Connecticut General Life Insurance Company - Page 6

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            only life insurance company in the CIGNA Group, earned the                                   
            following income:                                                                            

                                   CNOL’s of Nonlife    Income                                           
                       Year        Companies      of ConnLife                                            
                       1982        ($  197,385,675)         $116,294,363                                 
                       1983        (   244,963,449)         82,316,221                                   
                       1984        (   553,077,555)         331,452,903                                  
                       1985        ( 1,229,220,860)         274,458,803                                  

                  The above CNOL’s of the nonlife companies consisted of                                 
            CNOL’s of both eligible companies under section 1503(c)(2)                                   
            (namely, nonlife companies that had been members of the prior CG                             
            Group and the CIGNA Group for at least 5 years) and ineligible                               
            companies under section 1503(c)(2) (namely, nonlife companies                                
            that had not been members of the prior CG Group and the CIGNA                                
            Group for at least 5 years).  Because they had not been members                              
            of the prior CG Group and the CIGNA Group for at least 5 years,                              
            all of the companies that constituted members of the former INA                              
            and PHC Groups constituted ineligible nonlife companies.                                     
                  On the consolidated Federal income tax returns for 1982                                
            through 1985 -- in order to calculate the amount of net operating                            
            losses (NOL’s) attributable to the nonlife companies that had                                
            previously constituted members of the former INA and PHC Groups                              
            and that therefore constituted losses of ineligible companies                                
            that could not be used to reduce income of ConnLife (the sole                                
            life company in the consolidated CIGNA Group) -- the CIGNA Group                             
            treated all of the companies that constituted members of the                                 




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Last modified: May 25, 2011