T&Cs of Liberty Insurance's 400 Irish employees not affected by proposed merger
The terms and conditions of Liberty Insurance's 400 Irish employees will not be affected by a proposed cross-border merger with a related Spanish entity, the Commercial Court heard.
Liberty Insurance DAC, part of the US-based Liberty Mutual group of companies, with a registered office at Dublin Road,Cavan, is seeking permission from the court sanctioning a cross-border merger scheme.
The application, which came before the Commercial Court on Monday, is part of the group's plans to consolidate its Irish, Portuguese and Spanish insurance businesses in Europe.
In 2011 the US insurance giant acquired Quinn Insurance, which had gone into administration some 12 months earlier.
LIDAC, formerly known as Liberty Insurance Ltd, proposes to transfer non-life assurance business it currently conducts to a Spanish entity Liberty Seguros Compania De Seguros Y Reaseguros SA (LSCSR).
As well as the transfer of business to LSCSR, the Spanish firm will also absorb LIDAC's remaining assets, liabilities and obligations.
LIDAC currently approximately two million policies, the majority of which are in Ireland, and net assets of €217,667,000.
LSCSR will also merge with Liberty Portugal.
The proposed merger will facilitate great capital efficiency within the group.
LIDAC's Irish based workers will become employees of LSCSR if the planned merger obtain the required approval from the court.
The matter was admitted to the fast track commercial list by Mr Justice Robert Haughton on Monday.
The Judge made the application returnable to October.