Liberty Mutual Group is an American diversified global insurer and the sixth-largest
property
Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...
and
casualty
Casualty may refer to:
*Casualty (person), a person who is killed or rendered unfit for service in a war or natural disaster
**Civilian casualty, a non-combatant killed or injured in warfare
* The emergency department of a hospital, also known as ...
insurer in the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
. It ranks 71st on the
Fortune 100 list of largest corporations in the United States based on 2020 revenue. Based in
Boston, Massachusetts, and featuring the
Statue of Liberty (formally ''Liberty Enlightening the World'') on its logo, it employs over 45,000 people in more than 900 locations throughout the world. As of December 31, 2021, Liberty Mutual Insurance had $156.043 billion in consolidated assets, $128.195 billion in consolidated liabilities and $48.2 billion in annual consolidated revenue.
The company, founded in 1912, offers a wide range of
insurance
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
products and services, including personal
automobile
A car or automobile is a motor vehicle with wheels. Most definitions of ''cars'' say that they run primarily on roads, seat one to eight people, have four wheels, and mainly transport people instead of goods.
The year 1886 is regarde ...
,
homeowners
Home insurance, also commonly called homeowner's insurance (often abbreviated in the US real estate industry as HOI), is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insura ...
,
workers' compensation
Workers' compensation or workers' comp is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her emp ...
, commercial multiple peril, commercial automobile,
general liability, global specialty, group disability,
fire insurance and
surety.
Liberty Mutual Group owns, wholly or in part, local insurance companies in
Argentina
Argentina (), officially the Argentine Republic ( es, link=no, República Argentina), is a country in the southern half of South America. Argentina covers an area of , making it the second-largest country in South America after Brazil, th ...
,
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
,
Chile
Chile, officially the Republic of Chile, is a country in the western part of South America. It is the southernmost country in the world, and the closest to Antarctica, occupying a long and narrow strip of land between the Andes to the east a ...
,
China (including
Hong Kong
Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...
),
Colombia,
Ecuador
Ecuador ( ; ; Quechua: ''Ikwayur''; Shuar: ''Ecuador'' or ''Ekuatur''), officially the Republic of Ecuador ( es, República del Ecuador, which literally translates as "Republic of the Equator"; Quechua: ''Ikwadur Ripuwlika''; Shuar: ' ...
,
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
,
Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Grea ...
,
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
,
Poland
Poland, officially the Republic of Poland, is a country in Central Europe. It is divided into 16 administrative provinces called voivodeships, covering an area of . Poland has a population of over 38 million and is the fifth-most populou ...
,
Portugal
Portugal, officially the Portuguese Republic ( pt, República Portuguesa, links=yes ), is a country whose mainland is located on the Iberian Peninsula of Southwestern Europe, and whose territory also includes the Atlantic archipelagos of ...
,
Singapore
Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
,
Spain
, image_flag = Bandera de España.svg
, image_coat = Escudo de España (mazonado).svg
, national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond")
, national_anthem = (English: "Royal March")
, i ...
,
Thailand
Thailand ( ), historically known as Siam () and officially the Kingdom of Thailand, is a country in Southeast Asia, located at the centre of the Indochinese Peninsula, spanning , with a population of almost 70 million. The country is b ...
,
Turkey
Turkey ( tr, Türkiye ), officially the Republic of Türkiye ( tr, Türkiye Cumhuriyeti, links=no ), is a transcontinental country located mainly on the Anatolian Peninsula in Western Asia, with a small portion on the Balkan Peninsula in ...
, the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
,
Venezuela
Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
and
Vietnam
Vietnam or Viet Nam ( vi, Việt Nam, ), officially the Socialist Republic of Vietnam,., group="n" is a country in Southeast Asia, at the eastern edge of mainland Southeast Asia, with an area of and population of 96 million, making i ...
.
In the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...
, Liberty Mutual remains a
mutual company
A mutual organization, or mutual society is an organization (which is often, but not always, a company or business) based on the principle of mutuality and governed by private law. Unlike a true cooperative, members usually do not contribute t ...
in which
policyholder
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
s holding contracts for insurance are considered
shareholders
A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal ow ...
in the company. However, Liberty Mutual Group's
brand
A brand is a name, term, design, symbol or any other feature that distinguishes one seller's good or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create ...
usually operates as a
separate entity outside the United States, where a
subsidiary is 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.
Kelly was appointed CEO in 1998, and stepped down from the Board of Directors as chairman in April, 2013.
History
Early history
Liberty Mutual was founded in 1912 as the
Massachusetts
Massachusetts (Massachusett: ''Muhsachuweesut Massachusett_writing_systems.html" ;"title="nowiki/> məhswatʃəwiːsət.html" ;"title="Massachusett writing systems">məhswatʃəwiːsət">Massachusett writing systems">məhswatʃəwiːsət'' En ...
Employees Insurance Association (MEIA), following passage of a 1911 Massachusetts law requiring employers to protect their employees with
workers’ compensation
Workers' compensation or workers' comp is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her emp ...
insurance. The company was founded as a mutual company, a structure in which an insurance company is owned by its policyholders. The first branch office was opened in 1914, and later that year, the company wrote its first
automobile insurance
Vehicle insurance (also known as car insurance, motor insurance, or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injur ...
policy. 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, which would allow it to offer
stock while remaining a mutual company. The conversion was controversial, as some
policyholder
Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to hedge ...
s believed the change would dilute their interest in the overall company, reduce their voting control, 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 holding 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
Safeco Insurance, a member of Liberty Mutual Group, is an American insurance company. It held the naming rights to the Seattle Mariners' baseball stadium Safeco Field from its opening in 1999 through the end of the 2018 season.
History
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 2006
television commercial
A television advertisement (also called a television commercial, TV commercial, commercial, spot, television spot, TV spot, advert, television advert, TV advert, television ad, TV ad or simply an ad) is a span of television programming produce ...
depicting people doing good for others, reporting that the "overwhelming" positive response led to its decision to create the website ''The Responsibility Project''. Liberty Mutual is the sole
corporate sponsor of the long-running
PBS
The Public Broadcasting Service (PBS) is an American public broadcaster and non-commercial, free-to-air television network based in Arlington, Virginia. PBS is a publicly funded nonprofit organization and the most prominent provider of educat ...
documentary series ''
American Experience
''American Experience'' is a television program airing on the Public Broadcasting Service (PBS) in the United States. The program airs documentaries, many of which have won awards, about important or interesting events and people in American his ...
''. In 2011, as part of the company's "Real America" campaign, the company introduced two new commercials featuring
Sacagawea and
Paul Revere
Paul Revere (; December 21, 1734 O.S. (January 1, 1735 N.S.)May 10, 1818) was an American silversmith, engraver, early industrialist, Sons of Liberty member, and Patriot and Founding Father. He is best known for his midnight ride to a ...
.
In 2011, the company began construction of the
Liberty Mutual Tower, a 22-story
skyscraper as part a headquarters expansion project. The building received its
certificate of occupancy
Certificate may refer to:
* Birth certificate
* Marriage certificate
* Death certificate
* Gift certificate
* Certificate of authenticity, a document or seal certifying the authenticity of something
* Certificate of deposit, or CD, a financial p ...
in June 2013.
In May 2017, Liberty Mutual Insurance completed its acquisition of
Bermuda
)
, anthem = "God Save the King"
, song_type = National song
, song = "Hail to Bermuda"
, image_map =
, map_caption =
, image_map2 =
, mapsize2 =
, map_caption2 =
, subdivision_type = Sovereign state
, subdivision_name =
, es ...
-based Ironshore Inc. from Fosun International Limited for $2.93 billion. In October 2019, Liberty Mutual acquired Nationale Borg, Nationale Borg Reinsurance and AmTrust Insurance Spain, which are credit and surety reinsurance subsidiaries of
AmTrust Financial Services
AmTrust Financial Services, Inc., is a New York City-based multinational property and casualty insurance company, offering workers’ compensation, general liability, business owners policies (BOP), cyber liability, employment practices liabilit ...
.
In July 2021, Liberty agreed to acquire State Auto Group for over $2 billion. In August 2022, Liberty acquired AmGeneral Insurance Berhad, a Malaysia insurance company.
Organizational structure
Strategic business units
Liberty Mutual conducts all of its business through four
strategic business units
A strategic business unit (SBU) in business strategic management, is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though t ...
: US Consumer Markets, Commercial Insurance, Global Consumer Markets and Global Specialty.
US Consumer Markets
Passenger automobile, homeowners, life, annuity and other property and casualty insurance products are available via Liberty Mutual's US Consumer Markets line. These products are branded under the Liberty Mutual Insurance and
Safeco
Safeco Insurance, a member of Liberty Mutual Group, is an American insurance company. It held the naming rights to the Seattle Mariners' baseball stadium Safeco Field from its opening in 1999 through the end of the 2018 season.
History
Safeco ...
names, and are distributed via a network of more than 2,300 sales professionals. Other distribution means are call centers, third-party producers and the company's own website. Over 10,000 insurance agencies across the U.S. carry Safeco-branded products.
Commercial insurance
Property and casualty, as well as group benefits commercial insurance products, fall into two distinct categories: Business Insurance and National Insurance. The former caters to businesses with fewer than 1,000 employees, while the latter serves businesses in specific industries or with more than 1,000 employees. Group-benefits products include
disability insurance and group life insurance.
Global Consumer Markets
Localized insurance companies sell Liberty International's products in 18 countries and markets. International products are offered to both individual and business customers, and include property and casualty insurance as well as health and life insurance products. The largest international product offering is passenger automobile insurance for private individuals.
Global Specialty
The Global Specialty insurance line offers specialty products, such as marine, energy, aviation, professional liability and crisis management, offered through 40 Liberty International Underwriters offices worldwide. In addition, Liberty International Underwriters provides global multi-line insurance and reinsurance written on its
Lloyd's
Lloyd's of London, generally known simply as Lloyd's, is an insurance and reinsurance market located in London, England. Unlike most of its competitors in the industry, it is not an insurance company; rather, Lloyd's is a corporate body gov ...
Syndicate 4472 platform. Global Specialty also includes reinsurance products offered through Liberty Mutual Reinsurance.
Subsidiary companies
* Helmsman Management Services
* Liberty County Mutual Insurance Company
* Liberty International Underwriters (LIU)
* Liberty Mutual Surety (LMS)
* Liberty Mutual Reinsurance (LMR)
* Liberty Specialty Markets (LSM)
*
Liberty Seguros
Liberty Seguros is an international subsidiary of Liberty Mutual Group, a Boston-based insurance company.
Sponsorships
Liberty Seguros sponsored the UCI ProTour cycling team, Liberty Seguros – Würth, but dropped the sponsorship on 25 May 20 ...
* Liberty Mutual Agency Corporation
** American Fire & Casualty
** America First Insurance
** Colorado Casualty
** Consolidated Insurance Company
** Golden Eagle Insurance
** Indiana Insurance
** Liberty Mutual Surety
** Liberty Surety First
** Montgomery Insurance
** Ohio Casualty
** Ohio Security
** West American
** Peerless Insurance
**
Safeco
Safeco Insurance, a member of Liberty Mutual Group, is an American insurance company. It held the naming rights to the Seattle Mariners' baseball stadium Safeco Field from its opening in 1999 through the end of the 2018 season.
History
Safeco ...
**
State Auto Mutual Insurance Companies
State may refer to:
Arts, entertainment, and media Literature
* ''State Magazine'', a monthly magazine published by the U.S. Department of State
* ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States
* ''Our S ...
(acquired in 2022)
**
Ironshore (acquired in 2016)
* Peerless Insurance
Liberty Mutual Research Institute for Safety
Founded in 1954, the Liberty Mutual Research Institute for Safety studied the
occupational safety and health of workers. Its scientific contributions include machine safeguarding guidelines, the
Cornell-Liberty Survival Car and
ergonomic
Human factors and ergonomics (commonly referred to as human factors) is the application of psychological and physiological principles to the engineering and design of products, processes, and systems. Four primary goals of human factors learnin ...
guidelines that have informed the basis for national and international
safety standards
Safety standards are standards designed to ensure the safety of products, activities and processes, etc. They may be advisory or compulsory and are normally laid down by an advisory or regulatory body that may be either voluntary or statutory. In ...
. More recently, the institute developed the Workplace Safety Index, an annual ranking of the leading causes of the most disabling
occupational injuries in the U.S.
The institute's
scientists
A scientist is a person who conducts scientific research to advance knowledge in an area of the natural sciences.
In classical antiquity, there was no real ancient analog of a modern scientist. Instead, philosophers engaged in the philosophica ...
conducted
field
Field may refer to:
Expanses of open ground
* Field (agriculture), an area of land used for agricultural purposes
* Airfield, an aerodrome that lacks the infrastructure of an airport
* Battlefield
* Lawn, an area of mowed grass
* Meadow, a grass ...
and laboratory experiments to study the major causes of work-related injury and
disability
Disability is the experience of any condition that makes it more difficult for a person to do certain activities or have equitable access within a given society. Disabilities may be cognitive, developmental, intellectual, mental, physical, ...
, publishing their results in
peer-reviewed scientific literature
: ''For a broader class of literature, see Academic publishing.''
Scientific literature comprises scholarly publications that report original empirical and theoretical work in the natural and social sciences. Within an academic field, scie ...
. Institute findings are the basis for safety programs, recommendations and
software
Software is a set of computer programs and associated software documentation, documentation and data (computing), data. This is in contrast to Computer hardware, hardware, from which the system is built and which actually performs the work.
...
used by Liberty Mutual loss-control consultants to help policyholders enhance worker safety. The institute’s work was non-proprietary and available to the public.
The institute closed in May 2017.
Controversy
In 2006, Liberty Mutual employees in the Los Angeles area sued, claiming that the company had failed to pay their overtime salaries. They attempted to certify a
class-action suit
A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class actio ...
, but it was dismissed on technical grounds.
In late 2012, the company won an appeal granting it the ability to not pay employees for work performed on an overtime basis. Liberty Mutual relied on an
''amicus'' brief filed on behalf of the
U.S. Department of Labor
The United States Department of Labor (DOL) is one of the United States federal executive departments, executive departments of the federal government of the United States, U.S. federal government. It is responsible for the administration of fede ...
. The court decided, based on the brief, that claims personnel are exempt "administrative employees" and not eligible for overtime pay. In late 2012, the
Supreme Court of California depublished a contrary decision on the same issue.
In 2012 and 2013, ''
The Boston Globe
''The Boston Globe'' is an American daily newspaper founded and based in Boston, Massachusetts. The newspaper has won a total of 27 Pulitzer Prizes, and has a total circulation of close to 300,000 print and digital subscribers. ''The Boston Glob ...
'' published a series of articles concerning Liberty Mutual executives' excessive compensation and weekend trips using the company's fleet of five long-range corporate jets.
Advertising
LiMu
Emu
The emu () (''Dromaius novaehollandiae'') is the second-tallest living bird after its ratite relative the ostrich. It is endemic to Australia where it is the largest native bird and the only extant member of the genus '' Dromaius''. The emu ...
, a character that is represented using a real emu as well as through
CGI, appears in some of Liberty Mutual's advertising. LiMu is also accompanied by Doug who tries to keep LiMu from acting up. Doug is played by acto
David Hoffman[https://nypost.com/2021/08/06/limu-emu-doug-actor-on-his-newfound-fame/ Retrieved November 3rd 2021]
References
External links
*
{{Authority control
Insurance companies of the United States
Mutual insurance companies of the United States
American companies established in 1912
Financial services companies established in 1912
Companies based in Boston
1912 establishments in Massachusetts.