|Bid||170.78 x 800|
|Ask||170.91 x 800|
|Day's range||167.41 - 172.69|
|52-week range||118.50 - 224.64|
|Beta (5Y monthly)||0.74|
|PE ratio (TTM)||12.63|
|Earnings date||29 Apr 2020|
|Forward dividend & yield||0.04 (0.02%)|
|Ex-dividend date||08 Mar 2020|
|1y target est||242.12|
The global coronavirus case count surpassed 735,000 Monday, with more than 35,000 deaths reported, according to Johns Hopkins.
Unfortunately for some shareholders, the Cigna (NYSE:CI) share price has dived 32% in the last thirty days. The recent...
(Bloomberg) -- With the coronavirus pandemic expected to test the limits of the U.S. health-care system, publicly traded hospitals sacked with billions of dollars in debt are the most susceptible to further losses in their share prices, according to JPMorgan.“The next 30 days will be critical” as they cope with an anticipated surge in admissions, diagnostic requests, drug prescriptions and increased need for ICU capacity and staffing, analysts including Gary Taylor and Chris Schott wrote in a research note on Friday. At the same time, hospitals’ revenue will be crimped by the deferral of elective surgeries, the analysts wrote.The outlook for Community Health Systems Inc. and Tenet Healthcare Corp., two of the most indebted hospital companies, is particularly precarious as they are susceptible not only to the pressures of the Covid-19 virus but also to the risk that the outbreak will tip the economy into a recession, according to the JPMorgan analysts. If more Americans lose their jobs, the hospitals could see more patients covered by Medicare and Medicaid, which are less profitable, as well as an increase in unpaid bills.Community Health has outperformed S&P mid caps with more than a 2% gain this year. After a recent refinancing in January, the next key debt hurdle for the company is over $5 billion that comes due in 2023, according to Bloomberg Intelligence analyst Mike Holland. The company has more than $12 billion of debt on its balance sheet.Burdened by more than $14.5 billion in debt, Tenet’s stock has dropped more than 50% so far this year. Baird analysts pointed out that Tenet has far more exposure to higher paying elective surgeries and could be hurt more than peers as those procedures taper off in favor of emergency room visits.“One important point to remember that like politics, hospitals are local,” BI’s Holland said in an email. They “have large asset portfolios with meaningful geographic diversity,” that could protect them if individual facilities get overburdened. Admissions could see some weakness in the first and second quarter, “but it’s not going to crush these leveraged providers,” he said.Even the nation’s largest publicly traded hospital company, cash-rich HCA Healthcare Inc., could feel some pressure on its earnings before interest, taxes, depreciation and amortization, JPMorgan said. HCA has slid more than 30% this year. And while it might not have hit the bottom yet, JPMorgan recommends HCA along with the insurer Cigna Corp. as good investments for those with a 12-month timeline. Analysts also favored the insurers UnitedHealth Group Inc., Humana Inc. and Centene Corp.For health insurers “fear could exceed virus costs,” at least in the near term. But if U.S. hospital admissions top one million and deaths exceed 100,000 the impact to managed care organizations could become significant. The S&P 500 Managed Care Index has fallen about 15% so far this year, compared with the broader market’s 23% drop through Thursday. The Democratic presidential primaries have whipsawed managed care shares as voters contemplated candidate platforms that would have potentially done away with private insurance.Analysts at Cowen also stepped in to say while they expected volatility for the insurers on recession fears, the virus would not “materially impact” this year’s earnings. Cowen said its analysis overestimated on tests for the virus but didn’t include “any assumption on potential offsets to medical costs such as postponed elective procedures, or in-office visits that were postponed or converted to telehealth.”For other providers, JPMorgan said home health demand as well as labor costs may jump, while “long-term care facilities could experience a fear-induced period of reduced occupancy.”To contact the reporter on this story: Cristin Flanagan in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Richard RichtmyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
AM Best has assigned the Long-Term Issue Credit Ratings (Long-Term IRs) of "bbb" to the $1.5 billion 2.4% senior unsecured notes due 2030, $750 million 3.2% senior unsecured notes due 2040 and the $1.25 billion 3.4% senior unsecured notes due 2050 recently issued by Cigna Corporation (Cigna) (headquartered in Bloomfield, CT) [NYSE:CI]. Furthermore, AM Best has assigned indicative Long-Term IRs of "bbb" to senior unsecured debt and "bb+" to preferred shares under the recently filed shelf registration. The outlook assigned to these Credit Ratings (ratings) is stable. The existing ratings of Cigna and its subsidiaries are unchanged (see related press release).
(Bloomberg) -- Members of both parties in the House and Senate are moving to craft legislation aimed at stemming the economic fallout from the coronavirus outbreak, including possible tax cuts and expanded unemployment benefits.House Speaker Nancy Pelosi plans to meet with top Democrats Monday to begin drawing up a response to the economic disruption caused by the coronavirus outbreak, which is already threatening to stall growth.Pelosi told reporters there is no need to shut Congress down. “At the present time, there is no reason for us not to continue with our vital legislative work in the Capitol,” she said in a message to fellow House Democrats.President Donald Trump said Monday his administration will discuss a possible payroll tax cut with Senate Republicans. He said they would seek “very substantial relief” for the economy that has been roiled by the outbreak of coronavirus.The Senate’s top tax-writer, Finance Committee Chairman Chuck Grassley, meanwhile, said he is weighing options for narrowly focused tax cuts and other ways of addressing the virus’s economic effects. Some tax cuts could be targeted toward industries hit the hardest, he said.“I guess you’d say everything’s on the table,” Grassley told reporters. Asked whether he could support paid sick leave for some people affected by the outbreak, he said the only possibility he sees is using the Federal Emergency Management Agency to help cover hospital expenses for people who don’t have insurance.“Since you can do that for natural disasters, we might be able to do it for this sort of thing,” Grassley said.Pelosi and Senate Democratic leader Chuck Schumer released a proposal late Sunday focused on those most directly affected by the crisis -- people who are losing their jobs or being told to go home sick without pay or who are worried they can’t afford to get tested -- as opposed to broad economic stimulus measures.The expanding outbreak of the virus worldwide and an oil-price war between Russia and Saudi Arabia sent a shock through markets Monday. U.S. stocks plunged more than 7.5% in the worst day on Wall Street since the financial crisis, and crude sank 20%.“Now more than ever we need President Trump” to lead the country’s response “competently,” Schumer said on the Senate floor Monday. He said the administration’s response thus far has been “slipshod.”Second-ranking Senate Republican John Thune told reporters that he and other Finance Committee members are “just starting to give consideration to any type of menu of options. I think we’re going to wait and hear what the White House has in mind.”Agriculture Secretary Sonny Perdue told the School Nutrition Association his agency will “do all we can” to grant regulatory waivers to let schools continue providing free and subsidized meals to low-income students if they are closed due to the outbreak.Perdue said any decision on whether to make more people eligible for food stamps would be up to Trump.Pelosi will convene a meeting of House committee leaders to discuss the contours of an economic relief package separate from bolstering the nation’s ability to deal with the virus, according to a senior House Democratic aide. Congress last week approved about $8 billion to combat the spread of the virus and lawmakers said they were ready to spend more if necessary.House Ways and Means Chairman Richard Neal has invited officials from health insurers including Humana Inc., Anthem Inc., Cigna Corp. and Aetna Inc. to meet with him Tuesday to discuss coronavirus testing and coverage, according to a House Democratic aide.Multiple Democratic aides said it’s hard to know the right response on the economy because the virus has been stifling demand as people curtail travel, businesses cancel events and suppliers are suffering shortages.Pelosi and Schumer on Sunday called for expanded paid sick leave, enhanced unemployment insurance for those laid off due to the virus crisis, expansion of food stamps and school lunches, anti-price gouging protections and free virus testing. It also calls for government reimbursement of virus treatment costs not covered by insurance and greater distribution of protective equipment to health workers. The exact details how these goals are to be achieved have yet to be worked out.More than a quarter of private U.S. workers don’t get any sick leave with their jobs, including more than half of part-time workers and about 40% of service employees -- and about one-third of private U.S. workers don’t get medical benefits via their employment, according to government data.The Joint Economic Committee also plans this week to examine the most efficient way of providing relief to the economy, Vice Chairman Don Beyer, a Virginia Democrat, said on Monday.Separately, Transportation and Infrastructure Chairman Pete DeFazio said in an interview that given low interest rates, enacting a major infrastructure package makes more sense than ever. Infrastructure spending is a perennial favorite proposal for economic stimulus, but getting any plan through Congress would depend on what Trump and Republicans are willing to go along with. It also would be more long-term spending than a quick jolt for the economy, given the limited number of shovel-ready projects.Little TimeThere would be high hurdles to passing a bill this week as Congress plans to leave Washington for a week-long recess on Thursday. Skittish lawmakers worried about contracting the coronavirus may press leaders to extend the recess.Three Republican members of Congress, Texas Senator Ted Cruz, Representative Paul Gosar of Arizona and Representative Doug Collins of Georgia, have placed themselves in self-imposed quarantines after coming in contact at a recent political conference with a person who later tested positive for the coronavirus.On Wednesday, the Education and Labor Committee will examine the Health Families Act, H.R. 1784, and the wider issue of requiring employers to provide paid sick leave. The author of the legislation, Connecticut Democrat Rosa DeLauro said Monday she couldn’t say how quickly any virus relief bill could be passed.“Everybody is trying to move at warp speed as it were but I can’t give you a timeline,” she told reporters.(Updates with Pelosi, Trump comments starting in third paragraph)\--With assistance from Steven T. Dennis, Justin Sink, Alexander Ruoff, Laura Litvan, Daniel Flatley, Mike Dorning and Nancy Ognanovich.To contact the reporter on this story: Erik Wasson in Washington at email@example.comTo contact the editors responsible for this story: Joe Sobczyk at firstname.lastname@example.org, Laurie AsséoFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The worldwide coronavirus outbreak surpassed a grim new milestone on Friday, with over 100,000 reported infections on a death toll that topped 3,400.
(Bloomberg) -- Health insurers added about $48 billion in market value and led U.S. stock market gains on Wednesday after Joe Biden’s once-faltering Democratic presidential campaign was reanimated on Super Tuesday.The country’s largest health insurer, UnitedHealth Group Inc., increased its market capitalization by more than $20 billion in one day as Wall Street looks on a candidacy of the former vice president more favorably than that of Senator Bernie Sanders. Sanders has campaigned on the promise of Medicare-for-all, which poses a threat to private insurers.Biden favors building upon Obama’s Affordable Care Act, and may look to expand the private Medicare Advantage market, where UnitedHealth dominates. Medicare Advantage allows beneficiaries to get coverage from private insurers. Anthem Inc. and UnitedHealth both had the biggest gain since Oct. 2008, climbing as much as 16% and 13%, respectively.Centene Corp. also climbed, rising as much as 17%, shaking off a disappointing 2020 forecast on Tuesday night. Citi’s Ralph Giacobbe opened a positive catalyst watch on the stock last night, calling Super Tuesday and the guidance a “clearing event” for Centene. Bernstein’s Lance Wilkes said insurers with ties to Medicaid and health-care exchanges should fare particularly well.Humana Inc. and Cigna Corp. also posted double-digit gains, rounding out the top five performers on the S&P 500 Index Wednesday morning. EHealth Inc., a company with an online comparison tool for Medicare plans, rose as much as 23%.The Health Care Select Sector SPDR Fund, known by its ticker XLV, rose as much as 4.7% after closing down yesterday. Goldman Sach has been calling for a relief rally for the sector despite options trading pointing to a bearish outlook. XLV had lost nearly 10% from its Jan. 22 record before today.Biden’s sweep on Super Tuesday “will spur positive returns across the health-care insurance peer group” as well as other closely tied sectors that the Sanders campaign had been targeting, said Jared Holz, a health-care strategist at Jefferies. Michael Bloomberg, the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News., ended his bid for the nomination while throwing his weight behind Biden.The Democratic contest remains a “a fluid situation,” Holz said. He added that “this week has already proven, major shifts in campaign forces can occur in a blink.”(Updates valuations and adds Bloomberg ending his campaign.)To contact the reporter on this story: Cristin Flanagan in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Steven Fromm, Kristine OwramFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Today we'll evaluate Cigna Corporation (NYSE:CI) to determine whether it could have potential as an investment idea...
AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "a" of the key U.S. life/health subsidiaries, health maintenance organizations and Europe-based insurance companies of Cigna Corporation (Cigna) (headquartered in Bloomfield, CT) [NYSE: CI]. Concurrently, AM Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICRs to "a" from "a-" of Medco Containment Life Insurance Company (Warrendale, PA) and Medco Containment Insurance Company of New York (Troy, NY) (collectively referred to as Medco Containment Group). Additionally, AM Best has upgraded the FSR to A (Excellent) from A- (Excellent) and the Long-Term ICRs to "a" from "a-" of the Cigna HealthSpring Companies (HealthSpring). AM Best also has affirmed the Long-Term ICR of "bbb" and the Short-Term Issue Credit Rating (Short-Term IR) of AMB-2 of Cigna. The outlook of these Credit Ratings (ratings) is stable. Furthermore, AM Best has withdrawn the Long-Term ICR of "bbb" and the Short-Term IR of AMB-2 on the intermediate holding company, Cigna Holding Company (Delaware). Lastly, AM Best has affirmed the Long-Term Issue Ratings (Long-Term IR) of Cigna Holding Company. The outlook of these ratings is stable. (Please see link below for a detailed listing of the companies and ratings.)
Oscar Health is offering prescription drugs at rock-bottom prices, following the lead of other health care players responding to the public’s demand for lower costs.
(Bloomberg Opinion) -- February can feel like no man’s land. The holidays are over and the weather is crummy. The gentlest iPhone chime sounds like a bugle call in the morning and you need two Americanos to have a civil conversation. Over the past week or so, you’ve been holed up in your cramped apartment and your inbox is overflowing with alerts about the spread of a deadly virus. Like 84% of the population, you’re probably stressed, according to a recent study by Cigna Corp. and Asia Care Group.The cost of burnout is no longer just emotional. The global economy loses $1 trillion a year in productivity as a result of depression and anxiety, the World Health Organization found. While the U.S. puts $133.2 billion, or 4% of its annual health expenditure, toward treatment, that proportion reaches 19% in Australia, 18% in Singapore and 17.6% in Hong Kong, Cigna says.The good news is that there’s a solution, and it’s cheap. The bad news is that it’s difficult. After years of considering mental health to be a personal affliction, focus is turning to the role employers can play. The type of changes needed – better communication and support from managers, for example – require a shift in attitude more than financial resources. In Asia, however, the very wokefulness that’s made mental health a priority for Fortune 500 CEOs and U.S. presidential candidates is uncomfortable territory.“My family never, ever talked about this topic. It’s a taboo,” said Deborah Seah, a 38-year-old Singaporean who lived with bipolar disorder for more than two decades before it was diagnosed. As a girl of eight, she recalls going to the kitchen of her family’s high-rise apartment in the middle of the night, looking out the 11-story window and fighting the urge to jump.More than 90% of people in Asia say they’re stressed, and eight out of 10 feel like they operate in an “always on” culture. These can be early symptoms of burnout, which is marked by chronic exhaustion, cynicism and detachment from your work, as well as feelings of ineffectiveness.Seah experienced her first burnout episode in 2016, while working at an academic institution. She recalls the rising levels of stress as managers kept pushing work on her plate. She also felt pressure to keep her mental condition under wraps because colleagues gossiped viciously. Managers who knew of Seah’s struggles urged her to stay quiet.Seah remembers breaking into sobs in the washroom, hoping no one would see, and coming home to dinner, where she would erupt into screams. Her husband begged her to quit her job, but she couldn’t let go: “I didn’t want to give up my career,” she said. Seah eventually admitted herself to Singapore’s mental-health institute when she began to feel suicidal. Successive burnout episodes were equally dramatic, with daily panic attacks, hot and cold flashes, uncontrollable shivering and the inability to get out of bed.Beyond social stigmas, Asia’s often inflexible work culture can be a hurdle, too. In a recent survey of Hong Kong employees by Deacons, a law firm, 65% of respondents cited long hours as their primary concern, closely followed by “domineering” senior management and uncommunicative bosses.The trouble is, even flexible work arrangements have their pitfalls. Ben,(1) 43, started his career in public relations in London, and moved to Singapore in 2013. He struggled with depression and anxiety after his father and half-brother died unexpectedly within less than a year of each other. He was relieved to get a transfer to Hong Kong for a change of pace, and was initially encouraged by the corporatespeak about working from home and unlimited vacation time.Very quickly, Ben found that working anywhere meant working all the time. He was pulling 12-hour days and putting in time on weekends; he compulsively checked his phone for messages. A much-anticipated trip with his wife to the tropical island of Flores, east of Bali, was spent on a deck chair: “I saw it over a laptop,” he recalls.It also became apparent that making a big transition during a period of emotional strain was a bad idea. When Ben asked for help with his workload, his manager said he should be able to cope. As the demands increased, Ben’s symptoms became physical: He lost weight, his cheeks hollowed and his skin turned ashen. One day, he simply couldn’t get up, and stayed bedridden for a week.Though Ben worked for a U.S.-based company, he felt caught between Asia’s cultural expectation of being in the office and the 24/7 demands of his industry. “When I was working in London, our general rule was if you saw someone working late regularly, you would take them aside and say, ‘Hey what’s going on? What’s wrong?’ whereas in Asia, it’s celebrated much more.”Ben eventually decided to leave his job and took seven months off. Now he does contract work in the marketing-services industry, and tries to stick to a four-day week.In 2018, Gallup Inc., a market-research company, looked at the main causes of burnout, as well as what employers and managers can do. What’s striking is how simple some of the solutions appear to be: Employees whose managers are willing to listen to their work-related problems are 62% less likely to be burned out, and those who have the opportunity to do projects where they excel are 57% less likely to experience frequent episodes, the study found. Does a trillion-dollar problem really come down to intangibles such as making work purposeful, promoting teamwork and giving positive feedback?Seah, the Singaporean, eventually left her job, and now works as an executive assistant at Oracle Corp. In her application, she included her volunteer work as an ambassador at “Beyond the Label,” a government initiative to raise awareness about mental health. Seah marvels at the California-based company’s openness to her condition and the willingness to let her work from home. “The approach and attitude of my manager makes a whole world of difference.”The workplaces of the future should not only better equip its managers with soft skills, but give employees the time and space to care for themselves. Think about it: With people working well into their 70s, careers can plausibly span half a century; a recent study puts the age of peak unhappiness smack in the middle, at 47.2. The key to heading off burnout, then, may be clearing your calendar. The Wall Street Journal recently chronicled the experience of one insurance executive who took a two-year sabbatical. The break actually accelerated her progress: She returned to work and became a CEO.For those who can’t afford to put their paychecks on pause, even mini breaks or meditation can help. One Singaporean-based app, MindFi, has breathing exercises that even allow skeptics like me to keep their eyes open. Managing stress this way should be natural in cities like Hong Kong and Singapore. After all, “Asia is the home of meditation,” says Bjorn Lee, MindFi’s founder. “What happened?”There’s perhaps no better time to put these tools to work. The spread of the coronavirus has produced stress triggers that are both extraordinary (with thousands of confirmed cases) and mundane (it’s more difficult to get your Starbucks coffee). With millions of people on lockdown, companies from HSBC Holdings Plc to Facebook Inc. have asked staff to work from home. The novelty of wearing your pajamas all day can wear off quickly when you’re squinting at a tiny laptop screen and keeping your toddler’s sticky fingers off the keyboard. But if you’re safe and virus-free, this could be a welcome opportunity for a deep breath. A baby showed up on one of my video conferences last week — I can’t imagine I’m the only one who cracked a smile. (1) Ben asked that we keep out his surname.To contact the author of this story: Rachel Rosenthal at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Rachel Rosenthal is an editor with Bloomberg Opinion. Previously, she was a markets reporter and editor at the Wall Street Journal in Hong Kong. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Cigna (CI) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.