Chubb wraps up $5.4bn acquisition of Cigna Asia Pacific business
Property/casualty insurer Chubb has “significantly” expanded its presence in the Asia Pacific region following the completion of its strategic acquisition of Cigna’s accident and health (A&H) and life business in six markets for $5.36 billion.
The deal, which includes businesses in Korea, Taiwan, New Zealand, Thailand, Hong Kong and Indonesia, increases the size of Chubb’s global A&H writings to approximately $6 billion in premium, up from $3.7 billion, while the company's life insurance segment becomes a $5.4 billion business.
Overall, the Asia Pacific share of Chubb’s global portfolio grows to approximately $7 billion in premium from $4 billion, representing about 18% of the total company premiums, with approximately 95% of the acquired business contributing to Chubb’s Life Insurance segment and the remainder to its Overseas General Insurance segment.
Jack Chang (pictured) has been appointed to lead the company's combined life insurance operations in Taiwan, Gail Costa in New Zealand, and Jee Eun (Geannie) Cho to lead LINA in Korea.
Upon completion of the integration, the combined businesses will operate under the Chubb brand in all markets except Korea.
Evan Greenberg, chairman and CEO of Chubb, said: "Cigna's business, which is approximately 80% A&H, adds significantly to our business in Asia. The Asia-Pacific region offers great potential for long-term growth and wealth creation. The Cigna businesses have favourable underwriting margins, produce high-quality earnings, and are not exposed to the P&C cycle.
" Chubb is so well positioned to capitalise on market and product opportunities, including the cross-selling of Chubb’s non-life products to life customers, with a strong brand, technology, and complementary direct marketing skills and partnerships.
"At the same time, I am also pleased to welcome nearly 3,000 new colleagues to Chubb. Together, the leadership and talented professionals of Chubb and Cigna will enable us to provide greater value to our customers, distribution partners, and shareholders."
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