Boston-based Liberty Mutual Group has signed a definitive agreement to acquire Prudential Financial Inc.’s U.S. personal lines property/casualty operations in 47 states, excluding its New Jersey, specialty auto and affinity businesses.
The purchase, valued at about $540 million, will make Liberty Mutual Group the eighth-largest provider of personal lines insurance in the United States, according to a statement released by the company.
The companies expect to finalize the transaction by year-end, subject to customary closing conditions and regulatory approvals.
Liberty Mutual and Prudential Financial will enter into a long-term distribution agreement to permit eligible Prudential Financial sales agents to offer Liberty Mutual’s personal lines property and casualty products. Prudential sales agents will continue to offer Prudential life insurance and financial services.
Upon completion of the transaction, Liberty Mutual will begin integrating Prudential’s $1.1 billion of automobile and homeowners premium, as well as most of Prudential’s 2,000 property and casualty employees, into its personal lines operations.
The transaction will increase Liberty Mutual’s personal lines business by 25 percent, according to the company’s personal market executive vice president J. Paul Condrin III.
Liberty Mutual’s personal lines direct written premium was $4.5 billion in 2002.
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