Cigna completed a $5.36 billion sale of its life, accident and supplemental benefits businesses in seven countries to Chubb, the insurance company announced Friday.
Cigna agreed to divest its accident, health and life business in Hong Kong, Indonesia, New Zealand, South Korea, Taiwan and Thailand in October. These assets will boost Chubb’s premium revenues by $3 billion, the property and casualty, accident and health, reinsurance, and life insurance company said in a news release.
Cigna expects the sale to generate approximately $5.1 billion in after-tax proceeds, which will be used primarily for share repurchases, the company said in a news release.
“The completion of this transaction allows us to further focus our efforts to grow our global health portfolio,” Cigna CEO and Chair David Cordani said in the news release.
The deal doesn’t involve Cigna’s health businesses in Australia, Hong Kong, Singapore, Europe, the Middle East and North America, the company said. Cigna also will retain joint ventures in Australia, China and India and its domestic supplemental health business.
Other U.S. insurance companies have recently shed international assets.
Centene will unload its $2 billion international health business this year, executives said in June. In May, CVS Health subsidiary Aetna entered into an agreement to sell most of its African, Asia-Pacific, European and Middle Eastern insurance subsidiaries to Allianz Partners for an undisclosed sum. The insurer previously dealt its Thailand operations to Allianz Ayudhya Capital Public Company. Aetna is also considering the future of its medical insurance business in India.