Prudential buys Cigna's retirement service

NEWARK, N.J., Nov. 18 (UPI) -- Prudential Financial of Newark, N.J., has bought Cigna's retirement and investment-products division for $2.1 billion.

The deal combines Prudential's retirement unit of about $67 billion in assets with the Cigna unit valued at about $50 billion in assets, making it one of the leading players in the field of retirement services with defined-contribution assets of $56 billion and a participant base of 2 million people, the Wall Street Journal reported.

The agreement allows Cigna, one of the country's largest health insurers, to focus on revitalizing its health-care business -- a profitable division facing declining profits, rising medical costs and a declining membership.

Last July, the Philadelphia-based health insurer's chairman and chief executive, H. Edward Hanway, took direct control of the division to bring costs under control and address customer service problems.

Prudential said John Y. Kim, the head of Cigna's retirement and investment-services division, will head the combined business.