Health insurers seem to want to get cozy with one another. On Monday, Anthem made its second bid in 10 days for Cigna, offering $175 a share, according to a Bloomberg report that cited unidentified sources. That caused both stocks to spike in midday trading.
Anthem's bid for Cigna represents the latest in what Bloomberg described as a "consolidation wave" in the health insurance industry. In May, Cigna targeted another health insurer, Humana (HUM), as a possible takeover target.
The spike in mergers in the industry is due to the Affordable Care Act, Bloomberg said. With more people signing up for health care coverage and the law putting pressure on profits, consolidation may be one way companies can cut costs while growing.
Anthem climbed 2.3% to $164.44 in New York, while Cigna rose 12% to $153.50.
Wells Fargo sent its mobile response unit to Houston to help clients get their financial lives back on track after flooding that devastated the region last month.
The bank describes its mobile response unit as a 75-foot, heavy-duty commercial "office on wheels;" it's equipped with private offices and backup generators. Team members are available to help customers quickly process insurance claim checks, and mortgage specialists can discuss payment options.