Liberty Mutual considers $1 billion sale in Latin America


Liberty Mutual Holding Co. is exploring a sale of its Latin American operations as part of the US insurer’s divestment plans from non-core markets, according to those in the know.

The Boston-based company has teamed up with JPMorgan Chase & Co. to the potential sale, which could raise about $1 billion, said the people, asking not to be identified because the discussions are private. The assets include operations in Brazil, Chile, Colombia and Ecuador, the people said.

Liberty Mutual could begin sales in the coming weeks, the people said. Some of Liberty’s assets are drawing interest from global rivals, including Zurich Insurance Group AG and Assicurazioni Generali SpA, the people said.

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The company may eventually sell the assets in one package or individually, the people said. The deliberations are still in the early stages and it is not certain that they will lead to a transaction. Representatives from Liberty Mutual, JPMorgan, Zurich and Generali declined to comment.

Liberty Mutual joins colleagues who have sold businesses in markets outside the US. New York-based MetLife Inc. agreed in July 2021 to sell some of its European life insurance business to Dutch insurer NN Group NV for nearly $700 million. This would be the second major region Liberty is trying to exit as it also examines sales of companies in Spain, Portugal and Ireland, people in the know said in November.

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Read more: Liberty Mutual reportedly considering $1 billion sale in Europe

The company, which is owned by its policyholders, has expanded into U.S. property and casualty insurance, including last year’s acquisition of State Auto Financial Corp. for a value of approximately $2.3 billion.

–With assistance from Stephan Kahl.

Copyright 2023 Bloomberg.

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