Chubb is buying Cigna’s life and non-life business in seven Asia-Pacific markets for $5.75bn as it pushes ahead with expansion plans in the region.
The all-cash deal sees Chubb snap up Cigna’s accident and health (A&H) and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, as well as interest in a joint venture in Turkey. The businesses generated approximately $3bn in net premiums last year.
The acquisition will see Asia-Pacific’s share of Chubb’s global portfolio increase from approximately $4bn to $7bn in premium. The region now represents approximately 20% of the company’s premium, excluding China.
“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,” said the insurer.
The deal will see Chubb’s global A&H premiums grow from $3.7bn to $6.1bn.
Chubb expects the acquisition to complete next year and deliver $80m of expense savings.
Evan G Greenberg, Chubb’s chairman and CEO, said the addition of Cigna’s business will “further balance” his firm’s global portfolio towards the “important” Asia-Pacific region.
“Broadly across the region, Chubb will be better able to capitalise on market and product opportunities with strong brand, complementary direct marketing skills and the cross-selling of Chubb’s non-life product to life customers,” he added.