In sync with its long term strategic goal of expanding its
international business, U.S. health insurer
) yesterday announced to acquire U.K. based InterGlobal Group.
Aetna has specifically picked up expatriate insurance specialist
InterGlobal, since it has a well-established presence in Africa,
Asia Pacific, Europe and the Middle East. The buyout will enable
Aetna to instantly expand its global base by 65000 members.
Though the cost of the deal has been kept under wraps, it has
been revealed that the transaction will be funded internally and
that the buyout will see light by the first quarter of 2014.
However, the acquisition will not be accretive to Aetna's 2014
Aetna has the second highest exposure in the international market
among health insurers, a market which is expected to grow faster
and at higher margins.
Earlier in May 2013, Aetna expanded its presence in the Saudi
Arabian market by forming an alliance with Tawuniya for health
care benefits and services to residents.
Along with penetrating new geographies Aetna has also appointed a
new head to steer well its international division. In Jun 2013,
the company appointed Richard di Benedetto, with in-depth
experience in the health care industry, to head the division.
Aetna currently has insurance licenses in several countries and
does business in over thirty countries.
Given significant regulatory pressures back at home due to the
Affordable Care Act, U.S. health insurers are flocking to
overseas markets which offers attractive margins. This strategy
is also being adopted by players like
UnitedHealth Group Inc.
) among others.
Aetna carries a Zacks Rank # 3 (Hold). Better ranked stock,
Assurant Inc. (
with Zacks Rank #2 (Buy), among others, is worth considering.
AETNA INC-NEW (AET): Free Stock Analysis
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