Liberty Mutual to acquire State Auto Group

Liberty Mutual Insurance has agreed to acquire US-based super-regional auto insurer  State Auto Group, as it looks to "significantly expand" its position in the personal lines and small commercial market.

Under the agreement, State Auto mutual members will become mutual members of Liberty Mutual, which will acquire all of the publicly held shares of common stock of State Auto Financial for $52 per share in cash.

Through the deal, Liberty Mutual will add $2.3 billion in premium and a network of approximately 3,400 independent agencies across 33 states.

" State Auto Group's capabilities and product expertise are an ideal complement to Liberty Mutual's domestic personal lines and small commercial business," said Liberty Mutual chairman and chief executive officer David Long.

The deal is expected to close in 2022, subject to necessary approvals.

In connection with the merger of State Auto Financial, State Auto Mutual has entered into a voting agreement with Liberty Mutual under which it has agreed to vote its 58.8 percent interest in State Auto Financial in favor of the merger.

State Auto president and CEO Mike LaRocco said: "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."

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