NU Online News Service, May 10, 12:32 p.m. EDT
Boston-based insurer Liberty Mutual Group said today that its subsidiary, Liberty Mutual Agency Corporation (LMAC), has filed with the Securities and Exchange Commission to make an initial public offering.
Liberty Mutual said that LMAC consists substantially of its agency markets strategic business unit. The company said the SEC's review of the common stock offering is expected to be completed in the third quarter of this year.
"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," Edmund F. Kelly, Liberty Mutual Group chairman, president and chief executive officer, said in a statement.
LMAC offers personal and commercial lines of insurance to individuals and small-to-midsize 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.
Liberty Mutual said the status of the mutual holding company will be unaffected by the IPO as will the status of other companies within the group.
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