Best’s News & Research Service - July 12, 2021 03:52 PM (EDT)
AM Best Comments on Credit Ratings of Liberty Mutual Holding Company Inc. and Subs Following State Auto Acquisition Announcement
- July 12, 2021 03:52 PM (EDT)
Oldwick //BestWire// - AM Best has commented that the Credit Ratings of Liberty Mutual Insurance Companies, Liberty Mutual Holding Company Inc. (Liberty Mutual) and Liberty Mutual Group, Inc. remain unchanged following the July 12, 2021, announcement that Liberty Mutual has reached a definitive agreement to acquire State Auto Insurance Companies.
Under the terms of the agreement, Liberty Mutual will acquire all of the publicly held shares of common stock of STFC for $52 per share or approximately $1.0 billion in a cash transaction. The deal is expected to close in 2022 pending State Auto Mutual Insurance Company (State Auto Mutual) member and State Auto Financial Corporation (STFC) shareholder approval, as well all required regulatory approvals and other customary closing conditions. In connection with the merger, State Auto Mutual has agreed to vote its 58.8% interest in STFC in favor of the merger. With the transaction, Liberty Mutual will realize $2.2 billion in net written premium and State Auto’s network of approximately 3,400 independent agencies across 33 states, as well as materially enhance Liberty Mutual’s presence in the personal and small commercial insurance lines of business.
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