New York Life Insurance to Buy Cigna's Life and Disability Insurance Business for $6.3 Billion
December 18 2019 - 8:44AM
Dow Jones News
By Dave Sebastian
New York Life Insurance Co. said Wednesday has agreed to buy
Cigna Corp.'s (CI) life and disability insurance business for $6.3
billion in cash.
Cigna said the transaction would likely be neutral to its
per-share earnings in 2020 and could add to its earnings in
2021.
Cigna said it expects to realize about $5.3 billion of net
after-tax proceeds from the transaction and to use them for share
repurchases and debt repayment in 2020. Cigna's board has increased
the company's share repurchase authority by $3 billion to $4
billion, it said.
The transaction is expected to close in the third quarter of
2020.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
December 18, 2019 08:29 ET (13:29 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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