The rating actions follow the clarity on the timing of the debt issuance and discussions with the company regarding the Express Scripts Holding Company (Express Scripts) transaction.
The majority of Cigna’s operating entities are collectively referred to as
Cigna Life & Health’s balance sheet strength assessment of strong is supported by risk-adjusted capitalization at the strongest level, as measured by Best’s Capital Adequacy Ratio, and good liquidity with cash flows from operations and the insurance entities, which have a line of credit from an intermediate holding company for cash flow needs. However, the insurance subsidiaries provide sizeable dividends to the parent, in excess of
The forthcoming issuance of up to
Cigna Life & Health has reported a trend of strong earnings with return on revenue of more than 7%, and return on equity in excess of 25%, while exhibiting steady premium growth. The earnings are driven by Cigna Life & Health’s core medical operations and its group life and disability business. Additionally, earnings improved in 2017 from continued solid earnings in the medical business and initiatives implemented in its group life and disability business. Furthermore, Cigna has limited exposure to the Patient Protection and Affordable Care Act (ACA), as the majority of its medical business is employer group self-funded or administration services only (ASO) with a nominal amount of individual business. The addition of Express Scripts’ clinical capabilities also could strengthen Cigna’s clinical platform.
Cigna maintains a strong market presence in
The rating upgrades of
The ratings of
The ratings of
For a complete listing of the members of Cigna Corporation’s FSRs, Long-Term ICRs and Long- and Short-Term IRs, please visit
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