News Details

( 07 Nov 2017)
Humana to sell stocks of KMG to CGIC

Humana Inc. has said that it has reached a definitive agreement to sell the stock of its wholly-owned subsidiary, KMG America Corporation (KMG), to Continental General Insurance Company (CGIC), a Texas-based insurance company.

“Sale of the stock of KMG America Corporation will also include a capital contribution of approximately USD 203 million of Humana parent company capital, subject to customary adjustments, in addition to the transfer of approximately USD 150 million of statutory capital,” Humana Inc. said in a press release.

The company said that further upon consummation, Humana will have no remaining exposure to the commercial long-term care insurance business

Estimated GAAP loss per diluted common share of USD 2.75 will be excluded from Adjusted earnings per share when recognized, it said. Excluding the loss on sale, the company does not anticipate a material impact to earnings in 2017 or 2018 from the sale of the business.