It announced the completion of its State Auto acquisition on March 1st
It’s official – Boston-based Liberty Mutual is now the second-largest carrier in the independent agency channel. The company announced on March 1st that it has completed its acquisition of State Auto Group, first reported by Agency Checklists back in July. With the completion of its acquisition, the insurer now adds approximately 3,400 more independent agents to its network, as well as an additional $2.3 billion in premium.
“Across Liberty Mutual and State Auto, we have a shared commitment to the Independent Agency channel and being the carrier of choice for independent agents,” said Liberty Mutual President & COO, Global Retail Markets US, Hamid Mirza. “We are closely aligned in how we put people first, strive to make things better, and behave with integrity every day. Together, we’ll be a leader in both the personal lines and small commercial insurance markets, helping policyholders when they need it most and giving our people more opportunities to grow and thrive.”
Under the terms of the agreement – which received all required regulatory approvals – State Automobile Mutual Insurance Company members became mutual members of Liberty Mutual Holding Company Inc. and Liberty Mutual acquired all of the publicly held shares of common stock of State Auto Financial Corp. (NASDAQ: STFC) for $52 per share in an all-cash-deal of approximately $1 billion. The companies will continue to operate as separate businesses throughout most of 2022.
“We bring together two organizations of passionate, driven, and talented individuals,” added Mr. Mirza. “Our combined strength allows us to significantly expand our relationships with independent agents and brokers, and make more strategic investments in the independent agent channel to continue driving profitable growth.”
New State Auto President also announced
In addition to announcing the completion of the acquisition, Liberty Mutual also announced the appointment of Kim Garland as the new president of State Auto, effective immediately. Most recently, he had served as the company’s senior vice president of personal and commercial lines and managing director of State Auto Labs. In addition to Mr. Garland, more than 2,000 State Auto Employees also join Liberty Mutual’s Global Retail Markets US business unit.
Before joining State Auto, Mr. Garland was the chief product officer for AIG’s Global P&C Consumer Division. Prior to joining AIG, he managed the personal auto business at Safeco prior to its 2008 acquisition by Liberty Mutual, during which he also started Safeco’s former innovation company.
Mr. Garland first began his insurance career at GEICO, where he held actuarial, product management roles and customer service roles. He is a member of the board of directors of Rev1 Ventures, a Columbus-based start-up accelerator and venture capital fund. Garland is a Fellow of the Casualty Actuarial Society (FCAS), with an undergraduate degree from Florida State University and a graduate degree from the University of Virginia, both in Mathematics.
“Kim has been instrumental in the transformation that we began in 2015, and he’s the right person to lead State Auto into a new future,” said State Auto Financial Corporation’s Chairman, President and CEO Mike LaRocco. “He’s produced results in regional, national and global companies and developed considerable experience in driving innovation both inside and outside the insurance industry. I know Kim will be focused every day on State Auto’s growth and profitability, an effective transition and the success of the State Auto team.”