Photographer: Michael Nagle/bloomberg © 2016 Bloomberg Finance LPCigna completed the sale its group life and disability insurance unit to New York Life Insurance for $6.3 billion in a move to focus on its healthcare businesses, the companies announced Thursday. “This acquisition, the largest in our company’s history, reinforces our financial strength by generating capital that can contribute to our surplus, dividends, and earnings,” New York Life Chairman and CEO Ted Mathas said Thursday in a statement. “We are excited to welcome to New York Life our new employees and the millions of new customer relationships that we will gain through this milestone transaction. Cigna is in a race with rival health insurance companies like UnitedHealth Group, Anthem, Humana and CVS Health’s Aetna health insurance business to grow its business administering health benefits for seniors as more flock to Medicare Advantage plans. For its battles ahead, Cigna will need cash from the New York Life divestiture as it competes with rivals into the business of providing healthcare services.

Source: Forbes December 31, 2020 21:34 UTC