Liberty Mutual Group, more commonly known by the name of its primary line of business, Liberty Mutual Insurance, is an American diversified global insurer, and the fourth-largest property and casualty insurer in the United States. It ranks 76th on the Fortune 100 list of largest corporations in the United States based on 2013 revenue. Based in Boston, Massachusetts, it employs over 50,000 people in more than 900 locations throughout the world. As of December 31, 2016, Liberty Mutual Insurance had $121.7 billion in consolidated assets, $102.5 billion in consolidated liabilities, and $38.3 billion in annual consolidated revenue. The company, founded in 1912, offers a wide range of insurance products and services, including personal automobile, homeowners, workers' compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, fire and surety.
Liberty Mutual Insurance corporate headquarters at 175 Berkeley Street, Boston
Liberty Mutual Group owns, wholly or in part, local insurance companies in Argentina, Brazil, Chile, China (including Hong Kong), Colombia, Ecuador, India, Ireland, Poland, Portugal, Russia, Singapore, Spain, Thailand, Turkey, the United Kingdom, Venezuela and Vietnam.
In the United States, Liberty Mutual remains a mutual company where policyholders holding contracts for insurance are considered shareholders in the company. However, Liberty Mutual Group's brand usually operates as a separate entity outside the United States. In other countries, subsidiaries are often created in countries where legally recognized mutual company benefits cannot be enjoyed.
The current CEO is David H. Long. He succeeded his predecessor Edmund (Ted) F. Kelly on June 29, 2011. Ted Kelly was appointed CEO in 1998. In April 2013, Ted Kelly stepped down from the board of directors, as chairman.
Early history
Liberty Mutual was founded in 1912 as the Massachusetts Employees Insurance Association (MEIA), following passage of a Massachusetts state law requiring employers to protect their employees with workers’ compensation insurance in 1911.[11] The first branch office was opened in 1914, and later that year, the company wrote its first automobile insurance policy. The company was founded as a Massachusetts Mutual Company, where its insureds have ownership in the company. The name was changed in 1917 to the Liberty Mutual Insurance Company and, through partnerships, the company began offering full-coverage auto policies.
Structural changes
In 1964, Liberty Mutual Insurance Company began offering life insurance through its Liberty Life Assurance Branch. In 2002, the company converted into its current mutual holding company structure. The conversion was controversial, as it proposed to give policyholders an interest in the mutual insurance company, which some policyholders believed would dilute their interest in the overall company and limit their dividends. A lawsuit was filed, alleging that information provided to policyholders was misleading. Liberty Mutual settled the lawsuit in December 2001, which required additional disclosure and limited certain compensation to company officers and directors. Despite these concerns, the plan was approved by voting policyholders around November 2001. Leveraging the greater flexibility of the mutual company structure, Liberty Mutual transformed from a single-line, highly regional insurer to one of the world's leading property and casualty insurance companies.
Growth and acquisitions
Liberty Mutual's growth has been both organic and through acquisition. Early acquisitions were small, but Liberty Mutual has made several large acquisitions over the past decade, including the high-profile acquisition of Safeco Corporation in 2008. Liberty Mutual agreed to acquire all outstanding shares of Safeco for $68.25 per share, for a total transaction price of approximately $6.2 billion. The result of this activity was an increase in revenue from $6 billion to over $30 billion in twelve years. In 1999, the company purchased Wausau Insurance Cos.
Liberty Mutual created a television commercial in 2006 about people doing good things for strangers, reporting that the "overwhelming" positive response they received for the ad led to their decision to create the website The Responsibility Project.
Liberty Mutual is also the sole corporate sponsor of the long-running PBS documentary series American Experience and has produced special commercial messages for airing during American Experience broadcasts. In 2011, as part of the company's "Real America" campaign, the company introduced two new commercials featuring Sacagawea and Paul Revere.
In 2011, the company began construction of the Liberty Mutual Tower, a 22-story skyscraper as part of its World Headquarters Expansion Project.[19] The building received its certificate of occupancy in June 2013.
In May 2017, Liberty Mutual Insurance has completed its acquisition of Ironshore Inc.Hamilton, Bermuda from Fosun International Limited for $2.93 billion.
Liberty Mutual Research Institute for Safety
Founded in 1954, the Liberty Mutual Research Institute for Safety has studied the occupational safety and health of workers. Its scientific contributions include machine safeguarding guidelines, the Cornell-Liberty Survival Car, and ergonomic guidelines that have informed the basis for national and international safety standards. More recently, the Institute developed the Workplace Safety Index, which is an annual ranking of the leading causes of the most disabling occupational injuries in the United States.
The Institute's scientists conduct field and laboratory experiments to study the major causes of work-related injury and disability, publishing their results in peer-reviewed scientific literature. Institute findings are the basis for safety programs, recommendations, and software used by Liberty Mutual loss control consultants in order to help policyholders enhance worker safety. The Institute’s work is non-proprietary, and is available to the public.
Liberty Mutual Insurance helps people preserve and protect what they earn, build, own, and cherish. Keeping this promise means we are there when our customers need us most.
Throughout our operations around the world, we are committed to providing insurance products and services to meet the needs of individuals, families, and businesses; offering a diverse and dynamic work environment for our employees; and supporting our communities.