Cigna In The Eye Of The Storm

About: Cigna Corporation (CI), Includes: AET, HUM
by: Douglas Adams
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Douglas Adams
Macro, monetary policy, research analyst, investment advisor

Cigna's momentum-fueled stock price to date belies its underlying reliance on healthcare premiums that are under siege with the release of the House and Senate replacements of ACA.

Program expense growth ran twice that of premium growth in 2016 YOY and three times premium growth since 2014.

The stock is up 24% year to date and, in the wake of the failed Anthem merger, is primed to fall up to 15% to $145 over the next 12 months.

Healthcare stocks in general, and Cigna (NYSE:CI) in particular, have displayed a surprising resiliency in the face of the turmoil stirred up by the passage of the House Republican replacement of the Affordable