IBM and RBC Insurance today announced that IBM has agreed to acquire Liberty Insurance Services Corp. (LIS), the U.S. business process services and solutions operations of RBC Insurance.

IBM says the acquisition will establish it as a leader in life insurance and annuity processing and administration, both in North America and globally.

Financial terms of the deal, expected to close by December 31, 2004, were not disclosed.

In addition, IBM and RBC Insurance have also agreed to enter into a long-term agreement for IBM to perform key business processes for RBC Insurance’s U.S. operations, including contact center management, policy administration, claims management and payment receipt and reconciliation.

Following the acquisition, it is expected that approximately 700 LIS employees will remain and become part of a new subsidiary of IBM.

RBC Insurance’s U.S. operations will remain based in Greenville, S.C., where it has over 200 employees. The company also has a presence in Kansas City, Mo., and a field force of approximately 400 full-time agents.

“We continue to view the United States as strategically important to the growth of our insurance business,” said Jim Westlake, group head personal and business clients Canada and global insurance for RBC Financial Group. “The acquisition of Liberty Insurance Services Corporation by IBM allows us to focus on our core insurance businesses by leveraging the experience and technology of a leading third party administrator.”


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