Liberty Mutual Insurance Co. will realign its property/casualty operations following the announcement it would sell its life and disability insurance unit to Lincoln Financial Group for about $3.3 billion, Liberty Mutual said in a statement Friday.
The Boston-based unit, Liberty Life Assurance Co., provides group disability, group life, individual life and annuity products.
“Through this transaction, Lincoln Financial will have a significantly increased presence in the group benefits market by complementing our existing small- to middle-market strengths with even deeper large case and disability expertise,” Dennis R. Glass, president and chief executive officer of Radnor, Pennsylvania-based Lincoln Financial said in a statement.
The transaction is expected to be completed in the second quarter of 2018, pending regulatory approvals and other customary closing conditions, the statement said.
Going forward, Liberty Mutual will divide its commercial property/casualty business into two units, Global Risk Solutions and Global Retail Markets.
Global Risk Solutions will consist of Liberty Mutual’s global specialty unit, Ironshore, national insurance and its global reinsurance strategy group.
The unit will be led by Dennis J. Langwell, now Liberty Mutual’s chief financial officer. Kevin H. Kelley, chief executive officer of Ironshore, will be vice chairman, Global Risk Solutions, and report to David Long, Liberty Mutual’s chairman and chief executive officer.
Global Retail Markets will combine Liberty Mutual’s existing global consumer markets unit with its business insurance and accident and health organizations, formerly in commercial insurance.
Timothy Sweeney, president of global consumer markets, will head the retail unit.
Christopher L. Peirce, president of global specialty, will become Liberty Mutual’s chief financial officer. Other corporate functions will continue to be led and operated without changes, the statement said.
“The sale of the Life Company allows us to fully focus on our property and casualty business,” Mr. Long said in the statement.