All posts from in,

Anthem Sees Synergies from Cigna Buyout; Debt Still High

Anthem's successful divestitures, prudent capital management, modest cash position, strategic acquisitions and ACO arrangements are impressive. The latest proposal for acquiring Cigna Corp. CI, when realized, should be accretive to Anthem’s earnings. The adjusted EPS accretion for the first year is projected to be greater than 10%, which is expected to double in the second year.

Successful acquisitions, rollouts of health insurance exchanges and national accounts in the commercial segment as well as Medicaid expansion in the government segment have helped the company enhance its membership base. The trend is expected to continue through 2015, which is evident from the company’s 2015 membership guidance being reiterated. Anthem has also been succeeding in the Administrative Services Only ("ASO") marketplace. Increase in the Local Group sales and conversion of fully-insured contracts to self-funded ASO contracts, along with BlueCard and National Accounts...