Cigna has completed the acquisition of Great American Supplemental Benefits from American Financial in a $305m cash transaction, in a bid to enhance its distribution network of agents and brokers and extend global direct-to-consumer retail channel.
The acquisition, which is subject to closing adjustments, will also enable Cigna to expand its reach in the US Individual and seniors segments with a spectrum of supplemental health offers.
According to the insurer, Great American Supplemental Benefits Group, with premiums of $300m and more than 200,000 current customer relationships in 2011, will now trade as Cigna Supplemental Benefits.
Cigna US individual president Tom Richards said, "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."
The firm operates subsidiaries including Connecticut General Life Insurance, Cigna Health and Life Insurance, Life Insurance of North America and Cigna Life Insurance of New York.