Reinsurance News

Protective in reinsurance agreement to acquire Liberty Life and Annuity operations

19th January 2018 - Author: Luke Gallin

Dai-ichi Life Holdings, Inc.’s wholly owned U.S. subsidiary, Protective Life Corporation (Protective), has entered into a reinsurance agreement with Lincoln Financial Group, under which its life and annuity subsidiaries will acquire all of the life and annuity business of Liberty Life Assurance Company of Boston (Liberty Life).

mergers and acquisitions reinsuranceProtective subsidiaries, Protective Life Insurance Company (Protective Life) and Protective Life & Annuity Insurance Company, via reinsurance, will acquire all of the individual life and annuity business of Liberty Life, under a reinsurance transaction that will close in conjunction with Lincoln’s takeover of Liberty Life from Liberty Group affiliates.

President and Chief Executive Officer (CEO) of Protective, Richard Bielen, said; “We are excited to announce this transaction, the largest acquisition in Protective’s history. This block of life and annuity business is an ideal addition to our acquisition segment.

“Together, Lincoln and Protective bring a broad spectrum of strength and capabilities to this transaction, including long-term financial stability and most importantly, a shared focus on providing value to our customers.”

According to an announcement on the agreement, the transaction represents a capital investment by Protective of roughly $1.17 billion, and is expected to close in the second-quarter of 2018, subject to regulatory approvals.

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The addition of the Liberty Life individual life and annuity business gives Protective the opportunity to grow via these segments in the future, with the life an annuity segments being integral to the firm’s business.

Liberty Mutual Group said it is selling the Liberty Life Assurance Company of Boston to Lincoln Financial Group for around $3.3 billion, after which Lincoln Financial will retain Liberty’s Group Benefits business and reinsure Liberty’s Individual Life and Annuity business to Protective Life Insurance Company.

“For Liberty, the transaction is an integral part of our overall strategy to focus on our property and casualty business,” commented David H. Long, Liberty Mutual Chairman and Chief Executive Officer.

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