Liberty Mutual Considering Sale of Europe Business for $1 Billion

Liberty Mutual Holding Co. is exploring a sale of its businesses in Spain, Portugal and Ireland, according to people familiar with the matter. This would join other American insurers who have already retreated from the region.

The US insurer is working with Bank of America Corp. on the possible divestments, which could fetch more than 1 billion euros ($1 billion), according to the people familiar with the matter. The assets could attract interest from rival European insurers, the people said.

Talks are still in early stages and may not lead to a transaction, sources said. Representatives for Liberty Mutual and Bank of America declined to comment.

Liberty Mutual would join other companies who have sold non-core markets in Europe. New York-based MetLife Inc. agreed to sell its European life insurance operations for almost $700 million to Dutch insurer NN Group NV in July 2021 in order to streamline its global business.

Liberty Mutual has been expanding its presence in the US property and casualty insurance market, including acquiring State Auto Financial Corp. at a value of about $2.3 billion earlier this year. The company is owned by its policyholders and is one of the more acquisitive insurers with that structure.

Liberty Mutual offers a wide range of insurance products in Spain and Portugal, including property and casualty, life insurance, and more. The company entered the Irish market in 2011 through an acquisition and offers personal car and home insurance, as well as business products.

This year, insurers have been responsible for around $33.4 billion worth of mergers and acquisitions, according to data from Bloomberg. The largest deal was Berkshire Hathaway Inc.'s purchase of Alleghany Corp. for $11.6 billion.