Cigna has reached an agreement to acquire the supplemental health insurance unit of American Financial Group for $295 million.
By acquiring Great American Supplemental Benefits Group, one of the largest manufacturers, distributors and marketers of supplemental health insurance products in the country, Cigna can significantly expand the Medicare and individual supplemental offerings it provides members, Reuters reported.
The deal also will extend Cigna's direct-to-consumer retail channel, a direction in which the company already has dedicated $25 million, and provide it with a wider distribution network of agents and brokers.
"Great American Supplemental Benefits is an ideal strategic fit with Cigna's growth plans to expand our presence in the U.S. individual and seniors segments through a broad range of supplemental health solutions," Thomas Richards, president of Cigna's individual and family plans, said.
Last year, Great American reported $400 million in assets, $325 million in revenues and $34 million in pre-tax operating, according to the Hartford Courant. The sale is expected to close later this year.
Cigna spokeswoman Diana Sousa said that although Great American is based in Texas and employs about 300 people, Cigna doesn't plan to move those workers, reported the Hartford Business Journal.