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Global Specialty

Momentum Through Scale and Expertise

Liberty Mutual Insurance Group's Global Specialty Strategic Business Unit (SBU) is composed of three top-tier specialty lines insurance and reinsurance businesses that focus on delivering market-leading performance in 17 countries worldwide:

  • Liberty International Underwriters, a global specialty commercial lines insurance and reinsurance business, writes a variety of specialty products including casualty, marine, construction, energy, inland marine, directors and officers, fidelity, trade credit, professional liability, accident and health, aviation, property, surety and crisis management insurance through 40 offices in Asia, Australia, Europe, the Middle East, North America and South America. Liberty Syndicate 4472 at Lloyd's of London writes on a worldwide basis.
  • Liberty Mutual Surety, including Liberty SuretyFirst, provides domestic U.S. contract and commercial surety and fidelity bonds.
  • Liberty Mutual Reinsurance is the dedicated U.S. assumed reinsurance operation of Liberty Mutual Insurance Group.

Businesses in 17 Countries

Global Top-Tier Specialty Lines

In 2013, A&H started selling business in the U.S.

Despite challenging market conditions, Global Specialty achieved solid financial performance and continued to expand its highly successful global specialty lines insurance and reinsurance business. Although 2013 was generally benign from a U.S. catastrophe point of view, there were significant losses from floods in Canada and Central Europe, Tropical Cyclone Oswald in Australia and severe hailstorms in Germany.

To provide brokers and clients with easier access to an extensive global specialty product offering, Liberty Specialty Markets was created in mid-2013 by integrating Liberty Syndicates, Liberty Mutual Insurance Europe and Liberty Mutual Reinsurance. Operating as one organization — with a combined gross written premium of nearly $3.5 billion — that sells a broad range of specialty and commercial insurance and reinsurance products, Liberty Specialty Markets leverages scale, talent and best practices to provide higher value to brokers and clients.

Global Specialty is building out new and existing products and markets, including its Global Accident & Health (A&H) business that began in 2012. In the U.S., the A&H team has been completing the regulatory approval process for Group Accident and Blanket products — targeting new markets such as amateur sports, schools and business travel — and is developing filings for the Affinity marketplace for individual accident, individual critical illness and other supplemental coverages.

With its pending acquisition of Primero Fianzas — the fifth-largest Mexican surety company, specializing in administrative and credit bonds — Global Specialty provides a platform for Liberty Mutual's entrance into Mexico, a growing and profitable insurance market.

In 2013, Global Specialty continuously improved its analytic capabilities and tools to better inform business decisions — a formidable task considering the complex, variable and unique risks of the specialty lines businesses. The structure and maturity of the business provided the opportunity to align methodologies across the business by identifying best practices and increasing consistency. The SBU began developing a pricing risk management framework and predictive modeling tools to refine underwriting decision-making and began using key performance indicators from the claims system to support improved claims handling.

To further strengthen collaboration across Global Specialty, Liberty Specialty Markets in London and Liberty International Underwriters in New York both secured new office space, which will bring employees together over the coming year and support the SBU's future growth plans.

“In 2014, Global Specialty will focus on client needs and enhancing profit and return on capital by making optimal use of expertise and resources across the organization, as well as ensuring local best-in-class execution,” said Global Specialty President Christopher L. Peirce.

Launching Accident & Health

Filling a gap in Liberty's product portfolio, Global Specialty's Accident & Health business promises impressive growth across the company.

Accident & Health (A&H) insurance is an entirely voluntary purchase, whether the buyer is a business or an individual, so industry professionals must create the demand as well as manufacture the supply. To enter this innovative market, Global Specialty built a team that has developed an A&H infrastructure unlike those of other carriers in the market.

After an accident or illness, people often face unforeseen financial, physical and psychological consequences. Although existing medical insurance or liability will meet part of the expense, many need additional support.

“Our job is to think about the unexpected,” explained Jeff Herman, who leads the A&H group. “We bring that creativity to the workplace every day.”

Core A&H insurance supplements existing insurance with products that provide fixed indemnities and other benefits for targeted communities such as business travelers or youth sports participants. Liberty Mutual A&H's holistic product model makes it stand apart in the market and reflect the culture of responsibility at Liberty Mutual.

“We differentiate ourselves by providing superior after-claim services — from financial management training to counseling — which ensure the emotional well-being of our clients and their families after an accident,” Herman explained.

Liberty's A&H business also distinguishes itself through leading-edge risk mitigation services, such as accident prevention programs, webinars and educational tools, for customers to benefit from even before an accident or illness occurs.

A traditionally stable and profitable line of business, A&H fills gaps in Liberty Mutual's product portfolio and offers business partners a product that solves their specific risk needs. Liberty Mutual's brand reputation and depth and breadth of distribution channels position A&H for growth around the world.

“The addition of A&H to the product mix will be an important driver of continued growth in underwriting profitability and revenue,” Herman said. “Liberty Mutual's direct marketing activity also represents significant opportunity because direct marketers thirst for new products. The fact that we can offer affinity channels new products to complement automobile and homeowners insurance opens up large portions of the market.”

In 2013, A&H and IT developed a state-of-the-art policy administration system and created a responsive website to serve as a content hub for all A&H products, with the broker and end customer in mind.

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