NEW YORK–(Small business WIRE)–New York Life, America’s most significant mutual daily life insurer1, these days introduced the completion of the company’s acquisition of Cigna’s team lifetime, incident, and disability insurance company. The $6.3 billion acquisition, which was 1st introduced on December 18, 2019, provides somewhere around 3,000 staff members, in excess of nine million buyers2, and improves New York Life’s portfolio of strategic corporations, which support the main retail everyday living insurance policy franchise and bolster the company’s money power. The new small business will be rebranded New York Life Group Profit Alternatives.
“This acquisition, the most significant in our company’s history, reinforces our money strength by creating capital that can lead to our surplus, dividends, and earnings,” stated New York Everyday living Chairman and CEO Ted Mathas. “We are excited to welcome to New York Life our new personnel and the thousands and thousands of new buyer associations that we will gain through this milestone transaction. We appear forward to developing on our major group gain solutions marketplace place in the years forward.”
“New York Lifetime Team Gain Answers provides deep experience, differentiated underwriting and hazard administration abilities, and substantial consultative experience to New York Daily life. Our mission is to deliver money peace of thoughts to all those we serve and, jointly, we will maintain our unwavering concentration on and motivation to shoppers, producers, shoppers, and our personnel,” reported William J. Smith, senior vice president and head of New York Lifestyle Team Gain Methods.
New York Life President Craig DeSanto extra, “Industry-top New York Daily life Group Reward Remedies is an suitable fit for our organization, with a potent administration staff and proficient workforce. We seem forward to incorporating New York Lifestyle Group Gain Solutions’ complementary suite of gains and providers to our choices and increasing jointly in the foreseeable future. With this acquisition, New York Lifetime is even a lot more strongly positioned to continue on to produce fiscal security to individuals, people, and small business homeowners.”
New York Lifestyle and Cigna have also entered into a multi-calendar year collaboration that will keep on to provide differentiated, built-in well being and team profit remedies for clients and potential customers who need them.
New York Lifestyle Group Profit Methods will function inside New York Life’s portfolio of strategic corporations, which consists of Team Membership Affiliation, Institutional Annuities, Institutional Daily life, New York Daily life Direct, and Seguros Monterrey New York Life, among the other folks.
With the completion of the acquisition, New York Daily life is now a top 5 insurance provider throughout group everyday living, accident, and incapacity insurance3.
Credit history Suisse Securities (Usa) LLC acted as economic advisor and Debevoise & Plimpton LLP acted as legal advisor to New York Existence.
Bank of The usa Securities acted as economic advisor to Cigna. Sidley Austin LLP served as direct legal counsel, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as antitrust counsel, to Cigna. Wachtell, Lipton, Rosen & Katz also recommended Cigna on the transaction.
About New York Lifetime
New York Existence Insurance policy Firm (www.newyorklife.com), a Fortune 100 corporation established in 1845, is the major mutual everyday living coverage enterprise in the United States* and a person of the premier everyday living insurers in the earth. Headquartered in New York City, New York Life’s household of businesses offers daily life insurance coverage, retirement profits, investments and very long-expression treatment insurance coverage. New York Existence has been given the highest monetary toughness ratings presently awarded to any U.S. life insurance company from all 4 of the significant credit score businesses**.
New York Lifetime Team Reward Alternatives merchandise and expert services are delivered solely by or as a result of Lifestyle Insurance policy Corporation of North America (“LINA”) or Cigna Daily life Insurance Organization of New York (New York, NY) (“CLICNY”), or by or as a result of affiliates or subsidiaries of Cigna Company and reinsured by LINA. LINA and CLICNY are accountable for their have money problem and contractual obligations.
*Based on revenue as reported by “Fortune 500 rated inside of Industries, Coverage: Existence, Health and fitness (Mutual),” Fortune journal, 5/18/2020. For methodology, make sure you see http://fortune.com/fortune500/.
**Particular person unbiased score agency commentary as of 10/15/2020: A.M. Very best (A++), Fitch (AAA), Moody’s Traders Company (Aaa), Regular & Poor’s (AA+).
Cigna Company is a global health services enterprise committed to bettering the health, very well-staying and peace of thoughts of people we provide. Cigna provides selection, predictability, affordability and entry to good quality treatment via integrated abilities and linked, individualized options that progress whole individual health and fitness. All products and services are furnished solely by or through functioning subsidiaries of Cigna Company, like Cigna Overall health and Life Insurance Company, Connecticut Common Everyday living Coverage Company, Evernorth companies or their affiliate marketers and Express Scripts firms or their affiliate marketers. These kinds of solutions and products and services include an integrated suite of wellness companies, these kinds of as health-related, dental, behavioral wellbeing, pharmacy, eyesight, supplemental rewards and other related solutions. Cigna maintains sales functionality in over 30 countries and jurisdictions, and has much more than 170 million client associations all around the earth. To discover much more about Cigna®, which include hyperlinks to observe us on Fb or Twitter, check out www.cigna.com.
Cigna Forward Hunting Statements
This push launch, and oral statements manufactured in connection with this release, may possibly include forward-seeking statements within the which means of the Private Securities Litigation Reform Act of 1995. Ahead-searching statements are based on Cigna’s present expectations and projections about long term traits, functions and uncertainties. These statements are not historical facts. Ahead-wanting statements might consist of, among other people, statements regarding our projected consolidated modified profits from functions outlook for 2020 on a for each share basis projected altered revenue outlook for 2020 long term money or running effectiveness, which include our potential to deliver cost-effective, personalized and revolutionary alternatives for our consumers and clientele, in light of the issues introduced by the COVID-19 pandemic foreseeable future progress, business enterprise strategy, strategic or operational initiatives, like our organizational performance strategy economic, regulatory or competitive environments, specially with respect to the rate and extent of improve in these places financing or cash deployment plans and amounts obtainable for upcoming deployment our prospects for progress in the coming years strategic transactions, which includes the merger (the “Merger”) with Convey Scripts Keeping Company and the sale of our U.S. Group Incapacity and Existence company our ongoing operational reaction to the COVID-19 pandemic and other statements pertaining to Cigna’s future beliefs, expectations, programs, intentions, money problem or performance. You may well detect forward-looking statements by the use of text these kinds of as “think,” “assume,” “system,” “intend,” “anticipate,” “estimate,” “forecast,” “potential,” “may well,” “really should,” “will” or other text or expressions of comparable indicating, even though not all ahead-seeking statements incorporate these kinds of conditions.
Ahead-searching statements are issue to risks and uncertainties, both equally regarded and unfamiliar, that could trigger real benefits to vary materially from people expressed or implied in forward-looking statements. These pitfalls and uncertainties include things like, but are not minimal to: our capability to accomplish our fiscal, strategic and operational programs or initiatives our ability to predict and control health care and pharmacy expenditures and value successfully our potential to adapt to changes or developments in an evolving and rapidly switching industry our ability to proficiently differentiate our items and providers from individuals of our competitors and manage or raise sector share our means to produce and manage great interactions with physicians, hospitals, other overall health treatment companies, producers, consultants, and pharmaceutical brands modifications in the pharmacy service provider market or pharmacy networks modifications in drug pricing the impact of modifications to our operations and procedures our means to detect possible strategic transactions and know the anticipated positive aspects (like anticipated synergies) of these kinds of transactions in complete or in the anticipated time frame, such as with respect to the Merger and the sale of our Group Incapacity and Life organization, as properly as our means to combine or individual operations, assets and devices the substantial amount of governing administration regulation around our business and the opportunity results of new regulations or laws or alterations in existing regulations or polices the end result of litigation, regulatory audits, investigations, steps or guaranty fund assessments uncertainties bordering participation in authorities-sponsored systems such as Medicare the success and safety of our information technological innovation and other business enterprise devices and people of our crucial suppliers or other third functions the effect of our personal debt service obligations on the availability of resources for other small business reasons unfavorable business, financial or political situations, such as overseas forex actions functions of civil unrest, war, terrorism, all-natural disasters or pandemics reinsurance credit score risk the scale and scope of the COVID-19 pandemic and its possible affect on our company, running results, hard cash flows and financial problem, as well as on our workforce, customers, shoppers, suppliers and partners and on the U.S. and world-wide economies as perfectly as far more precise challenges and uncertainties mentioned in our most latest report on Variety 10-K, our Variety 10-Q for the quarter ended March 31, 2020 and subsequent reviews on Sorts 10-Q and 8-K accessible as a result of the Investor Relations section of www.cigna.com. You should not place undue reliance on forward-seeking statements, which converse only as of the date they are produced, are not assures of potential effectiveness or final results, and are topic to pitfalls, uncertainties and assumptions that are complicated to predict or quantify. Cigna undertakes no obligation to update or revise any forward-looking statement, regardless of whether as a outcome of new information and facts, long term functions or otherwise, besides as may possibly be necessary by regulation.
1Primarily based entirely on New York Life’s revenue as noted by “Fortune 500 rated inside Industries, Insurance policy: Lifestyle, Wellbeing (Mutual),” Fortune magazine, 5/18/2020. For methodology, remember to see http://fortune.com/fortune500/.
2 Estimated number of distinctive shopper interactions represented among the 15.9 million included lives throughout both Incapacity and Everyday living. Resource: Cigna 3Q2020 earnings: https://www.cigna.com/static/www-cigna-com/docs/about-us/trader-relations/quarterly-studies-and-sec-filings/cigna-corp-third-quarter-2020-release.pdf
3 Source: Dependent on Lifestyle Insurance coverage Firm of North America and Cigna Life Insurance policies Company of New York (New York, NY) new profits as documented in LIMRA’s U.S. Workplace Benefits, Disability and Everyday living Gross sales 2019 Once-a-year Success)