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About Safeco Corporation

Through its operating subsidiaries, Liberty Mutual is one of the top property/casualty insurers in the US and among the top 10 providers of automobile insurance. The company also offers homeowners insurance, workers' compensation, general liability, surety, commercial multi-peril, and other lines for individuals, families, and small to large companies. Liberty Mutual operates through two business divisions: Global Retail Markets and Global Risk Solutions. It distributes its products through a blend of independent agents, and brokers globally.

Operations

The company conducts its business through two segments: Global Retail Markets and Global Risk Solutions.

The Global Retail Markets segment, which accounts for over 65% of sales, is organized into the following four market segments: US, West, East, and Reinsurance. Reinsurance consists of certain internal reinsurance programs.

The Global Risk Solutions segment, accounting for approximately 30% of sales, includes the National Insurance, North America Specialty, Liberty Specialty Markets, and Global Surety divisions. Offerings include commercial auto, liability, property, workers' compensation, specialty and surety. The Liberty Specialty Markets unit provides aviation, cyber, construction, energy, marine, and other policy lines.

Corporate and other includes certain discontinued operations, cessions related to retroactive reinsurance agreements, reserve changes on other casualty and property lines of business, and fees and other revenues from certain wholly owned non-insurance subsidiaries such as Liberty Energy, Liberty Metals and Mining, and Liberty Mutual Agriculture and Timber. It produces almost 5% of sales.

Overall, Insurance premiums account for about 90% of the company's total revenue.

Geographic Reach

Liberty Mutual, based in Boston, Massachusetts, has offices in almost 30 countries around the globe.

The company's Global Retail Markets segment is divided into four units including three geographic markets: US, West and East. US market provides personal line that includes automobile, homeowners and other types of property and casualty insurance for individual clients residing in the US. Its business line serves commercial customers in the US. Nations served in the East region include Thailand, Singapore, Hong Kong, Vietnam, Malaysia, India, China, and Russia. The West region includes Brazil, Colombia, Chile, Ecuador, Ireland, Portugal, and Spain.

Sales and Marketing

Liberty Mutual distributes its products through approximately 1,880 licensed employee sales representatives, roughly 840 telesales counselors, third-party producers, independent agents, online, and through affinity group sponsorships.

Financial Performance

Revenues for the twelve months ended December 31, 2019 were $43.2 billion, an increase of $1.7 billion over the same period in 2018. The major components of revenues are net premium earned, net investment income, net realized gains, and fee and other revenues.

Net income attributable to LMHC for the twelve months ended December 31, 2019 was $1 billion, a decrease of $1.1 billion from the same period in 2018.

Cash and cash equivalents as of December 31, 2019 were $5.0 billion, a decrease of $497 million or 9% from December 31, 2018. The decrease primarily reflects a decrease in cash from investing and financing activities.

Strategy

The company's investment strategy seeks long-term returns through disciplined security selection, portfolio diversity and an integrated approach to risk management. The company selects and monitors investments to balance the goals of safety, stability, liquidity, growth and after-tax total return with its need to comply with regulatory investment requirements. A relatively safe and stable income stream is achieved by maintaining a broadly-based portfolio of investment grade bonds.

As part of its overall capital strategy, the company previously announced that it may issue, repurchase or exchange debt depending on market conditions. Debt repurchases may be executed through open market or other appropriate transactions. The company continues to evaluate market conditions and may periodically affect transactions in its debt, subject to applicable limitations.

Mergers and Acquisitions

In late 2019, Liberty Mutual acquired the global surety and credit reinsurance operations of New York- based AmTrust Financial Services, which specializes in coverage for small to midsized companies, as part of its goal to become a top 3 global commercial insurer and reinsurer. The transaction included the purchase of AmTrust Surety, the US surety unit of AmTrust, and three European businesses -- Nationale Borg, Nationale Borg Reinsurance, and AmTrust Insurance Spain. Terms of the transactions were not disclosed.

Company Background

Liberty Mutual was founded in Boston in 1912 as the Massachusetts Employees Insurance Association to fill a growing need for workers' compensation insurance coverage. The mutual insurer's name was changed to Liberty Mutual Insurance in 1917, and it entered the auto insurance market in 1918.

In the 1960s and 1970s Liberty Mutual expanded its line to include life insurance (1963), group pensions (1970), and IRAs (1975). It expanded internationally by establishing operations in the UK in 1973.

In 2001 and 2002 the company reorganized into a mutual holding company structure with three principal operating companies (Liberty Mutual Insurance, Liberty Mutual Fire Insurance, and Employers Insurance Company of Wausau) and Liberty Mutual Holding Company as the parent.

Acquisitions have included United Mutual Fire Insurance Company (1942), Golden Eagle Insurance (1997), Citystate Holdings (Singapore, 1999), Ohio Casualty (2007), and Safeco (2008). In 2017 Liberty Mutual acquired specialty insurer Ironshore for $3 billion. 

Safeco Corporation

1001 4th Ave Ste 800
Seattle, WA 98185-9083
Phone: 1 (206) 545-5000

Firm Stats

Employer Type: Privately Owned
Executive Vice President For Branch Administration: Greg Davenport
V Pres Gen Counsel: Donald J Deshaw
Manager Of Infrastructure And Operations: Bri Rial
Employees (This Location): 1,400
Employees (All Locations): 7,208

Major Office Locations

Seattle, WA