I actually took 3 or 4 minutes and looked at the numbers and recent income statements of one of the companies, Cigna. In 2006 they had net income of $1.16 billion. In 2007 it was, $1.11 billion. In 2008 it was $.292 billion. In 2009 it was $1.3 billion. This patterns is not impressive and some of the conclusions being drawn from the data is simply dishonest. the company actually collected less in premiums in 2009 compared to 2008. To really understand the difference, one has to understand the " Run-off Reinsurance" line on the income statement, there was a $.830 billion dollar swing from '08 to '09...this appears to be an accounting rule change. If I invest another minute or two, I could probably find out exactly what it is, but at some point I would expect responsible people to do their own homework.
Also, the "Selling, General & Admin Expenses" ranged from $5.08 billion in 2006 to a high of $5.7 billion in 2009. That is a 12% difference. In 2007 the amount was $5.52 billion and went down to $5.13 billion in 2008. This number tends to fluctuate within a range with a long-term up trend consistent with general business cost increases in this country.
From their recent 8K, costs:
...........................................2009........................2008
Health Care.....................$729.........................715
Disability and Life............$279..........................275
International.....................$182.........................188
In these areas their costs increased year over year with the exception of international operational costs.
EDGAR Pro