Massachusetts Approves Liberty Mutual Reorganization Involving 3 Domestic Mutuals

Liberty Mutual has received approval to convert three domestic mutual insurance affiliates into stock companies and then merge them into a new wholly-owned subsidiary of Liberty Mutual Holding Company (LMHC).

The Massachusetts Division of Insurance has approved the reorganizations of Montgomery Mutual Insurance Co., Liberty Mutual Mid-Atlantic Insurance Co. and Patrons Mutual Insurance Co. of Connecticut.

The move is another in a series of streamlining actions taken by the Boston-headquartered insurer in recent years to improve the profitability and efficiency of its operations.

Insurance Commissioner Michael T. Caljouw signed off on the reorganization plan on January 15, 2026, affirming testimony that the reorganization will benefit the three insurers and their members as well as the holding company.

According to testimony by Ed Kenealy, executive vice president and deputy general counsel for Liberty Mutual Group, Inc., the members of each of the three companies — that is, their policyholders— will automatically become members of LMHC on equal terms with all other LMHC members. All of their insurance policies will remain in force and unchanged.

Also each of the companies intends to keep the word “Mutual” in its name. Kenealy noted that this is consistent with the continued use of the term by Liberty Mutual Insurance Co. and Liberty Mutual Fire Insurance Co. that the state insurance commissioner allowed in 2002. He maintained as well that it is accurate because the policyholders of each company will retain the benefits of mutuality.

Kenealy identified the expected benefits of the reorganizations. “Becoming members of the LMHC will allow them to operate on an enhanced size and scale, to diversify risk, including greater geographic diversity, enhanced access to capital, greater efficiency from the perspectives of both corporate governance and capital management, and enhanced ability to preserve mutuality,” he testified.

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The reorganizations will “not in any way” reduce policyholders’ benefits and rights under their current policies. Also, because LMHC must always own 51% of each company’s shares, the policyholders will retain ultimate voting control over each company and they will acquire all the rights and benefits associated with membership in LMHC, according to the holding company.

A working group appointed by the commissioner agreed that the transactions are expected to provide the policyholders with greater flexibility while maintaining mutuality, improve their access to capital or other financing, their ability to pursue growth and to increase competitiveness through enhanced efficiency.

Series of Actions

This reorganization is one of several actions Liberty Mutual has taken since 2023 to improve its operations.

In August 2023, Liberty Mutual announced a reorganization that created a new U.S. Retail Markets (USRM) segment, carved out of what used to be the Global Retail Markets. Retail markets includes personal lines and small commercial insurance, but GRM was discontinued following planned divestments of that business in Latin America and Western Europe.

At the same time, Asia Retail Markets was put into the Global Risk Solutions (GRS) segment, which houses larger commercial, specialty and reinsurance businesses.

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In 2024, the company restructured its global commercial and specialty insurance lines, creating Liberty International Insurance to improve efficiency across Asia Pacific, Europe, and Latin America.

Liberty Mutual has sold some operations in foreign countries to focus on markets with higher long-term profitability. Liberty Mutual agreed to sell its Latin American retail markets business to Talanx and European retail markets business to Generali. In March 2025, Chubb Ltd. agreed to acquire Liberty Mutual’s businesses in Thailand and Vietnam (LMG Insurance Public Co.).

Liberty Mutual to Sunset Safeco Brand in 2026

Last year the company announced plans to consolidate all personal lines products under the Liberty Mutual brand beginning in 2026. As part of the transition, the company will retire the Safeco Insurance brand, which has served as its independent agent channel since Liberty Mutual acquired Safeco in 2008.