Boston-headquartered insurance giant Liberty Mutual said it is realigning its strategic business units.
The company — which reported $139 million profit for its 2012 second-quarter earlier Wednesday — also named executives that will lead each of its four new strategic business units (SBUs).
The changes include: bringing together its regional company and commercial markets group; combining domestic personal lines business; and creating a global specialty unit combining Liberty International Underwriters, Liberty Mutual Reinsurance and Liberty Mutual Surety.
The insurer emphasized, however, that this is not a consolidation or reorganization.
“This change is designed to make it easier for agents and customers to do business with us. It also will allow us to better leverage our scale and expertise by spreading best practices and investments in products, services and innovation across the global enterprise,” Liberty Mutual spokesman John Cusolito told Insurance Journal.
“We are realigning our strategic business units into four new SBUs effective immediately.”
The company has informed its employees about the newly formed business units. Agents were to receive the communication regarding the change from the company on Wednesday, July 25.
The four newly realigned business units — and the top executive for each unit — are as follows:
• Commercial Insurance, which will serve standard lines accounts of all sizes by providing one face to the agent and broker community. This business unit will offer commercial products and services from Liberty Mutual’s commercial markets as well as Liberty Mutual Agency Corp.’s regional companies.
The company said agents and brokers will benefit from continued regional focus and authority enhanced by greater national capabilities and resources.
Liberty Mutual said J. Paul Condrin will lead Commercial Insurance. Prior to his appointment, Condrin was responsible for Liberty Mutual Agency Corp., the company’s business unit that provides commercial and personal insurance through independent agents across the United States.
• Personal Insurance will include all domestic personal lines business. Liberty Mutual and Safeco brands and products will be maintained, and distribution channels will continue to be managed separately. Leading Personal Insurance will be Timothy Sweeney. Prior to his appointment, Sweeney was responsible for Liberty Mutual Personal Markets.
• Global Specialty, which will include all Liberty Mutual Insurance Specialty lines business: Liberty International Underwriters, Liberty Mutual Reinsurance and Liberty Mutual Surety. The company said brokers and clients will continue to do business as they have in the past.
The top executive for Global Specialty will be Christopher Peirce. Prior to his appointment, Peirce was responsible for Liberty Mutual Commercial Markets, the company’s business unit that provided property/casualty, group benefits insurance and reinsurance.
• Liberty International will continue to focus on local country operations in Argentina, Brazil, Chile, China, Colombia, Hong Kong, India, Ireland, Poland, Portugal, Russia, Singapore, Spain, Thailand, Turkey, Venezuela and Vietnam. Luis Bonell will continue to lead Liberty International.