Anthem Inc., Indianapolis, is acquiring Cigna Corp., Bloomfield, Conn., in a cash and stock transaction valued at $54.2 billion, the companies announced Friday, creating an entity with $15.6 billion in retirement plan assets.
Cigna shareholders will receive $103.40 in cash and 0.5152 Anthem common shares for each Cigna common share, a joint news release said. The companies expect the deal to close in the second half of 2016.
Anthem had $2 billion in defined benefit plan assets and $5.1 billion in 401(k) plan assets as of Dec. 31, according to its most recent 10-K and 11-K filings. Vanguard is the 401(k) plan's record keeper.
Cigna had $4.2 billion in defined benefit plan assets at year-end, according to the company's most recent 10-K filing and $4.3 billion in 401(k) plan assets, its most recent 11-K filing shows. Prudential Financial is the 401(k) plan's record keeper.
According to the filings, Anthem's defined benefit plan actual asset allocation was 38.4% fixed income, 30% domestic equities, 19.2% other and 12.4% international equities; Cigna's DB plan allocation was 44% fixed income, 17.2% domestic equities, 9.1% international equities, 8.6% securities partnerships, 7.9% real estate, 6.8% hedge funds, 3.8% cash and other, and 2.6% commercial mortgage loans.
“Benefit plan integration is a long way off,” Anthem spokeswoman Kristin Binns said in an e-mail. “There are no plans in action to merge the pension plans at this time.”
Cigna spokesman Matthew Asensio did not return a phone call by press time.