Cigna Corp. reported stronger-than-expected profit in the first quarter, but the health insurer's stock fell after the company hinted that its proposed tie-up with Anthem may not get regulatory approval this year.
Cigna's disclosure came a few days after Anthem announced its longtime chief financial officer, Wayne DeVeydt, was resigning.
However, Anthem said DeVeydt was leaving to spend more time with his family and to do charitable work, adding that his departure had nothing to do with Anthem's pending financial matters.
Executives at Anthem and Cigna have said they expected to complete the deal in the second half of 2016, depending on when federal and state regulatory reviews are done.
However, “in light of the complexity of the regulatory process and the dynamic environment, it is possible that such approvals may not be obtained in 2016,” Cigna said in a regulatory filing, adding that it “continues to work toward achieving regulatory approval as quickly as possible.”