Massachusetts Approves Liberty Mutual Reorganization Involving 3 Domestic Mutuals

Liberty Mutual to convert three domestic mutual insurance affiliates into stock companies and merge them into a new wholly-owned subsidiary.

Published on Feb. 4, 2026

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The Massachusetts Division of Insurance has approved Liberty Mutual's plan to convert three domestic mutual insurance affiliates - Montgomery Mutual Insurance Co., Liberty Mutual Mid-Atlantic Insurance Co. and Patrons Mutual Insurance Co. of Connecticut - into stock companies and then merge them into a new wholly-owned subsidiary of Liberty Mutual Holding Company (LMHC). This is part of a series of streamlining actions taken by the Boston-headquartered insurer in recent years to improve operations.

Why it matters

This reorganization is another step in Liberty Mutual's ongoing efforts to streamline its operations and improve efficiency. By converting the three domestic mutual insurers into stock companies and merging them into a new subsidiary, Liberty Mutual aims to benefit from enhanced size, scale, risk diversification, access to capital, and improved corporate governance and capital management.

The details

Under the approved plan, the members (policyholders) of the three mutual insurance companies will automatically become members of LMHC on equal terms with all other LMHC members. All existing insurance policies will remain in force and unchanged. The companies will also retain the 'Mutual' name, reflecting the continued mutuality benefits for policyholders. The reorganization is expected to provide the policyholders with greater flexibility while maintaining mutuality, improved access to capital, and increased competitiveness through enhanced efficiency.

  • On January 15, 2026, the Massachusetts Insurance Commissioner approved the reorganization plan.
  • In August 2023, Liberty Mutual announced a reorganization that created a new U.S. Retail Markets segment.
  • In 2024, the company restructured its global commercial and specialty insurance lines, creating Liberty International Insurance.

The players

Liberty Mutual Holding Company (LMHC)

The parent company of Liberty Mutual, which will own the new wholly-owned subsidiary formed from the merger of the three domestic mutual insurance affiliates.

Montgomery Mutual Insurance Co.

One of the three domestic mutual insurance affiliates that will be converted into a stock company and merged into the new Liberty Mutual subsidiary.

Liberty Mutual Mid-Atlantic Insurance Co.

One of the three domestic mutual insurance affiliates that will be converted into a stock company and merged into the new Liberty Mutual subsidiary.

Patrons Mutual Insurance Co. of Connecticut

One of the three domestic mutual insurance affiliates that will be converted into a stock company and merged into the new Liberty Mutual subsidiary.

Michael T. Caljouw

The Massachusetts Insurance Commissioner who approved the reorganization plan.

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What they’re saying

“Becoming members of the LMHC will allow them to operate on an enhanced size and scale, to diversify risk, including greater geographic diversity, enhanced access to capital, greater efficiency from the perspectives of both corporate governance and capital management, and enhanced ability to preserve mutuality.”

— Ed Kenealy, Executive Vice President and Deputy General Counsel, Liberty Mutual Group, Inc. (claimsjournal.com)

“The reorganizations will 'not in any way' reduce policyholders' benefits and rights under their current policies. Also, because LMHC must always own 51% of each company's shares, the policyholders will retain ultimate voting control over each company and they will acquire all the rights and benefits associated with membership in LMHC.”

— Ed Kenealy, Executive Vice President and Deputy General Counsel, Liberty Mutual Group, Inc. (claimsjournal.com)

What’s next

The reorganization plan is expected to be fully implemented in the coming months, with the three domestic mutual insurance affiliates being converted into stock companies and then merged into the new Liberty Mutual subsidiary.

The takeaway

This reorganization is part of Liberty Mutual's broader efforts to streamline its operations and improve efficiency, which have included other recent actions such as restructuring its global commercial and specialty insurance lines. The move aims to benefit policyholders through enhanced size, scale, risk diversification, and access to capital, while maintaining the mutuality structure.