March 14, 2003 by Canadian Underwriter
Liberty Health, the Canadian life-health operation of Liberty Mutual Group subsidiary Liberty International, is being sold to Maritime Life, a Canadian company owned by John Hancock Financial Services Inc.
The move is part of Liberty International’s move to focus on p&c insurance, the company says in a press release. While Liberty Health has been an outstanding niche company for us, Liberty International’s strategic focus is on personal, small commercial and global specialty lines of property and casualty insurance,” says Thomas C. Ramey, Liberty Mutual Group executive vice president and president of Liberty International. “”With consolidation taking place in the Canadian life and health insurance industry, at some future point we would have faced the choice to acquire a group life and health company to remain competitive, or sell Liberty Health.”
Liberty Health is a $700 million annual premium operation, and will bring Maritime Life to more than $2 billion in annual premium. Maritime Life expects to pay $140 million for the company, with the deal to close in July, 2003 subject to regulatory approval.