New York-listed insurer Chubb Limited announced that it has completed its acquisition of the life and non-life insurance companies that house the personal accident, supplemental health and life insurance business of Cigna in six Asia-Pacific markets.
Chubb paid $5.36 billion for the operations, which include Cigna’s accident and health (A&H) and life business in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia.
The reduction in the final purchase price from the original announcement reflects the impacts of rising interest rates and foreign exchange rates on acquired book value and other minor adjustments.
This complementary strategic acquisition advances Chubb by expanding 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 $7 billion in premium from $4 billion, representing about 18% of the total company premiums, with approximately 95% of the acquired business contributing to Chubb’s Life Insurance segment and the remainder to its Overseas General Insurance segment.
The company’s global A&H writings will increase in size to approximately $6 billion in premium, up from $3.7 billion, while the company’s life insurance segment becomes a $5.4 billion business.
“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 favorable 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,” he added.
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 clients.