Liberty Insurance Company Limited (LICL), a wholly owned subsidiary of Liberty Mutual Insurance Company and part of the Liberty Mutual Group, was granted approval by the China Insurance Regulatory Commission (CIRC) on May 27, 2011 to increase its registered capital by $17.5 million.
This capital increase, LICL’s fourth since 2007, was granted in response to the company’s rapid expansion and the corresponding need for more capital to meet China’s regulatory solvency requirement.
"Our strategy of investing in local country operations and pursuing the right opportunities when they appear has made Liberty Mutual one of the top foreign insurers in China," said Liberty Mutual Group President David H. Long. "We thank CIRC for its confidence in our business strategy. China is an important component of our international operations and this latest capital infusion will fuel our ongoing growth."
At present, Liberty has three branches in China: Chongqing in Southwestern China, Beijing in Northern China, and Zhejiang in Eastern China. In March 2011, LICL received CIRC’s approval to establish a fourth branch located in Southern China’s Guangdong Province. As of December 31, 2010, LICL has 72,000 auto policyholders in the markets where it has already operated and ranks 4th among 18 foreign P&C insurance companies operating in China.
Liberty Mutual in China
Liberty Mutual has had a presence in China since 1996 when it opened a Representative Office in Shanghai. In January 2004, the company received approval to open its first insurance office in Chongqing, positioning Liberty Mutual as the first foreign property and casualty insurer with a presence in western China. In September 2007, Liberty Mutual received approval to have its Chongqing operation converted to a wholly owned subsidiary, which was named Liberty Insurance Company Limited. LICL is the only Fortune 500 company subsidiary headquartered in Chongqing.