></SUP></TD></TR>
<TR>
     <TD COLSPAN="12"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> 14,354,000 </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> $ 88.71</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD><TD ALIGN="RIGHT"> 13,381,000 </TD>
        <TD ALIGN="LEFT"><SUP><A HREF="#I121">(1)</A></SUP><SUP><A HREF="#I122">(2)</A></SUP></TD></TR>
<TR>
     <TD COLSPAN="12"><HR NOSHADE SIZE="1"></TD></TR>
</TABLE>

<A NAME="I121"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">New
directors of CIGNA are entitled to receive 4,500 restricted shares of CIGNA common stock, which
shares do not reduce the number of shares available for future issuance under any equity
compensation plan.  </P></TD>
</TR>
</TABLE>
<A NAME="I122"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(2)</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Pursuant
to the Stock Compensation Plan for Non-Employee Directors of CIGNA Corporation described
below, no maximum number of shares has been authorized for issuance under this
plan. In 2002, 1,100 shares were issued under this plan. </P></TD>
</TR>
</TABLE>

<P ALIGN="LEFT"><I>Description of Equity Compensation Plan Adopted Without
Shareholder Approval</I></P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Stock Compensation
Plan for Non-Employee Directors of CIGNA Corporation provides that at least half of each
director&#146;s annual retainer for board service must be paid in shares of CIGNA common
stock or common stock equivalents. The balance of the annual retainer, and any other
retainer or fee received for board service, may be paid in cash, CIGNA common stock, common
stock equivalents or deferred cash compensation.  </P>


<A NAME="III13"></A>
<P ALIGN="LEFT"><B>Item 13. <I>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
under the caption &#147;Transactions with affiliates&#148; in CIGNA&#146;s proxy
statement to be dated  on or about March 21, 2003 is incorporated by reference. </P>


<P ALIGN="CENTER">48 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="III14"></A>
<P ALIGN="LEFT"><B>Item 14. <I>CONTROLS AND PROCEDURES</I></B></P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on an
evaluation of the effectiveness of the design and operation of CIGNA&#146;s
disclosure controls and procedures that occurred within 90 days prior to the
filing of this report, CIGNA&#146;s Chief Executive Officer and Chief Financial
Officer concluded that CIGNA&#146;s disclosure controls and procedures are an
effective means of ensuring that all material information required to be
disclosed in this annual report has been made known to them. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been
no significant changes in CIGNA&#146;s internal controls or in other factors
that could significantly affect internal controls subsequent to date of the
evaluation referred to in this Item 14. </P>

<A NAME="IV"></A>
<P ALIGN="CENTER"><B>PART IV</B> </P>

<A NAME="IV15"></A>
<P ALIGN="LEFT"><B>Item 15. <I>EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K</I></B> </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. (1) The following
financial statements have been incorporated by reference from CIGNA's Annual Report: </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated
Statements of Income for the years ended December 31, 2002, 2001 and 2000. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance
Sheets as of December 31, 2002 and 2001. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated
Statements of Comprehensive Income and Changes in Shareholders&#146; Equity for
the years ended December&nbsp;31, 2002, 2001 and 2000. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated
Statements of Cash Flows for the years ended December 31, 2002, 2001 and 2000. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes to the Financial
Statements. </P>



<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Report of Independent
Accountants, PricewaterhouseCoopers LLP. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
financial statement schedules are listed in the Index to Financial Statement
Schedules on <A HREF="#FS1">page FS-1</A>. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The exhibits are
listed in the Index to Exhibits beginning on <A HREF="#E1">page E-1</A>. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. During the
last quarter of the fiscal year ended December 31, 2002, the registrant filed a
Report on Form 8-K dated October 18, 2002 regarding a third quarter charge
related to run-off reinsurance operations, a Report on Form 8-K dated October
24, 2002 preannouncing its third quarter results and revising its 2002 outlook,
a Report on Form 8-K dated October 25, 2002 providing its 2003 outlook and
announcing a October 28 conference call; a Report on Form 8-K dated November 1,
2002 reporting its third quarter 2002 results; a Report on Form 8-K dated
November 26, 2002 announcing CIGNA HealthCare&#146;s agreement with physicians
to improve relations and end lawsuits; a Report on Form 8-K dated December 3,
2002 regarding Regulation FD disclosure; a Report on Form 8-K dated December 9,
2002 regarding Regulation FD disclosure, a Report on Form 8-K dated December 12,
2002 regarding Regulation FD disclosure, and a Report on Form 8-K dated December
20, 2002 regarding Regulation FD disclosure. </P>


<P ALIGN="CENTER">49 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="SIG"></A>
<P ALIGN="CENTER"><B>SIGNATURES</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by its undersigned, thereunto duly
authorized.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%">Date: February 28, 2003</TD>
     <TD WIDTH="4%">&nbsp;</TD>
     <TD WIDTH="46%">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD></TD><TD COLSPAN="1">CIGNA Corporation</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD> </TD>
     <TD>By: /s/ Michael W. Bell<BR><HR NOSHADE SIZE="1" ALIGN="LEFT" WIDTH="75%"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD>Michael W. Bell<BR>Executive Vice President and<BR>Chief Financial Officer<BR>
(Principal Financial Officer)</TD></TR>
</TABLE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the
requirements of the Securities Exchange Act of 1934, this report has been signed
below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%">&nbsp;</TD>
     <TD WIDTH="4%">&nbsp;</TD>
     <TD WIDTH="46%">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD><B>Principal Executive Officer: </B></TD>
     <TD COLSPAN="2"><B>Directors:*</B></TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>H. Edward Hanway*</TD>
     <TD COLSPAN="2">Robert H. Campbell</TD></TR>
<TR VALIGN="TOP">
     <TD>Chairman, Chief Executive Officer</TD>
     <TD COLSPAN="2">Fred Hassan</TD></TR>
<TR VALIGN="TOP">
     <TD>and a Director</TD>
     <TD COLSPAN="2"> Peter N. Larson</TD></TR>
<TR VALIGN="TOP">
     <TD>  </TD>
     <TD COLSPAN="2">Joseph M. Magliochetti</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2">Joseph Neubauer</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD COLSPAN="2">Charles R. Shoemate</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD COLSPAN="2">Louis W. Sullivan, M.D.</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD COLSPAN="2">Harold A. Wagner</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2">Carol Cox Wait</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2">Marilyn Ware</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2"></TD></TR>
<TR VALIGN="TOP">
     <TD><B>Principal Accounting Officer:</B></TD>
     <TD COLSPAN="2"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2"> </TD></TR>
<TR VALIGN="TOP">
     <TD>/s/ James A. Sears<HR NOSHADE SIZE="1" ALIGN="LEFT" WIDTH="75%"></TD>
     <TD COLSPAN="2">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>James A. Sears</TD>
     <TD COLSPAN="2">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>Vice President and </TD>
     <TD COLSPAN="2">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>Chief Accounting Officer</TD>
     <TD COLSPAN="2">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>Date: February 28, 2003</TD>
     <TD COLSPAN="2">&nbsp;</TD></TR>

<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>*By:&nbsp;</TD>
     <TD>&nbsp;&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD></TD>
     <TD>/s/ Carol J. Ward<BR><HR NOSHADE SIZE="1" ALIGN="LEFT" WIDTH="75%"></TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>Carol J. Ward</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD> Attorney-in-Fact</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD> Date: February 28, 2003</TD></TR>
</TABLE>
<BR><BR>

<P ALIGN="CENTER">50 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="CERT"></A>
<P ALIGN="CENTER"><B>CERTIFICATIONS</B> </P>

<P ALIGN="LEFT">I, H. EDWARD HANWAY, certify that: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">1. </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">I
have reviewed this annual report on Form 10-K of CIGNA Corporation; </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">2.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Based
on my knowledge, this annual report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading with respect to
the period covered by this annual report;  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">3.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Based
on my knowledge, the financial statements, and other financial information included in
this annual report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods
presented in this annual report;  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">4.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">The
registrant&#146;s other certifying officers and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14
and 15d-14) for the registrant and have:  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">a)</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">designed
such disclosure controls and procedures to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this annual report is
being prepared;  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">b)</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">evaluated
the effectiveness of the registrant&#146;s disclosure controls and procedures as of a
date within 90 days prior to the filing date of this annual report (the &#147;Evaluation
Date&#148;); and  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">c) </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">presented
in this annual report our conclusions about the effectiveness of the disclosure controls
and procedures based on our evaluation as of the Evaluation Date; </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">5.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">The
registrant&#146;s other certifying officers and I have disclosed, based on our most
recent evaluation, to the registrant&#146;s auditors and the audit committee of registrant&#146;s
board of directors (or persons performing the equivalent function):  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">a) </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">all
significant deficiencies in the design or operation of internal controls which could
adversely affect the registrant&#146;s ability to record, process, summarize and report
financial data and have identified for the registrant&#146;s auditors any material
weaknesses in internal controls; and  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">b) </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">any
fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant's internal controls; and </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">6.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">The
registrant&#146;s other certifying officers and I have indicated in this annual report
whether or not there were significant changes in internal controls or in other factors
that could significantly affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.  </P></TD>
</TR>
</TABLE>
<br>
<br>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%">Date: February 28, 2003</TD>
     <TD WIDTH="4%">&nbsp;</TD>
     <TD WIDTH="46%">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD> &nbsp; </TD>
     <TD>/s/ H. Edward Hanway<BR><HR NOSHADE SIZE="1" ALIGN="LEFT" WIDTH="75%"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD>Title: Chief Executive Officer</TD></TR>
</TABLE>


<P ALIGN="CENTER">51 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="CENTER"><B>CERTIFICATIONS</B> </P>

<P ALIGN="LEFT">I, MICHAEL W. BELL, certify that: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">1. </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">I
have reviewed this annual report on Form 10-K of CIGNA Corporation; </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">2.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Based
on my knowledge, this annual report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in light of
the circumstances under which such statements were made, not misleading with respect to
the period covered by this annual report;  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">3.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Based
on my knowledge, the financial statements, and other financial information included in
this annual report, fairly present in all material respects the financial condition,
results of operations and cash flows of the registrant as of, and for, the periods
presented in this annual report;  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">4.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">The
registrant&#146;s other certifying officers and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14
and 15d-14) for the registrant and have:  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">a) </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">designed
such disclosure controls and procedures to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this annual report is
being prepared;  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">b) </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">evaluated
the effectiveness of the registrant&#146;s disclosure controls and procedures as of a
date within 90 days prior to the filing date of this annual report (the &#147;Evaluation
Date&#148;); and  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">c) </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">presented
in this annual report our conclusions about the effectiveness of the disclosure controls
and procedures based on our evaluation as of the Evaluation Date; </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">5.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">The
registrant&#146;s other certifying officers and I have disclosed, based on our most
recent evaluation, to the registrant&#146;s auditors and the audit committee of registrant&#146;s
board of directors (or persons performing the equivalent function):  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">a)</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">all
significant deficiencies in the design or operation of internal controls which could
adversely affect the registrant&#146;s ability to record, process, summarize and report
financial data and have identified for the registrant&#146;s auditors any material
weaknesses in internal controls; and  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">b)</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">any
fraud, whether or not material, that involves management or other employees who have a
significant role in the registrant&#146;s internal controls; and  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">6.</TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">The
registrant&#146;s other certifying officers and I have indicated in this annual report
whether or not there were significant changes in internal controls or in other factors
that could significantly affect internal controls subsequent to the date of our most
recent evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.  </P></TD>
</TR>
</TABLE>
<br>
<br>
<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TD WIDTH="50%">Date: February 28, 2003</TD>
     <TD WIDTH="4%">&nbsp;</TD>
     <TD WIDTH="46%">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD> &nbsp; </TD>
     <TD>/s/ Michael W. Bell<BR><HR NOSHADE SIZE="1" ALIGN="LEFT" WIDTH="75%"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD>Title: Chief Financial Officer</TD></TR>
</TABLE>

<P ALIGN="CENTER">52 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="FS1"></A>
<P ALIGN="CENTER"><B>CIGNA CORPORATION AND SUBSIDIARIES</B> </P>

<P ALIGN="CENTER"><B>INDEX TO FINANCIAL STATEMENT SCHEDULES</B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"><U>PAGE</U></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="90%" ALIGN="LEFT"><A HREF="#FS2">Report of Independent Accountants on Financial Statement Schedules</A></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><A HREF="#FS2">FS-2</A></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"><B>Schedules</B></TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#FS3">I</A>&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#FS3">Summary of Investments &#151;
Other Than Investments in Related Parties as of December 31, 2002</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#FS3">FS-3</A></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#FS4">II</A>&nbsp;&nbsp;
<A HREF="#FS4">Condensed Financial Information of CIGNA Corporation (Registrant)</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#FS4">FS-4</A></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#FS10">III</A>&nbsp;
<A HREF="#FS10">Supplementary Insurance Information</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#FS10">FS-10</A></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#FS12">IV</A>&nbsp;&nbsp;<A HREF="#FS12">Reinsurance</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#FS12">FS-12</A></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A HREF="#FS13">V</A>&nbsp;&nbsp;
<A HREF="#FS13">Valuation and Qualifying Accounts and Reserves</A></TD>
     <TD ALIGN="RIGHT"><A HREF="#FS13">FS-13</A></TD></TR>
</TABLE>


     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schedules other
than those listed above are omitted because they are not required or are not
applicable, or the required information is shown in the financial statements or
notes thereto, which are incorporated by reference from CIGNA&#146;s Annual
Report. </P>


<P ALIGN="CENTER">FS-1 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="FS2"></A>
<P ALIGN="CENTER"><B>Report of Independent Accountants on <BR>
Financial Statement Schedules</B></P>



<P ALIGN="LEFT"><B>To the Board of Directors<BR>
of CIGNA Corporation</B></P>

<P ALIGN="LEFT">Our audits of the consolidated financial statements referred to in our
report dated February&nbsp;6, 2003 appearing in the 2002 Annual Report to Shareholders of
CIGNA Corporation (which report and consolidated financial statements are incorporated by
reference in this Annual Report on Form 10-K) also included an audit of the Financial
Statement Schedules listed in the index on page FS-1 of this Form 10-K. In our opinion,
these Financial Statement Schedules present fairly, in all material respects, the
information set forth therein when read in conjunction with the related consolidated
financial statements.  </P>

<P ALIGN="LEFT">As discussed in Note 2 to the consolidated financial statements referred
to above, the Company adopted Statement of Financial Accounting Standards No. 142, &#147;Goodwill
and Other Intangible Assets,&#148;&nbsp;effective January 1, 2002.  </P>

<P ALIGN="LEFT">/s/ PricewaterhouseCoopers LLP<BR>
Philadelphia, Pennsylvania<BR>
February 6, 2003</P>



<P ALIGN="CENTER">FS-2 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="FS3"></A>
<P ALIGN="CENTER"><B>CIGNA CORPORATION AND SUBSIDIARIES</B> </P>

<P ALIGN="CENTER"><B>SCHEDULE I<BR>
SUMMARY OF INVESTMENTS &#151; OTHER THAN INVESTMENTS IN RELATED PARTIES <BR>
DECEMBER 31, 2002<BR>
(In millions)</B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"><FONT SIZE="-1"><B>Type of</B><B> <BR>Investment</B></FONT></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Cost</B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Fair<BR>Value</B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Amount at<BR>which shown<BR>in the<BR>consolidated<BR>balance sheet</B></FONT></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="1" ALIGN="LEFT"><HR NOSHADE SIZE="1"></TD><TD></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="60%" ALIGN="LEFT">Fixed maturities:</TD>
     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="9%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="9%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="9%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Bonds:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States government and government</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;agencies and authorities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 956</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,197</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,197</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;States, municipalities and political subdivisions</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,612</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,761</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,761</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign governments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">751</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">825</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">825</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public utilities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,708</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,761</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,761</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other corporate bonds</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">14,833</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">15,945</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">15,945</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Asset-backed securities:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United States government agencies,</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;mortgage-backed</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,638</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,669</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,669</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other mortgage-backed</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,158</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,265</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,265</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other asset-backed</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,205</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,290</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,290</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Redeemable preferred stocks</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">87</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">90</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">90</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">25,948</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">27,803</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">27,803</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Equity securities:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Common stocks:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industrial, miscellaneous and all other</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">209</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">258</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">258</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Banks, trust and insurance companies</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">17</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">25</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">25</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public utilities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Non-redeemable preferred stocks</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity securities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">239</TD>        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">295</TD>        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">295</TD>        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Mortgage loans on real estate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">8,729</TD>        <TD ALIGN="LEFT">&nbsp;</TD>
<TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">8,729</TD>        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Policy loans</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,405</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
<TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,405</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Real estate investments (including $94 million of</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;real estate acquired in satisfaction of debt)</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">253</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
<TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">253</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Other long-term investments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">791</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
<TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">791</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Short-term investments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">86</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
<TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">86</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 38,451</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
<TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 40,362</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

</TABLE>

<P ALIGN="CENTER">FS-3 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="FS4"></A>

<P ALIGN="CENTER"><B>CIGNA CORPORATION AND SUBSIDIARIES</B> </P>

<P ALIGN="CENTER"><B>SCHEDULE II<BR>
CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION<BR>
(REGISTRANT)<BR>
STATEMENTS OF INCOME<BR>
(In millions)</B> </P>


<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="8" ALIGN="CENTER"><B>For the year ended<BR>December 31,</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="8" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="63%" ALIGN="LEFT">Intercompany income</TD>
     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="7%" ALIGN="RIGHT">     -</TD>
        <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="7%" ALIGN="RIGHT">     1</TD>
        <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="7%" ALIGN="RIGHT"> 1</TD>
        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Total revenues</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Operating expenses:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Interest</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">120</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">117</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">102</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Intercompany interest</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">95</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">176</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">258</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Other</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(4</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">24</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">211</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">317</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">372</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Loss before income taxes</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(211</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(316</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(371</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Income tax benefit</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(68</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(98</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(98</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Loss of parent company</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(143</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(218</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(273</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Equity in income (loss) of subsidiaries from</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;continuing operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(254</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,189</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,254</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Income (loss) from continuing operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(397</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">971</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">981</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Income (loss) from discontinued operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(1</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">18</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Net income (loss)</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> (398</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 989</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 987</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

</TABLE>



<P ALIGN="CENTER">See Notes to Condensed Financial Statements on pages <A HREF="#FS7">FS-7</A> and <A HREF="#FS8">FS-8. </A></P>








<P ALIGN="CENTER">FS-4 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>





<P ALIGN="CENTER"><B>CIGNA CORPORATION AND SUBSIDIARIES</B> </P>

<P ALIGN="CENTER"><B>SCHEDULE II<BR>
CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION<BR>
(REGISTRANT)<BR>
BALANCE SHEETS<BR>
(In millions)</B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="6"></TD>
     <TD COLSPAN="8" ALIGN="CENTER"><B>As of December 31,</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="8" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="52%" ALIGN="LEFT">Assets:</TD>
     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Cash and cash equivalents</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Investments in subsidiaries from continuing</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10,818</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">11,491</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Other assets</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">443</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">129</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Net assets of discontinued operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">125</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">117</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 11,387</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 11,738</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Liabilities:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Intercompany</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,040</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,463</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Short-term debt</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">126</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">36</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Long-term debt</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,500</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,626</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Other liabilities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,854</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">558</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7,520</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6,683</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Shareholders' Equity:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Common stock (shares issued, 273; 271)</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">68</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">68</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Additional paid-in capital</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,212</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,093</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Net unrealized appreciation -- fixed maturities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 512</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 189</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Net unrealized appreciation -- equity securities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">26</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">50</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Net unrealized appreciation -- derivatives</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Net translation of foreign currencies</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(32</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(26</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Minimum pension liability adjustment</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(714</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(76</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
</TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(loss)</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(202</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">147</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Retained earnings</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9,299</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9,882</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Less treasury stock, at cost</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(8,510</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(8,135</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,867</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5,055</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and shareholders' equity</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 11,387</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"> </TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 11,738</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>




<P ALIGN="CENTER">See Notes to Condensed Financial Statements on pages <A HREF="#FS7">FS-7</A> and <A HREF="#FS8">FS-8. </A></P>



<P ALIGN="CENTER">FS-5 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="CENTER"><B>CIGNA CORPORATION AND SUBSIDIARIES</B> </P>

<P ALIGN="CENTER"><B>SCHEDULE II<BR>
CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION<BR>
(REGISTRANT)<BR>
STATEMENTS OF CASH FLOWS<BR>
(In millions)</B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="8" ALIGN="CENTER"><B>For the year ended<BR>December 31,</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="8" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2002</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2001</B></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><B>2000</B></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="63%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="2%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="7%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Cash Flows from Operating Activities:</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Income (loss) from continuing operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> (397</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 971</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 981</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile income (loss) from continuing </TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations to net cash provided by operating activities:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in (income) loss of subsidiaries - continuing</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">254</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(1,189</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(1,254</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends received from subsidiaries - continuing</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">700</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">874</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">906</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">345</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">250</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other, net</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">14</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(50</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">14</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities of</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continuing operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">916</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">856</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">647</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Cash Flows from Investing Activities:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Capital contributions to subsidiaries - continuing</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(6</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Other, net</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">15</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">11</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities of</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continuing operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">15</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Cash Flows from Financing Activities:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Net change in intercompany debt</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(423</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">82</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,230</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Issuance of long-term debt</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">493</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Repayment of long-term debt</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(36</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(145</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(53</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Repurchase of common stock</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(355</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(1,139</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(1,696</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Issuance of common stock</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">68</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">38</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">72</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Common dividends paid</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(185</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(190</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(200</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities of</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continuing operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(931</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(861</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(647</TD>
        <TD ALIGN="LEFT">)</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Net increase in cash and cash equivalents</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Cash and cash equivalents, beginning of year</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Cash and cash equivalents, end of year</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>


<P ALIGN="CENTER">See Notes to Condensed Financial Statements on pages <A HREF="#FS7">FS-7</A> and <A HREF="#FS8">FS-8. </A></P>



<P ALIGN="CENTER">FS-6 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<A NAME="FSNOTEBEGIN"></A><A NAME="FS7"></A>
<P ALIGN="CENTER"><B>CIGNA CORPORATION AND SUBSIDIARIES</B> </P>

<P ALIGN="CENTER"><B>SCHEDULE II<BR>
CONDENSED FINANCIAL INFORMATION OF CIGNA CORPORATION<BR>
(REGISTRANT)</B> </P>

<P ALIGN="CENTER"><B>NOTES TO CONDENSED FINANCIAL STATEMENTS</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying
condensed financial statements should be read in conjunction with the
Consolidated Financial Statements and the accompanying notes thereto in the
Annual Report. </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="10%">Note 1&#151;</TD>
     <TD WIDTH="90%"><P ALIGN="LEFT">For
purposes of these condensed financial statements, CIGNA Corporation&#146;s
wholly owned subsidiaries are recorded using the equity basis of accounting. </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="10%">Note 2&#151;</TD>
     <TD WIDTH="90%"><P ALIGN="LEFT">Short-term and long-term debt consisted of the
following at December&nbsp;31: </P></TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR>
     <TD></TD>
     <TD COLSPAN="9"><HR NOSHADE SIZE="2"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="10%" ALIGN="LEFT"></TD>
     <TD WIDTH="52%" ALIGN="LEFT"><I>(In millions)</I></TD>
     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="5%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="11%" ALIGN="RIGHT">2002</TD>
        <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="11%" ALIGN="RIGHT">2001</TD>
        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD></TD>
     <TD COLSPAN="9"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;<B>Short-term</B></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;Current maturities of long-term debt</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">126</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">36</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD></TD>
     <TD COLSPAN="9"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;Total short-term debt</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT">126</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 36</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD></TD>
     <TD COLSPAN="3"><HR NOSHADE SIZE="1"></TD>
     <TD COLSPAN="6"><HR NOSHADE SIZE="2"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;<B>Long-term</B></TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;Uncollateralized debt:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;7.4% Notes due 2003</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> --</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT">100</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;6 3/8% Notes due 2006</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">100</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">100</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;7.4% Notes due 2007</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">300</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">300</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;8 1/4% Notes due 2007</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">100</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">100</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;7% Notes due 2011</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">250</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">250</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;6.375% Notes due 2011</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">250</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">250</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;7.65% Notes due 2023</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">100</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">100</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;8.3% Notes due 2023</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">17</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">17</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;7 7/8% Debentures due 2027</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">300</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">300</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;8.3% Step Down Notes due 2033</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">83</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">83</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;&nbsp;Medium-term Notes</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">--</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">26</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD></TD>
     <TD COLSPAN="9"><HR NOSHADE SIZE="1"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD></TD>
     <TD ALIGN="LEFT">&nbsp;Total long-term debt</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,500</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,626</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD></TD>
     <TD COLSPAN="3"><HR NOSHADE SIZE="1"></TD>
     <TD COLSPAN="6"><HR NOSHADE SIZE="2"></TD></TR>
</TABLE>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">CIGNA
Corporation&#146;s medium-term notes have original maturity dates ranging from
approximately eight to ten years, and interest rates ranging from 6.6% to 8.0%. The
weighted average interest rate on CIGNA&#146;s outstanding medium-term notes was 7.5% at
December 31, 2002 and 7.3% at December 31, 2001.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">CIGNA
Corporation issued the following debt securities in 2001: </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149; </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">$250
million of 7% notes due in 2011, issued in January;  </P></TD>
</TR>
</TABLE>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;  </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">$250
million of 6.375% notes due in 2011, issued in October.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">As
of December 31, 2002, CIGNA Corporation had $500 million remaining under an effective
shelf registration statement filed with the Securities and Exchange Commission, which may
be issued as debt securities, equity securities or both.  </P></TD>
</TR>
</TABLE>
<BR>


<P ALIGN="CENTER">FS-7 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="FS8"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">Maturities
of long-term debt are as follows (in millions): $126 in 2003, none in 2004 and 2005, $100
in 2006, $400 in 2007, and the remainder in years after 2007.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">Interest
paid on short- and long-term debt amounted to $120 million, $109 million and $103 million
for 2002, 2001 and 2000, respectively.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="10%">Note 3&#151;</TD>
     <TD WIDTH="90%"><P ALIGN="LEFT">As of December 31, 2002, CIGNA Corporation had guarantees and
similar agreements in place to secure payment obligations or solvency requirements of
certain wholly owned subsidiaries as follows: </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;</TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">In
March 2002, CIGNA Corporation entered into a syndicated bank letter of credit agreement
of $650 million in support of an internal reinsurance arrangement associated with
obligations of a subsidiary. This reinsurance arrangement was terminated as of July 1,
2002, and no letters of credit are currently issued under this agreement.  </P></TD>
</TR>
</TABLE>
<BR>

<br>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;  </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">CIGNA
Corporation has arranged for bank letters of credit in support of CIGNA Global
Reinsurance Company, an indirect wholly owned subsidiary, in the amount of $185 million.
These letters of credit secure the payment of insureds&#146;claims from run-off
reinsurance operations. CIGNA Corporate has agreed to indemnify the banks providing the
letters of credit in the event of any draw. As of December 31, 2002 approximately $140 million of letters of credit are issued. </P></TD>
</TR>
</TABLE>

<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;  </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">Various
indirect, wholly owned subsidiaries have obtained surety bonds in the normal course of
business. If there is a claim on a surety bond and the subsidiary is unable to pay, CIGNA
Corporation guarantees payment to the company issuing the surety bond. The aggregate
amount of such surety bonds as of December 31, 2002 was approximately $7 million.  </P></TD>
</TR>
</TABLE>
<br>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="9%"></TD>
     <TD ALIGN="LEFT" WIDTH="3%">&#149;  </TD>
     <TD WIDTH="88%"><P ALIGN="LEFT">CIGNA
Corporation also provides solvency guarantees aggregating approximately $60 million under
state and federal regulations in support of its indirect wholly owned medical HMOs in
several states.  </P></TD>
</TR>
</TABLE>
<br>
<P ALIGN="LEFT">Through December 31, 2002, no payments have been made on these guarantees
and none are pending. CIGNA Corporation provided other guarantees to subsidiaries that,
in the aggregate, do not represent a material risk to CIGNA Corporation&#146;s results of
operations, liquidity or financial condition.  </P>


<P ALIGN="CENTER">FS-8 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="CENTER">(THIS PAGE INTENTIONALLY LEFT BLANK) </P>





<P ALIGN="CENTER">FS-9 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="FS10"></A>
<P ALIGN="CENTER"><B>CIGNA CORPORATION AND SUBSIDIARIES</B> </P>

<P ALIGN="CENTER"><B>SCHEDULE III<BR>
SUPPLEMENTARY INSURANCE INFORMATION<BR>
(In millions)</B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2" ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE="-1"><B><U>Segment</U></B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Deferred<BR>policy<BR>acquisition<BR>costs</B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Future policy<BR>benefits and <BR>contractholder<BR>deposit funds</B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Unpaid<BR>claims<BR>and claim<BR>expenses</B></FONT></TD><TD></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="54%" ALIGN="LEFT">Year Ended December 31, 2001:</TD>
     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="11%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="11%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">&nbsp;</TD><TD WIDTH="11%" ALIGN="RIGHT"></TD>
        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Employee Health Care, Life and Disability Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 45</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,480</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 3,466</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Employee Retirement Benefits and Investment Services</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">214</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">23,208</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">35</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;International Life, Health and Employee Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">229</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">632</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">135</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Run-off Reinsurance Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,702</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">759</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Other Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">6</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">11,200</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">140</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Corporate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 494</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 41,222</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,535</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Year Ended December 31, 2001:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Employee Health Care, Life and Disability Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 44</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,550</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,948</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Employee Retirement Benefits and Investment Services</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">209</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22,264</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">20</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;International Life, Health and Employee Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">188</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">508</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">139</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Run-off Reinsurance Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">555</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">709</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Other Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">11,607</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">134</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Corporate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 448</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 39,484</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 3,950</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Year Ended December 31, 2000:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Employee Health Care, Life and Disability Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 42</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,589</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,982</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Employee Retirement Benefits and Investment Services</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">191</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">20,571</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">21</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;International Life, Health and Employee Benefits</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">811</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3,007</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">804</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Run-off Reinsurance Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">619</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">802</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Other Operations</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12,069</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">153</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Corporate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,052</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 40,855</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,762</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
</TABLE>

<P ALIGN="CENTER">FS-10 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>






<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Unearned<BR>premiums</B></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Premiums<BR>and fees</B> <SUP><A HREF="#FS111">(1)</A></SUP></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Net<BR>investment<BR>income </B><SUP><A HREF="#FS112">(2)</A></SUP></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Benefits,<BR>losses and<BR>settlement<BR>expenses </B><SUP><A HREF="#FS111">(1)</A></SUP></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Policy<BR>acquisition<BR>expenses</B></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Other<BR>operating<BR>expenses</B></FONT></TD><TD>&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="18" ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="7%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="11%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="7%" ALIGN="RIGHT"> 224</TD>
        <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="13%" ALIGN="RIGHT"> 14,336</TD>
        <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="11%" ALIGN="RIGHT"> 558</TD>
        <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="13%" ALIGN="RIGHT"> 10,310</TD>
        <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="7%" ALIGN="RIGHT"> 67</TD>
        <TD WIDTH="6%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="1%" ALIGN="RIGHT">$</TD><TD WIDTH="11%" ALIGN="RIGHT"> 4,577</TD>
        <TD WIDTH="2%" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">336</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,649</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,315</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">57</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">286</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">811</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">51</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">472</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">121</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">223</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">138</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">44</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,761</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">70</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">116</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">409</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">456</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">134</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">67</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 243</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15,737</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,716</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 14,314</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 246</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 5,357</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 218</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 13,459</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 599</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 9,488</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 26</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,110</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">322</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,668</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,338</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">49</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">294</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">14</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">788</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">49</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">481</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">161</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">196</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">148</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">52</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">154</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">78</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">143</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">450</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">515</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">158</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">24</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">89</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 237</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 14,860</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,842</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 11,976</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 237</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,925</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 203</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 12,959</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 604</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 9,323</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 16</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 3,637</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">350</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,617</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,306</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">43</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">258</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">355</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2,042</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">148</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1,451</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">206</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">463</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">23</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">365</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">63</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">470</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">151</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">146</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">459</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">509</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">139</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">49</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">64</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 583</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15,862</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,940</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 13,059</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 268</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 4,712</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

</TABLE>


<P ALIGN="LEFT">________________________________ </P>

<A NAME="FS111"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Amounts
presented are shown net of the effects of reinsurance. See Note 17 to the Financial
Statements included in CIGNA's 2002 Annual Report. </P></TD>
</TR>
</TABLE>

<A NAME="FS112"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(2) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">The
allocation of net investment income is based upon the investment year method, the
identification of certain portfolios with specific segments, or a combination of both. </P></TD>
</TR>
</TABLE>




<P ALIGN="CENTER">FS-11 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="FS12"></A>
<P ALIGN="CENTER"><B>CIGNA CORPORATION AND SUBSIDIARIES</B> </P>

<P ALIGN="CENTER"><B>SCHEDULE IV<BR>
REINSURANCE <BR>
(In millions)</B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Gross<BR>amount</B></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Ceded to<BR>other<BR>companies</B></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Assumed<BR>from other<BR>companies</B></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Net<BR>amount</B></FONT></TD><TD>&nbsp;</TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Percentage<BR>of amount<BR>assumed<BR>to net</B></FONT></TD><TD>&nbsp;</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="18" ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="37%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="2%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="3%" ALIGN="RIGHT"></TD><TD WIDTH="6%" ALIGN="RIGHT"></TD>
        <TD WIDTH="3%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Year Ended December 31, 2002:</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Life insurance in force</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 334,831</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 59,752</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 181,830</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 456,909</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">39.8</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Premiums and fees:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life insurance and annuities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,205</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 464</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 536</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,277</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">23.5</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accident and health insurance</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,483</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">84</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">61</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">13,460</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">.5</TD>
        <TD ALIGN="LEFT"></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"></TD><TD></TD></TR>


<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15,688</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 548</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 597</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15,737</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">3.8</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Year Ended December 31, 2001:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Life insurance in force</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 437,592</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 69,833</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 172,378</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 540,137</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">31.9</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Premiums and fees:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life insurance and annuities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,331</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 473</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 592</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2,450</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">24.2</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accident and health insurance</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12,497</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">239</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">152</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12,410</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">1.2</TD>
        <TD ALIGN="LEFT"></TD></TR>

<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 14,828</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 712</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 744</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 14,860</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">5.0</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Year Ended December 31, 2000:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Life insurance in force</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 472,926</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 88,561</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 174,538</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 558,903</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">31.2</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Premiums and fees:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Life insurance and annuities</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 3,746</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 678</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 900</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 3,968</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22.7</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accident and health insurance</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">11,847</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">226</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">273</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">11,894</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">2.3</TD>
        <TD ALIGN="LEFT"></TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="1"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"></TD><TD></TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15,593</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 904</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 1,173</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15,862</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7.4</TD>
        <TD ALIGN="LEFT">%</TD></TR>
<TR>
     <TD COLSPAN="3"></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="RIGHT"><HR NOSHADE SIZE="2"></TD><TD></TD></TR>

</TABLE>



<P ALIGN="CENTER">FS-12 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<A NAME="FS13"></A>
<P ALIGN="CENTER"><B>CIGNA CORPORATION</B> </P>

<P ALIGN="CENTER"><B>SCHEDULE V<BR>
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES<BR>
(In millions)</B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="760">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Description</B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Balance at<BR>beginning<BR>of period</B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Charged<BR>(Credited)<BR>to<BR>costs and<BR>expenses</B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Charged<BR>(Credited)<BR>to other<BR>accounts<BR>-describe<SUP><A HREF="#FS131">(1)</A></SUP></B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><B>Other<BR>deductions<BR>-describe<SUP><A HREF="#FS132">(2)</A></SUP></B></FONT></TD><TD></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT SIZE="-1"><BR><B>Balance<BR>at end<BR>of period</B></FONT></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD><HR NOSHADE SIZE="1" WIDTH="35%"></TD><TD COLSPAN="2"></TD>
     <TD COLSPAN="14"><HR NOSHADE SIZE="1" WIDTH="100%"></TD><TD></TD></TR>
<TR VALIGN="BOTTOM">
     <TD COLSPAN="18">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="31%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="LEFT"></TD>
     <TD WIDTH="3%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"></TD><TD WIDTH="8%" ALIGN="RIGHT"></TD>
        <TD WIDTH="4%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">2002:</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>

<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Investment asset valuation reserves:</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
     <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Mortgage loans</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 9</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 14</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> (27</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 11</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Real estate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">45</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">17</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">24</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(65</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">21</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Allowance for doubtful accounts:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Premiums, accounts and notes</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;receivable</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">43</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">36</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(24</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">55</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Deferred tax asset valuation</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;allowance</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">91</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">58</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">149</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Reinsurance recoverables</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">150</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(1</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">149</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">2001:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Investment asset valuation reserves:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Mortgage loans</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 37</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 2</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 3</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> (27</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 15</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Real estate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">12</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">27</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(16</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">45</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Allowance for doubtful accounts:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Premiums, accounts and notes</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;receivable</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">54</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(2</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">4</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(13</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">43</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Deferred tax asset valuation</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;allowance</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">91</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">91</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Reinsurance recoverables</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT"></TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">2000:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Investment asset valuation reserves:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Mortgage loans</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 11</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 13</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 19</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> (6</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">$</TD><TD ALIGN="RIGHT"> 37</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Real estate</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">38</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">7</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">10</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(33</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">22</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Allowance for doubtful accounts:</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;Premiums, accounts and notes</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;receivable</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">65</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">9</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(3</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(17</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">54</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Deferred tax asset valuation</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">&nbsp;&nbsp;&nbsp;allowance</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">92</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">(1</TD>
        <TD ALIGN="LEFT">)</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">91</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT">Reinsurance recoverables</TD><TD ALIGN="LEFT">&nbsp;</TD><TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD>
     <TD ALIGN="RIGHT">&nbsp;</TD><TD ALIGN="RIGHT">-</TD>
        <TD ALIGN="LEFT">&nbsp;</TD></TR>
</TABLE>

<P ALIGN="LEFT">________________________________ </P>

<A NAME="FS131"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(1) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Change
in valuation reserves attributable to policyholder contracts. </P></TD>
</TR>
</TABLE>
<A NAME="FS132"></A>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD ALIGN="LEFT" WIDTH="3%">(2) </TD>
     <TD ALIGN="LEFT" WIDTH="3%">&nbsp;</TD>
     <TD WIDTH="94%"><P ALIGN="LEFT">Reflects
transfer of reserves to other investment asset categories as well as charge-offs upon
sales, repayments and other. </P></TD>
</TR>
</TABLE>


<P ALIGN="CENTER">FS-13 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<A NAME="E1"></A>
<P ALIGN="CENTER"><B>INDEX TO EXHIBITS</B></P>

<TABLE CELLPADDING="10" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD ALIGN="CENTER" COLSPAN="2"><B>Number</B></TD>
     <TD ALIGN="CENTER"><B>Description</B></TD>
     <TD ALIGN="CENTER"><B>Method of Filing</B></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="6%"> 3.1</TD>
     <TD WIDTH="10%"> </TD>
     <TD WIDTH="42%">Restated Certificate of Incorporation of the registrant as last amended July 22, 1998</TD>
     <TD WIDTH="42%">Filed as Exhibit 3 to the registrant's Form 10-Q for the quarter ended June 30, 1998 and incorporated herein by reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>3.2</TD>
     <TD> </TD>
     <TD>By-Laws of the registrant as last amended and restated December 11, 2000</TD>
     <TD>Filed as Exhibit 3.2 to the registrant&#146;s Form 10-K for the year ended December 31, 2000 and incorporated
  herein by reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>4  </TD>
     <TD> (a) </TD>
     <TD>Amended and Restated Shareholder Rights Agreement dated as of July 22, 1998 between CIGNA Corporation and First Chicago Trust
Company of New York</TD>
     <TD>Filed as Item 1 and Exhibit 1 to the registrant's Form 8-A/A Amendment No. 1 dated July 22, 1998 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD> </TD>
     <TD>(b) </TD>
     <TD>Amendment No. 1 dated as of December 14, 1998 to the Amended and Restated Shareholder Rights Agreement</TD>
     <TD>Filed as Item 1 and Exhibit 1 to the registrant's Form 8-A/A Amendment No. 2 dated December 14, 1998 and incorporated herein
by reference.</TD></TR>
<TR VALIGN="TOP">
     <TD> </TD>
     <TD>(c)</TD>
     <TD>Amendment No. 2 dated as of December 31, 2001 to the Amended and Restated Shareholder Rights Agreement </TD>
     <TD>Filed as Exhibit 10.1 to the registrant's Form 10-K for the year ended December 31, 2001 and incorporated herein by reference.</TD></TR>
</TABLE>

<P ALIGN="CENTER">Exhibits 10.1 through 10.24 are filed as exhibits pursuant to Item
14(c) of Form 10-K. </P>

<TABLE CELLPADDING="10" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD WIDTH="6%">10.1 </TD>
     <TD WIDTH="10%"> </TD>
     <TD WIDTH="42%">Deferred Compensation Plan for Directors of CIGNA Corporation, as amended and restated January 1, 1997</TD>
     <TD WIDTH="42%">Filed as Exhibit 10.1 to the registrant's Form 10-K for the year ended December 31, 2001 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.2 </TD>
     <TD> </TD>
     <TD>Retirement and Consulting Plan for Directors of CIGNA Corporation, as amended and restated May 29, 1991</TD>
     <TD>Filed as Exhibit 10.2 to the registrant's Form 10-K for the year ended December 31, 1998 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.3 </TD>
     <TD> </TD>
     <TD>Restated Restricted Stock Plan for Non-Employee Directors of CIGNA Corporation dated as of April 22, 1998</TD>
     <TD>Filed as Exhibit 10 to the registrant's Form 10-Q for the quarter ended June 30, 1998 and incorporated herein by reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.4 </TD>
     <TD> </TD>
     <TD>Description of Stock Compensation Plan for Non-Employee Directors of CIGNA Corporation, as amended and restated effective
July 1, 2001</TD>
     <TD>Filed As Exhibit 10 to the registrant's Form
  10-Q for the quarter ended June 30, 2001 and incorporated herein by reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.5 </TD>
     <TD>(a) </TD>
     <TD>CIGNA Corporation Stock Plan, as amended and restated through February 24, 1999</TD>
     <TD>Filed as Exhibit 10.5 to the registrant's Form 10-K for the year ended December 31, 1998 and incorporated herein by
reference.</TD></TR></TABLE>

<P ALIGN="CENTER">E-1 </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<TABLE CELLPADDING="10" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD WIDTH="6%"> </TD>
     <TD WIDTH="10%"> </TD>
     <TD WIDTH="42%"></TD>
     <TD WIDTH="42%"></TD></TR>
<TR VALIGN="TOP">
     <TD> </TD>
     <TD>  (b)</TD>
     <TD>Amendment No. 1 dated as of July 31, 2000 to the CIGNA Corporation Stock Plan</TD>
     <TD>Filed as Exhibit 10.2 to the registrant's Form 10-Q for the quarter ended September 30, 2000 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.6 </TD>
     <TD>(a) </TD>
     <TD>CIGNA Executive Severance Benefits Plan effective as of January 1, 1997</TD>
     <TD>Filed as Exhibit 10.7(a) to the registrant's Form 10-K for the year ended December 31, 2001 and incorporated herein by
reference.
</TD></TR>
<TR VALIGN="TOP">
     <TD> </TD>
     <TD> (b)</TD>
     <TD>             Amendment No. 1 effective February 23, 2000 to the CIGNA Executive Severance Benefits Plan</TD>
     <TD> Filed as Exhibit 10.7(b) to the registrant's Form 10-K for the year ended December 3, 1999 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.7 </TD>
     <TD> </TD>
     <TD>CIGNA Executive Incentive Plan, as amended and restated January 1, 2002</TD>
     <TD>Filed as Exhibit 10 to the registrant's Form
  10-Q for the quarter ended March 31, 2002 and incorporated herein by reference.</TD></TR>
<TR VALIGN="TOP">
     <TD> 10.8</TD>
     <TD>(a) </TD>
     <TD>CIGNA Long-Term Incentive Plan, as amended and restated January 1, 2000</TD>
     <TD>Filed as Appendix A to the registrant's Definitive Proxy Statement on Schedule 14A dated March 22, 2000 and incorporated
  herein by reference</TD></TR>
<TR VALIGN="TOP">
     <TD> </TD>
     <TD>(b) </TD>
     <TD>Amendment No. 1 dated as of July 31, 2000 to the CIGNA Long-Term Incentive Plan</TD>
     <TD>Filed as Exhibit 10.2 to the registrant's Form 10-Q for the quarter ended September 30, 2000 and incorporated herein by
  reference</TD></TR>
<TR VALIGN="TOP">
     <TD>10.9 </TD>
     <TD> </TD>
     <TD>CIGNA Deferred Compensation Plan, as amended and restated October 24, 2001</TD>
     <TD>Filed as Exhibit 10 to the registrant&#146;s Form
  10-Q for the quarter ended September 30, 2001 and incorporated herein by reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.10 </TD>
     <TD> (a) </TD>
     <TD>CIGNA Supplemental Pension Plan, as amended and restated August 1, 1998</TD>
     <TD>Filed as Exhibit 10 to the registrant's Form 10-Q for the quarter ended September 30, 1998 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD> </TD>
     <TD>(b) </TD>
     <TD>Amendment No. 1 dated December 21, 1999 to the CIGNA Supplemental Pension Plan, as amended and restated effective August 1,
1998</TD>
     <TD>Filed as Exhibit 10.11(b) to the registrant's Form 10-K for the year ended December 21,1999 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD> </TD>
     <TD>(c) </TD>
     <TD>Amendment No. 2 dated December 6, 2000 to the CIGNA Supplemental Pension Plan as amended and restated August 1, 1998
</TD>
     <TD>Filed as Exhibit 10.11(c) to the registrant's Form 10-K for the year ended December 31, 2001 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD> 10.11</TD>
     <TD> </TD>
     <TD>Description of CIGNA Corporation Financial Services Program
</TD>
     <TD>Filed as Exhibit 10.12 to the registrant's Form 10-K for the year ended December 31, 2001 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.12 </TD>
     <TD> </TD>
     <TD>Description of the CIGNA Corporation Key Management Annual Incentive Bonus Plan
</TD>
     <TD>Filed as Exhibit 10.13 to the registrant's Form 10-K for the year ended December 31, 1998 and incorporated herein by
  reference.</TD></TR></TABLE>

<P ALIGN="CENTER">E-2 </P>

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<TR VALIGN="TOP">
     <TD ALIGN="CENTER" COLSPAN="2">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="6%"> </TD>
     <TD WIDTH="10%"> </TD>
     <TD WIDTH="42%">&nbsp;</TD>
     <TD WIDTH="42%"></TD></TR>
<TR VALIGN="TOP">
     <TD>10.13 </TD>
     <TD> </TD>
     <TD>Special Retention Agreement dated January 25, 1995 with Mr. Stewart
</TD>
     <TD>Filed as Exhibit 10.14 to the registrant&#146;s Form 10-K for the year ended December 31, 2000 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD> 10.14</TD>
     <TD> </TD>
     <TD>Special Retention Agreement dated March 27, 1996 with Mr. Levinson
</TD>
     <TD>Filed as Exhibit 10.15 to the registrant's Form 10-K for the year ended December 31, 2001 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD> 10.15</TD>
     <TD> </TD>
     <TD>Form of Non-Compete Agreement dated December&nbsp;8, 1997 with Messrs. Hanway and Levinson
</TD>
     <TD> Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.16 </TD>
     <TD> </TD>
     <TD>Description of Mandatory Deferral of Non-Deductible Executive Compensation Arrangement
</TD>
     <TD>Filed as Exhibit 10.17 to the registrant's Form 10-K for the year ended December 31, 2001 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.17 </TD>
     <TD> </TD>
     <TD>Special Incentive Agreement with Mr.&nbsp;Stewart dated March 17, 1998
</TD>
     <TD>  Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.18 </TD>
     <TD> </TD>
     <TD>Special Incentive Agreement with Mr. Levinson dated March 17, 1998
</TD>
     <TD> Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.19 </TD>
     <TD> </TD>
     <TD>Special Incentive Agreement with Mr.&nbsp;Hanway dated March 17, 1998
</TD>
     <TD>Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD> 10.20</TD>
     <TD> </TD>
     <TD>Non-Compete Agreement and Description of Supplemental Pension Arrangement with Mr. Pastore dated November 14, 1997
</TD>
     <TD>  Filed as Exhibit 10.21 to the registrant's Form 10-K for the period ended December 31, 2001 and incorporated herein by
  reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.21 </TD>
     <TD> </TD>
     <TD>Agreement dated July 25, 2002 with Mr. Pastore</TD>
     <TD>Filed as Exhibit 10 to the registrant's Form
  10-Q for the quarter ended September 30, 2002 and incorporated herein by reference.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.22 </TD>
     <TD> </TD>
     <TD>Arrangements relating to Mr. Welch&#146;s compensation and pension</TD>
     <TD> Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.23 </TD>
     <TD> </TD>
     <TD>Agreement and Release dated December 16, 2002 with Mr. Stewart</TD>
     <TD>Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>10.24 </TD>
     <TD> </TD>
     <TD>Arrangements relating to Mr. Kim&#146;s compensation</TD>
     <TD>Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD> 12</TD>
     <TD> </TD>
     <TD>Computation of Ratios of Earnings to Fixed Charges</TD>
     <TD>Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>13</TD>
     <TD> </TD>
     <TD>Portions of registrant's 2002 Annual Report to Shareholders (Entire Annual Report bound in printed versions of Form 10-K)
</TD>
     <TD>  Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>21 </TD>
     <TD> </TD>
     <TD>Subsidiaries of the Registrant</TD>
     <TD>Filed herewith.</TD></TR>
</TABLE>

<P ALIGN="CENTER">E-3 </P>

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<TABLE CELLPADDING="10" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD ALIGN="CENTER" COLSPAN="2">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD>
     <TD ALIGN="CENTER">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="6%"> </TD>
     <TD WIDTH="10%"> </TD>
     <TD WIDTH="42%">&nbsp;</TD>
     <TD WIDTH="42%"></TD></TR>
<TR VALIGN="TOP">
     <TD> 23</TD>
     <TD> </TD>
     <TD>Consent of Independent Accountants</TD>
     <TD> Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>24.1 </TD>
     <TD> </TD>
     <TD>Powers of Attorney</TD>
     <TD>Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD>24.2 </TD>
     <TD> </TD>
     <TD>Certified Resolutions</TD>
     <TD> Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD> 99.1</TD>
     <TD> </TD>
     <TD>Certification of Chief Executive Officer of CIGNA Corporation pursuant to 18 U.S.C. Section 1350</TD>
     <TD>Filed herewith.</TD></TR>
<TR VALIGN="TOP">
     <TD> 99.2</TD>
     <TD> </TD>
     <TD>Certification of Chief Financial Officer of CIGNA Corporation pursuant to 18 U.S.C. Section 1350</TD>
     <TD>Filed herewith.</TD></TR>
</TABLE>


<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant will
furnish to the Commission upon request a copy of any of the registrant's agreements with
respect to its long-term debt. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders may obtain
copies of exhibits by writing to CIGNA Corporation, Shareholder Services Department, Two
Liberty Place, 1601 Chestnut Street, P.O. Box 7716, Philadelphia, PA 19192. </P>












<P ALIGN="CENTER">E-4 </P>

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