State Auto Group is now owned by Liberty Mutual Insurance. Insurance defense law firms that are on the State Auto panel counsel program will want to monitor their portfolio of cases closely.
Through the mutual transaction and merger, originally announced in July 2021, Liberty Mutual adds $2.3 billion in premium and becomes the second-largest carrier in the independent agent channel. The two companies will continue to operate as separate businesses throughout most of 2022.
State Auto Insurance Group employs approximately 2,000 associates and markets its products through more than 3,000 independent agencies in 33 states. Personal lines protection includes homes, condos, autos, and boats. Business insurance includes but is not limited to, premises liability, EPLI, products liability, business auto, workers’ compensation, and cyber liability. State Auto also offers a line of farm insurance. Regional headquarters are located in Austin, TX; Bloomington, MN; Carmel, IN; Columbus, OH; Goodlettsville, TN; and Hunt Valley, MD.
The top producing states for State Auto Insurance Company are Texas, Ohio, Kentucky, Michigan, South Carolina, Arkansas, Minnesota, Tennessee, Mississippi, Maryland, Illinois, Indiana, Missouri, North Carolina, and Pennsylvania.
State Auto offers industry specific coverage options for a range of industries, including food, metals, winery, contracting, distribution, hospitality, manufacturing, real estate, restaurants, retail, services, and construction.
Implications for State Auto Panel Counsel Law Firms
The inflow of cases, both in terms of volume and frequency, can be a key metric to watch as insurance claims departments merge. While it is too early to discuss the specifics for State Auto panel counsel members, P&C insurance industry history indicates that claims departments ultimately merge or fall under parent company management. Sometimes this is the integration plan from the beginning in pursuit of corporate synergies, or it could result from management turnover within the ranks of the acquired company.
In any event, it is a best practice for State Auto panel member and other insurance defense law firms to start an aggressive business development campaign targeting other auto insurance carriers. If the inflow of work from State Auto starts to decline, the law firm will want to replace it with new files to maintain billable hours for associates and partners. It takes a while to get a new account, so starting early is recommended.
Background on Liberty Mutual for State Auto Panel Members
Liberty Mutual Holding Company Inc., the parent corporation of the Liberty Mutual Insurance group of entities, is a diversified global insurer and sixth largest property and casualty insurer in the U.S. based on 2020 direct written premium. The company also ranks 71on the Fortune 100 list of largest corporations in the U.S. based on 2020 revenue. LMHC, through its subsidiaries and affiliated companies, offers a wide range of property and casualty insurance products and services to individuals and businesses alike. LMHC employs nearly 45,000 people in over 29 economies and countries throughout the world. As of December 31, 2021, LMHC had $48.2 billion in annual consolidated revenue.
Liberty Mutual offers a wide range of insurance products and services, including personal automobile, homeowners, workers’ compensation, property, commercial automobile, general liability, global specialty, group disability, reinsurance and surety, management liability, and employment practices liability (EPL). Clients can also add data theft and cyber coverage to a general liability policy to help their business recover if systems and/or customer information are exposed. As of 2020, the top three lines written by Liberty Mutual are private passenger automobile, homeowners, and commercial multiple-peril.
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Liberty Mutual to Buy State Auto, July 19, 2021
Insurance Defense Marketing Consultant for Law Firms
If your insurance defense law firm is asking how you can improve your marketing communications and business development efforts to get on more insurance panels, give us a call. We have helped more than 230 insurance defense law firms in 40 states pursue new client opportunities.
Legal Expert Connections, Inc. offers three key benefits to insurance defense law firms nationwide:
- We are the leading U.S. legal marketing agency specializing in the insurance defense market. We make it our business to identify who you need to contact at an insurance company, corporation or municipality to be considered as a panel counsel member. We accelerate your business development process by helping you focus on introducing your law firm to new prospective clients.
- You get a structured business development process. We guide your law firm through a proven three-step campaign that brings discipline, focus, and productivity to your marketing efforts.
- Increase revenue with professional, Bar-compliant legal marketing campaigns. We do the research to identify insurance panel managers, so you can focus your time on the business development process.
Contact Margaret Grisdela, an insurance defense marketing consultant, at 561-266-1030 or via email if you are a State Auto panel member and want to expand your practice. Connect with Margaret Grisdela on LinkedIn.
This article is provided for educational purposes only. It is not to be interpreted as legal advice or an opinion in regard to any topic discussed. The article should not be used as a substitute for legal advice from a licensed attorney in your state. Every situation is different and circumstances vary widely depending on the governing state law, policy provisions, and related considerations.