Protective in $1.7bn reinsurance deal
Protective Life Corporation, a wholly owned US subsidiary of Dai-ichi Life Holdings, agreed with Lincoln Financial Group to acquire via reinsurance the individual life and annuity business of Liberty Life Assurance Company of Boston.
The reinsurance transaction will close in conjunction with Lincoln’s acquisition of Liberty Life from affiliates of Liberty Group.
The transaction represents a capital investment by Protective of approximately $1.17 billion.
Richard Bielen, Protective’s CEO, 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.”
Protective Life Corporation provides insurance and investment products throughout the US. The life and annuity segments are a cornerstone of Protective’s business. The addition of the Liberty Life individual life and annuity business provides Protective the opportunity for growth and expansion through these segments in the future, according to the Jan. 19 press release.
The closing of the transaction is expected to occur in second quarter 2018, subject to the receipt of regulatory approvals and satisfaction of customary closing conditions.
When closed, this acquisition will be the third transaction completed since Protective joined Dai-ichi in 2015. Protective continues to aim for further expansion within in the US through both acquisitions and organic growth.
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