To Focus On Healthcare, Cigna To Sell Life Insurance Business To Chubb For $5.75 Billion

Cigna Thursday evening stated it’ll promote its life, accident and supplemental advantages companies to Chubb for $5.75 billion in money.

The companies, that are situated throughout seven nations, will permit Cigna to concentrate on its healthcare companies, Cigna’s high govt stated. Cigna lately has been including extra well being and prescription advantages and medical care supplier operations to go with its industrial medical health insurance enterprise, rising Medicare Benefit plans and particular person medical health insurance operations.

“Our settlement with Chubb is one other step ahead in advancing our strategic concentrate on our international well being providers portfolio,” Cigna president and chief govt David Cordani stated. “We’re pleased with our success in constructing these life, accident and supplemental advantages companies in Asia Pacific and bettering the well-being and sense of safety of our prospects all through the area.”

Cigna, which purchased the pharmacy profit supervisor Specific Scripts three years in the past, has a giant enterprise administering protection for giant self-insured employers and can be packaging an array of medical, pharmacy and behavioral well being advantages for employers giant and small. As well as, Cigna’s Evernorth healthcare providers enterprise is rising and the corporate is seeking to develop that as a approach to compete with rival well being insurers like UnitedHealth Group, which owns the Optum well being providers enterprise, and CVS Well being, which owns the nationwide drugstore chain greater than 1,000 MinuteClinics and the third largest well being insurer in Aetna.

Cigna’s take care of Chubb is anticipated to be accomplished in 2022, “topic to relevant regulatory approvals and customary closing situations,” Cigna and Chubb stated Thursday evening in an announcement.

As soon as the transaction is accomplished, the businesses stated Chubb will purchase Cigna’s “life, accident and supplemental advantages companies in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand in addition to Cigna’s curiosity in a three way partnership in Turkey.” And in Korea, Chubb will “purchase and plans to proceed to function the enterprise beneath the LINA Korea (Life Insurance coverage Firm of North America Korea) model,” Cigna stated.

“The addition of Cigna’s enterprise, which is overwhelmingly A&H, will rebalance our international portfolio towards this vital area,” Chubb chairman and CEO Evan Greenberg stated. “Now we have lengthy admired and revered Cigna’s enterprise in Asia together with its gifted folks, revolutionary merchandise, technical and analytical capabilities, distribution and administration.”

Cigna stated it’ll proceed to function worldwide well being companies for “the globally cellular inhabitants, in addition to native market providers within the Center East, Europe, Hong Kong, Singapore and its joint ventures in Australia, China and India.”