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Investing.com -- Moody’s Ratings has affirmed The Cigna Group’s senior unsecured debt rating at Baa1, maintaining a stable outlook for the health services company and its subsidiaries.
The rating agency also affirmed Cigna Holding Company’s senior unsecured debt rating at Baa1, Cigna’s preferred shelf at (P)Baa3, and senior unsecured shelf at (P)Baa1.
Additionally, Moody’s affirmed the A2 insurance financial strength ratings of Connecticut General Life Insurance Company and Cigna Health & Life Insurance Company, along with Cigna’s P-2 commercial paper rating.
The affirmation reflects Cigna’s strong market position in the commercial space and relatively low underwriting risk due to its high percentage of administrative services only (ASO) business. Moody’s also cited the company’s strong risk-based capital position and diversification through its Evernorth health services unit, which generates more than half of cash flows to the parent.
These strengths are partially offset by Cigna’s relatively high leverage for its rating category, though it has remained steady. As of June 30, 2025, the company’s debt/EBITDA with Moody’s adjustments was 2.5x compared to 2.6x the prior year, while debt/capital with Moody’s adjustments was 44.5% compared to 43.8% as of June 30, 2024.
Moody’s noted that Cigna’s insurance business is mostly concentrated in the commercial insurance segment following the sale of its Medicare business in March. While the commercial market has been adversely impacted by higher medical cost trends, this focus has allowed Cigna to avoid the more significant earnings pressures seen in Medicare and Medicaid segments.
The stable outlook is based on Cigna’s steady performance, reflecting its lower-risk ASO business and diversification from Evernorth health services. Moody’s expects Cigna to continue competing effectively in commercial insurance and traditional pharmacy services while generating growth in specialty pharmacy and care services.
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