American Financial Group Inc. says it will be keeping the part of the Great American Supplemental Benefits business that sells long-term care insurance (LTCI).
Cigna Corp., Bloomfield, Conn. (NYSE:CI), announced earlier this month that it plans to acquire most of the Austin, Texas-based supplemental benefits business from American Financial, Cincinnati (NYSE:AFG), for about $295 million in cash.
Cigna and American Financial hope to get the approvals they need to close on the deal by the end of the year.
Cigna said it will be getting a substantial Medicare supplement insurance business and a business that sells products such as critical illness insurance.
The companies’ decision to leave the LTCI business with American Financial attracted less attention.
American Financial says in documents filed with the U.S. Securities and Exchange Commission (SEC) that it stopped selling LTCI in January 2010.