Liberty Mutual Signs Agreement To Acquire Summit Holding Southeast

Liberty Mutual Group, the Boston-based parent company of Liberty Mutual, has signed an agreement to acquire Summit Holding Southeast, Inc. According to William B. Bull, Summit's CEO, complete ownership of all operating entities of the holding company will be transferred to Liberty Mutual, where it will be included in the Liberty Mutual pool, which is currently rated "A+" (Superior) by A.M. Best Co.

"This merger will be a win-win for both companies," said Bull. "It will provide Liberty Mutual a quality operation in Florida, dedicated to the agent community, while giving Summit the financial strength to secure its future. There are no plans to change Summit's method of operating which has proven so successful over the past 20 years, and I look forward to leading Summit under its new ownership."

Pursuant to the terms of the agreement, Liberty Mutual will pay $33.00 for each of approximately 5.8 million outstanding shares of Summit's common stock. In addition, upon consummation of the transaction, the outstanding shares of Series A Preferred Stock of Summit will be redeemed. The acquisition is subject to the approval of Summit Holding Southeast stockholders, the Securities and Exchange Commission, the Department of Justice and the Florida Department of Insurance. It is expected to be finalized during the third quarter of 1998.

Summit Holding Southeast, formed in November 1996, provides a variety of managed care workers' compensation products and services to employers and self-insured groups, including the Florida Retail Federation Self Insurance Fund. Including the self-insurance funds, Summit is the third-largest workers' compensation carrier in Florida representing approximately 7 percent of the state market. Total annualized premiums under management were more than $202 million, as of March 31, 1998.

Edmund F. Kelly, president and chief executive officer of Liberty Mutual Group, said, "We are very pleased to have Summit join the Liberty Mutual Group. Summit's reputation for high quality service, its knowledge of the Florida marketplace, its exceptional management team, and the strength of its agency and brokerage distribution system position it well for continued success."