New York Life the third-largest life insurance company in the United States finalized the acquirement of the leading global health service company -Cigna. New York Life is all set to acquire Cigna’s group life and disability insurance for $6.3 billion.
The given acquisition is expected to close by the third quarter of 2020, keeping in mind the regulatory approvals. The motive behind the acquirement is to provide increased value to policy owners which define and strengthen their business model pointed out, Ted Mathas, New York Life’s Chairman and CEO. Cigna, which is a group life and disability insurance business will operate within New York Life. The strengthening of the financial core of New York Life by generating capital will be the strategy followed by these businesses.
In addition, the Cigna group Insurance employees will be transferred to New York Life. On this acquirement, Matt Manders, Cigna’s President of Strategy and Solutions, said, “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.”
William Smith, President of Cigna Group Insurance said, “We look forward to continuing our relationships with our valued customers and clients. 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.”
On a mission to continue the focus on financial security and peace, New York Life and Cigna will continue to focus on the country’s productivity together.
About New York Life
New York Life Insurance Company was founded in 1845 being a Fortune 100 company, it is the largest mutual life insurance company in the United States. The headquarters are situated in New York City and offers life insurance, retirement income, investments, and long term care insurance.
Cigna Corporation is a global health service and dedicated to health, well-being, and peace. The corporation delivers affordability and quality health care to their clients. Cigna Corporation includes Cigna Health and Life Insurance Company Cigna Corporation, Cigna Life Insurance Company of New York, Connecticut General Life Insurance Company, Express Scripts companies or their affiliates, and Life Insurance Company of North America.