Cigna Rules Out Large-Scale M&A to Focus on Share Repurchases

(Bloomberg) -- Cigna Corp. is focusing on returning cash to investors with share repurchases and isn’t currently considering large deals like its reported consideration of acquiring Centene Corp. in 2021. 

The health giant plans to spend more than $7 billion buying back shares in 2022 and said it will continue seeking tuck-in and bolt-on deals, not “large-scale mergers or acquisitions,” according to a statement Monday. Cigna approached insurance rival Centene for preliminary talks last year, Bloomberg News reported in January.

In February the board approved increasing share repurchases by as much as $6 billion, to a total of $10 billion. Cigna said its stock was “trading at an attractive and compelling valuation.”

Cigna also approved putting an additional $450 million in its venture capital arm. The company said its divestiture of some international assets to Chubb Ltd. is expected to close in the second-quarter and generate $5.4 billion after taxes.

Cigna has repurchased shares worth $1.2 billion so far this year.

©2022 Bloomberg L.P.