Liberty Mutual Group is postponing the initial public offering of stock in Liberty Mutual Agency Corp., citing "the stalled economic recovery, volatile stock market and undervalued property and casualty insurance stock prices."

The Boston-based company said the economic conditions have created an "unfavorable environment for receiving appropriate value for the business."

"The delay will not impact our business or our day-to-day operations," said Edmund F. Kelly, Liberty Mutual Group chairman and chief executive officer. "While we still believe this transaction is a useful step in giving the group additional capital flexibility, we have more than adequate capital to conduct our business successfully."