Chubb : to Acquire Cigna’s Personal Accident, Supplemental Health and Life Insurance Business in Seven Asia-Pacific Markets

Chubb to Acquire Cigna's Personal Accident,

Supplemental Health and Life

Insurance Business in Seven

Asia-Pacific Markets

Asia Accident & Health Expansion Opportunity

October 7, 2021

Explanatory Note

This document may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "believe," "anticipate," "estimate," "project," "should," "plan," "expect," "intend," "hope," "feel," "foresee," "will likely result," or "will continue," and similar expressions, may identify forward- looking statements which may include statements related to the acquisition of the businesses noted in this

document, potential post-acquisition performance or otherwise, and reflect our current views with respect to future events, business transactions and business performance. Such statements involve risks and uncertainties that could cause actual results to differ materially from such statements, including without limitation, statements about the anticipated benefits of the proposed transaction, including future financial results; the expected timing of completion of the transaction and our ability to complete it; receipt of any required regulatory approvals and completion of other closing conditions; our ability to integrate the acquired businesses, operations and employees; general competitive, economic, political, insurance and reinsurance business market conditions; and judicial, legislative, regulatory and other governmental developments, as well as management's responses to these factors, and other factors identified in our filings with the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future events, or otherwise.

This document may also contain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most direct comparable GAAP measures and related information are provided in our most recent quarterly earnings press release and financial supplement, which are available on the Investor Relations section of our website at investors.chubb.com, and in the pages in this document.

1

Transaction Terms

	▪ Chubb acquiring 100% of Cigna Life's insurance operations in Korea, Taiwan, Hong
Transaction		Kong, New Zealand, Thailand, Indonesia, and 51% stake of Turkey joint venture
Purchase Price	▪ $5.75 billion in cash
	▪ Financed from cash on hand
Financing	▪ No impact to share repurchase plans
▪ Chubb may ultimately issue up to $1.1 billion of senior notes to fund the purchase
		price
	▪ Customary regulatory approvals for all in-scope markets
Approvals	▪	No shareholder approvals required
Timing	▪ Korea likely to close first in 2022
▪ Other countries expected to close as approvals are received in 2022

2

Compelling Strategic Rationale

	Market	▪ Market-leading accident, supplemental health, and life protection products business across Asia - $3 billion
		premium revenue
	Leading
	▪	Primarily A&H: 81% of new business (2021E), 78% of net earned premium (2020A)
	Franchise
	▪ #1 direct marketing A&H insurer in Korea with leading profitability (21% statutory ROE in 2020)
			▪ Further balances Asia's share of Chubb's global portfolio - from approx. $4 billion to $7 billion in premium,
	Accelerates		representing approx. 20% of Chubb total (ex China)
	▪	Further builds leadership in global A&H, with premium growing from approx. $3.7 billion to $6.1 billion
	Key Chubb		- Asia A&H business approx. $1.0 billion to $3.4 billion
	Strategic
	Objectives	▪	Nearly all Cigna business is written on life licenses, expanding the scale of our rapidly growing Asia life
				business, with premium to increase from approx. $1 billion to $4 billion
			▪	Unique strategic fit (A&H, pan-Asia, direct channel, digital and agency); only existing business of its size and
	Scarcity
	Value			highly complementary to our own business

• We know the business well - predominantly risk-based product portfolio, complements and scales Chubb's existing operations across the region

• Attractive product profile providing supplemental A&H, similar to Chubb's own products: personal

Chubb Knows		accident, accidental death, critical illness, hospitalization, travel, dental, dementia, cancer and other
Business and		specified conditions
Markets Well,	▪	Adds significant presence and capabilities to our own:

Brings New	− Management and technical talent
Capabilities
− Accelerate digitalization: life and non-life, whole company approach, unique for Asia
	− Leader in direct and telemarketing channels, complemented by long-term distribution partnerships
	− Opportunity to provide Chubb non-life consumer products to existing Cigna customers

Growth and

Value

Creation

Opportunity

• Korea: Flagship market, with aging population and affordability gap in public safety net driving increased penetration of A&H products (cancer, dementia, etc.)
• Taiwan, Thailand, Hong Kong, Indonesia: Chubb will be better able to capitalize on market/product opportunity
• Digital: Opportunity across the region is growing and suitable for whole of company, consumer P&C, A&H,

simple life

3

Attractive Financial Returns

	▪ $5.75 billion purchase price, ~9.5x 2022E P/E (stand-alone, before PGAAP adjustments), for
Attractive		predominantly A&H business with stable, attractive returns; includes ~$300 million of estimated
	excess capital embedded in the businesses
Purchase
▪	Purchase price supports attractive financial returns, with low premium-to-embedded value
Price and
Returns	▪	Creates expense efficiencies of $80+ million; improves operating leverage and scale to invest
	▪ Estimated one-time integration costs of ~$100 million
	▪ Underlying economics and value creation are very attractive
Strong Cash		- Strong, steady cash generator with high dividend payout capacity (~70% of operating income)

Generation	- Significant in-force book of business with substantial pipeline profits; expected to generate a
	predictable stream of future earnings and future distributable capital
Attractive	▪ For illustrative purposes we expect core operating income of approximately $450 million1	in 2022

Deal ROE	(assumes hypothetical closing on 1/1/22 and purchase accounting adjustments), producing an
attractive deal ROE, steadily improving over 5 years (11% going to 14%)
	▪ Accretive to operating earnings per share and operating ROE vs. Street estimates

Accretion to Chubb

• Expected to close in 2022
• EPS accretive: + 6% 2023
• ROE accretive: + ~55bps 2023
• TBVPS dilution expected to earn back within ~6 months

Enhances

Chubb

Returns

Profile

• Stable earnings, not P&C cycle exposed
• Strong expected return on investment: 3-year ROI of 15%, IRR of ~20%
• Financed from cash on hand, with no impact to previously stated share repurchases objectives; Chubb may ultimately issue up to $1.1 billion of senior notes

1. Non-GAAP financial measure. Projected core operating income excludes from projected net income the after-tax estimated impact of mark to market gains on acquired private equity portfolio, integration related	4
expenses, and amortization expense of fair value adjustments of acquired invested assets totaling approximately $50M. We believe this presentation enhances the understanding of our projected underlying results related

to this acquisition without the impact of market volatility and nonrecurring integration related expenses.