Aetna buys NYL Health Care

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)