T&Cs for 400 Irish employees of Liberty Insurance will not be affected by proposed merger
The terms and conditions of the 400 Irish employees of Liberty Insurance DAC will not be affected by a proposed cross-border merger with a related Spanish entity, the High Court has heard.
Liberty Insurance DAC which is part of the US-based Liberty Mutual group of companies and has a registered office at Dublin Road, Cavan. is seeking permission from the High Court sanctioning a cross-border merger scheme.
The application, which came before the Commercial Court today as part of the group's plans to consolidate its Irish, Portuguese and Spanish insurance businesses in Europe.
In 2011 the US insurance giant acquired Quinn Insurance, which had gone into administration some 12 months earlier.
LIDAC, formerly known as Liberty Insurance Ltd, proposes to transfer non-life assurance business it currently conducts to a Spanish entity 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 has approximately two million policies, the majority of which are in Ireland, and net assets of €217,667,000.
In addition to acquiring the Irish based company, LSCSR will also merge with Liberty Portugal.
The proposed merger will facilitate great capital efficiency within the group.
As part of the proposed merger LIDAC's Irish based workers will become employees of LSCSR, should the planned merger obtain the required approval from the court.
LIDAC, represented in Court by James Doherty SC, also told the court that its workers will retain their current labour conditions, will enjoy the same rights and benefits and will not be prejudiced in any way by the merger.
The matter was admitted to the fast track commercial Court list by Mr Justice Robert Haughton on Monday.
The application will come back before the court in October.
