Cigna Corp., a global health services company, announced today the completion of its previously announced divestiture of its life, accident, and supplemental benefits businesses in six Asia Pacific markets to Chubb in a $5.4 billion transaction.
"The completion of this transaction allows us to focus our efforts even more on growing our global health portfolio," said David M. Cordani, chairman and CEO of Cigna Corporation. "We are proud of what our teams across Asia Pacific have accomplished over the years to improve our customers' well-being and peace of mind, and we know they will thrive with Chubb."
Chubb has taken over Cigna's life, accident, and supplemental benefits businesses in Hong Kong, Indonesia, Korea, New Zealand, Taiwan, and Thailand. Cigna and Chubb had previously agreed to exclude Cigna's stake in a Turkish joint venture from the transaction.
Cigna remains committed to its thriving international health business, which provides affordable, predictable, and straightforward health coverage all over the world. Cigna will continue to meet the needs of employers, individuals, and intergovernmental organizations while also providing health insurance and health services in a variety of countries.
Cigna's international health businesses in North America, Europe, the Middle East, Hong Kong, Singapore, and Australia are unaffected by the transaction, nor is Cigna's supplemental health business in the United States. Cigna also plans to keep its joint ventures in Australia, China, and India.
Chubb paid Cigna nearly $5.4 billion in cash, and Cigna expects to realize approximately $5.1 billion in net after-tax proceeds from the transaction. The transaction proceeds are expected to be used primarily for share repurchase, with $3.5 billion used to fund an accelerated share repurchase announced on June 16, 2022. Cigna remains on track to repurchase at least $7 billion of its shares in 2022, when combined with previously completed share repurchases.
Cigna Corporation is a global health services company committed to enhancing the health, well-being, and peace of mind of those we serve. Through integrated capabilities and connected, personalized solutions that advance whole person health, Cigna provides choice, predictability, affordability, and access to quality care. Cigna Corporation's operating subsidiaries, including Cigna Health and Life Insurance Company, Connecticut General Life Insurance Company, Evernorth companies or their affiliates, and Express Scripts companies or their affiliates, provide all products and services exclusively. An integrated suite of health services, such as medical, dental, behavioral health, pharmacy, vision, supplemental benefits, and other related products, is one example of such products and services.
Cigna has sales capability in over 30 countries and jurisdictions and over 190 million customer relationships worldwide. Visit www.cigna.com to learn more about Cigna®, including links to follow us on Facebook and Twitter.