SINGAPORE, Oct 7 (Reuters) - U.S. insurer Chubb Ltd
has agreed to buy health insurer Cigna Corp's life,
accident, and supplemental benefits businesses in Asia Pacific
and Turkey for $5.75 billion in cash, both insurers said,
marking the latest consolidation in Asia's insurance sector.
In a statement issued late on Thursday, Chubb said it will
acquire Cigna's A&H (accident and health) and life business in
South Korea, Taiwan, New Zealand, Thailand, Hong Kong and
Indonesia, in addition to Cigna's 51% stake in a joint venture
"The addition of Cigna's business, which is overwhelmingly
A&H (accident and health), will rebalance our global portfolio
towards this important region," Chubb CEO Evan Greenberg said.
Chubb said the acquisition will boost Asia's share of its
global portfolio to $7 billion from about $4 billion in net
premiums written, representing about 20% of the company's total
business, excluding China.
The transaction comes at a time of a shakeup in the
insurance sector in key markets.
In August, HSBC Holdings agreed to acquire https://www.reuters.com/world/asia-pacific/hsbc-buy-axas-insurance-assets-singapore-575-mln-2021-08-16
French insurer Axa's Singapore assets for $575
Last year, Singapore Life, an upstart insurer backed by
investors including buyout group TPG, acquired the Singapore
business of British insurer Aviva https://www.reuters.com/article/us-aviva-gb-divestiture-idUSKBN26225B<AV.L
> for nearly $2 billion, as it expands in Southeast Asia.
Cigna said Chubb will acquire Cigna's business in South
Korea and continue to operate it under the LINA Korea brand.
Cigna will focus on its global health services portfolio, as
well as local market services in the Middle East, Europe, Hong
Kong, Singapore and its joint ventures in Australia, China and
The deal is not subject to a financing condition and Cigna
expects to realize about $5.4 billion of net after-tax proceeds.
The transaction, subject to regulatory approvals, is
expected to be completed in 2022.
(Reporting by Anshuman Daga in Singapore and Bhargav Acharya in
Bengaluru; Editing by Uttaresh.V & Shri Navaratnam)