Liberty Mutual Policyholders Approve Mutual Holding Company Plan

Liberty Mutual Group announced that policyholders of Liberty Mutual Insurance Company and Liberty Mutual Fire Insurance Company have overwhelmingly approved the company’s mutual holding company plan during special meetings for members of both companies.

One of the requirements for the plan to become effective is approval by at least two-thirds of the policyholders who voted. Eighty-eight percent of policyholders of Liberty Mutual Insurance Company who cast ballots voted to approve the conversion of the company to a mutual holding company, and 89 percent of Liberty Mutual Fire Insurance Company policyholders which cast ballots voted favorably on that company’s reorganization.

Liberty Mutual also announced that the Wisconsin Office of the Commissioner of Insurance approved the application of Employers Insurance of Wausau, a member of the Liberty Mutual Group, to form a mutual holding company. Wausau’s policyholders will meet Nov. 20, at which time the company will announce the results of its policyholder voting.

The announcements follow a public hearing held Oct. 10 and 11, by the Massachusetts Division of Insurance, at which the division staff recommended that the state’s Insurance Commissioner approve Liberty Mutual’s mutual holding company plan. Pending approval from the Massachusetts Commissioner, Liberty Mutual anticipates completing its mutual holding company plan and related transactions in the first quarter of 2002.