Organized into five business units – National, Business, Wausau, Group and Specialty Risks – our Commercial Markets businesses provide a broad array of risk transfer, disability management and other related services to companies ranging from mid-sized businesses to giant multinationals. Together, our Commercial Markets businesses showed solid improvement in operating results against a backdrop of increasing medical costs, an out-of-control tort system and a sluggish economy. Our middle-market operations, which sell and service under the Liberty Mutual and Wausau brand names, are now on a firm foundation thanks to disciplined underwriting, improved marketing strategies and consistent delivery of high-quality service with the demonstrated ability to lower customers’ overall cost of risk. As did all Commercial Markets operations, our national accounts business, which serves customers with typically multi-state operations and more than 1,000 employees, benefited from increased pricing while maintaining its focus on delivering superior outcomes for its customers. Today, we are among a handful of companies with the capability to meet the complex risk management needs of Fortune 1,000 companies. Our group disability and life business improved on all fronts – earnings, new business and renewals; this despite a highly competitive group insurance industry. Finally, our Specialty Risks unit, which includes Liberty Mutual Property, Liberty Bond Services, and a reenergized Captive Services operation, focused on strict exposure management in 2002 while building brand recognition and earnings momentum in their respective businesses. During 2002, each of these businesses conducted new, comprehensive market research to gain a clear understanding of our customers’ and producers’ needs, our competitors and our markets. Equipped with this information, solid underwriting, and a dedication to superior service, Commercial Markets is well positioned to excel in 2003 despite today’s tumultuous environment. Return to Top   Gary R. Gregg Executive Vice President 34% Commercial Markets Share of Total Revenue