Posted on 11 May 2010
Liberty Mutual Group om Monday announced that its subsidiary, Liberty Mutual Agency Corporation (LMAC), consisting of substantially all of the operations currently conducted by its Agency Markets strategic business unit, has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for an initial public offering of shares of its common stock. The transaction requires review by the SEC, which Liberty Mutual expects will be completed in the third quarter of 2010.
LMAC offers personal and commercial lines of insurance to individuals and small to mid-sized businesses, as well as surety bonds, through independent agents. Liberty Mutual Group will own at least 80 percent of LMAC following the initial public offering and maintain a significant controlling interest going forward, while other shareholders will own up to 20 percent. The status of Liberty Mutual Holding Company Inc. (LMHC) as a mutual holding company will be unaffected by this proposed transaction. Similarly the status of the other companies in the Liberty Mutual Group will be unchanged.
"A publicly traded subsidiary representing a portion of our business offers us access to public equity markets and increases our overall financial flexibility to help us achieve our longer-term strategic objectives,” said Edmund F. Kelly, Liberty Mutual Group Chairman, President and Chief Executive Officer.