Liberty UK and Europe wraps up sale of insurance affiliate

Liberty UK and Europe wraps up sale of insurance affiliate | Insurance Business

Liberty UK and Europe wraps up sale of insurance affiliate

It’s official: Liberty Insurance (JSC) is no longer an affiliate of Liberty UK and Europe Holdings Limited. The latter, a Liberty Mutual subsidiary, has completed the sale of its Russian unit to PJSC Sovcombank.

That means motor insurance specialist Liberty Insurance (JSC) is now owned by the lender, which is described as the number four car loan provider in Russia. The bank said the acquisition will make its proposition to car manufacturers and car owners “more rounded” while adding another source of stable fee and commission income to Sovcombank.

The universal lender’s chief executive, however, pointed to the acquired firm’s independence. Commenting on the completion of the deal, Dmitry Gusev stated: “Sovcombank’s insurance arm will proceed as an independent, standalone legal entity.

“In all tenders held by the bank, the company will be on an equal footing with other bidders. We believe that the relations between the insurer and the bank should be guided solely by the arm’s length principle.”

Meanwhile Liberty Insurance (JSC) will be rebranded as Sovcombank Insurance, and its new owner plans to complete the renaming in the “shortest legally possible” time.

Financial details of the transaction were not disclosed.