Liberty Criticizes Harleysville Deal After Offer Said to Fail

Liberty Mutual Holding Co. is asking regulators to scrutinize the sale of Harleysville Mutual Insurance Co. to a competitor after its own bid for the company was rejected, said a person with knowledge of the matter.

The offer was described in a Harleysville regulatory filing last week, with Liberty identified only as “Company B,” said the person, who requested anonymity as the negotiations were private. The insurer turned down the offer, which included a payout of $250 million to its customers, and instead agreed to a sale to Nationwide Mutual Insurance Co. in September with no customer payout.