RBC Insurance said Monday that it had merged its core U.S. insurance businesses, Liberty Life Insurance Co. and Business Men’s Assurance Co. of America, and consolidated its brands.
The move is intended to strengthen the Royal Bank of Canada unit’s position as a nationwide life insurance carrier, providing capital leverage and increased market visibility as the company executes its U.S. growth strategy, the company said.
The post-merger company, whose legal name is Liberty Life Insurance Co., is to drop its RBC Liberty Insurance brand and operate under the brand of RBC Insurance. As South Carolina’s largest state-based life insurer, it is to maintain its headquarters in Greenville, where it has more than 200 employees. No job cuts are projected from the merger.
“This merger strengthens our balance sheet, elevates our market profile, and creates internal efficiencies that enable us to serve our clients more effectively,” David Black, the head of U.S. insurance for RBC, said in a press release.
The merger was been approved by the South Carolina Department of Insurance and is subject to approvals by other U.S. regulators. The company is licensed in all states except New York. In addition to the Greenville headquarters, it has a sales and marketing office in Kansas City, Mo., and a field force of about 300 full-time agents.
Liberty Life and BMA, a benefits provider also in Greenville that sells life, disability, and dental insurance to employers, were bought by Royal Bank of Canada in November 2000 and May 2003, respectively.
