Cigna sells international assets to Chubb for $5 billion
Cigna has completed a $5.36 billion sale of its life, accident and extended benefits business in seven countries to Chubb, the insurance company announced on Friday.
Cigna agreed to divest its accident, health and life businesses in Hong Kong, Indonesia, New Zealand, South Korea, Taiwan and Thailand in October. These assets will increase Chubb’s premium income by $3 billion, the property and casualty, accident and health, reinsurance and life insurance company said in a press release.
Cigna expects the sale to generate approximately $5.1 billion in after-tax proceeds, which will primarily be used for share buybacks, the company said in a press release.
“Completing this transaction allows us to further focus our efforts to grow our global healthcare product portfolio,” Cigna CEO and President David Cordani said in the press release. Cigna did not immediately respond to an interview request.
The agreement does not involve Cigna’s healthcare businesses in Australia, Hong Kong, Singapore, Europe, the Middle East and North America, the company said. Cigna will also retain joint ventures in Australia, China and India as well as its domestic complementary health business.
Other US insurance companies have recently dumped international assets.
Centene will unload its $2 billion international healthcare business this year, executives said in June. In May, Aetna, a subsidiary of CVS Health, reached an agreement to sell most of its insurance subsidiaries in Africa, Asia-Pacific, Europe and the Middle East to Allianz Partners for an undisclosed sum. The insurer previously outsourced its operations in Thailand to Allianz Ayudhya Capital Public Company. Aetna is also considering the future of its medical insurance business in India.