ACE Sues CIGNA Over P/C Acqusition

Bermuda based ACE Ltd. is unhappy about several aspects of its acquisition of CIGNA’s property/casualty business , and has filed suit in Federal Court in New York to recover a total of $218 million in damages.

At issue, according to ACE, are a tax payment of $48 million under a sharing agreement that CIGNA has refused to pay over, “and that the financial statements, which CIGNA provided, failed to fairly represent the financial condition of the acquired companies.”

ACE paid $3.45 billion for CIGNA’s p/c business that closed in July 1999. In a statement concerning the suit ACE said that it would not have any financial impact on this year’s results.

CIGNA has as yet made no comment on the allegations.