Other Operations F. 

Cigna’s Other Operations segment includes the following businesses: 

corporate owned life insurance; GLYPH<127> 

deferred gains recognized from the 1998 sale of the individual life insurance and annuity business and the 2004 sale of the retirement benefits business; and GLYPH<127> 

run-off settlement annuity business. GLYPH<127> 

The products and services related to these operations are offered by subsidiaries of Cigna Corporation. 

## Corporate-owned Life Insurance (‘‘COLI’’) 

The principal products of the COLI business are permanent insurance contracts sold to corporations to provide coverage on the lives of certain employees for the purpose of funding employer-paid future benefit obligations. Permanent life insurance provides coverage that, when adequately funded, does not expire after a term of years. The contracts are primarily non-participating universal life policies. Fees for universal life insurance products consist primarily of mortality and administrative charges assessed against the policyholder’s fund balance. Interest credited and mortality charges for universal life and 

Investments and Investment Income G. 

## General Accounts 

Cigna’s investment operations provide investment management and related services for Cigna’s corporate invested assets and the insurance- related invested assets in its General Account (‘‘General Account Invested Assets’’). Cigna acquires or originates, directly or through intermediaries, a broad range of investments including private placements and public securities, commercial mortgage loans, real estate, mezzanine, private equity partnerships and short-term investments. Invested assets also include policy loans, that are fully collateralized by insurance policy cash values. Invested Assets are managed primarily by Cigna subsidiaries and, to a lesser extent, external managers with whom Cigna’s subsidiaries contract. Net investment income and realized investment gains (losses) are included as a component of earnings for each of Cigna’s operating segments (Global Health Care, Group Disability and Life, Global Supplemental Benefits, Run-off Reinsurance, and Other Operations) and Corporate. For additional information about invested assets, see the ‘‘Investment Assets’’ section of the MD&A beginning on page 56 and Notes 11, 12, 13, 14 and 15 to Cigna’s Consolidated Financial Statements. 

Cigna’s investment strategy is to maximize risk-adjusted yields for the portfolios. Cigna manages the investment portfolios to reflect the underlying characteristics of related insurance and contractholder liabilities and capital requirements, as well as regulatory and tax considerations pertaining to those liabilities and state investment laws. Insurance and contractholder liabilities range from short duration health care products to longer term obligations associated with disability and life products, and the run-off settlement annuity business. Assets supporting these liabilities are managed in segregated investment portfolios to facilitate matching of asset durations and 

mortality charges on variable universal life may be adjusted prospectively to reflect expected interest and mortality experience. In order to reduce its exposure to large individual and catastrophe losses, Cigna purchases reinsurance from unaffiliated reinsurers. 

## Individual Life Insurance & Annuity and Retirement Benefits Businesses 

For more information regarding the sale of these businesses and the arrangements which secure Cigna’s reinsurance recoverables, see Note 8 of the Consolidated Financial Statements. 

## Settlement Annuity Business 

Cigna’s settlement annuity business is a closed run-off block of single premium annuity contracts. These contracts are primarily liability settlements with approximately 28% of the liabilities associated with payments that are guaranteed and not contingent on survivorship. In the case of the contracts that involve non-guaranteed payments, such payments are contingent on the survival of one or more parties involved in the settlement. 

cash flows to those of corresponding liabilities. Investment strategy and results are affected by the amount and timing of cash available for investment, competition for investments, economic conditions, interest rates and asset allocation decisions. Cigna routinely monitors and evaluates the status of its investments, obtaining and analyzing relevant investment-specific information as well as assessing current economic conditions, trends in capital markets and other factors. Such factors include industry sector considerations for fixed maturity investments and mezzanine and private equity partnership investments, and geographic and property-type considerations for commercial mortgage loan and real estate investments. 

## Separate Accounts 

Cigna subsidiaries or external managers manage Separate Account assets on behalf of contractholders. These assets are legally segregated from the Company’s other businesses and are not included in the General Account Invested Assets. Income, gains and losses generally accrue directly to the contractholders. As of December 31, 2012, Cigna’s Separate Account assets consisted of: 

$3.4 billion in separate account assets that constitute a portion of the assets of the Cigna Pension Plan; GLYPH<127> 

$3.4 billion in separate account assets that support Variable Universal Life products sold as a part of the Company’s corporate- owned life insurance business, as well as through the Company’s Global Supplemental Benefits segment; and GLYPH<127> 

$1.0 billion in separate account assets that support primarily health care and other disability and life products. GLYPH<127> 

