Cigna, Express Scripts Join Forces for Better Healthcare

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Cigna CorporationCI completed the pending merger with Express Scripts Holding Company ("Express Scripts"), effective Dec 20, 2018. With this deal, the combined organization is likely to provide enriched and affordable care to their customers. Cigna aims to transform the healthcare system through this significant transaction.

This merger brings two complementary healthcare service companies together, both having leading cost trend abilities, which will provide customers with better healthcare and more options to choose from. This latest deal with Express Scripts can effectively drive the breadth of value-based relationships for Cigna. The deal undoubtedly adds significantly to Cigna's fast-growing collaborative care network.

Moreover, Cigna announced an additional investment of $200 million to its charitable foundation and communities. It is even launching Healthier Kids for Our Future, a program aimed at addressing the well-being of children around the globe. In the next year, Cigna will solely focus on improving the health of children by eradicating hunger and enhancing nutrition.

Both the companies are currently working on a blueprint to provide special, personalized and value-based care, which would allow them to prioritize the needs and requirements of customers. They have the intention to provide feasible, convenient and affordable solutions to customers. The joint effort by the companies would help in mending the gaps in care in the local communities.

Cigna expects the merger to deliver impressive sustained returns to shareholders. As discussed, the company estimates delivering adjusted income from operations per share of $20-$21 in 2021.

Shares of the companies stopped trading on Dec 20, 2018. The combined unit has started trading from today under the ticker symbol (CI).

Shares of this Zacks Rank #2 (Buy) company have lost 12.1% in a year's time, narrower than the industry 's decline of 24.9%.

Other Stock to Consider

Investors interested in the insurance-multi line industry might take a look at a few other stocks like MGIC Investment Corporation MTG , Old Republic International Corporation ORI and MetLife, Inc. MET , each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

MGIC Investment Corporation offers private mortgage insurance and ancillary services to lenders, and government-sponsored entities in the United States. It came up with a positive four-quarter surprise of 34.32%.

Old Republic engages in the insurance underwriting and related services business, primarily in the United States and Canada. The company managed to deliver a trailing four-quarter positive surprise of 15.66%.

MetLife provides solutions to insurance, annuities, employee benefits, and asset management businesses. It came up with a four-quarter surprise of 9.67%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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