Ohio and Indiana regulators have approved Liberty Mutual Group's $2.7 billion acquisition of Ohio Casualty Corp., which the parties said today they expect to close on Friday.
Liberty said Dwight W. Bowie, president and chief executive officer of its Peerless Insurance unit, has been named to lead the transition of Ohio Casualty Corporation to Liberty Mutual Agency Markets on a countrywide basis. Michael R. Christiansen was named to the vacancy at Peerless.
When the deal was announced in May the companies said that Liberty Mutual, which is not public, would pay $44 per share and would fund the purchase with cash on hand and short-term debt in a transaction that is not subject to any financing contingencies.
Following the acquisition, Ohio Casualty will be part of Liberty Mutual Group's Agency Markets business unit.
Edmund F. Kelly, Liberty Mutual Group chairman, president and chief executive officer, said in May that the acquisition would strengthen the firm's regional-company independent agency business and our agency relationships.
At the close of the deal Liberty Mutual "will become the largest regional provider of property-casualty products distributed through independent agents in the United States," he said.
Boston-based Liberty Mutual Group currently ranks as sixth largest property and casualty insurer in the U.S. based on 2006 direct written premium.
As of Dec. 31, 2006, Liberty Mutual Group reported $85.5 billion in consolidated assets, $74.6 billion in consolidated liabilities, and $23.5 billion in annual consolidated revenue.
Liberty Mutual Group offers personal automobile, homeowners, workers compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, assumed reinsurance, fire and surety.
The Ohio Casualty Corp. group of six companies is ranked 51st among U.S. property-casualty insurance groups based on direct written premiums written. The Group's member companies write auto, home and business insurance.
Ohio Casualty Corp. reported assets of approximately $5.7 billion on June 30.
When the acquisition was initially announced, Mark Rouck, an analyst at Fitch Ratings in New York, said, "From a strategic sense, the transaction makes sense and is a good fit with the agency markets segment of Liberty Mutual."
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