Cigna turns 4Q profit as run-off business improves
Managed care company Cigna said Thursday it posted a fourth-quarter profit, as interest rates and improved equity markets erased the earnings drag from a couple of discontinued businesses.
The Philadelphia insurer said it earned $60 million from its guaranteed minimum income benefits in the fourth quarter of 2009, after losing a total of $408 million in the same quarter the prior year from that business and its variable annuity death benefits.
Cigna discontinued both segments in 2000 and operates them in run-off mode, meaning it seeks no new business. Those businesses hurt the company’s performance when the market turns bad because Cigna’s liabilities toward them increase.
Cigna is the fourth-largest publicly traded health insurer based on enrollment, but it has a broader product portfolio than some of its competitors. [Read the full article]
The ratio of long to short positions in the EURUSD stands at 1.83 as nearly 65% of traders are long. Yesterday, the ratio was at 1.55 as 61% of open positions were long. In detail, long positions are 3.5% higher than yesterday and 14.5% stronger since last week. Short positions are 12.2% lower than yesterday and 4.1% stronger since last week. Open interest is 2.6% weaker than yesterday and 8.6% above its monthly average. The SSI is a contrarian indicator and signals more EURUSD losses.
DailyFX provides forex news on the economic reports and political events that influence the currency market. Learn currency trading with a free practice account and charts from FXCM. [Read the full article]