'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 Evolution of Business: From Bottom Line to Value Creation And Impact

      In today's world, consumers want to know how corporations, as a whole, are taking a stand. In fact, customers are 43 percent more likely to purchase a product from a company they know is committed to social value. It's not just consumers pushing this trend. Financial service industry leaders, like KeyBank's Beth Mooney and BlackRock's Larry Fink, are challenging business owners and the C-Suite to rethink their economic impact, environmental footprint and social conscience.



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


  • Most Popular Stories

    • Indy Firm Taps Appirio Exec as CEO

      An Indianapolis-based design and innovation consulting firm has named a new chief executive officer. Studio Science says Steve Pruden, who most recently served as senior vice president of human resources with Indy tech company Appirio, will lead the company.

    • Court Sides With Lilly on Alimta Case

      The latest in a string of patent infringement cases involving Indianapolis-based Eli Lilly and Co. (NYSE: LLY) has ended positively for the pharmaceutical giant. The U.S. District Court for the Southern District of Indiana has ruled in favor of Lilly, preventing a competitor from launching an alternative form of its Alimta vitamin regimen. The court ruled that Lilly's patent for Alimta would be infringed upon if India-based Dr. Reddy's Laboratories had moved forward with...

    • St. Vincent Announces Layoffs

      St. Vincent Health says it has laid off 85 employees throughout the state. In a statement to Inside INdiana Business, St. Vincent cites a rapidly-evolving healthcare environment as a reason for the workforce reduction. 

    • (Image Courtesy: Lilly Oncology)

      Lilly Closes on Mega Acquisition

      Indianapolis-based Eli Lilly and Co. (NYSE: LLY) has completed its acquisition of ARMO BioSciences Inc. of California. The deal, which was valued at approximately $1.6 billion when first announced last month, boosts Lilly's immuno-oncology pipeline. Lilly offered $50 per share of ARMO stock for the company. ARMO's portfolio includes...

    • Auburn City Hardware Store Sold

      A historic northeast Indiana retailer is under new ownership. The KPC News reports the Auburn City Hardware Store has been sold to VRJ Holdings, which is also based in DeKalb County.