In less than ten years, Liberty Mutual’s international business – Liberty International – has grown from a start-up to a major worldwide player. Today we have an enviable franchise in personal lines and small commercial business in targeted regions throughout the world, as well as an established global specialty lines business. Liberty International’s “indigenous” businesses — local companies selling local products to local customers — operate in South America, Southern Europe, Canada and Southeast Asia. In South America, where we have large companies in Venezuela, Argentina, Colombia and Brazil, we had a record year of profits despite the region’s tumultuous economic and political circumstances. Our companies in Southeast Asia and Southern Europe experienced gross written premium growth of 23 percent and 68 percent, respectively, and profits were strong. In Asia, we established a foothold in China with that nation’s permission to establish an insurance operation in one of its “open cities.” And, in Europe, an acquisition in Portugal complements our large and profitable personal lines business in Spain. Liberty International Underwriters (LIU), our four-year-old global specialty lines business, has an established and meaningful presence in the key international insurance markets, the newest addition being Singapore. Staffed with world-class underwriters, and with a restructured London operation, LIU increased gross written premiums by 47 percent in 2002 with a very strong bottom line. With $1.8 billion in gross written premium, LIU is now an established franchise for Liberty Mutual Group. Unparalleled changes are taking place in the global insurance industry. Liberty International, with its established operations and meaningful scale in targeted geographic markets, is well positioned to build its leadership at a time of continuing consolidation across the globe. Return to Top   Thomas C. Ramey Executive Vice President 17% Liberty International Share of Total Revenue