Health insurer Aetna will buy the Medicare supplement business of Genworth Financial for about $290 million.
The Hartford, Conn., company says the deal for Continental Life Insurance Co. of Brentwood, Tenn., includes some accident and health insurance business like cancer coverage. It also includes coverage for funeral services and other final expenses. Aetna expects to close the deal in the fourth quarter.
Medicare supplement insurance covers deductibles, co-payments and other expenses not covered by Medicare, the federal health insurance program for the elderly and disabled. Aetna has about 10,000 Medicare supplement customers and will add Continental Life's roughly 145,000 members.
Genworth says it will record a gain of about $35 million tied to the sale.
Aetna is the third-largest health insurer based on enrollment, trailing WellPoint and UnitedHealth Group.