Cigna is one of the largest insurance companies in the US. It has a host of large corporations and institutions as its customers. Cigna offers pharmacy benefit management and health insurance services in the US. It concentrates on providing healthcare services to large organizations that are capable of self-funding their insurance benefits. Additionally, Cigna is focusing on multiple expansion strategies as well such as geographic expansion as well as expansion in the pharmacy benefit management segment through its Express Scripts acquisition.
More About Cigna Corporation
Cigna is the combination of two names, Connecticut General Life Insurance and INA Corporation. Cigna Corporation was formed in 1982 as a result of a merger between the two companies. Cigna has grown over the decades to now operate in 30 countries around the world. Cigna has close to 36,000 employees and manages well over $50 billion in assets. Cigna offers its healthcare-related services through a variety of customizable plans whose premiums are paid by corporations and US government institutions. The attractive aspect about Cigna’s business model is that healthcare cost has historically trended above the inflation rate. Therefore, Cigna looks like an attractive investment for a long-term investor. Cigna has adopted a clear policy for growth, focusing on government institutions as well as international markets.
Cigna’s stock closed at $206 on 8th February 2021. The stock was down more than 6% for the preceding 30 days. It was trading at a reasonable 1.94% dividend yield at the close of day on 8th February 2021. On a 1-year basis, the stock was down 2% during a time when healthcare has been in focus around the world. Cigna’s peer is Anthem Inc. Its stock closed at $287 on 8th February 2021. At the time, the stock was trading at a 1.57% dividend yield. However, Anthem’s stock was down 15% on a 1-month basis.