Global insurance provider Chubb has entered into a definitive agreement to acquire the life and health insurance companies of Cigna in seven Asia-Pacific markets for $5.75bn (£4.2bn, €5bn) in cash.
The operations include Cigna’s accident & health (A&H) and life businesses in Korea, Taiwan, New Zealand, Thailand, Hong Kong, and Indonesia.
Chubb will also buy Cigna’s interest in a joint venture in Turkey.
Overall, the businesses generated around $3bn in net premiums written in 2020.
The M&A deal is part of Chubb’s strategy to expand its presence in APAC markets, as it adds an “already sizeable A&H business while expanding the company’s Asia-based life insurance presence”, it said.
‘Capitalise on market and product opportunities’
Evan Greenberg, chairman and chief executive of Chubb, said: “The addition of Cigna’s business, which is overwhelmingly A&H, will further balance our global portfolio toward this important region.
“We have long admired and respected Cigna’s business in Asia including its talented people, innovative products, technical and analytical capabilities, distribution and management. We know these businesses well, as we already have a sizable operation of our own in the region and globally.
“These businesses produce very stable, high-quality earnings. The digital opportunity across the region is large and untapped and suitable for our direct-marketed A&H products and our consumer P&C and simple life insurance products. We are looking to the future. Broadly across the region, Chubb will be better able to capitalise on market and product opportunities with strong brand, complementary direct marketing skills and the cross-selling of Chubb’s non-life product to life customers.”
David Cordani, president and chief executive of Cigna, added: “Our agreement with Chubb is another step forward in advancing our strategic focus on our global health services portfolio. We are proud of our success in building these accident, supplemental and life benefits businesses in Asia Pacific and improving the well-being and sense of security of our customers throughout the region.”
