The Strategist

US insurers Cigna and Humana are in merger talks



11/30/2023 - 11:02



According to The Wall Street Journal, US health insurers Cigna Corp. and Humana Inc. are in the midst of merger negotiations that might result in the formation of a significant competitor in the market.



The companies are reportedly in talks about a potential agreement that would be settled for stock and cash. The deal might be achieved by the end of the year.

With a valuation of over $140 billion, the business that would arise from the merger of Cigna and Humana would be a behemoth in the health insurance sector, able to take on market leaders CVS Health Corp. and UnitedHealth Group. However, the exact makeup of this entity is yet unknown.

Cigna and Humana had already explored combining in 2015. Instead, Humana then struck a deal with Aetna, which was later blocked by the antitrust authority. Consequently, CVS purchased Aetna in 2018.

source: wsj.com