Cigna reaches agreement with Chubb

The transaction is expected to be completed in 2022, subject to applicable regulatory approvals and customary closing conditions.

"Our agreement with Chubb is another step forward in advancing our strategic focus on our global health services portfolio," said David Cordani, President and CEO at Cigna Corporation. "We are proud of our success in building these life, accident and supplemental benefits businesses in Asia Pacific and improving the well-being and sense of security of our customers throughout the region."

Upon completion of the transaction, Chubb will acquire Cigna's life, accident and supplemental benefits businesses in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand as well as Cigna's interest in a joint venture in Turkey.  In Korea, Chubb will acquire and plans to continue to operate the business under the LINA Korea (Life Insurance Company of North America Korea) brand.

Cigna will continue to operate its international health businesses for the globally mobile population, as well as local market services in the Middle East, Europe, Hong Kong, Singapore and its joint ventures in Australia, China and India.

Rebalancing its global portfolio

Chubb will pay Cigna a cash consideration of $5.75 billion. The transaction is not subject to a financing condition and Cigna expects to realize approximately $5.4 billion of net after-tax proceeds from this transaction. Cigna expects to utilise the proceeds from the transaction primarily for share repurchase, broadly consistent with Cigna's capital deployment framework. The impact of the transaction is expected to be neutral to slightly dilutive to Cigna's earnings per share in 2022.

"The addition of Cigna's business will rebalance our global portfolio toward this important region," said Evan Greenberg, Chairman and CEO at Chubb. "We have long admired and respected Cigna's business in Asia including its talented people, innovative products, technical and analytical capabilities, distribution and management."

Cigna and Chubb are committed to ensuring a smooth transition for customers, partners, clients and employees throughout this period. Wachtell, Lipton, Rosen & Katz is serving as lead legal counsel, and Baker McKenzie is serving as lead regulatory counsel on the transaction.