by Paige Minemyer | Dec 10, 2019 5:10pm
Cigna is in talks with
New York Life Insurance Co. to sell off its group benefits insurance
business in a deal that could be worth $6 billion, The Wall Street
Journal reports.
Sources familiar with
the discussions tell the news organization the business line—which includes
life, accident and disability-income insurance—has also drawn interest from
companies such as MetLife and Sun Life Financial, but New York Life is the
front-runner.
The two are aiming to
make a final agreement by the end of the year, according to the article.
If the deal with New
York Life falls through, Cigna could pivot and negotiate with others waiting in
the wings, according to the article.
New York Life’s
current group life insurance business is smaller than Cigna’s, and a
final deal would elevate it to one of the top five companies in the nation in
market share for such benefits, the WSJ reports. When reached
by FierceHealthcare, Cigna said it doesn’t comment on “rumors and
speculation.”
It was first revealed
in August that Cigna was eyeing a buyer for its $6
billion group benefits insurance business as it aims to
consolidate its focus on health benefits.
Cigna solidified that
focus in its acquisition of Express Scripts, the nation’s largest pharmacy
benefit manager, a $67 billion deal that was finalized a year ago.
The insurer has seen a significant financial boost over the past three quarters
thanks in large part to the Express Scripts deal.
Reaching a deal to
sell its group benefits insurance business could also allow Cigna to pay down
some of its debts, which sit at about $39 billion.
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