Member access

4-Traders Homepage  >  Shares  >  Nyse  >  CIGNA Corporation    CI   US1255091092

SummaryQuotesChart AnalysisNewsCalendarCompanyFinancialsConsensusRevisions 

Cigna To Buy Great American Supplemental Benefits For $295 Million

05/10/2012 | 06:28pm US/Eastern
Recommend:
0

Cigna Corp. (>> CIGNA Corporation) has agreed to acquire American Financial Group Inc.'s (AFG) Medicare supplement and critical-illness businesses for approximately $295 million in cash, as the managed-care company looks to expand its presence in the individual and seniors markets.

Cigna said its acquisition of Great American Supplemental Benefits Group, one of the largest manufacturers of supplemental health insurance products in the U.S., is expected to close in the second half of 2012.

Great American generated approximately $325 million of revenue last year.

Cigna said the acquisition will expand its individual supplemental offerings to customers in the U.S., bring scaled offerings to the seniors market and extend its direct-to-consumer retail channel.

The deal comes after Cigna bought Medicare carrier HealthSpring Inc. in January for $3.8 billion. The HealthSpring acquisition represented a change in the balance of Cigna, which had primarily focused on employers but will now also be a major source of both Medicare prescription-drug plans and Medicare Advantage coverage, the private insurers' version of the government program.

Cigna has seen its revenue grow in recent quarters, helped by growing membership and a continuing trend of patients using fewer health-care services amid a shaky economy. Last week, the company reported its first-quarter earnings fell 10%, due in part to acquisition costs, though membership growth contributed to better-than-expected revenue.

Meanwhile, American Financial said the deal is expected to be slightly dilutive to its earnings in the short term but will help the company focus on its core businesses.

Cigna shares were up by 11 cents to $45.02 after hours. The stock is up 6.9% so far this year.

-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com

Stocks mentioned in the article : CIGNA Corporation
Recommend :
0
React to this article
Latest news on CIGNA CORPORATION
2d ago CIGNA : Pre-existing condition bans - Are they really gone?
6d ago CIGNA : Regulation FD Disclosure (form 8-K)
6d ago CIGNA : New Century Health and Cigna HealthCare of Arizona announced an alliance..
6d ago CIGNA : Foundation Awards Grant to Improve Health of Hartford Neighborhood
6d ago CIGNA : Selects Chekesha Kidd as VP of Voluntary Benefits Organization
08/20 CIGNA : Chekesha Kidd Joins Cigna as Head of Voluntary Benefits Organization
08/20 XEROX : Employers step up workers' wellness investment
08/20 CIGNA : Proprietary Retail Exchange Launches Nationally
08/20 CIGNA : Introduces Proprietary Retail Exchange
08/19 CIGNA : Taps Chekesha Kidd as VP of Voluntary Benefits Organization
Advertisement
Chart
Duration : Period :
CIGNA Corporation Technical Analysis Chart | CI | US1255091092 | 4-Traders
Income Statement Evolution
CIGNA Corporation : Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF