Cigna accomplished a $5.36 billion sale of its life, accident and supplemental advantages companies in six nations to Chubb, the insurance coverage firm introduced Friday.
Cigna agreed to divest its accident, well being and life enterprise in Hong Kong, Indonesia, New Zealand, South Korea, Taiwan and Thailand in October. These belongings will enhance Chubb’s premium revenues by $3 billion, the property and casualty, accident and well being, reinsurance, and life insurance coverage firm stated in a information launch.
Cigna expects the sale to generate roughly $5.1 billion in after-tax proceeds, which will likely be used primarily for share repurchases, the corporate stated in a information launch.
“The completion of this transaction allows us to further focus our efforts to grow our global health portfolio,” Cigna CEO and Chair David Cordani stated within the information launch.
The deal does not contain Cigna’s well being companies in Australia, Hong Kong, Singapore, Europe, the Middle East and North America, the corporate stated. Cigna additionally will retain joint ventures in Australia, China and India and its home supplemental well being enterprise.
Other U.S. insurance coverage corporations have just lately shed worldwide belongings.
Centene will unload its $2 billion international health business this yr, executives stated in June. In May, CVS Health subsidiary Aetna entered into an settlement to promote most of its African, Asia-Pacific, European and Middle Eastern insurance coverage subsidiaries to Allianz Partners for an undisclosed sum. The insurer beforehand dealt its Thailand operations to Allianz Ayudhya Capital Public Company. Aetna can be contemplating the way forward for its medical insurance coverage enterprise in India.