The Motley Fool: CIGNA Corporation's Diversification Should Deliver Above-Average Growth

Cigna (NYSE: CI  ) is an odd duck in the managed care world. Managed care is certainly about managing costs, but it is also about pricing risk; Cigna's approach appears to be avoiding risk when possible, as the company has the smallest risk-based premium business of the major managed care companies. Not unlike UnitedHealth (NYSE: UNH  ) , Cigna is looking to a diversified array of businesses, including international expansion, to help fuel growth. Also, very much unlike Aetna (NYSE: AET  ) , WellPoint (NYSE: WLP  ) , and Humana (NYSE: HUM  ) , Cigna has chosen to be quite cautious with its initial forays into the Obamacare exchanges.

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CIGNA Corporation's Diversification Should Deliver Above-Average Growth

The Motley Fool: Aetna Inc. Has Bold Ambitions In A Changing Health Insurance World

Not to belabor the point, but the Affordable Care Act (perhaps better known as "ObamaCare") is going to change the health insurance market in some pretty significant ways – even though the actual percentage of uninsured Americans isn't/wasn't as large as many people guess. In any event, Aetna (NYSE: AET  ) is approaching this new environment rather boldly. Not only has Aetna put other insurers like UnitedHealth (NYSE: UNH  ) to shame with its participation in health care exchanges, but the company has openly targeted double-digit top and bottom-line growth on a long-term basis.

I do believe Aetna's reach exceeds its grasp. The good news is that the Street isn't fully buying the story either, and actually seems to be undervaluing even a more modest outlook. I expect plenty of noise and turbulence over the next year or two as the sector adapts to the new operating environment, but Aetna looks intriguing right now.

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http://www.fool.com/investing/general/2014/01/08/aetna-inc-has-bold-ambitions-in-a-changing-health.aspx

Seeking Alpha: Coventry Makes Sense For Aetna

If at first you don't succeed in M&A, keep bidding until you do. That might be the mantra that Aetna (AET) followed, letting other players in the health insurance space pay more for other assets, but ultimately getting a pretty solid company of its own in Coventry Health (CVH). While there are certainly some risks in buying a health insurance company about two months away from the U.S. presidential election, the long-term logic of the deal seems likely to hold.

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Coventry Makes Sense For Aetna

Investopedia: WellPoint Buys More Medicaid Exposure

Funny how a Supreme Court ruling can change strategic priorities. Not all that long after management stated that it had no plans to expand its Medicaid business, WellPoint (NYSE:WLP) announced Monday that it was acquiring Medicaid managed care company Amerigroup (NYSE:AGP) in a nearly $5 billion deal. Not only does this deal look as though it can be very accretive over time (even with a 43% premium), but it arguably represents a best-of-breed buyout in a sector that could soon see more activity.

Continue reading here:
http://stocks.investopedia.com/stock-analysis/2012/WellPoint-Buys-More-Medicaid-Exposure-WLP-AGP-MOH-CNC0709.aspx

Investopedia: No Rattle At HUM

Managed care, that bizarre euphemism for health insurance, has twisted up investors for a while now. Although there are ever-present worries about the future profitability of this industry, none of the plans on the table would seem to be all that big of a risk. So while Humana (NYSE:HUM) has joined many of its brothers in a healthy rally over the past year, Wall Street still does not seem to be giving full credit to this stock.

Solid Third Quarter Results 

Humana reported that overall revenue rose about 11% this quarter, with operating revenue up a like amount. Growth was underpinned by premium growth of nearly 9% and membership growth above 6%. Profitability was likewise encouraging. The company's medical loss ratio, that is, what it pays out in claims, improved by roughly a full point to 80.7%, and the company's earning before interest, taxes, depreciation and amortization (EBITDA) rose 13%. Operating income was up a similar amount, growing 12% from the year-ago level. (To know more about EBITDA, read: EBITDA: Challenging The Calculation.)

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http://stocks.investopedia.com/stock-analysis/2011/No-Rattle-At-Humana-HUM-AET-WLP-UNH-APG-MOH-CNC-LNCR1101.aspx