Liberty Mutual has entered into a definitive agreement to sell Liberty Life Assurance Company of Boston (the Life Company) to Lincoln Financial Group for about US$3.3 billion (around £2.38 billion), the company has announced.
The Life Company provides group disability, group life, individual life and annuity products. Liberty Mutual expects to complete the transaction in the second quarter.
“The sale of the Life Company allows us to fully focus on our property and casualty business,” said David H. Long, Liberty Mutual chairman and CEO. “The realignment will make it easier for our customers to access the full breadth of the personal, commercial, specialty and reinsurance products that Liberty has to offer.”
Liberty Mutual will also realign into two major P&C businesses, Global Risk Solutions and Global Retail Markets.
Global Risk Solutions (GRS) will bring together the company’s Global Specialty, Ironshore, National Insurance and Global Reinsurance Strategy Group into a single entity. GRS will be headed up by Dennis J. Langwell, currently Liberty Mutual’s chief financial officer. Kevin H. Kelley, currently CEO of Ironshore, will assume the role of vice chairman, Global Risk Solutions, and will report to Long.
Global Retail Markets (GRM) will combine Liberty Mutual’s Global Consumer Markets with its business insurance and accident and health organisations formerly in commercial insurance, the company said. Timothy Sweeney, currently president of Global Consumer Markets, will head up GRM.