Global insurer Chubb acquires Cigna’s APAC business for $5.75b
Cigna has operations in seven markets in Asia-Pacific.
Global insurer Chubb Limited will acquire the life and non-life insurance business of Cigna in seven Asia-Pacific markets for $5.75b.
The operations to be acquired include Cigna's accident and health (A&H) insurance and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia and its interest in a joint venture in Turkey. The entire business is worth approximately $3b.
Upon completion of the transaction, Asia-Pacific's share of Chubb's global portfolio will increase from approximately $4b to $7b 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 $3.7b to $6.1b. 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,” Evan G. Greenberg, chairman and CEO of Chubb said.