Cigna Not Pursuing Merger with Humana

(Reuters) – Cigna (NYSE:CI) Group announced on Monday that it is not seeking a merger with Humana (NYSE:HUM), refuting recent media speculation about resuming acquisition talks.

Cigna’s shares increased by over 8% in premarket trading, while Humana’s shares dropped by 8%.

The company stated it remains committed to its established M&A criteria, noting that any acquisition considered would need to be strategically aligned, financially attractive, and likely to close.

Humana has not responded to Reuters' request for comments.

Last year, it was reported that Cigna had abandoned discussions to acquire Humana after failing to agree on a price, subsequently opting for a $10 billion share buyback.

In October, Bloomberg News indicated that Cigna had revived merger discussions with Humana.

Cigna, which primarily focuses on employer-sponsored healthcare plans, is currently divesting its Medicare Advantage business that serves individuals aged 65 and over.

Medicare-focused insurers, including Humana, are facing challenges from high medical costs as older adults increasingly seek healthcare services.

Since last week, Humana's shares have risen nearly 13%, while Cigna's shares have increased more than 2%, spurred by optimism surrounding the healthcare sector following Donald Trump's re-election as U.S. president, with hopes that any merger would pass antitrust scrutiny.