Insurer Aetna unloads group life, disability for $1.45B

FILE - In this Tuesday, Aug. 19, 2014, file photo, a sign for Aetna Inc., sits atop a building at the company headquarters in in Hartford, Conn. Health insurer Aetna Inc. has made a deal to buy competitor Humana Inc. in a $37 billion deal the companies say would create the second-largest managed care company, it was announced Friday, July 3, 2014. (AP Photo/Jessica Hill, File)

(AP)  – Aetna, the nation’s third-largest health insurer, is selling its domestic group life and disability businesses for $1.45 billion to Hartford Life and Accident Insurance Co.

Aetna says the cash deal also includes its absence management business and should close next month.

Health insurance is Hartford, Connecticut-based Aetna’s main business. The insurer covers more than 22 million people, and its health care segment brought in $1.8 billion in pretax adjusted earnings in the second quarter.

In contrast, the insurer’s group insurance business, which includes life and disability coverage, reported pretax, adjusted earnings of $42 million.

Aetna Inc. will report third-quarter results on Oct. 31. It said this deal will be immaterial to 2017 earnings per share due to the timing but will be slightly dilutive for next year.