Cigna divests life, accident and supplemental
benefits businesses in six Asia-Pacific markets to sharpen focus on its
expanding health portfolio
BLOOMFIELD, Conn., July 1, 2022
/PRNewswire/ -- Cigna Corporation (NYSE: CI), a global health
services company, today announced the completion of the company's
previously announced divestiture of its life, accident and
supplemental benefits businesses in six markets across Asia Pacific to Chubb (NYSE: CB) in an
approximately $5.4 billion
transaction.
"The completion of this transaction allows us to further focus
our efforts to grow our global health portfolio," said David M. Cordani, chairman and chief executive
officer, Cigna Corporation. "We are proud of what our teams across
Asia Pacific have achieved over
the years to improve the well-being and peace of mind of our
customers, and we know they will continue to thrive with
Chubb."
Cigna's life, accident and supplemental benefits businesses in
Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand have now transferred to Chubb. Cigna
and Chubb previously agreed to exclude Cigna's interest in a joint
venture in Turkey from the
transaction.
Cigna remains committed to its robust international health
business, delivering affordable, predictable and simple health
coverage around the world. Cigna will continue to serve the needs
of employers, individuals and intergovernmental organizations while
also providing health protection and health services in many
countries. The transaction does not impact Cigna's international
health businesses in North
America, Europe, the
Middle East, Hong Kong, Singapore and Australia, or Cigna's supplemental health
business in the United States.
Cigna is also retaining its joint ventures in Australia, China and India.
Chubb paid Cigna cash consideration of nearly $5.4 billion and Cigna expects to realize
approximately $5.1 billion of net
after-tax proceeds from the transaction. Proceeds from the
transaction are expected to be utilized primarily for share
repurchase, with $3.5 billion used to
fund an accelerated share repurchase announced on June 16, 2022. When combined with Cigna's
previously completed share repurchases, Cigna remains on track to
repurchase at least $7 billion of its
shares in 2022.
About Cigna
Cigna Corporation (NYSE: CI) is a global health services 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.
CAUTIONARY NOTE REGARDING 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 may include, among others, statements
concerning our projected adjusted income from operations outlook
for 2022 on a consolidated, per share, and segment basis; projected
adjusted revenue outlook for 2022; projected total medical customer
growth over year end 2021; projected medical care and adjusted
SG&A expense ratios; projected consolidated adjusted tax rate;
projected cash flow from operations; future dividends; projected
weighted average shares outstanding; future financial or operating
performance, including our ability to deliver affordable,
personalized and innovative solutions for our customers and
clients, including in light of the challenges presented by the
COVID-19 pandemic; future growth, business strategy, strategic or
operational initiatives; economic, regulatory or competitive
environments, particularly with respect to the pace and extent of
change in these areas and the impact of the developing inflationary
pressures; the ongoing Russia-Ukraine conflict; financing or capital
deployment plans and amounts available for future deployment; our
prospects for growth in the coming years; strategic transactions,
including the sale of our international life, accident and
supplemental benefits businesses; and other statements regarding
Cigna's future beliefs, expectations, plans, intentions, liquidity,
cash flows, financial condition or performance. You may identify
forward-looking statements by the use of words such as "believe,"
"expect," "project," "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: our ability to achieve our strategic and
operational initiatives; our ability to adapt to changes in an
evolving and rapidly changing industry; the scale, scope and
duration of the COVID-19 pandemic and its potential impact on our
business, operating results, cash flows or financial condition; our
ability to compete effectively, differentiate our products and
services from those of our competitors and maintain or increase
market share; price competition, inflation and other pressures that
could compress our margins or result in premiums that are
insufficient to cover the cost of services delivered to our
customers; the potential for actual claims to exceed our estimates
related to expected medical claims; our ability to develop and
maintain satisfactory relationships with physicians, hospitals,
other health service providers and with producers and consultants;
our ability to maintain relationships with one or more key
pharmaceutical manufacturers or if payments made or discounts
provided decline; changes in the pharmacy provider marketplace or
pharmacy networks; changes in drug pricing or industry pricing
benchmarks; political, legal, operational, regulatory, economic and
other risks that could affect our multinational operations; risks
related to strategic transactions and realization of the expected
benefits of such transactions, including with respect to the sale
of our international life, accident and supplemental benefits
businesses, as well as integration or separation difficulties or
underperformance relative to expectations; dependence on success of
relationships with third parties; risk of significant disruption
within our operations or among key suppliers or third parties; our
ability to invest in and properly maintain our information
technology and other business systems; our ability to prevent or
contain effects of a potential cyberattack or other privacy or data
security incident; potential liability in connection with managing
medical practices and operating pharmacies, onsite clinics and
other types of medical facilities; the substantial level of
government regulation over our business and the potential effects
of new laws or regulations or changes in existing laws or
regulations; uncertainties surrounding participation in
government-sponsored programs such as Medicare; the outcome of
litigation, regulatory audits and investigations; compliance with
applicable privacy, security and data laws, regulations and
standards; potential failure of our prevention, detection and
control systems; unfavorable economic and market conditions, stock
market or interest rate declines and risks related to a downgrade
in financial strength ratings of our insurance subsidiaries; the
impact of our significant indebtedness and the potential for
further indebtedness in the future; unfavorable industry, economic
or political conditions; credit risk related to our reinsurers; as
well as more specific risks and uncertainties discussed in our most
recent report on Form 10-K and subsequent reports on Forms 10-K,
10-Q and 8-K available through 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.
Investor Relations Contact
Ralph Giacobbe
1 (860) 787-7968
Ralph.Giacobbe@cigna.com
Media Contact
Justine
Sessions
1 (860) 810-6523
Justine.Sessions@cigna.com
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SOURCE Cigna Corporation