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About Connecticut General Corporation

With a significant position in the US health insurance market, CIGNA covers some 16 million Americans with its various medical plans. The firm's offerings include PPO, HMO, point-of-service (POS), indemnity, and consumer-directed products, as well as specialty coverage in the form of dental, vision, pharmacy, and behavioral health plans. It also sells group accident, life, and disability insurance. Customers include employers, government entities, unions, Medicare recipients, and other groups and individuals in North America. Internationally, CIGNA sells life, accident, and health insurance in parts of Europe and Asia, and provides health coverage to expatriate employees of multinational companies. 

Operations

CIGNA's subsidiaries include Connecticut General Life Insurance, Cigna Health and Life Insurance, Life Insurance Company of North America, and Cigna Life Insurance Company of New York.

CIGNA's largest segment is Global Health Care, which accounts for nearly 80% of revenues and provide full health plan benefits for multinational, local, and organizational groups in North America and abroad. The segment also provides behavioral health, employee assistance, pharmacy, and utilization review services to employer groups and benefit administrators. Global Health Care is subdivided into the Commercial and Government segments

CIGNA's Group Disability and Life segment, which accounts for more than 10% of sales, offers long- and short-term disability, group life, and accident insurance, among other products. The company covers more than 6.5 million lives with its group life insurance policies and more than 8 million individuals with its group disability policies.

A third segment, Global Supplemental Benefits, provides supplemental health, accident, and life policies in the US and about 30 other countries.

Other operations include corporate-owned life insurance, run-off reinsurance business, and run-off settlement annuity business. (These businesses service existing policies but don't issue new policies.)

The company has about 190 Collaborative Accountable Care Organization arrangements in more than 30 states covering 2.2 million customers. Its global network includes more than 1.1 million partnerships with health care providers and facilities.

Geographic Reach

CIGNA's domestic operations account for the majority of revenues and cover all 50 US states plus Washington, DC; Canada; Puerto Rico; and the Virgin Islands. The company also sells supplemental life, accident, and health insurance to millions of members in international markets. South Korea is the firm's largest foreign market. CIGNA is also one of the world's largest providers of expatriate health insurance, which covers the overseas employees of multinational corporations. In China, Turkey, and India, CIGNA operates through joint ventures.

In all, CIGNA operates in about 15 countries in North America, Europe, the Middle East, and the Asia/Pacific region.

The company's international properties include about 2.2 million sq. ft. in Belgium, Canada, China, Hong Kong, India, Indonesia, Kenya, Malaysia, New Zealand, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, and the UK.

Sales and Marketing

CIGNA does much of its health plan business with large employer groups, mainly through direct sales representatives and independent consultants. The company is working to expand its customer base to include more select (50 to 250 employees) and midsized (250 to 5,000 employees) businesses, government entities, and individuals. Its global health care sales force consists of more than 1,200 representatives in about 125 field locations.

The disability and life segment markets policies to employer groups and other professional associations through a network of brokers and consultants, while international health and life policy and supplemental benefit sales are conducted via independent distributors. Some supplemental products are marketed via direct telemarketing efforts.

The company's supplemental health, life, and accident policies sold abroad are generally marketed through distribution partnerships. These products are typically sold through direct marketing efforts such as telemarketing, television ads, online advertising, and in-branch bancassurance (partnerships with banks).

Financial Performance

CIGNA has maintained a healthy balance between growth and cost-control efforts in recent years, leading to steady increases in revenues. Its commercial business has seen higher enrollment numbers, boosting premium income. However, the company has seen fluctuating profits over the past five years.

In 2017 revenues rose 5% to $41.6 billion due to growth in the Global Health Care and Global Supplemental Benefits segments. The Group Disability and Life segment remained flat, as did CIGNA's other operations. And while commercial sales continued to grow, government sales declined due to Medicare disenrollment. In terms of geography, sales saw the most growth in the US and South Korea.

The increased revenue in 2017 led net income to rise 20% to $2.2 billion.

CIGNA ended 2017 with $3 billion in cash and cash equivalents, a 7% drop from what it had at the end of 2016. Financing activities, including repurchasing common stock, used $2.7 billion and investing activities used another $1.7 billion. Operating activities provided $4.1 billion.

Strategy

CIGNA's overall growth strategy is to "Go Deeper, Go Local, and Go Beyond" by offering medical, disability, life and accident, and dental coverage, as well as related products and services. In addition to providing health insurance, the group is increasingly focused on wellness programs to prevent illness and improve well-being. These efforts, as well as its push to make health care more affordable, accessible, and individualized, are intended to establish a more sustainable health care system.

While it continues to pursue new corporate accounts, CIGNA is trying to grow its domestic health care segment by offering new and innovative products for individuals. For instance, the company is launching trendy consumer-directed programs such as low-deductable plans with health savings accounts (CIGNA Choice Fund), incentive programs, health risk assessments, and online tools (such as Choicelinx and HealthEview) for comparing coverage options and making sound health care decisions. CIGNA also collaborates with health care providers and regional health plans to lower medical costs and improve access to quality care. Additionally, CIGNA is focused on new distribution marketplaces such as public and private exchanges and new buying segments and service expansions.

CIGNA works to mitigate rising health care costs through means such as entering favorable reimbursement contracts with providers and enhancing operating and administrative efficiencies. Health care reform measures and CMS reimbursement cuts have also prompted CIGNA to exit some of its health plan market segments, while pursuing growth in areas it perceives to be more profitable under new laws. For instance, the company has recently withdrawn its small group (2 to 50 employees) offerings in certain states.

Internationally, the company is working to expand its geographic footprint, especially in emerging markets.

Mergers and Acquisitions

In late 2018 CIGNA bought pharmacy benefit manager Express Scripts for $67 billion (including the assumption of some $15 billion in debt). That purchase echoed pharmacy chain CVS's acquisition of insurer Aetna, both deals likely responses to industry threats such as the Amazon-Berkshire Hathaway-JPMorgan Chase partnership to establish an independent health company. In the case of Express Scripts, rising specialty drug costs led CIGNA to buy the firm to cut its own expenses.

Also in 2018, CIGNA agreed to buy OnePath Life NZ from ANZ Bank New Zealand for NZ$700. As part of the deal, CIGNA will have a bancassurance alliance with the bank for 20 years.

That deal was announced after the $48 million merger with rival insurer Anthem was blocked and terminated. CIGNA had agreed to be acquired by Anthem in 2015; that deal would have created a health insurance giant serving more than 53 million people and generating about $115 billion in revenue. The companies anticipated that the acquisition would save money (nearly $2 billion in savings was expected) and better position the combined entity to take advantage of opportunities created by the Affordable Care Act. However, in 2017, the merger was blocked by a federal judge. Anthem vowed to fight for the deal, but ultimately scrapped the whole plan.

In mid-2017 CIGNA acquired Zurich Insurance Middle East, enabling it to expand its existing operations in the region. With the purchase, CIGNA has operations in the United Arab Emirates, Lebanon, Kuwait, and Oman.

Connecticut General Corporation

900 COTTAGE GROVE RD
Bloomfield, CT 06002-2920
Phone: 1 (860) 226-6000

Stats

Employer Type: Privately Owned
Vice President Pharmacy Voluntary Technology: Aaron Crosson
Senior Director: Willis Gee
Existing Business Sales Manager: Tim Sward
Employees (This Location): 6,476
Employees (All Locations): 24,260

Major Office Locations

Bloomfield, CT