Lincoln National Corp’s (NYSE:LNC) financial services unit is to pay US$3.3bn to buy Liberty Life Assurance Company of Boston from Liberty Mutual Insurance Group.
Under the deal's terms, Lincoln Financials payment consists of US$1.45bn total net investment for the group benefits business, which includes a purchase price of US$1.02bn and US$425mln in required capital.
Significantly increases presence in group benefits market
The deal - which is expected to close in the second quarter of 2018, - also includes US$1.20bn associated with excess capital in LLAC, US$4210mln of individual life and annuity value paid by Protective Life, and US$211mln of tax items.
Lincoln’s chief executive, Dennis Glass commented: “Through this transaction, Lincoln Financial will have a significantly increased presence in the group benefits market by complementing our existing small to middle-market strengths with even deeper large case and disability expertise."
In pre-market trading, Lincoln National shares were steady at US$83.06.