Cigna, Humana Are Discussing Combination of Insurance Giants (2)

Cigna Group and Humana Inc. are in talks to combine, but both companies’ shares dropped on the prospects of joining two of the biggest US health insurers in an industry that’s already highly consolidated.

The pair are discussing a cash-and-stock deal but the timing and structure are unclear, according to people familiar with the matter. Deliberations are ongoing and there’s no certainty they’ll result in a deal, according to the people, who asked not to be identified discussing confidential information. Representatives for the two companies didn’t respond to requests for comment.

Cigna closed down 8.1% on Wednesday, its biggest one-day ...