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AM Best Comments on Credit Ratings of Liberty Mutual Holding Company Inc. and Its Subsidiaries Following Announcement of State Auto Insurance Companies Acquisition

July 12, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Jul 12, 2021--

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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This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210712005781/en/

CONTACT: Elizabeth Blamble

Senior Financial Analyst

+ 1 908 439 2200, ext. 5603

elizabeth.blamble@ambest.comJennifer Marshall, CPCU, ARM

Director

+1 908 439 2200, ext. 5327

jennifer.marshall@ambest.comChristopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.comJim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 07/12/2021 04:08 PM/DISC: 07/12/2021 04:08 PM

http://www.businesswire.com/news/home/20210712005781/en