Cigna’s Acquisition of Vanbreda International Gives It Global Lead in Expatriate Customers

Cigna has acquired Vanbreda International, based in Antwerp, Belgium. Cigna said the acquisition extends its global reach in expatriate benefits and accelerates its global growth strategy.

Vanbreda International, a private company, specializes in worldwide medical insurance and employee benefits for intergovernmental and nongovernmental organizations, including international humanitarian operations, and for corporate clients. Together, Cigna and Vanbreda care for more than 700,000 expatriate customers worldwide.

Gloria Barone, a Cigna spokeswoman, said its acquisition more than doubled the number of expatriate customers from about 330,000. She added that the intergovernmental and nongovernmental businesses are new for Cigna (NYSE: CI). "This is a really big investment for the future," she said. "Now with Vanbreda, we have literally more expatriate customers than any other company."

The acquisition demonstrates Cigna's growth strategy "to go deep into existing segments, to go global -- seeking worldwide opportunities to diversify our earnings stream, build on strengths and serve customer needs -- and to go individual, as Vanbreda International has a growing portfolio of international individual business," William L. Atwell, president of Cigna International, said in a statement.

Atwell said there is "little overlap" between the two companies' businesses. Vanbreda's strong presence in Europe complements Cigna's position in providing expatriate benefits primarily to corporate clients in North America, but also in Europe and Asia, he said.

Barone said Vanbreda International will continue to operate as an independent business under its own brand because the Vanbreda name is widely recognized in Europe and has a reputation for strong customer service. Chief Executive Officer Rudi Bertels and Chief Operating Officer Wouter Reggers will continue in their existing capacities.

Vanbreda's intergovernmental and nongovernmental groups include the United Nations, the World Bank, Unicef, the European Central Bank, Red Cross, World Wildlife Fund, Oxfam International and Save the Children, according to Barone.

UBS Investment Bank acted as sole financial adviser for Cigna on the transaction, the financial details of which were not disclosed.

Late in the afternoon on Aug. 31, Cigna was trading at $32.22 a share, up 0.97% from the previous close. The majority of Cigna's rated subsidiaries have current Best's Financial Strength Ratings of A- (Excellent).

(By Ron Panko, senior associate editor, Best's Review: Ronald.Panko@ambest.com)