July 18, 2001 by Canadian Underwriter
Royal Bank of Canada (TSE, NYSE: RY) has announced the sale of Louisiana-based State National Fire Insurance Company to an undisclosed Louisiana company. Royal Bank had acquired State National Fire as part of its buyout of Liberty Life and Liberty Insurance Services late last year.
While no details of the sale have been released, Royal Bank says the sale was prompted because fire insurance is not a “core business” for Liberty Life. “Selling this business is consistent with our original plan for this company and is in keeping with our overall business strategy and organizational goals,” says Jim Westlake, chairman and CEO of RBC Insurance, the insurance arm of Royal Bank.
The sale is expected to close in the fall of this year, subject to regulatory approval.