Early history Liberty Mutual was founded in 1912 as the
Massachusetts Employees Insurance Association (MEIA), following the passage of a 1911 Massachusetts law requiring employers to protect their employees with
workers’ compensation insurance. The company was founded as a mutual company, a structure in which an insurance company is owned by its policyholders. The first branch office was opened in 1914, and later that year, the company wrote its first
automobile insurance policy. The name was changed in 1917 to the Liberty Mutual Insurance Company and, through partnerships, the company began offering full-coverage auto policies.
Structural changes In 1964, Liberty Mutual Insurance Company began offering life insurance through its Liberty Life Assurance Branch. In 2002, the company converted into its current
mutual holding company structure, which would allow it to offer company's shares while remaining a mutual company. The conversion was controversial, as some
policyholders believed the change would dilute their interest in the overall company, reduce their voting control, and limit their dividends. A
lawsuit was filed, alleging that information provided to policyholders was misleading. Liberty Mutual settled the lawsuit in December 2001, which required additional disclosure and limited certain compensation to company officers and directors. Despite these concerns, the plan was approved by voting policyholders around November 2001. Leveraging the greater flexibility of the mutual holding company structure, Liberty Mutual transformed from a single-line, highly regional insurer to one of the world's leading property and casualty insurance companies.
Growth and acquisitions Liberty Mutual's growth has been both organic and through
acquisition. Early acquisitions were small, but Liberty Mutual has made several large acquisitions over the past decade, including the high-profile acquisition of
Safeco Corporation in 2008. Liberty Mutual agreed to acquire all outstanding shares of Safeco for $68.25 per share, for a total transaction price of approximately $6.2 billion. The result of this activity was an increase in revenue from $6 billion to over $30 billion in twelve years. In 1999, the company purchased Wausau Insurance Cos. Liberty Mutual created a 2006
television commercial depicting people doing good for others, reporting that the "overwhelming" positive response led to its decision to create the website
The Responsibility Project. Liberty Mutual is the sole
corporate sponsor of the long-running
PBS documentary series
American Experience. In 2011, as part of the company's "Real America" campaign, the company introduced two new commercials featuring
Sacagawea and
Paul Revere. In 2011, the company began constructing the
Liberty Mutual Tower, a 22-story
skyscraper as part of a headquarters expansion project. The building received its
certificate of occupancy in June 2013. In May 2017, Liberty Mutual Insurance completed its acquisition of
Bermuda-based Ironshore Inc. from Fosun International Limited for $2.93 billion. In October 2019, Liberty Mutual acquired Nationale Borg, Nationale Borg Reinsurance and AmTrust Insurance Spain, which are credit and surety reinsurance subsidiaries of
AmTrust Financial Services. In July 2021, Liberty agreed to acquire
State Auto Group for over $2 billion. In August 2022, Liberty acquired AmGeneral Insurance Berhad, a Malaysia insurance company. == Organizational structure ==