Cigna To Sell Life, Accident& Supplemental Benefits Businesses In 7 Countries To Chubb For $5.75 Bln

(RTTNews) - Cigna Corp. (CI) agreed to sell its life, accident and supplemental benefits businesses in seven countries to Chubb (CB) for $5.75 billion in cash.

The transaction is expected to be completed in 2022.

Cigna said its agreement with Chubb is another step forward in advancing strategic focus on global health services portfolio.

Chubb will acquire Cigna's life, accident and supplemental benefits businesses in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand as well as Cigna's interest in a joint venture in Turkey.

In Korea, Chubb will acquire and plans to continue to operate the business under the LINA Korea (Life Insurance Company of North America Korea) brand.

Cigna said it will continue to operate its robust international health businesses for the globally mobile population, as well as local market services in the Middle East, Europe, Hong Kong, Singapore and its joint ventures in Australia, China and India.

Cigna expects to realize about $5.4 billion of net after-tax proceeds from this transaction. Cigna expects to utilize the proceeds from the transaction primarily for share repurchase, broadly consistent with Cigna's capital deployment framework. The impact of the transaction is expected to be neutral to slightly dilutive to Cigna's earnings per share in 2022.