(Reuters) – U.S. health insurer Cigna Group has revived efforts to merge with smaller rival Humana after abandoning the 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 rose about 5% in after-hours trading on Friday, while those of Cigna fell about 4%.
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.
By the time deal talks ended, sources had told Reuters there was still a possibility of a partnership in the future.
Cigna struck a $3.3 billion deal earlier this year with insurer Health Care Service Corp to sell its Medicare business, which administers government-backed health insurance for people 65 and older.
Should a merger occur between Cigna and Humana, it could create a company worth nearly $130 billion based on their market value.
Humana has lost nearly 40% of its value this year as it struggles with declining enrollment in its top-rated Medicare plans and higher costs due to higher demand for medical care.
Cigna and Humana declined to comment.
(This story has been refiled to correct a typographical error in paragraph 7)
(Reporting by Mariam Sunny in Bengaluru; Editing by Alan Barona)
