A.M. Best Will Continue to Monitor Liberty Mutual's Financial Performance After Partnership Announcement with OneBeacon.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 6, 2001 On September September: see month. 5, 2001, Liberty Mutual Insurance Companies, Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. , Mass., announced it would be entering into a book rollover A graphic element in an application or on a Web page that changes its color or shape when the pointer is moved (rolled) over it. See JavaScript rollover. See also n-key rollover. transaction with OneBeacon, Boston, Mass., whereby Liberty Mutual would take over the independent agency business of OneBeacon, excluding New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , New Jersey and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . The target date for this transaction coincides with November 1 renewals and includes small commercial and personal lines agency business estimated to be $1.5 billion in available premiums. As part of this transaction, there will be no assumption of insurance liabilities incurred prior to the transaction date. In the upcoming weeks, A.M. Best will review this transaction as part of its annual rating process and continue to monitor Liberty Mutual's overall financial performance. Over the past twelve months, management has implemented several initiatives aimed at improving profitability to levels more in line with their "Superior" A.M. Best Rating. The rollover of the OneBeacon book will improve Liberty Mutual's spread of risk and complete the infrastructure for its regional agency markets, but will require similar profit improvement. A.M. Best will continue to evaluate Liberty Mutual's capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. to ensure it is maintained at its historically strong levels. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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