Cigna acquiring Great American Supplemental Benefits

Great American Supplemental Benefits Group, one of the largest manufacturers, distributors, and marketers of supplemental health insurance products in the United States, is being acquired by Cigna Corporation for around $295 million in cash.

In a press statement, Cigna cited the ability to expand its U.S. presence in individual and Medicare segments as a primary reason for the acquisition. It will also allow the company to extend its direct-to-consumer retail channel and distribution network.

Reuters reports that the group’s current owner, American Financial, expects an after-tax gain of $95 million to $105 million from the sale.

The transaction is expected to close during the second half of 2012.

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