Formed in 1999, Liberty Mutual’s Regional Agency Markets (RAM) business unit is now a $3.3 billion business and the largest national organization of regional property and casualty insurance companies within the United States. Organized into seven regional companies and two specialty businesses, the RAM organization provides personal and small commercial insurance products exclusively through independent agents. RAM’s successful operating model combines locally branded, service-oriented regional companies — such as Peerless, Indiana and Montgomery insurance companies — with the cost efficiencies of a national organization. A prime example is RAM’s use of agency web portals. Developed with the technological support and expertise of Liberty Mutual, these portals, branded by RAM regional companies, let agents obtain real-time quotes, report and monitor claims, make billing inquiries and more – electronically over the internet. One of RAM’s biggest undertakings in 2002 was the integration of the approximately $1.2 billion OneBeacon book of business along with the agency force producing it. One outgrowth of this integration, which gave RAM true national scope, was the establishment of two new RAM companies: Hawkeye-Security Insurance in the North Central Region, and America First Insurance in the Gulf Region of the U.S. Looking to 2003 and beyond, the marketplace served by the RAM companies will continue to provide opportunities for improved performance. After more than a decade of industry-wide under-pricing, small commercial and personal lines prices continue to increase as insurers become more selective in the risks they accept. A longer-term trend is consolidation within the independent agency system. In fact, 29 percent of independent agencies have been involved in a merger or acquisition since 1996. While the number of agencies has declined, both agency revenue and employment have continued to grow, offering an excellent opportunity for the RAM companies to serve the resulting larger agencies. With a disciplined underwriting appetite, an agency management model that obtains the best business from the best agents, and a talented and motivated workforce, RAM will further strengthen its leadership position in the years ahead. Return to Top   Roger L. Jean Executive Vice President 18% Regional Agency Markets Share of Total Revenue