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WellPoint, Hancock in talks
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October 3, 1996: 7:57 a.m. ET
WellPoint Health said near deal to buy John Hancock's health-insurance unit
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NEW YORK (CNNfn) -- John Hancock Mutual Life Insurance Co. is reportedly close to a final agreement to sell its health-insurance operations to WellPoint Health Networks Inc.
According to the Wall Street Journal, the two sides are in the final stages of negotiations that began several months ago. A price for the deal could not be determined, the newspaper said.
California-based WellPoint is in the midst of an aggressive campaign to transform itself into a national player on the healthcare front. Earlier this year, the company staged its first major acquisition outside its home state, agreeing to buy the group-health unit of Massachusetts Mutual Life Insurance Co. for $380 million.
The health-care industry is undergoing extensive consolidation as companies seek new ways to save money and strengthen their positions. Foundation Health Corp. and Health Systems International Inc. recently sealed a merger marking just the latest in a series of major shifts in the industry.
The newspaper said that by acquiring Hancock's health-insurance operations WellPoint's management believes it will improve its position with large employers that buy a variety of health-care products and services.
The operations Hancock is selling include several managed-health plans and administrative services for large corporate customers, the newspaper said. Premiums at the health-insurance unit totaled $870 million last year.
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