Aetna buys NYL Health Care

JAKARTA (JP): United States-based insurance company Aetna has bought the NYL Care Health Plans business, a subsidiary of the New York Life Insurance Company, for US$1.05 billion.

Aetna said yesterday the transaction was expected to be completed in the third quarter of this year and would be financed with fixed-income securities.

The company might also pay about $300 million in addition to the purchase price beginning 2000 if "predetermined earnings and membership objectives are achieved", it said.

The acquisition would add about 2.2 million health members to Aetna's health care membership base, it said. The company now provides health and financial services and information to almost 30 million people worldwide. (das)