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By Dave Sebastian
New York Life Insurance Co. said Wednesday has agreed to buy Cigna Corp.'s (CI) life and disability insurance business for $6.3 billion in cash.
Cigna said the transaction would likely be neutral to its per-share earnings in 2020 and could add to its earnings in 2021.
Cigna said it expects to realize about $5.3 billion of net after-tax proceeds from the transaction and to use them for share repurchases and debt repayment in 2020. Cigna's board has increased the company's share repurchase authority by $3 billion to $4 billion, it said.
The transaction is expected to close in the third quarter of 2020.
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(END) Dow Jones Newswires
December 18, 2019 08:29 ET (13:29 GMT)
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