Citi Analyzes CI Investor Day

Citi is providing some analysis on the CIGNA Corporation (NYSE: CI) investor day.

“CIGNA argued that their pricing hasn't been overly aggressive,” Citi writes. “Still, it's hard to get comfortable, considering that CIGNA was the only plan to grow risk membership last year, while CIGNA is routinely the first plan mentioned by competitors in pricing discussions.

“In addition, CIGNA was pretty comfortable last year it priced the Medicare PFFS product to a 2-3% margin, and it ended up only breaking even, despite the big drop in utilization that aided everyone in the industry.”

CIGNA Corporation closed Monday at $42.96.