Cigna Sells Life And A&H To Chubb

Cigna will sell its life, accident and supplemental benefits businesses to Chubb for $5.75 billion in cash. The businesses, which are located across seven countries, will allow Cigna to focus on its healthcare businesses. Cigna in recent years has been adding more health and prescription benefits and medical care provider operations to compliment its commercial health insurance business, growing government-subsidized offerings such as Medicare Advantage plans and individual health insurance such as Obamacare.

Cigna, which bought the pharmacy benefit manager Express Scripts 3 years ago, has a big business administering coverage for large self-insured employers and is also packaging an array of medical, pharmacy and behavioral health benefits for employers large and small. In addition, Gigna's Evernorth healthcare services busibess is growing and the company is looking to expand that as a way to compete with rival health insurers like UnitedHealth Group, which owns the Optum health services business, and CVS Health, which owns the national drugstore chain more than 1,000 MinuteClinics and the third largest health insurer in Aetna.

Cigna’s deal with Chubb is expected to be completed in 2022, “subject to applicable regulatory approvals and customary closing conditions. Once the transaction is completed, Chubb will acquire Cigna's “life, accident and supplemental benefits businesses in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand as well as Cigna's interest in a joint venture in Turkey.” And in Korea, Chubb will “acquire and plans to continue to operate the business under the LINA Korea (Life Insurance Company of North America Korea) brand. 

Cigna will continue to operate international health businesses for “the globally mobile population, as well as local market services in the Middle East, Europe, Hong Kong, Singapore and its joint ventures in Australia, China and India.