Liberty, Reliance Group to Sell Off Their Insurance Businesses

Two U.S. companies, Liberty Corp. and Reliance Group Holdings Inc., said Monday that they were selling insurance businesses as part of shifts in strategic direction.

Liberty Corp., a broadcasting and insurance holding group, said it agreed to sell its insurance units to Royal Bank of Canada for $650 million.

Reliance Group, an insurance company being purchased by Leucadia National Corp., said it would sell its directors’ and officers’ liability insurance and its inland marine, excess and surplus insurance product lines to Hartford Financial Services Group Inc. Terms were not disclosed.

The moves are part of a series of reorganizations and acquisition proposals involving U.S. insurers in recent weeks. Over the weekend, Amsterdam-based ING Group said it had ended exclusive discussions with Aetna Inc. on a deal to buy the No. 1 U.S. health insurers’s financial services and international businesses, reportedly after offering about $7.5 billion.

Greenville, S.C.-based Liberty also said its Cosmos Broadcasting subsidiary would buy another Southern U.S. broadcaster, Jackson, Miss.-based Civic Communications, for $204 million in cash, as the company launches a plan to focus solely on broadcasting.

Liberty’s stock jumped $5.31 to close at $43.44 on the New York Stock Exchange. Reliance Group’s stock added 6 cents to close at $1.81, while Hartford Financial shares closed up $1.75 at $55.31, both on the NYSE.