The Cigna Group on Monday confirmed that it is not pursuing a merger with Humana.

"The Cigna Group remains committed to its established M&A criteria and would only consider acquisitions that are strategically aligned, financially attractive and have a high probability to close," the company said in a news release.

A potential deal had been the subject of speculation for at least the past year. The companies called off a planned merger in late 2023 after a disagreement over the price of the deal, according to The Wall Street Journal. Cigna CEO David Cordani also tamped down merger speculation during the company’s recent third-quarter earnings call after Bloomberg earlier reported that the two companies had renewed discussions.

"We don't comment on rumors, but what I will do is be very clear on the actions we are pursuing," Cordani said on the call. "We continue to deploy our excess free cash flow for share repurchase, with repurchases totaling $5.7 billion year-to-date, including over $715 million in October. Looking forward, we expect to continue to actively repurchase our shares in the fourth quarter, further leveraging our remaining repurchase capacity, which stands at $5.6 billion."

The company said in the release that it "continues to deliver shareholder value through focused execution against stated operational and financial targets, and via disciplined capital deployment, including dividends and share repurchase."

The price of Humana shares rose after last Tuesday’s election as investors bet on an easier antitrust review for any mega-merger during a Trump administration, analysts said. "Cigna's latest clarification certainly puts the possibility of such a deal to bed," Oppenheimer analyst Michael Wiederhorn said in a research note. Humana's stock will remain under pressure following the news, he added.

Related: Cigna's 2025 health plan prices based on 'higher than normal' cost increases

Morningstar analyst Julie Utterback called Cigna's announcement unusual and said the move was aimed at removing pressure on its stock. "With the Republican win last week, there was speculation by investors that the antitrust concerns may decline enough to make the deal possible," she said.

Cigna posted a net income of $739 million in the third quarter of 2024, which included a non-cash after-tax investment loss of $1 billion related to VillageMD.

Instant Insights /

Cigna Group officially shoots down rumors of potential merger with Humana

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