Liberty Mutual has announced that it has agreed to buy State Auto Group Insurance. Despite the name, State Auto Group insures homes and businesses in addition to autos. It is Coast 2 Coast Public Insurance Adjuster, LLC's position that fewer insurance carriers equates to less competition and innovation in the insurance industry and ultimately, not in a policy holder's best interest.
The acquisition is expected to make Liberty Mutual the second largest independent agency carrier in the U.S. according to the "Big I, Independent Agent" online magazine.
The acquisition is the latest change in the insurance market impacting independent agencies, with Progressive's purchase of transportation insurer Protective, InsurTech's high-profile acquisitions and Allstate's spate of acquisitions including the purchase of Esurance.
Under the agreement, State Auto mutual members will become mutual members of Liberty Mutual, which would acquire all the publicly held shares of common stock of State Auto Financial for $52 per share in cash, almost triple its closing price of $17.26 on Friday. The deal is expected to close in 2022.