Chubb’s $5.75 Billion Acquisition of Cigna’s Life, Accident and Supplemental Benefits Businesses

Wachtell, Lipton, Rosen & Katz acted as lead legal counsel, and Baker McKenzie, as lead regulatory counsel on the transaction. Sullivan & Cromwell represented Chubb.

Cigna Corporation (NYSE:CI), a global health service company, announced a definitive agreement with Chubb (NYSE: CB) to sell its life, accident and supplemental benefits businesses in seven countries for $5.75 billion dollars.  Upon completion of the transaction, Chubb will acquire Cigna’s life, accident and supplemental benefits businesses in Hong Kong, Indonesia, Korea, New Zealand, Taiwan and Thailand as well as Cigna’s interest in a joint venture in Turkey.

This highly complementary transaction advances Chubb’s strategy to expand its presence in the Asia-Pacific region, a long-term growth area for the company, and adds to an already sizable A&H business while expanding the company’s Asia-based life insurance presence.  Upon completion of the transaction, Asia-Pacific’s share of Chubb’s global portfolio will increase from approximately $4 billion to $7 billion in premium and represent approximately 20% of the company (excluding China).  Over 80% of the premiums from the business to be acquired are from supplemental A&H products, further building Chubb’s leadership in global supplemental A&H, with premiums growing from $3.7 billion to $6.1 billion.  Together, A&H and life will comprise 21% of the company’s overall premium revenue compared to 14% today. 

Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients.

Cigna, a global health service company, offers health, pharmacy, dental, supplemental insurance and Medicare plans to individuals, families, and businesses. With more than 180 million customer and patient relationships in more than 30 countries and jurisdictions, they are able to harness actionable insights that address whole-person health and drive better health outcomes.

The Wachtell Lipton’s team advising Cigna was led by partners David E. Shapiro (Picture) and Jenna E. Levine and included Alon B. Harish, Associate, Kailey B. Flanagan, Associate, J. Heath Mayo, Associate (Corporate), Ilene Knable Gotts, Partner (Antitrust), Jeannemarie O’Brien, Partner, Amanda K. Toy, Associate, Brian Diliberto, Associate (Executive Compensation and Benefits), Emily D. Johnson, Partner, Margaret M. Guidotti, Associate, Alexander M. Miles, Law Clerk (Finance), Tijana J. Dvornic, Partner, and Swift S.O. Edgar, Associate (Tax).

The S&C team advising Chubb includes Andrew Gerlach, Rodge Cohen, Joonkeun Yoo (Hong Kong) and Olivia Xie. Marc Treviño and Kristin Giglia Deliso are advising on executive compensation matters. David Spitzer is advising on tax matters. Mehdi Ansari is advising on intellectual property matters. Michael Rosenthal (Brussels) and Joseph Matelis are advising on competition matters.

Involved fees earner: Kailey Flanagan – Skadden Arps Slate Meager & Flom; Mehdi Ansari – Sullivan & Cromwell; Rodgin Cohen – Sullivan & Cromwell; Kristin Giglia Deliso – Sullivan & Cromwell; Andrew Gerlach – Sullivan & Cromwell; Joseph Matelis – Sullivan & Cromwell; Michael Rosenthal – Sullivan & Cromwell; David Spitzer – Sullivan & Cromwell; Marc Trevino – Sullivan & Cromwell; Olivia Xie – Sullivan & Cromwell; Brian Diliberto – Wachtell, Lipton, Rosen & Katz; Tijana Dvornic – Wachtell, Lipton, Rosen & Katz; Swift Edgar – Wachtell, Lipton, Rosen & Katz; Margaret Guidotti – Wachtell, Lipton, Rosen & Katz; Alon Harish – Wachtell, Lipton, Rosen & Katz; Emily Johnson – Wachtell, Lipton, Rosen & Katz; Ilene Knable Gotts – Wachtell, Lipton, Rosen & Katz; Jenna Levine – Wachtell, Lipton, Rosen & Katz; Heath Mayo – Wachtell, Lipton, Rosen & Katz; Jeannemarie O’Brien – Wachtell, Lipton, Rosen & Katz; David Shapiro – Wachtell, Lipton, Rosen & Katz; Amanda Toy – Wachtell, Lipton, Rosen & Katz;

Law Firms: Skadden Arps Slate Meager & Flom; Sullivan & Cromwell; Wachtell, Lipton, Rosen & Katz;

Clients: Chubb Limited; Cigna Corporation;