Chubb to Acquire Cigna's $3 Billion Premium Revenue Personal Accident, Supplemental Health and Life Insurance Business in Seven Asia-Pacific Markets for $5.75 Billion
The operations to be acquired include Cigna's A&H and life business in
This highly complementary transaction advances Chubb's strategy to expand its presence in the
"The addition of Cigna's business, which is overwhelmingly A&H, will further balance our global portfolio toward this important region," said
"Our agreement with Chubb is another step forward in advancing our strategic focus on our global health services portfolio," said
Attractive Shareholder Returns
The underlying economics and value creation of the transaction are very attractive. Upon close, the transaction is expected to be immediately accretive to Chubb's core operating earnings per share and return on equity (ROE) for full-year 2023 by 6% and approximately 55 basis points, respectively. Deal ROE goes from 11% to 14% over five years after PGAAP adjustments. The company also expects a strong return on investment (ROI), with a three-year ROI of 15% and an IRR of approximately 20%. The tangible book value per share dillution is expected to earn back within six months. There is strong, steady cash generation with high dividend payout capacity of approximately 70% of operating income. The company will maintain its strong balance sheet and does not expect the transaction to impact its current AA investment grade rating or its capital management commitments, including its current share repurchase program and annual dividend.
Financing, Efficiencies, Closing and Approvals
The
Please refer to the presentation titled "Chubb to Acquire Cigna's Personal Accident, Supplemental Health and Life Insurance Business in Seven Asia-Pacific Markets," which is posted on the company's investor relations website, investors.chubb.com, in the Events & Presentations section for further information on the transaction.
About Chubb
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company
Cautionary Statement Regarding Forward-Looking Statements:
Forward-looking statements made in this press release, such as those related to the acquisition of the businesses noted above, potential post-acquisition performance or otherwise, reflect our current views with respect to future events, business transactions and business performance, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could cause actual results to differ materially from such statements, including without limitation, statements about the anticipated benefits of the proposed transaction, including future financial results; the expected timing of completion of the transaction and our ability to complete it; receipt of any required regulatory approvals and completion of other closing conditions; our ability to integrate the acquired businesses, operations and employees; general competitive, economic, political, insurance and reinsurance business market conditions; and judicial, legislative, regulatory and other governmental developments, as well as management's responses to these factors, and other factors identified in our filings with the
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
View original content to download multimedia:https://www.prnewswire.com/news-releases/chubb-to-acquire-cignas-3-billion-premium-revenue-personal-accident-supplemental-health-and-life-insurance-business-in-seven-asia-pacific-markets-for-5-75-billion-301395853.html
SOURCE
Best’s Commentary: Thailand Insurers Offer Innovative Vaccine Allergy Product, But Underwriting Risks Remain
Cigna Reaches Agreement With Chubb To Divest Its Life, Accident And Supplemental Benefits Businesses In Seven Countries
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News