New York Life’s $6.3 Billion Acquisition Of Group Life and Disability Insurance Business From Cigna Corporation

BofA Securities acted as financial advisor to Cigna. Sidley Austin LLP served as lead legal counsel, and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as antitrust counsel, to Cigna. Wachtell, Lipton, Rosen & Katz also advised Cigna on the transaction. Debevoise & Plimpton LLP attorneys advised New York Life. Paul, Weiss advised Cigna Corporation on the regulatory clearance.

New York Life, America’s largest mutual life insurer, and Cigna, a leading global health service company, have entered into a definitive agreement whereby New York Life will acquire Cigna’s group life and disability insurance business for $6.3 billion. The acquisition is expected to close in the third quarter of 2020, subject to applicable regulatory approvals and other customary closing conditions.

The group life and disability insurance business will operate within New York Life’s portfolio of strategic businesses, which, like Cigna’s Group Insurance business, are industry leaders, highly profitable, and fully support New York Life’s core retail life insurance franchise. These businesses reinforce New York Life’s overall financial strength by generating capital that can contribute to its surplus, dividends, and earnings, which directly benefits the company’s policy owners. In addition, the Cigna Group Insurance employees, as well as the employees who primarily support the acquired business, will transfer to New York Life.

In a multi-year collaboration, following closing, the parties will continue to bring an integrated Health / Group offering to clients and prospects who desire it.

The Sidley team was led by Sean Keyvan (Picture), Jeremy Watson, Chad Vance, Marisa Young, Jeremy Carroll, Zeshawn Qadir and Scott Goldstein.

The Debevoise team was led by insurance partners David Grosgold and Marilyn Lion and includes tax partner Peter Furci and associate Lena Smith, benefits partner Lawrence Cagney and law clerk Jeri Brown, intellectual property partner Jeffrey Cunard and associate Jose Angel Lamarque, real estate partner Nicole Mesard and associate Christian Frazier and insurance associates Morgan Aveni, Kristen Matthews, Rebecca Sayles and Leron Solomon.

The Paul, Weiss team advising Cigna included antitrust partners Rick Rule and Andrew Forman and antitrust counsel Dan Howley and Marta Kelly.

Involved fees earner: Morgan Aveni – Debevoise & Plimpton; Lawrence Cagney – Debevoise & Plimpton; Jeffrey Cunard – Debevoise & Plimpton; Christian Frazier – Debevoise & Plimpton; Peter Furci – Debevoise & Plimpton; David Grosgold – Debevoise & Plimpton; Jose Angel Lamarque III – Debevoise & Plimpton; Nicole Levin Mesard – Debevoise & Plimpton; Marilyn Lion – Debevoise & Plimpton; Kristen Matthews – Debevoise & Plimpton; Rebecca Sayles – Debevoise & Plimpton; Lena Smith – Debevoise & Plimpton; Leron Solomon – Debevoise & Plimpton; Andrew Forman – Paul Weiss Rifkind Wharton & Garrison; Daniel Howley – Paul Weiss Rifkind Wharton & Garrison; Marta Kelly – Paul Weiss Rifkind Wharton & Garrison; Rick Rule – Paul Weiss Rifkind Wharton & Garrison; Jeremy Carroll – Sidley Austin LLP; Scott Goldstein – Sidley Austin LLP; Sean Keyvan – Sidley Austin LLP; Zeshawn Qadir – Sidley Austin LLP; Chad Vance – Sidley Austin LLP; Jeremy Watson – Sidley Austin LLP; Marisa Young – Sidley Austin LLP;

Law Firms: Debevoise & Plimpton; Paul Weiss Rifkind Wharton & Garrison; Sidley Austin LLP;

Clients: Cigna Corporation; New York Life Insurance Company;

Author: Ambrogio Visconti