Cigna selling part of its international business to Chubb

Photo | Cigna Cigna's headquarters in Bloomfield.

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By Zachary Vasile

Cigna has reached an agreement to divest its life, accident and supplemental benefits businesses in seven Asia-Pacific countries.

In a statement, officials with the Bloomfield-based insurer and health conglomerate said Chubb Ltd. will pay $5.75 billion in cash to acquire Cigna’s life, accident and supplemental benefits operations in Hong Kong, Indonesia, South Korea, New Zealand, Taiwan and Thailand, as well as Cigna’s interest in a joint venture in Turkey.

Those businesses generated approximately $3 billion in net premiums written in 2020, according to Chubb.

The transaction is expected to be completed in 2022, subject to applicable regulatory approvals.

“Our agreement with Chubb is another step forward in advancing our strategic focus on our global health services portfolio,” said Cigna President and CEO David M. Cordani. “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.”

Cigna officials said the company will continue to operate its international health businesses and local market services in the Middle East, Europe, Hong Kong and Singapore, in addition to its joint ventures in Australia, China and India.

Cigna expects to use most of the proceeds from the Chubb deal to repurchase shares.