Liberty Mutual Insurance has agreed to divest its life and disability insurance unit to Lincoln Financial Group for about $3.3bn.
The deal includes Liberty Life Assurance Company of Boston, which offers group disability, group life, individual life and annuity products.
The transaction is expected to be completed in the second quarter of 2018, subject to regulatory approvals and other customary closing conditions.
Liberty Mutual Insurance is realigning its domestic and global property & casualty (P & C) operations.
The sale of the life company will enable Liberty Mutual to focus on its P & C business.
Liberty Mutual is realigning into two major P & C businesses, Global Risk Solutions (GRS) and Global Retail Markets (GRM), to improve its ability to meet the varying requirements of consumer and commercial customers.
Liberty Mutual chairman and CEO David Long said: "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.”
GRS will bring together Liberty Mutual’s Global Specialty, Ironshore, National Insurance and the Global Reinsurance Strategy Group into a single e?ntity.
Liberty Mutual CFO Dennis Langwell will lead GRS, which will have global reach, a complement of products and capabilities.
GRM will combine Liberty Mutual’s existing Global Consumer Markets with its Business Insurance and Accident & Health organizations formerly in Commercial Insurance.
It will deliver a range of individual motor, property and A & H products to consumers as well as commercial products to small businesses.
GRM will be led by Timothy Sweeney, currently president of Global Consumer Markets.
Image: Liberty Mutual’s headquarters in Boston. Photo: Courtesy of User54871/ Wikipedia.org.