Chubb to Acquire Cigna units in 7 APAC markets

Chubb Limited has announced a definitive agreement to acquire the life and non-life insurance companies that house the personal accident, supplemental health and life insurance business of Cigna in seven Asia-Pacific markets for USD5.75 billion dollars in cash.

The operations to be acquired include Cigna’s A&H and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia and its interest in a joint venture in Turkey.  These operations generated approximately USD3 billion in net premiums written in 2020.

This highly complementary transaction advances Chubb’s strategy to expand its presence in the Asia-Pacific region, a long-term growth area for the company, and adds to an already sizable A&H business while expanding the company’s Asia-based life insurance presence.  Upon completion of the transaction, Asia-Pacific’s share of Chubb’s global portfolio will increase from approximately USD4 billion to USD7 billion in premium and represent approximately 20 percent of the company (excluding China).  Over 80 percent 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 USD3.7 billion to USD6.1 billion.  Together, A&H and life will comprise 21 percent of the company’s overall premium revenue compared to 14 percent currently.