Insurance giant Chubb has signed a definitive agreement to acquire the life and non-life insurance businesses of Cigna for $5.75bn in cash.

These businesses house personal accident, supplemental health, and life insurance operations of Cigna in seven Asia-Pacific markets.

Chubb noted that the acquisition is part of its strategy to expand in the Asia-Pacific region and strengthens its accident, health, and life insurance business.

Under the agreement, Chubb will acquire Cigna’s operations in Korea, Taiwan, New Zealand, Thailand, Hong Kong, and Indonesia and its stake in a joint venture in Turkey.

Chubb chairman and CEO Evan Greenberg said: “These businesses produce very stable, high-quality earnings. The digital opportunity across the region is large and untapped and suitable for our direct-marketed A&H products and our consumer P&C and simple life insurance products.

“Broadly across the region, Chubb will be better able to capitalize on market and product opportunities with a strong brand, complementary direct marketing skills and the cross-selling of Chubb’s non-life product to life customers.”

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Chubb stated that businesses being acquired generated approximately $3bn in net premiums written in 2020.

Additionally, the acquisition is expected to increase Chubb’s Asia-Pacific portfolio from $4bn to $7bn in premium, which represents 20% of the company (excluding China).

Notably, 80% of the premiums from the business to be acquired are from supplemental A&H products, which will see Chubb’s global supplemental A&H premiums grow from $3.7bn to $6.1bn.

Furthermore, Chubb’s Asia life company premiums will increase from approximately $1bn to $4bn.

Cigna president and CEO David Cordani said: “Our agreement with Chubb is another step forward in advancing our strategic focus on our global health services portfolio.

“We are proud of our success in building these accident, supplemental and life benefits businesses in the Asia Pacific and improving the well-being and sense of security of our customers throughout the region.”