U.S. insurer Chubb has agreed to buy health insurer Cigna’s life, casualty and supplemental benefits business in the Asia Pacific region and Turkey for $5.75 billion in cash, marking the latest merger in Asia’s insurance industry.
Chubb announced that it will acquire Cigna’s businesses in South Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, in addition to Cigna’s 51% stake in a joint venture in Turkey, and this deal coincides with the turmoil in the insurance sector in most major markets.
However, Chubb stated that its deal aims to boost Asia’s share of its global portfolio from $4 billion to $7 billion in net written debt premiums, equivalent to 20% of the company’s total business except in China.
Cigna stated that Chubb will operate in South Korea and will continue to operate under the LINA Korea brand, and Cinga will focus on its global healthcare services portfolio, as well as local services in the Middle East, Europe, Hong Kong, Singapore and joint ventures in Australia, China and India.
According to the statements, the deal is not subject to financial conditions, and Cigna expects its net after-tax revenue to reach $5.4 billion, and the deal is currently awaiting necessary regulatory approvals and is expected to close in 2022.