Just got this from RBC and thought you guys would like to know:
October 28, 2010
To our valued agents and distribution partners:
On Friday, Oct. 22, RBC announced the sale of Liberty Life Insurance Company, its U.S. life insurance business, to Athene Holding Ltd. The transaction is subject to regulatory approvals and is targeted to close during the first quarter of 2011. You can read our press release at: RBC Royal Bank - Investor Relations
While we have a strong distribution network and have significantly grown our business under the RBC brand, Liberty Life lacks the scale required to build and maintain a competitive portfolio of insurance and annuity products in the United States. Combined with a more stringent regulatory environment and increased capital requirements, RBC made a strategic decision to divest this part of its insurance business. As soon as practical after closing, Liberty Life will stop selling new business. Until then, we will continue to operate as usual.
Although we will be ending our retail life insurance and annuity operations, you can be confident in the security and performance of business you place with us right up to close. Athene is well capitalized and its seasoned management team has years of experience managing the assets and liabilities of life insurance companies.
In conjunction with the sale, Liberty Life is reinsuring all its life and health business to Protective Life Insurance Company. Protective Life, with annual revenues of $3 billion and assets of $42.3 billion, is rated A+ (Superior) by A.M. Best and A (Strong) by Fitch Ratings.
A portion of the annuities will be reinsured to Athene Life Re Ltd, a Bermuda based subsidiary of Athene. Athene Life Re currently has $140 million of capital and surplus, and will have over $250 million upon completion of the transaction.
Athene is committed to keeping Liberty Life financially strong and highly rated, and equally committed to your clients' continued satisfaction. Guarantees and other provisions of our life insurance and annuity contracts will remain in place. Even policyholder service will continue uninterrupted and unchanged.
As always, our commitment to personal service is the foundation of our promise to you. Please feel free to contact us at 888-262-8131. We'll be happy to address your questions and concerns.
Guy H. Smith III
NOTE ON DISTRIBUTION OF THIS MESSAGE:
All agents appointed with Liberty Life with an operational e-mail address on file should receive a copy of this message. To ensure that all of your important contacts receive this message, we do encourage you to forward this immediately to anyone you feel must receive this notice.
A print version of this message will be mailed late next week to all agents appointed with Liberty Life. You may view a copy of this print message here: