AM Best Comments on Credit Ratings of Cigna Corporation Following Group Benefits Division Sale Announcement
December 19 2019 - 12:20PM
Business Wire
AM Best has commented that the Long-Term Issuer Credit
Rating (Long-Term ICR) of “bbb” and the Long- and Short-Term Issue
Ratings (Long-Term IR; Short-Term IR) of Cigna Corporation (Cigna)
(Headquartered in Bloomfield, CT) [NYSE:CI] remain unchanged
following Cigna’s recent announcement that it has signed a
definitive agreement to sell its group life and disability
insurance business to New York Life Insurance Company.
Additionally, the Financial Strength Ratings and Long-Term ICRs of
Cigna’s operating subsidiaries remain unchanged as well, with the
exception of the Credit Ratings of Life Insurance Company of North
America and Cigna Life Insurance Company of New York, which have
been placed under review with positive implications (see related
press release dated Dec. 19, 2019).
On Dec. 18, 2019, Cigna announced the sale of its group
insurance operations, which includes Life Insurance Company of
North America and Cigna Life Insurance Company of New York, in a
transaction valued at $6.3 billion. Cigna is expected to utilize
the proceeds of the transaction to pay down debt and for share
repurchases, with exact amounts to be determined. AM Best notes
that Cigna remains committed to reducing its financial leverage to
below 40% by year-end 2020. The transaction is expected to close in
2020 and is subject to regulatory approvals.
This press release relates to Credit Ratings that have been
published on AM 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 see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best’s
Credit Ratings. For information on the proper media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global credit rating agency, news publisher and
data provider specializing in the insurance industry. The company
does business in more than 100 countries. Headquartered in Oldwick,
NJ, AM Best has offices in cities around the world, including
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For
more information, visit www.ambest.com.
Copyright © 2019 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Joseph Zazzera, MBA Director +1 908 439 2200,
ext. 5797 joseph.zazzera@ambest.com
Sally A. Rosen Senior Director +1 908 439 2200,
ext. 5280 sally.rosen@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jim Peavy Director, Public Relations +1 908 439
2200, ext. 5644 james.peavy@ambest.com
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