Cigna Group is planning a “important” improve of its inventory buyback, committing an extra $10 billion to the plan after calling off its pursuit of Humana Inc.
The buyback will increase Cigna’s complete share repurchase authority to $11.3 billion, the Bloomfield, Connecticut-based firm mentioned Sunday. Cigna can also be abandoning discussions with Humana, in keeping with an individual with data of the matter who requested to not be recognized.
The Wall Avenue Journal reported earlier Sunday that Cigna is strolling away from the merger talks. Humana didn’t instantly reply to requests for remark.
Cigna expects to repurchase a minimum of $5 billion of widespread inventory by the top of the primary half of 2024, in keeping with its assertion. A portion of the repurchase will happen by means of an accelerated program carried out within the first quarter.
“We imagine Cigna’s shares are considerably undervalued and repurchases characterize a value-enhancing deployment of capital as we work to help high-quality care, improved affordability, and higher well being outcomes,” mentioned David Cordani, Cigna’s chairman and chief govt officer. “As we take a look at the broader panorama and the strategic alternatives earlier than us, we’ll stay financially disciplined with a transparent concentrate on executing in opposition to our technique, delivering worth for our shareholders, and investing in our future.
Whereas Cigna didn’t remark publicly on Humana, Cordani mentioned within the assertion that the corporate will “think about bolt-on acquisitions aligned with our technique, in addition to value-enhancing divestitures.”
— With help from John Tozzi