Cigna Expects Q2 Net Income In Line With Last Year; Anthem To Buy Cigna

(RTTNews) - Cigna Corp. (CI) announced preliminary financial results for the second quarter 2015. Cigna's shareholders' net income is expected to be at least $574 million, or at least $2.21 per share, compared to $573 million, or $2.12 per share, prior year. Adjusted income from operations is expected to be at least $650 million, or at least $2.50 per share.

Analysts polled by Thomson Reuters expect the company to report profit per share of $2.25 for the quarter. Analysts' estimates typically exclude special items.

Cigna expects consolidated revenues to be approximately $9.5 billion, an increase of 9% over second quarter 2014. Analysts expect revenue of $9.53 billion for the quarter.

Cigna's updated outlook for full year 2015 consolidated adjusted income from operations, is now in the range of $2.16 billion to $2.24 billion, or $8.30 to $8.60 per share. Cigna continues to expect consolidated revenues to grow in the range of 8% to 10% in 2015. Analysts expect the company to report earnings per share of $8.53.

Separately, Anthem, Inc. (ANTM) and Cigna Corp. (CI) announced that they have entered into a definitive agreement whereby Anthem will acquire all outstanding shares of Cigna in a cash and stock transaction and Cigna shareholders will receive $103.40 in cash and 0.5152 Anthem common shares for each Cigna common share. The total per share consideration equates to approximately $188.00 for each Cigna share. The transaction is expected to close in the second half of 2016.

Upon the close of the deal, Joseph Swedish will serve as Chairman and Chief Executive Officer of the combined company and David Cordani will be President and Chief Operating Officer.

The combined company expects to achieve adjusted earnings per share accretion approaching 10% in year one, with the accretion more than doubling by year two following the closing of the transaction.