New York Life completed its $6.3 billion acquisition of Cigna's group life, accident and disability insurance business, the company announced last week.
As a part of the deal, New York Life and Cigna will also participate in a multi-year collaboration to create group benefit solutions for their clients.
The new business has been renamed New York Life Group Benefit Solutions and will operate within New York Life's portfolio of strategic businesses, which includes Group Membership Association, Institutional Annuities, Institutional Life, New York Life Direct, and Seguros Monterrey New York Life, among others.
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WHAT'S THE IMPACT?
Cigna first announced it was selling off its group life and disability insurance business in December 2019.
New York Life expects to add 3,000 employees and over nine million customers with the deal.
The acquisition is the largest in New York Life's company history, according to chairman and CEO Ted Mathas.
THE LARGER TREND
The two companies joined forces last April with the creation of the Brave of Heart Fund. The program seeks to support families who have lost a loved one working on the front lines of the coronavirus pandemic by providing funds for medical care, counseling, housing, food, transportation, education and other needs.
Cigna had a busy end to 2020 as it expanded its Affordable Care Act footprint to 79 new counties, launched its rebranded health services portfolio called Evernorth, announced growth in the Medicare Advantage market, and renewed its partnership with the medical group Envision Healthcare.
ON THE RECORD
"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," said New York Life Chairman and CEO Ted Mathas. "We are excited to welcome to New York Life 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 benefit solutions market position in the years ahead."
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