Cigna Declines Humana Merger Amid Investor Meetings

Cigna, in a recent announcement, clarified its stance regarding the ongoing speculation about a potential merger with Humana, stating it is not pursuing such a merger. The news comes as Cigna prepares for a series of meetings with investors and analysts. The company emphasized its commitment to its existing merger and acquisition criteria, focusing solely on opportunities that are strategically aligned, financially beneficial, and likely to succeed. Cigna also took the opportunity to reaffirm its forecast for the full-year 2024 consolidated adjusted EPS of a minimum of $28.40 per share with an anticipated growth rate of 10% into 2025. In its recent financial disclosures, Cigna reported a significant 30% increase in third-quarter sales, amounting to $63.7 billion, outstripping forecasts. This growth was bolstered by the performance of Evernorth Health Services, though partially offset by a decrease in net investment income. Discussions of a merger had initially gained traction following Bloomberg's report of revived talks to combine with Humana, which would extend Cigna’s reach in Medicare Advantage. Nevertheless, Cigna reiterated its strategic goal of generating shareholder value through operational and financial milestones along with disciplined capital management, citing $6 billion in stock repurchases this year. The company has outlined plans to continue this trajectory using proceeds from the sale of its Medicare businesses, closing in early 2025. Cigna's stock responded positively to these announcements, increasing by nearly 8% in premarket trading, while Humana experienced a decline.