LMG Presentation to International Insurance Society

1 Liberty Mutual’s Current Business Mix 2005 WC Other Commercial Lines Personal Lines Source: Net Written Premium; 2005 Liberty Mutual MD&A; Personal Lines includes Personal Auto and Home

Property and Casualty Insurance Top 10 U.S. Writers DWP ($ millions) 1State Farm $48,762 2American International Group35,138 4Allstate27,320 5St. Paul Travelers21,495 Liberty Mutual Group16,558 7Nationwide15,251 8Progressive14,298 9 Hartford Financial Services12, Market Share 10.2% 7.3% 5.7% 4.5% 3.5% 3.2% 3.0% 2.6% National Indemnity13,4882.8% 3Zurich Farmers27,3325.7% Personal Lines Companies Source: OneSource

3 Progressive vs. S&P Insurance Index 5-Year Stock Price Performance Source: CNBC.com S&P Insurance Index Progressive

4 Personal Auto Premium Trend Source: OneSource; 2000 and 2005 Direct Written Premium

5 Progressive vs. Industry Combined Ratio Trend P&C Auto Progressive Source: OneSource

6 Monoline Insurance Company 5-Year Stock Price Performance Source: CNBC.com Commerce Group S&P Insurance Index Mercury General Progressive Infinity Property & Casualty

7 Personal Lines Premium (% of P&C Industry Premium) 2005 DWP, $ Billions Personal Lines$221 Other Lines258 Industry Total$479 Source: OneSource; 2005 Direct Written Premium. Personal Lines includes the following: Personal Auto and Home

Top 10 Property Writers Source: OneSource; 2005 Direct Written Premium. Property includes the following: Fire, Allied, Inland Marine and Boiler & Machinery DWP ($ millions) 1 $2,941 2 American International Group 2,726 4 Ace American Ins Co 1,467 5 Zurich Ins Co Group 1,252 Hartford Fire Group 1,134 7 Continental Casualty Group Assurant Group Liberty Mutual Group Market Share 9.6% 8.9% 4.8% 4.1% 3.7% 3.0% 2.6% 2.3% 2.2% 3St Paul Travelers Companies2,1797.1% FM Global 48.1% Chubb

9 Property Lines Premium (% of P&C Industry Premium) Property Lines % of P&C Industry DWP of Leading Property Lines Companies 2005 DWP, $ Billions Property Lines$31 Other Lines448 Industry Total$479 Source: OneSource; 2005 Direct Written Premium. Property includes the following: Fire, Allied, Inland Marine and Boiler & Machinery

10 Personal Auto Premium Trend Source: OneSource; 2000 and 2005 Direct Written Premium

11 Personal Lines Premium Trend Auto Home 4.4% 8.7% CAGR Source: OneSource

12 Personal Lines Rate Increase Trend Source: Insurance Information Institute

13 Top Ten Personal Auto Insurers 1984, 1994, 2004 Source: CSFB 2005 Property-Casualty Insurance Primers; Rankings are based on Personal Auto DWP for each of the years shown

14 Personal Auto Combined Ratio Trend Source: OneSource and Personal Market Finance for LMG

15 P&C Insurance Advertising Expense Trend Source: is based on CSFB Property-Casualty Industry Primer 2005; 2005 numbers are based on growth rate of the following: GEICO 40%, State Farm 27%, Allstate 13%, Progressive 2%

16 Industry Personal Auto Combined Ratio Trend Source: OneSource

17 Insurance Carriers Who Withdrew from Personal Auto Source: CSFB Property Casualty Insurance Primers Royal & Sun Continental Foremost USF&G St. Paul W.R. Berkley Allied General Accident Commercial Union Guide One Prudential Cigna CNA Reliance Kemper General Electric

18 Liberty Mutual’s Business Mix 1985, 1995, WC Other Commercial Lines Personal Lines Source: Net Written Premium; 1985 Liberty Mutual Annual Report, OneSource, 2005 Liberty Mutual MD&A; Personal Lines includes Personal Auto and Home