Liberty Mutual to sell Western European business to Generali for $2.5bn

Liberty Mutual Insurance is selling its personal lines and small commercial insurance business in Western Europe to Italy’s  Generali for €2.3 billion ($2.5 billion).

The two companies have signed a definitive agreement for Generali to acquire Liberty Seguros, S.A. – Liberty Mutual’s business headquartered in Madrid.

The transaction includes Liberty Seguros operations in Ireland, Northern Ireland, Portugal and Spain. Liberty Mutual's other European operations (Liberty Specialty Markets, Liberty Mutual Reinsurance, Liberty Mutual Surety, Liberty IT and Hughes Insurance) are not included in this transaction and will continue to operate in their respective markets.

Liberty Seguros is Liberty Mutual’s largest operation outside of the US with premiums of € 1.2 billion in 2022, nearly 1,700 employees and branches throughout the Western European market. With a direct business in Spain, 5,600 intermediaries across the countries, and over 20 partners, Liberty Seguros has a portfolio offering modular, flexible insurance solutions for non-life and life risk products.

Liberty Mutual president and chief executive officer Tim Sweeney said: “Our dedicated Liberty Seguros employees have done a tremendous job serving our customers, brokers, agents, partners and communities -- building a highly respected and profitable business. They will be a strong addition to Generali, a leading global insurer with a strategic and adept business model.

“This decision further helps Liberty Mutual sharpen our operational focus to deliver exceptional value across our channels, products and markets. We’re grateful to our employees for their many years of hard work and are confident in their future success with Generali.”

Commenting on the deal, Moody’s vice president Christian Badorff said: “With a total consideration of €2.3 billion, the acquisition is one of the largest in Generali’s recent history and is fully in line with Generali’s strategic ambitions as it strengthens the Group’s position in Spain and Portugal and further shifts the Group’s earnings base to non-life underwriting results. Including the latest smaller acquisitions, Generali has now made full use of its budget initially allocated for potential M&A activities to support inorganic growth in its 2022-24 strategic cycle. The acquisition will have a only moderate negative impact on the Group’s very strong Solvency.”

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