Country for PR: United States
Contributor: PR Newswire New York
Friday, July 01 2022 - 19:19
Chubb Completes Acquisition of Cigna's Personal Accident, Supplemental Health and Life Insurance Business in Asia-Pacific
ZURICH, July 1, 2022 /PRNewswire-AsiaNet/ --

Chubb Limited (NYSE: CB) today 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 (NYSE: CI) 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. 

Logo -

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 

"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.

"At the same time, I am also pleased to welcome nearly 3,000 new colleagues to 
Chubb. Together, the leadership and talented professionals of Chubb and Cigna 
will enable us to provide greater value to our customers, distribution 
partners, and shareholders."

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

About Chubb

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. As an underwriting company, we assess, assume and manage risk 
with insight and discipline. We service and pay our claims fairly and promptly. 
The company is also defined by its extensive product and service offerings, 
broad distribution capabilities, exceptional financial strength and local 
operations globally. Parent company Chubb Limited is listed on the New York 
Stock Exchange (NYSE: CB) and is a component 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:

Cautionary Statement Regarding Forward-Looking Statements:

Forward-looking statements made in this press release, such as those related to 
the acquisition of the businesses noted above, potential post-acquisition 
performance, growth opportunities, integration, and our expectations and 
intentions that are not historical facts, reflect our current views with 
respect to future events and financial performance and are made pursuant to 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 about the anticipated benefits of the proposed transaction, 
including future financial results; the receipt of any required regulatory 
approvals and completion of other closing conditions; our ability to integrate 
the acquired businesses, operations and employees; general competitive, 
economic, political, insurance and reinsurance business market conditions; and 
judicial, legislative, regulatory and other governmental 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 speak only as of 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.

Source - Chubb Limited IR

CONTACT: Investor Contact: Karen Beyer: (212) 827-4445;; 
Media Contact: Jeffrey Zack: (212) 827-4444;