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Potential divestitures by large insurers may present M&A opportunities for WellCare

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Potential divestitures by large insurers may present M&A opportunities for WellCare

remains on the lookout for M&A opportunities that may emerge frompotentialdivestitures by companies involved in the ongoing consolidation of the healthinsurance space.

Theinsurer in February announced a deal for certain assets of , two weeks aftersignaling itsinterest in inorganic growth to double its revenue by 2021.

WhileWellCare has a preference for tuck-in deals like Advicare that will helpbolster the company's presence in existing markets, the insurer is also open toengaging in deals that will help it gain a foothold in new markets, Presidentand CEO Kenneth Burdick said on an earnings call.

Aftera couple of years of "a forced hiatus" from deal making to buildinfrastructure and strengthen operations, the company is relatively new intoday's M&A game, Burdick said.

"Welike the level of activity that we are starting to see, but it's a long-termproposition," he said. "And, we believe there will beboth Medicaid and Medicare M&A opportunities in the years to come."