Liberty Mutual to acquire State Auto Group for $52 per share
Liberty Mutual announced its plans to acquire State Auto , a super-regional insurance holding company headquartered in Columbus, Ohio.
According to the insurer, the acquisition will expand its position in personal lines and small commercial insurance as it currently distributes its Safeco Insurance personal auto, homeowners and specialty products, and Liberty Mutual small business insurance through more than 10,000 independent agencies countrywide. Through the deal, it will add $2.3 billion in premium and State Auto’s network of approximately 3,400 independent agencies across 33 states and is expected to become the second-largest carrier in this key distribution channel .
The news comes on the heels of Allstate’s announcement last month that it would buy SafeAuto for $300 million to expand its independent agent distribution channel.
“State Auto Group’s capabilities and product expertise are an ideal complement to Liberty Mutual’s domestic personal lines and small commercial business, and we welcome 2,000 talented associates to our family. Equally appealing are its values. For almost a century, State Auto has celebrated a culture of caring for people, exceptional service and deep philanthropy, mirroring our purpose to help people embrace today and confidently pursue tomorrow.” – Liberty Mutual Chairman and Chief Executive Officer David Long.
“The opportunity to join the Liberty Mutual organization is a direct result of the incredible work of the State Auto team, beginning with the transformation of our business and culture that began in 2015. We’ve become a digital provider of auto, home and business insurance while remaining fully committed to the independent agency system, as we’ve been since our founding 100 years ago. Our partnership with Liberty Mutual will further that commitment to independent agents and contribute to the collective success of our agents, policyholders, shareholders and associates.” – State Auto President and CEO Mike LaRocco.