New York Life completed successfully its acquisition of Cigna’s group life, accident, and disability insurance businesses in a deal valued at $6.3 billion. The deal was first announced in December 2019 and will add 9 million customers and 3,000 employees to New York Life’s portfolio.
- New York Life Chairman and CEO Ted Mathas said, “This acquisition, the largest in our company’s history, reinforces our financial strength by generating capital that can contribute to our surplus, dividends, and earnings.”
- Ted Mathas also said, “We are excited to welcome to New York Life as our new employees and the millions of new customer relationships that we will gain through this milestone transaction. We look forward to building on our leading group benefits solutions market position in the years ahead.”
- Rumours that Cigna was considering a sale began in earnest in August 2019. Cigna has put a large focus on growing its health benefits and services arms since it acquired Express Scripts in December 2018.
- The nation’s largest pharmacy benefit manager provided a significant boost to the insurer’s financials over the past several quarters.
- To continue an expansion of the health services businesses, the insurer recently consolidated them under a new subsidiary Evernorth.