<<Aetna looking to sell Life biz for 1.2 - 1.3 Billion......
Looks like a good fit for Conseco>>
Does look like a good fit. Unlike Pioneer, American Travelers etc, this looks like it will be very competitively bid and price could go high. Also, CNC would have to issue more debt or sell some of their repurchased stock to finance the purchase price. CNC will be bumping up against their 35% debt to capital limit.
My guess is that the bidding and deal will be announced shortly, as opposed to the process just beginning. CNC passed on the Cigna deal as too expensive, but LNC paid high price for Cigna's agents who are the tops in the industry (on a revenue per agent basis). I wonder if Aetna has much of a distribution network or if its more just buying a book of business. If there's a distribution network (a bunch of agents) it may go for a higher price, but I know in my law practice, you never come across Aetna agents, but I come across Cigna, New England, Met, Lincoln National all the time. I don't think much of Aetna's distribution network if there is one. It does make me think that Aetna did buy a financial network not too long ago (like a big insurance brokerage house or franchise).
We'll see. I think CNC should pursue Torchmark after they spin off Waddel and Reed brokerage. That looks like a very nice fit, and could be a stock deal. |
