"Cigna Nears Deal To Offload Medicare Business; Insurance Giant Is In Exclusive Talks To Sell Unit To Health Care Service Corp. For Between $3B And $4B" - WSJ
Portfolio Pulse from Benzinga Newsdesk
Cigna Corporation is reportedly in advanced negotiations to sell its Medicare Advantage business to Health Care Service Corp. The deal is estimated to be valued between $3 billion and $4 billion. Cigna, which had been expanding in the Medicare sector, is now in exclusive talks after running an auction for the unit.
January 03, 2024 | 4:11 pm
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Cigna is close to divesting its Medicare Advantage business to Health Care Service Corp. in a deal worth $3-4 billion, indicating a strategic shift for the company.
The sale of Cigna's Medicare Advantage business could lead to a positive short term impact on CI's stock price as it may be viewed as a strategic move to streamline operations and focus on more profitable segments. The deal size suggests a significant transaction for Cigna, which could also lead to a positive reaction from investors seeking a more focused business approach.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100