Royal Bank sells U.S. insurance unit

Royal Bank of Canada has agreed to sellits U.S. insurance division Liberty Life to Bermuda-based reinsurer Athene Holding Ltd. for $628.1million US.

Reinsurers back upretail insurers, which want to reduce their exposure to the risk of having to make sudden large benefits payments, for example, in the case of Hurricane Katrina's devastation of New Orleans in 2005.

Canada's biggest bank said Fridaythe sale of Liberty Life Insurance will lead it to book a loss of $115 million US under Canadian accounting rules.

RBC said it also expects to take a loss of $405 million US under U.S. accounting rules.

The deal, which still requires regulatory approval, is due to close early next year.