Radnor’s Lincoln Financial Group recently announced its intent to pay $3.3 billion to buy Liberty Life Insurance from Liberty Mutual Insurance Group, writes Jessica Seaman for the Philadelphia Business Journal.
According to Lincoln Financial President and CEO Dennis R. Glass, the acquisition will enable Lincoln Financial to scale its business and add to its range of products.
“Like Lincoln, Liberty is already a Top 10 group benefits provider, so we will be significantly increasing our scale in the business,” he said. “Our business models are highly complementary, and we will now have comprehensive product and service offerings across all-size employers.”
Glass added that from an enterprise perspective, the acquisition will speed up the company’s strategy of increasing its mortality and morbidity sources of earnings.
“We expect a greater diversification of earnings will provide better stability during periods of capital market uncertainty, while still enabling us to capitalize on significant long-term growth opportunities and market tailwinds,” he said.
As part of the deal, Lincoln will keep Liberty’s group benefits business, while reinsuring Liberty’s individual life and annuity business with Protective Life Insurance.
Read more about the Lincoln Financial Group in the Philadelphia Business Journal by clicking here.