Cigna seeks customers outside U.S.

Cigna, the Philadelphia-based, mostly U.S.-focused health insurer, has doubled its expatriate employee benefit system, serving Americans, Europeans and others working far from home, to 700,000 covered workers, following its purchase of Vanbreda International, a privately-owned firm based in Antwerp, Belgium, which posted sales of more than 52 million euros last year. Neither firm would say what Cigna paid.

The deal makes Cigna "the largest provider of expat benefits in the world," with "deeper reach into the European market," spokeswoman Gloria Barone told me. That's "a clear indication of Cigna's growth strategy to diversify its portfolio," she added. Cigna International boss William L. Atwell said in the statement (linked above) that the company seeks "worldwide opportunties" and to build its individual-insurance business. Cigna picks up 400 Vanbreda workers who'll stay in Europe, mostly.

Cigna faces "rising out-of-pocket costs," and a weak US economy that makes it harder for employers and consumers to pay, in the US employer healthcare market, noted JPMorngan Securiteis analysts John Rex and Scott Hansen in a recent report. Boosting business in Europe and Asia, among well-paid expatriate workers, could protect the company, a little, from U.S. losses as Obama's healthcare-coverage expansion ramps up, benefiting Cigna and other insurers, over the next few years.

It's the second acquisition Cigna has done since 2007, also the second since chief executive David Cordani took over from Ed Hanway last December. In February, Cigna bought Kronos Optimal Health Co. of Phoenix, a "wellness" firm that usess "face-to-face coaching", "lifestyle management programs" and "biometric screenings" that Cigna's Onsite Health unit hopes will reduce users' reliance on more expensive medical care.

By contrast, Cigna closed at least six acquisitions under Hanway in 2006-07. Are there more in the works? "We would consier M&A activity with a focus on acquiring (new) capabilities and (larger) scale" in existing business," chief financial officer Annemarie Hagan told investors in a conference call Aug. 5.