Cigna said late last week it paid $305 million to purchase American Financial Group's supplemental insurance business, making the health care giant one of the biggest supplemental health insurance companies.
Austin, Texas-based Great American Supplemental Benefits Group—with 2011 premiums of $300 million and more than 200,000 current customer relationships—will now do business as Cigna Supplemental Benefits. The sale was announced in May.
This acquisition grows Cigna's reach in both the individual and Medicare Supplement markets, both which position the company well for thriving in a post-PPACA world. The deal also enhances Cigna's distribution network of agents and brokers and extends global direct-to-consumer retail channel, Cigna says.
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"The Great American Supplemental Benefits team's passion for helping customers, effective distribution relationships and approach to business is aligned with Cigna's values and business strategy," Cigna President Tom Richards said in a news release.
This is Cigna's second transaction in the supplemental health care market. In January, Cigna purchased Nashville, Tenn.-based HealthSpring Inc. for $3.8 billion.
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