FAQs for the Proposed Transfer

1. What does the Proposed Transfer from Chubb Life Insurance Company Ltd. (Hong Kong Branch) to Chubb Life Insurance Hong Kong Limited involve? 

Chubb Life Insurance Company Ltd. acting through its Hong Kong branch (“CLICL”) proposes to transfer to Chubb Life Insurance Hong Kong Limited (“Chubb Life HK”) all the long term business carried on by the Hong Kong branch of CLICL which includes long term insurance policies underwritten by CLICL (the “Transferring Policies”) and certain assets and liabilities relating to its business (the “Proposed Transfer”). 

2. Which companies are involved in the Proposed Transfer? 

The Proposed Transfer involves CLICL and Chubb Life HK.

Both CLICL and Chubb Life HK are authorised by the Insurance Authority (the “IA”) to carry on certain classes of long term business in or from Hong Kong.

CLICL was incorporated under the laws of Bermuda on 28 July 1976 and is registered by the Bermuda Monetary Authority (“BMA”) as a long term Class E insurer, permitting CLICL to effect and carry on long term insurance business (as that term is defined under the Insurance Act 1978 of Bermuda). 

Chubb Life HK (formerly CIGNA Worldwide Life Insurance Company Limited) was incorporated in Hong Kong on 19 July 2005. 

On 1 July 2022, Chubb International Investments Limited, a subsidiary of Chubb Limited which is the ultimate parent company of the Chubb group of companies (the “Chubb Group”), purchased the entire issued share capital of Chubb Life HK (the “Acquisition”).  Chubb Life HK then changed its name to Chubb Life Insurance Hong Kong Limited on 27 October 2022.

Prior to the Acquisition, Chubb Life HK was a subsidiary of Cigna Corporation. Cigna Corporation is the ultimate parent company of the Cigna group of companies (the “Cigna Group”) and its shares are listed on the New York Stock Exchange (NYSE: CI). On completion of the Acquisition, Chubb Life HK ceased to be a member of the Cigna Group and became a member of the Chubb Group. 

3. How and when will the Proposed Transfer take place?

CLICL and Chubb Life HK have applied to the Court of First Instance of Hong Kong (the “Hong Kong Court”) for an order sanctioning a scheme (the “Hong Kong Scheme”) for the transfer from CLICL to Chubb Life HK of all long term insurance policies underwritten by CLICL in Hong Kong and for the making of ancillary provisions in connection with the implementation of the Hong Kong Scheme pursuant to sections 24 and 25 of the Insurance Ordinance. 

As CLICL is also registered as an insurer in Bermuda, CLICL and Chubb Life HK have also applied to the Supreme Court of Bermuda (the “Bermuda Court”) for an order sanctioning a similar scheme of transfer (the “Bermuda Scheme”, and together with the Hong Kong Scheme, the “Schemes”) for the transfer of the Transferring Policies (together with certain assets and all rights and liabilities arising thereunder) under section 25 of the Insurance Act 1978 of Bermuda. The terms of the Bermuda Scheme are, in all material respects, the same as the terms of the Hong Kong Scheme.  

Subject to the sanctioning of the Hong Kong Scheme by the Hong Kong Court and the sanctioning of the Bermuda Scheme by the Bermuda Court, it is expected that the Schemes will become operative at 12:00 a.m. (Hong Kong Time) on 1 October 2023 or such other date and/or time as CLICL and Chubb Life HK agree (the “Effective Date”). 

 We will notify you in writing after the Schemes have been sanctioned by the Hong Kong Court and the Bermuda Court respectively and the Schemes have taken effect. 

4. Why is CLICL proceeding with the Proposed Transfer to Chubb Life HK?  

The Proposed Transfer is part of a strategic initiative of the Chubb Group. 

CLICL and Chubb Life HK consider that the Proposed Transfer will result in the following benefits: 

(a) consolidate the long term business carried on by CLICL with the long term business carried out by Chubb Life HK thereby:

(i) avoiding duplication of insurance products, management, administration, servicing and cybersecurity monitoring of separate IT systems; and

(ii) improving the efficiency of policy servicing, accounting, audit, regulatory and actuarial compliance; 

(b) simplify Chubb Group’s corporate structure in Hong Kong, achieve regulatory alignment and streamline regulatory compliance in Hong Kong and remove additional resource burden in managing different risk profiles and regulatory regimes;

(c) avoid duplication of risk management assessments for both CLICL and Chubb Life HK and create greater synergies between Chubb Group companies in Hong Kong; 

(d) enable simpler, clearer and more transparent communications with policyholders  avoiding confusion arising out of the Chubb Group having two different authorised insurers carrying long term business in Hong Kong; and

(e) facilitate strategic plans for Chubb Life HK, as a company incorporated in Hong Kong, to take advantage of the Hong Kong Government’s efforts to enable authorised insurers to expand long term business into the Greater Bay Area. 

5. Does the Proposed Transfer affect my policy terms and conditions, including my rights, obligations and benefits under my insurance policy? 

No. The Proposed Transfer will not affect your rights and obligations under your insurance policy. 

If you have an insurance policy with CLICL, your policy provider will, with effect from the Effective Date, change to Chubb Life HK. With effect from the Effective Date, you will have the same rights under your insurance policy with Chubb Life HK as you had under your insurance policy with CLICL. 

If you have an insurance policy with Chubb Life HK, the insurer of your policy will, after the Effective Date, continue to be Chubb Life HK. Your rights and obligations under your insurance policy will not be affected. 

The Independent Actuary, Ms Cindy Chou of Willis Towers Watson US LLC who is a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries, has prepared a report (the “Independent Actuary’s Report”) on the likely effects of the Proposed Transfer on policyholders who have insurance policies with CLICL and on policyholders who have insurance policies with Chubb Life HK (the “Relevant Policyholders”).  The Independent Actuary was approved for the purposes of such review by the BMA and the IA has confirmed it does not have any objections to that appointment.

The Independent Actuary concludes in the Independent Actuary’s Report that the Schemes: 

(a) will not adversely affect the contractual benefits or rights of any Relevant Policyholders; 

(b) will not adversely affect the reasonable benefit expectations of any Relevant Policyholders; 

(c) will not adversely affect the financial security of any Relevant Policyholders; and 

(d) will not adversely affect the expected levels of service for any Relevant Policyholders. 

(e) provide sufficient safeguards to ensure that they operate as presented.

The Independent Actuary is also preparing a supplementary report (the “Supplementary Report”) in order to provide an update on the relevant financial information of CLICL and Chubb Life HK as of 30 June 2023 and to confirm whether there is any change to their conclusions set out in the Independent Actuary’s Report.  CLICL and Chubb Life HK expect the Supplementary Report to be finalised and made available on the CLICL’s and Chubb Life HK’s website at https://www.chubb.com/hk-en/ on or by 31 August 2023 where it will remain accessible until the end of the petition hearing of the Hong Kong Court.

6. How does the Proposed Transfer affect the payment of my premiums? 

If you have an insurance policy with CLICL, all premiums payable under your policy after the Effective Date should be made payable to Chubb Life HK or through its agent as and when they become due. The payment instructions and bank account details will be furnished to you shortly. 

7. Will new insurance policies be issued for CLICL existing insurance policies? 

No. Existing in force insurance policies with CLICL remain valid and will be automatically transferred to Chubb Life HK from the Effective Date. New insurance policies will not be issued by CLICL after 1 July 2023. 

8. What if I make a claim before the Effective Date and the claim has not been settled by the Effective Date? 

If you have made or make a claim before the Effective Date, your existing policy terms and conditions will continue to apply to the assessment of that claim. 

If your insurance policy is with CLICL, Chubb Life HK will take over the processing of your claim from CLICL and will be responsible for any subsequent payments to you. You do not need to submit a new claim form as the claims information will be transferred from CLICL to Chubb Life HK.

9. What if I make a complaint or commence legal proceedings against CLICL before the Effective Date?

If you have made or make a complaint about CLICL before the Effective Date and that complaint has not been resolved before the Effective Date, Chubb Life HK will take over the handling of that complaint.  

If you have commenced or commence any legal proceedings, claim or complaint against CLICL before the Effective Date which have/has not been resolved by the Effective Date, those proceedings/that claim or complaint will be continued against Chubb Life HK in substitution for CLICL with effect from the Effective Date.  

10. Where can I find further information about the Proposed Transfer? How can I keep up to date with the progress of the Proposed Transfer? 

You can find further information about the Proposed Transfer on the website of CLICL and Chubb Life HK at https://www.chubb.com/hk-en/ including copies of  the Petition, the Petition to the Bermuda Court, the Schemes, the Independent Actuary’s Report, the Supplementary Report (once this has been finalised) and summaries of the terms of the Hong Kong Scheme and the Independent Actuary’s Report. 

Further information about the Proposed Transfer is also available for inspection free of charge at the offices of CLICL and Chubb Life HK at 35/F, Chubb Tower, Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong between 9:00 a.m. to 6:00 p.m. (Hong Kong time), Monday to Friday (except public holidays) from [date] until [the later date of the HK Hearing or the Bermuda Hearing].

Alternatively, if you have any questions in relation to the Proposed Transfer you can contact us at (852) 2894 9833 (between 9:00 a.m. to 6:00 p.m. Hong Kong time, Monday to Friday (except public holidays)) or writing to the address above to the attention of the Customer Service Centre and marking your envelope with the reference [“court action number to be inserted: HCMP _____ / 2023”].

We will notify you in writing after the Schemes have been sanctioned by the Hong Kong Court and the Bermuda Court respectively and the Schemes have taken effect. 

11. Can I choose to stay with CLICL after the Effective Date of the Proposed Transfer?

No. After the Effective Date of the Proposed Transfer, CLICL will begin closing down and will eventually be wound up. Please rest assured that all your rights under your insurance policy with CLICL will be transferred and continue with Chubb Life HK.