Posted on 04 Feb 09
Liberty Mutual Group has announced that it is selling off some renewal business to brokers and will deliver commercial insurance products for midsize business exclusively through independent agents and brokers.
In response, The PIA of Connecticut, New Hampshire, New Jersey and New York State Inc. said they applauded Liberty Mutual’s support of the independent agency system.
Liberty said it was selling middle market direct sale renewal business to Arthur J. Gallagher, Hub International and USI Holdings Corp., as well as retiring its Wausau brand and creating a new commercial business unit, Liberty Mutual Middle Market, to work with independent agents.
Previously, Liberty Mutual transacted its middle market business using appointed agents and brokers under Wausau Insurance Company. The company also sold direct to clients through its “Business Markets” unit. Both distribution entities were in the package that was sold.
No sale price was announced by Liberty, but Gallagher said its part of the deal could eventually total $164 million.
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