Bloomfield health insurer Cigna Corp. said Thursday that it will spend $295 million to buy a Texas supplemental health insurance company.
Cigna has signed a definitive agreement to acquire Great American Supplemental Benefits Group, one of the largest manufacturers, distributors, and marketers of supplemental health insurance products in the United States.
Great American Supplemental Benefits Group is a subsidiary company of American Financial Group, an Ohio-based insurance holding company.
Cigna spokeswoman Diana Sousa said Great American employs about 300 people in Texas, and there are no plans to move those workers at this time. The all cash deal is expected to close by September, pending regulatory approval, Sousa said.
The acquisition will allow Cigna to expand its presence in the individual supplemental benefits space and extend the company's global direct-to-consumer retail channel.
It will also give Cigna a wider distribution network of agents and brokers.