Fitch Says UnitedHealth Plans To Acquire Golden Rule
UnitedHealth Group, Minneapolis, plans to acquire Golden Rule Financial Corp., Indianapolis, a report by Fitch Rating Service, Chicago, says.
A spokeswoman for UnitedHealth declined to comment on the acquisition, first reported in The Indianapolis Star, and terms of the acquisition were not disclosed.
Fitch says UnitedHealth confirmed the transaction Sept. 19.
Fitch expects Golden Rules total 2003 revenue to be less than 4% of UnitedHealths total revenue for the year. Another rating service, Standard and Poors, New York, estimates Golden Rules total 2003 revenues and earnings would be 3% of UnitedHealths.
“Fitch does not expect UnitedHealths risk profile, liquidity position or financial leverage to be significantly affected by the transaction,” the rating service says.
Golden Rules position in the individual health insurance market is probably a big attraction for UnitedHealth, according to Fitch.
“Golden Rules solid position in medical savings accounts is also likely of significant interest to UnitedHealth,” says Fitch.