SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


         Date of Report (Date of earliest event reported) July 30, 1997


                                CIGNA Corporation
             (Exact name of registrant as specified in its charter)



          Delaware                  1-8323                     06-1059331
(State or other jurisdiction    (Commission                   (IRS Employer
   of incorporation)              File Number)               Identification No.)



              One Liberty Place, 1650 Market Street, P.O. Box 7716
                      Philadelphia, Pennsylvania 19192-1550
               (Address of principal executive offices) (Zip Code)



               Registrant's telephone number, including area code


                                 (215) 761-1000


                                 Not Applicable
          (Former name or former address, if changed since last report)

Item 5. Other Events. On July 30, 1997, the registrant issued a news release, a copy of which is filed as Exhibit 20 hereto and is incorporated herein by reference. Item 7. Financial Statements and Exhibits. (c) The exhibit accompanying this report is listed in the Index to Exhibits below. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CIGNA CORPORATION Date: July 30, 1997 By: /s/ Gary A. Swords ------------------- Gary A. Swords Vice President and Chief Accounting Officer Index to Exhibits Number Description Method of Filing 20 CIGNA Corporation Filed herewith news release dated July 30, 1997



NEWS RELEASE                                                   [CIGNA LOGO]
                                   EXHIBIT 20

                  Immediate


                  Albert D. Ciavardelli, Financial Relations - (215) 761-6128
                  Michael J. Monroe, Media Relations  - (215) 761-6133


                       CIGNA'S SECOND QUARTER 1997 RESULTS


                      OPERATING INCOME SHOWS STEADY GROWTH;

                              OPERATING EPS UP 10%




PHILADELPHIA, JULY 30, 1997 -- CIGNA Corporation (NYSE:CI) today reported second
quarter 1997 operating income* of $270 million,  or $3.61 per share, versus $252
million,  or $3.28 per share,  reported in the second  quarter of 1996.  For the
first half of 1997, operating income was $530 million or $7.10 per share, versus
$471 million, or $6.13 per share, for 1996.

"We are pleased with the continued  earnings  growth which reflects  strength in
all of our major business  segments.  I remain confident that in spite of strong
competition throughout the insurance industry we will see continued improvement.
We also believe  that the recent  Healthsource  acquisition  and the sale of the
individual life and annuity  businesses will further strengthen our operations,"
said Wilson H. Taylor, CIGNA's Chief Executive Officer.




* Operating  income (loss) is defined as net income (loss)  excluding  after-tax
realized investment results.


- 2 - SEGMENT RESULTS: EMPLOYEE LIFE AND HEALTH BENEFITS This segment, which includes CIGNA's HMO and indemnity operations, had operating income of $126 million in the second quarter of 1997. This compares with operating income of $121 million in the second quarter of 1996. For the first six months of 1997, operating income was $243 million, compared with $233 million for the same period last year. HMO medical membership grew by approximately 280,000 covered lives, or 7%, since June 30, 1996. Results for the Healthsource operations, which were acquired at the end of June 1997, will be included in CIGNA's results beginning with the third quarter. EMPLOYEE RETIREMENT AND SAVINGS BENEFITS This segment, which operates in the defined contribution and defined benefit markets, had operating income of $53 million in the second quarter of 1997. This compares with operating income of $44 million in the second quarter of 1996. For the first six months of 1997, operating income was $107 million, compared with $95 million for the first six months of 1996. Assets under management at June 30, 1997 were $43.8 billion, an increase of 14% from $38.5 billion as of June 30, 1996.

- 3 - INDIVIDUAL FINANCIAL SERVICES This segment, which currently includes individual and corporate-owned life insurance; life, accident and health reinsurance; and annuity businesses, had operating income of $48 million in the second quarter of 1997. This compares with operating income of $42 million in the second quarter of 1996. For the first six months of 1997, operating income was $95 million, compared with $74 million in 1996. The individual life insurance and annuity businesses, which (subject to regulatory approval) will be sold to Lincoln National Corporation, represent approximately $44 million or 46 percent of this segment's earnings in the first six months of 1997. The corporate-owned life insurance and reinsurance businesses, with earnings of $51 million in the first six months of 1997, will be retained by CIGNA. PROPERTY AND CASUALTY The property and casualty (P&C) segment includes the Ongoing operations (International and Domestic) and Run-off. Ongoing operations had operating income of $59 million for the second quarter of 1997. This compares with operating income of $56 million for the same period last year. The GAAP combined ratio after policyholders' dividends was 100 for the second quarter of 1997, compared with 101 for the second quarter of 1996. For the first six months of 1997, operating income was $115 million, compared with $97 million for 1996.

- 4 - The Ongoing operations had $1 million of after-tax catastrophe losses for the second quarter of 1997, compared with $5 million for the same period last year. After-tax catastrophe losses for the first six months of 1997 were $9 million, compared with $20 million for 1996. Within the Ongoing operations, International had operating income of $36 million for the second quarter of 1997, which was equal to the second quarter 1996 results. The GAAP combined ratio after policyholders' dividends was 94 for the second quarter of 1997, compared with 93 for the same period of 1996. Domestic had operating income of $23 million for the second quarter of 1997, compared with $20 million in 1996. The GAAP combined ratio after policyholders' dividends for the second quarter of 1997 was 106, compared with 109 for the second quarter of 1996. Run-off operations were breakeven in the second quarter of 1997, compared with operating income of $3 million for the same period in 1996. OTHER Other Operations includes unallocated investment income, expenses (including debt service) and taxes, and the results of CIGNA's settlement annuity business, investment and real estate subsidiaries and certain new business initiatives. Other Operations had an operating loss of $16 million in the second quarter of 1997, compared with an operating loss of $14 million in the second quarter of 1996. For the first six months of 1997, the operating loss was $31 million, compared with a loss of $32 million in 1996.

- 5 - NET INCOME Consolidated net income for the quarter was $279 million, or $3.73 per share, compared with $231 million, or $3.00 per share, a year ago. For the first half of 1997, consolidated net income was $567 million, or $7.59 per share, compared with $469 million, or $6.10 per share a year ago. The 1997 second quarter consolidated net income included after-tax realized investment gains of $9 million, or $0.12 per share, compared with losses of $21 million, or $0.28 per share, for the same period of 1996. Consolidated net income for the first half of 1997 included after-tax realized investment gains of $37 million, or $0.49 per share, compared with losses of $2 million, or $0.03 per share, for the same period of 1996. REVENUES Consolidated revenues for the second quarter and first six months of 1997 were $4.7 billion and $9.4 billion, respectively, level with the same periods last year. ASSETS/SHAREHOLDERS' EQUITY Assets at June 30, 1997 were $103.7 billion, compared with $98.9 billion at year-end 1996. Shareholders' equity was $7.5 billion ($101.98 per share) at June 30, 1997, compared with $7.2 billion ($97.15 per share) at December 31, 1996.

- 6 - Quarterly earnings are available on CIGNA's home page on the Internet (http://www.cigna.com). Statements not dealing with historical results are forward-looking and are based on estimates, assumptions and projections. CIGNA cautions the reader that actual results could differ materially from those expected by CIGNA, depending on the outcome of certain factors including: 1) adverse catastrophe experience in CIGNA's property and casualty businesses; 2) adverse property and casualty loss development for events that CIGNA insured in prior years; 3) an increase in medical costs in CIGNA's health care operations, including increases in utilization and costs of medical services; 4) heightened competition, particularly price competition, reducing product margins and constraining growth in CIGNA's businesses; 5) significant changes in interest rates; and 6) charges associated with the Healthsource acquisition.

CIGNA CORPORATION [CIGNA LOGO] COMPARATIVE SUMMARY OF FINANCIAL RESULTS (Dollars in millions, except per share amounts) <TABLE> <CAPTION> Three Months Ended Six Months Ended June 30, June 30, 1997 1996 1997 1996 <S> <C> <C> <C> <C> REVENUES Premiums and fees $ 3,482 $ 3,499 $ 6,870 $ 6,889 Net investment income 1,062 1,111 2,115 2,194 Other revenues 163 152 323 294 Realized investment gains (losses) 12 (31) 56 (1) -------- -------- -------- -------- Total $ 4,719 $ 4,731 $ 9,364 $ 9,376 ======== ======== ======== ======== OPERATING INCOME (LOSS) BY SEGMENT (1) Employee Life and Health Benefits: Indemnity operations $ 68 $ 69 $ 126 $ 125 HMO operations 58 52 117 108 -------- -------- -------- -------- Total Employee Life and Health Benefits 126 121 243 233 Employee Retirement and Savings Benefits 53 44 107 95 Individual Financial Services 48 42 95 74 Property and Casualty: International 36 36 69 65 Domestic 23 20 46 32 -------- -------- -------- -------- Ongoing operations 59 56 115 97 Run-off operations -- 3 1 4 -------- -------- -------- -------- Total Property and Casualty 59 59 116 101 Other Operations (16) (14) (31) (32) -------- -------- -------- -------- Total $ 270 $ 252 $ 530 $ 471 ======== ======== ======== ======== NET INCOME (LOSS) BY SEGMENT Employee Life and Health Benefits: Indemnity operations $ 70 $ 65 $ 132 $ 119 HMO operations 58 52 117 108 -------- -------- -------- -------- Total Employee Life and Health Benefits 128 117 249 227 Employee Retirement and Savings Benefits 54 40 116 101 Individual Financial Services 47 40 102 74 Property and Casualty: International 42 39 83 75 Domestic 25 16 47 33 -------- -------- -------- -------- Ongoing operations 67 55 130 108 Run-off operations (1) (4) 1 (7) -------- -------- -------- -------- Total Property and Casualty 66 51 131 101 Other Operations (16) (17) (31) (34) -------- -------- -------- -------- Total $ 279 $ 231 $ 567 $ 469 ======== ======== ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING (thousands) 74,740 76,821 74,664 76,854 EARNINGS PER SHARE: Operating income (1) $ 3.61 $ 3.28 $ 7.10 $ 6.13 After-tax realized investment gains (losses) 0.12 (0.28) 0.49 (0.03) -------- -------- -------- -------- Net income $ 3.73 $ 3.00 $ 7.59 $ 6.10 ======== ======== ======== ======== SHAREHOLDERS' EQUITY at June 30 $ 7,548 $ 6,885 ======== ======== SHAREHOLDERS' EQUITY PER SHARE at June 30 $ 101.98 $ 90.40 ======== ======== </TABLE> (1) Operating income (loss) is defined as net income (loss) excluding after-tax realized investment results.