b'TABLE OF CONTENTSMERGERS & ACQUISITIONSPersonal Auto P&C Lines Continue StrongAuto) through the New York-based National Performance Amid Sector Uncertainty General for $262 million in cash. The Columbus-based Safe Auto will provide an opportunity for Following a banner year for personal auto P&CAllstate to diversify its portfolio in the non-lines in 2020, the personal auto P&C M&A marketstandard auto insurer market by bolstering its showed signs of a slow-down in 2021, but activityunderwriting offerings for riskier motorists. was ultimately buoyed by the continued interest of large private-passenger auto companies inElsewhere in the independent agent network increasing the breadth of their customer base andsector, Liberty Mutual Holding Company Inc. distribution capabilities.(Liberty Mutual) also strengthened its position with its $1 billion acquisition of State Auto Group, The 2020 personal auto P&C market was dictated bya super-regional insurance holding company a combination of countervailing trends: the ongoingbased in Columbus, Ohio, (State Auto). The COVID-19 pandemics effect on driving habits (and aacquisition was intended to bolster Liberty subsequently lower number of claims againstMutuals status as a market leader for personal insurance policies) and the continued proliferationauto and small commercial insurance lines, adding of shared-driving schemes that ultimately reducedan estimated $2.3 billion in premium and State consumer interest in auto policies. The combinationAutos network of approximately 3,400 of lockdown orders and work-from-home policies inindependent agencies across 33 states. 2020 helped the US P&C industry generate an underwriting profit for the year, but as 2021 sawNew Products and Organic Growth many of these policies and orders lifted orSpur Specialty Acquisitionsloosenedat least through the first three quartersthe year demonstrated the beginning of2021 wasmarked by the addition of new a return to normal levels. Nonetheless, in 2021, theproducts and solutions to the specialty insurance follow-on effects of these forces and the overallofferings of major industry players. influence of the pandemic on driving behavior continued to affect the personal auto P&C space,The focus by major insurance companies on accelerating a possible shift toward thestrengtheningrelationships with specialty providers predominance of usage-based coverage for bothis exemplified by The Travelers Companies, Inc.s consumers and carriers.(Travelers) acquisition of a minority stake in the Bermuda-based Fidelis Insurance Holdings Ltd. Following last years $4 billion acquisition of(Fidelis) for an undisclosed amount. Following a National General Holdings Corp. (Nationalstrong 2020 in which Fidelis expanded its insurance General), Allstate continued its push to shore upand reinsurance underwriting platform and raised revenue growth and expand its reach with$1.3 billion, Travelers saw the opportunity to make a independent agents by completing a follow-onstrategic investment in the growing specialty sector. purchase of Safe Auto Insurance Group, Inc. (Safe MAYER BROWN |17'