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Summarized below is adjusted income from operations by segment and other key consolidated financial data: 

<img src='content_image/286449.jpg'>

## Consolidated Results of Operations – 2012 Compared to 2011 

Revenues  increased 33% in 2012, primarily reflecting contributions from HealthSpring as well as higher revenues in each of the Company’s ongoing businesses from continued growth in the Company’s targeted global market segments. See further detailed discussion of revenues below and segment revenues in the individual segment discussions of this MD&A. GLYPH<127> 

Shareholders’ net income  increased 29% in 2012, primarily resulting from substantially higher adjusted income from operations as discussed below and significantly improved GMIB results due to more favorable market conditions in 2012. See the Run-off Reinsurance section of this MD&A for additional information on GMIB results. These favorable effects were partially offset by the 2012 special items for litigation and the realignment and efficiency plan. GLYPH<127> 

Adjusted income from operations  increased 27% in 2012, largely attributable to earnings contributions from HealthSpring, as well as overall revenue growth in the other ongoing operating segments and lower charges related to the GMDB business. See the individual segment sections of this MD&A for further discussion. GLYPH<127> 

Global medical customers  increased 11% primarily attributable to growth in strategically targeted global markets reflecting solid customer persistency and strong new sales as well as the acquisition of HealthSpring. GLYPH<127> 

## Consolidated Results of Operations – 2011 Compared to 2010 

Revenues  rose 3% in 2011 compared with 2010, reflecting solid growth in the Company’s strategically targeted domestic and international customer segments of its ongoing global health care, global supplemental benefits, and group disability and life businesses. In addition, the increase in revenue reflects the effect of the programs to hedge equity and growth interest rate exposures in the run-off reinsurance operations. See the Run-off Reinsurance section of this MD&A beginning on page 47 for additional information. These increases were partially offset by the exit from certain non-strategic markets, primarily the Medicare Advantage Individual Private Fee For Service (‘‘Medicare IPFFS’’) business. GLYPH<127> 

Shareholders’ net income  decreased 1% in 2011 compared with 2010, due to significantly higher GMIB losses principally reflecting lower interest rates, substantially offset by higher adjusted income from operations. GLYPH<127> 

Adjusted income from operations  increased 12% in 2011 compared with 2010 primarily due to higher earnings contributions from the Company’s Global Health Care and Global Supplemental Benefits segments. These results reflect solid business growth in strategically targeted markets and continued low medical services utilization trend. GLYPH<127> 

Global medical customers  increased 2%, reflecting growth in targeted markets, primarily the middle and select market segments domestically as well as growth in the international health care business. These increases were partially offset by exits from certain non-strategic markets, primarily Medicare IPFFS. GLYPH<127> 

## Liquidity and Financial Condition 

During 2012, the following items affected the Company’s liquidity and financial condition: 

Cash flows from operating activities. For 2012, cash flows from operating activities were higher than 2011 primarily attributable to strong earnings and business growth in the Company’s ongoing operating segments. GLYPH<127> 

Acquisitions. During 2012, the Company acquired HealthSpring, Great American Supplemental Benefits and Finans Emeklilik for a combined purchase price of approximately $4.2 billion. See Note 3 to the Consolidated Financial Statement for additional information. GLYPH<127> 

Repayment of Debt. During the first quarter of 2012, the Company repaid the acquired HealthSpring debt of $326 million. See Note 16 to the Consolidated Financial Statements for additional information. GLYPH<127> 

Pension Plan Contributions. During 2012, the Company contributed $250 million to the Company’s domestic qualified pension plans; See Note 10 to the Consolidated Financial Statements for additional information; and GLYPH<127> 

Share Repurchase. The Company repurchased 4.4 million shares of stock for $208 million. See the Liquidity and Capital Resources section of this MD&A for additional information. GLYPH<127> 

