Liberty Mutual’s Personal Market delivers reasonably priced, high-quality auto, home and life insurance products to more than two million policyholders in the U.S. and Canada. Thanks to better-than-average weather, improved underwriting and higher rate levels, the Personal Market experienced a dramatic turnaround in profitability in 2002. From a weather perspective, the Personal Market experienced $48 million in catastrophe losses (tornadoes, hurricanes, hail storms) versus $124 million in 2001. In addition, a mild winter in the northeast U.S. helped minimize automobile collision losses. While the Personal Market’s largest product line, automobile insurance, had fueled industry profitability in the 1990s, it lost money in 2001. In response, all companies started to increase rates to keep up with inflation and improve profitability. The focus was on rate increases for the historically unprofitable homeowners insurance line as well. The Personal Market continues its tradition of placing special emphasis on quality of service, from improved pre- and post-sale customer contact and enhanced service representative availability to better online internet service, easier-to-understand policy packets and simplified renewal questionnaires. Our multi-channel distribution system, which offers the convenience of more than 400 local offices, extended-hour telesales centers, worksite and affinity marketing, and a web site – www.libertymutual.com – continues to differentiate Liberty Mutual from its competitors. The formula for the Personal Market’s success is employees who deliver consistent, high-quality products and services that satisfy our policyholders’ personal insurance needs. Return to Top   John B. Conners Executive Vice President 31% Personal Market Share of Total Revenue