Reportedly, New York Life is set to acquire Cigna’s life and disability business in a definitive agreement for $6.3B. The deal is expected to be completed in Q3 2020 and is subject to regulatory approvals and conditions. Cigna expects to realize $5.3N approximately of net after-tax proceeds from the deal and utilize the proceedings from for share repurchase and repayment of debt next year. Cigna’s group life and the disability insurance business will function within New York Life’s portfolio of strategic businesses.
New York Life Chairman and CEO Ted Mathas stated, “This transaction increases the value we can deliver to our policy owners, strengthens our well-defined business model, and adds millions of customers to the New York Life family,” , “Cigna’s group life and disability business enhances our portfolio of strategic businesses and is led by an experienced management team and high-quality workforce, who we look forward to welcoming to our company. We are fully committed to making this transition as seamless as possible for employees and clients alike.”
“We are proud of what we have achieved in our life and disability business, and the world-class team that powers it. We are confident that clients and customers, including the many who also receive health and related benefits through Cigna, will continue to enjoy the high-quality benefits solutions and service for which this business is known,” stated Matt Manders, Cigna’s President of Strategy and Solutions.
New York Life: Credit Suisse Securities (USA) LLC is acting as financial advisor and Debevoise & Plimpton LLP is serving as legal advisor.
Cigna: BofA Securities is acting as financial advisor and Sidley Austin LLP is serving as lead legal counsel. Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as antitrust counsel with additional advice from Wachtell, Lipton, Rosen & Katz on the transaction.
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