Cigna denies renewed interest in merger with Humana

PHOTO | COSTAR Cigna headquarters in Bloomfield.

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Bloomfield-based health insurer Cigna Group stated unequivocally Monday that it is not seeking a merger with Kentucky-based health insurer Humana.

The statement was included in a news release issued before a scheduled meeting with investors to “reaffirm its capital priorities” for 2024. The statement appears to have been included to address widespread media reports published last month that said Cigna and Humana had resumed talks about a combination.

A combination of two of the top 10 U.S. health insurers would create a massive company with a combined market value worth more than $125 billion.

In its statement, the company said that “in light of recent and persistent speculation, The Cigna Group expects to communicate (to investors) that the company is not pursuing a combination with Humana Inc.”

The statement added that Cigna remains “committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive, and have a high probability to close.”

Cigna Group shares, which trade on the New York Stock Exchange under the symbol CI, jumped more than 7% in morning trading following the statement. Humana shares, which trade on the NYSE under the symbol HUM, fell more than 4%. Humana has not yet responded publicly to Cigna’s statement.

The Wall Street Journal first reported in late November 2023 that Cigna and Humana, based in Louisville, were discussing a stock-and-cash deal that could be finalized by the end of the year.

Cigna abandoned that effort in December 2023, however, after the two companies failed to agree on the price and other terms, the WSJ reported at the time. Cigna subsequently announced plans to buy back $10 billion worth of shares, precluding an acquisition.

Speculation had arisen last month that the two companies were talking again, and the re-election of Donald Trump fueled investors’ hopes even further that the massive deal would be approved despite antitrust concerns.