Insurer Aetna unloads group life, disability for $1.45B

Friday, October 20, 2017, Vol. 41, No. 42
The Associated Press

Aetna, the nation's third-largest health insurer, is selling its domestic group life and disability businesses for $1.45 billion to Hartford Life and Accident Insurance Co.

Aetna says the cash deal also includes its absence management business and should close next month.

Health insurance is Hartford, Connecticut-based Aetna's main business. The insurer covers more than 22 million people, and its health care segment brought in $1.8 billion in pretax adjusted earnings in the second quarter.

In contrast, the insurer's group insurance business, which includes life and disability coverage, reported pretax, adjusted earnings of $42 million.

Aetna Inc. will report third-quarter results on Oct. 31. It said this deal will be immaterial to 2017 earnings per share due to the timing but will be slightly dilutive for next year.