Cigna, Bloomfield, Conn. (NYSE:CI), completed its acquisition of Great American Supplemental Benefits, Austen, Texas, from American Financial Group, Inc. for $305 million in cash, subject to closing adjustments. Great American Supplemental Benefits Group will now do business as Cigna Supplemental Benefits.
Great American, which sells senior markets products, including Medicare supplement, is Cigna’s second acquisition this year in the supplemental health care market. In January, Cigna purchased Nashville, Tenn.-based HealthSpring Inc. for $3.8 billion.
When preparations for the American Financial acquisition started in May, Thomas Richards, president of the individual and family plans business at Cigna, said the transaction would open up opportunities for both Cigna distributors and the independent agents who have been selling Great American supplemental products.
Consumers who are eligible for Medicare will have opportunities to move easily between the Medigap products from Great American and Medicare Advantage plans developed by HealthSpring, according to Richards.