Cigna Corporation Announces Termination of Anthem Transaction
- Outlines plans for increased share repurchase
- Seeks reverse termination fee and other damages from Anthem
Cigna Corporation (NYSE: CI) announced that the merger agreement with Anthem has been terminated. Anthem did not appeal the
Delaware Court of Chancery’s decision denying Anthem’s motion for a preliminary injunction that sought to prevent Cigna from
terminating the merger agreement.
Anthem was required under the merger agreement to lead the regulatory approval process and to use its reasonable best efforts to
obtain regulatory approval. As Cigna has stated, it believes that Anthem willfully breached those obligations and as a result the
transaction did not receive the requisite regulatory approvals. Cigna seeks prompt payment of the $1.85 billion reverse termination
fee and will pursue our claims for additional damages of over $13 billion against Anthem for the harm that it caused Cigna and its
shareholders.
Cigna has a clear path to create value in the marketplace and looks forward to leading the healthcare industry in engaging
customers and providing support through their diverse life and health stages while we also deliver sense of security solutions to
our customers around the world. Cigna will continue to invest in innovative capabilities and drive to further improve affordability
and personalization in part through our value-based care models.
Cigna plans to immediately increase the open market share repurchase activity as a result of the termination of the transaction.
Cigna’s Board of Directors had previously authorized share repurchase of $3.7 billion, and through May 11, 2017, Cigna has
repurchased approximately 2.4 million shares of common stock for approximately $360 million. Cigna expects to repurchase at least
half of the remaining authorization by December 31, 2017.
The Company looks forward to discussing its strategic growth plan during an Investor Day to be held on June 21, 2017 in New
York City.
About Cigna
Cigna Corporation (NYSE: CI) is a global health service company dedicated to helping people improve their health, well-being and
sense of security. All products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation,
including Connecticut General Life Insurance Company, Cigna Health and Life Insurance Company, Life Insurance Company of North
America and Cigna Life Insurance Company of New York. Such products and services include an integrated suite of health services,
such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products including group
life, accident and disability insurance. Cigna maintains sales capability in 30 countries and jurisdictions, and has more than 95
million customer relationships throughout the world. To learn more about Cigna®, including links to follow us on
Facebook or Twitter, visit www.cigna.com.
Note regarding share repurchases. The timing and actual number of shares repurchased will depend on a variety of factors,
including price, general business and market conditions, and alternate uses of capital. The share repurchase program may be
effected through open market purchases or privately negotiated transactions in compliance with Rule 10b-18 under the Securities
Exchange Act of 1934, as amended, including through Rule 10b5-1 trading plans. The program may be suspended or discontinued at any
time.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release, and oral statements made with respect to information contained in this release, may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on
Cigna's current expectations and projections about future trends, events and uncertainties. These statements are not historical
facts. Forward-looking statements may include, among others, statements regarding the merger agreement and the transactions and
litigation related thereto, future financial or operating performance, including our ability to deliver personalized and innovative
solutions for our customers and clients and future growth, business strategy, strategic or operational initiatives; economic,
regulatory or competitive environments, particularly with respect to the pace and extent of change in these areas; financing or
capital deployment plans and amounts available for future deployment; our prospects for growth in the coming years; and other
statements regarding Cigna's future beliefs, expectations, plans, intentions, financial condition or performance. You may identify
forward-looking statements by the use of words such as “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,”
“potential,” “may,” “should,” “will” or other words or expressions of similar meaning, although not all forward-looking statements
contain such terms.
Forward-looking statements are subject to risks and uncertainties, both known and unknown, that could cause actual results to
differ materially from those expressed or implied in forward-looking statements. Such risks and uncertainties include, but are not
limited to: uncertainty as to litigation with respect to the reverse termination fee and/or contract and non-contract damages for
claims filed against Anthem; the risk that a government entity or court of competent jurisdiction, in any litigation, arbitration
or other forum, finds in any binding or non-binding decision that Cigna has not complied, in full or in part, with its obligations
under the merger agreement or that Cigna is liable for any breach, willful or otherwise, of the merger agreement; uncertainty as to
whether and, if so, when Anthem will pay the reverse termination fee; uncertainty as to litigation with respect to the suit
initiated by Anthem against Cigna, including for damages with respect to the transactions contemplated in the merger agreement;
competitive responses to the rulings in the federal antitrust litigation or from the Chancery Court litigation; the inability to
retain key personnel; potential adverse reactions or changes to business or employee relationships, including those resulting from
the rulings in the federal antitrust litigation or from the Chancery Court litigation; our ability to achieve our financial,
strategic and operational plans or initiatives; our ability to predict and manage medical costs and price effectively and develop
and maintain good relationships with physicians, hospitals and other health care providers; the impact of modifications to our
operations and processes, including those in our disability business; our ability to identify potential strategic acquisitions or
transactions and realize the expected benefits of such transactions; the substantial level of government regulation over our
business and the potential effects of new laws or regulations or changes in existing laws or regulations; the outcome of
litigation, regulatory audits including the CMS review and sanctions, investigations, actions and/or guaranty fund assessments;
uncertainties surrounding participation in government-sponsored programs such as Medicare; the effectiveness and security of our
information technology and other business systems; unfavorable industry, economic or political conditions including foreign
currency movements; acts of war, terrorism, natural disasters or pandemics; as well as more specific risks and uncertainties
discussed in our most recent report on Form 10-K and subsequent reports on Forms 10-Q and 8-K available on the Investor Relations
section of www.cigna.com. You should not place undue reliance on forward-looking statements, which speak only as of the date they
are made, are not guarantees of future performance or results, and are subject to risks, uncertainties and assumptions that are
difficult to predict or quantify. Cigna undertakes no obligation to update or revise any forward-looking statement, whether as a
result of new information, future events or otherwise, except as may be required by law.
Cigna Corporation
Will McDowell, 215-761-4198
Investor Relations
or
Matt Asensio, 860-226-2599
Media Relations
View source version on businesswire.com: http://www.businesswire.com/news/home/20170512005648/en/