Earlier this week, Aetna announced a deal to acquire the Medicare supplement insurance business and related business units from Genworth Financial for $290 million.
Pending approval from federal and state regulators, the deal should close in the fourth quarter of this year, Aetna representatives said in a press release issued from their Hartford, CT headquarters.
As part of the transaction, Aetna will acquire the Continental Life Insurance Co., and will also reinsure other insurance businesses. The Medical supplemental business being acquired from Genworth Financial includes roughly 145,000 members and operations that brought in approximately $317 million of net earned premiums last year.
This acquisition isn’t Aetna’s first foray into Medicare supplement insurance, but it will expand the company’s operations significantly.
Medicare supplement insurance is an important product for seniors who face gaps between what Medicare will cover, and their total health care needs. It often provides coverage for regular office visits and health-maintenance regimens which aren’t in the scope of regular Medicare plans.