To better serve its long-term strategic markets, Liberty Mutual Insurance has announced major organizational changes and new executive leadership roles. As a result of the reorganization, some 370 jobs in the United States will be eliminated.
The following appointments and reorganizations are effective as of August 1:
The company has launched a new division, called US Retail Markets (USRM), to increase its emphasis on personal and small business insurance lines in the United States. Hamid Mirza, president, USRM, will oversee the division that is responsible for roughly $30 billion in net written premiums in 2022, making it the largest multi-line small commercial insurer and the sixth-largest personal vehicle insurer in the United States. After serving as president of GRM US, Mirza will now report to Sweeney.
A spokeswoman from Liberty Mutual Insurance wrote in an email, “As a result of this change, approximately 370 positions have been eliminated across all functions, many of which are effective by the end of September.” This is less than 1% of the company’s global workforce. Each affected worker has been offered severance and outplacement services, as well as urged to seek for other opportunities within the company.
The spokesman noted that the divestitures of the Latin American and Western European divisions of Global Retail Markets (GRM) necessitated the creation of the new USRM business unit.
Liberty Mutual’s Asia Retail Markets segment will become a part of Global Risk Solutions (GRS), the company’s commercial and specialty insurance arm. Through this integration, the company’s various lines of business in Asia (including personal, commercial, specialty, and reinsurance) may work together under a single strategy and take advantage of economies of scale. Liberty Specialty Markets’ foreign insurance operations will be managed by Phil Hobbs, the company’s president and managing director. President, Asia Retail Markets Defne Turkes will continue to report to Hobbs. Neeti Bhalla Johnson, the president of GRS, is still Hobbs’ immediate superior.
The GRM division’s remaining non-US operations in Asia will now report to the GRS division alongside the rest of the company’s commercial and specialist operations in the region.
The newly formed enterprise function of Enterprise Transformation and Solutions is responsible for leading the company’s efforts to improve costs and increase operational excellence, provide solutions that unlock scale advantage, and improve the company’s collective data and data science capabilities so that they can generate better, faster, more differentiated insights and actions. Jim MacPhee, recently promoted to chief operating officer at Liberty Mutual, will oversee the department. MacPhee will continue to work under Sweeney as he did when he was president of GRM.
Liberty Mutual’s personal lines and small commercial insurance business in Madrid, Liberty Seguros S.A., was sold to Generali for €2.3 billion ($2.5 billion) in June as part of the company’s efforts to refocus on its “core businesses.” All of Liberty Seguros’ businesses in Ireland, Northern Ireland, Portugal, and Spain are a part of this sale. The deal did not include Liberty Mutual’s other European operations; these include Liberty Specialty Markets, Liberty Mutual Reinsurance, Liberty Mutual Surety, Liberty IT, and Hughes Insurance.
For a total of about €1.38 billion (roughly US$1.48 billion), Liberty Mutual Insurance announced in May that it will sell some operations in Brazil, Chile, Colombia, and Ecuador to the Talanx Group.
In the reorganization announcement released on July 13, Tim Sweeney, president and chief executive officer of Liberty Mutual Insurance, said, “As we continue to operate in a world of profound and accelerating change, we remain committed to keeping our promises and delivering exceptional value to our customers, agents, brokers, and partners.” Investment in new, innovative capabilities, along with the ongoing optimization of our product line and global reach, will guarantee the company’s long-term success.