Insurer Liberty Mutual reported that it will acquire State Auto Group, a super-regional insurance holding company headquartered in Columbus, Ohio.
Under the terms of the agreement, State Auto mutual members will become mutual members of Liberty Mutual. Also, Liberty Mutual will acquire all of the publicly held shares of common stock of State Auto Financial for $52 per share in a cash deal of about $1 billion.
The acquisition will significantly expand Liberty Mutual’s already strong position in personal lines and small commercial insurance. It is the sixth largest auto and home insurer in the U.S. Liberty Mutual today distributes 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, Liberty Mutual will add $2.3 billion in premium and State Auto’s network of approximately 3,400 independent agencies across 33 states. This will position it to become