Jump to content

Liberty Mutual

From Wikipedia, the free encyclopedia

Liberty Mutual Group
Company typeMutual.Private
IndustryInsurance
FoundedJuly 1, 1912;112 years ago(1912-07-01)(as Massachusetts Employees Insurance Association)
Headquarters
175 Berkeley Street
Boston,Massachusetts
,
U.S.
Area served
Worldwide
Key people
Timothy M. Sweeney(President andCEO)
ServicesProperty and Casualty Insurance
RevenueIncrease$48.2 billion (2021)[1][2]
Decrease$1.282 billion (2019)
Increase$3.068 billion (2021)
Total assetsIncrease$156.043 billion (2021)
Total equityIncrease$27.848 billion (2021)
Number of employees
45,000+(2021)
Websitelibertymutualgroup.com
libertymutual.com

Liberty Mutual Insurance Companyis an American diversified global insurer and the sixth-largestpropertyandcasualtyinsurer in the world.[3]It ranks 71st on theFortune 100list of largest corporations in the United States based on 2020 revenue.[4]Based inBoston, Massachusetts,and featuring theStatue of Liberty(formallyLiberty 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.[5][6]

The company, founded in 1912, offers a wide range ofinsuranceproducts and services, including personalautomobile,homeowners,workers' compensation,commercial multiple peril, commercial automobile,general liability,global specialty, group disability,fire insuranceandsurety.[7][8]

Liberty Mutual Group owns, wholly or in part, local insurance companies inBrazil,Chile,China(includingHong Kong),Colombia,Ecuador,India,Ireland,Malaysia,Portugal,Singapore,Spain,Thailand,theUnited Kingdom,andVietnam.(In the UK, Liberty Mutual acts as the insurer forCountrywide Legal Indemnities).[9]

In theUnited States,Liberty Mutual remains amutual companyin whichpolicyholdersholding contracts for insurance are consideredshareholdersin the company. However, Liberty Mutual Group'sbrandusually operates as aseparate entityoutside the United States, where asubsidiaryis often created in countries where legally recognizedmutual-companybenefits cannot be enjoyed.

The current CEO is Timothy M. Sweeney. He succeeded his predecessorDavid H. Longon January 1, 2023.[10]Long was preceded by Edmund "Ted" Kelly.[11]Kelly was appointed CEO in 1998,[12]and stepped down from the Board of Directors as chairman in April 2013.[13]

History[edit]

Early history[edit]

Liberty Mutual was founded in 1912 as theMassachusettsEmployees Insurance Association (MEIA), following the passage of a 1911 Massachusetts law requiring employers to protect their employees withworkers’ compensationinsurance.[14]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 firstautomobile insurancepolicy. 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[edit]

In 1964, Liberty Mutual Insurance Company began offering life insurance through its Liberty Life Assurance Branch. In 2002, the company converted into its currentmutual holding companystructure, which would allow it to offerstockwhile remaining a mutual company. The conversion was controversial, as somepolicyholdersbelieved the change would dilute their interest in the overall company, reduce their voting control, and limit their dividends. Alawsuitwas 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.[15]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.[16]

Growth and acquisitions[edit]

Liberty Mutual's growth has been both organic and throughacquisition.Early acquisitions were small, but Liberty Mutual has made several large acquisitions over the past decade, including the high-profile acquisition ofSafecoCorporation 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.[17]

Liberty Mutual created a 2006television commercialdepicting people doing good for others, reporting that the "overwhelming" positive response led to its decision to create the websiteThe Responsibility Project.[18]Liberty Mutual is the solecorporate sponsorof the long-runningPBSdocumentaryseriesAmerican Experience.In 2011, as part of the company's "Real America" campaign, the company introduced two new commercials featuringSacagaweaandPaul Revere.[19][20]

In 2011, the company began constructing theLiberty Mutual Tower,a 22-storyskyscraperas part of a headquarters expansion project.[21]The building received itscertificate of occupancyin June 2013.[22]

In May 2017, Liberty Mutual Insurance completed its acquisition ofBermuda-based Ironshore Inc. from Fosun International Limited for $2.93 billion.[23]In October 2019, Liberty Mutual acquired Nationale Borg, Nationale Borg Reinsurance and AmTrust Insurance Spain, which are credit and surety reinsurance subsidiaries ofAmTrust Financial Services.[24]

In July 2021, Liberty agreed to acquireState Auto Groupfor over $2 billion.[25]In August 2022, Liberty acquired AmGeneral Insurance Berhad, a Malaysia insurance company.[26][27]

Organizational structure[edit]

Strategic business units[edit]

Liberty Mutual conducts all of its business through twostrategic business units:US Retail Markets, and Global Risk Solutions.[28]

A Liberty Mutual booth at a street fair inAndover, Massachusetts.

US Retail Markets[edit]

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 andSafeconames, 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.[29]

Global Risk Solutions[edit]

The Global Risk solutions insurance line offers commercial and 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 itsLloyd'sSyndicate 4472 platform. Global Specialty also includes reinsurance products offered through Liberty Mutual Reinsurance.[29]

Subsidiary companies[edit]

  • 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 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
    • State Auto Mutual Insurance Companies(acquired in 2022)[30]
    • Ironshore(acquired in 2016)
  • Peerless Insurance

Liberty Mutual Research Institute for Safety[edit]

Founded in 1954, the Liberty Mutual Research Institute for Safety studied theoccupational safety and healthof workers. Its scientific contributions include machine safeguarding guidelines, theCornell-Liberty Survival Carandergonomicguidelines that have informed the basis for national and internationalsafety standards.More recently, the institute developed the Workplace Safety Index, an annual ranking of the leading causes of the most disablingoccupational injuriesin the U.S.

The institute'sscientistsconductedfieldand laboratory experiments to study the major causes of work-related injury anddisability,publishing their results inpeer-reviewedscientific literature.Institute findings are the basis for safety programs, recommendations andsoftwareused by Liberty Mutual loss-control consultants to help policyholders enhance worker safety. The institute’s work was non-proprietary and available to the public.[31][32][33][34][35][36][37]

The institute closed in May 2017.[38]

Controversy[edit]

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 aclass-action suit,but it was dismissed on technical grounds.[39]

In late 2012, the company won an appeal granting it the ability to not pay employees for work performed on an overtime basis.[40]Liberty Mutual relied on anamicusbrieffiled on behalf of theU.S. Department of Labor.[41]The court decided, based on the brief, that claims personnel are exempt "administrative employees" and not eligible for overtime pay. In late 2012, theSupreme Court of Californiadepublisheda contrary decision on the same issue.[42]

In 2012 and 2013,The Boston Globepublished a series of articles concerning Liberty Mutual executives' excessive compensation and weekend trips using the company's fleet of five long-range corporate jets.[43][44][45]

In 2024 Liberty Mutual sent a questionnaire to homeowners of house 80 or more years old, requiring documentation of electrical rewriring, plumbing replacement, and elaborate burglar alarm systems. This may have been a successful attempt to shed minority insureds.

[46] [47] [48] [49][50]

Advertising[edit]

LiMuEmu,a character that is represented using a real emu as well as throughCGI,appears in some of Liberty Mutual's advertising beginning in 2019.[51]LiMu is also accompanied by Doug who tries to keep LiMu from acting up. On February 9, 2023, Liberty Mutual began advertising as Liberty at the end of its commercials.

Tanner Novlanhas appeared in several commercials, alone as well as with "Doug", as a "struggling actor" who has trouble reciting basic facts about the company, especially its name ( "Liberty Bibberty" and so on).

Various commercials are on a deck overlooking theNew York Harborwith the Statue of Liberty in the background.

References[edit]

  1. ^"2021 Financial Review"(PDF).Libertymutualgroup.com.RetrievedFebruary 24,2022.
  2. ^"Report of Independent Registered Public Accounting Firm"(PDF).Libertymutualgroup.com.RetrievedNovember 28,2018.
  3. ^"As of 2021 Liberty Mutual is the sixth-largest property and casualty insurer globally".Fortune Media.October 2, 2021.
  4. ^"Forbes 500 2021".Fortune.RetrievedNovember 10,2021.
  5. ^"2021 Financial Reports"(PDF).Liberty Mutual. February 24, 2022.
  6. ^"About Liberty Mutual Insurance".Liberty Mutual.RetrievedFebruary 24,2022.
  7. ^[1]ArchivedMay 23, 2009, at theWayback Machine
  8. ^"Liberty Mutual Holding Company Inc".Bloomberg Businessweek.Archived fromthe originalon December 5, 2007.
  9. ^"Countrywide Legal INdemnities - our insurer".RetrievedApril 14,2024.
  10. ^Hemenway, Chad (June 9, 2022)."Liberty Mutual passes the torch".Insurance Journal.RetrievedOctober 10,2023.
  11. ^"National Safety Council Honors Liberty Mutual; Says on Workplace Issues, CEO Kelly 'Gets It'".Insurance Journal.March 31, 2005.RetrievedJuly 10,2015.
  12. ^Talcott, Sasha."Insurance firm chief gets $27m in 2009".The Boston Globe.RetrievedJuly 10,2015.
  13. ^Luna, Taryn (April 10, 2013)."Liberty Mutual's Ted Kelly stepping down as chairman".The Boston Globe.RetrievedJuly 10,2015.
  14. ^"Liberty Mutual Timeline".Insuranceusa.com. July 1, 1912.RetrievedJuly 11,2015.
  15. ^Mark Hollmer (December 25, 2001)."Liberty Mutual Settles Consumer Suit Critical Of Conversion"(PDF).Insurance Times.RetrievedMarch 10,2018.
  16. ^"Liberty Mutual Insurance Group".Fortune.Archived fromthe originalon May 1, 2019.RetrievedMarch 26,2018.
  17. ^Coccia, Regis (January 22, 2009)."Liberty Mutual forms midmarket unit, retires Wausau name".Business Insurance.RetrievedJuly 10,2015.
  18. ^"Liberty Mutual".The Responsibility Project.RetrievedJuly 11,2015.
  19. ^"Liberty Mutual (PBS) - Paul Revere".Vimeo.RetrievedMarch 26,2018.
  20. ^"Liberty Mutual (PBS) - Sacagawea".Vimeo.RetrievedMarch 26,2018.
  21. ^"Liberty Mutual Office Expansion at 157 Berkeley".Libertymutualgroup.com.RetrievedJuly 11,2015.
  22. ^"No Title".March 5, 2014. Archived fromthe originalon March 5, 2014.RetrievedNovember 28,2018.
  23. ^"Liberty Mutual details structure, leadership after Ironshore deal – Business Insurance".Business Insurance.RetrievedSeptember 28,2017.
  24. ^"Liberty Mutual Completes Acquisition of 3 AmTrust European Businesses".Insurance Journal.October 4, 2019.RetrievedJanuary 2,2020.
  25. ^Reyes, Max; Dickson, Steve (July 12, 2021)."Liberty Mutual Agrees to Purchase State Auto at 200% Premium".Bloomberg.RetrievedJuly 27,2021.
  26. ^"Liberty Mutual acquires AmGeneral - Reinsurance News".ReinsuranceNe.ws.July 29, 2022.RetrievedAugust 1,2022.
  27. ^admin (August 1, 2022)."Liberty Mutual Insurance Acquires Malaysian Insurer AmGeneral".Insurance Journal.RetrievedAugust 1,2022.
  28. ^[2]ArchivedMay 9, 2013, at theWayback Machine
  29. ^ab"Business Insurance Services and Career Information".Liberty Mutual Group. December 31, 2014. Archived fromthe originalon July 12, 2015.RetrievedJuly 11,2015.
  30. ^"Liberty Mutual closes on $1 billion acquisition of State Auto Financial".
  31. ^Lewis, Diane E. (June 28, 2004)."Lab aims to cut rate of injuries on the job – The Boston Globe".Boston.com.RetrievedJuly 11,2015.
  32. ^"Playing it safely: Liberty Mutual's Research Institute for Safety-celebrating its 50th birthday this month-has been at the forefront of the battle against occupational injuries in the United States. In the next 50 years, it will continue to flex its muscles around the world. - Free Online Library".Thefreelibrary.com.RetrievedJuly 11,2015.
  33. ^Withrow, David (July 13, 2004)."In-running nip point hazards".TheFabricator.com.RetrievedJuly 11,2015.
  34. ^[3]ArchivedJanuary 9, 2009, at theWayback Machine
  35. ^Theodore W. Braun (2008)."Prevention through Design (PtD) from the Insurance Perspective"(PDF).Journal of Safety Research.39(2). Cdc.gov: 137–9.doi:10.1016/j.jsr.2008.02.016.PMID18454955.RetrievedJuly 11,2015.
  36. ^"Cengage Learning".Accessmylibrary.com.RetrievedJuly 11,2015.
  37. ^"Liberty Mutual Serves Up Loss Control Unit for Insurance Agents, Buyers".Insurancejournal.com. October 24, 2008.RetrievedJuly 11,2015.
  38. ^"Liberty Mutual closing its research unit - The Boston Globe".BostonGlobe.com.Archived fromthe originalon August 25, 2018.RetrievedAugust 23,2018.
  39. ^"Yerger V. Liberty Mutual Group, Inc".Leagle.com. September 24, 2012.RetrievedJuly 11,2015.
  40. ^"Claims adjuster overtime ruling a win for employers, insurers".Business Insurance. January 1, 2012.RetrievedJuly 11,2015.
  41. ^"Harris Amicus Brief, in support of defendants-real parties in interest".Dol.gov.RetrievedJuly 11,2015.
  42. ^"California Supreme Court Depublishes Case Holding That Insurance Adjusters Are Nonexempt Employees | Manatt, Phelps & Phillips, LLP".JDSupra. November 5, 2012.RetrievedJuly 11,2015.
  43. ^"At Liberty Mutual, accounting to no one".The Boston Globe.RetrievedJanuary 17,2015.
  44. ^McGrory, Brian (May 23, 2012)."The benefits of political friendship".The Boston Globe.
  45. ^McGrory, Brian (October 5, 2012)."Perspectives Can Change at Liberty Mutual".The Boston Globe.
  46. ^"Liberty Mutual: Your premiums, his premium office – Metro".The Boston Globe. May 11, 2012.RetrievedJuly 11,2015.
  47. ^"An untimely award – Metro".The Boston Globe. April 20, 2012.RetrievedJuly 11,2015.
  48. ^"The viewfrom the top – Metro".The Boston Globe. June 13, 2012.RetrievedJuly 11,2015.
  49. ^"Brian McGrory: There's more, lots more to Liberty Mutual compensation story – Metro".The Boston Globe. April 25, 2012.RetrievedJuly 11,2015.
  50. ^McGrory, Brian (May 2, 2012)."At Liberty Mutual, no accounting for executive privileges – The Boston Globe".Boston.com.RetrievedJuly 11,2015.
  51. ^Heldenfels, Rich (July 19, 2019)."Television mailbag: Is that a real emu in Liberty Mutual commercials?".Akron Beacon Journal.RetrievedJuly 23,2019.

External links[edit]

Wikimedia Commons has media related toLiberty Mutual.

.

Retrieved from "https://en.wikipedia.org/w/index.php?title=Liberty_Mutual&oldid=1234171052"