Company officials said Monday they are not pursuing a merger with rival Humana, causing Cigna's stock to rise in the markets.

Last December, the two companies failed to agree on a price as Cigna pursued the purchase of the Louisville-based company. The merger would have created a $140 billion giant in the health insurance industry. The Wall Street Journal previously reported Cigna will instead focus on a smaller acquisition.

Despite reports that merger talks were back on, Cigna officially squashed rumors that it was looking to acquire Humana in a statement on Monday. | Despite reports that merger talks were back on, Cigna officially squashed rumors that it was looking to acquire Humana in a statement on Monday.