On June 13, 2011 Aetna announced they were acquiring Genworth Financial's Medicare Supplement business and all other related blocks of business. With more than 145,000 Medicare Supplement policyholders, Genworth was a leading provider of Medigap policies through Continental Life Insurance Company of Brentwood, Tennessee. For the block of business, Aetna paid $290 million.
Aetna’s chairman, CEO and president Mark T. Bertolini noted, "By acquiring this business, Aetna will significantly expand its footprint in the Medicare Supplement business." He also went on to explain that this growth comes at an important time, when the Medicare population is set to increase significantly with the Baby Boomer generation turning 65.
The acquisition is part of Aetna's plan to "broaden its product portfolio, add new revenue streams, and address the increasing needs of the senior population", adds Joseph M. Zubretsky. With this new block, they plan to grow their capabilities of Medicare Supplement business including "access to commercial retirees and Medicare Prescription Drug Plan members, multi-channel distribution, and other Aetna product offerings", says Zubretsky.
Aetna currently serves approximately 33.8 million people and provides resources necessary for consumers to make informed decisions on their health care. Offering a variety of insurance plans, they cover a variety of individuals from all walks of life - from employer groups to college students. They plan to remain under the same business' current management, staff, and operations based in Brentwood, TN.
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How do you feel about Aetna’s acquisition of Genworth Financial's Medicare Supplement business? Do you currently sell Aetna to your Medicare Supplement clients? What is the reception to their product?