Health insurer Aetna Inc (AET.N) on Friday said it would buy smaller rival Humana Inc (HUM.N) for about $37 billion in cash and stock, in the largest ever deal in the insurance industry.
The combination will push Aetna close to Anthem Inc's (ANTM.N) No.2 insurer spot by membership, and would nearly triple Aetna's Medicare Advantage business.
The deal will face antitrust scrutiny but if it goes through it would dwarf the previous largest insurance deal announced just this week, where Swiss property and casualty giant ACE Ltd (ACE.N) announced it was buying Chubb Corp (CB.N) for $28 billion. It would also dwarf Anthem Inc's purchase of WellPoint in 2004 for $16.6 billion.
Analysts have said that M&A activity in the healthcare sector had been waiting for last week's Supreme Court ruling on Obamacare, which upheld key subsidies that underpin the reform and thus gave more certainty to healthcare insurers.
Postema Marketing Group is a full-service Independent Marketing Organization (IMO) dedicated to providing world-class products and services to our clients. We have partnered with some of the strongest names in the insurance industry and proudly serve independent agents from coast to coast.
GET IN TOUCH.
Check us out on Social Media! Remember to Like, Follow, and Connect with us so you never miss out on the Latest Blog Posting's, Webinars, Updates, and Much More!
This site is not for the general public. It is for licensed insurance agents only. No portion of this website, or information contained therein, can be reproduced on other public or private websites without express written consent by Postema Marketing Group, LLC. Failure to comply with this policy will result in legal penalties. The materials contained in this site are for the purpose of providing our agents with a quick guide to products available through Postema Marketing Group. While we make every effort to maintain the accuracy of information provided on this site, Postema Marketing Group, LLC. DOES NOT GUARANTEE the accuracy of information provided on this site and is NOT RESPONSIBLE FOR ERRORS AND OMISSIONS. All information should be verified with Postema Marketing Group by the Agent.