Webster to acquire health accounts from JPMorgan

Webster Bank parent Webster Financial Corp. said it has signed an agreement to acquire JPMorgan Chase’s health savings account business.

Webster said its HSA Bank division based in Wisconsin, would acquire approximately 700,000 accounts with approximately $1.3 billion in deposits and $175 million in investments, if the deal receives regulatory approval.

Terms of the deal were not disclosed, but Webster said it would approximately double the number of accounts HSA Bank administers, growing its assets under management from nearly $2.4 billion to nearly $4 billion.

CEO and Chairman James C. Smith said in a statement that the deal would increase Webster’s position among carriers and large employers.

"HSAs are growing rapidly and transforming the way consumers use and pay for health care,” Smith said. “HSAs attract long-duration transaction deposits which provide a stable source of funding for Webster's loan growth."

Webster said it would use approximately 60 percent of the deposits to pay down short-term borrowings. It would invest the rest in securities.

Bloomfield health insurer Cigna, whose HSA accounts had been administered by JP Morgan, said several hours after the announcement Tuesday that it would

Bloomfield health insurer Cigna said its HSA offerings are a part of the portfolio, and will now be administered by HSA Bank.