Cigna Bets on Seniors, Employers for Future Without Anthem

Underscoring his caution, Cigna on Wednesday said it would exit Maryland's Affordable Care Act public exchange program for 2018. The Bloomfield, Connecticut-based company offered coverage under the health law in seven markets this year, and revenue from the program accounted for a small portion of sales.

As for deals, the CEO is looking in five main areas, ranging from the Medicare Advantage business for the elderly to physician-engagement tools. He declined to comment on speculation that the company could merge with Humana Inc., the Medicare Advantage powerhouse. Humana's own mega-deal, a $37 billion acquisition by Aetna Inc., was also abandoned this year, after it was challenged by the Justice Department.

Cigna rose less than 1% to $170.18 at the close on Wednesday. The stock has gained 28% this year, beating the 8.8% advance of the Standard & Poor's 500 Index.

The commercial coverage business and the Medicare Advantage unit are expected to post revenue growth in the high single-digits over the long term, the health insurer told investors. The much smaller global supplemental benefits unit may grow more quickly, at a mid-teens rate, Cigna said. Overall, the company sees per-share earnings growth of about 10% to 13% annually.

Cigna had suffered a setback in Medicare Advantage, after the federal government in early 2016 blocked it from signing up new customers for the program amid a government probe. The company has since fixed the problems identified by the government, and can begin signing customers up again in July.

— Read Senators Use Chronic Care Bill to Mend Fenceson ThinkAdvisor.