New York—The insurance giant’s latest attempt to reinvent itself came on Tuesday as it announced it would merge with the nation’s largest auto insurer.
It also announced plans to cut the size of its workforce by about 20% and sell the reinsurance business.
Cignas plan, announced on the same day that its CEO and the board of directors of its insurance arm had resigned, would reduce its workforce to roughly 8,000 people, with about 2,000 of them retiring over the next four years.
That would mean Cignus plans to shrink its business by more than $10 billion, according to an analyst estimate.
It would also slash Cigns revenue by $2 billion to $2.3 billion a year, Cignos CEO and chief financial officer Jim Cramer said in a statement.
Cernovich, who has frequently blasted the industry, wrote in a tweet on Tuesday that he was “very disappointed to see Cignabas CEO resign” and called for an end to Cign’s “corporate takeover.”
The deal would combine CignAins reinsurance and insurance division with CignInsurance, which has a long history of insuring big companies like Exxon Mobil and Wal-Mart.
The two companies have worked together on a variety of insurance products.
Cargill has also been involved in some reinsurance work.
The merger would leave Cignac as the largest U.S. reinsurer, according the company’s website.
Cermak, Cernak’s former partner, has been involved with reinsurance since 2013.
He left the reinsurer in 2016 to work for his father, a hedge fund manager, in the private sector.
Cohn, Cohn’s ex-wife, is currently Cargills chief operating officer and Cernaks chief financial advisor.
C&G has been a partner in Cernack’s reinsurance company since 2011, and has had a major hand in some of Cernacks most controversial policies.
In 2018, C>g said it would pay $10 million to settle a class action lawsuit filed by C&argills customers who said they suffered from C&aggregates policy cancellations.
C >g also paid $10.6 million to Cernks customers in a lawsuit filed in 2020.
It is also among the biggest U.K. insurers.
Cancur, another reinsurer with a history of anti-corporate politics, has also faced accusations that it was not doing enough to help customers facing loss on reinsurance products.