If Cigna is able to divest itself of its variable annuity death benefit business, it would be a credit positive for the insurer, according to a Moody’s analyst.
The comment was prompted by an interview published in Bloomberg in which Cigna CEO David Cordani said the company was nearing a deal to sell the line. “It will run out for another decade and a half, so someone who wants to run it out, it’s an attractive proposition,” Cordani was quoted as saying in an interview at the JPMorgan Chase & Co. health-care conference held recently in San Francisco.
However, Cordani did not give a time frame for any deal, saying only that it could happen as soon as this year. No potential buyer was specified.
Cigna’s variable annuity (VA) death benefit business is part of its reinsurance operations, which it discontinued in 2000 and put in run-off mode, noted Moody’s senior vice president Stephen Zaharuk.