Cigna Corporation confirmed the completion of a $5.4 billion transaction with Chubb to grant access to its life, accident and supplemental benefits businesses in six markets across Asia Pacific, according to Cision PR Newswire.
Cigna is a global health services company, and Chubb is the world's largest publicly traded property and casualty insurance company.
"The completion of this transaction allows us to further focus our efforts to grow our global health portfolio," Chairman and CEO of Cigna David Cordani told Cision PR Newswire. "We are proud of what our teams across Asia Pacific have achieved over the years to improve the well-being and peace of mind of our customers, and we know they will continue to thrive with Chubb."
The agreement now brings Cigna’s life, accident and supplemental benefit offerings in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand to Chubb.
“Cigna remains committed to its robust international health business, delivering affordable, predictable and simple health coverage around the world,” Cision PR Newswire said. “Cigna will continue to serve the needs of employers, individuals and intergovernmental organizations while also providing health protection and health services in many countries.”
Cigna hopes to walk away from the transaction with $5.1 billion of net profit after tax proceedings.The proceeds extracted from the transaction are expected to be used for share repurchase. A sum of $3.5 billion was confirmed to be allocated to the cause on June 16.
“When combined with Cigna's previously completed share repurchases, Cigna remains on track to repurchase at least $7 billion of its shares in 2022,” Cision PR Newswire said.
Both parties agreed to exclude Cigna’s involvement in a Turkey-based joint venture from its considerations. The collaboration will also not involve Cigna’s existing global health operations based in North America, Europe, the Middle East, Hong Kong, Singapore and Australia, or Cigna's supplemental health business in the U.S. Under the terms of the deal, Cigna will continue overseeing its joint ventures in Australia, China and India.