The Liberty International Strategic Business Unit (SBU) consists of local insurance companies that sell property, casualty, health and life insurance products to individuals and businesses in 18 countries. Liberty International is structured in four operating regions:
- Latin America and Iberia, including Venezuela, Brazil, Colombia, Chile, Ecuador, Spain and Portugal;
- Emerging Europe, including Turkey, Poland, Ireland and the United Kingdom;
- Asia Pacific, including Thailand, Singapore, Hong Kong, Vietnam and Malaysia; and
- Large Emerging Markets, including Russia, China and India.
Realigned into this configuration in 2014, the regions are organized as much by business characteristics as by geography. They are supported by global resources, including a Strategy group and two Centers of Excellence focused on Pricing & Analytics and Claims. Overall, the realignment better positions the organization for continued growth and improved profitability in an increasingly competitive global marketplace.
Other accomplishments in 2014 included the acquisition of Uni.Asia General Insurance Berhad in Malaysia and the extension of its Liberty Insurance (Ireland) business through the acquisition of Hughes Insurance in Northern Ireland.
We are acutely focused on the most critical actions that will produce results — placing our resources where they count most, making our mature operations even stronger, and supporting our newer operations in achieving profitability.— Liberty International President Luis Bonell
Liberty Insurance (Hong Kong) saw the opportunity to adapt and improve its Medical insurance product some years ago. Under the direction of Stella Fok, senior vice president, Life & Medical, the company improved the combined ratio and profitability of that book of business, which grew at 28 percent in 2014 — achieving a combined ratio of 90 percent — and now accounts for 70 percent of revenue.
But that turnaround was just the start. By gaining the trust of brokers and staying attuned to evolving medical trends, the operation has become a market leader. Fok cites the E-MediTop product, which provides additional protection beyond employer or government offerings, as key to the business line’s success because it was a product that brokers had requested and that filled a gap in the market.
Liberty Insurance (Hong Kong) has exported this strategy to other Liberty operations in the Asia-Pacific region. The 2006 greenfield operation in Vietnam got a kick start by taking on existing medical policies sold to Hong Kong expatriates there. Throughout 2014, Fok guided Thailand’s Medical initiative, while also giving guidance to Singapore and the newly acquired Malaysia operation, offering insights and strategies to develop their own medical products.
Local Innovation, Regional Impact
Regional and global collaboration with local markets improves performance and inspires innovations that lead to wider impact. In 2013 and 2014, Seguros Caracas de Liberty Mutual (Venezuela) coordinated with the Latin America regional office to improve Roadside Assistance (RA) service levels, which had dropped while being managed by an external firm — affecting service and image.
Seguros Caracas brought management of the RA service in-house in late 2014, relying on key staff to guide the process with regional insights and local management to hone the plan with market knowledge — a model for collaborative work. Despite the current difficult conditions of operating in Venezuela, Seguros Caracas is expanding its products and services and keeping high levels of service and satisfaction to its customer base.
Going forward, this strategy and expertise could be leveraged in other Liberty International operations — a local innovation with regional impact.
Malaysia acquisition expanded Asia-Pacific presence
Seguros Caracas de Liberty Mutual is the leading P&C insurer in Venezuela
Hong Kong’s E-MediTop product provides up to HK$1.2M in annual coverage
Integrity, Dignity + Respect
Our Principles: We behave with integrity. We treat people with dignity and respect.
A Message from Our Chairman, President and CEO
2014 was a very good year for Liberty Mutual Insurance Group. We achieved strong financial results; improved underwriting profitability; increased our net income by five percent to $1.83 billion; grew net written premium selectively by three percent, to $36.3 billion; and decreased our combined ratio more than two points, to 97.5 percent.
We strengthened our balance sheet through capital-related transactions and disciplined operational execution, and, consequently, Standard & Poor’s upgraded our rating from “A-” to “A.” In addition, we advanced our ranking in the Fortune 100 by five positions, to 76.
Our Principle: We deliver an exceptional customer experience.
A Customer-Centric Culture
Personal Insurance has had great success with profitably growing — currently at a pace that’s more than twice the industry — and gaining market share, in large part because of its deep commitment to anticipating and meeting customer needs. By consistently putting the customer experience at the core of everything it does, the business unit is building a strong foundation and market leadership position for the years ahead.
Delivering the Best Possible Experience
Helping customers is a two-way street for Commercial Insurance, which interacts with its customers by soliciting their feedback and then acting on what they say. Whether through technology, forums or employee training, incorporating the voice of its customers is key to delivering the best possible experience.
Our Principle: We continuously improve and innovate.
Innovation Across the Globe
Innovative product development is critical to Global Specialty’s success in a highly competitive global market. To that end, Global Specialty is breaking new ground in the agriculture industry by developing market-leading reinsurance products for farmers and through its involvement in the African Risk Capacity, a consortium of insurance carriers that uses early-warning drought models to predict food insecurity response costs.
Our Principle: We attract, develop and engage talent.
Promises and People
At Liberty Mutual Insurance Group, we are in the business of promises — to protect people and the things they build, own and cherish. It is our people who fuel those promises. To deliver on our culture of continuous improvement and steadfast integrity, we foster an environment of support, empowerment and collaboration that enables our employees to succeed both inside and outside of work.
Our Principle: We execute thoroughly and seek excellence.
Over 15 years, Liberty International has grown from a collection of small local companies into a $6 billion, multinational organization with operations in 18 countries. Its success in this short time has come, in part, from local ownership and knowledge — teams that track the nuances of their markets and move quickly to bring about change. By seeking excellence in its strategy and everyday activities, Liberty International will achieve continued growth in an increasingly competitive global marketplace.