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 $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 51% 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 $7 billion from about $4 billion in net premiums written, representing about 20% of the company’s total business, excluding China.