Protecting Promises. Compounding Value.
This inaugural annual report marks a milestone for Liberty Mutual Investments (LMI). It offers a look at what we achieved in 2025, how we are building toward our future, and how LMI is helping Liberty Mutual Group (Liberty), our customers, and all our stakeholders achieve their potential.
Our Purpose
LMI is the core of Liberty's capital engine. At LMI, we transform insurance premiums into investable capital—earning economic returns that strengthen Liberty’s balance sheet, expand underwriting capacity, and ensure Liberty can deliver on its promises to policyholders.
We invest across public and private markets, partnering with world-class firms and deploying capital directly. Through our investment activity, we build enduring businesses side-by-side with our partners, drive economic growth, create jobs, and help entrepreneurs scale their companies. LMI’s objective is consistent: generate durable, risk-adjusted returns while preserving the financial foundation that underpins everything Liberty does.
2025 in Review
2025 was a defining year. LMI delivered approximately $5.2 billion in pre-tax investment income5 —among the strongest results in our history.
The financial outcome matters, but what stands out is how our people performed as activity, complexity, and expectations all rose. We launched a new operating model, meticulously built over three years, that brought clearer mandates, stronger governance, and tighter alignment with enterprise priorities. At the same time, we faced record deal volume. Expanding direct-investment activity. A volatile market and geopolitical environment. Our people rose to it.
We also moved aggressively on artificial intelligence (AI). through collaborations with Anthropic and OpenAI, LMI achieved adoption rates that lead the industry: over 90% of the team is using AI tools.12 The goal is simple: give our investors better tools to focus on their craft, while removing drudgery and repetitive work.
Global Liquid Markets (GLM), acting as long-term asset owners, pairs the scale of a global insurer with a disciplined, risk-aware investment approach to safeguard policyholder commitments, enable firmwide priorities, and pursue attractive, asymmetric returns. The team dynamically deploys capital while preserving balance sheet flexibility, advancing GLM’s evolution into a scaled, multi-asset investment platform. Through a rigorous end-to-end investment lifecycle and strong governance, GLM supports Liberty’s financial strength by delivering durable, risk-adjusted returns across market cycles.
Global Alternative Markets (GAM) committed $8.1 billion across 181 transactions—up 50% year-over-year.4 Direct investments represented 76% of activity,4 reflecting our continued shift toward opportunities where we invest into and alongside companies rather than solely through external managers.
Global Credit Markets (GCM) executed 52 direct transactions4 across lending and capital solutions, growing its portfolio from $8.6 billion to $13.4 billion.4 These investments provide financing to companies across sectors—healthcare, technology, business services—often in partnership with leading private equity sponsors.
We also welcomed 68 new team members, including more than 20 investors.3 We were named a Best Place to Work in Money Management for the third consecutive year,7 a recognition that reflects our commitment to building a firm where talented people choose to build careers.
The Advantage of Mutuality
Our mutuality allows us to prioritize policyholder interests. We do not face the tension many financial institutions confront of choosing between the interests of shareholders and the interests of customers. That alignment allows us to take a longer view and remain a consistent market participant through cycles when others pull back.
This permanence makes LMI a valuable partner. We added 77 new investment relationships in 20254 with firms that seek us out because we commit meaningful capital, move decisively, and follow through. That reputation—earned through how we show up, year after year—extends Liberty's reach into markets and opportunities that would otherwise be inaccessible.
Looking Ahead
We are not in the business of predicting the future, but we are in the business of being prepared for all its eventualities.
The environment ahead is uncertain. Growth is robust but volatile. In this setting, we continue to focus on long-duration opportunities where our patient capital, flexible structures, and ability to invest across the full capital stack create a durable advantage.
Several secular forces, including advances in AI, are expanding the opportunity set across public and private markets. In some cases, this demand manifests in infrastructure investments such as data centers, power generation, and semiconductors. These opportunities are compelling when they match our strengths: patient capital, flexible structures, and the ability to deploy across the full capital stack.
We enter 2026 with strong momentum and a clear line of sight toward our long-term financial objectives. The years ahead are expected to mark meaningful progress, reflecting disciplined execution and the cumulative impact of decisions already underway. We’ll continue to deliberately evolve the portfolio toward our target mix, with growth credit and growth equity representing an increasing share as we expand our direct-investing capabilities and deepen partnerships across private markets.
At the same time, we continue to strengthen our integrated investment platform by reinforcing the foundations that enable long-term execution and sustainable growth.
Institutional Ambition. Noble Purpose. Shared Humility.
LMI deploys capital that powers the real economy—financing businesses, infrastructure, and growth—while generating the returns that strengthen Liberty's financial position and secure its promises to policyholders.
Thank you to the LMI team for an exceptional year and to our colleagues across Liberty whose work makes ours possible.
Vlad Barbalat
President and Chief Investment Officer
Liberty Mutual Investments