The Key Elements of Cigna’s Health Insurance Empire (Part 1 of 16)
With a market capitalization of $32.9 billion, Cigna (CI) is one of the largest insurance providers in the US. The company’s headquarters are in Bloomfield, Connecticut. The company provides health benefits and services to about 80 million people spread across 30 countries.
Cigna registered revenues of approximately $32.4 billion in 2014. It was ranked 97th in the Fortune 500 rankings for 2014.
The above graph shows that Aetna (AET), UnitedHealth Group (UNH), and Cigna (CI) have consistently outperformed the Vanguard Health Care ETF (VHT). UnitedHealth Group has been the best performer, delivering 29.1% capital gains on an annualized basis from January 2010 to March 2015. Anthem (ANTM), Cigna, and Aetna registered 19.4%, 27.1%, and 26% in annualized capital gains, respectively.
In 1982, Cigna was formed by the merger of INA (Insurance Company of North America) and CG (Connecticut General Life Insurance). INA was organized as a marine, life, and fire insurance company and expanded its operations in the US, the United Kingdom, Europe, and South America. In 1897, INA was the first American company to provide insurance services in China. In 1919, CG forayed into the health insurance industry and became a leader in the group health segment by 1937. In 1978, INA entered the health insurance business (IYH) by acquiring an HMO (health maintenance organization) in the Los Angeles area. The merger of INA and CG was considered to be the largest merger of two financial services companies at the time.
Following the merger, Cigna aggressively expanded its business by introducing new offerings such as dental plans and innovative, flexible plans for employees. The company also made acquisitions to strengthen its underwriting practices and to enter the behavioral health market.
Cigna is at the forefront of the sector, expanding its product portfolio and entering international markets. The company has made acquisitions to attract new customer segments, strengthen its health provider network, and adopt the latest health technologies.
Browse this series on Market Realist:
- Part 2 – Cigna: Medicare and Medicaid Beneficiaries Top Earners
- Part 3 – Cigna’s Customer Segments a Healthy Mix
- Part 4 – Cigna’s Commercial Business Mostly Self-Insured
- Health Care Industry
Source Article from http://finance.yahoo.com/news/cigna-us-insurance-provider-32-153856478.html