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Cigna hedges on timing of Anthem merger review
Modern Healthcare

Cigna Corp. reported stronger-than-expected profit in the first quarter, but the health insurer’s stock fell Friday after the company hinted that its proposed tie-up with Anthem may not get regulatory approval this year.

Cigna’s disclosure came just a few days after Anthem announced that its longtime Chief Financial Officer, Wayne DeVeydt, was resigning. However, Anthem said DeVeydt was leaving to spend more time with his family and to do charitable work, asserting that his departure had nothing to do with Anthem’s pending financial matters.

Over the past several months, executives at Anthem and Cigna have repeatedly said they expected to complete their proposed deal in the second half of 2016, depending on when the Justice Department and state insurance departments finish their antitrust reviews. However, a regulatory filing released Friday raised the idea that the in-depth evaluations may push back the timeline until next year.