The groupbenefits business is part of the company’s group disability andother operations division, which, reported $1.31 billion ofadjusted revenue in the quarter ended June 30. (Photo: AP)

In the latest example of big businesses narrowing their product portfolio, Cigna Corp.is rumored to be exploring a potential sale of its groupbenefits insurance business, worth possibly as much as $6billion.

The news was first reported by Reuters, citing information from a four unnamedsources familiar with the situation, who added thatCigna’s move indicates its heightened focus on health care after itspent $54 billion last year to acquire pharmacybenefits manager Express Scripts Holding Co.

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A company spokesperson neither conformed nor denied the news,saying, “Given the dynamic marketplace, we continually reviewopportunities to ensure we continue to deliver value to ourcustomers and clients.”

The group benefits business is part of the company’s groupdisability and other operations division, which, according toCigna’s Q2 financial statement, reported $1.31 billion of adjustedrevenue in the quarter ended June 30, covering 15.4 million peopleas of then.

An investment bank is assisting with the efforts to find abuyer, which could come from among other insurers that alreadyoffer a similar product line and would be able to benefit fromscale through such an acquisition.

The company is not the first to winnow down its productline. In October of 2017, Aetna Inc. announced the sale of its U.S.group life and disability unit for $1.45 billion to HartfordFinancial Services Group.

Cigna hopes, with the acquisition of Express Scripts, to get ajump on the current quest to lower health care costs prior to the2020 election in an atmosphere of regulatory uncertainty. However,the Express Scripts purchase has also put it into directcompetition with CVS Health Corp. and its 2018 acquisition of Aetnaand also UnitedHealth Group Inc. and its pharmacy benefit managerOptum.

The company could also get a boost toward paying down some ofits long-term debt of $37 billion (as of the end of June) out ofthe proceeds of the group benefits sale.

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