Property and casualty insurance firm The Hartford has agreed to acquire the US group life and disability business from Aetna for $1.45bn.
The acquisition will allow Hartford to expand its group benefits distribution capabilities.
The company also expects to gain digital assets and an integrated absence management platform which can improve the experience of the company in catering to its customers.
In addition, the deal will help Hartford in advancing its distribution footprint, with an exclusive multi-year collaboration, where Aetna will offer Hartford’s group life and disability products through its medical sales team.
The Hartford chairman and CEO Christopher Swift said: “The transaction provides a unique and accretive opportunity for The Hartford to become the second largest group life and disability insurer, an important business for The Hartford with a stable risk profile, attractive returns and strong long-term growth prospects.
“The combination of these two businesses strengthens our position as a leader in the large employer market and increases our presence among midsize employer clients. It also creates new opportunities to distribute additional products to a customer base of more than 20 million people who will be insured by the combined business.”
The two companies claims that they will work together to support their mutual customers. Majority of Aetna Group Insurance employees working for the group life and disability business will be transferred to the Hartford.
The Hartford president Doug Elliot said: “The transaction combines two franchises that are both committed to high-quality products, best-in-class customer and claims service, and strong distribution partnerships. We also welcome approximately 1,800 Aetna Group Insurance employees nationwide and place great value on the talent they will bring to our company.”
Image: The Hartford’s CEO Christopher Swift. Photo: Courtesy of The Hartford Financial Services Group, Inc.