Chubb Completes Acquisition of Cigna’s Personal Accident, Supplemental Health and Life Insurance Business in Asia-Pacific – Yahoo Finance

ZURICH, July 1, 2022 /PRNewswire/ — Chubb Ltd. (NYSE:CB) today announced that it has completed the acquisition of life and non-life insurers, Cigna’s personal accident, supplemental health and life insurance businesses. are the center of. NYSE: CI) in six Asia-Pacific markets. Chubb paid $5.36 billion for operations, which include Cigna’s Accident & Health (A&H) and life businesses in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia. The reduction in the final purchase price from the original announcement reflects the effects of rising interest rates and foreign exchange rates on the acquired book value and other minor adjustments.

This complementary strategic acquisition furthers Chubb by expanding its presence in the Asia-Pacific region, a long-term growth region for the company. With the addition of Cigna’s business, Asia-Pacific’s stake in Chubb’s global portfolio will increase from $4 billion to approximately $7 billion, representing approximately 18% of the total company premium, with approximately 95% of the acquired business remaining during Chubb’s life. Contributes to insurance. clause and the remainder for your overseas general insurance segment. The company’s global A&H writing size will increase from $3.7 billion to a premium of approximately $6 billion, while the company’s life insurance segment will become a $5.4 billion business.

“Cigna’s business, which is approximately 80% A&H, adds significantly to our business in Asia,” said Chubb’s President and CEO, Evan G. Greenberg said. “The Asia-Pacific region offers great potential for long-term growth and wealth creation. Cigna businesses have favorable underwriting margins, produce high-quality earnings, and are not exposed to the P&C cycle. Chubb Very well positioned to capitalize on market and product opportunities, including cross-selling Chubb’s non-Life products to Life customers with a strong brand, technology and complementary direct marketing skills and partnerships.

“At the same time, I am pleased to welcome nearly 3,000 new associates to Chubb. Together, Chubb and Cigna’s leadership and talented professionals will enable us to deliver greater value to our customers, distribution partners and shareholders.”

The key financial aspects of the transaction are positive: earnings and earnings per share accretion, return on equity accretion and other transaction returns, all expected to be in line with or better than what was originally announced. The underlying business remains strong, with the plan continuing a positive outlook for premiums and premium growth on a constant dollar basis prior to the plan. The efficiencies created by the transaction are expected to provide the company with greater flexibility to invest in people, technology, products and distribution in the region. Expense synergies are now projected at a run-rate of $100 million pre-tax, or 28% higher than previously estimated, resulting in a one-time net integration cost of $140 million pre-tax, which is higher than originally estimated. reflects. Higher expected ongoing expense synergies.

The integration plan has been actively underway since the transaction was announced last October. In Korea, the business will continue to operate under the LINA name, but with a facelift that aligns with the Chubb brand. In other markets, businesses will be rebranded as Chubb as integration progresses and operating units are combined.

about chubbo

Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of customers. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and expeditiously. The company is also defined by its extensive product and service offerings, wide distribution capabilities, exceptional financial strength and local operations on a global scale. The parent company Chubb Limited is listed on the New York Stock Exchange (NYSE:CB) and is a constituent of the S&P 500 Index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 34,000 people worldwide. Additional information can be found at: www.chubb.com

Cautionary Statement with respect to Forward-looking Statements:

The forward-looking statements made in this press release, such as those relating to the acquisitions of the businesses mentioned above, potential post-acquisition performance, growth opportunities, integrations, and our expectations and intentions that are not historical facts, reflect our current views in the future. with respect to the events and financial performance of the Company and in accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially from such statements, including without limitation, statements. the anticipated benefits of the proposed transaction, including future financial results; receipt of any necessary regulatory approvals and meeting other closing conditions; our ability to integrate acquired businesses, operations and employees; General competitive, economic, political, insurance and reinsurance business market conditions; and judicial, legislative, regulatory and other government developments, as well as management’s responses to these factors, and other factors identified in our filings with the Securities and Exchange Commission.

Readers are cautioned not to place undue reliance on these forward-looking statements, which state only the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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