The History Of Liberty Mutual Insurance
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Liberty Mutual is the fourth largest property/casualty insurance company in the United States. It ranks 57th on the Fortune 100 list of largest corporations. The company has assets worth $197 billion, annual revenue of $32 billion, and over 50,000 employees in 40 countries worldwide. Liberty Mutual was founded in 1912 when a group of Boston insurance agents consolidated their companies to form one large insurance agency. During the first half of the 20th century, Liberty Mutual continued to grow by acquiring other insurance agencies and expanding into new territories. By 1968, Liberty Mutual had become the third-largest property/casualty insurer in the United States with subsidiaries throughout Europe and Latin America. In 1993, it was hit with a $2.6 billion jury verdict in favor of a plaintiff who had been injured due to a faulty ignition switch installed on a 1981 Ford Pinto model car.
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After the verdict, Liberty Mutual was forced to file for bankruptcy protection and adjust its policies so that it would have enough cash to pay on future claims. In 1998, Liberty Mutual exited bankruptcy and launched a successful buyout of its assets from its creditors. In 2000, Liberty Mutual became the first insurance company in the world to be rated AAA by Standard & Poor’s, the highest possible rating.
The following year, it won a $2.75 billion judgment against Zurich Insurance for improperly canceling the plaintiff’s life insurance policy. The bulk of Liberty Mutual’s business consists of general liability, automobile liability, workers’ compensation, and property/casualty coverage for individuals and businesses.
2017 was a record year for Liberty Mutual’s financial earnings with $3.7 billion in revenue. The company had $1.4 billion in net income and $1.8 billion in operating income.
CONCLUSION: Liberty mutual is a provider of insurance, and has been around for over 100 years.
