Aetna Purchasing Britain-Based Insurer
HARTFORD, Conn. (AP) _ Aetna Inc. plans to broaden its international reach with the acquisition of InterGlobal, a British company that offers private medical insurance for groups and individuals in the Middle East, Asia, Africa and Europe.
The Hartford, Conn., health insurer did not reveal terms of the deal on Monday. It expects to complete the acquisition in the first half of next year and said it should be neutral to Aetna’s 2014 results.
Aetna covers more than 22 million people as the third-largest health insurer in the United States. It also runs an expatriate business that provides medical, dental and vision coverage, among other forms of insurance to people living overseas.
Chairman and CEO Mark Bertolini said in a statement that the deal helps increase its presence in the international market for individual and small- and mid-sized business customers. He added that the demand for international private medical coverage is being driven by the globalization of companies, the growing population of wealthy individuals in emerging economies and reform pushes by governments around the world to increase health care access.
Last year, the largest U.S. insurer, UnitedHealth Group Inc., also announced international growth plans with its $4.9 billion acquisition of Brazilian health benefits and care provider Amil Participacoes SA. Another competitor, Cigna Corp., also is expanding its international business.
Domestically, Aetna completed a $6.9 billion acquisition of fellow insurer Coventry Health Care in May.
Aetna shares rose 70 cents to $68.47 in morning trading Monday. Its shares have risen more than 46 percent so far this year.
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