US insurer, Liberty Mutual Holding Company (LMHC), is exploring a sale of its businesses in Spain, Portugal and Ireland, according to Bloomberg News sources.
People familiar with the matter – who have asked not to be identified as discussions are private – have revealed that LMHC is working with Bank of America Corp. on the possible divestments, which could fetch more than $1 billion.
The assets could attract interest from rival European insurers, the people said, adding that talks are still in early stages and may not lead to a transaction.
Bloomberg approached Liberty Mutual and Bank of America representatives for comments but have declined to provide one.
Liberty Mutual would join other American peers who have sold non-core markets in Europe, the media company noted. New York-based MetLife Inc. in July 2021 agreed to sell its European life insurance operations for almost $700 million to Dutch insurer NN Group NV to streamline its global business.
The insurer sells everything from property and casualty to life insurance in Spain and Portugal through agents, banks and affiliates, according to its website. The company entered Ireland through an acquisition in 2011 and offers personal car and home insurance there, as well as business products.
It has also been bulking up in US property and casualty insurance, including acquiring State Auto Financial Corp. at a value of about $2.3 billion earlier this year, Bloomberg added. The company is owned by its policyholders and is one of the more acquisitive insurers with that structure.