Liberty Mutual has announced a realignment of its P&C underwriting operations as it agreed to sell its life business in a $3.3bn deal.
The reorganised structure will see the establishment of two units.
Liberty Mutual Global Specialty, Ironshore, National Insurance and the Global Reinsurance Strategy Group will be brought together into a single entity called Global Risk Solutions (GRS).
Incumbent Liberty Mutual CFO Dennis Langwell will lead GRS, while Ironshore CEO Kevin Kelley will assume the new role of vice chairman of the newly established unit. Kelley will report to Liberty Mutual CEO David Long.
The company said that Christopher Peirce, currently president of global specialty, will replace Langwell as its CFO.
Meanwhile, Global Retail Markets (GRM) will combine Liberty Mutual’s existing global consumer markets with its business insurance and accident & health (A&H) organisations formerly in commercial insurance.
Liberty’s GRM business will offer individual motor, property and A&H products to consumers as well as commercial products. The division will be led by current president of global consumer markets Tim Sweeney.
The structure changes came as Liberty Mutual announced that it had struck a deal to sell its life business to Lincoln Financial Group for approximately $3.3bn.
The companies expect to complete the transaction in the second quarter of 2018, pending regulatory approval.
Long said: “The sale of the life company allows us to fully focus on our property and casualty business.”
“The realignment will make it easier for our customers to access the full breadth of the personal, commercial, specialty and reinsurance products that Liberty has to offer.”
Upon completion of the transaction, Lincoln Financial will retain Liberty’s group benefits business and reinsure Liberty’s individual life and annuity business to Protective Life Insurance Company.