BLOOMFIELD, Conn., June 21, 2006 /PRNewswire-FirstCall/ -- CIGNA (NYSE: CI) announced today it has reached an agreement to acquire Star HRG, an operating division of HealthMarkets, Inc., and a leading provider of voluntary, limited benefit, low-cost health plans and other employee benefits coverage for hourly and part-time workers and their families.
Through the acquisition, CIGNA HealthCare will gain a significant presence, turnkey expertise, and immediate market-leading capabilities in the voluntary group health marketplace. In addition to hiring the executive team and employees associated with Star HRG, the acquisition includes: the entire Star HRG product suite and brand names, such as the Starbridge family of products; administrative, distribution and service capabilities; and membership. The product portfolio includes medical and pharmacy coverage, employee assistance programs, and additional supplemental products such as dental and vision care.
"This transaction will immediately enable CIGNA HealthCare to better serve the working uninsured by offering an industry-leading benefits suite of affordable, voluntary health insurance products and services for part-time and hourly workers," said David Cordani, president of CIGNA HealthCare. "Many of our national and middle-market accounts have expressed the desire to make simple and affordable health benefits coverage available to their employees who otherwise may not be eligible for benefits. With the addition of the Star HRG products to CIGNA HealthCare's portfolio and nationwide distribution capabilities, we will improve access to products that address an important need and be well-positioned for incremental growth opportunities in this expanding market segment."
To ensure continuity of service to existing customers, a dedicated business line within CIGNA HealthCare will support Star HRG products. Star HRG products are currently used by more than 1,000 corporate clients and approximately 200,000 members. These customers range in size from those employing 100 eligible workers to Fortune 500 businesses. The 320 employees associated with Star HRG operate from its Phoenix, AZ headquarters, and provide service to members nationwide.
"We are delighted to join one of America's largest providers of employee health and wellness benefits, and to become an integral part of a truly comprehensive one-stop employee benefits solution for national and regional employers and producers," said Star HRG President, Timothy Cook.
The Star HRG voluntary and limited benefit plans are designed to offer simple and affordable coverage to the 38 million people who represent the working uninsured and their families - a good portion of whom are hourly and part-time workers. Web site: http://www.starhrg.com/.
About CIGNA HealthCare
CIGNA HealthCare, headquartered in Bloomfield, CT, provides medical benefits plans, dental coverage, behavioral health coverage, pharmacy benefits and products and services that integrate and analyze information to support consumerism and health advocacy. "CIGNA HealthCare" refers to various operating subsidiaries of CIGNA Corporation (NYSE: CI). Products and services are provided by these operating subsidiaries and not by CIGNA Corporation.
About CIGNA
CIGNA Corporation and its subsidiaries constitute one of the largest investor owned health and related benefits organizations in the United States. As of March 31, 2006, CIGNA Corporation and its subsidiaries had shareholders' equity of $5.4 billion. Full-year 2005 revenues totaled $16.7 billion. Web site: http://www.cigna.com/.
About HealthMarkets
HealthMarkets, Inc., headquartered in North Richland Hills, Texas, is a provider of health and life insurance products to individuals, families, students, the self-employed and small businesses. HealthMarkets offers products and services through its subsidiaries: The MEGA Life and Health Insurance Company, Mid-West National Life Insurance Company of Tennessee and The Chesapeake Life Insurance Company.
HealthMarkets is owned by of a group of private equity investors, including The Blackstone Group, Goldman Sachs Capital Partners and DLJ Merchant Banking Partners, members of management and the company's dedicated, licensed agents through the company's agent stock accumulation plans. For more information, visit http://www.healthmarkets.com/.
SOURCE: CIGNA HealthCare
Contact: Joseph Mondy, CIGNA, +1-860-226-5499, joseph.mondy@cigna.com
Web site: http://www.cigna.com/
http://www.starhrg.com/
http://www.healthmarkets.com/
Company News On-Call: http://www.prnewswire.com/comp/165050.html
