LMI Annual Report

A Message from Vlad

Vlad Barbalat President and Chief Investment Officer, Liberty Mutual Investments

This inaugural annual report marks a milestone for Liberty Mutual Investments (LMI). It offers a look at what we achieved in 2025, how we’re building toward our future, and how LMI is helping Liberty Mutual Group (Liberty), our customers and all our stakeholders achieve their potential.

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Overview

Over the last five years, LMI has generated $18.8 billion in pre-tax investment income for Liberty.5 These strong results are attributable to strategic asset allocation and a focus on diversification.

Financial Results

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Investments

Our portfolio strategy reflects Liberty Mutual’s evolution into an integrated insurance and capital solutions partner with global reach. We take a disciplined, long-term approach to capital allocation—balancing return, risk, and liquidity—across both public and private markets. Our strategy is grounded in a deep understanding of Liberty’s insurance obligations and financial profile, ensuring that invested assets grow in step with our long-term commitments to policyholders and other stakeholders.

Charting Liberty’s Investment Path

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Global alternative AUM continues to see growth ($T)

Private Equity and Alternatives

2003

2013

2023

2033Estimate

$2T

$9T

$25T

$59T

ET&I

Credit

Our Energy & Infrastructure mandate comes to life through investments like Fervo Energy, a next-generation geothermal energy company based in Houston, Texas. In 2025, LMI participated in its third funding round for Fervo, supporting the company’s Series E raise, after initially learning about the company from a trusted partner within our network. As demand for carbon-free energy grows, LMI’s investment in Fervo reflects our focus on scalable, cost-competitive clean energy solutions and the power of our network to source new opportunities that can produce long-term partnerships.

Fervo Energy

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By developing a deep understanding of Liberty Mutual Group’s overall risk profile, LMI can effectively align portfolio risks with the company’s broader risk tolerance and goals.

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Risk Management and Compliance

Operational Excellence

Operational excellence is the foundation that allows LMI to deliver performance with precision and scale. Behind every investment decision is an integrated operating platform, supported by Global Investment Solutions (GIS) and LMI Technology. Together, they ensure that Liberty's capital moves efficiently, transparently, and with control.

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Our commitment to talent goes beyond being best-in-class; it’s about cultivating the environment where excellence, purpose, and long-term value intersect.

Our Edge is Our People

Talent and Culture

A group of three employees sites on a bench talking. A young woman with glasses sits on the right, furthest from the camera, a young man with a blue sweater sits in the middle and another man sits to the left, closer to the camera and slightly out of focus.

A Message From Vlad

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Overview

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Investments

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Risk Management and Compliance

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Talent and Culture

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Operational Excellence

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Capital as a Force for Good

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Liberty Mutual Investments (LMI) is the investment firm for Liberty Mutual Group (Liberty) and is responsible for powering Liberty’s strategy amid profound change in global capital markets. With deep expertise in liquid, credit, and alternative strategies, LMI invests $124.7 billion1 of capital globally, taking a long-term approach across its integrated platform. LMI has a clear purpose: build enduring businesses side-by-side with our partners, drive economic growth, and generate superior risk-adjusted returns that power Liberty’s strategy and secure its promises.

Who We Are

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Through our investments, we aim to build enduring businesses, drive economic growth, and generate superior risk-adjusted returns for our business in service of our policyholders. In these ways and more, we use Liberty’s Capital as a Force for Good. We take an outcome-focused approach to driving meaningful impact through our investments. We do this by leaning into dynamic and rapidly evolving sectors and by engaging early with world-class partners.

Capital as a Force for Good

Conclusion

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A photo of Vlad Barbalat. He has dark hair with streaks of grey is wearing a dark blue jacket and white shirt. He is smiling.

1. Balance sheet projection

2. Investmentmandates

3. Constraints

4. Private assets planning

5. Stress testing

Long-term Asset Allocation Deliver durable and robust risk-adjusted returns

Projecting LMI invested assets and Liberty’s capital growth

Manage within portfolio constraints under market stress, M&A, reduced UW (underwriting) profitability

Public and private mandates, risk, capital, return objectives

Solvency through LMI Risk Envelope, Statutory and Investment Management Agreement limits, income risk

Multi-year commitment strategy & investment plan

$124.7B Assets under management 1

40+ Years of private market investment partnership 2

300+ Employees with 140 Investment professionals 3

4Specialized Investment Business Units

$5.2Bin pre-tax investment income generated for Liberty in 2025 5

3 Years Recognized as a Best Place to Work in Money Management

Top 10Largest U.S. and Global P&C insurer 9

40K Employees operating in over 25 countries 3

Fortune 100

$178B of total assets 11

The Power of Liberty Mutual

LMI at a Glance

Among America’s largest companies 10

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The New Jersey Performing Arts Center (NJPAC) in Newark, New Jersey is one of the largest performing arts centers in the U.S. NJPAC sought investment partners to redevelop their 12-acre campus. LMI participated as both an Aspire tax credit investor and a limited partner. With LMI’s support, NJPAC broke ground on a $336 million redevelopment of its campus that will bring hundreds of new residences, shops, restaurants, outdoor gathering spaces and an education and community center to Newark.

New Jersey Performing Arts Center

Feature:

Liberty Mutual Investments Annual Report 2025

Building Value Together

369 Investment partners 4

68 New team members welcomed in 2025 3

Guided by our three cultural pillars, we create the conditions for our people to excel

Our progress this year underscores the collective power of our people, our partners, and our platform. Looking ahead, we remain focused on deepening our partnerships, expanding our capabilities, and operating with the agility and discipline that today’s markets demand. With our capital base stronger than ever and our people leading with conviction, LMI is well-positioned to navigate change, embrace innovation, and continue delivering outcomes that matter—for Liberty, for our policyholders, and for the broader economy.

Conclusion

Uncompromising Excellence: As the steward of Liberty’s capital, we never compromise in our pursuit of excellence. Uncompromising Excellence in how we think, execute, and lead.Intellectual Vitality: We’re committed to meritocracy, fostering opportunities for everyone to contribute and thrive. Intellectual Vitality in how we challenge, debate, and learn.Capital as a Force for Good: We use our influence, capital, and energy to drive a better future. Capital as a Force for Good in the opportunities we capitalize, the standards we uphold, and the people we develop.

LMI at a Glance

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Employees with

140Investment professionals3

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