The move was approved at Cigna’s February board meeting, which brought the payer’s total share repurchase authority to $10 billion. The company has already repurchased $1.2 billion in shares, with the intent to tap $7 billion this year on stock buybacks.
The company highlighted that $5.4 billion of its deployable capital for the effort stems from its sale of international life, accident and supplemental benefits companies.
The announcement also shut down rumors that the payer was considering an acquisition of Centene, saying that it is not considering large-scale acquisitions at this time.
It would, however, consider “targeted bolt-on or tuck-in acquisitions,” with the board approving a $450 million investment in Cigna Ventures, the payer’s investment arm.
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