Chubb to Acquire Cigna Businesses in Asia, Turkey for $5.75 Billion

   By P.R. Venkat 
 

Chubb Ltd. has agreed to buy the Asia-Pacific insurance business of Cigna Corp. for $5.75 billion in an all-cash deal, as part of its strategy to expand in the region.

The operations to be acquired include Cigna's accident, health and life-insurance businesses in South Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, the companies said in a joint statement on Friday. The deal also involves acquiring Cigna's interest in a joint venture in Turkey.

These operations generated approximately $3 billion in net written premiums in 2020, the statement said.

Upon completion of the transaction, Asia-Pacific's share of Chubb's global portfolio will increase to $7 billion in premiums from about $4 billion and represent approximately 20% of the company, excluding China.

"The addition of Cigna's business, which is overwhelmingly A&H (accident and health), will further balance our global portfolio toward this important region," said Evan G. Greenberg, chairman and chief executive of Chubb.

Once the transaction closes, the deal will be immediately accretive to Chubb's core operating earnings per share, it said.

The transaction is expected to close next year.

Write to P.R. Venkat at [e-mail]

(END) Dow Jones Newswires

October 07, 2021 22:07 ET (02:07 GMT)

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