BLOOMFIELD, Conn., Oct. 7, 2021 /PRNewswire/ -- 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.
"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®, including links
to follow us on Facebook or Twitter, visit www.cigna.com.
NOTES:
- 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.
- 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
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