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Chubb completes acquisition of Cigna APAC businesses

1st July 2022 - Author: Jack Willard

Chubb Limited has completed its acquisition of the life and non-life insurance companies that house the personal accident, supplemental health and life insurance business of Cigna, in six Asia-Pacific markets.

ChubbChubb paid $5.36 billion for the operations, which includes Cigna’s accident and health (A&H) and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia.

The acquisition was originally announced in October 2021. In a press release, it notes that the reduction in the final purchase price from the original announcement reflects the impacts of rising interest rates and foreign exchange rates on acquired book value and other minor adjustments.

Integration planning has been actively underway since the transaction was announced last October.

However, in Korea, the business will continue to operate under the LINA name, but with a new look that aligns with the Chubb brand. In other markets, the businesses will be rebranded as Chubb as the integration progresses and operating entities are combined.

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This strategic acquisition will advance Chubb as it expands its presence within the Asia-Pacific region. At the same time, with the addition of Cigna’s business, Asia-Pacific’s share of Chubb’s global portfolio will grow to approximately $7 billion in premium from $4 billion, representing 18% of the total company premiums, with approximately 95% of the acquired business contributing to Chubb’s Life Insurance segment and the remainder to its Overseas General Insurance segment.

In addition, the company’s global A&H writings will  also increase in size to approximately $6 billion in premium, a big increase from $3.7 billion, while the company’s life insurance segment becomes a $5.4 billion business.

Evan G. Greenberg, Chairman and CEO of Chubb, commented: “Cigna’s business, which is approximately 80% A&H, adds significantly to our business in Asia. The Asia-Pacific region offers great potential for long-term growth and wealth creation. The Cigna businesses have favorable underwriting margins, produce high-quality earnings, and are not exposed to the P&C cycle. Chubb is so well positioned to capitalize on market and product opportunities, including the cross-selling of Chubb’s non-life products to life customers, with a strong brand, technology, and complementary direct marketing skills and partnerships.

“At the same time, I am also pleased to welcome nearly 3,000 new colleagues to Chubb. Together, the leadership and talented professionals of Chubb and Cigna will enable us to provide greater value to our customers, distribution partners, and shareholders.”

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