RBC to sell Liberty Life for $628.1 million

TORONTO (BestGrowthStock) – Royal Bank of Canada (RY.TO: ) said on Friday it will sell its U.S. Liberty Life Insurance unit to Bermuda-based Athene Holding for $628.1 million, which is less than Royal paid for the business a decade ago.

RBC, Canada’s largest bank, said it will take a loss on the sale of about $115 million on a Canadian accounting basis and a loss of $405 million under U.S. accounting rules.

RBC bought Liberty for $650 million a decade ago.

The bank has been mulling options for its struggling U.S. operations, which are largely based in the U.S. Southeast. It has focused of late on building out its European wealth management and wholesale banking operations.

The transaction is expected to close early next year.

Shares of Royal were down 7 Canadian cents at C$56.24 on the Toronto Stock Exchange on Friday morning.

($1=$1.02 Canadian)

(Reporting by Cameron French and Pav Jordan; editing by Peter Galloway)

RBC to sell Liberty Life for $628.1 million