Cigna to invest billions in Medicare advantage and several other sectors this year
Publish Date :
The Chief Executive of Cigna Corp, Mr. David Cordani announced during investorsmeeting that Cigna Corp has around USD 7 billion to USD 14 billion in capital.It could be used this year for mergers and acquisitions in several areas, as well as Medicare Advantage for older people.
On this Wednesday, it was company's first meeting with investors ever since its deal to be purchased by Anthem Inc.,formallyended last month, Mr. Cordani also said that company would do minimum USD 2 billion in share redemptions this year and set a target of USD 16 in profit per share for 2021.
Cigna Corp is one of leading health insurers who are looking for mergers and acquisition, considering areas such as physician-related businesses, building out its pharmacy, its government risk-based insurance programs and its retail capabilities. And their pharmacy management business is also expecting expansionby both internally and through acquisitions.
Many Wall Street analysts have lately written research notes about the virtues of Cigna buying Humana; a deal which was under consideration prior to the Anthem deal. This shifted focus regarding Cigna's Merger & Acquisitions prospects around rival Humana Inc.,on Wednesday.
During an interview, Mr. Cordani refused to talk about the chance that the Cigna is interested in buying Humana or any acquisitions with them.
"We tend not to get too fixated on the headlines," Cordani said. He further added that, company conceives deals based on if they generate value for investors and shareholders, and moves forward if they do.