Cigna Earnings: Commercial-Insurance Focus Strengthens Trends, Boosting 2024 Outlook

Narrow-moat Cigna turned in strong fourth-quarter results and raised its 2024 outlook a bit. This week, Cigna also announced the sale of its Medicare-related businesses to a large Blue Cross/Blue Shield insurer, Health Care Services Corporation, with proceeds largely expected to be used for share repurchases after closing in early 2025. This deal should help Cigna focus more on what it does best in insurance—serve commercial payers. When considering all of these factors, we do not anticipate changing our $344 fair value estimate.