Mergers & Acquisitions

The deal is anticipated to make Liberty Mutual the second largest independent agency carrier in the U.S., adding $2.3 billion in premium and State Auto’s network of approximately 3,400 independent agencies.

The acquisition will allow SafeAuto to grow its platform in the non-standard space. Additionally, Progressive finalized the acquisition of transportation insurer Protective Insurance Corp. ahead of schedule.

Proposals by the Biden administration may cause agency owners interested in selling their business in the next five years to accelerate their timeline to 2021.

The deal sees Farmers assume responsibility for MetLife’s property-casualty business, expanding its reach and strengthening its position as a leading personal lines carrier.

The acquisition allows Progressive to add products for larger fleets and brings expertise in workers comp coverage for the transportation industry, which are new areas of business for Progressive.

The five major deals accounted for 100% of the fourth quarter’s total deal value, with the largest deal being the $3.94 billion acquisition of Metlife Auto & Home Insurance Agency by Zurich Farmer’s Group and Farmer’s Exchanges.

Earlier this week, Allstate announced it closed its $4 billion acquisition of National General, a North Carolina-based property-casualty insurance group. The acquisition, announced in July 2020, sees Allstate expand its personal lines market position.

When the transaction closes in early 2021, Allstate will become the fifth largest independent agency carrier.

Recent tax reform changes directly impact every taxpayer in the U.S., but may also impact agency valuations, agency operating structure, and merger & acquisition activity.

OPTIS Partners recorded 449 mergers and acquisitions in the U.S. and Canada last year—a slight dip from the record of 456 in 2015.