Insurer Cigna to sell some businesses to Chubb for nearly $5.8 billion

FILE PHOTO: A screen displays the logo fro Cigna Corp. on the floor at the New York Stock Exchange (NYSE) in New York, U.S., July 16, 2019. REUTERS/Brendan McDermid

(Reuters) – Health insurer Cigna Corp said on Thursday it entered into an agreement with insurance firm Chubb Ltd to sell its life, accident, and supplemental benefits businesses in seven countries for $5.75 billion in cash.

As part of the deal, Chubb will acquire the businesses in Hong Kong, Indonesia, South Korea, New Zealand, Taiwan and Thailand, in addition to Cigna’s interest in a joint venture in Turkey, the company said in a statement.

In South Korea, Chubb will buy and plans to continue to operate the business under the LINA Korea brand, Cigna said.

“The addition of Cigna’s business, which is overwhelmingly A&H (accident and health), will rebalance our global portfolio towards this important region,” Chubb Chief Executive Officer Evan Greenberg said.

The deal is not subject to a financing condition and Cigna expects to realize about $5.4 billion of net after-tax proceeds.

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