WHAT’S AHEAD FOR LIBERTY MUTUAL, OHIO CASUALTY ?

For agents, the Liberty Mutual Agency Markets acquisition of Ohio Casualty acquisition promises to be a matter of addition, not subtraction.

For the most part, Ohio Casualty’s 3,400 agents will join with and not replace or be replaced by Liberty Mutual’s existing 6,500 independent agents, according to Gary Gregg, president of Liberty Mutual Agency Markets.

“The idea is not to subtract but add,” said Gregg.

This is possible because Ohio Casualty’s strength in Midwest and Atlantic regions largely complements rather than overlaps with the territories where Liberty Mutual Agency Markets regional carriers write. Ohio Casualty writes in 48 states but its $1.4 billion in business is concentrated in Midwest and Atlantic states including Ohio, Kentucky, Pennsylvania, Virginia, Mary-land and the District of Columbia.

There is “very little overlap” among agencies for the two companies — less than 15 percent by location, Gregg maintained. There is no plan to systematically drop agencies, he said, adding, “Companies and agencies are always reevaluating their relationships but this is not about cutting, it’s about growing.”

Gregg thinks that the fact that this is primarily a growth move and not an expense savings move should help his company retain Ohio Casualty agencies and their accounts. “This is not a rolling over of a book; this is adding together Ohio Casualty with our business.”

Under the Liberty Mutual structure, each regional agency company operates fairly independently with its own branding and management and this will continue now that Ohio Casualty has been brought into the fold. “This is what makes us unique, bringing the local knowledge and decision making of regional companies that agents like together with the national advantages of our capital, our ratings, our ability to recruit and our talent,” according to Gregg.