Cigna Corporation kicked off July by announcing the completion of the sale of its life, accident and supplemental benefits businesses in six markets across Asia Pacific to Chubb in a transaction worth approximately $5.4 billion.
The businesses in Hong Kong, Indonesia, South Korea, New Zealand, Taiwan and Thailand have moved to Chubb. Cigna and Chubb agreed to exclude Cigna’s interest in a joint venture in Turkey from the transaction.
Proceeds from the transaction will be utilized primarily for repurchasing shares, with $3.5 billion used to fund an accelerated share repurchase announced on June 16, 2022. When combined with Cigna’s previously completed share repurchases, the global health services company remains on track to repurchase at least $7 billion of its shares in 2022.
Chubb is a global provider of insurance products covering property and casualty, accident and health, reinsurance and life insurance. It is the largest publicly traded property and casualty insurance company in the world. During the fiscal year ended Dec. 31, 2021, Chubb reported a revenue of $40.96 billion USD, a 13.81% increase from 2020.
During the fiscal year ended Dec. 31, 2021, Cigna reported a revenue of $174.1 billion USD.
According to the LevinPro HC database, this marks the 17th Managed Care transaction of 2022, a 34.6% decrease from the same period in 2021 when 26 deals were announced. The largest Managed Care deal of 2022, excluding the Cigna-Chubb transaction, was Vera Whole Health’s acquisition of Castlight Health for $370 million.
