Liberty Mutual Agency plans to trade on the Nasdaq under the symbol LMAC. Citi and BofA Merrill Lynch are underwriting the deal.
Parent company Liberty Mutual in May said that a stock market listing for the unit would boost its options to raise financing for growth. Following the offering, the parent will have about 98% of voting rights and 82% of the subsidiary’s equity.
“We intend to use the net proceeds to us, before expenses, of this offering to repay a portion of indebtedness that we owe or will owe to Liberty Mutual,” the unit said today in the filing.
Liberty Mutual Agency posted net income of $1 billion last year, according to the filing. Revenue was $10.9 billion, about one-third of the parent company’s total. The insurance carrier is the second-largest writer of property/casualty insurance distributed through independent agencies in the U.S., according to the filing.