'Options Open' For Potential Anthem Mergers, Acquisitions

Posted: Updated:

Two months after a proposed $54 billion merger fell apart with Cigna Corp. (NYSE: CI), the chief executive officer of Indianapolis-based Anthem Inc. (NYSE: ANTM) says the insurer will "keep options open" for other opportunities. During a conference call with investors Wednesday morning, Joe Swedish said "broadly-speaking," growth through M&A is still a significant long-term strategy. He used Anthem's 2015 acquisition of Florida-based insurer Simply Healthcare Holdings Inc. as a prime example of a beneficial situation.

"We're very mindful of the fact that scale does matter in this pursuit," Swedish said. "We will continue to very carefully examine the marketplace to assess our optionality, our targets and hopefully create fits that are really synergistic with respect to how we're best going to serve the marketplace."

During the call following the release of Anthem's second quarter earnings report, Swedish also discussed the changing landscape and continued uncertainty of the regulatory environment for the insurance industry. He said officials have been keeping tabs "by the hour" on what's going on in Washington, which includes yesterday's narrow approval in the Senate of a procedural move to go forward with potential repeal or adjustments of the Affordable Care Act and a subsequent proposal that was voted down hours later. Swedish believes stabilizing the insurance markets could be possible in the future and his team has suggested "ingredients" that could create regulatory fixes to so-called Obamacare. He says it's still "anybody's guess" about the form any potential changes will take.

"We're very hopeful and we do believe that stabilization is a distinct possibility." Swedish added "obviously, as I've said, we'll continue to make the necessary contributions for our voice to be heard as well as the voice of the industry overall."

Anthem Chief Executive Officer Joe Swedish says the company is assessing the market carefully.
  • Perspectives

    • The Power of Partnerships

      You can't go it alone in tech. All technology companies, regardless of their segment, live in an ecosystem comprised of organisms of varying complexity. More mature companies in established categories can function at the top of the food chain, consuming smaller companies through acquisition, but startups are seldom if ever in a position to gain dominance through acquisition. It’s vital for the success of a startup to be able to play well with others...



Company Name:
Confirm Email:
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections


  • Most Popular Stories

    • Liberty Mutual Plans 400 New Carmel Jobs

      Boston-based Liberty Mutual Group Inc. is planning to add up to 400 Carmel jobs as part of a $14 million expansion plan. The insurance company has a global presence and currently employs 1,430 in central Indiana. The Indiana Economic Development Corp. says the new jobs, expected to be created by 2021, will pay more than the state and Hamilton County average wages. Plans call for Liberty Mutual to lease...

    • Alliance Française Moves HQ to Carmel

      The Indianapolis chapter of the Alliance Française has relocated its headquarters to Carmel. The organization says the new located, at Pedcor Square in Carmel City Center, is a strategic location due to a large number of its members residing in the Hamilton County city. 

    • Opioid Withdrawal Treatment Lands FDA Clearance

      The U.S. Food and Drug Administration has given clearance for a medical device developed in Indiana to help treat symptoms of opioid withdrawal. The device, known as the NSS-2 BRIDGE, was created by Innovative Health Solutions Inc. in Versailles.

    • LCI Industries Adds RV Vet to Board

      A well-known figure on the northern Indiana recreational vehicle scene is joining the Elkhart-based LCI Industries (NYSE: LCII) board. Grand Design Recreational Vehicle Co. co-founder Ron Fenech, who previously held executive positions with Thor Industries Inc. (NYSE: THO) and Keystone RV Co., will also serve on the LCI board's corporate governance and nominating committee.

    • Coal Loading Facility Planned For Princeton

      A subsidiary of Denver-based Hallador Energy Co. (Nasdaq: HNRG) has announced plans to construct a new truck-to-rail coal loading facility near Princeton. Sunrise Coal LLC in Terre Haute says the facility, known as the Princeton Loop, is expected to be complete in the spring of 2018.