Cigna Credit Ratings Affirmed at A/A+ with Stable Outlook, 43% Leverage
AM Best affirmed Cigna’s Financial Strength Rating at A and Long-Term Issuer Credit Rating at a+ for its U.S. life/health units, and bbb+ for the group, all with stable outlooks. Ratings reflect strong BCAR, 43% financial leverage, over six times EBIT coverage and 176% goodwill ratio.
1. Credit Ratings Affirmed
AM Best affirmed Cigna’s Financial Strength Rating at A and Long-Term Issuer Credit Ratings of a+ for U.S. life/health subsidiaries and bbb+ for the group, all with stable outlooks. Short-Term Issue Credit Ratings were also affirmed.
2. Balance Sheet Strength
Cigna Life & Health Group’s risk-adjusted capitalization remains strongest level by BCAR, supported by investment-grade fixed income and cash. Elevated leverage of 43% and goodwill/intangible assets at 176% of equity are offset by six times EBIT coverage and strong liquidity.
3. Outlook and Strategic Factors
The sale of Medicare and CareAllies in 2025 is projected to reduce revenues but improve operating performance. Strong earnings and cash flows from Evernorth Health Services, diversified business profile and comprehensive ERM underpin the stable outlook.