FM Global Selling Property Unit to Liberty Mutual

FM Global Corporate Headquarters and Liberty Mutual have struck a deal in which Liberty will buy ALM Services, a subsidiary of FM Global. ALM was formed in 1997 by Arkwright Mutual Insurance Company to manage a property insurance portfolio of Liberty Mutual. This past summer, Arkwright merged with Allendale Insurance and Protection Mutual Insurance to become FM Global.

The ALM operations will join Liberty Mutual's Specialty Risks business unit, which also underwrites and services commercial property insurance under the Liberty Mutual and Wausau brand names. Liberty Mutual has named its combined property operations LMG Property.

"ALM helps strengthen our position in commercial property risk management and insurance services," said Gary R. Gregg, Liberty Mutual executive vice president and manager of commercial insurance operations. "With Liberty Mutual, ALM and Wausau, LMG Property is combining three exceptional operations to deliver essential property underwriting, claims and loss prevention engineering services to all segments of the commercial marketplace."

FM Global Executive Vice President Ruud Bosman said, "We believe this transaction is in the best interests of FM Global's customers and is consistent with our strategic focus. It is a logical step for FM Global and Liberty Mutual since both companies are very different now than when ALM was first formed."

The transaction is expected to be completed by month's end. Liberty Mutual, which expects to complete its acquisition of ALM by the end of November, did not release financial terms of the agreement.

Liberty Mutual says commercial property buyers can access tailored coverage and services from LMG Property either through a broker or directly from a Liberty Mutual representative.

Roy Mahlstedt, who previously led ALM, will direct the operations of LMG Property, the company said.