Though he did not mention the deal directly, Cigna CEO David Cordani appeared to dismiss rumors of reignited merger talks with Humana and said the company was focused on share buybacks.
"We don't comment on rumors, but what I will do is be very clear on the actions we are pursuing," Mr. Cordani said on Cigna's third quarter earnings call Oct. 31. "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."
Mr. Cordani's comments came after Bloomberg reported on Oct. 18 that Cigna and Humana had renewed talks of a potential merger. 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 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.
"I would note that our Medicare business is performing in line with expectations, and we're pleased with the overall value of our offerings, including our nationwide enrollment-weighted average will again be four stars for 2025," Mr. Cordani said. "Going forward, our focus will be on further growing our Evernorth chassis to continue to serve Medicare lives. Overall, our quarterly results reflect clear strategy and strong execution, resulting in attractive results."