Cigna mulling sale of group benefits insurance business: report

A sign at the front of Cigna's headquarters
Cigna may sell off its group benefits insurance business, a new report suggests. (Cigna)

Cigna may sell off its group benefits business as it continues to focus on its healthcare options, according to a new report from Reuters. 

Sources tell the news outlet that Cigna is probing potential deals to shed its disability, life and accidental death and dismemberment plans, valued at $6 billion. The company is working with an investment bank to auction off this portion of its business, according to the article. 

When reached by FierceHealthcare, Cigna said it doesn’t comment on “rumors and speculation.” 

Innovation Awards

Submit your nominations for the FierceHealthcare Innovation Awards

The FierceHealthcare Innovation Awards showcases outstanding innovation that is driving improvements and transforming the industry. Our expert panel of judges will determine which companies demonstrate innovative solutions that have the greatest potential to save money, engage patients, or revolutionize the industry. Deadline for submissions is this Friday, October 18th.

“Given the dynamic marketplace, we continually review opportunities to ensure we continue to deliver value to our customers and clients,” Cigna said in a statement. 

RELATED: What the CEOs of the 8 largest insurers earned in 2018 

Cigna’s group benefits business could draw interest from other insurers in that market that are looking to build scale, the sources told Reuters. 

Cigna solidified its focus on the health benefits market by acquiring Express Scripts, the country’s largest pharmacy benefit management (PBM) company, last year. The $67 billion deal closed in December, and Cigna has already seen a significant financial boost over the past two quarters thanks to the deal. 

Vertical deals in this vein have been increasingly of interest in healthcare. 

Cigna’s biggest rivals in this consolidated market include healthcare giant UnitedHealth Group and CVS Health now that it has acquired Aetna. Anthem has also launched its own PBM in an effort to consolidate the supply chain.

Suggested Articles

Genealogy company Ancestry is expanding into genetic health testing, ramping up competition with 23andMe.

Oscar Health will appeal a judge’s decision to toss its lawsuit against Blue Cross and Blue Shield of Florida over insurance broker agreements.

Physician-led ACOs generated nearly seven times more savings in 2018 than ACOs led by hospitals, a new analysis finds.