When Connecticut General and INA merged to become CIGNA Corp. in 1982, many former CG workers were not happy that the corporate headquarters would be in Philadelphia.
They get a belated do-over.
Gov. Dannel Malloy announced Tuesday that CIGNA will move its headquarters from Philadelphia to Bloomfield and add at least 200 jobs here, in return for $47 million in economic benefits — a partially forgivable loan, tax credits and job-training grants — from the state. The company could get a maximum of $71 million in aid over the next 10 years if it adds 800 jobs. The company said it will invest $100 million in infrastructure and technology in its Bloomfield campus.
The addition of 200 insurance jobs in this economy is not small potatoes. Hopefully the company will hire some of the un- or underemployed insurance workers in Greater Hartford who've fallen victim to the recession.
Also, the presence of the corporate headquarters has a value that should not be discounted. The headquarters is the epicenter of corporate activity, and often where a company's philanthropy and other community involvement is focused.
For all that, however, $47 million is a lot of money for 200 jobs. That's $235,000 per job added, if the initiative generates no other economic activity. Mr. Malloy reasonably believes that it will.
The aid package comes from Mr. Malloy's "First Five" incentive, in which the state will give "substantial financial assistance" to the first five companies that add 200 jobs over the next two years or any company that invests $25 million and creates 200 jobs within five years.
Mr. Malloy is taking a risk, but several factors argue in his favor. The state's ability to create jobs in recent years has been abysmal; here was a chance to begin to turn that record around. Health care is one of the few growth areas in the state, and Greater Hartford has the support — accountants, lawyers and health care professionals, as well as the insurance workers — to help CIGNA grow.
Mr. Malloy's fervent hope is that such a move by a major corporation will build momentum for the creation of many more jobs, which will return the state's investment and then some. With layoff notices going out to state employees this week, nothing is more important.
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