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LIBERTY MUTUAL ANNOUNCES 1992 RESULTS

 BOSTON, April 21 /PRNewswire/ -- Officials of the Liberty Mutual Insurance Companies reported today, at its annual meeting, net income of $217 million for 1992 compared to net income of $149 million for 1991.
 Liberty Mutual's net premiums totaled $6.1 billion in 1992, a 5.7 percent decline compared to 1991. Liberty Mutual recorded a net underwriting loss before catastrophe losses and policyholder dividends of $863 million. Catastrophe losses after reinsurance totaled $186 million and dividends declared to policyholders totaled $113 million. In 1992, Liberty Mutual's high-quality investment portfolio contributed net investment income of over $1.1 billion and realized capital gains of $357 million.
 Liberty Mutual's surplus and special reserves increased by 3.2 percent in 1992, bringing its total policyholders' surplus to $2.9 billion.
 In announcing these results, Liberty Mutual Chairman and Chief Executive Officer Gary L. Countryman stated, "The year just passed was one of unusual challenge and opportunity for us. Very little about our financial results or our operations was ordinary in 1992. However, we ended the year stronger than ever financially and well-positioned in each of our strategic businesses to grow and prosper with less business risk."
 The challenges the company faced in 1992 included the successful completion of a major strategic shift in Liberty Mutual's commercial insurance market; meeting service and financial obligations to policyholders efficiently and effectively following the three largest property loss catastrophes in Liberty Mutual's history; and, ending the year with growth in Liberty Mutual's operating earnings and continued improvement in its leverage ratios showing that Liberty Mutual's long-term income diversification strategy is sound and on course.
 Calling the company's commercial insurance strategy "all-weather playing," Liberty Mutual President and Chief Operating Officer Edmund F. Kelly said, "We undertook this strategy to offer an expanded range of workers compensation products and services regardless of the regulatory environment and regardless of the success or failure of the political process of reform.
 "Our capacity for all-weather playing and our extraordinary managed care capabilities are why we remain the largest workers compensation service provider in the country, and why we are going to maintain that market position," Kelly added.
 Regarding the impact of the year's catastrophes, Countryman said, "While from a business perspective we tend to describe catastrophes in financial terms, the real story of a hurricane like Andrew is the loss and suffering of our many policyholder families and businesses. As a company, we should be judged on how well we responded to their service and emotional needs."
 Countryman also noted that Liberty Mutual's 1992 results proved that its long-term income diversification strategy "has moved from a long- term strategic goal to an emerging reality."
 "Our major sources of earnings diversification, along with continued growth in our individual life and group operations, means that we can anticipate less group-wide risk and more stable earnings as we look ahead," he added.
 "We'd also like to take this opportunity to thank our employees for their commitment and support during a time of unprecented change and challenge," Countryman said. "Working effectively together, we remain committed to helping people live safer, more secure lives."
 Liberty Mutual, with assets in excess of $20 billion, is the country's largest workers compensation service provider and one of the largest multi-line writers in the property and casualty industry. The Boston-based company employs 19,000 people in over 450 offices throughout the U.S., Canada and England.
 -0- 4/21/93
 /CONTACT: John Cusolito, 617-574-5512 or Diane Turner, 617-574-5752, both of Liberty Mutual/


CO: Liberty Mutual Insurance Companies ST: Massachusetts IN: INS SU: ERN

CH -- NE015 -- 8742 04/21/93 12:27 EDT
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Date:Apr 21, 1993
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