Insurer Liberty bids to merge EU units
Terms and conditions for Liberty Insurance's 400 Irish employees will not be affected by a proposed cross-border merger with a related Spanish entity, the Commercial Court has heard.
Liberty Insurance, part of the US-based Liberty Mutual group of companies, is seeking permission from the court for the merger scheme.
The application, which came before the Commercial Court yesterday, is part of a plan to consolidate Liberty's Irish, Portuguese and Spanish insurance businesses.
In 2011 Liberty acquired Quinn Insurance, which had gone into administration 12 months earlier.
LIDAC, formerly Liberty Insurance Ltd, proposes to transfer non-life assurance business it currently conducts to 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 holds approximately two million policies, mostly 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 staff will become employees of LSCSR if the planned merger obtains the required approval from the court.
The matter was admitted to the fast-track commercial list by Mr Justice Robert Haughton.
The judge made the application returnable to October.