Cigna Group plans a “important” improve in its share buybacks, allocating an extra $10 billion to the plan after calling off its pursuit of Humana Inc.
The buyback brings Cigna’s whole inventory repurchase authority to $11.3 billion, the Bloomfield, Connecticut-based firm mentioned Sunday. Cigna can also be abandoning discussions with Humana, in accordance with an individual acquainted with the matter who requested anonymity.
The Wall Road Journal reported earlier Sunday that Cigna would withdraw from merger talks. Humana didn’t instantly reply to requests for remark.
Cigna expects to repurchase no less than $5 billion in widespread inventory by the tip of the primary half of 2024, in accordance with its assertion. A part of the buyback will likely be applied via an accelerated program performed within the first quarter.
“We imagine Cigna shares are considerably undervalued and the repurchases signify an enhanced deployment of capital worth as we work to help high-quality care, enhance affordability, and obtain higher well being outcomes,” mentioned David Cordani, Chairman and CEO of Cigna. “. “As we have a look at the broader panorama and the strategic alternatives out there to us, we are going to stay financially disciplined with a transparent deal with executing on our technique, delivering worth to our shareholders, and investing in our future.
Whereas Cigna has not commented publicly on Humana, Cordani mentioned within the assertion that the corporate “will think about further acquisitions in keeping with our technique, in addition to value-enhancing divestitures.”
– With help from John Tozzi
