U.S. insurer Chubb Ltd has agreed to buy health insurer Cigna Corp’s (CI.N) life, accident, and supplemental benefits businesses in Asia Pacific and Turkey for $5.75 billion in cash, both insurers said, marking the latest consolidation in Asia’s insurance sector. Chubb said it will acquire Cigna’s A&H (accident and health) and life business in South Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, in addition to Cigna’s 51% stake in a joint venture in Turkey. Addition of Cigna’s business, which is overwhelmingly A&H, will rebalance our global portfolio towards this important region.
Cigna will focus on its global health services portfolio, as well as local market services in the Middle East, Europe, Hong Kong, Singapore and its joint ventures in Australia, China, and India. The deal is not subject to a financing condition and Cigna expects to realize about $5.4 billion of net after-tax proceeds. The transaction, subject to regulatory approvals, is expected to be completed in 2022.