Cigna: A Slow Mover That Rewards Patience

Insurer Cigna Corp. CI, first discussed here on May 28, 2009 at a price of $21.89, has moved out of a trough recorded this summer, and I obviously still like the shares at this juncture. Cigna should post a 1-3% revenue gain in 2011, after a likely double-digit increase in 2010. CI's health care unit should lead the way, with the unit's revenue advancing on both increased subscribers and higher premiums. What's more, the retention rate for new products for individual, small-group, and middle market customers has been impressive; products for national accounts, less-impressive. Further, CI's group disability and life insurance units should also notch improved performances in 2011. Increased focus on international business represents another positive data point. Continue reading the article.