A large health insurer is expanding its disability services operations.
Aetna Inc., Hartford, says it is acquiring a large disability services business from Broadspire, Plantation, Fla., a unit of Platinum Equity L.L.C., Beverly Hills, Calif., for about $160 million in cash.
Aetna now has about 2.6 million long-term disability and short-term disability insureds.
The Broadspire disability services program has about 85 large customers. Those customers’ disability plans have 1.3 million short-term disability members, 1 million long-term disability members and 700,000 members in total absence management programs, Aetna says.
The Broadspire disability business has 600 employees in Florida and more than 200 employees in offices in Maine and Massachusetts.
Aetna hopes to complete the deal by June 30.
Aetna President Ronald Williams says Aetna is making the deal to build its integrated health and disability operation.
Broadspire, which is keeping its workers’ compensation and casualty administration business, says it is making the deal to increase investment in its casualty business.
Platinum Equity acquired Broadspire in July 2003 from Kemper Insurance Companies, Long Grove, Ill.