US insurer Chubb Ltd has agreed to buy health insurer Cigna Corp’s life, accident and supplemental benefits businesses in Asia-Pacific and Turkey for US$5.75 billion in cash, both insurers said, marking the latest consolidation in Asia’s insurance sector.
In a statement issued on Thursday, Chubb said it is to acquire Cigna’s accident, health and life insurance business in Taiwan, South Korea, New Zealand, Thailand, Hong Kong and Indonesia, in addition to Cigna’s 51 percent stake in a joint venture in Turkey.
“The addition of Cigna’s business, which is overwhelmingly accident and health, will rebalance our global portfolio towards this important region,” Chubb CEO Evan Greenberg said.
Photo: Reuters
Chubb said the acquisition should boost Asia’s share of its global portfolio to US$7 billion from about US$4 billion in net premiums written, representing about 20 percent of the company’s total business, excluding China.
The transaction comes at a time of a shakeup in the insurance sector in key markets.
In August, HSBC Holdings agreed to acquire French insurer Axa’s Singapore assets for US$575 million.
Last year, Singapore Life, an upstart insurer backed by investors including buyout group TPG, acquired the Singapore business of British insurer Aviva for nearly US$2 billion as it expands in Southeast Asia.
Cigna said Chubb is acquiring Cigna’s business in South Korea and would to continue to operate it under the LINA Korea brand.
Cigna plans to 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 US$5.4 billion of net after-tax proceeds.
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