Citing a 24% drop in shareholder equity last year, ongoing problems impacting the health insurer's variable annuity business and Cignas debt and capital levels, Fitch Ratings delivered a blow to Cigna Corp. today as it cut the insurers credit ratings. This news, reported by Dow Jones Newswires, follows a similar cut made by Standard &Poors Rating Services last month.
Although couched with the notification that Cignas access to liquidity is not a concern, shareholder equity has been hurt by an $861 million adjustment of Cigna's postretirement benefits liabilities, reports Dow Jones. Additionally, Cignas acquisition last year of Great-West Healthcare increased the insurers debt levels.
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