Liberty Mutual to sell business units on back of strategic review

Liberty Mutual to sell business units on back of strategic review | Insurance Business

Liberty Mutual to sell business units on back of strategic review

Global property and casualty insurer Liberty Mutual has announced it is shedding two of its European units following a strategic review.

The company is set to sell its London-based Pembroke Managing Agency Limited and its Dublin-based Ironshore Europe DAC businesses, both of which were acquired through the purchase of Ironshore in May 2017. Subject to regulatory approval, both units, plus Liberty Mutual’s Dubai-based Visionary operation, will be sold to Hamilton Insurance Group.

“Given our objective of building a global, diversified specialty insurance and reinsurance organisation, our agreement with Liberty is a meaningful step towards achieving that goal,” said Hamilton CEO Pina Albo. “In addition to the opportunities this transaction presents at Lloyd’s, in Europe and in the US, we will bring together talented teams who are aligned on culture, underwriting discipline and a commitment to providing superior customer service. The result will be a company well-positioned to respond to our clients’ and the market’s needs.”

Following the strategic review, Liberty Specialty Markets will continue to serve the Lloyd’s market through Syndicate 4472, which is the third largest syndicate at Lloyd’s. It will also continue to serve the market through its other company platforms.

“For Liberty, the transaction supports our international specialty business by eliminating the multiple Lloyd’s Syndicates and business overlap that resulted from Liberty Mutual’s acquisition of Ironshore,” said Matthew Moore, president, Liberty Specialty Markets. “Clarifying our operations – including selling Pembroke and focusing on our Lloyd’s Syndicate 4472 – makes it easier for brokers and customers to partner with us to meet their risk management needs.”  

Evercore acted as the financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP acted as the legal advisor to Liberty Mutual Insurance in the transaction.