Humana to sell long-term care insurance arm

Humana will sell its long-term care insurance business to an HC2 Holdings subsidiary.

HC2 Holdings' Continental General Insurance Company will purchase Humana's KMG America Corp. stock. KMG includes Kanawha Insurance Company, which covers roughly 30,100 members. For its part, CGIC covers 93,000 members through long-term care, life and annuity plans.

Humana will see a $400 million net loss associated with the sale. The insurer plans to fund the deal with $203 million in cash, as well as the transfer of $150 million in capital with the sale.

The transaction is slated to close by the third quarter of 2018.  

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