CIGNA Moving HQ to Bloomfield and Adding at least 200 Jobs

[HartfordTycoon]

This could be huge economic development news for Bloomfield and Greater Hartford. Hopefully they will be moving the HQ up from Philly but if not this is still great news. This would be a huge success for the Governor's First Five program regardless of what you opinions of him are.

Hartford Courant

CIGNA Corp. and Gov. Dannel P. Malloy will make a jobs announcement at CIGNA's Bloomfield campus Tuesday, and it could mean the health insurer is moving its headquarters from Philadelphia to Connecticut.

That has been the hope among state economic development officials ever since CIGNA named David M. Cordani as CEO in 2009. Cordani is a Waterbury native and Simsbury resident, and has offices in both locations.

[The Voice of Reason]

This could be huge economic development news for Bloomfield and Greater Hartford. Hopefully they will be moving the HQ up from Philly but if not this is still great news. This would be a huge success for the Governor's First Five program regardless of what you opinions of him are.

Hartford Courant

CIGNA Corp. and Gov. Dannel P. Malloy will make a jobs announcement at CIGNA's Bloomfield campus Tuesday, and it could mean the health insurer is moving its headquarters from Philadelphia to Connecticut.

That has been the hope among state economic development officials ever since CIGNA named David M. Cordani as CEO in 2009. Cordani is a Waterbury native and Simsbury resident, and has offices in both locations.

HQ or not, Cigna is more and more becoming a CT based company.

Most of the top leadership is now Bloomfield based. Cordani has hired a CFO and a cheif legal person and placed them in Bloomfield, so it seems most of the C level people are here allready.

Boy, Id love it if we had the size and backing as a state to offer better incentives to corporations to relocate. being so small with our tax burden and stuff makes it rough. but Cigna could fill Bloomfield campus up for sure and really drive development north of hartford.

EDIT

http://blogs.courant.com/connecticut_insurance/2011/07/cigna-bringing-at-least-200-jo.html

courant is saying HQ is likely!!!

[HartfordTycoon]

It's official, Bloomfield is now a headquarters town! Home to a global fortune 500 company! Good for them and Greater Hartford! Who knows, maybe they can use this first five thing to get Travelers to officially come home to Hartford and to make sure NU doesn't go to Boston....

Hartford Courant

[The Voice of Reason]

The NU thing makes me nervous. so, what, we are now at 6? <BR><BR><BR>State Company Fortune 500 rank City Revenues Rank ($ millions)<BR>1 General Electric 6 Fairfield 151,628<BR>2 United Technologies 44 Hartford 54,326<BR>3 Aetna 77 Hartford 34,246<BR>4 Hartford Financial Services 117 Hartford 22,383<BR>5 Xerox 121 Norwalk 21,633<BR>5 Cigna 122 Bloomfield 21,253<BR>6 Praxair 241 Danbury 10,116<BR>7 Stanley Black &amp; Decker 288 New Britain 8,409.6<BR>8 Northeast Utilities ? Hartford 8,124<BR>9 Pitney Bowes 421 Stamford 5,425.3<BR>10 Emcor Group 439 Norwalk 5,121.3<BR>11 W.R. Berkley 475 Greenwich 4,724.1<BR>12 Terex 485 Westport 4,575.9<BR><BR><BR><BR><BR>Problem is, we can loose NU very easily, but I suppose its slightly possible we could regain Travelers, but I wont be holding my breath quite yet on that one. Cigna, was the 5th largest in PA. and the 3rd largest in metro Philly. I think it will be the 4th largest in metro Hartford and will be 6th largest in CT according to 2011 fortune 500 list.<BR><BR>I am estimating NU-Nstar in these rankings as Nstar was not listed, but its damn near the same size as NU, so I just added 40% to the NU number<BR><BR><BR><BR>

[HartfordTycoon]

I would have to think that it would be tempting to the new NU to take advantage of the first five program to essentially just stay where they currently are. I would think it's a better deal than whatever MA would offer them incentive-wise. Same goes for Travelers. NY isn't giving them anything, why not move the HQ back to Hartford and try to get some taxbreaks and other goodies? Also in Stamford, I would think that they can use this to try to keep UBS. Hopefully they are a few steps ahead of me though and already doing these things.

[The Voice of Reason]

I would have to think that it would be tempting to the new NU to take advantage of the first five program to essentially just stay where they currently are. I would think it's a better deal than whatever MA would offer them incentive-wise. Same goes for Travelers. NY isn't giving them anything, why not move the HQ back to Hartford and try to get some taxbreaks and other goodies? Also in Stamford, I would think that they can use this to try to keep UBS. Hopefully they are a few steps ahead of me though and already doing these things.

all perfect examples of where this can be used. I hold the same hopes as you.

I re read the article today as it had been updated several times in the last 20 or so hours.

It appears as though the deal is better than it looked at first light.

Cigna has to spend 100 million on site improvements and such, and well I was reading that only 15 million is guaranteed to cigna, while the CEO is also very committed to bringing more than 200 jobs. and is hoping to hit the 800 goal, but that will require some business growth.

its a better article now, I suggest you guys re-read it from the courant.

[nor'easter]

all perfect examples of where this can be used. I hold the same hopes as you.

I re read the article today as it had been updated several times in the last 20 or so hours.

It appears as though the deal is better than it looked at first light.

Cigna has to spend 100 million on site improvements and such, and well I was reading that only 15 million is guaranteed to cigna, while the CEO is also very committed to bringing more than 200 jobs. and is hoping to hit the 800 goal, but that will require some business growth.

its a better article now, I suggest you guys re-read it from the courant.

would someone like to weigh in on what this does for Hartford? To me, it does very little. Maybe some more money for the arts? Maybe they want to put their name on an event? but what does it do for the tangible location known as Hartford. Nice that cigna will spend 100 mil on site improvements. but isn't that just a big hurrah for bloomfield? and isn't this just more of the same "let's head for the suburbs" mentality? with the 100 mil enhancement to the bloomfield facility, it might be likely that more employees leave downtown and head north-northwest.

[beerbeer]

The important effect is that it teaches Democrats that tax breaks work.

It is important to remember that the company is not getting a check. This is not welfare. A tax break means the company gets to keep more of it's own money. The government will take less away from them.

If Malloy and the Democrats start to understand this concept, the state will will flower with all kinds of companies an jobs.

[The Voice of Reason]

would someone like to weigh in on what this does for Hartford? To me, it does very little. Maybe some more money for the arts? Maybe they want to put their name on an event? but what does it do for the tangible location known as Hartford. Nice that cigna will spend 100 mil on site improvements. but isn't that just a big hurrah for bloomfield? and isn't this just more of the same "let's head for the suburbs" mentality? with the 100 mil enhancement to the bloomfield facility, it might be likely that more employees leave downtown and head north-northwest.

Well, just my opinion, but here goes...

200 jobs.... bleh

400 Jobs Mmmmm

800 Jobs..... Sweet!

the thing is that these 200 jobs, HQ jobs in all likelyhood pay well above the average CT job, the average insurance job, I am guessing the average is close to 100k, so its true, the things that the wealthy like, might get a little boost.

I think that some high end house sales will pick up a little since these people are likely relocating and need homes. this will be all over greater hartford. but the overall affest might be fairly minimal.

oh, the other thing..... the big accounting firms and consultancies that work with cigna will likely add a few FTE in Hartford, and so will a few law firms.

its also 1 more corporate citizen for future Arena luxury suites...

hmm what else.... airport...

there will be a pretty significant increase in travel to the cigna HQ from its divisions all over the country. this would help bradley improve its routes... mainly from any major domestic and international offices.

Their international head office is Belgium, so maybe this can help give is abetter shot at getting that Amsterdam flight going

I doubt traffic would change between philly and Hartford, since the people leaving there are joining Hartford, so they were flying allready.

more flights to DC for lobbying and such

maybe other companys see this and think of doing the same.....

honestly to go on a tangent now......

NU is the most important thing out there right now. when you look at the national energy companies, and such, you can see that the big ones are really becoming major players in their home cities. NU and NStar were made for each other, but the cool thing is that by merging they are now too big to easily be gobbled up by another (although more and more big companies are selling, so who knows)

anyways, the new NU will be one of the larger distributors in the US power business. Other companies of simular size have massive shiny downtown skyscrapers, and are typically catalysts for other development I think because of some weir law or something like how banks have to be charitable. NU is a small producer, but I suspect that will change after the merger as they have better scale. The good new there is that they are not overly burdened with nuclear assets, or durty coal assets like some companies, so they can build a production network as they see fit, whilst making profits on their guaranteed business regulated delivery lines.

the power industry keeps consolidating globally, and these companies are just massive employers, and massive economic engines for their regions.

NU is the 29th largest electric utility by market cap Nstar is 37th

this is in the world

combined they will be 21st. but the fall of in size is massive after the 22nd largest.

By revenues, NU is 32 and Nstar is 44

Combined they will be 23rd largest.

at that size you enter the big leagues, and honestly future acquisitions would be expected. Also you reach the size where expanding internationally is pretty common.

if we can manage to keep to HQ, the true HQ for North east utilities in Hartford it could be extremely good for the city.

I am hoping that NU hops on the first 5 program and i hope that Cigna has shown the way.

Xcel Energy would be virtually the same size as NU. they helped build a new Hockey rink in St Paul Mn

NU would be bigger (in market cap, not revenues) than constellation energy which built this gem in Baltimore http://www.bizjournals.com/baltimore/blog/2011/03/constellation-energy-hiring-for-dozens.html

constelation is being purchased by Exelon, creating a true monster....

anyways, Im just saying as a potential future engine of growth, this utility is in Hartford, and will be one of the big boys and hopefully will continue to acquire competitors becoming even larger. This size brings jobs, and honestly I could care less if our electric costs are a little higher than the next state, the HQ is in hartford, and in 5 years when there are 10 large power companies in America, I would be thrilled to have Hartford be the home of one of them. there is just 1 major utility left in New england, and really its between Hartford and Boston right now.

in 10 years this can be a 30 billion company, the industry is consolidating big time

ok thats my tangent.

[HartfordTycoon]

would someone like to weigh in on what this does for Hartford? To me, it does very little. Maybe some more money for the arts? Maybe they want to put their name on an event? but what does it do for the tangible location known as Hartford. Nice that cigna will spend 100 mil on site improvements. but isn't that just a big hurrah for bloomfield? and isn't this just more of the same "let's head for the suburbs" mentality? with the 100 mil enhancement to the bloomfield facility, it might be likely that more employees leave downtown and head north-northwest.

I am as big a supporter of the city as anyone but I like to think regionally. It's not always a competition bewteen Hartford and Bloomfield. I know plenty of Hartford and Bloomfield residents who work for CIGNA. If a few more can get jobs that is good and if Greater Hartford gets in the news for attracting major corporate HQ's from other states that is also good. There is nothing about this that is bad for the city of Hartford in anyway. Would it be bette for Hartford if they were located Downtown, sure. But is it good for Hartford and the Hartford region that we gain some of our insurance clout back, absolutely. This will have a carryover effect to other companies already in the city regarding how they view the wider metro area and how attractive a region it is to do business in. Greater Hartford has to think regionally to survive. Everything can't be viewed as city vs. suburb.

[HartfordTycoon]

I am hoping that NU hops on the first 5 program and i hope that Cigna has shown the way.

Did you see this quote by Malloy? "There are more in the pipeline, hint, hint," Sounds like a clue to me but maybe I'm looking into it too much.

[The Voice of Reason]

Did you see this quote by Malloy? "There are more in the pipeline, hint, hint," Sounds like a clue to me but maybe I'm looking into it too much.

yes, I saw it, but it could really be anything.

Heck it could be UTC moving 200 jobs, from one plant to another to get some tax money... who knows, and it could be something like a company near the state border doing simular giving jobs to non CT people. but I hope that we get to keep NU

and more so I hope that this plan somehow brings a new company to CT river plaza

the other 2 of the first five can go outside of Hartford

[beerbeer]

No company is getting tax money. They get loans which are paid back and actually make a profit for the state and they get tax breaks.

Here' another way to look at tax breaks. If you have 10 dollars and the government takes eight, does that mean the government lost 2 dollars? Now, you get a break, the government only takes 7 dollars. They are just stealing less of the companies money.

[The Voice of Reason]

No company is getting tax money. They get loans which are paid back and actually make a profit for the state and they get tax breaks.

Here' another way to look at tax breaks. If you have 10 dollars and the government takes eight, does that mean the government lost 2 dollars? Now, you get a break, the government only takes 7 dollars. They are just stealing less of the companies money.

lol

thats an interesting mind you just opened a window into....

anyways, there are tax breaks in this and there are loans, but they are zero interest loans and are forgivable.... there are also out right grants. I think I read that 2 million of this deal was a grant and as much as 30 million is a tax break.

[nor'easter]

I am as big a supporter of the city as anyone but I like to think regionally. It's not always a competition bewteen Hartford and Bloomfield. I know plenty of Hartford and Bloomfield residents who work for CIGNA. If a few more can get jobs that is good and if Greater Hartford gets in the news for attracting major corporate HQ's from other states that is also good. There is nothing about this that is bad for the city of Hartford in anyway. Would it be bette for Hartford if they were located Downtown, sure. But is it good for Hartford and the Hartford region that we gain some of our insurance clout back, absolutely. This will have a carryover effect to other companies already in the city regarding how they view the wider metro area and how attractive a region it is to do business in. Greater Hartford has to think regionally to survive. Everything can't be viewed as city vs. suburb.

Thinking regionally is interesting. but if the only people thinking regionally live in hartford, it doesen't sound promising. From what I have read in the responses here, the benefits are intangibles. Bloomfield will have tangible benefits. Until a tangible benefit comes of this for Hartford, I'm done talkin' about it. I am hopeful there will be one and I will be watching and waiting; as usual. In the mean time, got my HSO subscriptions, my theatreworks subscriptions, and am planning to check out the jazz on monday's this summer. lots going on. my work in hartford is nearly over. i'll miss the park and lunches around town.

[HartfordTycoon]

Good editorial in the Hartford Business Journal. I agree with pretty much everything they say. Definitely can't wait to hear the rest of the first five announcements.

Hartford Business Journal

With the announcement that Cigna is moving its corporate headquarters to Bloomfield under the state’s ‘First Five’ initiative, Gov. Dannel Malloy lit off a rocket sure to catch the attention of the nation’s business community.

Here is an insurance giant that had chosen not to have its headquarters in the ‘insurance capital’ changing course and saying to the world Connecticut is indeed open for business.

[MadVlad]

Why stop at 5?

[beerbeer]

Why stop at 5?

That's my original point. If this works so well, why not establish Connecticut as a low tax state? It's a whole new paradigm for Democrats. Great question, why stop at five?

[HartfordTycoon]

That's my original point. If this works so well, why not establish Connecticut as a low tax state? It's a whole new paradigm for Democrats. Great question, why stop at five?

That question certainly has merit. However would that negate some of the targeted investment in these sorts of deals? I really want to have the conversation so I'm genuinely asking. As a low tax state would that reduce our leverage when we want to influence the behavior of a company by getting them to agree to specific investments in exchange for favorable business terms? It seems to me that it makes some sense to have lower taxes and other benefits for corporations be directly tied to the level of investment that they make into the state.

So, I agree that we should not stop at five but why would we give away the bank for no gauranteed return on investment? If you want lower taxes doesn't it make sense that you have to show that you are comitted to our state? I think it could be very effective just having an environment where corporations know that very favorable terms are there for the taking but they have to make a certain level of comittment. It's kinda like how I think that the federal taxes should be structured in such a way to discourage outsourcing and offshoring of jobs. You have to have some leverage and actually use it.

[The Voice of Reason]

That question certainly has merit. However would that negate some of the targeted investment in these sorts of deals? I really want to have the conversation so I'm genuinely asking. As a low tax state would that reduce our leverage when we want to influence the behavior of a company by getting them to agree to specific investments in exchange for favorable business terms? It seems to me that it makes some sense to have lower taxes and other benefits for corporations be directly tied to the level of investment that they make into the state.

So, I agree that we should not stop at five but why would we give away the bank for no gauranteed return on investment? If you want lower taxes doesn't it make sense that you have to show that you are comitted to our state? I think it could be very effective just having an environment where corporations know that very favorable terms are there for the taking but they have to make a certain level of comittment. It's kinda like how I think that the federal taxes should be structured in such a way to discourage outsourcing and offshoring of jobs. You have to have some leverage and actually use it.

the why stop at 5 answer came from Malloy I think in the Cigna article. He said, sadly CT can not afford to do this more than 5 times a year right now. we are a small state bla bla....

at least thats why I thought I read , I could easily be wrong as my memory is not what it used to be.

but I suppose thats the political answer anyways right??

if we have 5 more good uses of this program, and each brings 100+ million in capital investment, and each brings more than 200 jobs, and each brings a prestigous company etc..... would the state bend the rules and add a sixth this year if another company was asking for inclusion?? Or they could just ask them to wait until Jan 1 when the count resets or whenever the clock resets...

[HartfordTycoon]

the why stop at 5 answer came from Malloy I think in the Cigna article. He said, sadly CT can not afford to do this more than 5 times a year right now. we are a small state bla bla....

at least thats why I thought I read , I could easily be wrong as my memory is not what it used to be.

but I suppose thats the political answer anyways right??

if we have 5 more good uses of this program, and each brings 100+ million in capital investment, and each brings more than 200 jobs, and each brings a prestigous company etc..... would the state bend the rules and add a sixth this year if another company was asking for inclusion?? Or they could just ask them to wait until Jan 1 when the count resets or whenever the clock resets...

I don't remember reading that he said that. I'm pretty sure that he said first five was just the beginning and that he actually hoped it would be the first one hundred or something to that effect.

[MadVlad]

Maybe they've set the threshold low to get their feet wet. We can always hope they expand it next year.