GDP watch
  • Chesapeake Energy Corporation (NYSE:CHK)’s Core Assets Delivered Growth
  • Trinity Industries Inc. (NYSE:TRN) Successfully Completes $1.1 Billion Railcar Leasing Joint Venture Deal
  • Microsoft Corporation (NASDAQ:MSFT): A New Focus On Hardware
  • Amtech Systems Inc. (NASDAQ:ASYS)’s shares declines by 2.98%
  • Wells Fargo & Co. (NYSE:WFC)’s shares surged by 1.58%
In News
  • Chesapeake Energy Corporation (NYSE:CHK)’s Core Assets Delivered Growth
  • Trinity Industries Inc. (NYSE:TRN) Successfully Completes $1.1 Billion Railcar Leasing Joint Venture Deal
  • Microsoft Corporation (NASDAQ:MSFT): A New Focus On Hardware
  • Amtech Systems Inc. (NASDAQ:ASYS)’s shares declines by 2.98%
  • Wells Fargo & Co. (NYSE:WFC)’s shares surged by 1.58%
  • Spanish Broadcasting System Inc. (NASDAQ:SBSA)’s shares surged by 23.32%
  • Transocean Ltd. (NYSE:RIG) Faces Icahn Fight
  • Microsoft Corporation (NASDAQ:MSFT) Makes Its Choice On CFO

Investment

Cigna Gains after Berkshire Deal

February 6, 2013 by Roy Barnes in Investment, Market with 0 Comments

Northern, WI 02/06/2013 (gdpwatch) – The third-largest health insurance company Cigna Corp.(NASDAQ:CI) advanced to its highest value in about three decades after it announced a $2.2 billion transaction that involves the transfer of death-benefit liabilities  to Berkshire Hathaway Inc. (NYSE:BRK.A) which is owned by Warren Buffet.

Cigna rose 3.5 percent to close at $60.38 in New York. This is the company’s highest share probably since April 1982. The company, based in Bloomfield, Connecticut, made a statement that a reinsurance agreement had been made for the business of variable-annuity death-benefits that it had been trying to depart from.

The Omaha, Nebraska-based Berkshire acceded to take on liabilities of about $4 million in the transaction. The deal is funded by Cigna with investment assets worth $1.8 billion, cash of $100 million and tax benefit of approximately $300 million. Berkshire went up 1.3 percent to $146, 825 and has gained 23 percent in the last year.  During that time, Cigna rose 39 percent.

Insurance float has been used Buffet to boost growth in Berkshire for the last 40 years. Ajit Jain, who is the reinsurance chief in the company, had a hand in the raising of the funds which was a total of $72 million by the end of September. The funds were raised by making deals with firms that include American International Group Inc. (NYSE:AIG) and CNA Financial Corp. (NYSE:CAN) to adopt asbestos liabilities and to deal in protection for natural disasters that are the most expensive.

The CEO of Cigna David M. Cordani said on a conference call yesterday that Buffet is using liabilities from units that have active policies of about 435,000 in number which fell 10per cent during 2012. The sale of Cigna is will not affect its predicted earnings or plans for capital deployment. Cigna CFO Ralph Nicolleti says that payments to Berkshire will be completed before the end of2013.

 The shares of Cigna Corp. (NASDAQ:CI) were down by 1.74% and currently trading at $59.33

The shares of Berkshire Hathaway Inc. (NYSE:BRK.A) were down by 0.27% and currently trading at $146,432.50

The shares of American International Group Inc. (NYSE:AIG) were down by 0.44% and currently trading at $38.58

The shares of CNA Financial Corp. (NYSE:CAN) were down by 0.35% and currently trading at $31.49

Tagged , , ,

About Roy Barnes

Roy Barnes has worked as a New York Times journalist who reports internationally in video and print. His social and economical state coverage has won awards from the Overseas Press Club, Concentra, SAJA and was nominated for The Livingston Award. He covered the Asian Tsunami, investigated Hugo Chavez's land wars, reported on Russia’s anti-American youth movements. Before joining The GDP Watch, Financial Group Media and The NY Times, Barnes worked as a freelance print reporter, his career began as a Pulliam Fellow at the Indianapolis Star.

View all posts by Roy Barnes →

Related Posts

Leave a reply

Your email address will not be published. Required fields are marked *

*

GDP Watch
Financial Group Media Company. 250 Second Avenue South, Suite 106, Minneapolis, MN 55401

Contact Us / E-Mail

Contact Us / Phone Us

  • Support Desk:612-259-6590
  • Licensing & Copyright:281-419-5725 ext.102
  • Toll Free:877-652-5295
  • Fax:281-419-5712