Acquisitions · Life insurance and annuities
Dai-ichi's Protective acquires Liberty Life's individual life and annuity business
- Buyer
- Dai-ichi Life Holdings (via Protective Life) (Tokyo)
- Target
- Liberty Life Assurance Company of Boston (individual life and annuity business), Boston, Massachusetts
- Value
- About $1.17B (Protective's capital investment)
- Status
- Announced on January 19, 2018; completed in May 2018.
- Date
- 2018-01-19
Protective Life, the US subsidiary of Dai-ichi Life Holdings, agreed to take over substantially all of the individual life and annuity business of Liberty Life Assurance Company of Boston through reinsurance. The business came from Liberty Mutual, which sold Liberty Life to Lincoln Financial in a parallel deal. Protective put its capital investment at about $1.17 billion.
Why it matters
The deal used Protective as Dai-ichi's platform for growth in North America, adding a large block of existing policies rather than building new sales.
A three-way transaction
Lincoln Financial bought Liberty Life itself and kept its group benefits business, while the individual life and annuity block was reinsured to Protective Life Insurance Company and Protective Life & Annuity Insurance Company. The reinsurance closed together with Lincoln's purchase, after regulatory approvals.
Protective's largest deal
Protective called it the largest acquisition in its history and the third transaction it had completed since joining Dai-ichi in 2015. Dai-ichi regards the Birmingham, Alabama-based insurer as its growth platform in North America.
Sources
Kakehashi M&A News home
