(Reuters) – Chubb Ltd. has agreed to buy Cigna Corp.'s life insurance, accidents and additional benefits in Asia Pacific and Turkey for $ 5.75 billion in cash, both insurance companies said, marking the latest consolidation in Asia's insurance sector.
In a statement issued late Thursday, Chubb said it would acquire Cigna's accident and health operations in South Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, in addition to Cigna's 51% stake in a joint venture. venture in Turkey.
"The addition of Cigna's operations, which are overwhelmingly A&H, will balance our global portfolio with this important region," said Chubb's CEO Evan Greenberg.
Chubb said the acquisition will increase Asia's share of its global portfolio to $ 7 billion from about $ 4 billion in net written premiums, representing about 20% of the company's total business, excluding China.
In August, HSBC Holdings agreed to acquire the French insurer Axa SA's Singapore assets for $ 575 million.
Last year, Singapore Life, a start-up insurer supported by investors including the buyout group TPG, acquired the UK insurer's operations in Singapore. Aviva for almost $ 2 billion, as it expands in Southeast Asia.
Cigna said that Chubb will acquire Cigna's operations in South Korea and continue to operate it under the LINA Korea brand.
Cigna will focus on its global portfolio of healthcare services, as well as local marketing services in the Middle East, Europe, Hong Kong, Singapore and its joint ventures in Australia, China and India.
The transaction is not subject to financing and Cigna expects to realize approximately $ 5.4 billion net after tax.
The transaction, subject to regulatory approvals, is expected to be completed in 2022.