The Company estimates that total pre-tax costs related to its exit of the health insurance market will be approximately $175 million to $250 million. Such costs include:

The Company expects future premiums and current policyholder reserves to be inadequate to cover future claim payments and direct expenses during the wind down. As a result, the Company plans to record premium deficiency reserves for the period July 1, 2015 through December 31, 2016, net of recoverables under the Affordable Care Act ("ACA") risk mitigation programs. The range reflects uncertainty as to future claims experience on major medical policies, estimated recoverables under ACA risk-mitigation programs and timing and amount of expense reductions over the course of the wind down.

The Company's consolidated pre-tax results for the second quarter of 2015 will include approximately $100 million to $165 million of the total exit-related charges and the Company expects approximately $25 million to $35 million will be recorded in the second half of the year. The Company estimates total future incremental cash expenditures related to these costs will be $95 million to $110 million.

Additional charges and future cash expenditures may be incurred in 2015 and thereafter in connection with the exit. At this time, the Company is not able, in good faith, to make a determination of the timing or estimated amount or range of amounts to be incurred for any such additional charges or future cash expenditures. As permitted by Item 2.05 of Form 8-K, the Company will therefore file an amendment to this report upon the determination of such amounts.

CAUTIONARY STATEMENT - Some of the statements included in this Form 8-K, particularly those projecting the timing and amount of charges related to the wind down and exit, may be forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Actual charges and timing may differ materially from those projected herein due to numerous factors, including the Company's ability to implement the exit as planned, effective tax rates and unanticipated charges that may occur as a result of these actions. The Company undertakes no obligation to update any forward-looking statements in this Form 8-K as a result of new information or future events or developments. For a detailed discussion of risk factors that could affect our results, please refer to the risk factors identified in our annual and periodic reports, including but not limited to our 2014 Annual Report on Form 10-K and our First Quarter 2015 Form 10-Q, each as filed with the U.S. Securities and Exchange Commission.