Humana buys administrator
NEWS IN BRIEF — Posted Sept. 24, 2007
Louisville, Ky.-based Humana said it is paying $187.7 million -- including the assumption of $50 million in debt -- to acquire Minnetonka, Minn.-based insurance administrator KMG America.
KMG was formed in 2004 to buy a Southeastern regional insurer, Kanawha Insurance Co., and expand the business in third-party administrator and other products.
The company had hired an advisor to determine its options after insurer rater A.M. Best in March revised the company's outlook down from stable to negative, citing the company's financial losses.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2007/09/24/bibf0924.htm.