Healthcare industry participants and analysts were mostly unsurprised by the recently announced $67 billion deal between Cigna Corp. and Express Scripts Holding Co. as the space moves toward consolidating drug middlemen with managed care organizations. Cigna President and CEO David Cordani said on a call that the combined company is expected to establish a wide-ranging portfolio, integrating healthcare services through a new business entity.
Spencer Perlman, an analyst at Veda Partners, in a quote to The Hartford Courant, said the deal "makes sense strategically" for Cigna and the U.S. health care system. However, the American Medical Association which last week asked Congress to "closely scrutinize" the merger between CVS Health Corp. and Aetna Inc., said the Cigna-Express Scripts deal "magnifies competition issues in the deal between CVS and Aetna."
Centers for Medicare and Medicaid Services Administrator Seema Verma warned a key Idaho insurance regulator that she would enforce the Affordable Care Act
HCC Life Insurance Co. is nearing a $5 million settlement with state regulators following an investigation into the company's sales of short-term health insurance plans, sources familiar with the matter told S&P Global Market Intelligence. To be compliant with the ACA, health insurance plans must last at least one year and provide a minimum set of benefits that short-term plans often lack.
Allstate Corp. is sponsoring Sanders Re Ltd. (Series 2018-1), a $400 million catastrophe bond
American International Group Inc.'s top executive approached Validus Holdings Ltd. about a possible tie-up in late 2017, and the companies took just over two months to formally sign a $5.56 billion deal, according to a regulatory filing.
Keefe Bruyette & Woods sees property and casualty insurance brokers
Featured news
No more egg-based flu vaccines, says Fauci; hospitals rationing basic medicines: The director of the National Institute of Allergy and Infectious Diseases believes it is time to move away from the egg-based process of developing a flu vaccine; and manufacturing delays have fueled nationwide shortages of basic medicines.
Financial news in other parts of the world
Asia-Pacific: QBE sells stake in Australian broker; Bank Central Asia FY'17 profit rises 13%
Europe: ECB holds rates; Swiss Raiffeisen chair resigns; ING boss pay hike draws ire
Middle East & Africa: Sanlam in $1B Morocco deal; KCB banks on mobile payments; Tunisian dinar warning
Latin America: Banco Galicia-Finansur deal approved; Peru cuts benchmark rate
The day ahead
Early morning futures indicators pointed to a mixed opening for the U.S. market.
In Asia, the Hang Seng increased 1.11% to 30,996.21, and the Nikkei 225 increased 0.47% to 21,469.20.
In Europe, around midday, the FTSE 100 was up 0.04% to 7,205.96, and the Euronext 100 was up 0.09% to 1,027.03.
On the macro front
The employment situation report, the wholesale trade report and the Baker-Hughes Rig Count report are due out today.
