True to projections, Cigna Corp. made it official this week that it will sell its pension and 401(k) business to Prudential Financial for $2.1 billion in cash, making Prudential one of the country's leading retirement services and products providers.
The transaction, expected to close early next year, will plump Prudential Retirement's assets to nearly $120 billion and expand its participant base to two million. More important than building assets, however, "this transaction builds on our presence in the retirement market by adding significant scale and capabilities," says Prudential Financial Chairman and CEO Arthur Ryan. "This is an excellent fit that will strengthen a business we want to grow."
As for Cigna, chairman and CEO Ed Hanway says his company now will focus on its health, disability, life and accident insurance programs.

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