Sidley is representing publicly traded Aflac Incorporated (NYSE: AFL) in its purchase of Zurich North America’s U.S. group benefits business, consisting of group life, disability and absence management products. As part of the transaction, Aflac will reinsure on an indemnity basis Zurich North America’s U.S. in-force group life and disability policies.
The strategic acquisition by Aflac is the most recent example of an uptick in M&A activity in the group benefits sector, exemplified by Cigna Corporation’s US$6.3 billion sale of its group life and disability insurance business to New York Life in late 2019, on which Sidley also advised. In 2019, Sidley also represented Aflac in its acquisition of Argus Dental and Vision, a premier benefits organization.
The deal received extensive press coverage, and is one of the few insurance M&A transactions announced since the onset of the coronavirus (COVID-19) pandemic.
The Sidley team is led by Sean Carney, Chad Vance (Insurance) and Brian Fahrney (M&A), and includes John White, Kyle Bessette (Insurance), Stephanie Dobecki (Insurance Regulatory), Tracy Williams, John Wilson (Insurance Tax), Lauren Gallagher, Karim Pirani (Employee Benefits), Glenn Nash, Rachelle Soderstrom and Ryan Rutledge (Technology and IP Transactions).