Forbes Magazine Recognizes Liberty Mutual Insurance as One of America’s Best Employers for Diversity in 2021
Liberty Mutual Insurance has been recognized by Forbes as one of America’s Best Employers For Diversity. Partnering with market research company, Statista, Forbes determined the “Best Employers for Diversity” list through a survey of 50,000 Americans working for businesses with 1,000+ employees. The final list ranks the 500 employers that not only received the most recommendations, but also boast the most diverse boards and executives, as well as the most proactive diversity and inclusion initiatives.
In December 2020, Liberty Mutual announced a multi-year plan to increase diversity, equity, and inclusion so that everyone at the company can grow their careers. This plan includes goals to increase representation of women and people of color at all levels of the company in the U.S. by 2025, as well as ensuring these goals progress over time. Delivering on these goals means that about one-third of all employees will be people of color and over half will be women.
To activate on this plan, the company has an array of programs and initiatives including:
Unconscious bias awareness and inclusion eLearnings to help employees disrupt bias and strengthen inclusion.
Resources, collaboration workshops and speaker series for managers and employees that touch on race and ethnicity in the workplace.
Partnerships with professional associations and nonprofit organizations that are a key source for identifying talent.
Seven Employee Resource Groups (ERGs) that offer a centralized space to bring employees together while fostering an inclusive culture, enhancing personal development and supporting broader business objectives.
“We are honored to receive this recognition from Forbes as it underscores the strong foundation we have built for continued growth in diversity, equity and inclusion,” said Liberty Mutual Executive Vice President and Global Diversity, Equity & Inclusion Officer Dawn Frazier-Bohnert. “Diversity is about all of us and is integrated at in every part of our business, to ensure we can be effective in attracting, advancing and retaining talent of all backgrounds.”
Liberty Mutual Insurance Appoints Garth Pepper to Head North America Middle Market
Garth Pepper has been appointed President, North America Middle Market, Global Risk Solutions (GRS). In this role, he will drive continued profitability and growth of an organization that provides comprehensive solutions for midsize businesses across the U.S. and Canada.
“Garth has demonstrated tremendous vison and leadership heading Liberty Mutual Canada over the past six years, building the operation from a niche player to a major commercial and specialty insurer,” said GRS North America President Tracy Ryan. “Under Garth, our Canadian operation grew significantly, delivered company-leading results, and became a go-to market for Canada’s largest and most respected brokers. I am thrilled to expand his responsibilities across all of North America, where he will leverage his leadership and underwriting expertise and lead a critical component of Liberty’s commercial insurance operations.”
Mid-sized companies – which are vital to the health and strength of the US and Canadian economies – have unique risk management challenges, according to Pepper. “Such companies are growth-oriented and require a range of flexible insurance solutions that can grow with them. We partner with brokers and buyers to identify exposures and the most effective ways to manage and mitigate them through industry-leading underwriting, claims and risk control.”
Prior to taking the helm of Liberty Mutual Canada, Pepper spent most of his career as a specialty casualty underwriter and leader, both in London and in Toronto.
Replacing Pepper as President of Liberty Mutual Canada is Rob Marsh, who joined Liberty Mutual Canada in 2011. Marsh currently leads the Commercial Insurance operation which has more than doubled in size over the past five years.
Liberty Mutual Insurance Appoints Stacie Graham Regional Executive Officer
Liberty Mutual Insurance has appointed Stacie Graham Regional Executive Officer for its South Central region, which includes Arkansas, Louisiana, Oklahoma and Texas.
Based in Dallas, Graham will lead the South Central Field Operations team – which is charged with helping brokers and clients access Liberty Mutual and Ironshore’s full suite of global products, services and capabilities – and drive profitable growth in the region.
“From underwriting and service management to building strong broker relationships, Stacie has the perfect skills to add value to our distribution partners across the region,” said Liberty Mutual Global Risk Solutions North America President, Field Operations & Marketing, Marc Orloff. “She has demonstrated these throughout her 11 years with Liberty Mutual, most recently leading underwriting and service management for our largest risk management brokers and customers in a 15-state area.”
Prior to that, Graham served as Vice President and Division Underwriting Manager for Liberty Mutual’s Middle Market division in the Central region, and she also worked as the Regional Vice President for Business Insurance in Illinois, managing both Middle Market and Small Commercial business. Before joining Liberty Mutual, Graham held several underwriting and sales leadership roles with Fireman’s Fund Insurance and Kemper Insurance companies.
Liberty Mutual Insurance Elects George Serafeim of Harvard Business School to the Company’s Board of Directors
Liberty Mutual Insurance Chairman and Chief Executive Officer David Long announced that George Serafeim, the Charles M. Williams professor of business administration at Harvard Business School and senior partner and co-founder of the global sustainable business consulting firm KKS Advisors, has been elected to the company’s board of directors. Professor Serafeim brings a wealth of experience in accounting, finance and strategic management, and corporate governance and board reporting, as well as a proven track record in developing effective sustainability strategies for companies around the world.
“George Serafeim is a renowned business strategist and academic leader who comes to our board with valuable insights and perspectives,” said Long. “His background and thought leadership will play a pivotal role as we continue our sustainability journey and deliver on our belief that progress happens when people feel secure.”
Professor Serafeim has received a number of awards for his courses in the MBA, executive education and doctoral programs at Harvard Business School and is the faculty chair of the school’s Impact-Weighted Accounts Project, which drives the creation of financial accounts that reflect a company’s financial, social and environmental performance. A co-founder of leading consulting firm KKS Advisors and technology firm RGS, and with deep experience in investment management, he has helped organizations build effective strategies that pave the way to a sustainable society.
“Liberty Mutual’s venerable history is a testament to its resiliency and ability to position the business for long-term success,” said Serafeim. “I look forward to working closely with my fellow board members and the Liberty Mutual management team to continue driving business growth and movement around the company’s sustainability goals.”
Recognized as one of the most influential people in the field of sustainable investing, Professor Serafeim has presented his research in over 60 countries around the world, including to global leaders at events such as the Davos World Economic Forum and the Aspen Ideas Festival. He has written more than 100 articles and business cases, publishing numerous studies in top-tier academic journals, including Strategic Management Journal, Management Science and The Accounting Review, and his work is frequently quoted in media outlets such as The New York Times and The Wall Street Journal. Professor Serafeim has presented his research at more than 300 conferences and also serves as a board member for other companies in the private and non-profit sectors. He earned his doctorate in business administration at Harvard Business School and holds a master’s degree in accounting and finance from the London School of Economics and Political Science.
Liberty Mutual Insurance Dedicates an Additional $2.15 Million in Grants to Local Nonprofit Partners
Liberty Mutual Insurance today announced it is providing an additional $2.15 million in grants to local nonprofit partners as part of the company’s strategic portfolio of community support in response to the coronavirus. These new grants will provide support in three critical areas: food access and distribution; elder housing with a focus on seniors who may be displaced and could be experiencing homelessness; and human services and supplies to nearly 300 immigrant families.
This third phase of giving complements the $15 million in crisis grants Liberty Mutual has already distributed to nonprofit partners impacted by COVID-19 and will help provide relief to those who are unemployed as well as help supplement the social services people rely on that are currently closed or overwhelmed.
The COVID-19 crisis has intensified the existing serious food and housing security issues. And, the pandemic has had a devastating impact on immigrant communities across the country. Liberty Mutual will give to six distinct organizations that are each responding directly to these crises: Boston Area Gleaners (BAG); YMCA of Greater Boston; Project Bread; 2Life Communities; Hearth-Homes; Rogerson Communities; and the Boston Immigrant COVID-19 Community Collaborative.
IDG Insider Pro and Computerworld name Liberty Mutual Insurance to 2020 list of “100 Best Places to Work in IT”
Liberty Mutual Insurance is proud to announce that it’s ranks No. 44 among large organizations on IDG’s Insider Pro and Computerworld’s annual Best Places to Work in IT list. The list, which annually highlights the 100 top organizations that challenge their IT staffs while providing great benefits and compensation, selected Liberty Mutual based on results received from the 2020 Best Places to Work in IT survey.
“This incredible recognition from from Insider Pro and Computerworld reinforces the work we are doing to become a top destination for technology talent,” said Liberty Mutual Insurance Executive Vice President and Chief Information Officer, James McGlennon. “By offering employees exciting career opportunities, and the benefits and flexible work environment they need to be successful in their personal and professional lives, we will continue to build the innovative culture needed to succeed in today’s global marketplace.”
Liberty Mutual’s technology team is focused on delivering immersive and secure experiences for employees, customers, agents, and brokers using cloud-native technology, scalable microservice architecture, and next-wave software delivery methods. The 5,000-person technology organization is a driving source of innovation for the company – combining a start-up mindset, agile methodologies and emerging technologies at every stage to deliver products and services that meet, shape, and anticipate customer needs.
“As technology continues to evolve more rapidly than ever, attracting and retaining top IT talent to research, deploy and maintain that technology has never been more important or more challenging,” said editor of IDG’s Insider Pro, Dan Muse. “Companies that have earned a spot on the Insider Pro and Computerworld 2020 Best Place to Work in IT list share a common denominator: They create an environment that not only rewards workers with competitive compensation and benefits, but they also foster a spirit of diversity, social responsibility, training and innovation.”
Liberty Mutual Insurance Ranks No. 77 on Fortune 500 List
Liberty Mutual Insurance ranks No. 77 on this year’s Fortune 500 Largest U.S. Companies list based on our 2019 financial results. This ranking reflects Liberty Mutual’s 2019 financial results where the strength of our diversified business profile allowed us to navigate challenging market conditions.
In 2019, Liberty Mutual was also recognized by Fortune magazine for a second time as a Best Place to Work for Diversity. We were also named to PEOPLE magazine’s 2019 50 Companies that Care list for our diverse and inclusive workplace and philanthropic dedication to empowering individuals who are experiencing homelessness.
At Liberty Mutual, we believe progress happens when people feel secure and being there for people when they need us most is what we’ve been doing for more than a century.
Liberty Mutual Insurance Announces Estimated First Quarter 2020 Impact from COVID-19
Liberty Mutual Holding Company, Inc., the parent corporation of the Liberty Mutual Insurance group of entities, announced the estimated impact of the COVID-19 pandemic on its first quarter 2020 financial results.
“As we face this unprecedented time, our heartfelt thanks go out to healthcare and other essential workers, and we extend our deepest sympathies to those most impacted by the pandemic,” said Liberty Mutual Chairman and Chief Executive Officer, David Long. “Our top priority as a company has been the health and well-being of our employees, customers, partners and the communities where we live and work. As such, we have mobilized virtually all our employees to work from home, while continuing to provide top-tier service to our customers and have announced premium refund programs for our personal auto and small commercial policyholders to provide some relief in these difficult times.
“While the pandemic is still evolving, from a financial perspective we expect the impact of COVID-19 on our insurance operations to be similar to those we have experienced for a moderately sized catastrophe loss. The areas of our business most exposed to insurance losses related to the pandemic and resulting economic downturn include trade credit, general liability, workers compensation, and event cancellation coverage, among others.
“We anticipate the larger impact from COVID-19 will come through our investment portfolio, where we have taken realized and unrealized losses caused by the recent market downturn. We expect our net investment income will be dampened in the coming quarters as well by lower valuations on our private equity investments, which are reported on a quarter lag and thus not recognized in our first quarter results. Our liquidity position remains excellent, with access to over $6 billion in total, not including current cash on hand of $1.4 billion. We are confident in the strength and resiliency of our operations to allow us to endure these uncertain times and continue to serve our customers.”
Liberty Mutual also announced the following preliminary estimated information for the first quarter of 2020:
– Net written premium of approximately $10 billion: Our first quarter net written premium was not materially impacted by COVID-19, however we do expect COVID-19 and the related economic downturn to dampen net written premium growth in future quarters.
– Combined ratio of approximately 97%: While losses from COVID-19 had a marginal impact on the combined ratio in the quarter, we expect a more meaningful impact in the second and third quarters as the situation evolves and we continue to assess our potential exposure.
– Total equity of approximately $23 billion: This would be down approximately 2% from December 31, 2019. The decline in equity is primarily driven by unrealized investment losses, as a result of the market fallout stemming from COVID-19.
Risks and Uncertainties
The extent to which the coronavirus impacts our future results will depend on developments which are highly uncertain and cannot be predicted, including litigation developments, legislative or regulatory actions and intervention, the length and severity of the coronavirus (including of second waves) and the actions of government actors to contain the coronavirus or treat its impact, among others. Possible effects on our business and operations include:
– disruptions to business operations resulting from working from home or from closures of our corporate or sales offices and the offices of our agents and brokers and quarantines of employees, customers, agents, brokers and suppliers in areas affected by the outbreak;
– disruptions to business operations resulting from travel restrictions and reduced consumer spending on new homes or new automobiles which could reduce demand for insurance;
– increased claims related to general liability, business interruption, workers comp, event cancellation coverage and other insurance; and
– disruption of the financial markets resulting in reductions in the value of our investment portfolio.
A significant rise in the number of COVID-19 infections, infections in a wide range of countries and regions, or a prolongation of the outbreak, could create an adverse economic effect on the Company.
Cautionary Statement Regarding Our Preliminary Estimated Financial Information
Our financial statements as of and for the three months ended March 31, 2020 are not yet complete.
Accordingly, we are presenting preliminary estimates of certain financial information that we expect to report as of and for the three months ended March 31, 2020. We have prepared the preliminary estimates on a materially consistent basis with the financial data we expect to present and in good faith based upon our internal reporting as of and for the three months ended March 31, 2020. These estimates are preliminary and unaudited and are inherently uncertain and subject to change as we complete our financial statements as of and for the three months ended March 31, 2020. Investors should exercise caution in relying on this information and should not draw any inferences from this information regarding financial or operating data not yet provided or available. Important factors that could cause actual results to differ from our preliminary estimates are set forth herein under the headings “Risks and Uncertainties” and “Cautionary Statement Regarding Forward Looking Statements.”
Cautionary Statement Regarding Forward Looking Statements
This report contains forward looking statements that are intended to enhance the reader’s ability to assess the future financial and business performance of Liberty Mutual Holding Company Inc., the parent corporation of the Liberty Mutual Insurance group of entities (the “Company” or “LMHC”). Forward looking statements include, but are not limited to, statements that represent the Company’s beliefs concerning future operations, strategies, financial results investment market fluctuations, or other developments, and contain words and phrases such as “may,” “expects,” “should,” “believes,” “anticipates,” “estimates,” “intends” or similar expressions.
Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the Company’s control or are subject to change, actual results could be materially different. In particular, while we believe our expectations for the impact of COVID-19 on our insurance operations are based on reasonable assumptions, those assumptions are based on our understanding and interpretation of currently available COVID-19 information and expected government action, all of which are subject to change and are beyond our control. See also “Risks and Uncertainties” above for example of factors that can impact our future results.
These are unprecedented times and in this unique instance the Company decided to provide these statements. The Company, however, does not intend and does not undertake any obligation to update or revise these forward-looking statements, which speak only as of today’s date or to obligate itself generally to make any other forward-looking statements in the future.
Liberty Mutual Insurance Commits $15 Million in Crisis Grants to Community Partners
Liberty Mutual Insurance announced $10 million in additional grants to help Boston-based organizations on the front lines of treating those who are ill and stopping the spread of the coronavirus (COVID-19). The support also helps provide food and shelter to the most vulnerable populations that have been impacted by the pandemic, including low-income residents and those experiencing homelessness.
This new funding is the latest initiative in Liberty Mutual’s strategic portfolio of community support in response to the coronavirus, which was launched early March with an initial philanthropic pool of
$4 million for its current 450 nonprofit partners. This original round of grants was designed to help current organizations address a wide range of immediate community needs such as providing students with computers for remote learning, setting up special training for community volunteers and helping fund increased facility cleaning. The company fast-followed that investment with $1 million in support of the Boston Resiliency Fund.
With this latest $10 million pledge, Liberty Mutual has committed a total of $15 million to coronavirus relief efforts to date.
“During this unprecedented time, providing extra help for our longtime nonprofit partners is not only critical in overcoming this pandemic, it is core to our value of being there for people when they need us most,” said Liberty Mutual Insurance Chairman and CEO David Long. “We are grateful for the nonprofit leaders and staff who are so selflessly caring for our most vulnerable populations.”
“COVID-19 is disproportionately impacting communities in greatest need and our nonprofit partners are responding urgently and with extreme care,” said Liberty Mutual Foundation President Melissa MacDonnell. “By offering this portfolio of funding, we are striving to help curtail the current emergency and support our partners as they continue to serve in varied ways.”
The additional $10 million in grants will be distributed to Boston-based nonprofits – the initial distribution of $5 million will include $1 million each to Boston Healthcare for the Homeless Program; Boston Medical Center; Pine Street Inn; and $500,000 each to Friends of Boston’s Homeless; St. Francis House; and Greater Boston Food Bank.
“COVID-19 is presenting such unprecedented challenges for all of us, especially as we strive to care for the most vulnerable among us,” said Boston Health Care for the Homeless Program CEO Barry Bock. “I am so deeply grateful for this incredible support from Liberty Mutual – it is a true game-changer in these difficult times. It will allow us to be on the frontlines during this crisis and meet our tangible needs, and at the same time is providing a tremendous morale boost to our health care teams who are working so bravely and tirelessly to care for people affected by this virus.”
Liberty Mutual’s strategic support of its nonprofit partners in their response to the coronavirus also includes donations to each of the over 800 nonprofits the company partners with during its employee volunteering program; employee online charitable donations that are supported further by company gifts; employee phone outreach to those in the community who are socially isolated; and redeployment of catering teams in the Boston and Dover, New Hampshire offices to prepare 100 lunches per day for homeless individuals in the area.
Liberty Mutual Insurance Board of Directors Appoints Edward Peña as Senior Vice President and Treasurer
The Board of Directors of Liberty Mutual Insurance announced that Edward Peña has been appointed Senior Vice President and Treasurer. Laurance H.S. Yahia, who served as Senior Vice President and Treasurer since 2003, announced his retirement, which is effective April 3, 2020.
“Ed is a proven leader with the expertise, influence and innovative thinking to continue driving impact and opportunity for our company,” said Liberty Mutual Chairman and Chief Executive Officer David Long. “We are grateful for Larry’s tremendous contributions and dedication to Liberty Mutual, and are committed to building upon his momentum.”
Peña joined Liberty Mutual in 2017 as Vice President and Director of Investor Relations and has been responsible for maintaining and developing the company’s rating agency and investor relationships, and for leading capital modeling and competitive analysis. In 2019, Peña assumed the additional responsibilities of managing the company’s debt and liquidity strategy.
Prior to Liberty Mutual, Peña worked at ProSight Specialty Insurance, where he was Vice President of Finance and led capital and financial planning, mergers and acquisitions, and treasury. He also held roles at J.P. Morgan where he advised investment bank financial institution clients on mergers and acquisitions, and capital structuring, and within Corporate Treasury where he worked on financial and regulatory reporting. Peña has a Master of Business Administration from the Tuck School of Business at Dartmouth College, and an undergraduate degree in Economics and History from Yale University.
Yahia joined Liberty Mutual in 1984 and held roles of increasing responsibility in Legal, Mergers & Acquisitions, Investor Relations and Treasury Services over his 35-year career at the company. Under his leadership, Yahia led key mergers, acquisitions, divestitures and debt transactions throughout his career, and his work was critical to the company’s transformation from a domestic workers compensation and auto insurer to a global top five multi-line property and casualty company.