Mass. OKs Liberty Mutual Proposal
Nov. 28, 2001
BOSTON (AP) _ Liberty Mutual Group's proposal to become a mutual holding company cleared a final major hurdle Tuesday when Massachusetts regulators approved the plan.
The reorganization would give the company the option of issuing and selling stock in up to 49 percent of the company. Policyholders would retain the rest.
Policyholders approved the plan earlier this month despite opposition from activists who said the change would cheat policyholders out of at least $4 billion. Opponents sued to block the plan and unsuccessfully tried to prevent the company from mailing to policyholders information they claimed was misleading.
The company has said the change amounts to little more than an update of its management structure.
Liberty Mutual Fire Insurance, an affiliate of the company, still requires state approval for its conversion. That approval is expected next year.
The state Division of Insurance also gave the company permission to continue using the word ``mutual'' in its name.