AM Best Assigns Issue Credit Ratings and Indicative Issue Credit Ratings to The Cigna Group
AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IRs) of "bbb+" (Good) to The Cigna Group's (Cigna) (headquartered in Bloomfield, CT) (NYSE:CI) new senior unsecured notes. In addition, AM Best has assigned indicative Long-Term IRs on the recently filed shelf registration of Cigna. The outlook assigned to these Credit Ratings (ratings) is stable. (Please see below for a detailed list of the Long-Term IRs.)
Concurrently, AM Best has withdrawn the ratings on the previous shelf registration that expired. All other ratings of Cigna remain unchanged.
The proceeds from the debt issuances are expected to be used to repay $2 billion of loans outstanding under an existing term loan agreement and the remainder for general corporate purposes, which may include investments and repayment of outstanding indebtedness. AM Best anticipates the issuances to increase the group's adjusted financial leverage ratio temporarily, which was 43.3% as of second quarter 2025, as measured by AM Best, and that Cigna will manage leverage down to approximately 40% in 2026. Cigna's financial debt-servicing capabilities are favorable, with good liquidity to service its debt. The company's debt maturity structure is well-laddered and interest coverage remains stable. The organization maintains solid earnings before interest and taxes interest coverage at over six times for 2024, mainly due to consistently favorable earnings.
Cigna has excellent financial flexibility supported by parent company cash, insurance subsidiary dividend capacity, non-regulated cash flow, a commercial paper program and a $6.5 billion revolving credit agreement. Nevertheless, goodwill and intangibles assets remain high at approximately 180% of shareholder equity. The high goodwill/intangibles are predominantly related to non-insurance operations, Evernorth Health Services, which contribute material non regulated cash flow, stable earnings and substantial business diversification.
The following Long-Term IRs have been assigned with stable outlooks:
The Cigna Group—
- "bbb+" (Good) on $1 billion 4.5% senior unsecured notes, due Sept. 15, 2030
- "bbb+" (Good) on $1.25 billion 4.875% senior unsecured notes, due Sept. 15, 2032
- "bbb+" (Good) on $1.5 billion 5.25% senior unsecured notes, due Jan. 15, 2036
- "bbb+" (Good) on $750 million 6.0% senior unsecured notes, due Jan. 15, 2056
The following indicative Long-Term IRs on the universal shelf registration have been assigned with stable outlooks:
The Cigna Group—
-- "bbb+" (Good) on senior unsecured debt
-- "bbb-" (Good) on preferred stock
This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments.
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