Chubb has completed its acquisition of the personal accident, supplemental health and life insurance business of Cigna in six Asia-Pacific markets.
The transaction, worth US$5.36 billion (SG$7.5 billion), include Cigna’s accident and health (A&H) and life businesses in South Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia. It was first announced in October 2021.
Chubb said the acquisition expands its presence in the Asia-Pacific region, a long-term growth area for the company. With the addition of Cigna’s business, Asia-Pacific’s share of Chubb’s global portfolio will grow to approximately US$7 billion in premium from US$4 billion, representing about 18% of the total company premiums. Around 95% of the acquired business will contribute to Chubb’s life insurance segment, while the remainder will go to its overseas general insurance segment.
Chubb’s global A&H writings will grow to approximately US$6 billion in premium, up from US$3.7 billion, while its life insurance segment will become a US$5.4 billion business. Chubb will gain close to 3,000 new employees with the acquisition.
“Cigna’s business, which is approximately 80% A&H, adds significantly to our business in Asia,” said Evan G. Greenberg, chairman and CEO of Chubb. “The Asia-Pacific region offers great potential for long-term growth and wealth creation. The Cigna businesses have favourable underwriting margins, produce high-quality earnings, and are not exposed to the P&C cycle. Chubb is so well-positioned to capitalize on market and product opportunities, including the cross-selling of Chubb’s non-life products to life customers, with a strong brand, technology, and complementary direct marketing skills and partnerships.”
The parties have been working on integration plans since the transaction was announced. In Korea, the business will continue to operate under the LINA name but will take on a new look that aligns with the Chubb brand. In other markets, the businesses will be rebranded as Chubb as the integration progresses and operating entities are combined.