Liberty Mutual completes $1 billion acquisition

Liberty Mutual completes $1 billion acquisition | Insurance Business America

Liberty Mutual completes $1 billion acquisition

Liberty Mutual Insurance has announced that it has completed the acquisition of State Auto Group, a super-regional property-casualty insurance company based in Columbus, Ohio. State Auto Group distributes personal and small commercial coverages in 33 states through approximately 3,400 independent agents.

As part of the transaction, more than 2,000 State Auto employees will join Liberty Mutual’s Global Retail Markets US business unit.

Through the deal, originally announced in July, Liberty Mutual will add $2.3 billion in premium and become the second-largest carrier in the independent agent channel.

Under the terms of the agreement, State Automobile Mutual Insurance Company members became mutual members of Liberty Mutual Holding Company, and Liberty Mutual acquired all of the publicly held shares of common stock in State Auto Financial Corp. for $52 per share in an all-cash deal of approximately $1 billion. The companies will continue to operate as separate businesses for most of 2022.

“Across Liberty Mutual and State Auto, we have a shared commitment to the independent agency channel and being the carrier of choice for independent agents,” said Hamid Mirza, Liberty Mutual president and COO of Global Retail Markets US. “We are closely aligned in how we put people first, strive to make things better, and behave with integrity every day. Together, we’ll be a leader in both the personal lines and small commercial insurance markets, helping policyholders when they need it most and giving out people more opportunities to grow and thrive.”

Read next: Liberty Mutual releases Q4 and full-year 2021 results

With the completion of the acquisition, Liberty Mutual has also confirmed the appointment of Kim Garland as president of State Auto. Garland most recently served as State Auto’s senior vice president of personal and commercial lines and managing director of State Auto Labs.

“We bring together two organizations of passionate, driven and talented individuals,” Garland said. “Our combined strength allows us to significantly expand our relationships with independent agents and brokers, and make more strategic investments in the independent agent channel to continue driving profitable growth.”