Protective Life, a wholly owned US subsidiary of Dai-ichi Life, has completed the acquisition of all the individual life and annuity business of Liberty Life Assurance Company of Boston (Liberty Life).

The transaction is estimated to represent a capital investment by Protective of about $1.2bn.

Protective entered the reinsurance agreement with Lincoln Financial Group in January 2018 in conjunction with Lincoln’s takeover of Liberty Life from affiliates of Liberty Mutual Group.

Protective president and CEO Richard J. Bielen said: “We are pleased to announce the closing of our 49th life and annuity acquisition, the largest in our history.

“The addition of this stable, high-quality block of business provides us with a solid stream of earnings along with the unique opportunity to expand our distribution network and significantly grow our retail business. It is a testament to the strength and flexibility of our acquisition capabilities here at Protective.”

Life insurance and annuity segments are considered to be cornerstones of Protective’s business. The addition of Liberty Life’s individual life and annuity business will give Protective the opportunity to grow and expand through these segments in the future.

The acquisition is the third transaction completed since Protective joined Dai-ichi in 2015. 

Dai-Chi considers Protective to be its growth platform in North America and will continue to aim for additional expansion within the region, through acquisitions and organic growth in Protective’s retail sales.

Lincoln Financial Group president and CEO Dennis Glass said: “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.

“Liberty is a respected and high-quality carrier, one with talented Group Benefits employees who will soon join our own impressive team in order to drive even greater benefit for all customers. The acquisition also aligns with our strategic priority of diversifying our sources of earnings and effectively deploying capital.”

Image: Protective Life’s headquarters. Photo: Courtesy of Protective Life Corporation.