DECEMBER 19, 2019 11:57 AM (EST)
AM Best Comments on Credit Ratings of Cigna Corporation Following Group Benefits Division Sale Announcement
|Joseph Zazzera, MBA|
+1 908 439 2200, ext. 5797
Sally A. Rosen
+1 908 439 2200, ext. 5280
Manager, Public Relations
+1 908 439 2200, ext. 5159
Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 19, 2019 11:57 AM (EST)
AM Best has commented that the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb” and the Long- and Short-Term Issue Ratings (Long-Term IR; Short-Term IR) of Cigna Corporation (Cigna) (Headquartered in Bloomfield, CT) [NYSE: CI] remain unchanged following Cigna’s recent announcement that it has signed a definitive agreement to sell its group life and disability insurance business to New York Life Insurance Company. Additionally, the Financial Strength Ratings and Long-Term ICRs of Cigna’s operating subsidiaries remain unchanged as well, with the exception of the Credit Ratings of Life Insurance Company of North America and Cigna Life Insurance Company of New York, which have been placed under review with positive implications (see related press release dated Dec. 19, 2019).
On Dec. 18, 2019, Cigna announced the sale of its group insurance operations, which includes Life Insurance Company of North America and Cigna Life Insurance Company of New York, in a transaction valued at $6.3 billion. Cigna is expected to utilize the proceeds of the transaction to pay down debt and for share repurchases, with exact amounts to be determined. AM Best notes that Cigna remains committed to reducing its financial leverage to below 40% by year-end 2020. The transaction is expected to close in 2020 and is subject to regulatory approvals.
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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.