Cigna Group is planning a “significant” improve of its inventory buyback, committing an extra $10 billion to the plan after calling off its pursuit of Humana Inc.
The buyback will increase Cigna’s whole share repurchase authority to $11.3 billion, the Bloomfield, Connecticut-based firm mentioned Sunday. Cigna can be abandoning discussions with Humana, in keeping with an individual with data of the matter who requested to not be recognized.
The Wall Avenue Journal reported earlier Sunday that Cigna is strolling away from the merger talks. Humana didn’t instantly reply to requests for remark.
Cigna expects to repurchase no less than $5 billion of widespread inventory by the tip of the primary half of 2024, in keeping with its assertion. A portion of the repurchase will happen by an accelerated program carried out within the first quarter.
“We believe Cigna’s shares are significantly undervalued and repurchases represent a value-enhancing deployment of capital as we work to support high-quality care, improved affordability, and better health outcomes,” mentioned David Cordani, Cigna’s chairman and chief government officer. “As we have a look at the broader panorama and the strategic alternatives earlier than us, we’ll stay financially disciplined with a transparent concentrate on executing towards our technique, delivering worth for our shareholders, and investing in our future.
Whereas Cigna didn’t remark publicly on Humana, Cordani mentioned within the assertion that the corporate will “consider bolt-on acquisitions aligned with our strategy, as well as value-enhancing divestitures.”
— With help from John Tozzi
