Benzinga | Oct 8, 2021 09:31AM EDT

Cigna Offloads Life Insurance Business To Chubb In $5.75B Deal

* Chubb Limited (NYSE:CB) is buying the Asia Pacific and Turkey businesses of rival insurer Cigna Corp (NYSE:CI) for $5.75 billion in cash. The transaction is expected to be completed in 2022.

* Chubb said it would acquire Cigna's Accident & Health and life business in South Korea, Taiwan, New Zealand, Thailand, Hong Kong, and Indonesia and Cigna's 51% stake in a joint venture in Turkey.

* Chubb said the acquisition would 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.

* Cigna will focus on its global health services portfolio and local market services in the Middle East, Europe, Hong Kong, Singapore, and its joint ventures in Australia, China, and India.

* The transaction is expected to be immediately accretive to Chubb's core operating EPS and return on equity for full-year 2023 by 6% and approximately 55 basis points, respectively.

* Chubb estimates that it will realize over $80 million of expense savings.

* As of June 30, Chubb held $1.8 billion in cash and $121.4 billion in investments.

* Price Action: CI stock is up 1.58% at $207.95, and CB stock traded 0.76% higher at $179.68 during the premarket session on the last check Friday.

* Photo by Capri23auto from Pixabay