Cigna Reaches Agreement With Chubb To Divest Its Life, Accident And Supplemental Benefits Businesses In Seven Countries
PR92187
BLOOMFIELD, Conn., Oct. 8, 2021 /PRNewswire=KYODO JBN/ --
-- Agreement will sharpen Cigna's focus on the growth path for its rapidly
expanding global health portfolio
Cigna Corporation (NYSE:CI), a global health service company, today announced a
definitive agreement with Chubb (NYSE: CB) to sell its life, accident and
supplemental benefits businesses in seven countries for $5.75 billion dollars.
The transaction is expected to be completed in 2022, subject to applicable
regulatory approvals and customary closing conditions.
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"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."
Upon completion of the transaction, Chubb will acquire Cigna's life, accident
and supplemental benefits businesses in Hong Kong, Indonesia, Korea, New
Zealand, Taiwan and Thailand as well as Cigna's interest in a joint venture in
Turkey. In Korea, Chubb will acquire and plans to continue to operate the
business under the LINA Korea (Life Insurance Company of North America Korea)
brand.
Cigna will continue to operate its robust international health businesses for
the globally mobile population, as well as local market services in the Middle
East, Europe, Hong Kong, Singapore and its joint ventures in Australia, China
and India.
Chubb will pay Cigna a cash consideration of $5.75 billion. The transaction is
not subject to a financing condition and Cigna expects to realize approximately
$5.4 billion of net after-tax proceeds from this transaction. Cigna expects to
utilize the proceeds from the transaction primarily for share repurchase,
broadly consistent with Cigna's capital deployment framework. The impact of the
transaction is expected to be neutral to slightly dilutive to Cigna's earnings
per share in 2022.
"The addition of Cigna's business, which is overwhelmingly A&H, will rebalance
our global portfolio toward this important region," said Evan G. Greenberg,
chairman and chief executive officer, Chubb. "We have long admired and
respected Cigna's business in Asia including its talented people, innovative
products, technical and analytical capabilities, distribution and management."
Cigna and Chubb are committed to ensuring a smooth transition for customers,
partners, clients and employees throughout this period.
Wachtell, Lipton, Rosen & Katz is serving as lead legal counsel, and Baker
McKenzie is serving as lead regulatory counsel on the transaction.
About Cigna
Cigna Corporation (NYSE: CI) is a global health service company dedicated to
improving the health, well-being and peace of mind of those we serve. Cigna
delivers choice, predictability, affordability and access to quality care
through integrated capabilities and connected, personalized solutions that
advance whole person health. All products and services are provided exclusively
by or through operating subsidiaries of Cigna Corporation, including Cigna
Health and Life Insurance Company, Connecticut General Life Insurance Company,
Evernorth companies or their affiliates, and Express Scripts companies or their
affiliates. Such products and services include an integrated suite of health
services, such as medical, dental, behavioral health, pharmacy, vision,
supplemental benefits, and other related products.
Cigna maintains sales capability in over 30 countries and jurisdictions, and
has over 190 million customer relationships throughout the world. To learn more
about Cigna(R), including links to follow us on Facebook or Twitter, visit
www.cigna.com.
NOTES:
1. The timing and actual number of shares repurchased will depend on a
variety of factors, including price, general business and market
conditions, and alternate uses of capital. The share repurchase
program may be effected through open market purchases or privately
negotiated transactions in compliance with Rule 10b-18 under the
Securities Exchange Act of 1934, as amended, including through Rule
10b5-1 trading plans. The program may be suspended or discontinued at
any time.
2. Earnings per share means adjusted income from operations on a fully
diluted basis. At the consolidated level, adjusted income from
operations is not determined in accordance with accounting principles
generally accepted in the United States ("GAAP") and should not be
viewed as a substitute for the most directly comparable GAAP measure,
shareholders' net income. Adjusted income (loss) from operations is
defined as shareholders' net income (or income before taxes for the
segment metric) excluding net realized investment results,
amortization of acquired intangible assets and special items. Cigna's
share of certain realized investment results of its joint ventures
reported in the International Markets segment using the equity method
of accounting are also excluded. Adjusted income (loss) from
operations is measured on an after-tax basis for consolidated results.
CIGNA FORWARD LOOKING STATEMENTS
This press release, and oral statements made in connection with this release,
may contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are based
on Cigna's current expectations and projections about future trends, events and
uncertainties. These statements are not historical facts. Forward-looking
statements include statements relating to the impact of the sale of Cigna's
life, accident and supplemental benefits businesses, including, without
limitation, the impact of the transaction on Cigna's projected earnings per
share, Cigna's share repurchase other capital deployment plans, the projected
closing date for the transaction and the projected impact of the transaction on
the parties. You may identify forward-looking statements by the use of words
such as "believe," "expect," "plan," "intend," "anticipate," "estimate,"
"predict," "potential," "may," "should," "will" or other words or expressions
of similar meaning, although not all forward-looking statements contain such
terms.
Forward-looking statements are subject to risks and uncertainties, both known
and unknown, that could cause actual results to differ materially from those
expressed or implied in forward-looking statements. Such risks and
uncertainties include, but are not limited to: receipt of the regulatory
approvals necessary for the transaction; the satisfaction or waiver of closing
conditions for the transaction; effects on the business as a result of
uncertainty surrounding the proposed transaction; as well as more specific
risks and uncertainties discussed in Cigna's most recent report on Form 10-K
and subsequent reports on Forms 10-Q and 8-K available on the Investor
Relations section of www.cigna.com. You should not place undue reliance on
forward-looking statements, which speak only as of the date they are made, are
not guarantees of future performance or results, and are subject to risks,
uncertainties and assumptions that are difficult to predict or quantify. Cigna
undertakes no obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise, except as
may be required by law.
Cigna Contacts:
Investor Relations
Alexis Jones
Alexis.Jones@cigna.com
Media
Ellie Polack
Elinor.Polack@cigna.com
SOURCE Cigna Corporation
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