Liberty Mutual |
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Company OverviewLiberty Mutual Group is an insurance company that provides a wide range of products to a global customer base. Customers can purchase homeowners, auto, commercial multiple peril, commercial auto, worker's compensation, globally specialty, general liability, assumed reinsurance, group disability, fire, and surety insurance policies from Liberty Mutual Group. The motto of the company is "helping people live safer, more secure lives."
Company History
Liberty Mutual was founded in 1912 in Boston. Since that time, Liberty Mutual Group has become one of the leading global insurance providers. In the United States, Liberty Mutual Group is the sixth largest property and casualty insurer. The largest insurance line LMG offers is its private passenger automobile insurance line, based on the 2004 direct written premium reports.
In 2001 and 2002, Liberty Mutual Group reorganized the company's structure. The organization was changed into a mutual holding company structure. There are currently three principal mutual companies in the group, which include Liberty Mutual Fire Insurance Company, Liberty Mutual Insurance Company, and Employers Insurance Company of Wausau. Each of these companies is a separate stock insurance company that operates under the ownership of Liberty Mutual Holding Company, Inc. This reorganization was quite successful and gave the company the ability to pursue more strategic acquisitions and alliances, while maintaining mutuality in its legal structure. The company also has better capital market access with this new structure. Today, Liberty Mutual Group has four separate business units. None of the units contributes over 30% of the total net premiums written for the company.
Unlike many other large insurance providers, Liberty Mutual does not employ aggressive advertising techniques. The business has grown throughout the years through Group Savings Plus, the company's form of affinity marketing. Account executives are hired to develop friendly business relationships with employers and associations. These organizations then provide the Liberty Mutual insurance products to their employees or members, and the members often choose the insurance because they are given a discount on services. The discount is based on the fact that those with a higher level of education typically pose a lower risk for insurers. Word of mouth advertising and specifically targeted ad campaigns within these groups are what grow the Liberty Mutual Group.
Facts and Figures
In 2005, Liberty Mutual employed 39,000 people and had over 900 offices across the globe. The company is currently listed number 102 in the Fortune 500 list of America's largest corporations, and it is also listed 39 on Equal Opportunity Magazine's annual list of top 50 employers. At the end of 2005, Liberty Mutual Group reported $78.8 billion in consolidated assets. That same year the company reported $21.2 billion in yearly consolidated revenues.
The largest business unit in the Liberty Mutual Group is the division for private passenger automobile, valuable possessions, personal liability, and homeowners insurance plans. These products are sold through the company's sales force in over 400 offices throughout the country. Liberty Mutual also has two direct response centers, a website, and several Prudential agents that market these products.
In addition to these popular products, Liberty Mutual Group offers variable life insurance and annuities. The largest source of new business comes through the 9,000 affinity group relationships that the company has with professional and alumni associations, employers, and credit unions. The affinity program is the insurance industry's most-sponsored voluntary home and auto benefit.
Company Markets
Liberty Mutual Group's Commercial Markets department provides risk transfer and risk and disability management through five business units. First is the National Market, which focuses on the complex needs that large corporations have. The Business Market serves middle-market businesses that wish to work directly with the insurance provider. Both of these units provide creative risk transfer products and full lines of insurance along with excellent claims management and loss prevention services. Large and mid-sized companies can protect their property through Liberty Mutual Property. This unit also provides loss prevention and claims services for its commercial customers. Many businesses also need short- and long-term disability coverage, which can be purchased through Group Market. Group Market also provides group life insurance, FMLA administration, AD&D, and integrated disability management for larger businesses. The final unit of the Commercial Markets division of the company is the Liberty Mutual Alternative Markets, which provides captive services, such as reinsurance, claims management, underwriting, loss prevention, and fronting.
Liberty Mutual also works with several Agency Markets. These are property, casualty, and specialty insurance carriers that sell Liberty Mutual Group's products through independent insurance brokers and agents. Through these companies, residents of most states are able to purchase a comprehensive set of coverages for both personal and business use. In the Gulf Region, America First Insurance is providing these services. Colorado Casualty covers the Mountain Region, with Golden Eagle Insurance providing coverage for the Pacific Region. Those living in the North Central Region can choose Hawkeye-Security Insurance. In the Midwest, GoAmerica Auto Insurance and Indiana Insurance cover customers' needs. Liberty Northwest covers the Pacific Northwest Region, with Montgomery Insurance taking care of the Southeast. Those residing in the Northeast can purchase coverage through Peerless Insurance. Most states not covered by these are covered through the national agency, Wausau Insurance Companies.
Those who are in the market for specialty coverage will need to seek out Liberty Mutual Surety or Summit Holding Southeast, Inc. Liberty Mutual Surety covers commercial and contract surety. Summit Holding Southeast, Inc. covers mono-line worker's compensation.
Beyond these national coverage options, Liberty Mutual Group also has several international markets. Currently, Liberty Mutual Group's products are being offered for personal and small business needs in 11 countries, including Thailand, Venezuela, Spain, Singapore, Argentina, Brazil, China, Chile, Columbia, Hong Kong, and Portugal. Also, Liberty International Underwriters provides specialty lines insurance and reinsurance services globally. Through Liberty International Underwriters, customers can receive specialty casualty, marine, energy, engineering, casualty, and aviation coverage and services. These offices are located in North America, Asia, Australia, and Europe. Liberty Syndicate 4472, with is part of Lloyd's of London, writes for worldwide customers.
Company Values
Since Liberty Mutual Group was founded in 1912 the company has worked to make the world safer and more secure. The company has been responsible for many safety breakthroughs that have reduced workplace injuries, illnesses, and disability for millions of working people. The company's employees are dedicating to following three core values: integrity, dignity and respect, and superior products and services.
All Liberty Mutual Group business is done with integrity. The company realizes that people build their lives on the promises of their insurance products. For this reason, the employees work hard to build and keep trust with the company's customers.
People are treated with dignity and respect when they work with Liberty Mutual Group. This is how the company builds long-lasting relationships with its customers. These relationships are what have grown the business over the last 90 years.
Finally, by offering superior products and services to customers at a fair price, Liberty Mutual Group has gained a superior reputation in the business. Because the company has gained so many customers, it is able to offer these low prices and still make a profit. These services are what have made Liberty Mutual Group stand out from the crowded insurance marketplace.
