Liberty Mutual Notes Executive, Operational Changes

June 22, 2005

Liberty Mutual Group announced that Roger Jean, 57, president of its Regional Agency Markets operations and an executive vice president with the company, will retire in early 2006. Liberty Mutual's Regional Agency Markets (RAM) is a national organization of regional property and casualty companies that concentrate on small- to mid-sized commercial and personal lines markets. The RAM companies distribute their products and services through independent agents and brokers.

In anticipation of Jean's departure and to more effectively serve third party distributors, Liberty Mutual will create a new strategic business unit effective July 5, 2005. Gary Gregg, 49, presently Liberty Mutual Group's executive vice president and manager of Commercial Markets, will become president of the newly formed Liberty Mutual Agency Markets business unit, which will include Wausau Insurance, Liberty Mutual Surety and Regional Agency Markets.

Regional companies that are part of RAM are America First Insurance, Colorado Casualty, Golden Eagle Insurance, Hawkeye-Security Insurance, Indiana Insurance, Liberty Northwest, Montgomery Insurance, Peerless Insurance and Summit Holding Southeast, Inc.

Wausau and Liberty Mutual Surety are members of the Liberty Mutual Group and rely on intermediaries to distribute their products. Liberty Mutual has four strategic business units: Personal Market, Commercial Markets, International and now, Agency Markets.

Liberty Mutual created RAM in June 1999 when it acquired the U.S. operations of Guardian Royal Exchange plc (U.K.). The company appointed Jean, an executive with GRE, RAM's president.

Gregg has held a number of executive positions within Liberty Mutual's commercial insurance operations since joining the company in 1989 from KPMG, the international accounting firm, where he was a partner.