The Hartford Purchases Aetna’s Life And Disability Insurance Business for $1.45 Billion
Aetna has arranged to sell its group life and disability benefits to The Hartford for $1.45 billion dollars in cash. While group life and disability insurance were a small portion of Aetna’s business (about $2 million in premiums for 2016, compared to The Hartford’s $8.3 million in premiums at the end of the third quarter), this transaction will allow The Hartford the become second largest group life and disability insurer, behind MetLife. The Hartford will also obtain digital assets from Aetna, including absence, claims management, and data analytics systems, as well as a customer portal. And, following the sale, Aetna will offer The Hartford’s group life and disability products through Aetna’s sales force. The Hartford has also agreed to reinsure Aetna’s book of group life and disability insurance, on an indemnity basis.
While an Aetna press release states the two companies will work together to support their mutual customers, and the majority of Aetna’s 1,800 employees who support the acquired business will transfer to The Hartford, there are no details yet on how Aetna’s plans will be administered going forward, including for those already on claim.
The acquisition is expected to close in November 2017.
Sources:
Aetna, The Hartford Signs Agreement to Acquire Aetna’s U.S. Group Life and Disability Business, Oct. 23, 2017
The Hartford, The Hartford to Acquire Aetna’s U.S. Group Life and Disability Business, Special Presentation Webcast, Oct. 23, 2017
Japsen, Bruce, Aetna To Sell Group Life Business To Hartford for $1.4B, Oct. 23, 2017, 9:04 a.m.
Livingston, Shelby, Aetna to shed its life and disability insurance businesses for $1.5 billion, Modern Healthcare, Oct. 23, 2017
Otto, Nick, The Hartford to acquire Aetna’s life, disability business, Oct. 23, 2017, 2:39 p.m.,
Reuters, Hartford to buy Aetna US life and disability unit for $1.45 billion, CNBC, Oct. 23, 2017, 9:16 a.m.
Reuters, The Hartford to Buy Aetna Group Life, Disability Benefits Business for $1.45 Billion, Insurance Journal, Oct. 23, 2017
