Moody's rates Liberty Mutual notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to the senior notes of Liberty Mutual Group, Inc. The notes mature in 2021 and rank equally with existing and future senior debt and are irrevocably and unconditionally guaranteed by Liberty Mutual Holding Co. Inc. and LMHC Massachusetts Holdings Inc.

The outlook is stable.

Proceeds from the notes offering are expected to be used for general corporate purposes, which may include capital contributions to one or more of the company's insurance subsidiaries to support further business growth.

The ratings on Liberty are based on the group's solid market position in both commercial and personal lines insurance as the third-largest property and casualty insurance group in the United States, its significant international presence, breadth of product and distribution platform, and overall strong asset quality and good profitability in recent years, the agency said.

These strengths are tempered by the insurance group's elevated operational and financial leverage versus peers, below-average underwriting margins relative to peers and exposures to losses from natural and man-made catastrophes, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.