SINGAPORE :U.S. insurer Chubb Ltd has agreed to buy health insurer Cigna Corp's life, accident, and supplemental benefits businesses in Asia Pacific and Turkey for US$5.75 billion in cash, both insurers said, marking the latest consolidation in Asia's insurance sector.
In a statement issued late on Thursday, Chubb said it will acquire Cigna's A&H (accident and health) and life business in South Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, in addition to Cigna's 51per cent stake in a joint venture in Turkey.
"The addition of Cigna's business, which is overwhelmingly A&H (accident and health), will rebalance our global portfolio towards this important region," Chubb CEO Evan Greenberg said.
Chubb said the acquisition will boost Asia's share of its global portfolio to US$7 billion from about US$4 billion in net premiums written, representing about 20per cent of the company's total business, excluding China.
The transaction comes at a time of a shakeup in the insurance sector in key markets.
In August, HSBC Holdings agreed to acquire https://www.reuters.com/world/asia-pacific/hsbc-buy-axas-insurance-assets-singapore-575-mln-2021-08-16 French insurer Axa's Singapore assets for US$575 million.
Last year, Singapore Life, an upstart insurer backed by investors including buyout group TPG, acquired the Singapore business of British insurer Aviva https://www.reuters.com/article/us-aviva-gb-divestiture-idUSKBN26225B for nearly US$2 billion, as it expands in Southeast Asia.
Cigna said Chubb will acquire Cigna's business in South Korea and continue to operate it under the LINA Korea brand.
Cigna will focus on its global health services portfolio, as well as local market services in the Middle East, Europe, Hong Kong, Singapore and its joint ventures in Australia, China and India.
The deal is not subject to a financing condition and Cigna expects to realize about US$5.4 billion of net after-tax proceeds.
The transaction, subject to regulatory approvals, is expected to be completed in 2022.
(Reporting by Anshuman Daga in Singapore and Bhargav Acharya in Bengaluru; Editing by Uttaresh.V & Shri Navaratnam)