1. Bijen Patel

2. Overview NYSE : CI Market Cap. : 33.18B Based in Bloomfield, CT & operates in 30+ countries One of the 5 Major Healthcare Corporations (Aetna, UnitedHealth Group, Anthem, Humana)

4. Recent News Cigna temporarily banned from new Medicare plans (Jan 22). Investor alleges Cigna violated Securities Exchange Act (Feb 4). Cigna has projected that in 2016, it will manage to grow its Medicare Advantage (or MA) customer base both in existing markets and in new markets such as Kansas City. Cigna Extends Collaborative Care to 75,000 Floridians Through New Arrangements with Five Medical Groups. Anthem and Cigna announce merger.

5. How does Cigna generate revenue? Cigna Corp is a health services organization with insurance subsidiaries that are providers of medical, dental, disability, life and accident insurance and related products and services. Segments include: Commercial & Government Global Health Care Global Supplemental Benefits Group Disability & Life Specialty Products - Medical, Behavioral, Pharmacy Management, Dental and Vision Other operations: - Include Corporate-owned Life Insurance, Individual life insurance and annuity and retirement benefits businesses; and Run-off settlement annuity business.

7. Industry Comparison

8. 9/30/20156/30/2015 CIUNHAETCIUNHAET ROA (%)3.814.44.114.096.355.33 ROE (%)18.8214.4414.2121.2219.1619.27 Total Debt to Equity 0.430.950.490.450.960.51 Total Asset Turnover 0.651.571.10.661.651.11

9. Discounted Earnings Model

10. Merger Price = $166 Anthem and Cigna are merging. Cigna shareholders being offered $103.50 + 0.5152 shares of Anthem Current Anthem Price = $121.55 Merger Value = $166 Current Cigna Price = $130.30 27.40% Return in Less than 1 Year (Expected to be approved in 2016) Not yet factored into market because investors concerned DoJ won’t approve … same as Aetna/Humana

11. Will it be approved? There is actually minimum overlap in the segments of the two companies. No need to be concerned about monopolistic conditions. Furthermore, competitor Aetna/Humana will still be there as a major competitor … they are also attempting to merge. CEO of Cigna presented at Morgan Stanley Global Healthcare Conference - explained why he is confident merger will be approved in 2016 CEO of Aetna confident that Humana merger will also happen in 2016

12. What if it is not approved? Anthem owes $1.8B termination fee to Cigna if not approved. Represents 5.4% of market cap. This is the worst that can happen. Very unique opportunity. Still a great stock to buy, considering market is undervaluing stock by 40% even without merger consideration. Higher interest rates lead to increased sales for savings products, such as annuities, which increase bottom lines for insurance companies. Low debt (0.4 D/E) means less significant impact for debt payments.

13. Questions?