Yesterday, 9:22 AM
Yesterday, 8:56 AM
- Cigna (NYSE:CI) -8% premarket after reporting lower than expected Q2 earnings and cutting its full-year earnings outlook, results that may take on extra weight amid questions about the prospects of its acquisition by Anthem.
- CI says its disability, life and accident insurance business swung to a $12M operating loss in Q2 from a $106M a year earlier, following modifications to its claims management process implemented in Q1.
- CI says it spent $0.788 of every premium dollar on medical claims in its commercial business, up from $0.775 per dollar a year ago; in the government business, the medical loss ratio was $0.864 per dollar vs. $0.844 a year ago.
- CI says medical membership held steady at 15.1M.
- For FY 2016, CI says it now sees EPS of $7.75-$8.10 vs. $9.28 analyst consensus estimate and prior guidance of $8.95-$9.35; it forecasts full-year revenues to grow by mid single digits vs. consensus +5.7% Y/Y and $39.8B.
Thu, Jul. 7, 12:55 PM
- Humana (NYSE:HUM) has tumbled, now down 7.8% in the past few minutes, on chatter that it and Aetna are to meet with the Justice Dept. to discuss "significant" concerns.
- Other insurers took a dip on the news. Aetna (NYSE:AET), set for a $37B takeover of Humana, has slid from positive ground to a 1.5% loss on the day. UnitedHealth (NYSE:UNH) is off 0.7%. Cigna (NYSE:CI) has fallen into the red, -0.4%.
- Reports had Aetna set to sell several billion dollars worth of assets to ease regulatory concerns over the deal.
Tue, Jun. 28, 8:38 AM
- Anthem (NYSE:ANTM) appears ready to walk away from its proposed $48B acquisition of healthcare insurance rival Cigna (NYSE:CI) because of regulatory headaches, NY Post reports.
- ANTM CFO John Gallina told a group of analysts last week that the company was working on “remediation plans” that include buying assets from Aetna (NYSE:AET), according to the report; it is assumed that ANTM would not be considering buying assets if it intended to move forward with plans to buy CI.
- The deal has a $1.85B breakup fee, but the companies reportedly have begun talks about renegotiating the amount.
Nov. 19, 2015, 3:01 PM
- Medical insurers and managed care providers are taking it on the chin today. UnitedHealth Group (UNH -5.5%) brought the rain with its softer earnings guidance as a result of weaker demand for individual insurance purchased through exchanges. It seems that the premium hikes, which the Affordable Care Act was supposed to curtail, are having their predictable effect.
- Previously: UnitedHealth Group down 6% on lowered guidance (Nov. 19)
- Related tickers: (AET -7.3%)(CI -5.7%)(HUM -4.2%)(CNC -9%)(ANTM -6.8%)(WCG -4.6%)(MGLN -4.4%)(HNT -5.2%)
Jul. 23, 2015, 9:15 AM
Jul. 22, 2015, 6:30 PM
- Anthem (NYSE:ANTM) is close to a deal to buy Cigna (NYSE:CI) for around $187/share -- more than $48B total -- that could be announced as soon as tomorrow afternoon, Dow Jones is reporting.
- The move would create the country's largest insurer, with a combined current market cap of just over $80B.
- Cigna had rejected an earlier $47.5B bid as "inadequate."
- If this deal and Aetna's $34B agreement to buy Humana are both approved and finished, the five major U.S. health insurers would drop to three.
- After hours: CI +7.2%; ANTM -0.5%.
- Previously: Anthem and Cigna at the table again over possible merger (Jul. 02 2015)
Jun. 25, 2015, 10:26 AM| Jun. 25, 2015, 10:26 AM | 87 Comments
Jun. 22, 2015, 9:18 AM
Jun. 15, 2015, 12:47 PM
Jun. 15, 2015, 12:18 PM
- The two companies have been in discussions for months and within the last ten days Anthem (ANTM +1.9%) has made two bids for Cigna (CI +9.5%), with the last being about $175 per share.
- So far, Anthem's efforts have been rebuffed by Cigna.
- Source: WSJ
- Previously: Humana spikes 20% after WSJ report says it wants to sell itself (May 29)
May 29, 2015, 2:12 PM
- Humana (HUM +19.6%) surges following a WSJ report that it is exploring a potential sale after receiving indications of takeover interest, and has hired Goldman Sachs to help it explore a potential sale.
- Sources say Aetna (AET +2.2%) and Cigna (CI +5.2%) are among companies that have held preliminary discussions with HUM.
- HUM is one of five health insurers that bankers and analysts have long considered ripe for consolidating the industry, including AET, CI, UnitedHealth (UNH +1%) and Anthem (ANTM +2.6%).
Mar. 4, 2015, 12:11 PM
- Hospitals rally on comments from Supreme Court Justice Anthony Kennedy, often a swing vote in important cases. He says there is a powerful point to the Obama administration's argument that the Affordable Care Act would fall apart if the subsidies were ruled invalid.
- The Court is currently hearing arguments in the case King v. Burwell, which challenges federal subsidies in states that did not create their own health insurance exchanges. Its final decision will not be announced until June, though.
- Hospitals and health insurers have the most at stake. They have benefited greatly since the law was signed in 2010. To date, 11.4M Americans have signed up for coverage in 2015, giving both groups more paying customers and potentially cutting the number of non-paying emergency room visits. If the subsidies were ruled invalid then many people would drop coverage due to the higher cost.
- Related tickers: (HCA +6.2%)(THC +5.4%)(UHS +2.6%)(CYH +5.4%)(LPNT +3.3%)(SEM -0.9%)(SSY)(HUM +0.1%)(CI -0.4%)(CNC)(MOH +0.3%)(ANTM +0.5%)(UNH +0.3%)(MGLN +0.3%)(WCG +0.3%)
Jul. 25, 2014, 11:05 AM
May 1, 2014, 9:52 AM
- Cigna's (CI +3.5%) net profit jumped to $528M from $57M a year earlier, when the health insurer took a major charge for a reinsurance transaction.
- Global health-care: premiums and fees +2.9% to $5.99B, adjusted margin slips to 6.6% from 6.7%.
- Disability and life-insurance: premiums and fees +6.7% to $916M, adjusted margin grows to 6.7% from 5.2%.
- Total medical customers edges up to 14.2M from 14.1M a year earlier and from almost 14.1M in Q4.
- Increases FY EPS guidance to $7.05-7.35 from a prior outlook of $6.80-7.20 a share. Cigna also expects consolidated adjusted income from operations of $1.93-2B.
- Analysts predict FY EPS of $7.17. (PR)
Feb. 7, 2014, 8:49 AM
- Cigna (CI) -3.9% premarket after Q4 earnings dropped 11% as global health care margins slipped and it lost members from the prior quarter.
- Issues downside guidance for FY 2014, seeing EPS of $6.80-$7.20 vs. $7.32 analyst consensus estimate.
- The global health care segment, CI's largest, posted 6% higher premiums and fees; adjusted margin in the division fell to 5% from 6.7%, reflecting higher medical costs in its Medicare Advantage business.
- Premiums and fees revenue rose 6.7% to $7.28B; total overall revenue gained 7% to $8.15B.
- Total medical customers rose 1.2% to 14.22M from 14.05M a year ago, but fell from 14.3M in Q3.
Cigna Corp. provides medical, dental, disability, life and accident insurance and related products and services to businesses, governmental and non-governmental organizations and individuals. The company operates through following segments: Global Health Care, Group Disability and Life, Global... More
Industry: Health Care Plans
Country: United States
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