Cigna announced last week that it has entered into an agreement with WellCare Health Plans, Inc. to acquire Sterling Life Insurance Company. The purchase comes as part of Cigna’s commitment to expand its Medicare Supplement product line and market share.
Headquartered in Washington, Sterling serves more than 44,000 Medicare Supplement customers in 39 states, and also offers critical condition and life insurance policies. The company distributes products primarily in a captive agent model, and expects to continue “business as usual” as they begin the transition to join Cigna, however there are a few points for agents to keep in mind:
– CSB appointed agents will not have access to sell Sterling products.
– After the close, Cigna will not allow the replacement of any in-force Sterling Med Supp plan with a plan from any Cigna subsidiary company.
– At close, Cigna will introduce Cigna products to Sterling producers.
– All Sterling policyholders will be maintained without interruption.
– Cigna will integrate Sterling within Cigna’s U.S. Individual segment and currently plan to migrate business processing to our Austin, TX facility, which services their existing Medicare Supplement business.
Neishloss & Fleming, Inc: Cigna to Acquire Sterling Life Insurance Company