Cigna Corporation (CI - $204.49 – NYSE) (CI, Financial) is one of the largest healthcare insurance and management companies. Cigna shares rebounded nicely during the fourth quarter. In the third quarter, shares of Cigna and other health insurers came under pressure owing to the rise in the polls of one Democratic presidential candidate who had expressed a desire to eliminate much, if not all, of the health insurance industry by championing so-called “Medicare for All” legislation. That candidate’s polling sagged during the fourth quarter, spurring an industrywide rally. In addition to favorable industrywide trends, Cigna reported strong third-quarter earnings at the end of October, raised its full-year guidance and demonstrated growth in its recently acquired pharmacy benefit manager (PBM) business. Also, Cigna made clear that the firm remains on track to hit its long-stated earnings targets for 2021 that the company laid out back when it announced the acquisition of Express Scripts in early 2018.
From Keeley Asset Management's Keeley Mid Cap Dividend Value Fund fourth-quarter 2019 shareholder letter.
