Is Cigna a Good Long-Term Investment?

Aaditya Patel
3 min readApr 4, 2021




Cigna Corporation is a company based in the United States. The company offers health insurance plans and solutions for customers across the nation. The company offers health insurance plans and various other products to individual customers as well as large companies. The company was founded in 1792.

Why You Should?

  1. Cigna has been through a lot since the day that it was founded in 1792. Through many wars, pandemics, depressions, and recessions, Cigna has continued to serve its customers and deliver results to shareholders. This just comes to show the strength of the company’s core business model.
  2. Cigna is an extremely safe and recession-proof investment due to the reasons mentioned above. Health insurance is something that is essential in the United States. Cigna will continue to report strong results during tough economic times because its customers will not cancel their health insurance plans.
  3. Cigna offers a wide range of products and services to many different kinds of customers. From health care plans to benefit management products, Cigna is a one-stop-shop for many individuals to fulfill their healthcare needs. The wide range of products and services that the company offers is one of the main reasons behind the company’s consistency. This will also benefit investors in the portfolio.
  4. Cigna will continue to see rising demand for their products as the healthcare industry continues to grow. This makes Cigna a great long-term investment option for many investors as the company will continue to grow and report good numbers. This will benefit investors.
  5. Cigna has seen rising revenues and profits over the past couple of financial years due to the reasons mentioned above. This has helped the company make brand-new acquisitions in the health insurance sector and take up other growth opportunities. This has also benefited investors in the company. In the financial year of 2020, the company reported revenues of around 160.55 billion and profits of around 8.46 billion. Both of these metrics are higher than what the company reported in the financial year of 2019 when they had revenues of around 153.74 billion and profits of around 5.1 billion.
PHOTO CREDIT: Yahoo Finance

Why You Should Not?

  1. Cigna faces tough competition in the health insurance sector from companies like UnitedHealth, CVS, Humana, Anthem, and many others. This competition might hurt the company and its investors in the future.
  2. Cigna has to deal with a negative political environment. Lawmakers from both sides might take up the calls to lower health insurance and healthcare costs in general. If this was to pass, it might hurt Cigna’s revenues and profits as they will have to lower prices. This might hurt the company and its investors.


I think that Cigna is a great long-term investment due to its position as a low-risk investment, a strong business model, a wide range of products and services, a growing healthcare industry, as well as rising revenues and profits. However, tough competition and a negative political environment might hurt the company and its investors.



Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.