Chubb to acquire Cigna’s Asian and Turkey businesses
Chubb announced a definitive agreement to acquire the life and non-life insurance companies that house the personal accident, supplemental health and life insurance business of Cigna in seven Asia-Pacific markets for $5.75 billion dollars in cash.
The operations to be acquired include Cigna’s A&H and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia and its interest in a joint venture in Turkey. These operations generated approximately $3 billion in net premiums written in 2020.
This highly complementary transaction advances Chubb’s strategy to expand its presence in the Asia-Pacific region, a long-term growth area for the company, and adds to an already sizable A&H business while expanding the company’s Asia-based life insurance presence. Upon completion of the transaction, Asia-Pacific’s share of Chubb’s global portfolio will increase from approximately $4 billion to $7 billion in premium and represent approximately 20% of the company (excluding China). Over 80% of the premiums from the business to be acquired are from supplemental A&H products, further building Chubb’s leadership in global supplemental A&H, with premiums growing from $3.7 billion to $6.1 billion. Together, A&H and life will comprise 21% of the company’s overall premium revenue compared to 14% today.
“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 capitalize 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.” – Evan G. Greenberg, chairman and CEO of Chubb.
“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.” – David M. Cordani, president and CEO, Cigna Corporation.