Cigna is the first company to be awarded state economic assistance under legislation initiated by Gov. Dannel P. Mallloy and enacted this year by the General Assembly. Cigna's decision is particularly important to Connecticut, which has seen much of its once-dominant insurance industry leave or be bought by out-of-state companies.
The so-called "First Five" initiative intended to consolidate various tax credits to draw the first five businesses that invest $25 million in Connecticut and create 200 jobs over five years.
"It was quite unique and caused us to think very differently about the opportunity in the marketplace," David Cordani, Cigna's chief executive, said at a ceremony outside Cigna's offices in Bloomfield.
Cigna's U.S. operations have been based in Philadelphia since 1982.
Cordani, who started his tenure in January 2010, is a Connecticut native with a master's degree in business administration from the University of Hartford.
The company said the jobs increase boosts employment to more than 4,000 workers in Connecticut. Cordani said at a news conference that Cigna plans to make an investment "well in excess of $100 million" over several years, but declined to elaborate.
The new jobs will be in technology, personnel, finance, legal and underwriting, Cordani said.
He said the change in headquarters would not result in job cuts in Philadelphia, and Cigna plans to maintain its operations there.
"This is not about picking up all the jobs and moving," Cordani said. "This is about Cigna growing its presence in Connecticut."
Under the terms of the agreement, Cigna will be able to use the incentives over 10 years. The benefits could increase if Cigna adds more than 200 jobs.
Malloy said the program creates a clear sign to companies already in the state or those thinking of moving here that Connecticut officials are ready and willing to work with them.
"Cigna is proof that these tools work and that Connecticut is open for business," Malloy said in a written statement.
Sen. Kevin Kelly, a Republican member on the Commerce Committee, praised the tax credit program aimed at bringing jobs, but said the legislature needs to promote job creation in small business.
"I think this is a good start, but big business isn't the only business," he said after the Cigna announcement. "The lion's share of job growth occurs in small family businesses. I think that's where we should be focusing our energy.
In May, Cigna posted first-quarter net income of $429 million, up 52 percent as medical claims fell and the international business grew again.
Cigna's main segment is U.S. health insurance. The managed care company also touts its overseas business as a key source of growth.
It sells individual insurance in several countries and operates an expatriate business that provides coverage for people living outside their home countries.
Cigna, which has roots in Connecticut, was created in 1982 through a combination of Connecticut General Life Insurance Co. and the Insurance Company of North America. It chose Philadelphia as U.S. headquarters that year.
