Liberty Mutual selling Liberty Life Assurance Co.By KIMBERLEY HAAS
Union Leader Correspondent
January 20. 2018 2:42AM
DOVER — Liberty Mutual is selling Liberty Life Assurance Company of Boston to Lincoln Financial Group for $3.3 billion, and the sale may affect those working at the Dover campus.
On Friday morning, officials in Dover were told the sale does not include real estate in the Garrison City, but there are about 1,000 employees in the life insurance unit locally.
Mayor Karen Weston said it is still not clear if anyone will be laid off as a result of the sale.
“A lot of people don’t let employees know they’re going to be laid off because they want them to produce,” Weston said. “I feel really bad for these folks.”
The announcement comes just seven weeks after Liberty Mutual announced it was restructuring and 620 information technology jobs would be eliminated. The company said affected employees were offered other jobs or could be retrained.
Weston said at that time she was hopeful everyone affected by the changes could stay with the insurance company, which has a large presence in the community of Dover.
Holly Fair, the director of Corporate Communications at Lincoln Financial Group in Radnor, Pa., emphasized Friday afternoon that the two businesses are poised for growth as one operation and that they are committed to keeping employees informed about what is transpiring.
“In the coming months leading up until the completion of the acquisition, our focus will be to develop integration plans for the two businesses. We are committed to transparency with all employees of both companies during this process,” Fair said.
Dennis Glass, president and CEO of Lincoln Financial Group, said in a news release Friday morning that Liberty has talented employees who will be joining their team.
“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,” Glass said.
David Long, Liberty Mutual chairman and CEO, said the acquisition positions each company to expand on its core strengths, profitability and market presence.
“For Liberty, the transaction is an integral part of our overall strategy to focus on our property and casualty business,” Long said in a statement.
Liberty Mutual still offers customers auto, motorcycle, home, renters and condo insurance.
According to a presentation created for Lincoln Financial Group investors, the sale was funded with $946 million in cash, and the company acquired $500 million in new debt for a $1.446 billion total net investment.
The acquisition is expected to be completed in the second quarter of this year, pending regulatory approvals and other customary closing conditions.