Anthem Inc (NYSE:ANTM) is a leading health insurance company that has been competing at all levels with the leading health insurers of the country. But it seems it is not at all interested in the current high-power deals that are making a wave in the United States’ health insurance sector. Experts believe that this may ultimately lead to financial gains for Anthem.
Just a few days ago, CVS Health Corp (NYSE:CVS) announced that it is planning to buy Aetna Inc (NYSE:AET). Already Walmart Inc (NYSE:WMT) and Humana Inc (NYSE:HUM) are in talks for a merger whereas CIGNA Corporation (NYSE:CI) may soon takeover Express Scripts Holding Co (NASDAQ:ESRX), the pharmacy-benefits manager. Interestingly, in the last few years, most of the health insurance companies have adopted the bulking up strategy.
Even the UnitedHealth Group Inc (NYSE:UNH) has been adding up new centers and ventures to its management business for the last few years. Even recently, the largest publicly traded insurer invested in surgical care centers and physician staffing groups. Amid all these developments the silence of Anthem is surprising.
The major reason for this rush to acquire various insurance companies and bulk up their management is because the health insurance sector is expecting a slowdown and all these big health insurance companies want to add new insurers to their list. Anthem already has a reputation for being a snail-paced company. But this time its laggard reputation may ultimately make it gain financially more than its competitors.
Anthem To Get Better Growth Opportunities Due To Its Strategy
According to Wall Street Journal, the deals that are in the pipeline may not see the light of the day as there are several regulatory hurdles that are needed to be fulfilled. Thus, there is a strong possibility that the whole formalities may take a longer time than expected thereby diminishing the importance and profitability of the acquisition.
Moreover, the companies undertaking the acquisition process have not been popular with the health insurers in the recent years. On the other hand, Anthem has till date managed to squeeze out of all the integration and regulatory problems and hence have lots of growth opportunities and options to experiment with.