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Cigna divested its life, accident, and benefits supplement business in Asia, selling it to Chubb in a deal estimated to be around $5.4 billion.

Cigna Chairman and CEO David M. Cordani said the deal allows the insurer to focus on growing its global health portfolio.

The organization’s work on life, accident and supplementary benefits in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand has now been transferred to CHEP. Cigna and Chubb previously agreed to exclude Cigna’s interest in a joint venture in Turkey from the deal.

The insurer expects to generate approximately $5.1 billion in net after-tax revenue from the transaction. The proceeds are expected to be used primarily for share buybacks, with $3.5 billion used to fund an accelerated share buyback announced on June 16.

The company said that when combined with its previously completed Cigna share buybacks, Cigna remains on track to buy back at least $7 billion of its stock in 2022.

What is the effect?

The deal was originally floated in 2021, with Cordani saying at the time that Cigna was “proud of our success in building this life-benefit, accident and complementary business in the Asia Pacific region and improving the well-being and sense of security of our customers throughout the region.”

The insurance company will continue to operate its global health business as well as domestic market services in the Middle East, Europe, Hong Kong and Singapore, and joint ventures in Australia, China and India.

In line with Cigna’s plan to focus on its healthcare business, earlier in 2021 it sold its group life, accident and disability business to New York Life for $6.3 billion.

It also recently launched Evernorth, a new brand for its health services portfolio, to consolidate its portfolio of healthcare businesses. In February, Evernorth added in-house telehealth capabilities with its acquisition of MDLive.

Big trend

Outside of recent commercial actions, Cigna is expanding its health coverage.

It moved to three new states—Georgia, Mississippi, and Pennsylvania—as well as to new counties in Arizona, Florida and Virginia in the 2022 Affordable Care Act exchanges. Cigna will reach 93 new counties, all said.

In addition, Cigna expanded its Medicare Advantage plans this year. It’s growing to 108 new counties and three new states — Connecticut, Oregon, and Washington — which will increase its geographic presence by about 30%.

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