A large managed care company is scooping up a company that sells employee-paid insurance products through the worksite.
Humana Inc., Louisville, Ky., has agreed to pay about $188 million in cash for KMG America Corp., Minnetonka, Minn., the parent of Kanawha Insurance Company.
The price includes the assumption of about $50 million in debt, Humana says.
KMG generates about $181 million in annual revenue by selling group and voluntary insurance benefits, and by administering benefit plans for employers.
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KMG runs stand-alone stop-loss insurance plans for employer plans with a total of about 473,000 members, and it administers claims and provides medical management services for self-insured plans with about 131,000 members, Humana says.