Cigna sells international assets to Chubb for $5B

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Cigna finished a $5.36 billion sale of its lifestyles, coincidence and supplemental advantages companies in six international locations to Chubb, the insurance coverage corporate introduced Friday.

Cigna agreed to divest its coincidence, well being and lifestyles industry in Hong Kong, Indonesia, New Zealand, South Korea, Taiwan and Thailand in October. Those belongings will spice up Chubb's top rate revenues by means of $3 billion, the valuables and casualty, coincidence and well being, reinsurance, and lifestyles insurance coverage corporate stated in a information liberate.

Cigna expects the sale to generate roughly $5.1 billion in after-tax proceeds, which shall be used essentially for proportion repurchases, the corporate stated in a information liberate.

“The final touch of this transaction permits us to additional focal point our efforts to develop our international well being portfolio,” Cigna CEO and Chair David Cordani stated within the information liberate.

The deal does not contain Cigna's well being companies in Australia, Hong Kong, Singapore, Europe, the Heart East and North The united states, the corporate stated. Cigna additionally will retain joint ventures in Australia, China and India and its home supplemental well being industry.

Different U.S. insurance coverage corporations have not too long ago shed world belongings.

Centene will dump its $2 billion world well being industry this yr, executives stated in June. In Would possibly, CVS Well being subsidiary Aetna entered into an settlement to promote maximum of its African, Asia-Pacific, Ecu and Heart Jap insurance coverage subsidiaries to Allianz Companions for an undisclosed sum. The insurer up to now dealt its Thailand operations to Allianz Ayudhya Capital Public Corporate. Aetna may be taking into consideration the way forward for its medical health insurance industry in India.