Boston-based Liberty Mutual Group is planning an initial public offering for its subsidiary, Liberty Mutual Agency Corporation (LMAC).
Operating through independent agents, LMAC will conduct business currently performed by Liberty’s Agency Markets strategic business unit and offer personal and commercial lines of insurance to individuals and small to mid-sized businesses, as well as surety bonds. Following the IPO, Liberty Mutual Group will retain a significant controlling interest in LMAC, owning at least 80% of it shares. The status of Liberty Mutual Holding Company Inc. and the other companies in the Liberty Mutual Group will be unchanged by the IPO.
Liberty Mutual Group Chairman, President and CEO Edmund Kelly says the influx of capital will better position the company. "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,” Kelly said in a statement.
Liberty has filed an IPO registration statement with the U.S. Securities and Exchange Commission (SEC) and expects the offering to be completed in the third quarter of 2010.
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