Corporate governance

The Board of Directors has been entrusted to hold the executive leadership team accountable and provides guidance on key issues facing the organization. Its responsibilities include nominating independent directors, ensuring strong succession plans, overseeing strategic plan development and monitoring progress, setting executive compensation, and providing oversight for financial reporting, enterprise risk management, internal control systems Code of Business Ethics and Conduct. To ensure priorities and processes align, the board, executive leadership team and senior management meet frequently throughout the year. Their relationship fosters collaboration and innovation as they determine our organizational priorities.

Legal Entity Structure of Liberty Mutual Group 

Risk management

Liberty incorporates a “three lines of defense” approach that includes front line risk management, Enterprise Risk Management (ERM), and Global Internal Audit risk assessments. Global Compliance and Ethics provides support to all three lines and collaborates with Internal Audit to recommend areas of potential focus. Corporate ERM, Global Internal Audit, and Global Compliance and Ethics each report their findings to the Company's Board of Directors independently.

An essential part of the risk structure, the Emerging Risks Committee (ERC) is responsible for identifying, prioritizing, evaluating, and monitoring latent and manifesting emerging risk exposures and issues that may have a significant financial and/or operational impact on the Company. This Committee enables Liberty Mutual to address a wide range of potential opportunities and threats in a single forum. For example, ERC deliberations led to the creation of an Opioid Crisis working group comprising representatives from Global Risk Solutions, Corporate Legal, and other corporate leaders to assess potential exposures and develop a coordinated response to this health epidemic. The ERC is a highly collaborative group, well-positioned to tackle broad and complex issues thanks to diverse representation from different functions including ERM, Underwriting, Product, Claims, Investments, Finance, Reinsurance, IT, Actuarial, Sustainability, and Legal.


    • Consolidated net written premium ($m) – the sum of direct written premiums plus premium assumed from other insurers or reinsurers, less premium ceded to reinsurers.
    • Revenue ($m) – the total amount of earned premium, net investment income, realized gains (losses), fees and other income.
    • Combined ratio (%) – the sum of three ratios: loss and loss adjustment expense, underwriting expense, and dividend ratios. A combined ratio of less than 100% indicates favourable underwriting results before consideration of investment income and federal income taxes.
    • Net income ($m) – results of all operations calculated as revenues, minus expenses, and federal income taxes
    • Total equity ($m) - is the value left in the company after subtracting total liabilities from total assets
    • Total debt ($m) - the sum of all long-term liabilities and is identified on the company's balance sheet
    • $ invested in renewable – the total capital invested in energy from a source that is not depleted when used, such as wind or solar power
    • Score in Human Rights Campaign’s Corporate Equality Index (%) – The result of the annual Corporate Equity Index review undertaken by The Human Rights Campaign
    • % reduction of CO2e relative to baseline – % reduction in the total quantity of CO2 being emitted that would cause the same level of radiative forcing as the emissions of a given greenhouse gas, compared to a base year, for Liberty Mutual this year is 2015
    • CO2e emissions (metric tons) absolute - the total quantity of CO2 being emitted that would cause the same level of radiative forcing as the emissions of a given greenhouse gas
    • CO2e emissions (metric tons) rentable square feet (RSF) - the total quantity of CO2 being emitted that would cause the same level of radiative forcing as the emissions of a given greenhouse gas normalized by the rental spaces used by Liberty Mutual (square feet)
    • Scope 1 GHG – Liberty Mutual’s direct emissions
    • Scope 2 GHG – Liberty Mutual’s indirect emissions from purchased electricity, heat, and steam
    • Scope 3 GHG – Liberty Mutual’s indirect emissions other than those covered in scope 2. Examples include upstream and downstream emissions, emissions resulting from the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by us and waste disposal, etc
    • Total electricity used (kWh) – The total amount of electricity used by the business in the reporting year
    • Low carbon infrastructure investment (green) – Capital invested in infrastructure that generates fewer carbon emissions than traditional infrastructure and includes projects which use renewable energy (solar, wind and hydropower) which produce lower carbon emissions than fossil fuel
    • Investment in oil and gas ($) – capital invested in businesses in the “traditional” oil and gas sector
    • % of employees who are extremely satisfied with Liberty Mutual as a place to work – % of the total number of surveyed employees who agree or strongly agree with the statement (through the Annual Employee Opinion Survey)
    • Number women on the Board – number of female independent Board members on the Liberty Mutual Group Board
    • % of women at Liberty Mutual - % of female employees compared to male colleagues across the Liberty Mutual Group (permanent US employees)
    • Community investment spend ($m) – investments intended to achieve social and environmental benefits in underserved communities
    • Number of employee hours spent volunteering – the total hours spent by permanent employees giving back voluntarily to local community projects
    • % of employees who feel good about the ways Liberty Mutual contributes to the community – % of employees who agree or strongly agree with the statement (through the Great Place to Work® 2019 U.S. National Employee Engagement Study)
    • % of employees volunteering - % of permanent employees taking (or being given) time out of working hours to give back to local community projects
    • Number of projects supported (project specific) – the total number of projects supported across the Liberty Mutual Group
    • Total charities supported – the total number of charities who have received support via a Liberty Mutual Group business
    • % of employees who have read and understood Code of Conduct - % of permanent US employees who responded to the annual Code of Conduct disclosure stating their engagement and understanding