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In a constant push to focus on its health insurance business, CIGNA is selling its life, accident and supplementary profit businesses to Swiss insurance company CHubB in seven countries.
Regulatory approval pending, companies are expected to close a $ 5.75 billion deal in 2022.
Once completed, Chub Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand will acquire Signa’s life, accident and complementary profit businesses. It is also gaining interest in a joint venture in Türkiye.
According to the announcement, Chub is paying $ 5.75 billion as a cash idea, which will give CIGNA an estimated $ 5.4 billion after taxes. The company said it is planning to use assets mainly for shares recurrent.
What is the effect
CIGIGNA says that the partition will allow it to focus better on its health services businesses.
David Cordney, president and CEO of CIGNA Corporation, said in a statement, “Our agreement with CHUBB is another step to further our strategic attention on our global healthcare portfolio.” “We are proud of our success in the creation of these lives, accidents and complementary benefits businesses in the Asia Pacific and improve the good of the safety of our customers throughout the region.”
For example, the insurer will continue to operate local market services in the Middle East, Europe, Hong Kong and Singapore along with its global health businesses and its joint enterprises in Australia, China and India.
According to CIGNA’s plan to focus on its health businesses, earlier this year it sold its group life, accident and disability insurance business to New York life for $ 6.3 billion.
It also recently launched a Rebrand Everrenth of its healthcare portfolio to consolidate a range of its health services. In February, Evernth added in-house telehealth capabilities through the acquisition of MDLIV.
Huge trend
Out of its recent commercial settlements, CIGNA is working on expanding its health coverage.
It is moving ahead in three new states – Georgia, Mississippi and Pennsylvania – as well as in the new counties in Arizona, Florida and Virginia on the exchanges of the Affordable Care Act for the 2022 scheme year. CIGNA will reach 93 new counties, all told.
Additionally, CIGNA is expanding its Medicare Advantage Plan in 2022. It is growing in 108 new counties and three new states – Connecticut, Oregon and Washington – which will increase its geographical appearance by about 30%.
On record
Chub President and CEO Ivan Greenberg said in a statement, “In addition to Signa’s business, which is another H, which will re -order our global portfolio towards this important area.” “We have long praised and respect in Asia, including our talented people, innovative products, technical and analytical abilities, distribution and management.”
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