Liberty Mutual Insurance has signed an agreement with State Automobile Mutual Insurance Company, and State Auto Financial Corporation to acquire State Auto Group.
Domiciled in Columbus, Ohio, State Auto Group is a super-regional insurance holding company.
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Under the terms of the agreement, Liberty Mutual will acquire all of the publicly held shares of common stock of State Auto Financial for $52 per share in cash.
Concurrently, State Auto mutual members will become mutual members of Liberty Mutual.
Liberty Mutual expects the acquisition to strengthen its position as a provider of personal lines and small commercial insurance.
The insurer noted that through the deal, it will add $2.3bn in premium and the network of approximately 3,400 independent agencies across 33 states.
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By GlobalDataIt will allow Liberty Mutual to become the second-largest carrier in this key distribution channel.
Liberty Mutual chairman and CEO David Long said: “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,”
State Auto president and CEO Mike LaRocco said: “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 Financial board of directors and the State Auto Mutual board of directors approved the deal, which is expected to close in 2022.
