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.
Oct. 31, 2013, 9:42 AM
- Shares of Cigna (CI +5%) rally as Q3 results top estimates.
- Revenues rise 10% Y/Y in Q3, while adjusted income from operations jumps 12%.
- Premiums and fees growth by segment: Global Health Care, +7%; Global Supplemental Benefits, +29%; Group Disability and Life, +9%.
- FY13 outlook: $6.70-6.90/share versus previous guidance of $6.25-6.65/share and against consensus of $6.65. (PR)
Oct. 28, 2013, 5:12 AM
- The Affordable Care Act appears to have so far proved beneficial to investors in health insurers.
- Over the past year, the share prices of the five top firms in the sector — Aetna (AET), WellPoint (WLP), UnitedHealth Group (UNH), Humana (HUM) and Cigna (CI) — have increased an average of 32%, well above the S&P 500's rise of 24%.
- Health insurers predict that their earnings will rise after Obamacare is fully in effect, as they expect to gain more customers from people being forced to buy coverage. This is seen offsetting the cost of increased regulations. A fall in healthcare costs has also helped the sector.
Jun. 10, 2013, 7:15 PM
Cigna (CI) is expanding its relationship with pharmacy-benefit manager Catamaran (CTRX) through a new 10-year deal that CI says will combine strengthen the two companies' drug-purchasing scale and add to the insurers' earnings. The deal is a big win for CTRX, whose shares have been under pressure for months over concern that the company was about to lose the account. CTRX +14% AH.| Jun. 10, 2013, 7:15 PM
May 14, 2013, 10:02 AM
"We believe one of the biggest questions on investors' minds is can [they] grow FY14 earnings," says Jefferies, stating what might fairly be called "the obvious" in a note upgrading WellPoint (WLP +1.5%) to Buy from Hold and raising the stock's price target to $92. After a "deep dive" analysis, the investment bank says it sees 7-8% EPS growth against the Street's 2.4% consensus and predicts $8.61 per share for FY14, making WLP the cheapest MCO stock, trading at 8.8x forward earnings. Meanwhile, Cigna (CI -1.8%) is "ready for a breather" and catches a downgrade to Hold from Buy — CI's CFO Ralph Nicoletti announced Monday he is leaving the company for personal reasons.| May 14, 2013, 10:02 AM