Cigna's stock drops after WSJ report the insurer was in talks to sell its Medicare business

Shares of Cigna Group (CI) shed 1.6% in morning trading, after The Wall Street Journal reported that the health insurer was in advanced talks to sell its Medicare business. Citing people familiar with the matter, the report said a sale of the Medicare Advantage business to Health Care Service Corp. could be for between $3 billion and $4 billion. The report noted that a sale would mark a change in direction for Cigna, which had been expanding in the Medicare space, and would mark a major expansion for HCSC, which is the parent of Blue Cross Blue Shield. Cigna did not immediately reply to a request for comment. Cigna's stock has lost 5% over the past 12 months, while Health Care Select Sector SPDR ETF (XLV) has gained 2.4% and the S&P 500 has advanced 23.3%.

-Tomi Kilgore

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01-03-24 1129ET

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