CIGNA Agree assign to Prudentia
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MEMORANDUM
March 30, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Assignment of CIGNA Agreements to Prudential
In 1999 the City entered into a Development Agreement and an Enterprise Zone
Agreement with Trilog, Inc. (CIGNA) for the expansion of the Company at 5th and Main.
The terms of the Development Agreement stipulated the City would provide a land grant
for the expansion, and a rebate of property taxes paid on the incremental value created
by the project. The Enterprise Zone agreement allowed the company to receive sales
tax refunds on the materials used in construction, an increase in job training funding
from the community college, and a tax credit on the capital investments made by the
company.
The Company agreed to employ 200 persons, in addition to the 1999 employment of
320, and to maintain these 520 positions for 10 years. Documentation has been
received from CIGNA that employment at the end of December 2003 was 570.
Therefore, the Company continues to be in compliance with the terms of the Enterprise
Zone and Development Agreements.
In November 2002 CIGNA announced the company had signed an agreement to sell its
retirement business to Prudential Financial, Inc. Negotiations on the sale have been
ongoing since, and are expected to be completed in April.
Both the Development Agreement and the Enterprise Zone Agreement require City
approval of an assignment or transfer of obligations to another company.
Economic Development Director Bill Baum recommends City Council approval of a
Memoranda of Understanding and Assignment and Assumption of the Enterprise Zone
and Development Agreements.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~JJ ~11 ¡1Jt /
Michaél C. Van Milligen -
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
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MEMORANDUM
March 26, 2004
TO:
FROM:
Michael Van Milligen, City Manager
William Baum, Economic Development Director /It! ~
Assignment of CIGNA agreements to Prudential f
SUBJECT:
Background
In 1999 the City entered into a Development Agreement and an Enterprise Zone
Agreement with Trilog, Inc. (CIGNA) for the expansion of the Company at 5th and Main.
The terms of the Development Agreement stipulated the City would provide a land grant
for the expansion, and a rebate of property taxes paid on the incremental value created
by the project. The Enterprise Zone agreement allowed the company to receive sales
tax refunds on the materials used in construction, an increase in job training funding
from the community college, and a tax credit on the capital investments made by the
company.
The Company agreed to employ 200 persons, in addition to the 1999 employment of
320, and to maintain these 520 positions for 10 years.
Discussion
In November 2002 CIGNA announced the company had signed an agreement to sell its
retirement business to Prudential Financial, Inc for $2.1 billion. Negotiations on the sale
have been ongoing since, and are expected to be completed in April.
We have met with officials of CIGNA and Prudential to discuss the terms and conditions
of the EZ and Development Agreements, and other incentives that could be offered by
the Iowa Department of Economic Development.
Both the Development Agreement and the Enterprise Zone Agreement require City
approval of an assignment or transfer of obligations to another' company. To
accomplish this, Prudential has prepared Memoranda of Understanding (MOU) and two
Assignment and Assumption Agreements, all attached to this memo.
The MOU and Assignment and Assumptions for both agreements have been reviewed
and approved by Corporation Counsel Barry Lindahl.
The MOU provide the details of the structure of the sale, with CIGNA Retirement
Benefits transferring its operations and the EZ Agreement to a wholly owned subsidiary,
CIGNA Life Insurance Company. After the sale is complete, CIGNA Life Insurance
Company's name will be changed to Prudential Retirement Benefits Services.
Prudential Retirement Benefits Services will be the successor eligible for EZ benefits,
and responsible for the job creation requirements under the EZ Agreement.
I have received documentation from CIGNA that employment at the end of December
2003 was 570. Therefore, the Company continues to be in compliance with the terms of
the Enterprise Zone and Development Agreements.
Recommendation and Action Requested
The attached resolution approving the Memoranda of Understanding and Assignment
and Assumption of the Enterprise Zone and Development Agreements has been
prepared for City Council review and approval. I recommend the City Council adopt the
resolution.
F:IUSERSIWBaumICIGNAIMemo on CIGNA assignmentdoc
RESOLUTION NO. 126-04
APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY
OF DUBUQUE, IOWA AND PRUDENTIAL INSURANCE COMPANY OF
AMERICA FOR THE ASSIGNMENT OF AN ENTERPRISE ZONE
AGREEMENT AMONG THE CITY OF DUBUQUE, THE STATE OF IOWA AND
CIGNA RETIREMENT BENEFITS SERVICES FROM CIGNA RETIREMENT
BENEFITS SERVICES TO PRUDENTIAL INSURANCE COMPANY OF
AMERICA AND APPROVING THE ASSIGNMENT OF SUCH ENTERPRISE
ZONE AGREEMENT; AND APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF DUBUQUE, IOWA AND
PRUDENTIAL INSURANCE COMPANY OF AMERICA FOR THE
ASSIGNMENT OF A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF
DUBUQUE, AND CIGNA RETIREMENT BENEFITS SERVICES FROM CIGNA
RETIREMENT BENEFITS SERVICES TO PRUDENTIAL INSURANCE
COMPANY OF AMERICA AND APPROVING THE ASSIGNMENT OF SUCH
DEVELOPMENT AGREEMENT
Whereas, the City of Dubuque entered into an Enterprise Zone Agreement #99-
EZ-06 in 1999 with the State of Iowa and CIGNA Retirement Benefits Services; and
Whereas, the City of Dubuque entered into a Development Agreement dated
October 18, 1999 with CIGNA Retirement Benefits Services; and
Whereas, Prudential Insurance Company of America, a subsidiary of Prudential
Financial has entered into an agreement to acquire CIGNA Retirement Benefits Services
(aka Trilog, Inc./Connecticut General Life Insurance); and
Whereas, the Enterprise Zone Agreement and the Development Agreement are
non-transferable except with the written consent of the City of Dubuque; and
Whereas, Memoranda of Understanding and Assignment and Assumption
Agreements have been prepared outlining the sale and providing that CIGNA Retirement
Benefits Services will assign its interests in the Enterprise Zone Agreement and
Development Agreement to Prudential Insurance Company of America; and
Whereas, the City Council has determined that it is in the best interests of the
City of Dubuque to enter into the Memoranda of Understanding and to consent to the
Assignment and Assumption Agreements.
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF DUBUQUE,
IOWA, AS FOLLOWS:
Section 1. The attached Memoranda of Understanding and Assignment and Assumption
Agreements are hereby approved.
Section 2. The Mayor is hereby authorized and directed to execute the Memoranda of
Understanding consenting to the Assignment and Assumption Agreements on behalf of the
City of Dubuque.
Passed, approved and adopted this 5th day of April, 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
ATTEST:
F:IUSERSIWBaumICIGNAIResolution approving mous and assignment with Prudential.doc
March 29th, 2004
Ms. Melanie Johnson, Counsel
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, IA 50309
RE: Enterprise Zone Agreement #99-EZ-06
Memorandum of Understanding
Dear Ms. Johnson:
This letter is intended to outline our agreement and when executed by
all parties will constitute a "Memorandum of Understanding" related to the
Enterprise Zone (EZ) Agreement #99-EZ-06.
1) The Enterprise Zone (EZ) Agreement #99-EZ-06 ("EZ Agreement") was entered
into among the Iowa Department of Economic Development, the City of Dubuque,
Iowa and CIGNA Retirement Benefits Services, Inc. (formerly known as Trilog,
Inc.), with respect to its leased location at Town Clock Plaza in Dubuque,
Iowa. CIGNA Retirement Benefits Services, Inc. is a subsidiary of and
currently 100% owned by Connecticut General Life Insurance Company of
Bloomfield, Connecticut. According to the terms of the EZ Agreement, CIGNA
Retirement Benefits Services, Inc. and Connecticut General Life Insurance
Company were collectively defined as the eligible Business.
2) On or about April 1, 2004 ("Closing"), Prudential Financial, Inc. of
Newark, New Jersey will acquire substantially all of the operations of CIGNA
Retirement Benefits Services, Inc., including the Dubuque, Iowa operation
referenced in the EZ Agreement. To facilitate the transaction, CIGNA
Retirement Benefits Services, Inc. transferred its operations to a wholly-
owned subsidiary, CIGNA Life Insurance Company prior to the Closing.
3) As part of the acquisition by Prudential Financial, Inc., CIGNA
Retirement Benefits Services, Inc. will also transfer the EZ Agreement
to The Prudential Insurance Company of America. A copy of the Assignment and
Assumption of Enterprise Zone (EZ) Agreement is attached to this letter.
4) After the transaction is complete, CIGNA Life Insurance Company's
name will be changed to prudential Retirement Benefits Services, Inc.
5) It is understood that The prudential Insurance Company of America
(National Association of Insurance Commissioners #68241), which is a wholly-
owned subsidiary of Prudential Financial, Inc., along with the
newly renamed Prudential Retirement Benefits Services, Inc., will be
considered the eligible Business and replace CIGNA Retirement Benefits
Services, Inc. and Connecticut General Life Insurance Company in the EZ
Agreement. As the successor eligible Business in the EZ Agreement, this means
that all rights, obligations, and benefits of the Iowa Enterprise Zone
program will be assigned to The Prudential Insurance Company of America and
prudential Retirement Benefits Services, Inc.
6) It is understood that beyond the Job Maintenance requirement, which
Prudential intends to adhere to, the most significant effect of this
change of ownership is that under the EZ Agreement, Sections 2.1
(c) and Section 2.1 (f), the Business will now be defined as The prudential
Insurance Company of America for purposes of receiving Iowa insurance
premium tax credits as provided in Iowa Code section 15.333A, paragraph
A and paragraph B.
7) It is understood that promptly after the Closing, the EZ Agreement will
be amended to reflect the above changes and executed by the appropriate
parties.
Kindly confirm your agreement with the above provisions by signing and
returning one (1) of the three (3) enclosed copies of this letter agreement.
Very truly yours,
The prudential Insurance Company
Of America
By:
Name:
Title:
Accepted and Agreed:
Iowa EDA Department of Economic Development
By:
Name:
Title:
City of Dubuque EDA
By:
Name:
Title:
cc:
Jim Armstrong, Iowa Insurance Division
Allen Williams, Iowa Dept. of Economic Development
Bill Baum, City of Dubuque
ASSIGNMENT AND ASSUMPTION OF ENTERPRISE ZONE (EZ) AGREEMENT
Building: Town Clock Plaza
Dubuque, Iowa
AGREEMENT, made as of April I, 2004 (hereinafter, "Effective
Date") between CIGNA RETIREMENT BENEFITS SERVICES, INC. (formerly
known as Trilog, Inc.), a Pennsylvania corporation, having an
office at c/o CIGNA Companies, Corporate Real Estate, 900 Cottage
Grove Road, Hartford, Connecticut 06152-2125, Attention:
Corporate Real Estate (hereinafter, "Assignor") and THE
PRUDENTIAL INSURANCE COMPANY OF AMERICA, a New Jersey
corporation, having an office at Two Gateway Center-17th Floor,
Newark, New Jersey 07102, Attention: Corporate Real Estate-Lease
Administration (hereinafter, "Assignee").
WIT N E SSE T H
WHEREAS, Assignor is "Business" under the Enterprise Zone
(EZ) Program Agreement described in Exhibit A hereto (hereinafter
"Agreement") .
WHEREAS, Assignor desires to assign all of its right, title
and interest, as Business, in and to the Agreement to Assignee;
and
WHEREAS, Assignee desires to accept such assignment and
assume the obligations of Assignor, as Business, under the
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants,
terms, and conditions hereinafter set forth, Assignor and
Assignee hereby covenant and agree as follows:
1.
Assignor does hereby assign, transfer and set over to
Assignee, its successors and assigns, all of Assignor's
right, title and interest, as Business, in and to the
Agreement, to have and to hold the same unto Assignee, its
successors and assigns, from and after the Effective Date
and for all the remaining term thereof, upon all the terms,
covenants, conditions and provisions therein contained.
2.
Assignor agrees to indemnify, defend (with counsel
reasonably acceptable to Assignee) and hold Assignee and its
affiliates, representatives, successors and assigns harmless
from and against any and all claims, costs, expenses and
liabilities, including, without limitation, court costs and
1
3.
4.
reasonable attorneys' fees, incurred or suffered by Assignee
arising out of or resulting from the failure of Assignor to
perform or discharge any obligation or liability incurred or
accrued under the Agreement prior to the Effective Date.
Assignee accepts the foregoing assignment and Assignee
hereby assumes the performance of all of the terms,
covenants, obligations and conditions of Business under the
Agreement, arising and accruing from and after the Effective
Date and for all the remaining term thereof.
Assignee hereby agrees to indemnify, defend (with counsel
reasonably acceptable to Assignor) and hold Assignor and its
affiliates, representatives, successors and assigns harmless
from and against any and all claims, costs, expenses and
liabilities, including, without limitation, court costs and
reasonable attorneys' fees, incurred or suffered by Assignor
and arising out of or resulting from the failure of Assignee
to perform or discharge any obligation or liability incurred
or accrued under the Agreement from and after the Effective
Date and for the balance of the term of the Agreement,
including any renewal thereof.
5.
All notices and correspondence to Assignee under the
Agreement shall be sent to:
The prudential Insurance Company of America
P.O. Box 1079
Newark, New Jersey 07101-1079
Attn: Corporate Real Estate-Lease Administration
For Overnight Delivery:
of America
The prudential Insurance Company
Two Gateway Center- 17th Floor
Newark, New Jersey 07102
Attn: Corporate Real Estate-Lease
Administration
6.
This Assignment and Assumption of Enterprise Zone (EZ)
Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective successors and
assigns.
7.
This Assignment and Assumption of Enterprise Zone (EZ)
Agreement may be executed by one or more of the parties to
the Agreement on any number of separate counterparts, and
all of said counterparts taken together shall be deemed to
constitute one and the same instrument.
2
IN WITNESS WHEREOF, Assignor and Assignee have caused this
Assignment and Assumption of Enterprise Zone (EZ) Agreement to be
executed as of the date first above written.
Assignor: CIGNA RETIREMENT BENEFITS
SERVICES, INC. (formerly, Trilog, Inc.)
By:
Name:
Title:
Assignee: THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA
By:
Name: Cher Zucker-Maltese
Title: Vice President,
Corporate Real Estate
3
EXHIBIT A
Enterprise Zone (EZ) Agreement Description
Building: Town Clock Plaza
Dubuque, Iowa
Department/IDED: Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309
Community: City of Dubuque, Iowa
50 West 13ili Street
Dubuque, Iowa 52001
Landlord/Developer: Minglewood Limited Partnership, as successor-
in-interest to Town Clock Plaza Associates, LLC
Minglewood Limited Partnership
C/O MCP Investments, Ltd.
North 2210 Alta Vista Drive
Lake Geneva, Wisconsin 53147
Attention: Jon Pusateri
Tenant/Business: CIGNA Retirement Benefits Services, Inc.
(fo~erly known as Trilog, Inc.)
Agreement Effective Date: September 1,2000
Amendments: None
Premises: Entire 3-story building, containing approximately
112,577 rentable square feet
4
March 29th, 2004
Mr. Barry Lindahl
Corporation Counsel
City of Dubuque, Iowa
50 West 13th Street
Dubuque, IA 50309
RE:
Development Agreement by and among the City of Dubuque, Iowa, Town Clock
Plaza Associates, LLC and Trilog, Inc. dated October 18,1999 ("Development
Agreement")
Memorandum of Understanding
Dear Mr. Lindahl:
This letter is intended to outline our agreement and when executed by
all parties will constitute a "Memorandum of Understanding" related to
the Development Agreement.
1) On October 18th, 1999, the Development Agreement was entered into among the
Iowa Department of Economic Development, the City of Dubuque, Iowa, and CIGNA
Retirement Benefits Services, Inc. (formerly known as Trilog, Inc.) with respect to its
leased building at Town Clock Plaza in Dubuque, Iowa. CIGNA Retirement Benefits
Services, Inc. is a subsidiary of and currently 100% owned by Connecticut General Life
Insurance Company of Bloomfield, Connecticut. According to the terms of the
Development Agreement, CIGNA Retirement Benefits Services, Inc. and Connecticut
General Life Insurance Company were collectively defined as the eligible Business.
2) On or about April 1, 2004 ("Closing"), Prudential Financial, Inc. of Newark, New
Jersey will acquire substantially all of the operations of CIGNA Retirement Benefits
Services, Inc., including the Dubuque, Iowa operation referenced in the Development
Agreement. To facilitate the transaction, CIGNA Retirement Benefits Services, Inc.
transferred its operations to a wholly-owned subsidiary, CIGNA Life Insurance Company
prior to the Closing.
3) As part of the acquisition by Prudential Financial, Inc., CIGNA
Retirement Benefits Services, Inc. will also transfer the Development Agreement to The
Prudential Insurance Company of America. A copy of the Assignment and Assumption
of Development Agreement is attached to this letter.
4) After the transaction is complete, CIGNA Life Insurance Company's
name will be changed to Prudential Retirement Benefits Services, Inc.
5) It is understood that The Prudential Insurance Company of America
(National Association of Insurance Commissioners #68241), which is a wholly-owned
subsidiary of Prudential Financial, Inc. along with the
newly renamed Prudential Retirement Benefits Services, Inc. will be considered the
eligible Business and replace CIGNA Retirement Benefits Services, Inc. and
Connecticut General Life Insurance Company in the Development Agreement. As the
successor eligible Business in the Development Agreement this means that all rights,
obligations, and benefits will be assigned to The Prudential Insurance Company of
America and Prudential Retirement Benefits Services, Inc.
6) It is understood that promptly after the Closing, the Development Agreement will be
amended to reflect the above changes and executed by the appropriate parties.
7) It is understood that The City of Dubuque, Iowa, hereby consents to the foregoing
Assignment and Assumption Agreement
Kindly confirm your agreement with the above provisions by signing and returning one
(1) of the three (3) enclosed copies of this letter agreement.
Very truly yours,
The Prudential Insurance Company
Of America
By:
Name:
Title:
Accepted and Agreed:
City of Dubuque, Iowa
By:
Name:
Title:
Minglewood Limited Partnership (successor-in-
interest to Town Clock Plaza Associates, Inc.)
By: M.C.P. Investments, Ltd, General Partner
By:
Jon M. Pusateri, President
cc:
Jim Armstrong, Iowa Insurance Division
Allen Williams, Iowa Dept. of Economic Development
Bill Baum, City of Dubuque
F:\USERS\WBaum\CIGNA\PICA- Dubuque, Iowa-Development Agrt(2Clean).doc
ASSIGNMENT AND ASSUMPTION OF DEVELOPMENT AGREEMENT
Building: Town Clock Plaza
Dubuque, Iowa
AGREEMENT, made as of April 1, 2004 (hereinafter, "Effective
Date") between CIGNA RETIREMENT BENEFITS SERVICES, INC. (formerly
known as Trilog, Inc.), a Pennsylvania corporation, having an
office at c/o CIGNA Companies, Corporate Real Estate, 900 Cottage
Grove Road, Hartford, Connecticut 06152-2125, Attention:
Corporate Real Estate (hereinafter, "Assignor") and THE
PRUDENTIAL INSURANCE COMPANY OF AMERICA, a New Jersey
corporation, having an office at Two Gateway Center-17th Floor,
Newark, New Jersey 07102, Attention: Corporate Real Estate-Lease
Administration (hereinafter, "Assignee").
WIT N E SSE T H
WHEREAS, Assignor is Employer under the Development
Agreement described in Exhibit A hereto (hereinafter
"Agreement") .
WHEREAS, Assignor desires to assign all of its right, title
and interest, as Employer, in and to the Agreement to Assignee;
and
WHEREAS, Assignee desires to accept such assignment and
assume the obligations of Assignor, as Employer, under the
Agreement.
NOW, THEREFORE, in consideration of the mutual covenants,
terms, and conditions hereinafter set forth, Assignor and
Assignee hereby covenant and agree as follows:
1.
Assignor does hereby assign, transfer and set over to
Assignee, its successors and assigns, all of Assignor's
right, title and interest, as Employer, in and to the
Agreement, to have and to hold the same unto Assignee, its
successors and assigns, from and after the Effective Date
for and during all the remaining term thereof, upon all the
terms, covenants, conditions and provisions therein
contained.
2.
Assignor agrees to indemnify, defend (with counsel
reasonably acceptable to Assignee) and hold Assignee and its
affiliates, representatives, successors and assigns harmless
from and against any and all claims, costs, expenses and
1
liabilities, including, without limitation, court costs and
reasonable attorneys' fees, incurred or suffered by Assignee
arising out of or resulting from the failure of Assignor to
perform or discharge any obligation or liability incurred or
accrued under the Agreement prior to the Effective Date.
3.
Assignee accepts the foregoing assignment and Assignee
hereby assumes the performance of all of the terms,
covenants, obligations and conditions of Employer under the
Agreement, arising and accruing from and after the Effective
Date and for all the remaining term thereof.
4.
Assignee hereby agrees to indemnify, defend (with counsel
reasonably acceptable to Assignor) and hold Assignor and its
affiliates, representatives, successors and assigns harmless
from and against any and all claims, costs, expenses and
liabilities, including, without limitation, court costs and
reasonable attorneys' fees, incurred or suffered by Assignor
and arising out of or resulting from the failure of Assignee
to perform or discharge any obligation or liability incurred
or accrued under the Agreement from and after the Effective
Date and for the balance of the term of the Agreement,
including any renewal thereof.
5.
All notices and correspondence to Assignee under the
Agreement shall be sent to:
The Prudential Insurance Company of America
P.O. Box 1079
Newark, New Jersey 07101-1079
Attn: Corporate Real Estate-Lease Administration
For Overnight Delivery:
The Prudential Insurance Company of America
Two Gateway Center- 17th Floor
Newark, New Jersey 07102
Attn: Corporate Real Estate-Lease Administration
6.
This Assignment and Assumption of Development Agreement
shall inure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns.
7.
This Assignment and Assumption of Development Agreement may
be executed by one or more of the parties to the Agreement
on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute
one and the same instrument.
2
IN WITNESS WHEREOF, Assignor and Assignee have caused this
Assignment and Assumption of Lease to be executed as of the date
first above written.
Assignor: CIGNA RETIREMENT BENEFITS
SERVICES, INC. (fo~erly Trilog, Inc.)
By:
Name:
Title:
Assignee: THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA
By:
Name:
Title:
3
EXHIBIT A
Development Agreement Description
Building: Town Clock Plaza
Dubuque, Iowa
Landlord/Developer: Minglewood Limited Partnership, as successor-
in-interest to Town Clock Plaza Associates, LLC
Minglewood L~ited Partnership
C/O MCP Investments, Ltd.
North 2210 Alta Vista Drive
Lake Geneva, Wisconsin 54137
Attention: Jon Pusateri
Tenant/Employer: CIGNA Retirement Benefits Services, Inc.
(formerly known as Trilog, Inc.)
Agreement Dated: October 18, 1999
Amendments: None
Premises: Entire 3-story building, containing approximately
112,577 rentable square feet
4
CIGNA Agrees to Sell Its Retirement Business to
Prudential Financial, Inc. for $2.1 Billion
Transaction positions CIGNA for Growth as a Leading Provider of Health
Care
Benefits and Disability, Life and Accident Insurance Programs for
Employers
and Their Employees
PHILADELPHIA, Nov. 17 /PRNewswire-FirstCall/ -- CIGNA Corporation
(NYSE: CI) announced today that it has signed a definitive agreement to
sell
its retirement business -- excluding its corporate life insurance unit
and its
investment advisory operation, TimesSquare Capital Management, Inc. --
to
Prudential Financial, Inc. (NYSE: PRU) for $2.1 billion. (1) The
transaction,
subject to regulatory approval and other contingencies, is expected to
be
completed by March 31, 2004.
"We'll now concentrate fully on being a leading provider of health
care
and disability, life and accident insurance benefits programs for
employers
and their employees," said H. Edward Hanway, chairman and chief
executive
officer, CIGNA Corporation.
that
objective with a heightened sense of urgency -- focused exclusively on
delivering the health and insurance solutions our customers demand. We
intend
to capitalize on our considerable strengths in these areas to
accelerate our
profitable growth.
"The sale is certainly a positive development," Hanway said.
"Prudential,
committed to growth in the markets served successfully by our
retirement
organization, is acquiring a profitable, well-managed operation with a
broad
range of products and programs and a team of knowledgeable, experienced
professionals. Moreover, retirement plan sponsors and participants can
expect
to receive from Prudential the same high level of quality, product
innovation
and service they have come to expect from us."
CIGNA expects to use the proceeds to support strong subsidiary and
parent
company ratings, ensure financial flexibility of the parent company,
support
the growth of its existing businesses, and return capital to investors
by
reducing corporate debt and repurchasing shares of outstanding stock.
"This transaction enables us to pursue