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AM Best affirms the credit ratings of The Cigna Group and its subsidiaries, reflecting strong balance sheet strength, operating performance, and favorable business profile. The ratings are stable, indicating a positive outlook. Cigna's core U.S. health insurance entities show consistent cash flow, strong earnings, and robust capitalization. The organization's high goodwill/intangibles and debt management are notable. Cigna's commercial segment drives earnings, with positive growth expected in 2024. The sale of its Medicare business to Health Care Service is on track, enhancing Cigna's business profile. Overall, Cigna showcases a strong position in the health care market, supported by a diverse product portfolio and comprehensive ERM program.
AM Best conferma i rating di credito di The Cigna Group e delle sue filiali, riflettendo una forte solidità del bilancio, performance operative e un profilo aziendale favorevole. I rating sono stabili, indicando un prospetto positivo. Le entità centrali di assicurazione sanitaria di Cigna negli USA mostrano un flusso di cassa costante, utili solidi e una capitalizzazione robusta. La gestione del buonavolontà/intangibili e del debito dell'organizzazione sono notevoli. Il segmento commerciale di Cigna guida gli utili, con una crescita positiva prevista nel 2024. La vendita del suo business Medicare a Health Care Service è in corso, potenziando il profilo aziendale di Cigna. In generale, Cigna dimostra una posizione forte nel mercato della sanità, supportata da un portafoglio prodotti diversificato e un completo programma di gestione del rischio aziendale (ERM).
AM Best afirma las calificaciones crediticias de The Cigna Group y sus subsidiarias, reflejando una fuerte fortaleza de balance, rendimiento operativo y un perfil comercial favorable. Las calificaciones son estables, señalando una perspectiva positiva. Las entidades de seguros de salud principales de Cigna en EE.UU. muestran un flujo de caja consistente, fuertes ganancias y una capitalización robusta. La gestión de activos intangibles/buena voluntad y deuda de la organización son notables. El segmento comercial de Cigna impulsa las ganancias, con un crecimiento positivo esperado en 2024. La venta de su negocio de Medicare a Health Care Service va por buen camino, mejorando el perfil comercial de Cigna. En general, Cigna muestra una posición fuerte en el mercado de la salud, respaldada por un portafolio de productos diversificado y un programa ERM integral.
AM Best는 Cigna Group 및 해당 자회사의 신용등급을 긍정적으로 유지하여, 강력한 재무 상태, 운영 성과 및 유리한 비즈니스 프로필을 반영합니다. 등급은 안정적이며 긍정적인 전망을 나타냅니다. Cigna의 주요 미국 건강 보험 엔티티는 일관된 현금 흐름, 강력한 수익과 견고한 자본화를 보여줍니다. 조직의 높은 영업권/무형자산 및 부채 관리는 주목할 만합니다. Cigna의 상업 부문이 수익을 추진하며, 2024년에 긍정적인 성장이 예상됩니다. Medicare 사업을 Health Care Service에 매각하는 것은 순조롭게 진행되고 있어 Cigna의 비즈니스 프로필을 강화합니다. 전반적으로, Cigna는 다양한 제품 포트폴리오와 종합적인 ERM 프로그램에 의해 지원되는 건강 관리 시장에서 강력한 위치를 과시합니다.
AM Best confirme les notations de crédit de The Cigna Group et de ses filiales, reflétant une solide force de bilan, des performances opérationnelles et un profil d'entreprise favorable. Les notations sont stables, indiquant une perspective positive. Les entités principales d'assurance santé de Cigna aux États-Unis montrent un flux de trésorerie constant, de solides bénéfices et une capitalisation robuste. La gestion des goodwill/immobilisations incorporelles et de la dette de l'organisation sont remarquables. Le segment commercial de Cigna entraîne les bénéfices, avec une croissance positive attendue en 2024. La vente de son activité Medicare à Health Care Service est en bonne voie, améliorant le profil d'entreprise de Cigna. Globalement, Cigna présente une position forte sur le marché de la santé, soutenue par un portefeuille de produits diversifié et un programme complet de gestion des risques d'entreprise (ERM).
AM Best bestätigt die Kreditratings von The Cigna Group und ihren Tochtergesellschaften, was eine starke Bilanzstärke, Betriebsleistung und ein günstiges Geschäftsprofil widerspiegelt. Die Ratings sind stabil und deuten auf eine positive Aussicht hin. Cignas Kerngesundheitsversicherungsunternehmen in den USA zeigen einen konstanten Cashflow, starke Gewinne und eine robuste Kapitalisierung. Die Verwaltung von hohem Goodwill/Immateriellen Werten und Schulden der Organisation ist bemerkenswert. Cignas Geschäftsbereich treibt den Gewinn voran, mit positivem Wachstum, das für 2024 erwartet wird. Der Verkauf seines Medicare-Geschäfts an Health Care Service ist auf Kurs und verbessert Cignas Geschäftsprofil. Insgesamt zeigt Cigna eine starke Position im Gesundheitsmarkt, unterstützt durch ein vielfältiges Produktportfolio und ein umfassendes ERM-Programm.
Positive
Strong balance sheet strength and operating performance
Positive outlook with stable ratings
Consistent cash flow and strong earnings
Robust capitalization and debt management
Commercial segment drives earnings growth
Sale of Medicare business to enhance business profile
Strong position in health care market with diverse product portfolio
Comprehensive ERM program for risk management
Negative
None.
OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a+” (Excellent) of the key U.S. life/health subsidiaries and Europe-based insurance companies of The Cigna Group (Cigna) (headquartered in Bloomfield, CT) [NYSE: CI]. In addition, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and the Long-Term Issue Credit Ratings (Long-Term IRs) of Cigna. AM Best also has affirmed the Short-Term Issue Credit Rating (Short-Term IR) of Cigna. The outlook of these Credit Ratings (ratings) is stable. (Please see below for a detailed listing of the companies and ratings.) The majority of Cigna’s core U.S. health insurance entities are collectively referred to as Cigna Life & Health Group.
The ratings of Cigna Life & Health Group reflect its balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).
Cigna Life & Health Group’s balance sheet strength assessment of strong is supported by its risk-adjusted capitalization, which is at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR). Cigna Life & Health Group’s risk-adjusted capitalization has remained at the strongest level over the past few years, driven by capital expansion supported by favorable earnings, despite sizeable annual dividends. The group also has been strengthened by sources of contingent liquidity, which contributes to the fungibility of capital, with strong and stable metrics, as well as diverse operating cash flows across its businesses. Additional sources of liquidity for the insurance entities include parent company cash and a commercial paper program supported by an unsecured revolving credit facility and access to the debt market, as well as non-regulated cash flows from Cigna's Evernorth business segment. Cigna’s insurance subsidiaries consistently have provided cash flow from operations upstream in the form of sizeable dividends, which have been growing given its ongoing favorable results.
Furthermore, the ratings of Cigna Life & Health Group also consider the high level of goodwill/intangibles at Cigna, the ultimate parent, largely relating to acquisitions. While financial leverage has fluctuated, management remains committed to managing it at approximately 40%. Cigna’s debt service is supported by its strong earnings and dividends from the group’s insurance entities, as well as solid non-regulated earnings from its Evernorth segment. Cigna’s earnings before interest and taxes interest coverage remains good at close to five times for 2023.
Cigna Life & Health Group has a track record of strong operating performance, demonstrated by a five-year weighted average return-on-equity ratio exceeding 28%. Earnings from the insurance operations have been driven largely by the group’s core commercial segment. AM Best also notes that Cigna Life & Health Group continues to operate under a lower risk model as a majority of its commercial business is operated under self-funded/administrative services only employer group contracts, versus fully insured. Underwriting and net income each has remained strong over the past five years. AM Best expects prospective earnings to remain positive, underpinned by profitable underwriting results. Cigna’s insurance operations are less exposed to government programs compared with its peers, resulting in higher margins, and the organization has demonstrated profitable growth in the commercial segment over the past several years. Cigna has reported premium growth in its core businesses and looking forward, growth is projected for 2024. On Jan. 31, 2024, it was announced that Cigna entered into an agreement to sell its Medicare business to Health Care Service Corporation. The transaction is expected to close in the first quarter of 2025.
Cigna Life & Health Group’s business profile is viewed as favorable, driven by a strong position in the competitive health care market. Cigna has been increasing its penetration into the U.S. commercial health market through organic growth. Cigna maintains a diverse product portfolio of health care products. The organization also offers specialty health care products and services that include medical management, disease management and other health advocacy services to employers and other plan sponsors. The growth of Evernorth health services business, as well as the parent’s retained international core medical business, provide Cigna an expanded customer base, earnings diversification and medical cost management capabilities.
The organization has a comprehensive ERM program with mature governance. The program is integrated into day-to-day operations and strategic business planning. Each business unit has its own heat map, which rolls up to an enterprise-level heat map.
The organization also employs a formal risk appetite statement that includes key principles and key tolerances and limits. Cigna utilizes economic capital modeling and stress testing.
The ratings of CIGNA Life Insurance Company of Europe S.A.- N.V. reflects its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. Additionally, the company benefits from rating enhancement from Cigna.
The ratings of CIGNA Global Insurance Company Limited (Guernsey) reflect its balance sheet strength, which AM Best assesses as very strong as well as its adequate operating performance, limited business profile and appropriate ERM. The company also benefits from rating enhancement from Cigna.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with stable outlooks for the following key U.S. life/health subsidiaries of The Cigna Group:
Connecticut General Life Insurance Company
Cigna Health and Life Insurance Company
Cigna Worldwide Insurance Company
Cigna HealthCare of Indiana, Inc.
Cigna HealthCare of North Carolina, Inc.
Cigna HealthCare of South Carolina, Inc.
Cigna HealthCare of Arizona, Inc.
Cigna HealthCare of Georgia, Inc.
Cigna HealthCare of Texas, Inc.
Cigna HealthCare of Florida, Inc.
Cigna HealthCare of New Jersey, Inc.
Cigna HealthCare of Connecticut, Inc.
Cigna HealthCare of Illinois, Inc.
Cigna HealthCare of St. Louis, Inc.
Cigna HealthCare of Tennessee, Inc.
Cigna HealthCare of California, Inc.
Cigna Dental Health Plan of Arizona, Inc.
Cigna Dental Health of California, Inc.
Cigna Dental Health of Florida, Inc.
Cigna Dental Health of Maryland, Inc.
Cigna Dental Health of Ohio, Inc.
Cigna Dental Health of Pennsylvania, Inc.
Cigna Dental Health of Texas, Inc.
Cigna Dental Health of New Jersey, Inc.
Cigna Dental Health of Missouri, Inc.
Cigna Dental Health of Virginia, Inc.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed with stable outlooks for the following Europe-based subsidiaries of The Cigna Group:
CIGNA Life Insurance Company of Europe S.A. – N.V.
CIGNA Europe Insurance Company S.A. – N.V.
CIGNA Global Insurance Company Limited
The following Long-Term IRs have been affirmed with stable outlooks for The Cigna Group:
The Cigna Group—
-- “bbb+” (Good) on $700 million of 5.685% senior unsecured notes, due 2026
-- “bbb+” (Good) on $800 million of 1.25% senior unsecured notes, due 2026
-- “bbb+” (Good) on $1 billion of 5% senior unsecured notes, due 2029
-- “bbb+” (Good) on $1.5 billion of 2.4% senior unsecured notes, due 2030
-- “bbb+” (Good) on $1.5 billion of 2.375% senior unsecured notes, due 2031
-- “bbb+” (Good) on $750 million of 5.125% senior unsecured notes, due 2031
-- “bbb+” (Good) on $800 million of 5.4% senior unsecured notes, due 2033
-- “bbb+” (Good) on $1.25 billion of 5.25% senior unsecured notes, due 2034
-- “bbb+” (Good) on $750 million of 3.2% senior unsecured notes, due 2040
-- “bbb+” (Good) on $1.25 billion of 3.4% senior unsecured notes, due 2050
-- “bbb+” (Good) on $1.5 billion of 3.4% senior unsecured notes, due 2051
-- “bbb+” (Good) on $1.5 billion of 5.6% senior unsecured notes, due 2054
The following Short-Term IR has been affirmed:
The Cigna Group—
-- AMB-2 (Satisfactory) on commercial paper program
The following indicative Long-Term IRs have been affirmed with stable outlooks for The Cigna Group:
The Cigna Group—
-- “bbb+” (Good) on senior unsecured debt
-- “bbb-” (Good) on preferred stock
The following Long-Term IRs have been affirmed with stable outlooks for Cigna Holding Company:
Cigna Holding Company—
-- “bbb+” (Good) on $900 million of 3.25% senior unsecured notes, due 2025
-- “bbb+” (Good) on $300 million of 7.875% of senior unsecured debentures, due 2027
-- “bbb+” (Good) on $600 million of 3.05% senior unsecured notes, due 2027
-- “bbb+” (Good) on $83 million of 8.3% senior unsecured step-down notes, due 2033
-- “bbb+” (Good) on $500 million of 6.15% senior unsecured notes, due 2036
-- “bbb+” (Good) on $300 million of 5.875% senior unsecured notes, due 2041
-- “bbb+” (Good) on $750 million of 5.375% senior unsecured notes, due 2042
-- “bbb+” (Good) on $1 billion of 3.875% senior unsecured notes, due 2047
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
What are the key credit ratings affirmed by AM Best for The Cigna Group and its subsidiaries?
AM Best has affirmed the Financial Strength Rating of A and Long-Term Issuer Credit Ratings of 'a+' for the key U.S. life/health subsidiaries and Europe-based insurance companies of The Cigna Group, with a stable outlook.
What factors contribute to Cigna's strong balance sheet strength?
Cigna's balance sheet strength is supported by strong risk-adjusted capitalization, favorable earnings, and sources of contingent liquidity, contributing to capital fungibility.
How does Cigna manage its financial leverage?
Cigna manages its financial leverage at approximately 40% and supports debt service through strong earnings, dividends, and solid non-regulated earnings from its Evernorth segment.
What are the key drivers of Cigna's strong operating performance?
Cigna's strong operating performance is driven by a five-year weighted average return-on-equity ratio exceeding 28%, with core commercial segment operations contributing significantly.
What is the impact of Cigna's sale of its Medicare business to Health Care Service ?
The sale of Cigna's Medicare business is expected to enhance its business profile and drive positive growth in the commercial segment in 2024.
