Cigna Offloads Life Insurance Business To Chubb In $5.75B Deal

  • Chubb Limited CB is buying the Asia Pacific and Turkey businesses of rival insurer Cigna Corp CI for $5.75 billion in cash. The transaction is expected to be completed in 2022.
  • Chubb said it would acquire Cigna's Accident & Health and life business in South Korea, Taiwan, New Zealand, Thailand, Hong Kong, and Indonesia and Cigna's 51% stake in a joint venture in Turkey.
  • Chubb said the acquisition would boost Asia's share of its global portfolio to $7 billion from about $4 billion in net premiums written, representing about 20% of the company's total business, excluding China.
  • Cigna will focus on its global health services portfolio and local market services in the Middle East, Europe, Hong Kong, Singapore, and its joint ventures in Australia, China, and India.
  • The transaction is expected to be immediately accretive to Chubb's core operating EPS and return on equity for full-year 2023 by 6% and approximately 55 basis points, respectively. 
  • Chubb estimates that it will realize over $80 million of expense savings. 
  • As of June 30, Chubb held $1.8 billion in cash and $121.4 billion in investments.
  • Price Action: CI stock is up 1.58% at $207.95, and CB stock traded 0.76% higher at $179.68 during the premarket session on the last check Friday.
  • Photo by Capri23auto from Pixabay
Market News and Data brought to you by Benzinga APIs
Posted In: M&ANewsHealth CareInsuranceGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!