AM Best has placed under review with positive implications the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Cigna Life Insurance New Zealand Limited (CLINZ) (New Zealand).
These Credit Rating (rating) actions follow the announcement on 7 October 2021, that Cigna Corporation [NYSE:CI], CLINZ’s ultimate parent, has entered into a definitive agreement to sell its life, accident and supplemental benefits businesses in seven countries, including CLINZ, to Chubb Limited (Chubb group) [NYSE:CB] for USD 5.75 billion. The transaction, which is subject to required regulatory approvals and customary closing conditions, is expected to be completed in 2022.
The ratings have been placed under review with positive implications as AM Best needs to assess the impact of the planned acquisition on CLINZ’s credit fundamentals, including any potential increase in rating enhancement that could arise from the change in ownership. In addition, AM Best will need to consider the planned integration of CLINZ within the Chubb group, any expected changes in strategy and any implicit or explicit support to be provided by the new parent.
The ratings will remain under review pending completion of the transaction, and until AM Best can fully assess the post-acquisition credit rating fundamentals of CLINZ.
Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.
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