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Investor Relations

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Recent & Upcoming EventsMore>>

Liberty Mutual Insurance Reports Second Quarter 2014 Results

Liberty Mutual Holding Company Inc. and its subsidiaries (collectively “LMHC” or the “Company”) reported net income attributable to LMHC of $393 million and $665 million for the three and six months ended June 30, 2014, decreases of $55 million and $101 million from the same periods in 2013.  Including $5 million and $15 million of net losses attributable to non-controlling interest, consolidated net income for the three and six months ended June 30, 2014 was $388 million and $650 million, respectively.

“Net written premium growth was healthy at just above 5% quarter over quarter, and underwriting improvements lowered the combined ratio by a point despite sizable severe storm losses,” said David H. Long, Chairman and CEO of Liberty Mutual Insurance. “In short, we continue to improve underwriting results and grow where we can do so profitably.”

On August 5, 2014, Mr. Long hosted a conference call to discuss the Company's financial results. A replay of the call is available until 5:00 p.m. on August 12, 2014 at 866-461-2735.

Liberty Mutual Insurance Enters into Reinsurance Agreement with National Indemnity Company

On July 17, 2014, Liberty Mutual Insurance reached a definitive agreement with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc., on a combined aggregate adverse development cover for substantially all of Liberty Mutual Insurance’s U.S. workers compensation, asbestos and environmental liabilities, attaching at approximately $12.5 billion of combined aggregate reserves with an aggregate limit of $6.5 billion (see press release).

Financial ResultsMore>>

2014 Second Quarter

 

News & InformationMore>>

Liberty Mutual Insurance Enters into Reinsurance Agreement with National Indemnity Company (full disclosure)

On July 17, 2014, Liberty Mutual Insurance reached a definitive agreement with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc., on a combined aggregate adverse development cover for substantially all of Liberty Mutual Insurance’s U.S. workers compensation, asbestos and environmental liabilities, attaching at approximately $12.5 billion of combined aggregate reserves with an aggregate limit of $6.5 billion and sublimits of $3.1 billion for asbestos and environmental liabilities and $4.507 billion for certain workers compensation liabilities.

At the closing of this transaction today, but effective as of January 1, 2014, Liberty Mutual Insurance ceded approximately $3.3 billion of existing liabilities under a retroactive reinsurance agreement. NICO will provide approximately $3.2 billion of additional aggregate adverse development cover. Liberty Mutual Insurance paid NICO total consideration of approximately $3.0 billion.

The agreement covers Liberty Mutual Insurance’s potentially volatile U.S. asbestos and environmental liabilities arising under policies of insurance and reinsurance with effective dates before January 1, 2005, as well as Commercial Insurance’s workers compensation liabilities as respects injuries or accidents occurring before January 1, 2014.

NICO will assume responsibility for claims handling related to Liberty Mutual Insurance’s asbestos and environmental claims. Liberty Mutual Insurance will continue to handle all workers compensation claims.

"We believe that this agreement further strengthens our financial position as it eliminates a substantial source of uncertainty in these liabilities and allows us to focus on execution in our core businesses,” said David H. Long, Liberty Mutual Insurance Chairman and Chief Executive Officer.

This transaction will be accounted for as retroactive reinsurance in Liberty Mutual Insurance’s GAAP consolidated financial statements and results in a pre-tax loss of approximately $130 million as of the effective date, which will be included in third quarter results.

Liberty Mutual Insurance Enters Into Agreement to Sell Summit Holding Southeast, Inc. to American Financial Group

On January 9, 2014, Liberty Mutual Insurance reached a definitive agreement to sell Summit Holding Southeast, Inc. and its related companies (together, “Summit”) to American Financial Group (NYSE/NASDAQ: AFG) in an all-cash transaction (see full posting ). 

Liberty Mutual Group Inc. Issues Additional $400 Million of 4.25% Senior Notes, due 2023

On November 5, 2013, Liberty Mutual Group Inc. (“LMGI” or the “Company”) settled the issuance of $400 million of 4.25% Senior Notes, due 2023 (the “Notes”).  The Notes issued constitute a reopening of the $600 million aggregate principal amount of the Notes that the Company issued on June 18, 2013.  Proceeds of the reopening are expected to be used to finance recent debt repurchases and for general corporate purposes ( see press release ).

Liberty Mutual Group Inc. Discloses Over $164 Million in Debt Repurchases

On September 27, 2013, Liberty Mutual Group Inc. (“LMGI”) disclosed that from June 30, 2013 until September 27, 2013, the company repurchased $151,893,000 in principal of its 10.75% Series C Junior Subordinated Notes, due 2088 (“Notes”).  As of September 27, 2013, $364,353,000 in principal of the Notes remained outstanding. Further, LMGI has agreed to purchase an additional $12,725,000 in principal of the Notes subject to settlement.  This information is being disclosed in connection with a potential private transaction ( see press release ). 

Liberty Mutual Insurance Group Announces SBU Realignment

On July 24, 2012, Liberty Mutual Insurance Group announced the realignment of its Strategic Business Units into four new units.  This change is designed to make it easier for agents and customers to do business with us.  It also will allow us to better leverage our scale and expertise by spreading best practices and investments in products, services and innovation across the global enterprise.  We are realigning our Strategic Business Units into four new SBUs effective immediately:

  • Commercial Insurance will serve traditional property and casualty accounts of all sizes and will provide one face to the agent/broker community.  Commercial Insurance will also include Summit and Group Benefits.
  • Personal Insurance will include all domestic personal lines business.  Liberty Mutual and Safeco brands and products will be maintained, and distribution channels will continue to be managed separately.  Personal Insurance will also include our Individual Life business.
  • Global Specialty will include Liberty International Underwriters, Liberty Mutual Reinsurance and Liberty Mutual Surety.
  • Liberty International will comprise local country operations.

Liberty Mutual Group Inc. and Liberty Mutual Insurance Company Announce Expiration and Final Results of Cash Tender Offers

On May 16, 2012 Liberty Mutual Group Inc. ("LMGI") and Liberty Mutual Insurance Company ("LMIC" and, together with LMGI, the "Issuers") announced the expiration and final results of their previously announced cash tender offer (the "Dutch Auction Offer") ( see press release ).

Liberty Mutual Group Inc. Announces Early Acceptance of Waterfall Cash Tender Offer

On May 4, 2012, Liberty Mutual Group Inc. ("LMGI") announced the exercise of its early acceptance right for all Waterfall Notes tendered at or prior to the Early Tender Time in connection with its previously announced cash tender offer (the "Waterfall Offer") ( see press release ).  

Liberty Mutual Group Inc. Announces Pricing of Waterfall Cash Tender Offer

On May 3, 2012, Liberty Mutual Group Inc. ("LMGI") announced the determination of the Full Tender Offer Consideration of its previously announced cash tender offer (the "Waterfall Offer") (  see press release  ).

Liberty Mutual Group Inc. and Liberty Mutual Insurance Company Announce Early Tender Results and Modification of Terms of Cash Tender Offers

On May 2, 2012, Liberty Mutual Group Inc. ("LMGI") and Liberty Mutual Insurance Company ("LMIC" and, together with LMGI, the "Issuers") announced the early tender results and modification of terms of cash tender offers ( see press release ).

Liberty Mutual Group Inc. and Liberty Mutual Insurance Company Announce Offers to Purchase up to $700,000,000 Principal Amount of Outstanding Notes

On April 18, 2012, Liberty Mutual Group Inc. ("LMGI") and Liberty Mutual Insurance Company ("LMIC" and, together with LMGI, the "Issuers") announced the commencement of a cash tender offer for certain of their outstanding notes ( see press release ).

Noteholder Information

Liberty Mutual Group Inc. Discloses Over $164 Million in Debt Repurchases

On September 27, 2013, Liberty Mutual Group Inc. (“LMGI”) disclosed that from June 30, 2013 until September 27, 2013, the company repurchased $151,893,000 in principal of its 10.75% Series C Junior Subordinated Notes, due 2088 (“Notes”). As of September 27, 2013, $364,353,000 in principal of the Notes remained outstanding. Further, LMGI has agreed to purchase an additional $12,725,000 in principal of the Notes subject to settlement. This information is being disclosed in connection with a potential private transaction ( see press release ).

Series C Junior Subordinated Notes - The Series C Junior Subordinated Notes have been provided the benefit of the Replacement Capital Covenant entered into by the Company on March 7, 2007 in connection with the issuance of $700,000,000 aggregate principal amount of the Company's Series A Junior Subordinated Notes and $300,000,000 aggregate principal amount of the Series B Junior Subordinated Notes. Please click here  for additional information.

 

 

Note: The entities that form the Liberty Mutual Group are private companies which have not registered under the Securities Act of 1933, as amended, and therefore are not subject to the information and reporting requirements of the Securities Exchange Act of 1934, as amended.  Accordingly, the group's entities do not file proxy statements, financials or other reports with the Securities and Exchange Commission.

Please refer to the link below for a cautionary notice concerning forward looking statements included on this website, and a discussion of the various factors that could cause an adverse effect on the business, operations and financial condition of the Liberty Mutual Group.  Forward Looking Statements and Risk Factors   

How We Rate

Financial Strength Ratings:
* A.M. Best Co. → 'A' (Excellent)
* Moody's → 'A2' (Good)
* Standard & Poor's → 'A' (Strong)

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Contact Us

Investor Contact:
Alison Erbig 
VP & Director, Investor Relations
Liberty Mutual Insurance
175 Berkeley St. M/S 03E
Boston, MA 02116
(617) 574-6655

Contact Investor Relations

Media Contact:
John Cusolito
VP & Manager, External Relations
Liberty Mutual Insurance
175 Berkeley St. M/S 10D
Boston, MA 02116
(617) 574-5512

Disclaimer

This site may contain information and news releases about Liberty Mutual Group. While this information was believed to be accurate as of the date prepared, Liberty Mutual Group disclaims any duty to update them. "Forward Looking Statements," as defined under the securities laws, are intended to fit within a "safe harbor" under U.S. securities laws and are subject to material risk factors that may or may not be disclosed on this site.

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