Cigna (CI) Exits Run-off Operations in Deal with Berkshire Hathaway

Article Related Press Releases (1) Stock Quotes (3) Comments (0)

Cigna Corporation (NYSE: CI) announced a definitive agreement with Berkshire Hathaway Life Insurance Company of Nebraska, a member of the Berkshire Hathaway, Inc. (NYSE: BRK-A) (NYSE: BRK-B) group (Berkshire), under which Berkshire will reinsure Cigna's Run-off Guaranteed Minimum Death Benefits (VADBe) and Guaranteed Minimum Income Benefits (GMIB) businesses effective February 4, 2013. Cigna will fund this transaction with an incremental $100 million of parent company cash, approximately $1.8 billion of investment assets supporting the run-off businesses, and an estimated $300 million tax benefit associated with the transaction.

Berkshire will assume 100% of Cigna's exposure up to $4 billion of future VADBe and GMIB claims, which is significantly in excess of current projections of future claims for this business. Cigna believes that the potential for actual claims to exceed the limit of the coverage from Berkshire is extremely remote.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• A.G. Lafley Returns as President/CEO of Procter & Gamble (PG)
• NetSol (NTWK) to Implement CAPCMS Modules with Southeast Asia Finance Co.
• NewLead (NEWL) Receives Nasdaq Notice of Non-Compliance Over Late 20-F

Create E-mail Alert Related Categories

Corporate News, Hot Corp. News

Related Entities

Warren Buffett

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?