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.” 

Free Daily Newsletter

Like this story? Subscribe to FierceHealthcare!

The healthcare sector remains in flux as policy, regulation, technology and trends shape the market. FierceHealthcare subscribers rely on our suite of newsletters as their must-read source for the latest news, analysis and data impacting their world. Sign up today to get healthcare news and updates delivered to your inbox and read on the go.

“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

Hospitals are already signaling a legal challenge to a final rule from CMS on price transparency, but the agency is ready.

It is time to fight fraud and waste the right way: by reducing burdens on providers, streamlining oversight and putting patients over paperwork.

A former health IT employee at a New York hospital was charged with compromising dozens of co-workers' email accounts and stealing information.