U.S. domiciled mutual life insurer, New York Life, has entered into a definitive agreement to acquire Cigna’s group life and disability insurance business for USD 6.3 billion.
The transaction is expected to close in the third-quarter of next year and remains subject to regulatory approvals and other customary closing conditions.
Once completed, the group life and disability insurance business of Cigna, a global health service company, will operate within New York Life’s portfolio of strategic businesses, which reinforce the firm’s overal financial strength.
New York Life Chairman and Chief Executive Officer (CEO), Ted Mathas, said: “This transaction increases the value we can deliver to our policy owners, strengthens our well-defined business model, and adds millions of customers to the New York Life family.
“Cigna’s group life and disability business enhances our portfolio of strategic businesses and is led by an experienced management team and high-quality workforce, who we look forward to welcoming to our company. We are fully committed to making this transition as seamless as possible for employees and clients alike.”
Matt Manders, Cigna’s President of Strategy and Solutions, added: “We are proud of what we have achieved in our life and disability business, and the world-class team that powers it. We are confident that clients and customers, including the many who also receive health and related benefits through Cigna, will continue to enjoy the high-quality benefits solutions and service for which this business is known.”
For New York Life, the acquisition is expected to advance its mission of providing financial security and peace of mind to individuals, families, and businesses. For Cigna, the deal enables it to increase its focus on core growth platforms.
William Smith, President of Cigna Group Insurance, commented: “Our team is excited to become a part of New York Life and continue to focus on the mission of providing financial security and peace of mind to individuals, families, and businesses across the country while our unwavering commitment to focusing on productivity will continue.
“We look forward to continuing our relationships with our valued customers and clients. New York Life is a highly-respected brand in our industry and has the capital, commitment, and trust to help us grow and thrive going forward.”