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Liberty Mutual Insurance Reports First Quarter 2017 Results

 

May 4, 2017 - Liberty Mutual Holding Company Inc. and its subsidiaries (collectively "LMHC" or the "Company") today reported net income attributable to LMHC of $351 million for the three months ended March 31, 2017, a decrease of $42 million from the same period in 2016.

"Net income in the first quarter was $351 million, down 11 percent from the prior year as elevated severe wind and hail storm losses more than offset significant improvement in investment results," said David H. Long, Liberty Mutual Insurance Chairman and CEO. "Net written premiums in the quarter increased 5.3 percent but the combined ratio deteriorated 5.2 points to 101.5%."

For more information please contact Investor Relations at (617) 574-6655 or e-mail Investor_relations@libertymutual.com . 


 

Liberty Mutual Insurance Completes Acquisition of Ironshore Inc. from Fosun International Limited

On ​May 1, 2017, Liberty Mutual Insurance announced it had completed its acquisition of 100 percent ownership interest i​n Ironshore Inc., a premier global specialty company, from Fosun International Limited following receipt of regulatory approvals and satisfaction of customary closing conditions. Liberty’s purchase price equates to $2.935 billion and is subject to post-closing adjustments. Liberty Mutual announced a definitive agreement to acquire Ironshore on December 5, 2016.

Barclays Capital Inc. acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP provided legal advice to Liberty Mutual Insurance in the transaction. (see full posting)

Financial Results                              More>>​

 

2017 First Quarter

News & Information                      More>>​
 
Liberty Mutual Insurance Completes Acquisition of Ironshore Inc. from Fosun International Limited
On ​May 1, 2017, Liberty Mutual Insurance announced it had completed its acquisition of 100 percent ownership interest in Ironshore Inc., a premier global specialty company, from Fosun International Limited following receipt of regulatory approvals and satisfaction of customary closing conditions. Liberty’s purchase price equates to $2.935 billion and is subject to post-closing adjustments. Liberty Mutual announced a definitive agreement to acquire Ironshore on December 5, 2016.
 
​Barclays Capital Inc. acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP provided legal advice to Liberty Mutual Insurance in the transaction. (see full posting)
Redesignation of Covered Debt for LMGI’s Series A & B Junior Subordinated Notes
​As described in the press release dated December 19, 2016, and pursuant to the replacement capital covenant dated March 7, 2007 (the “Covenant”), a Redesignation Date (as defined in the Covenant) has occurred. LMGI’s Series A Junior Subordinated Notes (the “Series A Notes”) became the Covered Debt (as defined in the Covenant) for the benefit of the holders of its Series B Junior Subordinated Notes (the “Series B Notes”) for purposes of the Covenant. The Series B Notes became the Covered Debt (as defined in the Covenant) for the benefit of the holders of the Series A Notes for purposes of the Covenant.

 
Notice is provided below pursuant to Section 3(c) of the Covenant. A copy of the Covenant is below and will also be made available on the Investor Screen (as defined in the Covenant) pursuant to the terms and conditions of the Covenant. (RCC Notice to Series A Holder) (RCC Notice to Series B Holder) (Replacement Capital Covenant)
Notice to Holders of LMGI’s Series C Junior Subordinated Notes
​As a result of the repurchase of principal of LMGI’s 10.75% Series C Junior Subordinated Notes, due 2088 (the “Series C Notes”) as described in the press release dated December 19, 2016, and pursuant to the replacement capital covenant dated March 7, 2007 (the “Covenant”), you are hereby notified that a Redesignation Date (as defined in the Covenant) occurred under the Covenant, and the Series C Notes ceased to be the Covered Debt (as defined in the Covenant) for purposes of the Covenant.

 
Notice is provided below pursuant to Section 3(c) of the Covenant. A copy of the Covenant is below and will also be made available on the Investor Screen (as defined in the Covenant) pursuant to the terms and conditions of the Covenant. (RCC Notice to Series C Holder) (​Replacement Capital Covenant)
Liberty Mutual Announces Creation of Limestone Capital Markets Platform
​​December 20, 2016 – Liberty Mutual Insurance today announced the creation of a new "Limestone Capital Markets" platform, with an inaugural multi-year collateralized ‎reinsurance transaction led by the newly-formed Bermuda domiciled segregated account company, Limestone Re Ltd.  The Limestone platform has been capitalized with approximately $160 million of investors' capital and provides an opportunity for investors that includes risks from U.S. property catastrophe, U.S. homeowners and London Market specialty insurance.
 
James Slaughter, Liberty Mutual Senior Vice President and Director, Global Reinsurance Strategy, stated "The creation of the Limestone platform is a key strategic initiative for Liberty Mutual.  This transaction demonstrates investors' interest in both traditional property catastrophe reinsurance risks as well as insurance risks including homeowners, marine and other global specialty insurance lines.  The Limestone platform demonstrates Liberty Mutual's ability to leverage our unique global underwriting and distribution platform as we bring capital markets investors as close as possible to the underlying risks."​  (see press release​)​
Liberty Mutual Group Inc. Discloses Over $108 million in Debt Repurchases
On December 19, 2016, Liberty Mutual Group Inc. ("LMGI") disclosed that from September 30, 2016 through December 19, 2016, LMGI repurchased $108,681,000 in principal of its 10.75% Series C Junior Subordinated Notes, due 2088 ("Series C Notes").  As of December 19, 2016, $67,766,000 in principal of the Series C Notes remained outstanding.

 
As a consequence of such repurchases, a Redesignation Date has occurred under that certain replacement capital covenant dated March 7, 2007 (the "Covenant") by LMGI in favor of and for the benefit of the Covered Debtholders (as defined in the Covenant) for the LMGI's Series A Junior Subordinated Notes (the "Series A Notes") and its Series B Junior Subordinated Notes (the "Series B Notes") issued under that certain indenture dated as of March 7, 2007 among LMGI, the guarantors named therein, and The Bank of New York Trust Company, N.A., as trustee. For purposes of the Covenant as of such Redesignation Date, (i) the Series A Notes are now the Covered Debt (as defined in the Covenant) for the Series B Notes and (ii) the Series B Notes are now the Covered Debt for the Series A Notes.   (see press release)
​​
Liberty Mutual Insurance Announces Acquisition of Ironshore Inc. from Fosun International Limited
December 5th, 2016 - Liberty Mutual Insurance announced today that is has signed a definitive agreement to acquire Ironshore Inc., a premier global specialty lines company, from Fosun International Limited.
 
The transaction is expected to close in the first half of 2017​ pending regulatory approvals and customary closing conditions.  Upon closing, Liberty Mutual will acquire a 100 percent ownership interest in Ironshore.  The purchase price will equate to 1.45x Ironshore's actual tangible book value as of year-end 2016, and is estimated to be approximately $3 billion. The purchase price is subject to closing price adjustments (see full posting). 
Liberty Mutual Group Inc. Issues €750 Million of 2.75% Senior Notes, due 2026
​On May 4th, 2016, Liberty Mutual Group Inc. (“LMGI” or the “Company”) settled an inaugural euro bond issuance of €750 million of 2.75% Senior Notes, due 2026.  The Company was interested in EUR-denominated debt to expand their investor footprint and better match euro exposure in its sizeable European operations.  Proceeds of the offering are expected to be used for general corporate purposes.
Liberty Mutual Announces the Completion of its Acquisition of Penta Security in Chile
​​On January 14, 2016, Liberty Mutual Insurance, one of the largest property and casualty insurers in the world, announced the completion of its acquisition of approximately 99.6% of Compañía de Seguros Generales Penta Security S.A. (Penta Security) in Chile. In 2014, Liberty and Penta Security generated CL $171 billion and CL $226 billion of direct written premiums, respectively. Together with its existing company, Liberty Compañía de Seguros Generales S.A., Liberty Mutual Insurance is now the largest provider of property and casualty insurance in Chile. (see press release)
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
Redesignation of Covered Debt for LMGI’s Series A & B Junior Subordinated Notes
​As described in the press release dated December 19, 2016, and pursuant to the replacement capital covenant dated March 7, 2007 (the “Covenant”), a Redesignation Date (as defined in the Covenant) has occurred. LMGI’s Series A Junior Subordinated Notes (the “Series A Notes”) became the Covered Debt (as defined in the Covenant) for the benefit of the holders of its Series B Junior Subordinated Notes (the “Series B Notes”) for purposes of the Covenant. The Series B Notes became the Covered Debt (as defined in the Covenant) for the benefit of the holders of the Series A Notes for purposes of the Covenant.

 
Notice is provided below pursuant to Section 3(c) of the Covenant. A copy of the Covenant is below and will also be made available on the Investor Screen (as defined in the Covenant) pursuant to the terms and conditions of the Covenant. (RCC Notice to Series A Holder) (RCC Notice to Series B Holder) (Replacement Capital Covenant )
Notice to Holders of LMGI’s Series C Junior Subordinated Notes
​As a result of the repurchase of principal of LMGI’s 10.75% Series C Junior Subordinated Notes, due 2088 (the “Series C Notes”) as described in the press release dated December 19, 2016, and pursuant to the replacement capital covenant dated March 7, 2007 (the “Covenant”), you are hereby notified that a Redesignation Date (as defined in the Covenant) occurred under the Covenant, and the Series C Notes ceased to be the Covered Debt (as defined in the Covenant) for purposes of the Covenant.

 
Notice is provided below pursuant to Section 3(c) of the Covenant. A copy of the Covenant is below and will also be made available on the Investor Screen (as defined in the Covenant) pursuant to the terms and conditions of the Covenant. (RCC Notice to Series C Holder)​ (Replacement Capital Covenant)
Liberty Mutual Group Inc. Discloses Over $108 million in Debt Repurchases
On December 19, 2016, Liberty Mutual Group Inc. ("LMGI") disclosed that from September 30, 2016 through December 19, 2016, LMGI repurchased $108,681,000 in principal of its 10.75% Series C Junior Subordinated Notes, due 2088 ("Series C Notes").  As of December 19, 2016, $67,766,000 in principal of the Series C Notes remained outstanding.

 
As a consequence of such repurchases, a Redesignation Date has occurred under that certain replacement capital covenant dated March 7, 2007 (the "Covenant") by LMGI in favor of and for the benefit of the Covered Debtholders (as defined in the Covenant) for the LMGI's Series A Junior Subordinated Notes (the "Series A Notes") and its Series B Junior Subordinated Notes (the "Series B Notes") issued under that certain indenture dated as of March 7, 2007 among LMGI, the guarantors named therein, and The Bank of New York Trust Company, N.A., as trustee. For purposes of the Covenant as of such Redesignation Date, (i) the Series A Notes are now the Covered Debt (as defined in the Covenant) for the Series B Notes and (ii) the Series B Notes are now the Covered Debt for the Series A Notes. (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).
 
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.
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.
2016 Annual Review
How We Rate

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

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

Contact Us

​​​Investor Contact:
Edward Peña
Director, Investor Relations
Liberty Mutual Insurance
175 Berkeley St. M/S M04D
Boston, MA 02116
(857) 224-6655

Contact Investor Relations

Media Contact:
John Cusolito
VP & Manager, External Relations
Liberty Mutual Insurance
175 Berkeley St. M/S M10D
Boston, MA 02116
(617) 574-5512

Solvency and Financial Condition Report:
Please be advised that the Liberty International European Holdings S.L.U. Solvency and Financial Condition Reports may be requested here​.

​​​Investor Contact:
Edward Peña
Director, Investor Relations
Liberty Mutual Insurance
175 Berkeley St. M/S M04D
Boston, MA 02116
(857) 224-6655

Contact Investor Relations

Media Contact:
John Cusolito
VP & Manager, External Relations
Liberty Mutual Insurance
175 Berkeley St. M/S M10D
Boston, MA 02116
(617) 574-5512

Solvency and Financial Condition Report:
Please be advised that the Liberty International European Holdings S.L.U. Solvency and Financial Condition Reports may be requested here​.

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