Liberty Mutual Will Sell Life Biz to Lincoln Financial for $3.3B; P/C Operations Reorganized

January 22, 2018

Liberty Mutual is getting out of the life insurance business, and the insurer will reorganize in order to better focus on its remaining P/C businesses.

The Boston-based global insurer said it will sell its life insurance arm – Liberty Life Assurance Company of Boston – to Lincoln Financial Group for about $3.3 billion. Plans call for closing the deal in the 2018 second quarter, pending regulatory approvals and other closing conditions.

David Long, Liberty Mutual’s chairman and chief executive officer, said the deal allows Liberty to better focus on its other product offerings.

David Long

“The sale of the life company allows us to fully focus on our property and casualty businesses,” Long explained in prepared remarks. “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.”

In a related move, Liberty Mutual said it will realign its consumer and commercial insurance businesses into two P/C divisions: Global Risk Solutions and Global Retail Markets.

Global Risk Solutions will include Liberty Mutual’s Global Specialty, Ironshore, National Insurance and the Global Reinsurance Strategy Group. Liberty Mutual said the combination will, in part, provide better scale and a global reach. Liberty Mutual Chief Financial Officer Dennis Langwell will take over as the GRS leader. Kevin Kelley, currently Ironshore’s CEO, will become vice chairman of Global Risk Solutions, reporting directly to Long.

Christopher Peirce, currently president of Global Specialty, will become Liberty’s new chief financial officer.

Global Retail Markets, meanwhile, will combine Liberty Mutual’s existing Global Consumer Markets with its Business Insurance and Accident & Health organizations previously found under Commercial Insurance. The insurer said that the GRM business will include individual motor, property and A&H products for consumers, plus commercial products for small businesses. Timothy Sweeney, the current president of Global Consumer markets, will lead GRM.

Liberty Mutual said other divisions will be led and operated as before.

Source: Liberty Mutual