US insurer Chubb has a “definitive agreement” with Cigna to acquire its life and non-life businesses in seven Asia-Pacific markets, including New Zealand, for $US5.75 billion ($7.9 billion).

The all-cash acquisition covers Cigna’s personal accident and health (A&H), supplemental health and life operations.

These operations in New Zealand and the other six markets – South Korea, Taiwan, Thailand, Hong Kong, Indonesia and Cigna’s interest in a joint venture in Turkey – generated about US$3 billion ($4.1 billion) in net premiums written last year.

Chubb says the acquisition, which is subject to regulatory clearance and customary closing conditions, is complementary to its existing businesses in the region.

It will increase Chubb’s global A&H premiums to $US6.1 billion ($8.4 billion) from $US3.7 billion ($5.1 billion) and raise Asia’s share – excluding China – of net premiums written globally to $US7 billion ($9.6 billion) from $US4 billion ($5.5 billion).

The deal advances Chubb’s strategy to expand its Asia-Pacific presence and will add to an “already sizeable” A&H business while strengthening its Asia-based life operations.

“The addition of Cigna’s business, which is overwhelmingly A&H, will further balance our global portfolio toward this important region,” Chairman and CEO Evan Greenberg said. “We know these businesses well as we already have a sizable operation of our own in the region and globally.”

He says the digital opportunity across the region is large and untapped, making it suitable for Chubb’s direct-marketed A&H products, consumer property and casualty as well as life insurance offerings.

“We are looking to the future,” Mr Greenberg said. “Broadly across the region, Chubb will be better able to capitalise on market and product opportunities with strong brand, complementary direct marketing skills and the cross-selling of Chubb's non-life product to life customers.”

The acquisition is expected to close next year.