Cigna Corp. and its partner in China announced Monday that the joint venture has one million policies in China.
Cigna and CMC Life Insurance Co. Ltd., an affiliate of China Merchants Group, started their joint venture in 2003. Cigna brings insurance experience to the deal. CMC brings retail experience and brand recognition as well as an understanding of customers in China.
The Hartford Financial Services Group will probably use proceeds from the sale of several business units to pay off debt and buy back shares of company stock, analysts say.
The last of several large divestitures was announced last week with the planned sale of The Hartford’s Individual Life business to Prudential Financial of Newark, N.J., capping off several large divestitures that were part of a major restructuring plan that the company explained publicly in March. The sale is expected to be complete early next year.
It’s unclear how many employees will remain and where they will work after the departure of 2,600 workers, including more than 900 in Connecticut, but by selling various under-performing businesses, The Hartford expects to free up $2.2 billion in capital
“The focus will now shift to capital deployment and timeframes for getting the full $2.2 billion to the holding company, but we expect the majority of capital to be deployed roughly equally on buybacks and deleveraging,” Mark Finkelstein and Paul Surran, analysts for Evercore Partners, wrote in a research note.