Cigna business sold
In a surprise move Cigna has announced that it has sold it life business to another large US insurer.
Friday, October 8th 2021, 3:59PM 
1 Comment
Cigna Corporation has sold a number of businesses, including its New Zealand life operations, to Chubb for US$5.75 billion.
Cigna New Zealand chief executive Gail Costa said, in a statement; “We’re proud to have built and developed the fastest growing life insurance business in New Zealand."
"The hard work and dedication of our local team is remarkable and Chubb’s desire to acquire the business reflects this success,” she says.
Cigna bought the OnePath life business from ANZ in 2018. It paid $700 million for the business which was regarded by some as a high price.
That sale included a 20-year strategic alliance for Cigna to provide insurance solutions for ANZ bank customers.
Today's announcement includes "our very attractive life insurance business in New Zealand as well as businesses in Hong Kong, Indonesia, Korea, Taiwan, Thailand and Turkey," Cigna said.
Chubb are one of the world’s largest publicly traded insurance companies. They have operations in 54 countries and territories, employ 31,000 people and have net assets of almost US$200 billion. They are one of the top 200 companies in the world by market capitalisation.
"Importantly, Chubb are looking forward to playing a leading role in the future of the global life insurance industry. They see New Zealand as a highly desirable market and are excited about our growth potential.
"Chubb view the purchase of our business as highly complementary to their global business as it now adds life insurance to their fire and general presence in New Zealand.
Costa says: "David (Haak), the leadership team and I firmly believe Chubb are committed and well positioned to continue developing our offering. We have a number of initiatives in progress, which we’ll share more about with you in the coming months."
This is an exciting opportunity for us, given Chubb’s size, scale and desire to invest in our business so that we can continue to innovate and expand our product and service offerings.
"I’d like to use today’s announcement to reinforce the importance of our long-term partnership, our commitment to third party distribution and to growing our businesses together," Costa said.
Cigna's Head Office says the agreement "will sharpen Cigna’s focus on the growth path for its rapidly expanding global health portfolio."
The transaction is expected to be completed in 2022, subject to applicable regulatory approvals and customary closing conditions.
“Our agreement with Chubb is another step forward in advancing our strategic focus on our global health services portfolio,” said David M. Cordani, president and chief executive officer, Cigna Corporation. “We are proud of our success in building these life, accident and supplemental benefits businesses in Asia Pacific and improving the well-being and sense of security of our customers throughout the region.”
Cigna and Chubb are committed to ensuring a smooth transition for customers, partners, clients and employees throughout this period.
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It was 2018, not 2008 that Cigna paid plenty for the OnePath bus.
And they said the same things in the usual curated pithy press statements then (about Cigna as buyer) as they are now saying - less than 3 years later - about Chubb.
I've been in the picture from Club to Chubb and everything in between.
All I would hope for is that the clients, like last time, notice very little difference. And that the product continues to provide the very consistency and certainty that are the foundations of this industry - things that swapping owners more often than governments risk being undermined.