(Reuters) – U.S. health insurer Cigna (NYSE:) Group has revived efforts to merge with smaller rival Humana (NYSE:) after abandoning its pursuit late last year, Bloomberg News reported on Friday, citing people familiar with the matter.
The companies recently held informal, early discussions about a potential deal, the report said.
Shares of Humana, which has a market capitalization of about $32 billion, rose about 6% in after-hours trading on Friday, while those of Cigna fell about 5%. According to data compiled by LSEG, Cigna was valued at about $94 billion.
Cigna and Humana declined to comment.
Last year, Reuters reported that Cigna ended its attempt to negotiate a takeover of Humana after the pair failed to agree on a price and announced a $10 billion share buyback.
No decision has been made yet, and Cigna or Humana could choose to push a deal until after the new year, or not make one at all, the Bloomberg report said.
Cigna, which deals primarily with employer-sponsored health care plans, is in the process of selling its Medicare Advantage (MA) business, which administers government-sponsored health insurance for people age 65 and older.
It struck a $3.3 billion deal earlier this year with insurer Health Care Service Corp to sell its MA business.
Humana has lost nearly 40% of its value this year as it faces multiple challenges, including declining enrollment in its top-rated Medicare plans, higher costs due to higher demand for medical care and lower-than-expected government reimbursement rates.
By the time deal talks ended, sources had told Reuters there was still a possibility of a partnership in the future.
There was also a threat of fierce antitrust scrutiny at the time due to potential consolidation in the U.S. health insurance industry.
