LIBERTY MUTUAL INSURANCE GROUP – Overview

“Helping people live safer, more secure lives” since 1912, Boston-based Liberty Mutual Group (www.libertymutual.com) is a leading global multi-line group of insurance companies whose largest line of business is personal auto, based on 2003 net written premium.

As of December 31, 2005, Liberty Mutual Group had $78.8 billion in consolidated assets and $21.2 billion in consolidated revenue.  Liberty Mutual ranks 102^nd on the Fortune 500 list of largest U.S. corporations, and is the eighth-largest personal lines writer and fifth-largest commercial lines writer in the U.S., based on 2004 direct written premium.  Liberty Mutual Group today employs nearly 39,000 people in nearly 900 offices throughout the world.

The company has received financial strength ratings of "Excellent" (A) from the A.M. Best Company, "Good" (A2) from Moody's Investors Service and “Strong” (A) from Standard & Poor's.

Liberty Mutual Group operates under a mutual holding company structure, owned by its policyholders.  The three principal mutual companies of the group, Liberty Mutual Insurance Company, Liberty Mutual Fire Insurance Company and Employers Insurance Company of Wausau, each are stock insurance companies under the ownership of Liberty Mutual Holding Company, Inc. 

Liberty is a world leader in occupational safety and health. In 1954, Liberty founded the Liberty Mutual Institute for Safety, which is completely funded and operated by the group. This Institute has researched and published valuable contributions to the understanding of work-related risks and hazards – pioneering many solutions to safety problems. It is famous for the first practical application of the automobile safety belt and the invention of the prosthetic device called the “Boston Elbow”.

LIBERTY MUTUAL INSURANCE GROUP - in China

Since Liberty Mutual entered China in 1996, Liberty has been dedicating to promoting the Sino-US relationship.  Developing China market has been the key strategy of Liberty, and Liberty is willing to transfer its technology and expertise to promote the China economic development.  Liberty has set up long-term close relationship with government organizations, like the State Administration of Work Safety and China Insurance Regulatory Commission, and made great achievement.

I.                    CEO Visit to China

Following the former President Gary Countryman’s visit to China in 1997, the current Chairman, President and Chief Executive Officer, Dr. Edmund Kelly came to China in 2000, 2001, 2004 and 2005, meeting with the relevant government officials.

II.                  Liberty’s support to West China Development policy of Chinese Government

One of the key strategies of Liberty in China is to develop West China.  Therefore, Liberty has established long-term close relationship with Chongqing Municipal Government and relevant departments.  Liberty established its first China-based Insurance Representative Office (IRO) in Chongqing in February 1998. Liberty was the first foreign insurer to do so.  In November 2000, Liberty submitted its application for a China Insurance License.  In October 2002, Liberty received permission to establish an insurance branch in China, and established its Chongqing Branch in November 2003, becoming the first foreign P&C insurer in West China.

In 2001, Liberty assisted Chongqing municipal government in obtaining the fund of USD450,000 from US Trade Department for a feasibility study in waste water treatment project in Chongqing.

In July 2004, Dr. Edmund Kelly will be granted the title of “Economic Advisor” to Chongqing Municipal Government.

III.                Occupational Safety & Health

Liberty established a Safety Representative Office (SRO) in Shanghai in 1996, and opened two SafeWork Centers for research and training in China at the Fudan University School of Public Health (former Shanghai Medical University School of Public Health) and Chongqing University in 2000, and a third Safe Work Program at Tsinghua University in October 2002.

Liberty has co-organized with the State Administration of Work Safety to hold the seven China SafeWork Forums in Chongqing (1999, 2003), Beijing (2000, 2002, 2004, 2005), and Shanghai (2001).  Liberty is also the only American company in collaboration with the State Administration of Work Safety to organize the three China International Forums on Work Safety in 2002, 2004, 2006.

IV.                Investment in China

Liberty has established Liberty Pacific Direct Investments Ltd. to make direct investments focused on West China. In 2000, Liberty Mutual was the only American company to make a strategic investment in the IPO of PetroChina (US$57 million).  Also 2000, Liberty Mutual in partnership with New World launched New World Liberty China Ventures Ltd. Together with a major contributor, Asian Development Bank, Liberty made investments to China, especially West China, small and medium sized private enterprises.

V.                  Promoting the Sino-US relationship

For many years, Liberty has been actively promoting the development of Sino-US relationship, not only supporting China’s accession into World Trade Organization, but receiving senior Chinese governmental delegations in US for many times.  Especially in December 2003, Liberty honored Premier Wen Jiabao, during his trade tour to US, at a luncheon in Boston. 

VI.                Research Cooperation

In 2000, Liberty signed the Memorandum of Understanding with the former Bureau of Work Safety, State Economic and Trade Commission, to carry out a comprehensive research on accidents and its solutions in China work place.  In the same year, Liberty signed agreement with the China Disabled Person’s Federation on a study project on work injury insurance.

In July, 2002, Liberty Group Chairman, President and Chief Executive Officer, Dr. Edmund Kelly met with Premier Wen Jiabao. During the meeting, Premier Wen hoped that Liberty could help China to improve work place safety with its experience and expertise in Workers’ Compensation Insurance. Consequently, Liberty launched China Workers’ Compensation Project, carrying out comparative studies of Workers’ Compensation Systems in five countries: Argentina, Australia, Germany, Japan and U.S.A..

VII.              Liberty CQ Branch

In July 1998, Liberty CQ Representative Office was founded.

In November 2002, Liberty established its Chongqing Branch and in December 2003, Liberty CQ Branch started business operation.

Liberty aims to be a quality insurance provider. To provide excellent customer service is our key objective. We understand that to pay claims quickly and fairly is our prime duty. Liberty CQ has utilized its resources, both from overseas and within the country, to develop our systems, products and services. Currently, Liberty CQ writes all types of Property, Casaulty (including Workers’ Compensation and Personal Accident), Motor and Cargo insurance. By June 2006, Liberty CQ’s premium revenue reached RMB13 million.