Ultimate Parent: Liberty Mutual Holding Company Inc. LIBERTY MUTUAL INSURANCE COMPANY 175 Berkeley Street, Boston, Massachusetts, United States 02117 Web: www.LibertyMutualGroup.com Report Revision Date: 07/26/2012 BEST’S CREDIT RATINGS Best’s Financial Size Category: XV The company’s rating reflects its pooling arrangement with other pool members of the Liberty Mutual Insurance Companies. Tel: 6173579500 AMB#: 002283 Ultimate Parent#: 051114 Fax: 6175745955 NAIC#: 23043 FEIN#: 041543470 Best’s Financial Strength Rating: A Outlook: Stable Best’s Issuer Credit Rating: a Outlook: Stable Powered by A.M. Best’s Global Insurance Database Page 1 of 21
RATING RATIONALE The following text is derived from the report of Liberty Mutual Insurance Companies. Rating Rationale: The ratings apply to Liberty Mutual Insurance Companies’ pool members (Liberty Pool), led by Liberty Mutual Insurance Company, and reinsured domestic affiliates. The ratings are based on the consolidated operating results and financial condition of these domestic companies as well as the Peerless Insurance Companies Pool (PIC Pool), collectively referred to as Liberty Mutual. The ratings reflect Liberty Mutual’s solid capitalization, historically favorable operating performance, dominant market profile and strong brandname recognition, as the group ranked as the fourthlargest insurer in the United States at yearend 2011, based on net premiums written. The ratings further acknowledge the group’s sustainable competitive advantages of its multiple distribution channels, active risk management of its catastrophe exposures and solid product and geographic diversification. Furthermore, Liberty Mutual’s enterprise risk management program has served as a competitive advantage in navigating through the financial, economic, and catastrophic events of the past four years. Management’s strategic objectives remain focused on improving Liberty Mutual’s financial performance through product, geographic and distribution…