BOSTON, March 1, 2022 /PRNewswire/ -- Liberty Mutual
Insurance has completed the acquisition of State Auto Group, a
super-regional property and casualty insurance holding company
headquartered in Columbus, Ohio
that distributes personal and small commercial coverages in 33
states through approximately 3,400 independent agents. More than
2,000 State Auto employees will join Liberty Mutual's Global Retail
Markets US business unit.
Through the mutual transaction and merger, originally
announced in July, Liberty Mutual adds $2.3 billion in premium and becomes the
second-largest carrier in the independent agent channel.
Under the terms of the agreement – which received all required
regulatory approvals – State Automobile Mutual Insurance Company
members became mutual members of Liberty Mutual Holding Company
Inc. and Liberty Mutual acquired all of the publicly held shares of
common stock of State Auto Financial Corp. (NASDAQ: STFC) for
$52 per share in an all-cash-deal of
approximately $1 billion. The
companies will continue to operate as separate businesses
throughout 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 Liberty Mutual President
& COO, Global Retail Markets US, Hamid
Mirza. "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 our people more opportunities to grow and
thrive."
With the completion of the acquisition, Liberty Mutual also
confirms the immediate appointment of Kim
Garland as president of State Auto. Garland was most
recently the company's senior vice president of personal and
commercial lines and managing director of State Auto Labs. He
added, "We bring together two organizations of passionate, driven,
and talented individuals. 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."
Waller Helms Advisors LLC and Goldman Sachs & Co. LLC acted
as financial advisors and Skadden, Arps, Slate, Meagher & Flom
LLP acted as legal advisor to Liberty Mutual in the
transaction.
Houlihan Lokey Capital, Inc. acted as financial advisor and
Kirkland & Ellis LLP acted as legal advisor to the Special
Committee of Independent Directors of State Auto Financial Corp. in
the transaction.
Keefe, Bruyette & Woods, a Stifel Company, and BofA
Securities, Inc. acted as financial advisors and Squire Patton
Boggs (US) LLP acted as legal advisor to the Special Committee of
Independent Directors of State Auto Mutual in the transaction.
About Liberty Mutual Insurance
At Liberty
Mutual, we believe progress happens when people feel secure. By
providing protection for the unexpected and delivering it with
care, we help people embrace today and confidently pursue
tomorrow.
In business since 1912, and headquartered in Boston, today we are the sixth largest global
property and casualty insurer based on 2020 gross written
premium. We also rank 71 on the Fortune 100 list of largest
corporations in the U.S. based on 2020 revenue. As of
December 31, 2021, we had
$48.2 billion in annual consolidated
revenue.
We employ over 45,000 people in 29 countries and economies
around the world. We offer a wide range of insurance products and
services, including personal automobile, homeowners, specialty
lines, reinsurance, commercial multiple-peril, workers
compensation, commercial automobile, general liability, surety, and
commercial property.
For more information, visit www.libertymutualinsurance.com.
Media
Contact:
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Glenn
Greenberg
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617-574-5874
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mediarelations@libertymutual.com
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SOURCE Liberty Mutual Insurance