American Financial Group Announces the Completion of its Sale of Medicare; Sees Gain on Sale $120M-130M
American Financial Group, (NYSE: AFG) (NASDAQ: AFG) announced today the completion of the sale of its Medicare Supplement and Critical Illness businesses (headquartered in Austin, Texas and doing business as Great American Supplemental Benefits Group) to Cigna Corporation (NYSE: CI) for approximately $305 million in cash. AFG will realize an after-tax gain of approximately $120 - $130 million on the sale, subject to post-closing adjustments. AFG's remaining supplemental insurance operations consist solely of its run-off long-term care business, which has a book value of approximately $170 million, and which will continue to be based in Austin, Texas. AFG's Austin-based life and annuity operations will transition to its home office in Cincinnati, Ohio before the end of the year.
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