content_image/150311.jpg content_image/150343.jpg
## Financial Summary 

<img src='content_image/150311.jpg'>

In 2012, segment loss for Corporate was significantly higher than in 2011, primarily reflecting: 

higher interest expense due to the $2.1 billion of long-term debt issued in the fourth quarter of 2011 to fund the HealthSpring acquisition; GLYPH<127> 

charges associated with litigation matters due primarily to recent developments. See Note 24 to the Consolidated Financial Statements for additional information; GLYPH<127> 

the absence of a tax benefit; and GLYPH<127> 

estimated penalties for terminating a service contract. GLYPH<127> 

## Liquidity and Capital Resources 

## Financial Summary 

Corporate’s segment loss was lower in 2011 compared with 2010 primarily reflecting a tax benefit from completing the IRS examination and absence of the 2010 loss on debt extinguishment, partially offset by costs associated with the HealthSpring acquisition, all of which were reported as special items. 

Corporate’s adjusted loss from operations was lower in 2011 compared with 2010 primarily reflecting decreased pension expense and lower tax adjustments related to postretirement benefits and compensation resulting from Health Care Reform. These factors were partially offset by increased net interest expense due to higher average borrowings outstanding in 2011. 

<img src='content_image/150343.jpg'>

## Liquidity 

The Company maintains liquidity at two levels: the subsidiary level and the parent company level. 

Liquidity requirements at the subsidiary level generally consist of: 

claim and benefit payments to policyholders; GLYPH<127> 

operating expense requirements, primarily for employee compensation and benefits; and GLYPH<127> 

dividends and federal tax payments to the parent company. GLYPH<127> 

The Company’s subsidiaries normally meet their operating requirements by: 

maintaining appropriate levels of cash, cash equivalents and short-term investments; GLYPH<127> 

using cash flows from operating activities; GLYPH<127> 

selling investments; GLYPH<127> 

matching investment durations to those estimated for the related insurance and contractholder liabilities; and GLYPH<127> 

borrowing from its parent company. GLYPH<127> 

Liquidity requirements at the parent level generally consist of: 

debt service and dividend payments to shareholders; GLYPH<127> 

pension plan funding; and GLYPH<127> 

federal tax payments. GLYPH<127> 

The parent normally meets its liquidity requirements by: 

maintaining appropriate levels of cash, cash equivalents and short-term investments; GLYPH<127> 

collecting dividends and federal tax payments from its subsidiaries; GLYPH<127> 

using proceeds from issuance of debt and equity securities; and GLYPH<127> 

borrowing from its subsidiaries. GLYPH<127> 

