Wausau to Leave Nationwide, Join Liberty Mutual

Liberty Mutual Group and Employers Insurance of Wausau today announced that Wausau and its subsidiary companies will join the Liberty Mutual family of companies. The new relationship with Liberty Mutual ends a thirteen-year affiliation Employers Insurance of Wausau had with Nationwide Insurance Enterprise.

The agreement, which requires regulatory review and approval, is expected to be completed by year-end. The companies did not release financial terms of the agreement.

``Having Wausau join Liberty Mutual adds one of the industry's most respected brand names to our family of companies. They immediately enhance our strategy to remain the leading provider of workers compensation and related services as well as help grow our commercial insurance franchise,'' said Ted Kelly, Liberty Mutual president and chief executive officer.

``This announcement is a tremendous development for business owners who seek a commercial insurance partnership that will help them ensure employee health and safety while controlling costs,'' said Kelly. ``Our companies offer an exceptional range of distinctive products and services that can respond to customers' workers compensation and commercial insurance needs.''

Kelly emphasized that Wausau, which will operate independently in the commercial insurance and risk management marketplace, will remain headquartered in Wausau, Wis. ``The close and important relationship between the company and the city of Wausau will continue,'' said Kelly. ``Liberty Mutual values Wausau's 5,300 dedicated employees and is committed to maintaining the company's prominent position as an employer in the communities in which it does business.''

``Wausau and Liberty are a very good fit because we're in the same insurance business and our products, services and distribution systems will complement each other,'' said Dwight Davis, Wausau president and COO. ``We're very excited because Liberty has made a commitment to continue the Wausau brand and help us grow our business in the marketplace.''

Dimon R. McFerson, Nationwide's chairman and chief executive officer, said the transfer of Wausau is part of a strategic initiative designed to focus on the growth of Nationwide's core businesses. As part of the plan, Nationwide in 1996 sold its West Coast Life Insurance Company and recently sold Nationwide Communications Inc., which owns a series of radio stations throughout the country. And last week, the company completed a merger with Allied Mutual Insurance Co. and the purchase of Allied Group Inc. and Allied Life. ``What we will miss most of all, when this transfer is complete, are the dear friends we have made in the wonderful community of Wausau,'' said McFerson.