Cigna Sells Student, Sports Accident Businesses to QBE Specialty

Tue. September 15, 2009; Posted: 03:05 PM

NEW YORK, Sep 15, 2009 (A. M. Best via COMTEX) -- QBGPP | Quote | Chart | News | PowerRating -- QBE Specialty Insurance has acquired the special risk, student and sports accident insurance businesses of Cigna Corp. Terms of the transaction weren't disclosed.

The portfolio comprises medical expense coverage for students, athletes and participants in camps, clubs, day-care centers and other youth and adult group activities, said QBE Specialty, a U.S. unit of international insurer QBE Insurance Group Ltd. of Australia.

Amy Turkington, a spokeswoman for Cigna (NYSE: CI), one of the largest health insurers in the United States, said the company is focusing on its core accident insurance product that it sells to employees through the workplace. The speciality business it sold to QBE was a noncore business, she said.

"This was not a workplace-based program," Turkington said, declining to disclose the terms of the deal.

QBE Specialty, based in New York, says it offers niche insurance programs for specific industries or business segments. It works with retail program administrators and more than 80 managing general agents and writes in all 50 states. The Cigna businesses will broaden its health practice, it said.

Key members of Cigna's specialty accident unit are joining QBE and relocating to a new office outside Philadelphia. QBE is keeping Cigna's current managing general agents and third-party administrators.

QBE Specialty said it recorded more than $1.5 billion in gross written premium in 2008.

QBE Specialty Insurance Co. currently has a Best's Financial Strength Rating of A (Excellent).

Cigna companies currently have Best's Financial Strength Ratings of A- (Excellent).

(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)

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