Anna Jiwon Park has been covering the politics at The Korea Times since the summer of 2024, when she joined the press pool for the Office of the President in Korea. Prior to that, she spent about five years reporting extensively on financial markets, regulatory authorities and the financial industry. She joined The Korea Times in 2019 after spending eight years as a broadcast journalist at Arirang TV, Korea’s leading global broadcaster, covering politics, defense and culture.
LINA Korea to be sold to Chubb
LINA Life Insurance Co. of Korea / Courtesy of LINA Korea
By Anna J. Park
By Anna J. Park
U.S.-based insurance group Chubb will become the new owner of LINA Life Insurance of Korea, after the group agreed to acquire it and other businesses in the region from Cigna aiming to boost the group's presence in Asia.
According to the insurers late last week, Chubb will acquire LINA, as well as Cigna's other accident and health businesses located in Taiwan, Thailand, New Zealand, Hong Kong, Indonesia and Turkey for $5.75 billion.
With the deal, around 20 percent of Chubb's business will be conducted in Asia going forward.
“The addition of Cigna's business, which is overwhelmingly A&H (accident and health), will rebalance our global portfolio towards this important region,” Chubb CEO Evan Greenberg said.
“Our agreement with Chubb is another step forward in advancing our strategic focus on our global health services portfolio,” Cigna President and CEO David Cordani said, according to a joint statement.
LINA Korea, in particular, is expected to play a key role in expanding Chubb's presence in Asia. According to the industry sources, the purchasing price is estimated at around 4 trillion won ($3.4 billion), or about 60 percent of the entire deal. The insurance company will continue to operate under the LINA Korea brand after the acquisition.
Once the deal is finally agreed upon and signed by both parties, it will be officially reported to the financial authorities in Korea. Due to regulatory approval conditions, the entire deal is expected to be completed in 2022.
Rumors surrounding LINA Korea's possible sale have abounded in the local market for the past couple of years, which the company strongly denied. The current deal, meanwhile, is said to have progressed during the past four months, since Chubb made clear its intention to buy the business last year.
Chubb is a U.S.-based insurer providing services in 54 countries. Ace Insurance and Chubb Life Korea are the group's operations in Korea.