You are here:HomeNews CenterInsurance News2007Liberty Mutual Group to Acquire Ohio Casualty

Liberty Mutual Group to Acquire Ohio Casualty

Liberty Mutual Group ("Liberty Mutual") and Ohio Casualty Corporation ("Ohio Casualty") (NASD: OCAS) today announced that they have entered into a definitive agreement pursuant...
May 8, 2007

Liberty Mutual Group ("Liberty Mutual") and Ohio Casualty Corporation ("Ohio Casualty") (NASD:  OCAS) today announced that they have entered into a definitive agreement pursuant to which Liberty Mutual will acquire all outstanding shares of common stock of Ohio Casualty for $44.00 per share in cash.  Ohio Casualty Corporation is the holding company of The Ohio Casualty Insurance Company and five other property and casualty insurance companies, which are referred to under the marketing brand Ohio Casualty Group.  Ohio Casualty Group ranks 50th among property and casualty insurers based upon net premiums written (Best's Review, July 2006), and sells personal, commercial and bond insurance products through independent agents and brokers.

The transaction is valued at approximately $2.7 billion.  Liberty Mutual intends to fund the purchase with cash on hand and short-term debt; the transaction is not subject to any financing contingencies.  The proposed transaction, which has been approved by the Boards of Directors of both companies, is subject to approval by Ohio Casualty shareholders and customary regulatory approvals and conditions, and is expected to close in the third quarter of 2007.

Following the acquisition, Ohio Casualty will be part of Liberty Mutual Group's Agency Markets business unit. 

"Under Dan Carmichael's leadership, Ohio Casualty has been transformed into a premier regional property and casualty company and is a great fit with our Agency Markets business," said Edmund F. Kelly, Liberty Mutual Group chairman, president and chief executive officer.  "Through the addition of Ohio Casualty, our regional-company independent agency business is significantly stronger and our agency relationships are strengthened.  With combined net written premium exceeding $7.3 billion following this transaction, we will become the largest regional provider of property and casualty products distributed through independent agents in the United States."

Liberty Mutual Group to Acquire Ohio Casualty Corporation (Press release 5/7/07)

Filed under: