Fitch affirms credit ratings for Cigna, expects health insurer to return to solid earnings

Fitch affirms Cigna’s credit ratings

SEATTLE — Fitch Ratings affirmed its ratings and negative outlook for managed health care company Cigna Corp. on Monday.

Fitch said it expects Cigna to return to solid earnings and cash flow after trouble in 2008 and early 2009. Financial results for the health care and life and disability businesses are steady and international business is growing, and the economic recovery has helped other segments, Fitch said.

Fitch affirmed its ratings for Cigna, including its “BBB+” issuer default ratings and its “BBB” senior debt rating for the company as a whole, and the “A” insurer financial strength rating on its primary insurance subsidiaries. All are investment-grade ratings.

The ratings reflect Cigna’s competitive position in the health insurance business in the U.S. Its mix of different businesses give it a financial edge over its peers, according to Fitch. Fitch said it expects earnings to remain flat for the next several quarters.

Fitch said it gave all health insurance and managed care companies a “Negative” outlook because of uncertainty about health care reform.