Cigna Seeks to Sell Group Insurance Business
Cigna has been looking to sell its group benefits insurance business, according to several recent news reports. Cigna’s group benefits business includes group disability policies, along with life, and accidental and dismemberment coverage policies. In total, Cigna’s group benefits insurance business is estimated to be valued at as $6 billion dollars.
Industry experts have interpreted this exploration to sell as a possible signal of Cigna’s intent to focus on their healthcare and medical provider operations arm and/or potentially pay down its long-term debt, which totaled $37 billion as of June 2019.
Although any sale is speculative at this point, it’s not unusual for insurers to sell portions of their businesses (e.g. both group and individual disability policies) to other insurers, or turn these policies over to third-party administrators. If Cigna does go through with the sale, it could impact how its disability claims are administered on an ongoing basis.
Cigna seeks sale of group benefits insurance business, valued as high as $6 billion, Reuters, Aug. 20, 2019
Bruce Japsen, Cigna May Divest Group Life Business To Keep Up With Rivals Buying Providers, Forbes, Aug. 20, 2019