Cigna has completed the sale of its life, accident and supplemental benefits businesses in six markets across Asia Pacific to Chubb in a $5.4bn deal.
The deal means Cigna’s life, accident and supplemental benefits businesses in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand have now transferred to Chubb.
The firms previously agreed to exclude Cigna’s interest in a joint venture in Turkey from the deal.
The transaction does not affect Cigna’s international health businesses in North America, Europe, the Middle East, Hong Kong, Singapore and Australia, or Cigna’s supplemental health business in the US.
Cigna added it is also retaining its joint ventures in Australia, China and India.
Chubb paid Cigna a cash consideration of nearly $5.4bn and Cigna expects to realise approximately $5.1bn of net after-tax proceeds from the transaction.
Proceeds from the sale are expected to be used primarily for share repurchase, with $3.5bn used to fund an accelerated share repurchase announced on 16 June.
When combined with Cigna’s previously completed share repurchases, the insurer said it remained on track to repurchase at least $7bn of its shares in 2022.
David Cordani, chairman and chief executive officer of Cigna, said: “The completion of this transaction allows us to further focus our efforts to grow our global health portfolio.
“We are proud of what our teams across Asia Pacific have achieved over the years to improve the wellbeing and peace of mind of our customers, and we know they will continue to thrive with Chubb.”