Humana, which is based in Kentucky, has announced the completed sale of its insurance entity. The insurance arm of Humana, which was a subsidiary completely owned by the company, was known as KMG America Corporation. The sale of the commercial insurance entity was completed with Texas-based Continental General Insurance Company (CGIC).
The sale was first announced in November 2017 and Humana has owned the insurance arm of its business since 2007. The shares of the insurance arm of the business were sold by Humana for a reported $2.4 billion. CGIC is a fully-owned subsidiary of HC2 Holdings.
Humana actually reported a loss of $790 million on the sale of KMG when the earnings statement for the second quarter was submitted. The sale is expected to come to a close in the third quarter. With the sale, Humana made it known publicly that it has no further plans to operate in the commercial long-term care insurance space.
The same report from the second quarter shows that Humana is working to acquire two companies that provide in-home care. Those companies are Curo Health Services and Kindred at Home. Both of these companies have specializations in hospice care for their clients.
The purchase of Curo Health Services was completed by Humana in April 2018, and Humana will have a 40 percent interest in the company. Curo offers hospice care services in 22 states.
Humana also reported that its revenue dropped to $684 million so far in 2018 compared to $1.8 billion in 2017.
Commercial transactions are detailed and take a lot of time to complete. Make sure you know what it is you want when acquiring a company, so the process can be handled accordingly.