LOUISVILLE, Ky. (WDRB) -- Cigna told its investors Monday it doesn't plan to merge with Louisville-based Humana.
Last December, the two companies failed to agree on a price as Cigna pursued the purchase of the Louisville-based company. The merger would have created a $140 billion giant in the health insurance industry. The Wall Street Journal previously reported Cigna will instead focus on a smaller acquisition.
But Bloomberg reported last month that the two health insurance companies were in early talks with informal discussions about a potential deal.
Cigna’s stock rose 7.5% on Monday, and Humana’s sank 2.3%.
Humana specializes in Medicare Advantage, the fastest growing area of health insurance, while Cigna is stronger in commercial insurance and only a minor player in Medicare.
Humana, which was founded by Louisvillians David Jones Sr. and Wendell Cherry in 1961, is by far the largest corporation based in Kentucky. Humana is the only Fortune 500 company headquartered in Kentucky.
About 10,000 of the company’s 63,000 employees are based in the Louisville area, the company has said.
Even as an independent company, Humana’s connection to Louisville has weakened in recent years, as WDRB documented in 2022. The company has greatly reduced its office footprint in downtown Louisville while establishing an executive office near Washington, D.C.
Earlier this year, Humana announced its plans to vacate its iconic, 27-story building at 500 W. Main Street in downtown Louisville.
Related Stories:
- Report: Cigna and Humana resume merger discussions
- Report: Cigna decides against pursuing merger with Humana
- Greenberg: Louisville to play 'large role' in Humana's future
- Humana said to be in merger talks with rival Cigna
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