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 5, 2001, Liberty Mutual Insurance Companies, Boston, Mass., announced it would be entering into a book rollover transaction with OneBeacon, Boston, Mass., whereby Liberty Mutual would take over the independent agency business of OneBeacon, excluding New England, New Jersey and New York.

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 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.