Aetna Inc.'s acquisition of Humana Inc. for $37 billion could create a single company with combined retirement assets of about $15.8 billion.
The transaction is expected to close in the second half of 2016 and is subject to customary closing conditions, said a news release from Aetna.
Aetna shareholders would own about 74% of the combined company and Humana shareholders, about 26%.
Information was unavailable on how the companies' retirement programs would be affected.
Hartford, Conn.,-based Aetna had about $6.1 billion in defined benefit assets as of Dec. 31, and $6.5 billion in liabilities for a funded status of about 94%, according to the company's most recent 10-K filing.
As of the same date, the Aetna Pension Plan had an asset allocation of about 41% debt securities, 33% equity securities, and 26% in real estate and other investments.
Additionally, Aetna had $6.5 billion in U.S. defined contribution assets as of Dec. 31, according to its most recent 11-K filing. Voya Retirement Services is the company's DC record keeper. The majority of underlying investment options, including a series of target-date funds, was managed by State Street Global Advisors as of Dec. 31, 2014, the 11-K shows.
Louisville, Ky.,-based Humana had $3.2 billion in its retirement savings plan as of Dec. 31, according to its most recent 11-K filing. Humana does not have a defined benefit plan. As of the Dec. 31, 2013, Schwab Retirement Plan Services was the DC record keeper and target-date fund manager, according to Humana's most recent Form 5550 filing. As of the same date, investment options were managed by Pacific Investment Management Co., Prudential, State Street Global Advisors, Delaware Investments and Artisan Partners Asest Management, among others were offered.
Humana also had $37.5 million in assets in its Puerto Rico retirement savings plan as of Dec. 31, according to a separate 11-K filing.
“At this point, it would be premature to speculate on potential changes to the companies' retirement programs,” an Aetna spokeswoman said in an e-mail. “The transaction is expected to close in the second half of 2016. Over the next year, both companies will be working on integration plans, and there are many details to be worked out.”
A Humana spokesman could not immediately be reached for comment.