Seeking to repay its debts, Liberty Mutual Holding Co. reportedly announced today that a unit providing coverage through independent agents will sell up to $1.41 billion in shares through a public offering.

Bloomberg reports this morning that Liberty Mutual Agency Corp. said in a regulatory filing that it intends to sell 64.3 million Class A shares at $18 to $20 each. Additionally, underwriters have the option to an additional 6.43 million shares, should there be sufficient demand.

Earlier this year, Liberty Mutual said that a stock market listing for the unit would boost its options to raise financing for growth. Following the offering, Bloomberg says that the parent company 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 insurer said in its filing.

Register or login for access to this item and much more

All Digital Insurance content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access