New York Life is in Talks to Buy Cigna's Non-Health Benefits Unit -- Sources
December 10 2019 - 1:54PM
Dow Jones News
By Leslie Scism, Dana Cimilluca and Anna W. Mathews
New York Life Insurance Co. is negotiating with Cigna Corp. to
acquire a unit that sells nonmedical insurance products to
employers, a deal that could be valued at as much as $6 billion,
according to people familiar with the matter.
Cigna in recent months has been seeking a buyer for a business
that sells life, accident and disability-income insurance to
employers for their workers, in a move that would help the health
giant focus on its core business, according to the people.
Potential buyers including MetLife Inc. and Sun Life Financial
Inc. have been circling the company too, but New York Life recently
emerged as the leading contender, the people said. The two sides
are aiming to reach a pact by year-end. There is no guarantee Cigna
and New York Life will manage to do so; and if they don't, Cigna
could turn again to one of the erstwhile bidders.
New York Life is one of the nation's oldest and financially
strongest life insurers. It is owned by its policyholders, one of
the last of a once-large number of so-called mutuals, and doesn't
trade publicly. Based in New York, the 174-year-old company is well
known for its fleet of career agents who sell traditional life
insurance to households across the U.S.
Like other U.S. life insurers, New York Life is looking for ways
to expand in a competitive marketplace as low interest rates make
life insurance and retirement-income annuities -- its core products
-- less attractive to some consumers.
Write to Leslie Scism at leslie.scism@wsj.com and Dana Cimilluca
at dana.cimilluca@wsj.com
(END) Dow Jones Newswires
December 10, 2019 13:39 ET (18:39 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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