Cigna Corp is selling its group life and disability insurance business for US$6.3 billion (NZ$9.84 billion) to New York Life. Completion of the sale is expected to be in the third quarter subject to regulatory approvals.
A spokesperson for Cigna in New Zealand says: “New York Life’s acquisition of Cigna Corp’s subsidiary Cigna Group Insurance will not impact New Zealand customers or advisers.
“It’s a US-market focused announcement in the group health insurance space. In New Zealand, Cigna is focused on providing life insurance, funeral insurance, income protection insurance, as well as trauma insurance products and services.
“We remain committed to looking out for our customers and partner advisers.”
New York Life’s acquisition of Cigna Corp’s subsidiary Cigna Group Insurance will not impact New Zealand customers or Advisers.
In a Cigna press release announcing the sale New York Life chairman and CEO Ted Mathas says he is committed to making the transition as seamless as possible for Cigna’s employees and clients.
William Smith, president of US-based Cigna Group Insurance, says: “New York Life is a highly-respected brand in our industry and has the capital, commitment, and trust to help us grow and thrive going forward.”
Cigna Corp expects to net US$5.3 billion after-tax from the sale and plans to use the cash for share repurchase and repayment of debt.
New York Life Insurance Company is a Fortune 100 company founded in 1845. It is the largest mutual life insurance company in the United States.