Catalyst Health Solutions Inc., Rockville, Md. (NASDAQ: CHSI), reported revenue increased $333 million or 29.7% to $1.45 billion. Gross profit for the first quarter increased $33.7 million, or 54.8%, to $95.3 million from $61.6 million for the first quarter last year.
The company attributes the increase in revenue to additional prescription volume from Catalyst Rx Health Initiatives Inc., formerly Walgreens Health Initiatives, initiation of services with new PBM clients and price inflation on brand drugs, offset by client attrition, higher generic utilization and the impact of higher member copayments due to the annual reset of plan deductibles.
On April 18, Catalyst and SXC Health Solutions Corp. announced that their boards of directors have unanimously approved a definitive merger agreement under which SXC and Catalyst will combine in a cash and stock transaction valued at approximately $4.4 billion. Under the terms of the agreement, Catalyst shareholders will receive $28.00 in cash and 0.6606 shares of SXC stock for each Catalyst share. The merger, which is subject to approval by SXC and Catalyst shareholders, U.S. antitrust approval, and other customary closing conditions, is expected to close in the second half of 2012.
In other industry new:
Hub International Ltd., Chicago, Ill., acquired the assets of Association Benefits Insurance Agency Inc., a Lynnfield, Mass.–based insurance brokerage firm. Terms of the acquisition were not disclosed. The ABIA operation will become part of Hub International New England LLC. Co-principals Frank Venuto and Frank Michaud will join Hub New England, reporting to Michael S. Chapman, chief sales officer.
Founded in 2000, ABIA specializes in arranging commercial lines insurance programs for the members of a wide range of endorsed associations. Currently working with a dozen groups throughout the New England region, ABIA’s mission is to help develop and grow associations through the marketing and sales of insurance products to niche-based industries. Some of the insurance solutions they have implemented for various associations include programs for workers’ compensation, property and liability, commercial auto, health, etc. As a result of the acquisition, ABIA customers will gain access to the complete suite of insurance products and services available through Hub.
Allianz Life Insurance Co. of North America, Minneapolis, Minn., named Denise Brinker as the new assistant vice president, Learning and Development. In this role, Brinker leads the learning and development center of excellence for more than 4,800 employees across Allianz of America, which includes Allianz Life and Fireman's Fund Insurance Company. She will oversee programs for employee engagement, career development, succession planning and process formation.
Brinker reports to Yvonne Franzese, senior vice president and chief human resources officer for Allianz of America.
Brinker joined Allianz Life in 1986 as an auditor and accounting manager. Since that time, she has held positions as a director for both the Training and Operations divisions, where she was responsible for program development and implementation as well as managing HR communications for Allianz of America. Most recently she was senior director of Learning and Development and HR chief of staff.
Great-West Life & Annuity Insurance Co., Greenwood Village, Colo., introduced Great-West SecureFoundation Smart Future, a retirement income solution developed for the bank affiliated broker/dealer market.
Great-West SecureFoundation Smart Future enables clients to participate in potential gains in the stock and bond markets while providing an insurance benefit that features a lifetime income guarantee. The retirement income solution consists of the Maxim SecureFoundation Balanced ETF Portfolio, which invests in a cost-effective portfolio of Vanguard exchange-traded funds, together with the Great-West SecureFoundation Guarantee, which provides steady income payments guaranteed for life. The Great-West SecureFoundation Guarantee is backed by Great-West.
Pacific Life, Newport Beach, Calif., introduced Pacific Life Nautilus, an online retirement income planning tool to help financial advisors engage clients in a conversation about how to build sustainable lifetime retirement income.
Pacific Life Nautilus is based on product allocation, which involves blending three categories of income products—traditional investments, variable annuities and guaranteed income solutions—in optimal proportions to create sustainable lifetime retirement income.
To use Pacific Life Nautilus, the advisor enters brief information about the client’s age, current retirement savings and desired retirement income. The tool then generates a numerical measure called a retirement sustainability quotient (RSQ). The higher the RSQ, the more likely it is that the client’s current portfolio can generate the desired level of retirement income stream over his or her lifetime. The tool then offers three possible product allocation strategies with higher RSQs. These higher RSQ strategies illustrate how the client might increase his or her likelihood of creating a more sustainable lifetime retirement income.
To assist advisors further, Pacific Life is launching a new suite of sales, education, and promotional resources that focus on the product allocation concept. They include an interactive website and tools, as well as a comprehensive set of printed materials.
The Association for Advanced Life Underwriting, Reston, Va., selected Greenberg Traurig, Miami, Fla., to serve as outside general counsel. In this role, Greenberg Traurig’s multidisciplinary global tax team will provide technical guidance and advice to AALU on the key legal and legislative issues important to the organization and its members, including the tax treatment of life insurance, sophisticated estate and trust issues, matters related to executive benefits, and the regulation of the life insurance industry.
The AALU is devoted to helping members grow their businesses as well as help protect their clients’ interests in Washington, D.C. The AALU's membership consists of more than 2,200 life insurance professionals who help educate Congressional leaders and regulators about the impact of government action on the more than 75 million families and businesses that rely on life insurance for financial security.
Horizon Blue Cross Blue Shield of New Jersey, Newark, N.J., signed a lease for a retail center in the East Gate Square Shopping Center on Route 38 in Moorestown, N.J. Visitors to the retail center will be able to get the latest information on health and wellness and have health insurance questions answered. The facility is slated to open over the summer.
Horizon BCBSNJ’s retail center will be staffed by specially-trained personnel to help customers with their health insurance needs, direct them to resources for maintaining a healthy lifestyle and assist them in purchasing health insurance products and services. The facility will be equipped with private meeting rooms, interactive work stations for benefits and claims information, and a children’s entertainment center.