Chubb Completes Acquisition of Cigna's Personal Accident, Supplemental Health and Life Insurance Business in Asia-Pacific

ZURICH, July 1, 2022 /PRNewswire/ -- Chubb Limited (NYSE: CB) today announced that it has completed its acquisition of the life and non-life insurance companies that house the personal accident, supplemental health and life insurance business of Cigna (NYSE: CI) in six Asia-Pacific markets. Chubb paid $5.36 billion for the operations, which include Cigna's accident and health (A&H) and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia. The reduction in the final purchase price from the original announcement reflects the impacts of rising interest rates and foreign exchange rates on acquired book value and other minor adjustments. 

This complementary strategic acquisition advances Chubb by expanding its presence in the Asia-Pacific region, a long-term growth area for the company. With the addition of Cigna's business, Asia-Pacific's share of Chubb's global portfolio will grow to approximately $7 billion in premium from $4 billion, representing about 18% of the total company premiums, with approximately 95% of the acquired business contributing to Chubb's Life Insurance segment and the remainder to its Overseas General Insurance segment. The company's global A&H writings will increase in size to approximately $6 billion in premium, up from $3.7 billion, while the company's life insurance segment becomes a $5.4 billion business.

"Cigna's business, which is approximately 80% A&H, adds significantly to our business in Asia," said Evan G. Greenberg, Chairman and CEO of Chubb. "The Asia-Pacific region offers great potential for long-term growth and wealth creation. The Cigna businesses have favorable underwriting margins, produce high-quality earnings, and are not exposed to the P&C cycle. Chubb is so well positioned to capitalize on market and product opportunities, including the cross-selling of Chubb's non-life products to life customers, with a strong brand, technology, and complementary direct marketing skills and partnerships.

"At the same time, I am also pleased to welcome nearly 3,000 new colleagues to Chubb. Together, the leadership and talented professionals of Chubb and Cigna will enable us to provide greater value to our customers, distribution partners, and shareholders."

Key financial aspects of the transaction are positive: earnings and earnings per share accretion, return on equity accretion and other deal returns are all expected to be consistent with or better than what was originally announced. The underlying business remains strong, with premiums on a constant-dollar basis ahead of plan and continued positive outlook for premium growth. The efficiencies created by the transaction are expected to provide greater flexibility for the company to invest in people, technology, products and distribution in the region. Expense synergies are now projected to be at a run-rate of $100 million pre-tax, or 28% higher than previously estimated, resulting in one-time net integration costs of $140 million pre-tax, which are higher than originally estimated, reflecting the higher expected ongoing expense synergies.  

Integration planning has been actively underway since the transaction was announced last October. In Korea, the business will continue to operate under the LINA name, but with a fresh look that aligns with the Chubb brand. In other markets, the businesses will be rebranded as Chubb as the integration progresses and operating entities are combined.

About Chubb

Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 34,000 people worldwide. Additional information can be found at: www.chubb.com

Cautionary Statement Regarding Forward-Looking Statements:

Forward-looking statements made in this press release, such as those related to the acquisition of the businesses noted above, potential post-acquisition performance, growth opportunities, integration, and our expectations and intentions that are not historical facts, reflect our current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially from such statements, including without limitation, statements about the anticipated benefits of the proposed transaction, including future financial results; the receipt of any required regulatory approvals and completion of other closing conditions; our ability to integrate the acquired businesses, operations and employees; general competitive, economic, political, insurance and reinsurance business market conditions; and judicial, legislative, regulatory and other governmental developments, as well as management's responses to these factors, and other factors identified in our filings with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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