Cigna has completed the sale of its international insurance businesses in six Asia Pacific markets to the world's largest property and casualty insurer, Chubb, in a $5.4 billion deal, with a majority of the proceeds going toward a stock buyback.
Cigna's life, accident and supplemental benefits businesses in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand have now transferred to Chubb, according to a July 1 news release from the payer. The companies previously agreed to exclude Cigna's interest in a joint venture in Turkey from the transaction. The deal was first announced in October 2021.
The payer said $3.5 billion of the proceeds will be used to fund an accelerated share repurchase.
Cigna said the transaction does not impact its international health businesses in North America, Europe, the Middle East, Hong Kong, Singapore and Australia. It also will not impact Cigna's supplemental health business in the U.S.
The payer is retaining its joint ventures in Australia, China and India, according to the news release.