A.M. Best Places Ratings of Cigna Corporation and Its Subsidiaries Under Review with Developing Implications
June 24 2015 - 3:46PM
Business Wire
A.M. Best has placed the financial strength rating (FSR)
of A (Excellent) and the issuer credit ratings (ICR) of “a” of the
key life/health subsidiaries, the medical health maintenance
organizations (HMO) and dental HMO subsidiaries of Cigna
Corporation (collectively referred to as Cigna) (Bloomfield,
CT) [NYSE:CI] under review with developing implications.
Concurrently, the ICR of “bbb” of Cigna and its existing debt
ratings have been placed under review with developing implications.
A.M. Best also has placed the FSRs of A- (Excellent) and the ICRs
of “a-” of four Cigna supplemental benefit companies and six Cigna
HealthSpring companies under review with developing implications.
(Please see link below for a detailed listing of the companies and
ratings.).
The actions follow the recent public announcement by Anthem,
Inc. (Anthem) (Indianapolis, IN) [NYSE:ANTM] of its intent to
acquire Cigna for $184 a share in cash and stock. Although the
price represents significant premium to Cigna’ stock price, Cigna’s
board publicly rejected the proposal, claiming that it is not in
the best interest of shareholders. However, Anthem reiterated its
commitment to the proposal and publicly disclosed details of the
potential transaction. The transaction is planned to be financed
through a combination of cash and new debt with expected financial
leverage reaching around 50% following the deal completion. The
acquisition will be subject to regulatory approval in multiple
jurisdictions, which could extend until the end of 2016.
The under review status reflects the high degree of uncertainty
regarding the final outcome of Cigna –Anthem negotiations. A.M.
Best will continue its discussions with Cigna’s management team and
conduct further analysis to determine the final rating opinion.
For a complete listing of FSRs, ICRs and debt ratings for
Cigna’s key life/health subsidiaries, medical health maintenance
organizations (HMO) and dental HMO subsidiaries, please visit Cigna
Corporation.
This press release relates to rating(s) that have been
published on A.M. Best's website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please visit A.M.
Best’s Ratings & Criteria Center.
A.M. Best Company is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2015 by A.M. Best Company,
Inc. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20150624006385/en/
A.M. BestDoniella Pliss, 908-439-2200, ext.
5104Senior Financial
Analystdoniella.pliss@ambest.comorChristopher
Sharkey, 908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorValeria
Ermakova, +(44) 20 7397 0269Financial
Analystvaleria.ermakova@ambest.comorJim Peavy,
908-439-2200, ext. 5644Assistant Vice President, Public
Relationsjames.peavy@ambest.com
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